[Congressional Record Volume 166, Number 117 (Thursday, June 25, 2020)]
[Senate]
[Pages S3587-S3608]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2198. Mr. CRAPO (for himself, Mr. Brown, Mr. Cotton, Mr. Warner,
Mr. Rounds, Mr. Jones, Mr. Moran, Mr. Menendez, and Mr. Kennedy)
submitted an amendment intended to be proposed by him to the bill S.
4049, to authorize appropriations for fiscal year 2021 for military
activities of the Department of Defense, for military construction, and
for defense activities of the Department of Energy, to prescribe
military personnel strengths for such fiscal year, and for other
purposes; which was ordered to lie on the table; as follows:
DIVISION E--ANTI-MONEY LAUNDERING
SEC. 5001. SHORT TITLE.
This division may be cited as the ``Anti-Money Laundering
Act of 2020''.
SEC. 5002. PURPOSES.
The purposes of this division are--
(1) to improve coordination among the agencies tasked with
administering anti-money laundering and countering the
financing of terrorism requirements, the agencies that
examine financial institutions for compliance with those
requirements, Federal law enforcement agencies, the
intelligence community, and financial institutions;
(2) to modernize anti-money laundering and countering the
financing of terrorism laws to adapt the government and
private sector response to new and emerging threats;
(3) to encourage technological innovation and the adoption
of new technology by financial institutions to more
effectively counter money laundering and the financing of
terrorism;
(4) to reinforce that the anti-money laundering and
countering the financing of terrorism policies, procedures,
and controls of financial institutions shall be risk based;
(5) to establish uniform beneficial ownership information
reporting requirements to--
(A) improve transparency for national security,
intelligence, and law enforcement agencies concerning
corporate structures and insight into the flow of illicit
funds through those structures;
(B) discourage the use of shell corporations as a tool to
disguise illicit funds;
(C) assist national security, intelligence, and law
enforcement agencies with the pursuit of crimes; and
(D) protect the national security of the United States; and
(6) to establish a secure, nonpublic database at FinCEN for
beneficial ownership information.
SEC. 5003. DEFINITIONS.
In this division:
(1) Bank secrecy act.--The term ``Bank Secrecy Act''
means--
(A) section 21 of the Federal Deposit Insurance Act (12
U.S.C. 1829b);
(B) chapter 2 of title I of Public Law 91-508 (12 U.S.C.
1951 et seq.); and
(C) subchapter II of chapter 53 of title 31, United States
Code.
(2) Electronic fund transfer.--The term ``electronic fund
transfer'' has the meaning given the term in section 903 of
the Electronic Fund Transfer Act (15 U.S.C. 1693a).
(3) Federal functional regulator.--The term ``Federal
functional regulator''--
(A) has the meaning given the term in section 509 of the
Gramm-Leach-Bliley Act (15 U.S.C. 6809); and
(B) includes any Federal regulator that examines a
financial institution for compliance with the Bank Secrecy
Act.
(4) Financial agency.--The term ``financial agency'' has
the meaning given the term in section 5312(a) of title 31,
United States Code, as amended by section 5102 of this
division.
(5) Financial institution.--The term ``financial
institution''--
(A) has the meaning given the term in section 5312 of title
31, United States Code; and
(B) includes--
(i) an electronic fund transfer network;
(ii) a clearing and settlement system;
(iii) a Federal Reserve bank--
(I) operating as an administrator of a clearing and
settlement system; and
(II) acting as a financial agency.
(6) FinCEN.--The term ``FinCEN'' means the Financial Crimes
Enforcement Network of the Department of the Treasury.
(7) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(8) State bank supervisor.--The term ``State bank
supervisor'' has the meaning given the term in section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 1813).
(9) State credit union supervisor.--The term ``State credit
union supervisor'' means a State official described in
section 107A(e) of the Federal Credit Union Act (12 U.S.C.
1757a(e)).
TITLE LI--STRENGTHENING TREASURY FINANCIAL INTELLIGENCE, ANTI-MONEY
LAUNDERING, AND COUNTERING THE FINANCING OF TERRORISM PROGRAMS
SEC. 5101. ESTABLISHMENT OF NATIONAL EXAM AND SUPERVISION
PRIORITIES.
(a) Declaration of Purpose.--Subchapter II of chapter 53 of
title 31, United States Code, is amended by striking section
5311 and inserting the following:
``Sec. 5311. Declaration of purpose
``It is the purpose of this subchapter (except section
5315) to--
``(1) require certain reports or records that are highly
useful in--
``(A) criminal, tax, or regulatory investigations, risk
assessments, or proceedings; or
``(B) intelligence or counterintelligence activities,
including analysis, to protect against terrorism;
``(2) prevent the laundering of money and the financing of
terrorism through the establishment by financial institutions
of reasonably designed risk-based programs to combat money
laundering and the financing of terrorism;
``(3) facilitate the tracking of money that has been
sourced through criminal activity or is intended to promote
criminal or terrorist activity;
``(4) assess the money laundering, terrorism finance, tax
evasion, and fraud risks to financial institutions, products,
or services to--
``(A) protect the financial system of the United States
from criminal abuse; and
``(B) safeguard the national security of the United States;
and
``(5) establish appropriate frameworks for information
sharing among financial institutions, their agents and
service providers, their regulatory authorities, associations
of financial institutions, the Department of the Treasury,
and law enforcement authorities to identify, stop, and
apprehend money launderers and those who finance
terrorists.''.
(b) Anti-money Laundering Programs.--Section 5318 of title
31, United States Code, is amended--
(1) in subsection (a)(1), by striking ``subsection (b)(2)''
and inserting ``subsections (b)(2) and (h)(4)''; and
(2) in subsection (h)--
(A) in paragraph (1), in the matter preceding subparagraph
(A)--
(i) by inserting ``and the financing of terrorism'' after
``money laundering''; and
(ii) by inserting ``and countering the financing of
terrorism'' after ``anti-money laundering'';
(B) in paragraph (2)--
(i) by striking ``The Secretary'' and inserting the
following:
``(A) In general.--The Secretary''; and
(ii) by adding at the end the following:
``(B) Factors.--In prescribing the minimum standards under
subparagraph (A), and in supervising and examining compliance
with those standards, the Secretary of the Treasury, and the
appropriate Federal functional regulator (as defined in
section 509 of the Gramm-Leach-Bliley Act (12 U.S.C. 6809))
shall take into account the following:
``(i) Financial institutions are spending private
compliance funds for a public and private benefit, including
protecting the
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United States financial system from illicit finance risks.
``(ii) The extension of financial services to the
underbanked and remittances coming from the United States and
abroad in ways that simultaneously prevent criminal
underbanked persons from abusing formal or informal financial
services networks are key policy goals of the United States.
``(iii) Effective anti-money laundering and countering the
financing of terrorism programs safeguard national security
and generate significant public benefits by preventing the
flow of illicit funds in the financial system and by
assisting law enforcement agencies with the identification
and prosecution of persons attempting to launder money and
undertake other illicit activity through the financial
system.
``(iv) Anti-money laundering and countering the financing
of terrorism programs described in paragraph (1) should be--
``(I) reasonably designed to assure and monitor compliance
with the requirements of this subchapter and regulations
promulgated under this subchapter; and
``(II) risk based, including ensuring that more attention
and resources of financial institutions should be directed
toward higher risk customers and activities, consistent with
the risk profile of a financial institution, rather than
toward lower risk customers and activities.''; and
(C) by adding at the end the following:
``(4) Priorities.--
``(A) In general.--Not later than 180 days after the date
of enactment of this paragraph, the Secretary of the
Treasury, in consultation with the Attorney General, Federal
functional regulators (as defined in section 509 of the
Gramm-Leach-Bliley Act (15 U.S.C. 6809)), relevant State
financial regulators, national security agencies, and the
Secretary of Homeland Security, shall establish and make
public priorities for anti-money laundering and countering
the financing of terrorism policy.
``(B) Updates.--Not less frequently than once every 4
years, the Secretary of the Treasury, in consultation with
the Attorney General, Federal functional regulators (as
defined in section 509 of the Gramm-Leach-Bliley Act (15
U.S.C. 6809)), relevant State financial regulators, national
security agencies, and the Secretary of Homeland Security,
shall update the priorities established under subparagraph
(A).
``(C) Relation to national strategy.--The Secretary of the
Treasury shall ensure that the priorities established under
subparagraph (A) are consistent with the national strategy
for countering the financing of terrorism and related forms
of illicit finance developed under section 261 of the
Countering Russian Influence in Europe and Eurasia Act of
2017 (Public Law 115-44; 131 Stat. 934).
``(D) Rulemaking.--Not later than 180 days after the date
on which the Secretary of the Treasury establishes the
priorities under subparagraph (A), the Secretary of the
Treasury, acting through the Director of the Financial Crimes
Enforcement Network and in consultation with the Federal
functional regulators (as defined in section 509 of the
Gramm-Leach-Bliley Act (15 U.S.C. 6809)) and relevant State
financial regulators, shall, as appropriate, promulgate
regulations to carry out this paragraph.
``(E) Supervision and examination.--The review by a
financial institution of the priorities established under
subparagraph (A) and the incorporation of those priorities,
as appropriate, into the risk-based programs established by
the financial institution to meet obligations under this
subchapter, the USA PATRIOT Act (Public Law 107-56; 115 Stat.
272), and other anti-money laundering and countering the
financing of terrorism laws and regulations shall be included
as a measure on which a financial institution is supervised
and examined for compliance with those obligations.
``(5) Duty.--The duty to establish, maintain and enforce an
anti-money laundering and countering the financing of
terrorism program as required by this subsection shall remain
the responsibility of, and be performed by, persons in the
United States who are accessible to, and subject to oversight
and supervision by, the Secretary of the Treasury and the
appropriate Federal functional regulator (as defined in
section 509 of the Gramm-Leach-Bliley Act (15 U.S.C.
6809)).''.
(c) Financial Crimes Enforcement Network.--Section
310(b)(2) of title 31, United States Code, is amended--
(1) by redesignating subparagraph (J) as subparagraph (O);
and
(2) by inserting after subparagraph (I) the following:
``(J) Promulgate regulations under section 5318(h)(4)(D),
as appropriate, to implement the government-wide anti-money
laundering and countering the financing of terrorism
examination and supervision priorities established by the
Secretary of the Treasury under section 5318(h)(4)(A).
