116 HR 2514 IH: Coordinating Oversight, Upgrading and Innovating Technology, and Examiner Reform Act of 2019 U.S. House of Representatives 2019-05-03 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.
I116th CONGRESS1st SessionH. R. 2514IN THE HOUSE OF REPRESENTATIVESMay 3, 2019Mr. Cleaver introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedA BILLTo make reforms to the Federal Bank Secrecy Act and anti-money laundering laws, and for other purposes.
1.
Short title; table of contents
(a)
Short title
This Act may be cited as the Coordinating Oversight, Upgrading and Innovating Technology, and Examiner Reform Act of 2019 or the COUNTER Act of 2019. (b)
Table of contents
The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Bank Secrecy Act definition. Title I—Strengthening Treasury Sec. 101. Improving the definition and purpose of the Bank Secrecy Act. Sec. 102. FinCEN Compensation. Sec. 103. Civil Liberties and Privacy Officer. Sec. 104. Privacy and Civil Liberties Council. Sec. 105. International coordination. Sec. 106. Treasury Attaché Program. Sec. 107. Increasing technical assistance for international cooperation. Sec. 108. FinCEN Domestic Liaisons. Sec. 109. FinCEN Exchange. Sec. 110. Study and strategy on trade-based money laundering. Sec. 111. De-risking report. Title II—Improving AML/CFT Oversight Sec. 201. Sharing of suspicious activity reports within a financial group. Sec. 202. Training for examiners on AML/CFT. Sec. 203. Sharing of compliance resources. Sec. 204. GAO Study on feedback loops. Sec. 205. FinCEN study on BSA value. Sec. 206. Section 314(a) improvements. Sec. 207. Sharing of threat pattern and trend information. Sec. 208. Modernization and upgrading whistleblower protections. Sec. 209. Certain violators barred from serving on public company boards. Sec. 210. Additional damages for repeat Bank Secrecy Act violators. Sec. 211. Justice annual report on deferred and nonprosecution agreements. Sec. 212. Return of profits and bonuses. Sec. 213. Prohibition on tax deductions for attorney’s fees related to Bank Secrecy Act settlements and court costs. Sec. 214. Application of Bank Secrecy Act to dealers in art or antiquities. Sec. 215. Revision to geographic targeting order. Title III—Modernizing the AML System Sec. 301. Encouraging innovation in BSA compliance. Sec. 302. Innovation Labs. Sec. 303. Innovation Council. Sec. 304. Parallel runs rulemaking.
2.
Bank Secrecy Act definition
Section 5312(a) of title 31, United States Code, is amended by adding at the end the following: (6)
Bank Secrecy Act
The term Bank Secrecy act means— (A)section 21 of the Federal Deposit Insurance Act; (B)chapter 2 of title I of Public Law 91–508; and (C)this subchapter..
<enum>I</enum><header>Strengthening Treasury</header> <section id="H50FF86E0D4584D8C9E0ABFB165A536D8"><enum>101.</enum><header>Improving the definition and purpose of the Bank Secrecy Act</header><text display-inline="no-display-inline">Section 5311 of title 31, United States Code, is amended—</text> <paragraph id="HD40A5AD3CE224BD7BCA5E2A56D40E185"><enum>(1)</enum><text>by inserting <quote>to protect our national security, to safeguard the integrity of the international financial system, and</quote> before <quote>to require</quote>; and</text> </paragraph><paragraph id="HADF3E2E858D44B9E827CB1F3144B69EB"><enum>(2)</enum><text>by inserting <quote>to law enforcement</quote> before <quote>in criminal</quote>.</text> </paragraph></section><section id="HA07BC43216ED482C915FB23A48C1E2E5"><enum>102.</enum><header>FinCEN Compensation</header><text display-inline="no-display-inline">Section 310 of title 31, United States Code, is amended—</text> <paragraph id="HBC5871A894B7426992DEFE3F3601EDC8"><enum>(1)</enum><text>by redesignating subsection (d) as subsection (f); and</text> </paragraph><paragraph id="H0AE5CEC60D1044EF9381200489178DF6"><enum>(2)</enum><text>by inserting after subsection (c) the following:</text> <quoted-block display-inline="no-display-inline" id="HC08A57F5582744ADA59BBA780B3B3080" style="USC"> <subsection id="HD03728B870E543D9A3A86889EFAD9FA1"><enum>(d)</enum><header>Employee compensation</header><text display-inline="yes-display-inline">In fixing the compensation for employees of FinCEN, the Secretary shall—</text> <paragraph id="HBD820EBD26BC456D9032ED4E09054EA3"><enum>(1)</enum><text>fix such compensation without regard to the provisions of chapter 51 or subchapter III of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/53">chapter 53</external-xref> of title 5, United States Code; and</text> </paragraph><paragraph id="H8EFB622120194BA1807A71CD196E43DE"><enum>(2)</enum><text>ensure that such compensation is comparable to the compensation provided by the Board of Governors of the Federal Reserve System, the Bureau of Consumer Financial Protection, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="HA4A52858E27144D78B8F606EB418372E"><enum>103.</enum><header>Civil Liberties and Privacy Officer</header> <subsection id="HB4682E109A054B04BFA98512EA6D15BC"><enum>(a)</enum><header>Appointment of Officers</header><text display-inline="yes-display-inline">Not later than the end of the 3-month period beginning on the date of enactment of this Act, a Civil Liberties and Privacy Officer shall be appointed, from among individuals who are attorneys with expertise in data privacy laws—</text> <paragraph id="HD22B102CD29C4918B8488B8E6AD4ABB4"><enum>(1)</enum><text>within each Federal financial regulator, by the head of the Federal financial regulator;</text> </paragraph><paragraph id="HF5AA2E5F07F8448DA40A51488025BB33"><enum>(2)</enum><text display-inline="yes-display-inline">within the Financial Crimes Enforcement Network, by the Secretary of the Treasury; and</text> </paragraph><paragraph id="HDA250468FDAD4553B6FBE288FF99FBE7"><enum>(3)</enum><text>within the Internal Revenue Service Criminal Investigation, by the Secretary of the Treasury.</text> </paragraph></subsection><subsection id="H8F7EBF2292334A6CAA9B8CAE5ADA9B97"><enum>(b)</enum><header>Duties</header><text display-inline="yes-display-inline">Each Civil Liberties and Privacy Officer shall, with respect to the applicable regulator, Network, or Investigation within which the Officer is located—</text> <paragraph id="HA45DC6D5A58143C682586CDC925B90F6"><enum>(1)</enum><text display-inline="yes-display-inline">be consulted each time the regulations are developed or reviewed;</text> </paragraph><paragraph id="H5954ED4C64B349BF9C4DA65821EAD851"><enum>(2)</enum><text>be consulted on information-sharing activities, including activities that provide access to personally identifiable information; and</text> </paragraph><paragraph id="H359529BF01F94555B719442E03A9D300"><enum>(3)</enum><text>contribute to the evaluation and regulation of new technologies.</text> </paragraph></subsection><subsection id="HAC547058D3434D57B31B3F46CCDE437F"><enum>(c)</enum><header>Federal financial regulator defined</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>Federal financial regulator</term> means the Board of Governors of the Federal Reserve System, the Bureau of Consumer Financial Protection, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency.</text> </subsection></section><section id="H253C7617D13B4F6088F2A227F2AEF272"><enum>104.</enum><header>Privacy and Civil Liberties Council</header> <subsection id="H8A294B8543124499BF3E73B3F68013AC"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is established the Privacy and Civil Liberties Council (hereinafter in this section referred to as the <quote>Council</quote>), which shall consist of the Civil Liberties and Privacy Officers appointed pursuant to section 103.</text> </subsection><subsection commented="no" id="HB1ED763B1A754663B368FCE11788102D"><enum>(b)</enum><header>Chair</header><text display-inline="yes-display-inline">The Civil Liberties and Privacy Officer of the Financial Crimes Enforcement Network shall serve as the Chair of the Council.</text> </subsection><subsection id="H2DCFEFEDBFFD4048A98802C39B1140E8"><enum>(c)</enum><header>Duty</header><text display-inline="yes-display-inline">The members of the Council shall coordinate on activities related to their duties as Privacy and Civil Liberties Officers.