[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.
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