3.0.0 2790 2023-01-11T13:31:25Z 2023-01-11T13:31:25Z Senate S 2016-04-13 114 ssbk00 Banking, Housing, and Urban Affairs Committee Senate Standing Referred to 2016-04-13T17:40:12Z Financial Institution Customer Protection Act of 2016 114 766 HR 2016-02-08 Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. Related bill CRS Financial CHOICE Act of 2016 114 5983 HR 2016-12-20 Placed on the Union Calendar, Calendar No. 693. Related bill CRS 2016-04-13 ssbk00 Banking, Housing, and Urban Affairs Committee Senate Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. IntroReferral 2016-04-13 Introduced in Senate IntroReferral 10000 9 Library of Congress C001098 Sen. Cruz, Ted [R-TX] Ted Cruz R TX N L000577 Sen. Lee, Mike [R-UT] Mike Lee R UT 2016-04-13 True C000880 Sen. Crapo, Mike [R-ID] Mike Crapo R ID 2016-04-13 True C001056 Sen. Cornyn, John [R-TX] John Cornyn R TX 2016-04-13 True V000127 Sen. Vitter, David [R-LA] David Vitter R LA 2016-04-14 False B000575 Sen. Blunt, Roy [R-MO] Roy Blunt R MO 2016-04-19 False P000603 Sen. Paul, Rand [R-KY] Rand Paul R KY 2016-04-26 False H001041 Sen. Heller, Dean [R-NV] Dean Heller R NV 2016-04-27 False C001075 Sen. Cassidy, Bill [R-LA] Bill Cassidy R LA 2016-06-20 False Finance and Financial Sector Administrative law and regulatory procedures Bank accounts, deposits, capital Banking and financial institutions regulation Business records Congressional oversight Consumer affairs Department of the Treasury Evidence and witnesses Federal Deposit Insurance Corporation (FDIC) Federal Reserve System Government information and archives Judicial procedure and administration National Credit Union Administration Terrorism Finance and Financial Sector 00 2016-04-13 Introduced in Senate 2016-06-14T20:42:15Z Financial Institution Customer Protection Act of 2016

This bill prohibits a federal banking agency from formally or informally suggesting, requesting, or ordering a depository institution to terminate either a specific customer account, or group of customer accounts, or otherwise restrict or discourage it from entering into or maintaining a banking relationship with a specific customer or group of customers, unless: (1) the agency has a material reason to do so, and (2) the reason is not based solely on reputation risk to the institution.

The "material reason" criterion shall be satisfied if an agency believes that a specific customer or group of customers poses a threat to national security, including any belief that they are involved in terrorist financing.

Unless the appropriate agency determines that the customer or group of customers has used due diligence to avoid doing business with any entity described below, the bill deems the criteria addressing "material reason" to be met if the agency believes a customer or group of customers is, or is acting as, a conduit for an entity which:

  • poses a threat to national security;
  • is involved in terrorist financing;
  • is an agency of the government of Iran, North Korea, Syria, or any country listed from time to time on the state sponsor of terrorism list;
  • is either located in, or subject to the jurisdiction of, any of such countries; or
  • does business with any entity located in such countries.

If an appropriate federal banking agency orders a depository institution to terminate a specific customer account or a group of customer accounts, the depository institution shall inform the customer or customers of the justification for the termination.

No notice may be given to the customer, however, if the agency requests or orders a depository institution to terminate a customer account (or a group of customer accounts) based upon a belief that customer or those customers pose a threat to national security or are otherwise described above.

The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 is amended to revise requirements for summoning witnesses and requiring production of books or other records the Attorney General deems relevant or material to a civil investigation in contemplation of a civil proceeding which may result in civil penalties for specified violations.

]]> Financial Institution Customer Protection Act of 2016 Display Title Financial Institution Customer Protection Act of 2016 Official Title as Introduced A bill to provide requirements for the appropriate Federal banking agencies when requesting or ordering a depository institution to terminate a specific customer account, to provide for additional requirements related to subpoenas issued under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and for other purposes. Introduced in Senate IS Short Titles as Introduced Financial Institution Customer Protection Act of 2016 Introduced in Senate 2016-04-13T04:00:00Z https://www.govinfo.gov/content/pkg/BILLS-114s2790is/xml/BILLS-114s2790is.xml 2016-04-13 Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Congressional Research Service, Library of Congress This file contains bill summaries and statuses for federal legislation. A bill summary describes the most significant provisions of a piece of legislation and details the effects the legislative text may have on current law and federal programs. Bill summaries are authored by the Congressional Research Service (CRS) of the Library of Congress. As stated in Public Law 91-510 (2 USC 166 (d)(6)), one of the duties of CRS is "to prepare summaries and digests of bills and resolutions of a public general nature introduced in the Senate or House of Representatives". For more information, refer to the User Guide that accompanies this file.