</text> </subsection><subsection id="HEB24A56AB91345ACABF090E134FEFC32"><enum>(d)</enum><header>Meetings</header><text display-inline="yes-display-inline">The meetings of the Council—</text> <paragraph id="H376C53522D164B9AA79C2560DC550EBA"><enum>(1)</enum><text>shall be at the call of the Chair, but in no case may the Council meet less than quarterly;</text> </paragraph><paragraph id="H023454E0F4D344D58FD98DE1B25EEED9"><enum>(2)</enum><text>may include open and closed sessions, as determined necessary by the Council; and</text> </paragraph><paragraph id="H63CA87185B744400913623806B468FDA"><enum>(3)</enum><text>may include participation by public and private entities and law enforcement agencies.</text> </paragraph></subsection><subsection id="H7234155F532E4237AFB9E46676A03861"><enum>(e)</enum><header>Report</header><text>The Council shall issue an annual report to the Congress on the activities of the Council during the previous year and any legislative recommendations that the Council may have.</text> </subsection></section><section id="HE2DCD838464C4EB5941A2E6CF19E0708"><enum>105.</enum><header>International coordination</header><text display-inline="no-display-inline">The Secretary of the Treasury shall work with the Secretary’s foreign counterparts, including through the Financial Action Task Force, the International Monetary Fund, the World Bank, and the United Nations, to promote stronger anti-money laundering frameworks and enforcement of anti-money laundering laws.</text> </section><section id="H41BCBFCF76534152BF817B61C9FB6659"><enum>106.</enum><header>Treasury Attaché Program</header> <subsection id="H2EA74987EA6A49BC81834D1560BD28FF"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Title 31, United States Code, is amended by inserting after section 315 the following:</text> <quoted-block display-inline="no-display-inline" id="HCF52F44A86FD4E3996817BAD72BCB889" style="USC"> <section id="HE92BB98053DD4AE6A63B601A9C51BC2D"><enum>316.</enum><header>Treasury Attaché Program</header> <subsection id="H5ECEEE3A79CC4A20A6C37A07797AB5DD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">There is established the Treasury Attaché Program, under which the Secretary of the Treasury shall appoint employees of the Department of the Treasury as a Treasury attaché, who shall—</text> <paragraph id="HD6108B1A4D0E49E8926B90A1379FBAA1"><enum>(1)</enum><text display-inline="yes-display-inline">have expertise in Bank Secrecy Act and anti-money laundering issues;</text> </paragraph><paragraph id="HF294A7D0F50A4EBCB51697809E6EED2A"><enum>(2)</enum><text>be co-located in a United States embassy;</text> </paragraph><paragraph id="HF42791BE961548A4B6155DD976BADE8B"><enum>(3)</enum><text display-inline="yes-display-inline">perform outreach with respect to Bank Secrecy Act and anti-money laundering issues;</text> </paragraph><paragraph id="H77087B0227FE4C5E9D7C273D997C584E"><enum>(4)</enum><text>establish and maintain relationships with foreign counterparts, including employees of ministries of finance, central banks, and other relevant official entities;</text> </paragraph><paragraph id="H65AF1A29665D488F9AE3CD8E5DA82AAB"><enum>(5)</enum><text>conduct outreach to local and foreign financial institutions and other commercial actors, including—</text> <subparagraph id="HFABB73D21DBE4A2EA7ECAA35F93EB75D"><enum>(A)</enum><text>information exchanges; and</text> </subparagraph><subparagraph id="H2B91A43D98634F229F155BB24F4CC00B"><enum>(B)</enum><text>soliciting buy-in and cooperation for the implementation of—</text> <clause id="H5F16C0FB426443FBAA85413D8153711C"><enum>(i)</enum><text>United States and multilateral sanctions; and</text> </clause><clause id="H2D287196F6C045D6AEAF000A3F256D7E"><enum>(ii)</enum><text>international standards on anti-money laundering and the countering of the financing of terrorism; and</text> </clause></subparagraph></paragraph><paragraph id="H8C222460E967482BBB01824DBA76B79B"><enum>(6)</enum><text>perform such other actions as the Secretary determines appropriate.</text> </paragraph></subsection><subsection id="HBF4E070DDB38401981E593C1C1F0928A"><enum>(b)</enum><header>Number of attachés</header><text display-inline="yes-display-inline">The number of Treasury attachés appointed under this section at any one time shall be not fewer than 6 more employees than the number of employees of the Department of the Treasury serving as Treasury attachés on March 1, 2019.</text> </subsection><subsection id="H78F16644DBC14F38A4AE278F4A1E2E79"><enum>(c)</enum><header>Compensation</header><text display-inline="yes-display-inline">Each Treasury attaché appointed under this section and located at a United States embassy shall receive compensation at the higher of—</text> <paragraph id="H45D4CE10986F47CCB8868BA17BC00654"><enum>(1)</enum><text>the rate of compensation provided to a Foreign Service officer serving at the same embassy; or</text> </paragraph><paragraph id="H5BDCA2432AD843DDB437C61824DE67B0"><enum>(2)</enum><text display-inline="yes-display-inline">the rate of compensation the Treasury attaché would otherwise have received, absent the application of this subsection.</text> </paragraph></subsection><subsection id="H06248C2491DD41BAAEEA90C31C2883E2"><enum>(d)</enum><header>Bank Secrecy Act defined</header><text display-inline="yes-display-inline">In this section, the term <term>Bank Secrecy Act</term> has the meaning given that term under section 5312.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H0BD6E3EDAC404E8881F70CCCD5013041"><enum>(b)</enum><header>Clerical amendment</header><text>The table of contents for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/3">chapter 3</external-xref> of title 31, United States Code, is amended by inserting after the item relating to <external-xref legal-doc="usc" parsable-cite="usc/31/315">section 315</external-xref> the following:</text> <quoted-block display-inline="no-display-inline" id="HFD42510F721D46CA804C56862E301ECD" style="USC"> <toc regeneration="no-regeneration"> <toc-entry level="section">316. Treasury Attaché Program.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="H4E77C23A4F3A4974BEBDB606C29E8AB4"><enum>107.</enum><header>Increasing technical assistance for international cooperation</header><text display-inline="no-display-inline">There is authorized to be appropriated for fiscal year 2020 to the Secretary of the Treasury for purposes of providing technical assistance for international cooperation an amount equal to twice the amount authorized for such purpose for fiscal year 2019.</text> </section><section id="HA10C628C4B9545B8888133E5E1414C92"><enum>108.</enum><header>FinCEN Domestic Liaisons</header><text display-inline="no-display-inline">Section 310 of title 31, United States Code, as amended by section 102, is further amended by inserting after subsection (d) the following:</text> <quoted-block display-inline="no-display-inline" id="HA8CD36AB3C8445418FDF5C040EB60958" style="USC"> <subsection id="HA85A4D11D7F341B087D6AF85DCC734BE"><enum>(e)</enum><header>FinCEN Domestic Liaisons</header> <paragraph id="H35214ED9F9474D9B9C932EF552608DF9"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Director of FinCEN shall appoint at least 6 senior FinCEN employees as FinCEN Domestic Liaisons, who shall—</text> <subparagraph id="H4DB1AF6A462D440F872955FC8DDC8C9D"><enum>(A)</enum><text display-inline="yes-display-inline">each be assigned to focus on a specific region of the United States;</text> </subparagraph><subparagraph id="HB70D83402FA84C8DB43DD4A75E4E345D"><enum>(B)</enum><text>be located at an office in such region (or co-located at an office of another Federal agency in such region);</text> </subparagraph><subparagraph id="H03F4040D66CF4F05B0F058DA796CD7E8"><enum>(C)</enum><text>provide education to, and coordination with, both public- and private-sector entities with respect to FinCEN; and</text> </subparagraph><subparagraph id="HBF7CBC11B9964DD6857E699ADE93EAA9"><enum>(D)</enum><text display-inline="yes-display-inline">perform outreach to financial institutions (including non-bank financial institutions) and persons who are not financial institutions, especially with respect to actions taken by FinCEN that require specific actions by, or have specific effects on, such institutions or persons, as determined by the Director.</text> </subparagraph></paragraph><paragraph id="HF72F35E91FC6435D89E8C4A78147594D"><enum>(2)</enum><header>Financial institution defined</header><text display-inline="yes-display-inline">In this subsection, the term <term>financial institution</term> has the meaning given that term under section 5312.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H9B04643850C746FB84A3BA4CC4F31AEB"><enum>109.