[Congressional Record Volume 164, Number 152 (Wednesday, September 12, 2018)]
[House]
[Pages H8127-H8128]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FINCEN IMPROVEMENT ACT OF 2018
Mr. ROTHFUS. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 6411) to amend the duties of the Financial Crimes
Enforcement Network (FinCEN) to ensure FinCEN works with Tribal law
enforcement agencies, protects against all forms of terrorism, and
focuses on virtual currencies.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 6411
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 ``FinCEN Improvement Act of
2018''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) The mission of the Financial Crimes Enforcement Network
(FinCEN) is to safeguard the financial system from illicit
use and combat money laundering and promote national security
through the collection, analysis, and dissemination of
financial intelligence and strategic use of financial
authorities.
(2) In its mission to safeguard the financial system from
the abuses of financial crime, including terrorist financing,
money laundering and other illicit activity, the United
States should prioritize working with partners in Federal,
State, local, Tribal, and foreign law enforcement
authorities.
(3) The Federal Bureau of Investigation has stated that
since the terror attacks on September 11, 2001, ``The threat
landscape has expanded considerably, though it is important
to note that the more traditional threat posed by al Qaeda
and its affiliates is still present and active. The threat of
domestic terrorism also remains persistent overall, with
actors crossing the line from First Amendment protected
rights to committing crimes to further their political
agenda.''.
(4) Although the use and trading of virtual currencies are
legal practices, some terrorists and criminals, including
international criminal organizations, seek to exploit
vulnerabilities in the global financial system and are
increasingly using emerging payment methods such as virtual
currencies to move illicit funds.
(5) In carrying out its mission, FinCEN should prioritize
all forms of terrorism and emerging methods of terrorism and
illicit finance.
SEC. 3. STRENGTHENING FINCEN.
Section 310 of title 31, United States Code, is amended--
(1) in paragraph (C)--
(A) in clause (i), by striking ``appropriate Federal,
State, local, and foreign law enforcement agencies'' and
inserting ``appropriate Federal, State, local, Tribal, and
foreign law enforcement agencies''; and
(B) in clause (vi), by striking ``to protect against
international terrorism'' and inserting ``to protect against
terrorism'';
(2) in paragraph (E), by striking ``appropriate Federal,
State, local, and foreign law enforcement authorities'' and
inserting ``appropriate Federal, State, local, Tribal, and
foreign law enforcement authorities'';
(3) in paragraph (F), by striking ``Federal, State, local,
and foreign law enforcement'' and inserting ``Federal, State,
local, Tribal, and foreign law enforcement''; and
(4) in paragraph (H), by striking ``anti-terrorism and
anti-money laundering initiatives, and similar efforts'' and
inserting ``anti-terrorism and anti-money laundering
initiatives, including matters involving emerging
technologies or value that substitutes for currency, and
similar efforts''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Pennsylvania (Mr. Rothfus) and the gentleman from Colorado (Mr.
Perlmutter) each will control 20 minutes.
The Chair recognizes the gentleman from Pennsylvania.
General Leave
Mr. ROTHFUS. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on this bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Pennsylvania?
There was no objection.
{time} 1545
Mr. ROTHFUS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the FinCEN Improvement Act was introduced by
Representative Ed Perlmutter, the ranking member of the Subcommittee on
Terrorism and Illicit Finance, and cosponsored by Representative Steve
Pearce, the chairman of this subcommittee.
This would add Tribal law enforcement agencies to those partners with
which the Financial Crimes Enforcement Network already works, which
includes Federal, State, local, and foreign law enforcement agencies.
The bill would clarify that FinCEN should protect against all forms
of terrorism. FinCEN currently supports law enforcement on domestic
issues, not just international, and this legislation would clarify that
current practice. This bill would add an emphasis on emerging
technologies or value that substitutes for currency in order to address
the growing exploitation of digital currencies to move illicit funds.
The financial technology, virtual currency, and electronic payments
landscape is rapidly evolving to include means of storing and
transferring value that didn't exist when previous laws and regulations
were written. This bill emphasizes that FinCEN ought to prioritize
cryptocurrencies to ensure that criminals and terrorists cannot use
these technologies to carry out illicit financial activities.
Mr. Speaker, I reserve the balance of my time.
Mr. PERLMUTTER. Mr. Speaker, I yield myself such time as I may
consume. I thank my friend, Mr. Rothfus, for bringing this bill up
today.
[[Page H8128]]
Mr. Speaker, I rise in favor of legislation I introduced with my
colleague from New Mexico, Steve Pearce. H.R. 6411, the FinCEN
Improvement Act, is a straightforward bill which will modernize the
Financial Crimes Enforcement Network, otherwise known as FinCEN.
The mission of FinCEN is to safeguard the financial system from
crimes or illicit use, combat money laundering, and promote national
security through the collection, analysis, and dissemination of
financial information and intelligence.
In order to accomplish its mission, FinCEN needs to partner with all
available law enforcement agencies to gather and share data needed to
safeguard the financial system from the abuses of financial crime,
including terrorist financing. This legislation builds upon the
existing relationships with partners in foreign, Federal, State, and
local law enforcement officials by ensuring FinCEN has the authority to
work with Tribal law enforcement across the country.
Additionally, FinCEN's current authorizing statute is limited to
combating international terrorism, which leaves out domestic terrorist
activities, which is just as important to protecting our neighborhoods
and communities. This legislation fixes that oversight.
Lastly, this legislation ensures FinCEN is focusing on emerging
methods of financing illicit activity, including cryptocurrencies. As
the ranking Democrat on the Terrorism and Illicit Finance Subcommittee,
along with Chairman Pearce, we have held numerous hearings and meetings
discussing these new technologies. While they often have tremendous
benefit to consumers in connecting the world, the reality is bad actors
can benefit from this new technology by shielding their identities or
the identities of those they work with. We need to work to understand
this potential threat and find new ways to combat it.
This bipartisan piece of legislation is an important step in
modernizing FinCEN to ensure our law enforcement and intelligence
communities work together to detect and stop criminals and terrorist
networks. I want to thank my colleague, Mr. Rothfus, and certainly
subcommittee Chairman Steve Pearce for working with me on this
legislation. I would also like to thank the chairman and ranking member
of the full committee for their support, and lastly, I thank Katy
Strohmaier on the Democratic staff for working with my office to help
us draft this legislation.
With that, I urge all my colleagues to support this legislation. I
urge an ``aye'' vote on H.R. 6411, the FinCEN Improvement Act.
Mr. Speaker, I yield back the balance of my time.
Mr. ROTHFUS. Mr. Speaker, again, I thank my colleague, Mr.
Perlmutter, for his diligent work on this very practical, bipartisan
bill. I urge my colleagues to support its adoption.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Pennsylvania (Mr. Rothfus) that the House suspend the
rules and pass the bill, H.R. 6411.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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