[Congressional Record Volume 165, Number 43 (Monday, March 11, 2019)]
[House]
[Pages H2623-H2625]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     COOPERATE WITH LAW ENFORCEMENT AGENCIES AND WATCH ACT OF 2019

  Ms. WATERS. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 758) to provide a safe harbor for financial institutions 
that maintain a customer account or customer transaction at the request 
of a Federal or State law enforcement agency, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                H.R. 758

       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 ``Cooperate with Law 
     Enforcement Agencies and Watch Act of 2019''.

     SEC. 2. SAFE HARBOR WITH RESPECT TO KEEP OPEN LETTERS.

       (a) In General.--Subchapter II of chapter 53 of title 31, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 5333. Safe harbor with respect to keep open letters

       ``(a) In General.--With respect to a customer account or 
     customer transaction of a financial institution, if a 
     Federal, State, Tribal, or local law enforcement agency 
     requests, in writing, the financial institution to keep such 
     account or transaction open--
       ``(1) the financial institution shall not be liable under 
     this subchapter for maintaining such account or transaction 
     consistent with the parameters of the request; and
       ``(2) no Federal or State department or agency may take any 
     adverse supervisory action under this subchapter with respect 
     to the financial institution for maintaining such account or 
     transaction consistent with the parameters of the request.
       ``(b) Rule of Construction.--Nothing in this section may be 
     construed--
       ``(1) from preventing a Federal or State department or 
     agency from verifying the validity of a written request 
     described under subsection (a) with the Federal, State, 
     Tribal, or local law enforcement agency making the written 
     request; or
       ``(2) to relieve a financial institution from complying 
     with any reporting requirements, including the reporting of 
     suspicious transactions under section 5318(g).
       ``(c) Letter Termination Date.--For purposes of this 
     section, any written request described under subsection (a) 
     shall include a termination date after which such request 
     shall no longer apply.''.
       (b) Clerical Amendment.--The table of contents for chapter 
     53 of title 31, United States Code, is amended by inserting 
     after the item relating to section 5332 the following:

``5333. Safe harbor with respect to keep open letters.''.

     SEC. 3. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the House Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
California (Ms. Waters) and the gentleman from Arkansas (Mr. Hill) 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 
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, H.R. 758 would strengthen cooperation between financial 
institutions and law enforcement agencies to better detect, deter, and 
combat terrorism and financial crimes.
  With respect to the Bank Secrecy Act anti-money laundering, referred 
to as BSA/AML, supervisory actions, this bill would carve out a narrow 
safe harbor for financial institutions to keep a customer's account 
open at the written request of a law enforcement agency, including 
those at the Federal, State, local, and Tribal levels.

[[Page H2624]]

  This cooperation will enable law enforcement agencies to follow the 
money in the bank accounts of terrorists, human traffickers, corrupt 
officials, and those involved with organized crime.
  Of equal importance, the legislation provides an assurance to 
financial institutions, clarifying that they will not be held liable 
for their cooperation and collaboration with law enforcement in helping 
to thwart illicit finance.
  I will note that law enforcement agencies are currently expected to 
provide a written notice to financial institutions, requesting that the 
accounts of bad actors remain open to monitor transactions and build 
stronger criminal cases. However, this practice does not always happen 
and exposes financial institutions to enforcement actions from their 
banking regulators. Banks should not be put in a position to choose 
whether or not to help law enforcement out of concern about regulatory 
consequences.
  We simply cannot allow bad actors to launder money and finance terror 
through our banks. H.R. 758 will encourage financial institutions to 
maintain a strong partnership with law enforcement.
  In the 115th Congress, this bill was unanimously approved by the 
Financial Services Committee. The House passed the bill by a vote of 
379-4.
  I thank the gentleman from Arkansas (Mr. Hill) and the gentleman from 
Illinois (Mr. Foster) for introducing this bipartisan piece of 
legislation. This bill is one example of our committee's efforts to 
fight terrorism, corruption, and financial crime. I urge all Members to 
vote ``yes'' on H.R. 758. I reserve the balance of my time.
  Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, first, let me thank Chairwoman Waters for her work on 
this bill. I am delighted the House is considering this important bill, 
H.R. 758, which I have had the pleasure to work on over the past year 
with my good friend from Illinois, Congressman Foster.
  As a former community banker, I have dealt with the conflict of 
wanting to help law enforcement agencies when receiving a keep open 
letter, but not being able to because of the need to comply with the 
requirements set forth by a regulator, frequently and often in the 
middle of a bank exam.
  Today, the overall purpose of this bill is to support law enforcement 
and reduce money laundering and terrorist financing through our banking 
system. That is why, along with my friend Mr. Foster, I was pleased to 
introduce this, as the chairwoman said, narrow, commonsense bill, which 
enables partnerships without repercussions between law enforcement and 
our local financial institutions.
  This legislation allows law enforcement to monitor cash flows 
associated with criminal investigations at financial institutions. 
Under the Bank Secrecy Act and anti-money laundering regulations, banks 
face strict rules for managing accounts so that they cannot facilitate 
money laundering, terrorism financing, drug running, and other illegal 
activities.
  Sometimes, banks receive notices from law enforcement agencies known 
as keep open letters to encourage them to keep an account open so that 
law enforcement can monitor what they think to be and suspect to be 
criminal activity and track the payments for better monitoring.
  I have heard recently from banks that they are seeing an increase in 
the number of keep open letters, many of which can be attributable to 
new human trafficking investigations. Allowing banks to keep these 
accounts open will help stop these terrible criminal actions.
  Currently, if banks help law enforcement and comply with the keep 
open letter request, they face the risk of being penalized by someone 
from the same regulatory agency. This commonsense bill supports those 
efforts by law enforcement by allowing financial institutions to comply 
with such requests to maintain a suspicious account without being 
penalized in the middle of a bank exam. Under this bill, no Federal 
department or agency may take an adverse supervisory action with 
respect to the financial institution that is keeping the account open.
  As the chairwoman said, last Congress, this legislation unanimously 
passed out of our House Financial Services Committee and passed under 
the suspension of the rules. The legislation was also included as a 
provision last Congress in the JOBS 3.0 package.
  Chairman Waters and former Chairman Hensarling made fighting illicit 
finance a priority for our committee. Given the strong bipartisanship, 
I urge my colleagues on both sides of the aisle to support this 
measure. It will give law enforcement the tools it needs to prosecute 
bad actors who are exploiting our financial system.
  I reserve the balance of my time.
  Ms. WATERS. Mr. Speaker, I yield 3 minutes to the gentleman from 
Illinois (Mr. Foster).

