PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 4061

(2) by inserting after paragraph (6) the following new para-
graph (7):

(7)(A) Each report pursuant to this subsection shall include
a report on major money laundering countries. This report shall
specify—

"(i) which countries are major money laundering countries;
"(ii) which countries identified pursuant to clause (i) have
financial institutions engaging in currency transactions involv-
ing international narcotics trafficking proceeds that include
significant amounts of United States currency or currency
derived from illegal drug sales in the United States or that
otherwise significantly affect the United States;

"(iii) which countries identified pursuant to clause (ii) have
not reached agreement with the United States authorities on
a mechanism for exchanging adequate records in connection
with narcotics investigations and proceedings;

"(iv) which countries identified pursuant to clause (iii)—
"(I) are negotiating in good faith with the United States
to establish such a record-exchange mechanism, or

"(II) have adopted laws or regulations that ensure the
availability to appropriate United States Government
personnel and those of other governments of adequate
records in connection with narcotics investigations and
proceedings; and
(v) which countries identified pursuant to clause (i)—

"(I) have ratified the United Nations Convention
Against Illicit Traffic in Narcotic Drugs and Psychotropic
Substances and are taking steps .to implement that Conven-
tion and other applicable agreements and conventions such
as the recommendations of the Financial Action Task Force,
the policy directive of the European Community, the legis-
lative guidelines of the Organization of American States,
and other similar declarations, and

"(II) have entered into bilateral agreements for the
exchange of information on money-laundering with coun-
tries other than the United States,

"(B) In addition, for each major money laundering country,
the report shall include findings on the country's adoption of law
and regulations considered essential to prevent narcotics-related
money laundering. Such findings shall include whether a country
has—

"(i) criminalized narcotics money laundering;
"(ii) required banks and other financial institutions to know
and record the identity of customers engaging in significant
transactions, including the recording of large currency trans-
actions at thresholds appropriate to that country's economic
situation;

"(iii) required banks and other financial institutions to
maintain, for an adequate time, records necessary to reconstruct
significant transactions through financial institutions in order
to be able to respond quickly to information requests from
appropriate government authorities in narcotics-related money
laundering cases;

"(iv) required or allowed financial institutions to report
suspicious transactions;

"(v) established systems for identifying, tracing, freezing,
seizing, and forfeiting narcotics-related assets;