[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4331 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 4331

To amend title 31, United States Code, to establish the Office of Money 
Services Business Compliance within the Department of the Treasury for 
the purpose of assuring compliance with subchapter II of chapter 53 of 
 such title by money services businesses and such other duties as the 
    Secretary of the Treasury may delegate, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 16, 2009

Mr. Bachus (for himself, Mr. Gutierrez, and Mr. Tiberi) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
To amend title 31, United States Code, to establish the Office of Money 
Services Business Compliance within the Department of the Treasury for 
the purpose of assuring compliance with subchapter II of chapter 53 of 
 such title by money services businesses and such other duties as the 
    Secretary of the Treasury may delegate, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Money Services Business Compliance 
Facilitation Act of 2009''.

SEC. 2. OFFICE OF MONEY SERVICES BUSINESS COMPLIANCE ESTABLISHED.

    (a) In General.--Subchapter I of chapter 3 of title 31, United 
States Code, is amended by inserting after section 313 the following 
new section:
``Sec. 314. Office of Money Services Business Compliance
    ``(a) Establishment.--There is hereby established the Office of 
Money Services Business Compliance (hereafter in this section referred 
to as the `Compliance Office') as an office within the Department of 
the Treasury.
    ``(b) Management.--
            ``(1) In general.--The management of the Compliance Office 
        shall be vested in a Director of Money Services Business 
        Compliance (hereafter in this section referred to as the 
        `Director').
            ``(2) Appointment.--The Director shall be appointed by the 
        President, by and with the advice and consent of the Senate, 
        without regard to political affiliation and solely on the basis 
        of integrity and demonstrated ability, and after consultation 
        with the Chairman of the Board of Governors of the Federal 
        Reserve System and the Comptroller of the Currency (or 
        successor to any such individual with regard to bank 
        supervisory authority), from among individuals who are 
        specially qualified to serve in that position by reason of 
        their education, training, and experience.
            ``(3) Term of office.--
                    ``(A) The Director shall be appointed for a term of 
                5 years.
                    ``(B) Vacancy.--A vacancy in the position of 
                Director shall be filled in the manner the original 
                appointment was made and any individual appointed to 
                fill any such vacancy shall be appointed only for the 
                remainder of the term in which the vacancy occurs.
            ``(4) Removal.--
                    ``(A) In general.--Notwithstanding paragraph (3), 
                the Director may be removed by the President at any 
                time for good cause.
                    ``(B) Notice to the congress.--Upon the removal of 
                a Director under subparagraph (A), the President shall 
                promptly transmit a notice to the Congress of the 
                removal together with a detailed explanation of the 
                basis for the removal.
                    ``(C) Additional information.--After providing 
                notice under subparagraph (B), the President shall 
                promptly respond to any request by any committee of the 
                Senate or the House of Representatives for additional 
                information or supporting documents.
    ``(c) Duties.--
            ``(1) In general.--The duties of the Director shall be to 
        assure compliance by money services businesses with all 
        applicable requirements of subchapter II of chapter 53, 
        regulations prescribed under such subchapter and any other duty 
        delegated by the Secretary under paragraph (3).
            ``(2) Registration of money services businesses.--
                    ``(A) In general.--No person may operate a money 
                services business without registering annually, to the 
                satisfaction of the Director under this paragraph.
                    ``(B) Criteria.--The Director, in consultation with 
                the Secretary, the appropriate Federal banking 
                agencies, and appropriate representative State 
                officials, shall establish such procedures and criteria 
                for registration, commensurate with the purposes of 
                this section, as the Director determines to be 
                appropriate.
                    ``(C) Registration as compliance.--Any money 
                services business registered to the satisfaction of the 
                Director under this section shall be deemed to be 
                registered with the Secretary for purposes of section 
                5330.
                    ``(D) Compliance.--Any money services business, and 
                any agent of a money services business, which fails to 
                register and keep current a registration to the 
                satisfaction of the Secretary under this paragraph 
                shall, after the expiration of a 30-day period 
                beginning on a notice of violation issued by the 
                Director or an agent recognized by the Director, be 
                subject to the same penalties as described in 
                subsection (f)(3)(D) for a violation of an order issued 
                under subsection (f)(3).
            ``(3) Delegated functions.--The Director shall carry out 
        any other duty delegated by the Secretary of the Treasury to 
        the Director.
    ``(d) Rule of Construction.--No provision of this section shall be 
construed as limiting or pre-empting any State law or regulation or 
order concerning the regulation and oversight of the money service 
business industry, or agents of money services businesses, for purposes 
of consumer protection, safety and soundness, or the prevention of 
money laundering or the financing of terrorism.
    ``(e) Recognition of Self-regulatory Organizations Relating to 
Money Services Businesses.--
            ``(1) Registration.--The Director may, after notice and 
        opportunity for comment and upon application by an organization 
        representing money services business that meets such criteria 
        as the Director may establish under this section, approve the 
        registration of such organization as a self regulatory 
        organization to carry out the duties of the Director under 
        paragraph (1) with respect to the money services businesses 
        represented by such self regulatory organization.
            ``(2) Procedures and requirements for sro.--The Director 
        shall establish such procedures and requirements to become a 
        self regulatory organization as the Secretary determines to be 
        appropriate, including periodic reviews of such organization 
        and reporting requirements by such organization to the Director 
        to ensure the success of such organizations in ensuring 
        compliance by the money services businesses, taking into 
        account in particular the requirements of subsections (g), (h), 
        (l), (m), and (n) of section 5318 and section 5318A.