</enum><header>FinCEN Exchange</header> <subsection id="H0432E2F76B8543A68046E102978F385F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 314(a) of the USA PATRIOT Act (<external-xref legal-doc="usc" parsable-cite="usc/31/5311">31 U.S.C. 5311</external-xref> note) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HA8E7D6E42B7848B3A712245C0932D15F" style="OLC"> <paragraph id="H71BC93933BC94E7C9534E1E73DD4FFD6"><enum>(6)</enum><header>FinCEN Exchange</header> <subparagraph id="H123F455E9E964F33B20DB368ACFF35E9"><enum>(A)</enum><header>Establishment</header><text>The FinCEN Exchange is hereby established within FinCEN, which shall consist of the FinCEN Exchange program of FinCEN in existence on the day before the date of enactment of this paragraph.</text> </subparagraph><subparagraph id="HFECCFE5DF93A41DA9CA8A14F5D7D568F"><enum>(B)</enum><header>Purpose</header><text display-inline="yes-display-inline">The FinCEN Exchange shall further the purpose described under paragraph (1) by facilitating a voluntary public-private information sharing partnership among law enforcement, financial institutions, and FinCEN to—</text> <clause id="H2BDBBDF013E645599D46F2872D516ECE"><enum>(i)</enum><text>effectively and efficiently combat money laundering, terrorism financing, organized crime, and other financial crimes;</text> </clause><clause id="H269BC1D3E299412AB8467BA9FDA526E0"><enum>(ii)</enum><text>protect the financial system from illicit use; and</text> </clause><clause id="H5290552B6E494405B746AC51AC39125A"><enum>(iii)</enum><text>promote national security.</text> </clause></subparagraph><subparagraph id="HD01CA19780EA4DA29296B07903EB6A82"><enum>(C)</enum><header>FinCEN defined</header><text display-inline="yes-display-inline">In this paragraph, the term <term>FinCEN</term> means the Financial Crimes Enforcement Network of the Department of the Treasury.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H5CAAB71B573044A19013781B4E5CC749"><enum>(b)</enum><header>Authorization of appropriation</header><text>There is authorized to be appropriated such sums as may be necessary to carry out the amendment made by subsection (a).</text> </subsection></section><section id="H8955D0F9FD59453FB5752FFA5605BD7A"><enum>110.</enum><header>Study and strategy on trade-based money laundering</header> <subsection id="H2FCC8DEEFF8243D3A9DE212B1EEC5E6A"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall carry out a study, in consultation with other appropriate Federal departments and agencies, on trade-based money laundering.</text> </subsection><subsection id="HAC64BE61AB67463C94C1880B364313B6"><enum>(b)</enum><header>Report</header><text>Not later than the end of the 9-month period beginning on the date of the enactment of this Act, the Secretary shall issue a report to the Congress containing—</text> <paragraph id="HACBE9127B384467384621BAFB98CD758"><enum>(1)</enum><text>all findings and determinations made in carrying out the study required under subsection (a); and</text> </paragraph><paragraph id="H8CD9AA1DECE74970B4D6E42E4C1E402E"><enum>(2)</enum><text display-inline="yes-display-inline">proposed strategies to combat trade-based money laundering.</text> </paragraph></subsection><subsection id="HDED8A5EE55E64F0FB8DFE9C01886A500"><enum>(c)</enum><header>Classified annex</header><text display-inline="yes-display-inline">The report required under this section may include a classified annex, if the Secretary determines it appropriate.</text> </subsection></section><section id="H913BCB5BB68A43BD89A99EA63F4455F3"><enum>111.</enum><header>De-risking report</header> <subsection id="HC004A74559BA4D6A95BBEB8547FE764A"><enum>(a)</enum><header>Review</header><text display-inline="yes-display-inline">The Secretary of the Treasury, in consultation with the Federal functional regulators (as defined under section 103) and other relevant stakeholders, shall undertake a formal review of—</text> <paragraph id="H7A8974D9987A4682ADCFFBCD0FE91F6E"><enum>(1)</enum><text>the adverse consequences of financial institutions de-risking entire categories of relationships, including charities, embassy accounts, money services businesses (as defined under section 1010.100(ff) of title 31, Code of Federal Regulations), countries, regions, and respondent banks;</text> </paragraph><paragraph id="H19464194A73342B7B09AF09E559508D5"><enum>(2)</enum><text>the reasons why financial institutions are engaging in de-risking;</text> </paragraph><paragraph id="HA4FD8AEB97F34E80956415C6ADE317B5"><enum>(3)</enum><text>the association with and effects of de-risking on money laundering and financial crime actors and activities; and</text> </paragraph><paragraph id="H81712CF2D2CF440E9BD55BE544D2DD10"><enum>(4)</enum><text>the most appropriate ways to promote financial inclusion while maintaining compliance with the Bank Secrecy Act.</text> </paragraph></subsection><subsection id="HE243A2615A944D09BE6C212B28BCE3BD"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than the end of the 1-year period beginning on the date of the enactment of this Act, the Secretary, in consultation with the Federal functional regulators and other relevant stakeholders, shall issue a report to Congress containing all findings and determinations made in carrying out the study required under subsection (a).</text> </subsection><subsection id="H9B97B27C33824C1BA5C8D7BB2C9E2BA2"><enum>(c)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HD7B24236D2D743E58F1E05BC42BAD4D0"><enum>(1)</enum><header>De-risking</header><text display-inline="yes-display-inline">The term <term>de-risking</term> means the closing of customer accounts or limiting services of a category of customer due to perceived risk as it relates to compliance with the Bank Secrecy Act.</text> </paragraph><paragraph id="H516AE25E8C8349BE9353B596BB167E06"><enum>(2)</enum><header>BSA terms</header><text>The terms <term>Bank Secrecy Act</term> and <term>financial institution</term> have the meaning given those terms, respectively, under section 5312 of title 31, United States Code.</text> </paragraph></subsection></section><enum>II</enum><header>Improving AML/CFT Oversight</header> <section id="H81A99D8613664A8B936172A84125DB17"><enum>201.</enum><header>Sharing of suspicious activity reports within a financial group</header> <subsection id="H3DF422F9FCAA43D59310A010B8DC5C93"><enum>(a)</enum><header>In general</header> <paragraph id="HADE365B134E040EB949195A95C48B73F"><enum>(1)</enum><header>Sharing with foreign branches and affiliates</header><text>Section 5318(g) of title 31, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H610443A68B4C49F98AF4D8140E2CC245" style="USC"> <paragraph id="H5A98538D011A4C978DCE37221A62547C"><enum>(5)</enum><header>Sharing with foreign branches, subsidiaries, and affiliates</header> <subparagraph id="HA87317BB4F944CFD820D13F290D5A534"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 180 days after the date of the enactment of this paragraph, the Secretary of the Treasury shall issue rules permitting any financial institution with a reporting obligation under this subsection to share information on reports under this subsection with the institution’s foreign branches, subsidiaries, and affiliates for the purposes of combating illicit finance risks, notwithstanding any other provision of law except subparagraph (B).</text> </subparagraph><subparagraph id="HD2B20E8FDDBE4C309C72F93792C358D8"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">In issuing the regulations required under subparagraph (A), the Secretary may not permit a financial institution to share information on reports under this subsection with a foreign branch, subsidiary, or affiliate located in a jurisdiction that—</text> <clause id="H0FE019E97D5C4CE68B1CB51D5EA7056A"><enum>(i)</enum><text display-inline="yes-display-inline">is subject to countermeasures imposed by the Federal Government; or</text> </clause><clause id="H72EDB8E9F3904BAE8ECC08D833B28055"><enum>(ii)</enum><text display-inline="yes-display-inline">the Secretary, in consultation with the Civil Liberties and Privacy Officer of the Financial Crimes Enforcement Network, has determined cannot reasonably protect the privacy and confidentiality of such information.