``(K) Communicate regularly with financial institutions and
Federal functional regulators that examine financial
institutions for compliance with subchapter II of chapter 53
and regulations promulgated under that subchapter and law
enforcement authorities to explain the United States
Government's anti-money laundering and countering the
financing of terrorism examination and supervision
priorities.
``(L) Give and receive feedback to and from financial
institutions, State bank supervisors, and State credit union
supervisors (as those terms are defined in section 5003 of
the Anti-Money Laundering Act of 2020) regarding the matters
addressed in subchapter II of chapter 53 and regulations
promulgated under that subchapter.
``(M) Maintain money laundering and terrorist financing
investigation financial experts capable of identifying,
tracking, and tracing financial crime networks and
identifying emerging threats to support Federal civil and
criminal investigations.
``(N) Maintain emerging technology experts to encourage the
development of and identify emerging technologies that can
assist the United States Government or financial institutions
in countering money laundering and the financing of
terrorism.''.
SEC. 5102. STRENGTHENING FINCEN.
(a) Findings.--Congress finds the following:
(1) The mission of FinCEN is to safeguard the financial
system from illicit use, counter money laundering and the
financing of terrorism, and promote national security through
strategic use of financial authorities and the collection,
analysis, and dissemination of financial intelligence.
(2) In its mission to safeguard the financial system from
the abuses of financial crime, including the financing of
terrorism, 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) 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
increasingly rely on substitutes for currency, including
emerging payment methods (such as virtual currencies), to
move illicit funds.
(4) In carrying out its mission, FinCEN should ensure that
its efforts fully support countering the financing of
terrorism efforts, including making sure that steps to
address emerging methods of such illicit financing are high
priorities.
(b) Expanding Information Sharing With Tribal
Authorities.--Section 310(b)(2) of title 31, United States
Code, is amended--
(1) in subparagraphs (C), (E), and (F), by inserting
``Tribal,'' after ``local,'' each place that term appears;
and
(2) in subparagraph (C)(vi), by striking ``international''.
(c) Expansion of Reporting Authorities to Combat Money
Laundering.--Section 5318(a)(2) of title 31, United States
Code, is amended--
(1) by inserting ``, including the collection and reporting
of certain information as the Secretary of the Treasury may
prescribe by regulation,'' after ``appropriate procedures'';
and
(2) by inserting ``, the financing of terrorism, or other
forms of illicit finance'' after ``money laundering''.
(d) Value That Substitutes for Currency.--
(1) Definitions.--Section 5312(a) of title 31, United
States Code, is amended--
(A) in paragraph (1), by striking ``, or a transaction in
money, credit, securities, or gold'' and inserting ``, a
transaction in money, credit, securities or gold, or a
service provided with respect to money, securities, futures,
precious metals, stones and jewels, or value that substitutes
for money'';
(B) in paragraph (2)--
(i) in subparagraph (J), by inserting ``, or a business
engaged in the exchange of currency, funds, or value that
substitutes for currency or funds'' before the semicolon at
the end; and
(ii) in subparagraph (R), by striking ``funds,'' and
inserting ``currency, funds, or value that substitutes for
currency,''; and
(C) in paragraph (3)--
(i) in subparagraph (B), by striking ``and'' at the end;
(ii) in subparagraph (C), by striking the period at the end
and inserting ``; and''; and
(iii) by adding at the end the following:
``(D) as the Secretary shall provide by regulation, value
that substitutes for any monetary instrument described in
subparagraph (A), (B), or (C).''.
(2) Registration of money transmitting businesses.--Section
5330(d) of title 31, United States Code, is amended--
(A) in paragraph (1)(A)--
(i) by striking ``funds,'' and inserting ``currency, funds,
or value that substitutes for currency,''; and
(ii) by striking ``system;;'' and inserting ``system;'';
and
(B) in paragraph (2)--
(i) by striking ``currency or funds denominated in the
currency of any country'' and inserting ``currency, funds, or
value that substitutes for currency'';
(ii) by striking ``currency or funds, or the value of the
currency or funds,'' and inserting ``currency, funds, or
value that substitutes for currency''; and
(iii) by inserting ``, including'' after ``means''.
SEC. 5103. FINCEN EXCHANGE.
Section 310 of title 31, United States Code, is amended--
(1) by redesignating subsection (d) as subsection (l); and
(2) by inserting after subsection (c) the following:
``(d) FinCEN Exchange.--
``(1) Definitions.--In this subsection--
``(A) the term `Bank Secrecy Act' has the meaning given the
term in section 5003 of the Anti-Money Laundering Act of
2020; and
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``(B) the term `financial institution' has the meaning
given the term in section 5312.
``(2) Establishment.--The FinCEN Exchange is hereby
established within FinCEN.
``(3) Purpose.--The FinCEN Exchange shall facilitate a
voluntary public-private information sharing partnership
among law enforcement agencies, financial institutions, and
FinCEN to--
``(A) effectively and efficiently combat money laundering,
terrorism financing, organized crime, and other financial
crimes, including by promoting innovation and technical
advances in reporting--
``(i) under subchapter II of chapter 53 and the regulations
promulgated under that subchapter; and
``(ii) with respect to other anti-money laundering
requirements;
``(B) protect the financial system from illicit use; and
``(C) promote national security.
``(4) Report.--
``(A) In general.--Not later than 1 year after the date of
enactment of this subsection, and once every 2 years
thereafter for the next 5 years, the Secretary of the
Treasury shall submit to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives a report
containing--
``(i) an analysis of the efforts undertaken by the FinCEN
Exchange, which shall include an analysis of--
``(I) the results of those efforts; and
``(II) the extent and effectiveness of those efforts,
including any benefits realized by law enforcement agencies
from partnering with financial institutions, which shall be
consistent with standards protecting sensitive information;
and
``(ii) any legislative, administrative, or other
recommendations the Secretary may have to strengthen the
efforts of the FinCEN Exchange.
``(B) Classified annex.--Each report under subparagraph (A)
may include a classified annex.
``(5) Information sharing requirement.--Information shared
under this subsection shall be shared--
``(A) in compliance with all other applicable Federal laws
and regulations;
``(B) in such a manner as to ensure the appropriate
confidentiality of personal information; and
``(C) at the discretion of the Director, with the
appropriate Federal functional regulator, as defined in
section 5003 of the Anti-Money Laundering Act of 2020.
``(6) Protection of shared information.--
``(A) Regulations.--FinCEN shall, as appropriate,
promulgate regulations that establish procedures for the
protection of information shared and exchanged by FinCEN with
the private sector in accordance with this section,
consistent with the capacity, size, and nature of the
financial institution to which the particular procedures
apply.
``(B) Use of information.--Information received by a
financial institution pursuant to this section shall not be
used for any purpose other than identifying and reporting on
activities that may involve terrorist acts, money laundering
activities, proliferation financing activities, or other
financial crimes.
``(7) Rule of construction.--Nothing in this subsection may
be construed to create new information sharing authorities
relating to the Bank Secrecy Act.''.
SEC. 5104. INTERAGENCY ANTI-MONEY LAUNDERING AND COUNTERING
THE FINANCING OF TERRORISM PERSONNEL ROTATION
PROGRAM.
To promote greater effectiveness and efficiency in
combating money laundering, terrorism financing, organized
crime, and other financial crimes, the Secretary shall
maintain and accelerate efforts to strengthen anti-money
laundering and countering the financing of terrorism efforts
through a personnel rotation program among the Federal
functional regulators, the Department of Justice, the Federal
Bureau of Investigation, the Department of Homeland Security,
the Department of Defense, and such other agencies as the
Secretary determines are appropriate.
SEC. 5105. TERRORISM AND FINANCIAL INTELLIGENCE SPECIAL
HIRING AUTHORITY.
(a) FinCEN.--Section 310 of title 31, United States Code,
as amended by section 5103 of this division, is amended by
inserting after subsection (d) the following:
``(e) Special Hiring Authority.--
``(1) In general.--The Secretary of the Treasury may
appoint, without regard to the provisions of sections 3309
through 3318 of title 5, candidates directly to positions in
the competitive service, as defined in section 2102 of that
title, in FinCEN.
``(2) Primary responsibilities.--The primary responsibility
of candidates appointed under paragraph (1) shall be to
provide substantive support in support of the duties
described in subparagraphs (A) through (O) of subsection
(b)(2).''.
(b) Office of Terrorism and Financial Intelligence.--
Section 312 of title 31, United States Code, is amended by
adding at the end the following:
``(g) Special Hiring Authority.--
``(1) In general.--The Secretary of the Treasury may
appoint, without regard to the provisions of sections 3309
through 3318 of title 5, candidates directly to positions in
the competitive service (as defined in section 2102 of that
title) in the OTFI.
``(2) Primary responsibilities.--The primary responsibility
of candidates appointed under paragraph (1) shall be to
provide substantive support in support of the duties
described in subparagraphs (A) through (G) of subsection
(a)(4).
``(h) Deployment of Staff.--The Secretary of the Treasury
may detail, without regard to the provisions of section
300.301 of title 5, Code of Federal Regulations, any employee
in the OTFI to any position in the OTFI for which the
Secretary has determined there is a need.''.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, and every 2 years thereafter for 5
years, the Secretary shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives a report that includes the number of new
employees hired during the previous year under the
authorities described in sections 310 and 312 of title 31,
United States Code, along with position titles and associated
pay grades for such hires.
SEC. 5106. TREASURY ATTACHE PROGRAM.
(a) In General.--Subchapter I of chapter 3 of title 31,
United States Code, is amended by adding at the end the
following:
``Sec. 316. Treasury Attache Program
``(a) In General.--There is established the Treasury
Financial Attache Program, under which the Secretary of the
Treasury shall appoint employees of the Department of the
Treasury as a Treasury Financial Attache, who shall--
``(1) further the work of the Department of the Treasury in
developing and executing the financial and economic policy of
the United States Government and the international fight
against terrorism, money laundering, and other illicit
finance;
``(2) be co-located in a United States Embassy, a similar
United States Government facility, or a foreign government
facility, as the Secretary determines is appropriate;
``(3) establish and maintain relationships with foreign
counterparts, including employees of ministries of finance,
central banks, international financial institutions, and
other relevant official entities;
``(4) conduct outreach to local and foreign financial
institutions and other commercial actors;
``(5) as appropriate, coordinate with representatives of
the Department of Justice at United States Embassies who
perform similar functions on behalf of the United States
Government; and
``(6) perform such other actions as the Secretary
determines are appropriate.
