Bank Secrecy Act reforms

(a)

Right to Financial Privacy Act of 1978

The Right to Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.) is amended—(1)by amending section 1102 to read as follows:

1102.

Confidentiality of records—Government authorities

Except as provided by subsection (c) or (d) of section 1103 or section 1113, no Government authority may have access to or obtain copies of, or the information contained in the financial records of any customer from a financial institution unless the financial records are reasonably described and such financial records are disclosed in response to a search warrant which meets the requirements of section 1106.

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(2)by striking sections 1104, 1105, 1107, 1108, and 1114;(3)in section 1109(a), by striking section 1104(c), 1105(2), 1106(c), 1107(2), 1108(4), and inserting section 1106(c); and(4)in section 1113, by striking subsections (c) through (r).(b)

Title 31

Chapter 53 of title 31, United States Code, is amended—(1)by amending section 5311 to read as follows:

5311.

Declaration of purpose

It is the purpose of this subchapter to require financial institutions to retain transaction records that include information identified with or identifiable as being derived from the financial records of particular customers.

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(2)in section 5312(a)—(A)in paragraph (3)—(i)in subparagraph (B), by adding and at the end;(ii)by striking subparagraph (C); and(iii)by redesignating subparagraph (D) as subparagraph (C); and(B)by amending paragraph (4) to read as follows:

(4)nonfinancial trade or business means any entity engaged in trade or business other than a financial institution.

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(3)by striking sections 5313, 5314, 5315, 5316, 5317, 5318A, 5324, 5326, 5331, 5332, and 5336;(4)in section 5318—(A)in subsection (a)—(i)by striking (except under section 5315 of this title and regulations prescribed under section 5315); (ii)by striking paragraph (2); and(iii)by redesignating paragraphs (3) through (7) as paragraphs (2) through (6), respectively;(B)in subsection (k)—(i)in paragraph (1)(C), by striking has the same meaning as in section 5318A(e)(1)(B) and inserting means an account established to receive deposits from, make payments on behalf of a foreign financial institution, or handle other financial transactions related to such institution; and(ii)in paragraph (3)(A)(i)—(I)in subclause (II), by adding or at the end;(II)in subclause (III), by striking ; or and inserting a period; and(III)by striking subclause (IV);(5)in section 5321—(A)in subsection (a)—(i)in paragraph (1), by striking (except sections 5314, 5315, and 5336 of this title or a regulation prescribed under sections 5314, 5315, and 5336);(ii)by striking paragraphs (2), (3), (4), and (5);(iii)in paragraph (6), by striking (except section 5336) each place such term appears; (iv)in paragraph (7), by striking or any special measures imposed under section 5318A; and(v)by redesignating paragraphs (6) and (7) as paragraphs (2) and (3), respectively;(B)by striking subsection (c); and(C)by redesignating subsections (d) through (g) as subsection (c) through (f), respectively;(6)in section 5322—(A)by striking (except section 5315, 5324, or 5336 of this title or a regulation prescribed under section 5315, 5324, or 5336) each place such term appears; and(B)in subsection (d)—(i)by striking , or any special measures imposed under section 5318A,; and(ii)by striking or section 5318A; (7)in section 5325(a), by inserting after $3,000 the following: (as such amount is annually adjusted by the Secretary to reflect the percentage change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor);(8)in section 5330(d)(1)—(A)in subparagraph (A), by adding and at the end;(B)by striking subparagraph (B); and(C)by redesignating subparagraph (C) as subparagraph (B);(9)in section 5335—(A)by striking subsection (c); and(B)by redesignating subsections (d) and (e) as subsections (c) and (d), respectively;(10)by striking subchapter III; and(11)in the table of contents in chapter 53, by striking the items relating to—(A)sections 5313, 5314, 5315, 5316, 5317, 5318A, 5324, 5326, 5331, 5332, and 5336; and(B)subchapter III.