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H48D3CBFD9EDF4741BF70FBE63DEB4443"><enum>(2)</enum><header>Notification prohibitions</header><text>Section 5318(g)(2)(A) of title 31, United States Code, is amended—</text> <subparagraph id="H49503E8FDAC74F0B85D245C9EBAFD229"><enum>(A)</enum><text>in clause (i), by inserting after <quote>transaction has been reported</quote> the following: <quote>or otherwise reveal any information that would reveal that the transaction has been reported, including materials prepared or used by the financial institution for the purpose of identifying and detecting potentially suspicious activity</quote>; and</text> </subparagraph><subparagraph id="H864014368DF9405D873C33E3C410D992"><enum>(B)</enum><text>in clause (ii), by inserting after <quote>transaction has been reported,</quote> the following: <quote>or otherwise reveal any information that would reveal that the transaction has been reported, including materials prepared or used by the financial institution for the purpose of identifying and detecting potentially suspicious activity,</quote>.</text> </subparagraph></paragraph></subsection><subsection id="HB357220B94C74FCFBA3AF21F6F70FAC1"><enum>(b)</enum><header>Rulemaking</header><text display-inline="yes-display-inline">Not later than the end of the 180-day period beginning on the date of enactment of this Act, the Secretary of the Treasury shall issue regulations to carry out the amendments made by this section.</text> </subsection></section><section id="HF13F79F969054D229293948D63234E28"><enum>202.</enum><header>Training for examiners on AML/CFT</header><text display-inline="no-display-inline">The Federal Financial Institutions Examination Council Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3301">12 U.S.C. 3301</external-xref> et seq.) is amended—</text> <paragraph id="H204FF93F57754B07B0454394F3FA92B1"><enum>(1)</enum><text>by moving section 1009A so as to appear after section 1009; and</text> </paragraph><paragraph id="HDC78E9AC8ACA480FA7F0FDE0C341A629"><enum>(2)</enum><text>by inserting after section 1009A, as so moved, the following:</text> <quoted-block display-inline="no-display-inline" id="H1F066B074AE748389A27470C96B1F934" style="OLC"> <section id="H2B17226E5A5E46268349BC7EC70AC9BA"><enum>1009B.</enum><header>AML/CFT Training</header> <subsection id="HD3763AE9DBB242FCBF9FAC0618930545"><enum>(a)</enum><header>Training requirement</header><text display-inline="yes-display-inline">Each examiner employed by a Federal financial institutions regulatory agency shall attend at least 10 hours of annual training on anti-money laundering (AML) and the countering of the financing of terrorism (CFT), including—</text> <paragraph id="H51E52DB2B59849EA97D22D05AD1E4414"><enum>(1)</enum><text>potential risk profiles and red flags that may be encountered during examinations;</text> </paragraph><paragraph id="H78E3AF5E9DE6498E935A86D183B6BAB0"><enum>(2)</enum><text>financial crime patterns and trends;</text> </paragraph><paragraph id="HE99B7339F56F43398DDC05BA92507BD0"><enum>(3)</enum><text>the high-level context for why AML and CFT programs are necessary for law enforcement agencies and other national security agencies, and what risks the programs seek to mitigate; and</text> </paragraph><paragraph id="HF6F6F93A0B634405840F59FB6F98D1FD"><enum>(4)</enum><text display-inline="yes-display-inline">de-risking and its effect on the provision of financial services.</text> </paragraph></subsection><subsection id="H459C482699CE4AC4A3268E4DC429E9F1"><enum>(b)</enum><header>Training materials and standards</header><text display-inline="yes-display-inline">The Council shall establish uniform training materials and standards for use in the training required under subsection (a).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="HB1FD995C831747C0A1F9AA4F364E1578"><enum>203.</enum><header>Sharing of compliance resources</header> <subsection id="H9C8523535E3F43C8A1DB4C9C12FA25DB"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 5318 of title 31, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H7D7D3F6EB4364E78B8DDD0DCAC6A33D5" style="USC"> <subsection id="H0D22138A288643B682190AB4EF11BB1F"><enum>(o)</enum><header>Sharing of compliance resources</header> <paragraph id="H0B14D41DAFA547509453AC9D346CB2B2"><enum>(1)</enum><header>Sharing permitted</header><text display-inline="yes-display-inline">Two or more financial institutions may enter into collaborative arrangements in order to more efficiency comply with the requirements of this subchapter.</text> </paragraph><paragraph id="HC44D3CA9C7D643D7842ABA911F101601"><enum>(2)</enum><header>Outreach</header><text>The Secretary of the Treasury and the appropriate supervising agencies shall carry out an outreach program to provide financial institutions with information, including best practices, with respect to the sharing of resources described under paragraph (1).</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HAA8279A402BE4CA4AE96508D49530D75"><enum>(b)</enum><header>Rule of construction</header><text>The amendment made by subsection (a) may not be construed to require financial institutions to share resources.</text> </subsection></section><section commented="no" id="H78B166B56C054110BEFC4A858758416C"><enum>204.</enum><header>GAO Study on feedback loops</header> <subsection commented="no" id="H13DAE900765C4CFBBC6876A70A77475B"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Comptroller General of the United States shall carry out a study on—</text> <paragraph id="H5DA33C634AC54E0A8D28C975AE7DA419"><enum>(1)</enum><text display-inline="yes-display-inline">practices within the United States Government for providing feedback (<quote>feedback loop</quote>) to relevant parties (including regulated private entities) on the usage and usefulness of personally identifiable information (<quote>PII</quote>), sensitive-but-unclassified (<quote>SBU</quote>) data, or similar information provided by such parties to Government users of such information and data (including law enforcement or regulators); and</text> </paragraph><paragraph id="HE653B41E7CE042A583FAFC13A478A356"><enum>(2)</enum><text>any practices or standards outside the United States for providing feedback loops on sensitive information and public-private partnership information sharing efforts, specifically related to efforts to combat money laundering and other forms of illicit finance.</text> </paragraph></subsection><subsection commented="no" id="HF34EB2D341F6444E90FAB611B91F8E41"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than the end of the 18-month period beginning on the date of the enactment of this Act, the Comptroller General shall issue a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives containing—</text> <paragraph commented="no" id="H5C03D2A8FBF44543B547C3ADEC20DB32"><enum>(1)</enum><text>all findings and determinations made in carrying out the study required under subsection (a); and</text> </paragraph><paragraph commented="no" id="H7A1133B50F804A289866A854F282A54C"><enum>(2)</enum><text display-inline="yes-display-inline">with respect to each of paragraphs (1) and (2) of subsection (a), any best practices or significant concerns identified by the Comptroller General, and their applicability to public-private partnerships and feedback loops with respect to U.S. efforts to combat money laundering and other forms of illicit finance.</text> </paragraph></subsection></section><section id="HD2E09713DABD444589D5B24D6C1DDB1A"><enum>205.</enum><header>FinCEN study on BSA value</header> <subsection id="H964DCB8566C749339D0F85CB333A7598"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Director of the Financial Crimes Enforcement Network shall carry out a study on Bank Secrecy Act value.</text> </subsection><subsection id="H3E5C76D819DD48298CC56C384BEE606D"><enum>(b)</enum><header>Report</header><text>Not later than the end of the 1-year period beginning on the date of enactment of this Act, the Director shall issue a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under this section.</text> </subsection><subsection display-inline="no-display-inline" id="H0DCDEE3AF3F14194B79D53F3DE67ED7F"><enum>(c)</enum><header>Classified annex</header><text display-inline="yes-display-inline">The report required under this section may include a classified annex, if the Director determines it appropriate.</text> </subsection><subsection id="H1EF9DE67CDFE4F29853489CCAE036DE5"><enum>(d)</enum><header>Bank Secrecy Act defined</header><text>For purposes of this section, the term <term>Bank Secrecy Act</term> has the meaning given that term under section 5312 of title 31, United States Code.</text> </subsection></section><section id="H973E7EF02459434891E80F4C24A0511C"><enum>206.