``(b) Number of Attaches.--
``(1) In general.--The number of Treasury Financial
Attaches appointed under this section at any one time shall
be not fewer than 6 more employees than the number of
employees of the Department of the Treasury serving as
Treasury attaches on the date of enactment of this section.
``(2) Additional posts.--The Secretary of the Treasury may
establish additional posts subject to the availability of
appropriations.
``(c) Compensation.--
``(1) In general.--Each Treasury Financial Attache
appointed under this section and located at a United States
Embassy shall receive compensation, including allowances, at
the higher of--
``(A) the rate of compensation, including allowances,
provided to a Foreign Service officer serving at the same
embassy; and
``(B) the rate of compensation, including allowances, the
Treasury attache would otherwise have received, absent the
application of this subsection.
``(2) Phase in.--The compensation described in paragraph
(1) shall be phased in over 2 years.''.
(b) Clerical Amendment.--The table of sections for chapter
3 of title 31, United States Code, is amended by inserting
after the item relating to section 315 the following:
``316. Treasury Attache Program.''.
SEC. 5107. ESTABLISHMENT OF FINCEN DOMESTIC LIAISONS.
Section 310 of title 31, United States Code, as amended by
sections 5103 and 5105 of this division, is amended by
inserting after subsection (e) the following:
``(f) FinCEN Domestic Liaisons.--
``(1) Establishment of office.--There is established in
FinCEN an Office of Domestic Liaison, which shall be headed
by the Chief Domestic Liaison.
``(2) Location.--The Office of the Domestic Liaison shall
be located in the District of Columbia.
``(g) Chief Domestic Liaison.--
``(1) In general.--The Chief Domestic Liaison, shall--
``(A) report directly to the Director; and
``(B) be appointed by the Director, from among individuals
with experience or familiarity with anti-money laundering
program examinations, supervision, and enforcement.
``(2) Compensation.--The annual rate of pay for the Chief
Domestic Liaison shall be equal to the highest rate of annual
pay for other senior executives who report to the Director.
``(3) Staff of office.--The Chief Domestic Liaison, with
the concurrence of the Director, may retain or employ
counsel, research staff, and service staff, as the Liaison
determines necessary to carry out the functions, powers, and
duties under this subsection.
``(4) Domestic liaisons.--The Chief Domestic Liaison, with
the concurrence of the Director, shall appoint not fewer than
6 senior
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FinCEN employees as FinCEN Domestic Liaisons, who shall--
``(A) report to the Chief Domestic Liaison;
``(B) each be assigned to focus on a specific region of the
United States; and
``(C) be located at an office in such region or co-located
at an office of the Board of Governors of the Federal Reserve
System in such region.
``(5) Functions of the domestic liaisons.--
``(A) In general.--Each Domestic Liaison shall--
``(i) in coordination with relevant Federal functional
regulators, perform outreach to BSA officers at financial
institutions, including nonbank financial institutions, and
persons that are not financial institutions, especially with
respect to actions taken by FinCEN that require specific
actions by, or have specific effects on, such institutions or
persons, as determined by the Director;
``(ii) in accordance with applicable agreements, receive
feedback from financial institutions and examiners of Federal
functional regulators regarding their examinations under the
Bank Secrecy Act and communicate that feedback to FinCEN, the
Federal functional regulators, and State bank supervisors;
``(iii) promote coordination and consistency of supervisory
guidance from FinCEN, the Federal functional regulators,
State bank supervisors, and State credit union supervisors
regarding the Bank Secrecy Act;
``(iv) act as a liaison between financial institutions and
their Federal functional regulators, State bank supervisors,
and State credit union supervisors with respect to
information sharing matters involving the Bank Secrecy Act
and regulations promulgated thereunder;
``(v) establish safeguards to maintain the confidentiality
of communications between the persons described in clause
(ii) and the Office of Domestic Liaison;
``(vi) to the extent practicable, periodically propose to
the Director changes in the regulations, guidance, or orders
of FinCEN, including any legislative or administrative
changes that may be appropriate to ensure improved
coordination and expand information sharing under this
paragraph.
``(B) Rule of construction.--Nothing in this paragraph may
be construed to permit the Domestic Liaisons to have
authority over supervision, examination, or enforcement
processes.
``(6) Access to documents.--FinCEN, to the extent
practicable and consistent with appropriate safeguards for
sensitive enforcement-related, pre-decisional, or
deliberative information, shall ensure that the Domestic
Liaisons have full access to the documents of FinCEN, as
necessary to carry out the functions of the Office of
Domestic Liaison.
``(7) Annual reports.--
``(A) In general.--Not later than 1 year after the date of
enactment of this subsection and every 2 years thereafter for
5 years, the Director shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives a report on the objectives of the Office of
Domestic Liaison for the following fiscal year and the
activities of the Office during the immediately preceding
fiscal year.
``(B) Contents.--Each report required under subparagraph
(A) shall include--
``(i) appropriate statistical information and full and
substantive analysis;
``(ii) information on steps that the Office of Domestic
Liaison has taken during the reporting period to address
feedback received by financial institutions and examiners of
Federal functional regulators relating to examinations under
the Bank Secrecy Act;
``(iii) recommendations to the Director for such
administrative and legislative actions as may be appropriate
to address information sharing and coordination issues
encountered by financial institutions or examiners of Federal
functional regulators; and
``(iv) any other information, as determined appropriate by
the Director.
``(C) Sensitive information.--Notwithstanding subparagraph
(D), FinCEN shall review each report required under
subparagraph (A) before the report is submitted to ensure the
report does not disclose sensitive information.
``(D) Independence.--
``(i) In general.--Each report required under subparagraph
(A) shall be provided directly to the committees listed in
that subparagraph, except that a Federal functional
regulator, a State bank supervisor, the Office of Management
and Budget, and a State credit union supervisor shall have
the opportunity for review or comment before the submission
of the report.
``(ii) Rule of construction.--Nothing in clause (i) may be
construed to preclude FinCEN or any other department or
agency from reviewing a report required under subparagraph
(A) for the sole purpose of protecting--
``(I) sensitive information obtained by a law enforcement
agency; and
``(II) classified information.
``(E) Classified information.--No report required under
subparagraph (A) may contain classified information.
``(8) Definitions.--In this subsection:
``(A) Bank secrecy act.--The term `Bank Secrecy Act' has
the meaning given the term in section 5003 of the Anti-Money
Laundering Act of 2020.
``(B) BSA officer.--The term `BSA officer' means an
employee of a financial institution whose primary job
responsibility involves compliance with subchapter II of
chapter 53.
``(C) Federal functional regulator.--The term `Federal
functional regulator' has the meaning given the term in
section 5003 of the Anti-Money Laundering Act of 2020.
``(D) Financial institution.--The term `financial
institution' has the meaning given that term under section
5312.
``(E) State bank supervisor; state credit union
supervisor.--The terms `State bank supervisor' and `State
credit union supervisor' have the meanings given the terms in
section 5003 of the Anti-Money Laundering Act of 2020.''.
SEC. 5108. FOREIGN FINANCIAL INTELLIGENCE UNIT LIAISONS.
Section 310 of title 31, United States Code, as amended by
sections 5103, 5105, and 5107 of this division, is amended by
inserting after subsection (g) the following:
``(h) FinCEN Foreign Financial Intelligence Unit
Liaisons.--
``(1) In general.--The Director of FinCEN shall appoint not
more than 6 Foreign Financial Intelligence Unit Liaisons, who
shall--
``(A) be knowledgeable about domestic and international
anti-money laundering or countering the financing of
terrorism laws and regulations;
``(B) possess a technical understanding of the Bank Secrecy
Act (as defined in section 5003 of the Anti-Money Laundering
Act of 2020), the protocols of the Egmont Group of Financial
Intelligence Units, and the Financial Action Task Force and
the recommendations issued by that Task Force;
``(C) be co-located in a United States embassy, a similar
United States Government facility, or a foreign government
facility, as appropriate;
``(D) facilitate capacity building and perform outreach
with respect to anti-money laundering and countering the
financing of terrorism regulatory and analytical frameworks;
``(E) establish and maintain relationships with officials
from foreign intelligence units, regulatory authorities,
ministries of finance, central banks, law enforcement
agencies, and other competent authorities;
``(F) participate in industry outreach engagements with
foreign financial institutions and other commercial actors on
anti-money laundering and countering the financing of
terrorism issues;
``(G) as appropriate, coordinate with representatives of
the Department of Justice at United States Embassies who
perform similar functions on behalf of the United States
Government; and
``(H) perform such other duties as the Director determines
to be appropriate.
``(2) Compensation.--Each Foreign Financial Intelligence
Unit Liaison appointed under paragraph (1) shall receive
compensation at the higher of--
``(A) the rate of compensation paid to a Foreign Service
officer at a comparable career level serving at the same
embassy or facility, as applicable; or
``(B) the rate of compensation that the Liaison would have
otherwise received.''.
SEC. 5109. PROTECTION OF INFORMATION EXCHANGED WITH FOREIGN
LAW ENFORCEMENT AND FINANCIAL INTELLIGENCE
UNITS.
(a) In General.--Section 310 of title 31, United States
Code, as amended by sections 5103, 5105, 5107, and 5108 of
this division, is amended by inserting after subsection (h)
the following:
``(i) Protection of Information Obtained by Foreign Law
Enforcement and Financial Intelligence Units; Freedom of
Information Act.--
``(1) Definitions.--In this subsection:
``(A) Foreign anti-money laundering and countering the
financing of terrorism authority.--The term `foreign anti-
money laundering and countering the financing of terrorism
authority' means any foreign agency or authority that is
empowered under foreign law to regulate or supervise foreign
financial institutions (or designated non-financial
businesses and professions) with respect to laws concerning
anti-money laundering and countering the financing of
terrorism and proliferation.
``(B) Foreign financial intelligence unit.--The term
`foreign financial intelligence unit' means any foreign
agency or authority, including a foreign financial
intelligence unit that is a member of the Egmont Group of
Financial Intelligence Units, that is empowered under foreign
law as a jurisdiction's national center for--
``(i) receipt and analysis of suspicious transaction
reports and other information relevant to money laundering,
associate predicate offenses, and financing of terrorism; and
``(ii) the dissemination of the results of the analysis
described in clause (i).