                              {time}  1645

  Mr. FOSTER. Mr. Speaker, I thank Chairwoman Waters for yielding.
  Mr. Speaker, I would like to start by thanking the chairwoman for 
bringing up this bipartisan bill today and for maintaining bipartisan 
momentum in the areas where bipartisan agreement is achievable. 
Chairwoman Waters and her staff were instrumental in passing this bill 
in the last Congress and including it in JOBS 3.0.
  I would also like to thank my friend, Congressman Hill, for working 
on the Cooperate with Law Enforcement Agencies and Watch Act, the CLAW 
Act, with me.
  I am proud to support this bill, which passed with very strong 
bipartisan support in the last Congress, a 55-0 vote in the Financial 
Services Committee, a 379-4 vote on the House floor.
  This bill creates a commonsense safe harbor from Bank Secrecy Act 
liability for a bank that keeps an account open at the request of law 
enforcement. For background, law enforcement agencies sometimes send 
what are called keep open letters to financial institutions so that 
they can obtain critical evidence in investigations by following the 
money.
  While following these law enforcement requests is optional, agreeing 
to them does, in fact, create a technical violation of the Bank Secrecy 
Act. This complicates the decision for a financial institution that 
should be simple. This could, in fact, undermine our efforts to prevent 
illicit finance or money laundering.
  This bill will enhance the ability of the law enforcement community 
to track funds in a criminal investigation, leading to better evidence 
and, hopefully, conviction of criminals higher up in the hierarchy. To 
be clear, nothing in this bill takes away from financial regulators' 
safety and soundness powers, and financial institutions still have to 
file SARs when they have a keep open letter.
  In addition, this bill requires that the keep open letters have a 
definite duration but does not preclude law enforcement from sending 
subsequent letters to extend the period, should the investigation 
continue.
  This bill is a great example of how Democrats and Republicans can 
come together on a number of issues of common interest.
  In a world in which criminals and criminal organizations have access 
to increasingly sophisticated tools and technologies to carry out their 
criminal activities, we should help financial institutions in leveling 
the playing field to bring these criminals to justice.
  This bill follows other commonsense, bipartisan efforts that I have 
supported to modernize our Nation's ability to confront dangerous 
criminals and criminal organizations. I recently introduced with 
Congressman Kustoff the CONFRONT Act, which would require the Treasury 
Department to develop a national strategy to combat the financial 
crimes of transnational criminal organizations and individuals. I am 
hopeful that this bill can also be passed in the near future with 
similarly strong bipartisan support.
  This bill today is an important measure that allows financial 
institutions to effectively assist with combating crimes such as money 
laundering and illicit financing, and I urge my colleagues to support 
this bill.
  Mr. HILL of Arkansas. Mr. Speaker, I have no further speakers on this 
side of the aisle.
  Mr. Speaker, in closing, I would just simply urge, with the work done 
by Mr. Foster and myself, and with thanks to

[[Page H2625]]

the Chair, that we have strong bipartisan support in favor of H.R. 758, 
and I yield back the balance of my time.
  Ms. WATERS. Mr. Speaker, I am pleased that Mr. Hill and Mr. Foster 
have brought this measure to the House on a bipartisan basis. It will 
help provide law enforcement more access to the critical information it 
needs and in a timely manner.
  Mr. Speaker, 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. 758, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Ms. WATERS. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

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