</enum><header>Section 314(<enum-in-header>a</enum-in-header>) improvements</header> <text display-inline="no-display-inline">Section 314(a) of the USA PATRIOT Act (<external-xref legal-doc="usc" parsable-cite="usc/31/5311">31 U.S.C. 5311</external-xref> note), as amended by section 109, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H0175259158C5478D8877B7EDC263715E" style="OLC"> <paragraph id="H8AB70FB5E2A44948A4A80307F1DE0AF9"><enum>(7)</enum><header>Point of contact list</header> <subparagraph id="H1C184C0524DD4A5289EB93A002DCB0ED"><enum>(A)</enum><header>In general</header><text>The Secretary shall maintain a list containing contact information for with respect to a law enforcement agency, those individuals who serve as points of contact for a Suspicious Activity Report review committee.</text> </subparagraph><subparagraph id="HBEAB6E7BBA894FC0AD66F15CBEBC7F7F"><enum>(B)</enum><header>Availability of list</header><text>The Secretary shall make the list of contact information described under subparagraph (A) available to all financial institutions and law enforcement agencies.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H8465314666254FE1B54238D59AD16F32"><enum>207.</enum><header>Sharing of threat pattern and trend information</header><text display-inline="no-display-inline">Section 314(a) of the USA PATRIOT Act (<external-xref legal-doc="usc" parsable-cite="usc/31/5311">31 U.S.C. 5311</external-xref> note), as amended by section 206, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H046ECD7638E74A249914D6CE3F103EEB" style="OLC"> <paragraph id="H0380AFD014174ED18C36408C9407F5D4"><enum>(8)</enum><header>Sharing of threat pattern and trend information</header> <subparagraph id="H03FEBC84F57146A297DC18206DE0B478"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Not less than monthly, the Secretary shall provide financial institutions with typologies on emerging money laundering and counter terror financing threat patterns and trends.</text> </subparagraph><subparagraph id="H63466017E3D04637AC8AC8738E85CB6B"><enum>(B)</enum><header>Information classification</header><text display-inline="yes-display-inline">In providing information pursuant to subparagraph (A), the Secretary may provide public and sensitive information to financial institutions, but may not provide classified information, unless otherwise permitted by law.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H7EC94594F2DA4FBA87479BB067980652"><enum>208.</enum><header>Modernization and upgrading whistleblower protections</header> <subsection commented="no" id="HA59AFDDE9F4D4A1D94B89D261F0B1418"><enum>(a)</enum><header>Rewards</header><text display-inline="yes-display-inline">Section 5323(d) of title 31, United States Code, is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="HD44449C6D83843E5AE19B6C590FC83DD" style="USC"> <subsection commented="no" id="H20E576138F8144928148364FEF83FDB9"><enum>(d)</enum><header>Source of rewards</header><text display-inline="yes-display-inline">For the purposes of paying an award under this section, there are authorized to be appropriated such sums as may be necessary, and the Secretary may also use funds from the Department of the Treasury Forfeiture Fund and the Department of Justice Assets Forfeiture Fund.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H145F66DFF6284DB1BF9F11E741902517"><enum>(b)</enum><header>Whistleblower incentives</header><text display-inline="no-display-inline"><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/53">Chapter 53</external-xref> of title 31, United States Code, is amended—</text> <paragraph id="H614BBD7EC1F54730AE042CA1E3428F27"><enum>(1)</enum><text>by inserting after section 5323 the following:</text> <quoted-block display-inline="no-display-inline" id="H32B5DB7428074B16A3750E7470F5CD29" style="USC"> <section id="H37DC194A071B4AE59924B720F29EADA6"><enum>5323A.</enum><header>Whistleblower incentives</header> <subsection id="HDC442218BDFC4275BA4A3DF6B942AF8F"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text> <paragraph id="HE2CE5DBECB874FECAB648814BAFE4248"><enum>(1)</enum><header>Covered judicial or administrative action</header><text>The term <term>covered judicial or administrative action</term> means any judicial or administrative action brought by FinCEN under the Bank Secrecy Act that results in monetary sanctions exceeding $1,000,000.</text> </paragraph><paragraph id="H3B3788F5D68743C8B7E8DD4497BE84CB"><enum>(2)</enum><header>FinCEN</header><text>The term <term>FinCEN</term> means the Financial Crimes Enforcement Network.</text> </paragraph><paragraph id="H0892184EEC6E473F93F4F7D999F44FE9"><enum>(3)</enum><header>Monetary sanctions</header><text>The term <term>monetary sanctions</term>, when used with respect to any judicial or administrative action, means—</text> <subparagraph id="HEE316D79D5BA466C98F816E283EA5DC2"><enum>(A)</enum><text>any monies, including penalties, disgorgement, and interest, ordered to be paid; and</text> </subparagraph><subparagraph id="HAC9FF6F3B16B4267A78EC1598DCA089C"><enum>(B)</enum><text>any monies deposited into a disgorgement fund as a result of such action or any settlement of such action.</text> </subparagraph></paragraph><paragraph id="H15C5D383E32E4523AB0C1A5E23179D91"><enum>(4)</enum><header>Original information</header><text>The term <term>original information</term> means information that—</text> <subparagraph id="HC5AFF8DC31334FA6AFD597E226F39524"><enum>(A)</enum><text>is derived from the independent knowledge or analysis of a whistleblower;</text> </subparagraph><subparagraph id="H850472BE26814D109D1D885E2716B9E4"><enum>(B)</enum><text>is not known to FinCEN from any other source, unless the whistleblower is the original source of the information; and</text> </subparagraph><subparagraph id="H658EED986B64477EAA2D14268B86C9AB"><enum>(C)</enum><text>is not exclusively derived from an allegation made in a judicial or administrative hearing, in a governmental report, hearing, audit, or investigation, or from the news media, unless the whistleblower is a source of the information.</text> </subparagraph></paragraph><paragraph id="H62E74F13943B4D1ABF1502FB6C92182C"><enum>(5)</enum><header>Related action</header><text>The term <term>related action</term>, when used with respect to any judicial or administrative action brought by FinCEN, means any judicial or administrative action that is based upon original information provided by a whistleblower that led to the successful enforcement of the action.</text> </paragraph><paragraph id="H291FF0408DD44A799E9301F4ACCD6B1B"><enum>(6)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of the Treasury.</text> </paragraph><paragraph id="HAD5D0761A707417998E39733545A3D35"><enum>(7)</enum><header>Whistleblower</header><text>The term <term>whistleblower</term> means any individual who provides, or 2 or more individuals acting jointly who provide, information relating to a violation of laws enforced by FinCEN, in a manner established, by rule or regulation, by FinCEN.</text> </paragraph></subsection><subsection id="H0A49966B14FC46DDB506C1C50056B106"><enum>(b)</enum><header>Awards</header> <paragraph id="HA750BA253011427A98DF208A3753BE0C"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In any covered judicial or administrative action, or related action, the Secretary, under such rules as the Secretary may issue and subject to subsection (c), shall pay an award or awards to 1 or more whistleblowers who voluntarily provided original information to FinCEN that led to the successful enforcement of the covered judicial or administrative action, or related action, in an aggregate amount equal to—</text> <subparagraph id="HA1405B6D09DD43E2B38C1F3FEB0BEFA6"><enum>(A)</enum><text>not less than 10 percent, in total, of what has been collected of the monetary sanctions imposed in the action or related actions; and</text> </subparagraph><subparagraph id="HBE9E8A51623F44A3A311B9F83CECF857"><enum>(B)</enum><text>not more than 30 percent, in total, of what has been collected of the monetary sanctions imposed in the action or related actions.</text> </subparagraph></paragraph><paragraph id="H65F862ED27114B9991C9729075B43DB4"><enum>(2)</enum><header>Source of awards</header><text display-inline="yes-display-inline">For the purposes of paying any award under paragraph (1) there are authorized to be appropriated such sums as may be necessary, and the Secretary may also use funds from the Department of the Treasury Forfeiture Fund and the Department of Justice Assets Forfeiture Fund.