``(C) Foreign law enforcement authority.--The term `foreign
law enforcement authority' means any foreign agency or
authority that is empowered under foreign law to detect,
investigate, or prosecute potential violations of law.
``(2) Information exchanged with foreign law enforcement
authorities, foreign financial intelligence units, and
foreign anti-money laundering and countering the financing of
terrorism authorities.--
``(A) In general.--The Department of the Treasury may not
be compelled to search for or disclose information exchanged
with a foreign law enforcement authority, foreign financial
intelligence unit, or foreign anti-money laundering and
countering the financing of terrorism authority.
[[Page S3591]]
``(B) Inapplicability of freedom of information act.--
``(i) In general.--Section 552(a)(3) of title 5 (commonly
referred to as the `Freedom of Information Act') shall not
apply to any request for records or information exchanged
between the Department of the Treasury and a foreign law
enforcement authority, foreign financial intelligence unit,
or foreign anti-money laundering and countering the financing
of terrorism authority.
``(ii) Specifically exempted by statute.--For purposes of
section 552 of title 5, this paragraph shall be considered a
statute described in subsection (b)(3)(B) of that section.
``(3) Savings provision.--Nothing in this section shall
authorize the Department of the Treasury to withhold
information from Congress or prevent the Department of the
Treasury from complying with an order of a court of the
United States in an action commenced by the United States.''.
(b) Availability of Reports.--Section 5319 of title 31,
United States Code, is amended, in the fourth sentence, by
inserting ``search and'' before ``disclosure''.
SEC. 5110. ASSESSMENT OF BANK SECRECY ACT APPLICATION TO
DEALERS IN ARTS AND ANTIQUITIES.
(a) Study on the Facilitation of Money Laundering and
Terror Finance Through the Trade of Works of Art or
Antiquities.--The Secretary, in coordination with the
Director of the Federal Bureau of Investigation, the Attorney
General, and the Secretary of Homeland Security, shall
perform a study on the facilitation of money laundering and
the financing of terrorism through the trade of works of art
or antiquities, including an analysis of--
(1) the extent to which the facilitation of money
laundering and the financing of terrorism through the trade
of works of art or antiquities may enter or affect the
financial system of the United States, including any
qualitative data or statistics;
(2) an evaluation of which markets, by size, domestic or
international geographical locations, or otherwise, should be
subject to any regulations described in paragraph (3);
(3) whether thresholds should apply in determining which
entities, if any, to regulate;
(4) an evaluation of whether certain exemptions should
apply to any regulations described in paragraph (3); and
(5) any other matter the Secretary determines is
appropriate.
(b) Report and Rulemakings.--Not later than 180 days after
the date of enactment of this Act, the Secretary, in
coordination with the Director of the Federal Bureau of
Investigation, the Attorney General, and the Secretary of
Homeland Security, shall--
(1) submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a report that contains all
findings and determinations made in carrying out the study
required under subsection (a); and
(2) propose rulemakings, if appropriate, to implement the
findings and determinations described in paragraph (1).
SEC. 5111. INCREASING TECHNICAL ASSISTANCE FOR INTERNATIONAL
COOPERATION.
(a) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
the Secretary for each of fiscal years 2020 through 2024 for
the purpose described in paragraph (2) an amount equal to
twice the amount authorized to be appropriated for that
purpose for fiscal year 2019.
(2) Purpose described.--The purpose described in this
paragraph is the provision of technical assistance to foreign
countries, and financial institutions in foreign countries,
that promotes compliance with international standards and
best practices, including in particular international
standards and best practices relating to the establishment of
effective anti-money laundering programs and programs for
countering the financing of terrorism.
(3) Sense of congress.--It is the sense of Congress that
this subsection could affect a number of Federal agencies and
departments and the Secretary should, as appropriate, consult
with the heads of those affected agencies and departments,
including the Attorney General, in providing the technical
assistance required under this subsection.
(b) Report on Technical Assistance Provided by Office of
Technical Assistance.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, and every 2 years thereafter for 5
years, the Secretary shall submit to Congress a report on the
assistance described in subsection (a)(2) provided by the
Office of Technical Assistance of the Department of the
Treasury.
(2) Elements.--Each report required under paragraph (1)
shall include--
(A) a description of the strategic goals of the Office of
Technical Assistance in the year preceding submission of the
report, including an explanation of how technical assistance
provided by the Office in that year advanced those goals;
(B) a description of technical assistance provided by the
Office in that year, including the objectives and delivery
methods of the assistance;
(C) a list of beneficiaries and providers (other than
Office staff) of the technical assistance during that year;
and
(D) a description of how--
(i) technical assistance provided by the Office
complements, duplicates, or otherwise affects or is affected
by technical assistance provided by the international
financial institutions (as defined in section 1701(c) of the
International Financial Institutions Act (22 U.S.C.
262r(c))); and
(ii) efforts to coordinate the technical assistance
described in clause (i).
SEC. 5112. INTERNATIONAL COORDINATION.
(a) In General.--The Secretary shall work with foreign
counterparts of the Secretary, including through bilateral
contacts, the Financial Action Task Force, the International
Monetary Fund, the World Bank, the Egmont Group of Financial
Intelligence Units, the Organisation for Economic Co-
operation and Development, the Basel Committee on Banking
Supervision, and the United Nations, to promote stronger
anti-money laundering frameworks and enforcement of anti-
money laundering laws.
(b) National Advisory Council Report to Congress.--The
Chairman of the National Advisory Council on International
Monetary and Financial Policies shall include in each report
required by section 1701 of the International Financial
Institutions Act (22 U.S.C. 262r) after the date of enactment
of this Act a description of--
(1) the activities of the International Monetary Fund in
the fiscal year covered by the report to provide technical
assistance that strengthens the capacity of members of the
Fund to prevent money laundering and the financing of
terrorism, and the effectiveness of the assistance; and
(2) the efficacy of efforts by the United States to support
such technical assistance through the use of the Fund's
administrative budget, and the level of such support.
TITLE LII--MODERNIZING THE ANTI-MONEY LAUNDERING AND COUNTERING THE
FINANCING OF TERRORISM SYSTEM
SEC. 5201. ANNUAL REPORTING REQUIREMENTS.
(a) Annual Report.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the Attorney
General, in consultation with the Secretary, Federal law
enforcement agencies, the Director of National Intelligence,
Federal functional regulators, and the heads of other
appropriate Federal agencies, shall submit to the Secretary a
report that contains statistics, metrics, and other
information on the use of data derived from financial
institutions reporting under the Bank Secrecy Act (referred
to in this subsection as the ``reported data''), including--
(1) the frequency with which the reported data contains
actionable information that leads to--
(A) further procedures by law enforcement agencies,
including the use of a subpoena, warrant, or other legal
process; or
(B) actions taken by intelligence, national security, or
homeland security agencies;
(2) calculations of the time between the date on which the
reported data is reported and the date on which the reported
data is used by law enforcement, intelligence, national
security, or homeland security agencies, whether through the
use of--
(A) a subpoena or warrant; or
(B) other legal process or action;
(3) an analysis of the transactions associated with the
reported data, including whether--
(A) the suspicious accounts that are the subject of the
reported data were held by legal entities or individuals; and
(B) there are trends and patterns in cross-border
transactions to certain countries;
(4) the number of legal entities and individuals identified
by the reported data;
(5) information on the extent to which arrests,
indictments, convictions, criminal pleas, civil enforcement
or forfeiture actions, or actions by national security,
intelligence, or homeland security agencies were related to
the use of the reported data; and
(6) data on the investigations carried out by State and
Federal authorities resulting from the reported data.
(b) Report.--Beginning with the fifth report submitted
under subsection (a), and once every 5 years thereafter, that
report shall include a section describing the use of data
derived from reporting by financial institutions under the
Bank Secrecy Act over the 5 years preceding the date on which
the report is submitted, which shall include a description of
long-term trends and the use of long-term statistics,
metrics, and other information.
(c) Trends, Patterns, and Threats.--Each report required
under subsection (a) and each section included under
subsection (b) shall contain a description of retrospective
trends and emerging patterns and threats in money laundering
and the financing of terrorism, including national and
regional trends, patterns, and threats relevant to the
classes of financial institutions that the Attorney General
determines appropriate.
(d) Use of Report Information.--The Secretary shall use the
information reported under subsections (a), (b), and (c)--
(1) to help assess the usefulness of reporting under the
Bank Secrecy Act to--
(A) criminal and civil law enforcement agencies;
(B) intelligence, defense, and homeland security agencies;
and
(C) Federal functional regulators;
(2) to enhance feedback and communications with financial
institutions and other entities subject to requirements under
the Bank Secrecy Act, including by providing more detail in
the reports published and distributed under section 314(d) of
the USA PATRIOT Act (31 U.S.C. 5311 note);
[[Page S3592]]
(3) to assist FinCEN in considering revisions to the
reporting requirements promulgated under section 314(d) of
the USA PATRIOT Act (31 U.S.C. 5311 note); and
(4) for any other purpose the Secretary determines is
appropriate.
(e) Confidentiality.--Any information received by a
financial institution under this section shall be subject to
confidentiality requirements established by the Secretary.
SEC. 5202. ADDITIONAL CONSIDERATIONS FOR SUSPICIOUS ACTIVITY
REPORTING REQUIREMENTS.
Section 5318(g) of title 31, United States Code, is amended
by adding at the end the following:
``(5) Considerations in imposing reporting requirements.--
``(A) Definitions.--In this paragraph, the terms `Bank
Secrecy Act', `Federal functional regulator', `State bank
supervisor', and `State credit union supervisor' have the
meanings given the terms in section 5003 of the Anti-Money
Laundering Act of 2020.
``(B) Requirements.--In imposing any requirement to report
any suspicious transaction under this subsection, the
Secretary of the Treasury, in consultation with the Attorney
General, appropriate representatives of State bank
supervisors, State credit union supervisors, and the Federal
functional regulators, shall consider items that include--
``(i) the national priorities established by the Secretary;
``(ii) the purposes described in section 5311; and
``(iii) the means by or form in which the Secretary shall
receive such reporting, including the burdens imposed by such
means or form of reporting on persons required to provide
such reporting, the efficiency of the means or form, and the
benefits derived by the means or form of reporting by Federal
law enforcement agencies and the intelligence community in
countering financial crime, including money laundering and
the financing of terrorism.