            ``(3) Withdrawal of registration.--
                    ``(A) In general.--After notice and opportunity for 
                hearing, the Director may withdraw the registration of 
                any self regulatory organization previously approved 
                under this subsection.
                    ``(B) Notice to the congress.--Upon the withdrawal 
                of the registration of any self regulatory organization 
                under subparagraph (A), the Director shall promptly 
                submit a notice to the Congress of the withdrawal 
                together with a detailed explanation of the basis for 
                the withdrawal.
                    ``(C) Additional information.--After providing 
                notice under subparagraph (B), the Director shall 
                promptly respond to any request by any committee of the 
                Senate or the House of Representatives for additional 
                information or supporting documents.
            ``(4) Requirements for rules enforced by self regulatory 
        organization.--The Director may establish minimum requirements 
        for--
                    ``(A) rules established by any self regulatory 
                organization for members regulated by the organization;
                    ``(B) enforcement procedures and enforcement 
                activities by self regulatory organization, with 
                respect to the enforcement of the rules referred to in 
                subparagraph (A); and
                    ``(C) requirements established by a self regulatory 
                organization for withdrawal of membership of any 
                noncomplying member, monetary penalties, and the 
                removal of officers and employees of a noncomplying 
                member business.
            ``(5) Notice requirements.--The Director shall establish 
        procedures under which any self regulatory organization shall 
        report to the Congress on a regular basis on--
                    ``(A) violations by members of the organization of 
                any law, any regulation prescribed by the Director, or 
                any rule established by the organization since the date 
                of the last report; and
                    ``(B) any enforcement actions taken by the 
                organization since such date.
    ``(f) Powers.--
            ``(1) In general.--For purposes of carrying out this 
        section, the Director shall have all the powers of the 
        Secretary under subsections (b), (c), (d), and (e) of section 
        5318.
            ``(2) Rule of construction.--No provision of this section 
        shall be construed as limiting or superseding the enforcement 
        authority of the Secretary under subchapter II of chapter 53 
        with respect to any violation of such subchapter.
            ``(3) Cease and desist.--
                    ``(A) Determination of violation.--If the Director 
                determines that any money services business, or any 
                officer, director, agent, or employee of any such 
                business, may be violating or may have violated this 
                section, subchapter II of chapter 53, or any other 
                provision of law or any regulation subject to the 
                jurisdiction of the Secretary, or may be about to 
                violate such section, subchapter, or provision of law 
                or regulation, the Director may issue a temporary order 
                or permanent order directing such money services 
                business, and any officer, director, agent, or employee 
                of such money services business--
                            ``(i) to cease and desist from the 
                        violation or threatened violation;
                            ``(ii) to take such action as is necessary 
                        to prevent the violation or threatened 
                        violation; or
                            ``(iii) to take such action as is necessary 
                        to prevent, as the Director determines to be 
                        appropriate--
                                    ``(I) significant harm to consumers 
                                or the public interest; or
                                    ``(II) frustration of the ability 
                                of the Director to conduct the 
                                proceedings or to redress the violation 
                                at the conclusion of the proceedings.
                    ``(B) Timing of entry.--An order issued under this 
                paragraph shall be entered only after notice and 
                opportunity for a hearing, unless the Director 
                determines that notice and hearing prior to entry would 
                be impracticable or contrary to the public interest.
                    ``(C) Effective date of temporary order.--A 
                temporary order issued under this paragraph shall--
                            ``(i) become effective upon service upon 
                        the respondent; and
                            ``(ii) unless set aside, limited, or 
                        suspended by the Director or a court of 
                        competent jurisdiction, remain effective and 
                        enforceable pending the completion of the 
                        proceedings.
                    ``(D) Enforcement.--Any money services business, 
                and any officer, director, agent, or employee of such 
                money services business, which violates any temporary 
                or permanent order issued under this paragraph shall 
                forfeit and pay a civil penalty of not more than $5,000 
                for each day during which such violation continues.
                    ``(E) Assessment.--The Secretary shall assess any 
                penalty in the same manner and subject to the same 
                limitations as assessments under section 5321(b).
    ``(g) Money Services Business Defined.--For purposes of this 
section, the term `money services business' has the meaning given to 
the term in section 103.11(uu) of title 31, Code of Federal 
Regulations, as in effect on the date of the enactment of the Money 
Services Business Compliance Facilitation Act of 2009.
    ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary for each of fiscal years 2010, 2011, and 
2012 such sums as may be necessary to carry out this section, to be 
made available to the Director.
    ``(i) Long-Term Funding Planning.--Before the end of the 18-month 
period beginning on the date of the enactment of the Money Services 
Business Compliance Facilitation Act of 2009, the Director shall submit 
a report to the Congress containing recommendations for an appropriate 
long-term funding model for the Compliance Office to ensure the 
independence of the Compliance Office.''.
    (b) Technical and Conforming Amendment.--Section 111 of the Act 
approved on October 28, 1974 (12 U.S.C. 250), is amended by inserting 
``the Director of Money Services Business Compliance,'' after 
``Director of the Office of Thrift Supervision,''.
    (c) Clerical Amendment.--The table of section for chapter 3 of 
title 31, United States Code, is amended by inserting after the item 
relating to section 313 the following new item:

``314. Office of Money Services Business Compliance.''.
                                 <all>