</text> </paragraph></subsection><subsection id="HB169BA77C03A4884B9F2744353AC2417"><enum>(c)</enum><header>Determination of amount of award; denial of award</header> <paragraph id="H4EFA8AF19E5D4F31AF1C13517B00B862"><enum>(1)</enum><header>Determination of amount of award</header> <subparagraph id="HDC94C9310C894FB390A91E72EA702A50"><enum>(A)</enum><header>Discretion</header><text display-inline="yes-display-inline">The determination of the amount of an award made under subsection (b) shall be in the discretion of the Secretary.</text> </subparagraph><subparagraph id="H15F9E4D7D18243E4B8B83362546A4753"><enum>(B)</enum><header>Criteria</header><text>In responding to a disclosure and determining the amount of an award made, FinCEN staff shall meet with the whistleblower to discuss evidence disclosed and rebuttals to the disclosure, and—</text> <clause id="HC41CCA74F71148D6B89B06DB35560661"><enum>(i)</enum><text>shall take into consideration—</text> <subclause id="H6F4B26407561464AA4EC8F075F68B98E"><enum>(I)</enum><text>the significance of the information provided by the whistleblower to the success of the covered judicial or administrative action;</text> </subclause><subclause id="HFAB495708DE54CE9A27C9FCA398EC56B"><enum>(II)</enum><text>the degree of assistance provided by the whistleblower and any legal representative of the whistleblower in a covered judicial or administrative action;</text> </subclause><subclause id="H0973F8475B0D498290EF8532AF48A653"><enum>(III)</enum><text>the mission of FinCEN in deterring violations of the law by making awards to whistleblowers who provide information that lead to the successful enforcement of such laws; and</text> </subclause><subclause id="H2F46F9EB9F9949CB9DBAD9B72E1F2B54"><enum>(IV)</enum><text display-inline="yes-display-inline">such additional relevant factors as the Secretary may establish by rule; and</text> </subclause></clause><clause id="HF42CAB7D29A84205BF9FEBFBCCC46A8D"><enum>(ii)</enum><text display-inline="yes-display-inline">shall not take into consideration the balance of any fund described under section 5323(d).</text> </clause></subparagraph></paragraph><paragraph id="H405E35BC2E614E20A35D5DB99F1A3580"><enum>(2)</enum><header>Denial of award</header><text>No award under subsection (b) shall be made—</text> <subparagraph id="HEBFDCA9367E34E4A8B175DE877FEF1C7"><enum>(A)</enum><text>to any whistleblower who is, or was at the time the whistleblower acquired the original information submitted to FinCEN, a member, officer, or employee of—</text> <clause id="H9CDBC6270DF34277B82CBB0E25F4B95E"><enum>(i)</enum><text>an appropriate regulatory agency;</text> </clause><clause id="H7D857EF830BA45339EE54B0D99F2C030"><enum>(ii)</enum><text>the Department of Justice;</text> </clause><clause id="H500F82C3F7A149DF8B45564CFFA422F6"><enum>(iii)</enum><text>a self-regulatory organization; or</text> </clause><clause id="H91C4441A755F46B187775B36D538F6E4"><enum>(iv)</enum><text>a law enforcement organization;</text> </clause></subparagraph><subparagraph id="H2A4124C9D1D64D0AA2218A2600E20455"><enum>(B)</enum><text>to any whistleblower who is convicted of a criminal violation related to the judicial or administrative action for which the whistleblower otherwise could receive an award under this section;</text> </subparagraph><subparagraph id="HEDBF1D6D81DB4FB683E1099E4C071E2D"><enum>(C)</enum><text display-inline="yes-display-inline">to any whistleblower who gains the information through the performance of an audit of financial statements required under the Bank Secrecy Act and for whom such submission would be contrary to its requirements; or</text> </subparagraph><subparagraph id="H05A188FA38BB425D9E802EEC9CC8B530"><enum>(D)</enum><text display-inline="yes-display-inline">to any whistleblower who fails to submit information to FinCEN in such form as the Secretary may, by rule, require.</text> </subparagraph></paragraph><paragraph id="HB3BAE011ABC54F0F9C3A5A490E6997B9"><enum>(3)</enum><header>Statement of reasons</header><text display-inline="yes-display-inline">For any decision granting or denying an award, the Secretary shall provide to the whistleblower a statement of reasons that includes findings of fact and conclusions of law for all material issues.</text> </paragraph></subsection><subsection id="H6C32F57D72EF4A8F8670DAFC46492C5E"><enum>(d)</enum><header>Representation</header> <paragraph id="H2D30ED1EC60341EAB40447F92B30472E"><enum>(1)</enum><header>Permitted representation</header><text>Any whistleblower who makes a claim for an award under subsection (b) may be represented by counsel.</text> </paragraph><paragraph id="HE4C4EF114184434E89CAB55708492F77"><enum>(2)</enum><header>Required representation</header> <subparagraph id="H0F55206F8D3E494393503399292F98F2"><enum>(A)</enum><header>In general</header><text>Any whistleblower who anonymously makes a claim for an award under subsection (b) shall be represented by counsel if the whistleblower anonymously submits the information upon which the claim is based.</text> </subparagraph><subparagraph id="H2EEFE1A0BA90445E92DE5125D0F3B934"><enum>(B)</enum><header>Disclosure of identity</header><text display-inline="yes-display-inline">Prior to the payment of an award, a whistleblower shall disclose their identity and provide such other information as the Secretary may require, directly or through counsel for the whistleblower.</text> </subparagraph></paragraph></subsection><subsection id="H55F1E800664047CBA7AA293D75544845"><enum>(e)</enum><header>Appeals</header><text display-inline="yes-display-inline">Any determination made under this section, including whether, to whom, or in what amount to make awards, shall be in the discretion of the Secretary. Any such determination, except the determination of the amount of an award if the award was made in accordance with subsection (b), may be appealed to the appropriate court of appeals of the United States not more than 30 days after the determination is issued by the Secretary. The court shall review the determination made by the Secretary in accordance with section 706 of title 5.</text></subsection></section><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="H2BFA4FA3B8184D9D8D9600D96FE81A06"><enum>(2)</enum><text display-inline="yes-display-inline">in the table of contents for such chapter, by inserting after the item relating to section 5323 the following new item:</text> <quoted-block display-inline="no-display-inline" id="H6AF2D08B978E4EEAB2FD1B91C04FED64" style="USC"> <toc regeneration="no-regeneration"> <toc-entry level="section">5323A. Whistleblower incentives.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="H74AFB1B97CD244F48928E0DBA2BBF484"><enum>209.</enum><header>Certain violators barred from serving on public company boards</header><text display-inline="no-display-inline">Section 5321 of title 31, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HFDC985FDF4504DE89A85CD4983C9E254" style="USC"> <subsection id="H5FE129DC45C1485EBF9C4859FA270244"><enum>(f)</enum><header>Certain violators barred from serving on public company boards</header> <paragraph id="H193CFC42C1AF4ADFB1776BE1DFDD97ED"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">An individual found to have committed an egregious violation of a provision of (or rule issued under) this subchapter, section 21 of the Federal Deposit Insurance Act, or section 123 of <external-xref legal-doc="public-law" parsable-cite="pl/91/508">Public Law 91–508</external-xref> shall be barred from serving on the board of directors of a public company for a 10-year period beginning on the date of such finding.</text> </paragraph><paragraph id="HD384E39EAEE948C5BD07286D1C6F8EFA"><enum>(2)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph id="H7F982D1C6900405E96FA352FDF9550BF"><enum>(A)</enum><header>Egregious violation</header><text>With respect to an individual, the term <term>egregious violation</term> means—</text> <clause id="H6E1B649231704FF2947045B80CE24867"><enum>(i)</enum><text>a felony criminal violation for which the individual was convicted; and</text> </clause><clause id="HCCD30DCA922547B1A01041ABBA4471E9"><enum>(ii)</enum><text>a civil violation where the individual knowingly committed such violation and the violation facilitated money laundering or the financing of terrorism.