``(C) Compliance program.--Reports filed under this
subsection shall be guided by the compliance program of a
covered financial institution with respect to the Bank
Secrecy Act, including the risk assessment processes of the
covered institution that should include a consideration of
priorities established by the Secretary of the Treasury under
section 5318.
``(D) Streamlined data and real-time reporting.--
``(i) Requirement to establish system.--In considering the
means by or form in which the Secretary of the Treasury shall
receive reporting pursuant to subparagraph (B)(iii), the
Secretary of the Treasury, acting through the Director of the
Financial Crimes Enforcement Network, and in consultation
with appropriate representatives of the State bank
supervisors, State credit union supervisors, and Federal
functional regulators, shall--
``(I) establish streamlined, including automated, processes
to, as appropriate, permit the filing of noncomplex
categories of reports that--
``(aa) reduce burdens imposed on persons required to
report; and
``(bb) do not diminish the usefulness of the reporting to
Federal law enforcement agencies, national security
officials, and the intelligence community in combating
financial crime, including the financing of terrorism;
``(II) subject to clause (ii)--
``(aa) permit streamlined, including automated, reporting
for the categories described in subclause (I); and
``(bb) establish the conditions under which the reporting
described in item (aa) is permitted; and
``(III) establish additional systems and processes as
necessary to allow for the reporting described in item (aa).
``(ii) Standards.--The Secretary of the Treasury--
``(I) in carrying out clause (i), shall establish standards
to ensure that streamlined reports relate to suspicious
transactions relevant to potential violations of law
(including regulations); and
``(II) in establishing the standards under subclause (I),
shall consider transactions, including structured
transactions, designed to evade any regulation promulgated
under this subchapter, certain fund and asset transfers with
lower apparent economic or business purpose, transactions
without lawful purposes, and any other transaction that the
Secretary determines to be appropriate.
``(iii) Rule of construction.--Nothing in this subparagraph
may be construed to preclude the Secretary of the Treasury
from--
``(I) requiring reporting as provided for in subparagraphs
(B) and (C); or
``(II) notifying Federal law enforcement with respect to
any transaction that the Secretary has determined implicates
a national priority established by the Secretary.''.
SEC. 5203. LAW ENFORCEMENT FEEDBACK ON SUSPICIOUS ACTIVITY
REPORTS.
(a) Feedback.--
(1) In general.--FinCEN shall, to the extent practicable,
periodically solicit feedback from individuals designated
under section 5318(h)(1)(B) of title 31, United States Code,
by a variety of financial institutions representing a cross-
section of the reporting industry to review the suspicious
activity reports filed by those financial institutions and
discuss trends in suspicious activity observed by FinCEN.
(2) Coordination with federal functional regulators and
state bank supervisors and state credit union supervisors.--
FinCEN shall provide any feedback solicited under paragraph
(1) to the appropriate Federal functional regulator, State
bank supervisor, or State credit union supervisor during the
regularly scheduled examination of the applicable financial
institution by the Federal functional regulator, State bank
supervisor, or State credit union supervisor, as applicable.
(b) Disclosure Required.--
(1) In general.--
(A) Periodic disclosure.--Except as provided in paragraph
(2), FinCEN shall, to the extent practicable, periodically
disclose to each financial institution, in summary form,
information on suspicious activity reports filed that proved
useful to Federal or State criminal or civil law enforcement
agencies during the period since the most recent disclosure
under this paragraph to the financial institution.
(B) Rule of construction.--Nothing in this paragraph may be
construed to require the public disclosure of any information
filed with the Department of the Treasury under the Bank
Secrecy Act.
(2) Exception for ongoing and closed investigations and to
protect national security.--FinCEN shall not be required to
disclose to a financial institution any information under
paragraph (1) that relates to an ongoing investigation or
implicates the national security of the United States.
(3) Maintenance of statistics.--With respect to the actions
described in paragraph (1), FinCEN shall keep records of all
such actions taken to assist with the production of the
reports described in paragraph (5) of section 5318(g) of
title 31, United States Code, as added by section 5202 of
this division, and for other purposes.
(4) Coordination with department of justice.--The
information disclosed by FinCEN under this subsection shall
include information from the Department of Justice
regarding--
(A) the review and use by the Department of suspicious
activity reports filed by the applicable financial
institution during the period since the most recent
disclosure under this subsection; and
(B) any trends in suspicious activity observed by the
Department.
SEC. 5204. STREAMLINING REQUIREMENTS FOR CURRENCY TRANSACTION
REPORTS AND SUSPICIOUS ACTIVITY REPORTS.
(a) Review.--The Secretary, in consultation with the
Attorney General, Federal law enforcement agencies, the
Secretary of Homeland Security, the Federal functional
regulators, State bank supervisors, State credit union
supervisors, and other relevant stakeholders, shall undertake
a formal review of the financial institution reporting
requirements relating to currency transaction reports and
suspicious activity reports, as in effect on the date of
enactment of this Act, including the processes used to submit
reports under the Bank Secrecy Act, regulations implementing
the Bank Secrecy Act, and related guidance, and propose
changes to those reports to reduce any unnecessarily
burdensome regulatory requirements and ensure that the
information provided fulfills the purposes described in
section 5311 of title 31, United States Code, as amended by
section 5101(a).
(b) Contents.--The review required under subsection (a)
shall--
(1) rely substantially on information obtained through the
BSA Data Value Analysis Project conducted by FinCEN; and
(2) include a study of--
(A) whether the circumstances under which a financial
institution determines whether to file a continuing
suspicious activity report, including insider abuse, or the
processes followed by a financial institution in determining
whether to file a continuing suspicious activity report, or
both, should be adjusted;
(B) whether different thresholds should apply to different
categories of activities;
(C) the fields designated as critical on the suspicious
activity report form, the fields on the currency transaction
report form, and whether the number or nature of the fields
on those forms should be adjusted;
(D) the categories, types, and characteristics of
suspicious activity reports and currency transaction reports
that are of the greatest value to, and that best support,
investigative priorities of law enforcement and national
security agencies;
(E) the increased use or expansion of exemption provisions
to reduce currency transaction reports that may be of little
or no value to the efforts of law enforcement agencies;
(F) the most appropriate ways to promote financial
inclusion and address the adverse consequences of financial
institutions de-risking entire categories of relationships,
including charities, embassy accounts, and money service
businesses (as defined in section 1010.100(ff) of title 31,
Code of Federal Regulations), and certain groups of
correspondent banks without conducting a proper assessment of
the specific risk of each individual member of these
populations;
(G) the current financial institution reporting
requirements under the Bank Secrecy Act and regulations and
guidance implementing the Bank Secrecy Act;
(H) whether the process for the electronic submission of
reports could be improved for both financial institutions and
law enforcement agencies, including by allowing greater
integration between financial institution systems and the
electronic filing system to allow for automatic population of
report
[[Page S3593]]
fields and the automatic submission of transaction data for
suspicious transactions, without bypassing the obligation of
each reporting financial institution to assess the specific
risk of the transactions reported;
(I) the appropriate manner in which to ensure the security
and confidentiality of personal information;
(J) how to improve the cross-referencing of individuals or
entities operating at multiple financial institutions and
across international borders;
(K) whether there are ways to improve current transaction
report aggregation for entities with common ownership; and
(L) any other matter the Secretary determines is
appropriate.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in consultation with
the Attorney General, Federal law enforcement agencies, the
Director of National Intelligence, the Secretary of Homeland
Security, and the Federal functional regulators, shall--
(1) submit to Congress a report that contains all findings
and determinations made in carrying out the review required
under subsection (a); and
(2) propose rulemakings, as appropriate, to implement the
findings and determinations described in paragraph (1).
SEC. 5205. CURRENCY TRANSACTION REPORTS AND SUSPICIOUS
ACTIVITY REPORTS THRESHOLDS REVIEW.
(a) Review of Thresholds for Certain Currency Transaction
Reports.--The Secretary, in consultation with the Attorney
General, the Director of National Intelligence, the Secretary
of Homeland Security, the Federal functional regulators,
State bank supervisors, State credit union supervisors, and
other relevant stakeholders, shall study and determine
whether the dollar thresholds, including aggregate
thresholds, under sections 5313, 5318(g), and 5331 of title
31, United States Code, including regulations issued under
those sections, should be adjusted.
(b) Considerations.--In making the determinations required
under subsection (a), the Secretary, in consultation with the
Attorney General, the Director of National Intelligence, the
Secretary of Homeland Security, the Federal functional
regulators, State bank supervisors, State credit union
supervisors, and other relevant stakeholders, shall
consider--
(1) the effects that adjusting the thresholds would have on
law enforcement, intelligence, national security, and
homeland security agencies;
(2) the costs likely to be incurred or saved by financial
institutions from any adjustment to the thresholds;
(3) whether adjusting the thresholds would better conform
the United States with international norms and standards to
counter money laundering and the financing of terrorism; and
(4) any other matter that the Secretary determines is
appropriate.
(c) Report and Rulemakings.--Not later than 1 year after
the date of enactment of this Act, the Secretary, in
consultation with the Attorney General, the Director of
National Intelligence, the Secretary of Homeland Security,
the Federal functional regulators, State bank supervisors,
State credit union supervisors, and other relevant
stakeholders, shall--
(1) publish a report of the findings from the study
required under subsection (a); and
(2) propose rulemakings, as appropriate, to implement the
findings described in paragraph (1).
SEC. 5206. SHARING OF THREAT PATTERN AND TREND INFORMATION.
Section 5318(g) of title 31, United States Code, as amended
by section 5202 of this division, is amended by adding at the
end the following:
``(6) Sharing of threat pattern and trend information.--
``(A) Definitions.--In this paragraph--
``(i) the terms `Bank Secrecy Act' and `Federal functional
regulator' have the meanings given the terms in section 5003
of the Anti-Money Laundering Act of 2020; and
``(ii) the term `typology' means a technique to launder
money or finance terrorism.
``(B) Suspicious activity report activity review.--Not less
frequently than semiannually, the Director of the Financial
Crimes Enforcement Network shall publish threat pattern and
trend information to provide meaningful information about the
preparation, use, and value of reports filed under this
subsection by financial institutions, as well as other
reports filed by financial institutions under the Bank
Secrecy Act.
