[Congressional Record Volume 165, Number 43 (Monday, March 11, 2019)]
[House]
[Pages H2621-H2623]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     FINCEN IMPROVEMENT ACT OF 2019

  Ms. WATERS. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1414) 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. 1414

       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 
     2019''.

     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

[[Page H2622]]

     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 gentlewoman from 
California (Ms. Waters) and the gentleman from Missouri (Mr. 
Luetkemeyer) each will control 20 minutes.
  The Chair recognizes the gentlewoman from California.


                             General Leave

  Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on this legislation and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from California?
  There was no objection.
  Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the FinCEN Improvement Act is a bill that will 
strengthen the Financial Crimes Enforcement Network, FinCEN, our 
national security, and our financial system. A form of this bipartisan 
bill was introduced last year with the exact same language, and it 
unanimously passed the House on suspension by voice vote.
  Currently, FinCEN works with Federal, State, local, and foreign law 
enforcement authorities in its anti-money laundering/counter terror 
financing objectives. Although Tribal law enforcement is a strong 
partner in fighting crime and safeguarding our country's national 
security, they are not yet listed in the FinCEN statute alongside their 
law enforcement partners.
  Though FinCEN voluntarily works with Tribal law enforcement in these 
objectives, this legislation will make FinCEN's assistance to Tribal 
law enforcement mandatory. This bill will also amend FinCEN's statute 
to protect against all forms of terrorism. As written, the underlying 
statute only requires the protection against international terrorism.
  While the United States faces a serious threat from foreign terrorist 
organizations, the threat from both homegrown violent extremists and 
domestic terrorists has sharply increased within the past several 
years. Although this type of terrorism has been less discussed in the 
news cycle, these terrorists are equally as dangerous as international 
terrorist organizations, if not more.
  In fact, a survey of 382 law enforcement agencies, conducted with the 
Police Executive Research Forum with funding from the National 
Institute of Justice, found that 74 percent of the law enforcement 
agencies reported antigovernment extremism, such as sovereign citizen 
extremism, as one of the top terrorist threats in their jurisdictions. 
This part of the bill will ensure that a proper focus be paid to all 
forms of terrorism.
  Additionally, this bill will require FinCEN to work with foreign 
financial intelligence units on anti-money laundering and counter 
terror financing initiatives with respect to emerging technologies such 
as cryptocurrencies, which are increasingly used by terrorists and 
transnational criminals.
  As the threat environment has changed with the birth and prominence 
of cryptocurrencies, online marketplaces, and the dark web, FinCEN 
needs to coordinate with and support our international partners that 
share our common anti-money laundering/counter terror financing goals.
  For these reasons, I am proud to support this legislation, and I 
congratulate Congresswoman Wexton and Congressman Riggleman for 
introducing this bill.
  Mr. Speaker, I urge all Members to vote ``yes'' on this important 
legislation, and I reserve the balance of my time.
  Mr. LUETKEMEYER. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise in strong support of H.R. 1414, the FinCEN 
Improvement Act.
  This bipartisan piece of legislation passed the House by a voice vote 
last Congress. I am happy to see that my colleague, Congressman 
Riggleman of Virginia, has joined Congresswoman Wexton in reintroducing 
it this Congress.
  This is the first piece of cosponsored legislation Congressman 
Riggleman had on the floor, and the fact that it focuses on terrorism 
speaks directly to his past service in the Air Force and his continued 
effort to protect the American people from bad actors. Mr. Speaker, I 
thank him and Congresswoman Wexton for leading this fight to protect 
the American people.
  H.R. 1414 outlines how the terror landscape in our post-9/11 world 
has expanded.
  Now, we are tasked with protecting the American people not only from 
traditional threats posed by groups like al-Qaida abroad, but also 
domestic terrorism, where crimes are committed on U.S. soil by both 
foreign and U.S. persons.
  H.R. 1414 mandates that FinCEN focus on all forms of terror, not just 
foreign terror campaigns. This is a commonsense update to the statute 
that would bring added clarity to our antiterrorism laws.
  H.R. 1414 also strengthens FinCEN by ensuring cooperation with Tribal 
law enforcement agencies and the prioritization of virtual currencies.