</text> </clause></subparagraph><subparagraph id="HA81CD5CC44304E7795913A5453F8FD04"><enum>(B)</enum><header>Public company</header><text display-inline="yes-display-inline">The term <term>public company</term> means an issuer the securities of which are traded on a national securities exchange.</text> </subparagraph><subparagraph id="H3D4C5E3A441F4E76B27BF49CF680D026"><enum>(C)</enum><header>Other securities terms</header><text>The terms <term>issuer</term> and <term>national securities exchange</term> have the meaning given those terms, respectively, under section 3 of the Securities Exchange Act of 1934.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H34CEFF8D5CD94BC1A56BB72A4072E069"><enum>210.</enum><header>Additional damages for repeat Bank Secrecy Act violators</header><text display-inline="no-display-inline">Section 5321 of title 31, United States Code, as amended by section 209, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HF1373CFCE99E4DF4B812AB8C3978EA6D" style="USC"> <subsection id="HE9F72CD2350F427C9614756D29823406"><enum>(g)</enum><header>Additional damages for repeat violators</header><text display-inline="yes-display-inline">In addition to any other fines permitted by this section and section 5322, with respect to a person who has previously violated a provision of (or rule issued under) this subchapter, section 21 of the Federal Deposit Insurance Act, or section 123 of <external-xref legal-doc="public-law" parsable-cite="pl/91/508">Public Law 91–508</external-xref>, the Secretary may impose an additional civil penalty against such person for each additional such violation in an amount equal to up to three times the profit gained or loss avoided by such person as a result of the violation.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H0C64051209E94019A8AC15DC80128D82"><enum>211.</enum><header>Justice annual report on deferred and nonprosecution agreements</header> <subsection id="H24D7C0F577E94DFBA2BE772CCBBFEE74"><enum>(a)</enum><header>Annual report</header><text display-inline="yes-display-inline">The Attorney General shall issue an annual report, every year for the five years beginning on the date of enactment of this Act, to the Committees on Financial Services and the Judiciary of the House of Representatives and the Committees on Banking, Housing, and Urban Affairs and the Judiciary of the Senate containing—</text> <paragraph id="H319B49B076584C218A9791073B633FE5"><enum>(1)</enum><text>a list of deferred prosecution agreements and nonprosecution agreements that the Attorney General has entered into during the previous year with any person with respect to a violation or suspected violation of the Bank Secrecy Act;</text> </paragraph><paragraph id="HF7B09E8674C14935975418BF6B0CA2CA"><enum>(2)</enum><text display-inline="yes-display-inline">the justification for entering into each such agreement;</text> </paragraph><paragraph id="H9E4EE3B86D834CEB9AFD0E39E179192A"><enum>(3)</enum><text>the list of factors that were taken into account in determining that the Attorney General should enter into each such agreement; and</text> </paragraph><paragraph id="H805495C9363C48EA9805903310AA85C6"><enum>(4)</enum><text display-inline="yes-display-inline">the extent of coordination the Attorney General conducted with the Financial Crimes Enforcement Network prior to entering into each such agreement.</text> </paragraph></subsection><subsection id="HF741D09F3F244372BAF4B30FD91B8F5D"><enum>(b)</enum><header>Classified annex</header><text>Each report under subsection (a) may include a classified annex.</text> </subsection><subsection id="H332CF2A042F5453582C508A284C69546"><enum>(c)</enum><header>Bank Secrecy Act defined</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>Bank Secrecy Act</term> has the meaning given that term under section 5312 of title 31, United States Code.</text> </subsection></section><section id="HDB78836F8601445490D3C793DCAD9DEA"><enum>212.</enum><header>Return of profits and bonuses</header><text display-inline="no-display-inline">Section 5322 of title 31, United States Code, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HBF5A3DBFC80B444EAF76867009F24444" style="USC"> <subsection id="H502EA480754C459AB1F1FE6440933C8D"><enum>(e)</enum><header>Return of profits and bonuses</header><text display-inline="yes-display-inline">A person convicted of violating a provision of (or rule issued under) this subchapter, section 21 of the Federal Deposit Insurance Act, or section 123 of <external-xref legal-doc="public-law" parsable-cite="pl/91/508">Public Law 91–508</external-xref> shall—</text> <paragraph id="HB0112E8B05DC422B80B03F169A36776C"><enum>(1)</enum><text>in addition to any other fine under this section, be fined in an amount equal to the profit gained by such person by reason of such violation, as determined by the court; and</text> </paragraph><paragraph id="HD01CA614251E4DE0B3491AFE3F889DC2"><enum>(2)</enum><text display-inline="yes-display-inline">if such person is an individual who was a partner, director, officer, or employee of a domestic financial institution or nonfinancial trade or business at the time the violation occurred, repay to such domestic financial institution or nonfinancial trade or business any bonus paid to such individual during the Federal fiscal year in which the violation occurred.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H0E745F9E6B0340DA9CA164248B46AC35"><enum>213.</enum><header>Prohibition on tax deductions for attorney’s fees related to Bank Secrecy Act settlements and court costs</header> <text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/162">Section 162(f)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H466521E3897346BAB4A33EF40B93D2B5" style="OLC"> <paragraph id="H35EBB6622A694823B9C1CFFBB62D61DC"><enum>(6)</enum><header>Violations of the Bank Secrecy Act</header><text display-inline="yes-display-inline">In the case of a payment described in paragraph (1) that is in relation to any violation of the Bank Secrecy Act (as defined under section 5312 of title 31, United States Code), no deduction shall be allowed under this chapter for attorney’s fees related to such payment.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="HC59E3A2933304345B00F813A9C21D8C6"><enum>214.</enum><header>Application of Bank Secrecy Act to dealers in art or antiquities</header> <subsection id="H706C2A54502A4D4A9186355BA3A49795"><enum>(a)</enum><header>In general</header><text>Section 5312(a)(2) of title 31, United States Code, is amended—</text> <paragraph id="H91347D4EB7454A5BB0319183E0A55904"><enum>(1)</enum><text>in subparagraph (Y), by striking <quote>or</quote> at the end;</text> </paragraph><paragraph id="H0AA01E1C46D94C79B15D24E7456B0394"><enum>(2)</enum><text>by redesignating subparagraph (Z) as subparagraph (AA); and</text> </paragraph><paragraph id="HD4435EC2690446C986E6477C20F4794D"><enum>(3)</enum><text>by inserting after subsection (Y) the following:</text> <quoted-block id="H6C2F684A8A2743D39CF99FA91712D0F4" style="OLC"> <subparagraph id="H4877147CF77241C2A593959069E97DCC"><enum>(Z)</enum><text>dealers in art or antiquities; or</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="HF40986DCB81340CD848EDC01347BBA73"><enum>(b)</enum><header>Rulemaking</header><text>Not later than the end of the 180-day period beginning on the date of the enactment of this Act, the Secretary of the Treasury shall issue regulations to carry out the amendments made by subsection (a).</text> </subsection><subsection id="H2DF0E93D1EAE484D9FCC863426F80AF9"><enum>(c)</enum><header>Effective date</header><text>Section 5312(a)(2)(Z) of title 31, United States Code, as added by subsection (a), shall take effect after the end of the 270-day period beginning on the date of the enactment of this Act.</text> </subsection></section><section display-inline="no-display-inline" id="H5E6AEE3291794CCFA0265882F845A4E7" section-type="subsequent-section"><enum>215.</enum><header>Revision to geographic targeting order</header><text display-inline="no-display-inline">The Secretary of the Treasury shall revise the geographic targeting order issued by the Financial Crimes Enforcement Network on November 15, 2018 (the <quote>Order</quote>), so that the Order—</text> <paragraph id="HF881917CE8384929B66153311960AC8E"><enum>(1)</enum><text>applies to commercial real estate to the same extent as the Order applies to residential real estate; and</text> </paragraph><paragraph id="H6A58952534F44BC1A240DC07D4583B7E"><enum>(2)</enum><text display-inline="yes-display-inline">applies to a purchase made, at least in part, using an in-kind transaction to the same extent as the Order applies to a purchase made, at least in part, using currency or a cashier’s check, a certified check, a traveler’s check, a personal check, a business check, a money order in any form, a funds transfer, or virtual currency.