``(C) Inclusion of typologies.--In each publication
published under subparagraph (B), the Director shall provide
financial institutions and the Federal functional regulators
with typologies, including data that can be adapted in
algorithms if appropriate, relating to emerging money
laundering and terrorist financing threat patterns and
trends.
``(7) Rules of construction.--Nothing in this subsection
may be construed as precluding the Secretary of the Treasury
from--
``(A) requiring reporting as provided under subparagraphs
(A) and (B) of paragraph (6); or
``(B) notifying a Federal law enforcement agency with
respect to any transaction that the Secretary has determined
directly implicates a national priority established by the
Secretary.''.
SEC. 5207. SUBCOMMITTEE ON INNOVATION AND TECHNOLOGY.
Section 1564 of the Annunzio-Wylie Anti-Money Laundering
Act (31 U.S.C. 5311 note) is amended by adding at the end the
following:
``(d) Subcommittee on Innovation and Technology.--
``(1) Definitions.--In this subsection, the terms `Bank
Secrecy Act', `State bank supervisor', and `State credit
union supervisor' have the meanings given the terms in
section 5003 of the Anti-Money Laundering Act of 2020.
``(2) Establishment.--There shall be within the Bank
Secrecy Act Advisory Group a subcommittee to be known as the
`Subcommittee on Innovation and Technology' to--
``(A) advise the Secretary of the Treasury regarding means
by which the Department of the Treasury, FinCEN, the Federal
functional regulators, State bank supervisors, and State
credit union supervisors, as appropriate, can most
effectively encourage and support technological innovation in
the area of anti-money laundering and countering the
financing of terrorism and proliferation; and
``(B) reduce, to the extent practicable, obstacles to
innovation that may arise from existing regulations,
guidance, and examination practices related to compliance of
financial institutions with the Bank Secrecy Act.
``(3) Membership.--
``(A) In general.--The subcommittee established under
paragraph (1) shall consist of the representatives of the
heads of the Federal functional regulators, a representative
of State bank supervisors, a representative of State credit
union supervisors, representatives of a cross-section of
financial institutions subject to the Bank Secrecy Act, law
enforcement, FinCEN, and any other representative as
determined by the Secretary of the Treasury.
``(B) Requirements.--Each agency representative described
in subparagraph (A) shall be an individual who has
demonstrated knowledge and competence concerning the
application of the Bank Secrecy Act.
``(4) Sunset.--
``(A) In general.--Except as provided in subparagraph (B),
the Subcommittee on Innovation and Technology shall terminate
on the date that is 5 years after the date of enactment of
this subsection.
``(B) Exception.--The Secretary of the Treasury may renew
the Subcommittee on Innovation for 1-year periods beginning
on the date that is 5 years after the date of enactment of
this subsection.''.
SEC. 5208. FINANCIAL TECHNOLOGY ASSESSMENT.
(a) In General.--The Secretary, in consultation with
financial regulators, technology experts, national security
experts, law enforcement, and any other group the Secretary
determines is appropriate, shall analyze the impact of
financial technology on financial crimes compliance,
including money laundering, the financing of terrorism,
proliferation finance, serious tax fraud, human and drug
trafficking, sanctions evasion, and other illicit finance.
(b) Coordination.--In carrying out the duties required
under this section, the Secretary shall coordinate with and
consider other interagency efforts and data relating to
examining the impact of financial technology, including
activities conducted by--
(1) cyber security working groups at the Department of the
Treasury;
(2) cyber security experts identified by the Attorney
General and the Secretary of Homeland Security;
(3) the intelligence community; and
(4) the Financial Stability Oversight Council.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Banking, Housing, and Urban Affairs and the
Committee on Foreign Relations of the Senate and the
Committee on Financial Services and the Committee on Foreign
Affairs of the House of Representatives a report containing
any findings under subsection (a), including legislative and
administrative recommendations.
SEC. 5209. FINANCIAL CRIMES TECH SYMPOSIUM.
(a) Purpose.--The purposes of this section are to--
(1) promote greater international collaboration in the
effort to prevent and detect financial crimes and suspicious
activities; and
(2) facilitate the investigation, development, and timely
adoption of new technologies aimed at preventing and
detecting financial crimes and other illicit activities.
(b) Periodic Meetings.--The Secretary shall, in
coordination with the Subcommittee on Innovation and
Technology established under subsection (d) of section 1564
of the Annunzio-Wylie Anti-Money Laundering Act, as added by
section 5207 of this division, periodically convene a global
anti-money laundering and financial crime symposium focused
on how new technology can be used to more effectively combat
financial crimes and other illicit activities.
(c) Attendees.--Attendees at each symposium convened under
this section shall include domestic and international
financial regulators, senior executives from regulated firms,
technology providers, representatives from law enforcement
agencies, academic and other experts, and other individuals
that the Secretary determines are appropriate.
(d) Panels.--At each symposium convened under this section,
the Secretary shall convene panels in order to review new
technologies and permit attendees to demonstrate proof of
concept.
(e) Implementation and Reports.--The Secretary shall, to
the extent practicable
[[Page S3594]]
and necessary, work to provide policy clarity, which may
include providing reports or guidance to stakeholders,
regarding innovative technologies and practices presented at
each symposium convened under this section, to the extent
that those technologies and practices further the purposes of
this section.
(f) FinCEN Briefing.--Not later than 90 days after the date
of enactment of this Act, the Director of FinCEN shall brief
the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives on the use of emerging technologies,
including--
(1) the status of implementation and internal use of
emerging technologies, including artificial intelligence,
digital identity technologies, distributed ledger
technologies, and other innovative technologies within
FinCEN;
(2) whether artificial intelligence, digital identity
technologies, distributed ledger technologies, and other
innovative technologies can be further leveraged to make data
analysis by FinCEN more efficient and effective;
(3) whether FinCEN could better use artificial
intelligence, digital identity technologies, distributed
ledger technologies, and other innovative technologies to--
(A) more actively analyze and disseminate the information
FinCEN collects and stores to provide investigative leads to
Federal, State, Tribal, and local law enforcement agencies
and other Federal agencies; and
(B) better support ongoing investigations by FinCEN when
referring a case to the agencies described in subparagraph
(A);
(4) with respect to each of paragraphs (1), (2), and (3),
any best practices or significant concerns identified by the
Director, and their applicability to artificial intelligence,
digital identity technologies, distributed ledger
technologies, and other innovative technologies with respect
to United States efforts to combat money laundering and other
forms of illicit finance;
(5) any policy recommendations that could facilitate and
improve communication and coordination between the private
sector, FinCEN, and the agencies described in paragraph (3)
through the implementation of innovative approaches to meet
the obligations of the agencies under the Bank Secrecy Act
and anti-money laundering compliance; and
(6) any other matter the Director determines is
appropriate.
SEC. 5210. PILOT PROGRAM ON SHARING OF INFORMATION RELATED TO
SUSPICIOUS ACTIVITY REPORTS WITHIN A FINANCIAL
GROUP.
(a) Sharing With Foreign Branches and Affiliates.--Section
5318(g) of title 31, United States Code, as amended by
sections 5202 and 5203 of this division, is amended by adding
at the end the following:
``(8) Pilot program on sharing with foreign branches,
subsidiaries, and affiliates.--
``(A) In general.--
``(i) Issuance of rules.--Not later than 1 year after the
date of enactment of this paragraph, the Secretary of the
Treasury shall issue rules, subject to such controls and
restrictions as the Director of the Financial Crimes
Enforcement Network determines appropriate, establishing the
pilot program described in subparagraph (B).
``(ii) Considerations.--In issuing the rules required under
clause (i), the Secretary shall ensure that the sharing of
information described in subparagraph (B)--
``(I) is limited by the requirements of Federal and State
law enforcement operations;
``(II) takes into account potential concerns of the
intelligence community; and
``(III) is subject to appropriate standards and
requirements regarding data security and the confidentiality
of personally identifiable information.
``(B) Pilot program described.--The pilot program described
in this paragraph shall--
``(i) permit a financial institution with a reporting
obligation under this subsection to share information related
to reports under this subsection, including that such a
report has been filed, with the institution's foreign
branches, subsidiaries, and affiliates for the purpose of
combating illicit finance risks, notwithstanding any other
provision of law except subparagraph (A) or (C);
``(ii) permit the Secretary to consider, implement, and
enforce provisions that would hold a foreign affiliate of a
United States financial institution liable for the disclosure
of information related to reports under this section;
``(iii) terminate on the date that is 3 years after the
date of enactment of this paragraph, except that the
Secretary of the Treasury may extend the pilot program for
not more than 2 years upon submitting to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives a report that includes--
``(I) a certification that the extension is in the national
interest of the United States, with a detailed explanation of
the reasons that the extension is in the national interest of
the United States;
``(II) after appropriate consultation by the Secretary with
participants in the pilot program, an evaluation of the
usefulness of the pilot program, including a detailed
analysis of any illicit activity identified or prevented as a
result of the program; and
``(III) a detailed legislative proposal providing for a
long-term extension of activities under the pilot program,
measures to ensure data security, and confidentiality of
personally identifiable information, including expected
budgetary resources for those activities, if the Secretary of
the Treasury determines that a long-term extension is
appropriate.
``(C) Prohibition involving certain jurisdictions.--In
issuing the rules required under subparagraph (A), the
Secretary of the Treasury may not permit a financial
institution to share information on reports under this
subsection with a foreign branch, subsidiary, or affiliate
located in a jurisdiction that--
``(i) is a state sponsor of terrorism;
``(ii) is subject to sanctions imposed by the Federal
Government; or
``(iii) the Secretary has determined cannot reasonably
protect the security and confidentiality of such information.
``(D) Implementation updates.--Not later than 360 days
after the date on which rules are issued under subparagraph
(A), and annually thereafter for 3 years, the Secretary of
the Treasury, or the designee of the Secretary, shall brief
the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives on--
``(i) the degree of any information sharing permitted under
the pilot program and a description of criteria used by the
Secretary to evaluate the appropriateness of the information
sharing;
``(ii) the effectiveness of the pilot program in
identifying or preventing the violation of a United States
law or regulation and mechanisms that may improve that
effectiveness; and
``(iii) any recommendations to amend the design of the
pilot program.