                              {time}  1630

  Illicit actors have been found to be using virtual currencies because 
of their ability to provide anonymity. Some virtual currencies have 
been shown to frustrate law enforcement's efforts to link transactions 
to people or IP addresses.
  It is for this exact reason that FinCEN needs to be able to allocate 
resources and manpower to investigate and thwart instances of terrorism 
that involve all forms of virtual currencies.
  Mr. Speaker, it is our sworn duty to protect the American people, and 
H.R. 1414 allows FinCEN to adapt its investigative abilities to prevent 
terrorism in our digital age.
  Again, I thank Ms. Wexton and Mr. Riggleman for their leadership, and 
I urge my colleagues to support this bipartisan legislation.
  I reserve the balance of my time.
  Ms. WATERS. Mr. Speaker, I yield 3 minutes to the gentlewoman from 
Virginia (Ms. Wexton).
  Ms. WEXTON. Mr. Speaker, I thank the chairwoman for yielding me the 
time.
  Mr. Speaker, I rise in support of H.R. 1414, the FinCEN Improvement 
Act, bipartisan legislation I introduced with my Financial Services 
Committee colleague and fellow Virginian, Congressman Denver Riggleman.
  This is a practical bill that will help modernize the duties of the 
Financial Crimes Enforcement Network, otherwise known as FinCEN. The 
mission of FinCEN is to safeguard the financial system from crimes or 
illicit use, such as terrorist financing; combat money laundering; and 
promote national security through the collection, analysis, and 
dissemination of financial information and intelligence.
  H.R. 1414 would do three things to further their important mission.
  First is in the area of investigation into terror financing. FinCEN 
is currently authorized to combat international terrorism but fails to 
mention domestic terror activities. While international terror threats 
remain present and relevant, the threat landscape has expanded 
considerably and also includes domestic terror groups that commit 
crimes to further their agendas.
  H.R. 1414 will amend the FinCEN authorizing legislation to clarify 
its role in investigating and combating terror threats, be they foreign 
or domestic. FinCEN is already doing important work to combat domestic 
terrorism, but the bill will clarify its role and correct this 
oversight in the statute.

[[Page H2623]]

  Second, the virtual currency landscape is rapidly evolving and many 
of these technologies did not exist when previous laws and regulations 
were written. H.R. 1414 will help FinCEN combat emerging methods of 
financing illicit activity, including the use of cryptocurrency.
  Finally, the FinCEN Improvement Act builds on existing relationships 
with law enforcement partners by ensuring that FinCEN has the authority 
to work not only with Federal, State, and local law enforcement, but 
also with Tribal law enforcement across the country.
  I am proud to cosponsor this bill, Mr. Speaker, and I urge our 
colleagues to support it.
  Mr. LUETKEMEYER. Mr. Speaker, I yield 3 minutes to the gentleman from 
Virginia (Mr. Riggleman), one of our outstanding freshmen from the 
freshman class of this past fall.
  Mr. RIGGLEMAN. Mr. Speaker, today, I am proud to rise in support as 
the lead Republican sponsor of H.R. 1414, the FinCEN Improvement Act of 
2019.
  I thank my colleague and fellow Member from the Commonwealth of 
Virginia, Representative Jennifer Wexton, for her work on this 
legislation. This bill is a tangible example of what Congress can 
accomplish when we put aside our differences and work together.
  FinCEN, or the Financial Crimes Enforcement Network, is a critical 
component of law enforcement, as the agency is charged with promoting 
national security by safeguarding our financial system.
  Terrorists, drug smugglers, human traffickers, and other criminal 
actors are constantly innovating and creating new ways to exploit the 
system. Bad actors know the current limitations of law enforcement and 
how to profit immensely from our weaknesses as they are constantly 
developing their tactics, techniques, and procedures, or TTPs, based on 
our security posture.
  It is FinCEN's mission to cut the head off the snake and combat 
illicit financing of these activities. This bill will strengthen FinCEN 
in three key areas.
  First, it strengthens FinCEN by codifying the domestic 
responsibilities of combating illicit finance. We know all too well the 
danger international terrorists pose, but it is equally important that 
we police criminal financial activity domestically as well. By 
reinforcing FinCEN's domestic mandate, we are sending a message to all 
Americans that we will not tolerate criminal activity either at home or 
abroad.
  Second, this bill adds Tribal law enforcement to the list of FinCEN 
partners. By ensuring robust and comprehensive law enforcement 
partners, we are equipping the agencies charged with safeguarding our 
financial system with the necessary tools and information to execute 
their mission. Partnering with Tribal law enforcement closes a 
potential loophole that terrorists can use to inject illicit money into 
the system.
  Finally, and perhaps most importantly, this bill clearly incorporates 
cryptocurrencies and other emerging technologies that substitute for 
currency.
  As financial technology, or fintech, evolves, so do the opportunities 
for criminals to take advantage of the financial system. We must ensure 
that our law enforcement agencies have a clear directive from Congress 
to take on all challenges and risks facing our financial system.
  Mr. Speaker, today, I ask all my colleagues in the people's House to 
join me and Ms. Wexton by voting in favor of this legislation.
  Ms. WATERS. Mr. Speaker, I have no further speakers, and I am 
prepared to close. I reserve the balance of my time.
  Mr. LUETKEMEYER. Mr. Speaker, I reiterate my support for H.R. 1414, 
the FinCEN Improvement Act, and I yield back the balance of my time.
  Ms. WATERS. Mr. Speaker, I am pleased that Ms. Wexton and Mr. 
Riggleman have brought this issue to the full House. It addresses key 
gaps in our efforts to fight financial crime, something we all should 
support.
  I urge my colleagues to join me in supporting this important piece of 
legislation, and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from California (Ms. Waters) that the House suspend the 
rules and pass the bill, H.R. 1414.
  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.

                          ____________________