</text> </paragraph></section><enum>III</enum><header>Modernizing the AML System</header> <section id="H1D28F62E38C242C8B046D2F664324505"><enum>301.</enum><header>Encouraging innovation in BSA compliance</header><text display-inline="no-display-inline">Section 5318 of title 31, United States Code, as amended by section 203, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H2F2A4402E089422491F885486E24464A" style="USC"> <subsection id="HA13F73C48CE54209A21F2A3395098AE1"><enum>(p)</enum><header>Encouraging innovation in compliance</header> <paragraph id="H647F04FC64B14358B46581F6C4E2065B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The financial agencies shall encourage financial institutions to consider, evaluate, and, where appropriate, responsibly implement innovative approaches to meet the requirements of this subchapter, including through the use of innovation pilot programs.</text> </paragraph><paragraph id="H4666CF5E2D6F409E99A169A590B87C84"><enum>(2)</enum><header>Exemptive relief</header><text display-inline="yes-display-inline">The Secretary, pursuant to subsection (a), may provide exemptions from the requirements of this subchapter if the Secretary determines such exemptions are necessary to facilitate the testing and potential use of new technologies and other innovations.</text> </paragraph><paragraph id="H370CAAB63E664AB39136D63689192166"><enum>(3)</enum><header>Financial agency defined</header><text display-inline="yes-display-inline">In this subsection, the term <term>financial agency</term> means the Department of the Treasury, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="H9FAE52B845ED4EABB7A2240074CBAC5D"><enum>302.</enum><header>Innovation Labs</header> <subsection id="HFB0B5028EBB443AB971DE6138A26808D"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Title 31, United States Code, is amended by inserting after section 5326 the following:</text> <quoted-block display-inline="no-display-inline" id="HECB54366F8424881AF4F1079757E6042" style="USC"> <section id="H527C02BFD04643FDB67D3D45862BCCF7"><enum>5327.</enum><header>Innovation Labs</header> <subsection id="H1FA202EA48C642E288632113292B32B5"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is established within each financial agency an Innovation Lab.</text> </subsection><subsection id="H04E319A1F4844540A947EC02CDB54A3E"><enum>(b)</enum><header>Director</header><text>The head of each Innovation Lab shall be a Director, to be appointed by the head of the applicable financial agency.</text> </subsection><subsection id="HE28CB8BCF4714E328E94AAF4F265246F"><enum>(c)</enum><header>Duties</header><text>The duties of the Innovation Lab shall be—</text> <paragraph id="H48CB8A0CC5E44D22BDCC0A89F245391C"><enum>(1)</enum><text>to provide outreach to law enforcement agencies, financial institutions, and other persons (including vendors and technology companies) with respect to innovation and new technologies used to comply with the requirements of the Bank Secrecy Act; and</text> </paragraph><paragraph id="H03B32BEE38264466BCDDF62939BF76B6"><enum>(2)</enum><text display-inline="yes-display-inline">to support the implementation of responsible innovation and new technology, in a manner that complies with the requirements of the Bank Secrecy Act.</text> </paragraph></subsection><subsection id="H4EF4017CFFF24C98A31F145AAA954B4C"><enum>(d)</enum><header>FinCEN lab</header><text display-inline="yes-display-inline">The Innovation Lab established under subsection (a) within the Department of the Treasury shall be a lab within the Financial Crimes Enforcement Network.</text> </subsection><subsection display-inline="no-display-inline" id="H85FA231393854B75B9981DE440FB5E74"><enum>(e)</enum><header>Financial agency defined</header><text display-inline="yes-display-inline">In this section, the term <term>financial agency</term> means the Department of the Treasury, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H97ECD108E8B040EB95CAAF9A2F0A0633"><enum>(b)</enum><header>Clerical amendment</header><text>The table of contents for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/53">chapter 53</external-xref> of title 31, United States Code, is amended by inserting after the item relating to <external-xref legal-doc="usc" parsable-cite="usc/31/5326">section 5326</external-xref> the following:</text> <quoted-block display-inline="no-display-inline" id="H99B818938E40483DBF277D12F7FAF06F" style="USC"> <toc regeneration="no-regeneration"> <toc-entry level="section">5327. Innovation Labs.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="HCA3A43A63D13497384B2ED27441E8855"><enum>303.</enum><header>Innovation Council</header> <subsection id="HEF900063925E4CA5B53B4635FEC7CA1C"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is established the Innovation Council (hereinafter in this section referred to as the <quote>Council</quote>), which shall consist of each Director of an Innovation Lab established under section 302 and the Director of the Financial Crimes Enforcement Network.</text> </subsection><subsection commented="no" id="H39D4D2A5979F48E39DBCA47A6BDE9927"><enum>(b)</enum><header>Chair</header><text>The Director of the Innovation Lab of the Department of the Treasury shall serve as the Chair of the Council.</text> </subsection><subsection id="H2F034392BD2841449D078547C00CDC85"><enum>(c)</enum><header>Duty</header><text display-inline="yes-display-inline">The members of the Council shall coordinate on activities related to innovation under the Bank Secrecy Act (as defined under section 5312 of title 31, United States Code).</text> </subsection><subsection id="H25BAD82D59AC4E4AB3DA4DA94A829B6E"><enum>(d)</enum><header>Meetings</header><text display-inline="yes-display-inline">The meetings of the Council—</text> <paragraph id="H9D1B7BAE44584AA2A9166288C43098DA"><enum>(1)</enum><text>shall be at the call of the Chair, but in no case may the Council meet less than quarterly;</text> </paragraph><paragraph id="H02807DA8F83743A1B0928390389A0AAC"><enum>(2)</enum><text>may include open and closed sessions, as determined necessary by the Council; and</text> </paragraph><paragraph id="H467AC4938CB5490EAC9105D7EB3544DE"><enum>(3)</enum><text>may include participation by public and private entities and law enforcement agencies.</text> </paragraph></subsection><subsection id="HB04B9F64DB0B40C2BDAD25BA9B1A2E39"><enum>(e)</enum><header>Report</header><text>The Council shall issue an annual report to Congress on the activities of the Council during the previous year and any legislative recommendations that the Council may have.</text> </subsection></section><section id="H5A0E172303514F2D8FA257E4A7F0B06C"><enum>304.</enum><header>Parallel runs rulemaking</header><text display-inline="no-display-inline">Section 5318 of title 31, United States Code, as amended by section 301, is further amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="HDF17CDC78A8F459A9037175E22F1C23C" style="USC"> <subsection id="H3C257F28C2CB429E9FCA04365096B03E"><enum>(q)</enum><header>Parallel runs rulemaking</header><text display-inline="yes-display-inline">The Secretary of the Treasury, in consultation with the Director of the Financial Crimes Enforcement Network and the head of each agency to which the Secretary has delegated duties or powers under subsection (a), shall issue a rule to specify—</text> <paragraph id="H2563E2B1944C430D8A519923FD0D1D07"><enum>(1)</enum><text>with respect to technology and processes designed to facilitate compliance with the Bank Secrecy Act requirements, under what circumstances it is necessary for a financial institution to test new technology and processes alongside legacy technology and processes (<quote>parallel runs</quote>);</text> </paragraph><paragraph id="H5BF317D49EF044999F975D2885F4E710"><enum>(2)</enum><text>if parallel runs are required, what tests must be completed; and</text> </paragraph><paragraph id="H86E9C29674F64F90A27E2D2096F8612D"><enum>(3)</enum><text>in what instances or under what circumstances a financial institution may replace or terminate such legacy technology and processes for any examinable technology or process.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </section>