``(9) Treatment of foreign jurisdiction-originated
reports.--Information related to a report received by a
financial institution from a foreign affiliate with respect
to a suspicious transaction relevant to a possible violation
of law or regulation shall be subject to the same
confidentiality requirements provided under this subsection
for a report of a suspicious transaction described in
paragraph (1).
``(10) No offshoring compliance.--No financial institution
may establish or maintain any operation located outside of
the United States the primary purpose of which is to ensure
compliance with the Bank Secrecy Act as a result of the
sharing granted under this subsection.
``(11) Definitions.--In this subsection:
``(A) Affiliate.--The term `affiliate' means an entity that
controls, is controlled by, or is under common control with
another entity.
``(B) Bank secrecy act; state bank supervisor; state credit
union supervisor.--The terms `Bank Secrecy Act', `State bank
supervisor', and `State credit union supervisor' have the
meanings given the terms in section 5003 of the Anti-Money
Laundering Act of 2020.''.
(b) Notification Prohibitions.--Section 5318(g)(2)(A) of
title 31, United States Code, is amended--
(1) in clause (i), by inserting ``or otherwise reveal any
information that would reveal that the transaction has been
reported,'' after ``transaction has been reported''; and
(2) in clause (ii), by inserting ``or otherwise reveal any
information that would reveal that the transaction has been
reported,'' after ``transaction has been reported,''.
SEC. 5211. SHARING OF COMPLIANCE RESOURCES.
(a) In General.--Section 5318 of title 31, United States
Code, is amended by adding at the end the following:
``(o) Sharing of Compliance Resources.--
``(1) Sharing permitted.--In order to more efficiently
comply with the requirements of this subchapter, 2 or more
financial institutions may enter into collaborative
arrangements, as described in the statement entitled
`Interagency Statement on Sharing Bank Secrecy Act
Resources', published on October 3, 2018, by the Board of
Governors of the Federal Reserve System, the Federal Deposit
Insurance Corporation, the Financial Crimes Enforcement
Network, the National Credit Union Administration, and the
Office of the Comptroller of the Currency.
``(2) Outreach.--The Secretary of the Treasury and the
appropriate supervising agencies shall carry out an outreach
program to provide financial institutions with information,
including best practices, with respect to the collaborative
arrangements described in paragraph (1).''.
(b) Rule of Construction.--The amendment made by subsection
(a) may not be construed to require financial institutions to
share resources.
SEC. 5212. ENCOURAGING INFORMATION SHARING AND PUBLIC-PRIVATE
PARTNERSHIPS.
(a) In General.--The Secretary shall convene a supervisory
team of relevant Federal agencies, private sector experts in
banking, national security, and law enforcement, and other
stakeholders to examine strategies to increase cooperation
between the public and private sectors for purposes of
countering proliferation finance and sanctions evasion.
(b) Meetings.--The supervisory team convened under
subsection (a) shall meet periodically to advise on
strategies to combat the risk relating to proliferation
financing.
(c) Federal Advisory Committee Act.--The Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the
supervisory team convened under subsection (a) or to the
activities of the supervisory team.
[[Page S3595]]
SEC. 5213. FINANCIAL SERVICES DE-RISKING.
(a) Findings.--Congress finds the following:
(1) The practice known as de-risking, whereby financial
institutions avoid rather than manage the compliance risk
making effective anti-money laundering, countering the
financing of terrorism, and sanctions compliance programs,
has negatively impacted the ability of nonprofit
organizations to conduct lifesaving activities around the
globe.
(2) It has been estimated that \2/3\ of nonprofit
organizations based in the United States with international
activities face difficulties with financial access, most
commonly the inability to send funds internationally through
transparent, regulated financial channels.
(3) Without access to timely and predictable banking
services, nonprofit organizations cannot carry out essential
humanitarian activities that can mean life or death to those
in affected communities.
(4) De-risking can ultimately drive money into less
transparent channels through the carrying of cash or use of
unlicensed or unregistered money service remitters, thus
reducing transparency and traceability, which are critical
for financial integrity, and can increase the risk of money
falling into the wrong hands.
(5) Federal agencies must continue to work to address de-
risking through the establishment of guidance enabling
financial institutions to bank with nonprofit organizations
and promoting focused and proportionate measures consistent
with a risk-based approach.
(6) As the 2020 National Strategy for Combating Terrorist
and Other Illicit Financing of the Department of the Treasury
observes, ``Treasury and interagency partners will continue
to engage with charitable organizations and financial
institutions to evaluate and communicate the actual risk that
these organizations may be misused to support terrorism and
that financial institutions apply the risk-based approach to
the opening and maintenance of charity accounts, as the vast
majority of U.S.-based tax exempt charitable organizations
are not high risk for terrorist financing.''.
(7) The Federal Government should work cooperatively with
other donor states to promote a multi-stakeholder approach to
risk-sharing among governments, financial institutions, and
nonprofit organizations.
(b) Sense of Congress.--It is the sense of Congress that--
(1) providing vital humanitarian and development assistance
and protecting the integrity of the international financial
system are complementary goals; and
(2) Congress supports--
(A) effective measures to stop the flow of illicit funds
and promote the goals of anti-money laundering and countering
the financing of terrorism and sanctions regimes;
(B) anti-money laundering and countering the financing of
terrorism and sanctions policies that do not unduly hinder or
delay the efforts of legitimate humanitarian organizations in
providing assistance to--
(i) meet the needs of civilians facing a humanitarian
crisis, including enabling governments and humanitarian
organizations to provide them with timely access to food,
health, and medical care, shelter, and clean drinking water;
and
(ii) prevent or alleviate human suffering, in keeping with
requirements of international humanitarian law;
(C) policies that ensure that incidental, inadvertent
benefits that may indirectly benefit a designated group in
the course of delivering life-saving aid to civilian
populations are not the primary focus of Federal Government
enforcement efforts; and
(D) laws, regulations, policies, guidance, and other
measures that ensure the integrity of the financial system
through a risk-based approach.
(c) GAO De-risking Analysis.--Not later than 1 year after
the date of enactment of this Act, the Comptroller General of
the United States shall conduct a study and submit to
Congress a report--
(1) evaluating the effect of anti-money laundering and
countering the financing of terrorism requirements on
individuals and entities, including charities, embassy
accounts, money-service businesses, and correspondent banks,
that--
(A) have been subject to categorical de-risking by
financial institutions operating in the United States; or
(B) otherwise have difficulty accessing or maintaining--
(i) relationships in the United States financial system; or
(ii) certain financial services in the United States,
including opening and keeping open an account;
(2) evaluating the consequences of financial institutions
de-risking entire categories of relationships with the
individuals and entities described in paragraph (1); and
(3) identifying options for financial institutions handling
transactions or accounts for high-risk categories of clients
and for minimizing the negative effects of anti-money
laundering and countering the financing of terrorism
requirements on the individuals and entities described in
paragraph (1) without compromising the effectiveness of
Federal anti-money laundering and countering the financing of
terrorism requirements.
(d) Review of De-risking.--
(1) Definition.--In this subsection, the term ``de-
risking'' means an action taken by a financial institution to
terminate or restrict a business relationship with a
customer, or a category of customers, rather than manage the
risk associated with that relationship consistent with risk-
based supervisory or regulatory requirements.
(2) Review.--Upon completion of the analysis required under
subsection (c), the Secretary, in consultation with the
Federal functional regulators, State bank supervisors, State
credit union supervisors, appropriate public and private
sector stakeholders, and other appropriate parties, shall--
(A) undertake a formal review of the financial institution
reporting requirements, as in effect on the date of enactment
of this Act, including the processes used to submit reports
under the Bank Secrecy Act, regulations implementing the Bank
Secrecy Act, and related guidance; and
(B) propose changes to those requirements described in
paragraph (1) to reduce any unnecessarily burdensome
regulatory requirements and ensure that the information
provided fulfills the purpose described in section 5311 of
title 31, United States Code, as amended by this division.
(3) Contents.--The review required under paragraph (2)
shall--
(A) rely substantially on information obtained through the
de-risking analyses conducted by the Comptroller General of
the United States; and
(B) consider--
(i) any adverse consequence of financial institutions de-
risking entire categories of relationships, including
charities, embassy accounts, money services businesses, as
defined in section 1010.100 of title 31, Code of Federal
Regulations, agents of the financial institutions, countries,
international and domestic regions, and respondent banks;
(ii) the reasons why financial institutions are engaging in
de-risking;
(iii) the association with and effects of de-risking on
money laundering and financial crime actors and activities;
(iv) the most appropriate ways to promote financial
inclusion, particularly with respect to developing countries,
while maintaining compliance with the Bank Secrecy Act,
including an assessment of policy options to--
(I) more effectively tailor Federal actions and penalties
to the size of foreign financial institutions and any
capacity limitations of foreign governments; and
(II) reduce compliance costs that may lead to the adverse
consequences described in clause (i);
(v) formal and informal feedback provided by examiners that
may have led to de-risking;
(vi) the relationship between resources dedicated to
compliance and overall sophistication of compliance efforts
at entities that may be experiencing de-risking versus those
that have not experienced de-risking;
(vii) any best practices from the private sector that
facilitate correspondent bank relationships; and
(viii) any other matter that the Secretary determines is
appropriate.
(4) Strategy on de-risking.--Upon the completion of the
review required under this subsection, the Secretary of the
Treasury, in consultation with the Federal functional
regulators, State bank supervisors, State credit union
supervisors, appropriate public and private sector
stakeholders, and other appropriate parties, shall develop a
strategy to reduce de-risking and adverse consequences
related to de-risking.
(5) Report.--Not later than 1 year after the completion of
the review required under this subsection, the Secretary
shall submit to Congress a report containing--
(A) all findings and determinations made in carrying out
the review; and
(B) the strategy developed under paragraph (4).
SEC. 5214. REVIEW OF REGULATIONS AND GUIDANCE.
