The bill seeks to create a Federal offense against money laundering, a frequent corrollary of profitable illegal enterprises such as drug trafficking. Under the proposed act, specific transactions used to launder funds from illegal activities are directly proscribed and the procedures for forfeiture of profits earned by launderers are set forth. In addition, the bill encourages financial institutions to provide information about laundering without fear of civil liability and sets forth standards for balancing privacy interests with investigative needs. The bill is favored by both the U.S. Departments of Justice and Treasury: the penalty, forfeiture, and seizure provisions of the bill should not result in costs to Federal, State, or local governments. In consequence, the Committee on the Judiciary reports favorably on the bill and recommends that it be passed. The effects of passage on existing law are also described.