; or (C) otherwise engages in a transaction involving funds that the person knows have been derived from a criminal offense or are intended to be used to promote or support unlawful activity. (b) Criminal penalty Any person who violates— (1) subsection (a) shall be fined in accordance with this title, imprisoned for not more than 5 years, or both; or (2) subsection (a) by conducting, controlling, managing, supervising, directing, or owning all or part of a covered money services business that engaged in activity as a covered money services business involving more than $1,000,000 during a 12-month period, or by engaging in a transaction or transactions involving more than $1,000,000 during a 12-month period, shall be fined double the amount provided in subsection (b)(3) or (c)(3) (as applicable) of section 3571, imprisoned for not more than 10 years, or both. (c) Definitions In this section— (1) the term covered money services business means a money services business that— (A) operates on behalf of the public; and (B) affects interstate or foreign commerce in any manner or degree; (2) the term money services business — (A) has the meaning given the term in section 5330 of title 31 and any regulations prescribed under that section; and (B) includes a person that engages in the transfer, transportation, or exchange of currency, funds, or value that substitutes for currency by any and all means, even when not performed for profit; and (3) the term State means any State of the United States, the District of Columbia, the Northern Mariana Islands, and any commonwealth, territory, or possession of the United States. . (b) Technical and conforming amendments (1) Title 18, United States Code (A) Section heading Section 1960 of title 18, United States Code, is amended in the section heading— (i) by striking unlicensed and inserting illegal