(a) In General.--The Secretary, in consultation with the
Federal functional regulators, the Federal Financial
Institutions Examination Council, the Attorney General,
Federal law enforcement agencies, the Director of National
Intelligence, the Secretary of Homeland Security, and the
Commissioner of Internal Revenue, shall--
(1) undertake a formal review of the regulations
implementing the Bank Secrecy Act and guidance related to
that Act--
(A) to ensure the Department of the Treasury provides, on a
continuing basis, for appropriate safeguards to protect the
financial system from threats, including money laundering and
the financing of terrorism and proliferation, to national
security posed by various forms of financial crime;
(B) to ensure that those provisions will continue to
require certain reports or records that are highly useful in
countering financial crime; and
(C) to identify those regulations and guidance that--
(i) may be outdated, redundant, or otherwise do not promote
a risk-based anti-money laundering compliance and countering
the financing of terrorism regime for financial institutions;
or
(ii) do not conform with the commitments of the United
States to meet international standards to combat money
laundering, financing of terrorism, serious tax fraud, or
other financial crimes; and
(2) make appropriate changes to the regulations and
guidance described in paragraph (1) to improve, as
appropriate, the efficiency of those provisions.
[[Page S3596]]
(b) Public Comment.--The Secretary shall solicit public
comment as part of the review required under subsection (a).
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in consultation with
the Federal Financial Institutions Examination Council, the
Federal functional regulators, the Attorney General, Federal
law enforcement agencies, the Director of National
Intelligence, the Secretary of Homeland Security, and the
Commissioner of Internal Revenue, shall submit to Congress a
report that contains all findings and determinations made in
carrying out the review required under subsection (a),
including administrative or legislative recommendations.
TITLE LIII--IMPROVING ANTI-MONEY LAUNDERING AND COUNTERING THE
FINANCING OF TERRORISM COMMUNICATION, OVERSIGHT, AND PROCESSES
SEC. 5301. IMPROVED INTERAGENCY COORDINATION AND
CONSULTATION.
Section 5318 of title 31, United States Code, as amended by
section 5211(a) of this division, is amended by adding at the
end the following:
``(p) Interagency Coordination and Consultation.--
``(1) In general.--The Secretary of the Treasury shall, as
appropriate, invite an appropriate State bank supervisor and
an appropriate State credit union supervisor to participate
in the interagency consultation and coordination with the
Federal depository institution regulators regarding the
development or modification of any rule or regulation
carrying out this subchapter.
``(2) Rules of construction.--Nothing in this subsection
may be construed to--
``(A) affect, modify, or limit the discretion of the
Secretary of the Treasury with respect to the methods or
forms of interagency consultation and coordination; or
``(B) require the Secretary of the Treasury or a Federal
depository institution regulator to coordinate or consult
with an appropriate State bank supervisor or to invite such
supervisor to participate in interagency consultation and
coordination with respect to a matter, including a rule or
regulation, specifically affecting only Federal depository
institutions or Federal credit unions.
``(3) Definitions.--In this subsection:
``(A) Appropriate state bank supervisor.--The term
`appropriate State bank supervisor' means the Chairman or
members of the State Liaison Committee of the Federal
Financial Institutions Examination Council.
``(B) Appropriate state credit union supervisor.--The term
`appropriate State credit union supervisor' means the
Chairman or members of the State Liaison Committee of the
Federal Financial Institutions Examination Council.
``(C) Federal credit union.--The term `Federal credit
union' has the meaning given the term in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752).
``(D) Federal depository institution.--The term `Federal
depository institution' has the meaning given the term in
section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813).
``(E) Federal depository institution regulators.--The term
`Federal depository institution regulator' means the members
of the Federal Financial Institutions Examination Council to
which is delegated any authority of the Secretary under
subsection (a)(1).''.
SEC. 5302. SUBCOMMITTEE ON INFORMATION SECURITY AND
CONFIDENTIALITY.
Section 1564 of the Annunzio-Wylie Anti-Money Laundering
Act (31 U.S.C. 5311 note), as amended by section 5207 of this
division, is amended by adding at the end the following:
``(e) Subcommittee on Information Security and
Confidentiality.--
``(1) In general.--There shall be within the Bank Secrecy
Act Advisory Group a subcommittee to be known as the
Subcommittee on Information Security and Confidentiality (in
this subsection referred to as the `Subcommittee') to advise
the Secretary of the Treasury regarding the information
security and confidentiality implications of regulations,
guidance, information sharing programs, and the examination
for compliance with and enforcement of the provisions of the
Bank Secrecy Act.
``(2) Membership.--
``(A) In general.--The Subcommittee shall consist of the
representatives of the heads of the Federal functional
regulators and representatives from financial institutions
subject to the Bank Secrecy Act, law enforcement, FinCEN, and
any other representatives as determined by the Secretary of
the Treasury.
``(B) Requirements.--Each agency representative described
in subparagraph (A) shall be an individual who has
demonstrated knowledge and competence concerning the
application of the Bank Secrecy Act and familiarity with and
expertise in applicable laws.
``(3) Sunset.--
``(A) In general.--Except as provided in subparagraph (B),
the Subcommittee shall terminate on the date that is 5 years
after the date of enactment of this subsection.
``(B) Exception.--The Secretary of the Treasury may renew
the Subcommittee for 1-year periods beginning on the date
that is 5 years after the date of enactment of this
subsection.
``(f) Definitions.--In this section:
``(1) Bank secrecy act.--the term `Bank Secrecy Act' has
the meaning given the term in section 5003 of the Anti-Money
Laundering Act of 2020.
``(2) Federal functional regulator.--The term `Federal
functional regulator' has the meaning given the term in
section 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6809).
``(3) FinCEN.--The term `FinCEN' means the Financial Crimes
Enforcement Network of the Department of the Treasury.
``(4) Financial institution.--The term `financial
institution' has the meaning given the term in section 5312
of title 31, United States Code.
``(5) State credit union supervisor.--The term `State
credit union supervisor' means a State official described in
section 107A(e) of the Federal Credit Union Act (12 U.S.C.
1757a(e)).''.
SEC. 5303. FINCEN ANALYTICAL HUB.
Section 310 of title 31, United States Code, as amended by
sections 5103, 5105, 5107, 5108, and 5109 of this division,
is amended by inserting after subsection (i) the following:
``(j) Analytical Experts.--
``(1) In general.--FinCEN shall maintain financial experts
capable of identifying, tracking, and tracing money
laundering and terrorist-financing networks in order to
conduct and support civil and criminal anti-money laundering
and countering the financing of terorism investigations
conducted by the United States Government.
``(2) FinCEN analytical hub.--FinCEN, upon a reasonable
request from a Federal agency, shall, in collaboration with
the requesting agency and the appropriate Federal functional
regulator, analyze the potential anti-money laundering and
countering the financing of terrorism activity that prompted
the request.
``(k) Definitions.--In this section:
``(1) Bank secrecy act.--The term `Bank Secrecy Act' has
the meaning given the term in section 5003 of the Anti-Money
Laundering Act of 2020.
``(2) Federal functional regulator.--The term `Federal
functional regulator' has the meaning given the term in
section 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6809).
``(3) Financial institution.--The term `financial
institution' has the meaning given the term in section 5312.
``(4) State bank supervisor.--The term `State bank
supervisor' has the meaning given the term in section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 1813).
``(5) State credit union supervisor.--The term `State
credit union supervisor' means a State official described in
section 107A(e) of the Federal Credit Union Act (12 U.S.C.
1757a(e)).''.
SEC. 5304. ASSESSMENT OF BANK SECRECY ACT NO-ACTION LETTERS.
(a) Assessment.--
(1) In general.--The Director, in consultation with the
Attorney General, the Federal functional regulators, State
bank supervisors, State credit union supervisors, and other
Federal agencies, as appropriate, shall conduct an assessment
on whether to establish a process for the issuance of no-
action letters by FinCEN in response to inquiries from
persons concerning the application of the Bank Secrecy Act,
the USA PATRIOT Act (Public Law 107-56; 115 Stat. 272),
section 8(s) of the Federal Deposit Insurance Act (12 U.S.C.
1818(s)), or any other anti-money laundering or countering
the financing of terrorism law (including regulations) to
specific conduct, including a request for a statement as to
whether FinCEN or any relevant Federal functional regulator
intends to take an enforcement action against the person with
respect to such conduct.
(2) Analysis.--The assessment required under paragraph (1)
shall include an analysis of--
(A) a timeline for the process used to reach a final
determination by FinCEN, in consultation with the relevant
Federal functional regulators, in response to a request by a
person for a no-action letter;
(B) whether improvements in current processes are
necessary;
(C) whether a formal no-action letter process would help to
mitigate or accentuate illicit finance risks in the United
States; and
(D) any other matter the Secretary determines is
appropriate.
(b) Report and Rulemakings.--Not later than 180 days after
the date of enactment of this Act, the Secretary, in
coordination with the Director of the Federal Bureau of
Investigation, the Attorney General, the Secretary of
Homeland Security, and the Federal functional regulators,
shall--
(1) submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a report that contains all
findings and determinations made in carrying out the study
required under subsection (a); and
(2) propose rulemakings, if appropriate, to implement the
findings and determinations described in paragraph (1).
SEC. 5305. COOPERATION WITH LAW ENFORCEMENT.
(a) In General.--
(1) Amendment to title 31.--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 directives
``(a) In General.--With respect to a customer account or
customer transaction of a financial institution, if a Federal
law enforcement agency with the acknowledgment of FinCEN, or
a State, Tribal, or local law enforcement agency with the
acknowledgment and concurrence of FinCEN, submits to
[[Page S3597]]
the financial institution a written request that the
financial institution keep that account or transaction open
(referred to in this section as a `keep open request')--
``(1) the financial institution shall not be liable under
this subchapter for maintaining that account or transaction
consistent with the parameters and timing 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 solely for maintaining that
account or transaction consistent with the parameters of the
request.
``(b) Rule of Construction.--Nothing in this section may be
construed--
``(1) to prevent a Federal or State department or agency
from verifying the validity of a keep open request submitted
under subsection (a) with the law enforcement agency
submitting that request;
``(2) to relieve a financial institution from complying
with any reporting requirements or any other provisions of
this subchapter, including the reporting of suspicious
transactions under section 5318(g); or
``(3) to extend the safe harbor described in subsection (a)
to any actions taken by the financial institution--
``(A) before the date of the keep open request to maintain
a customer account; or
``(B) after the termination date stated in the keep open
request.
``(c) Letter Termination Date.--For the purposes of this
section, any keep open request submitted under subsection (a)
shall include a termination date after which that request
shall no longer apply.
``(d) Record Keeping.--Any Federal, State, Tribal, or local
law enforcement agency that submits to a financial
institution a keep open request shall, not later than 2
business days after the date on which the request is
submitted to the financial institution--
``(1) submit to FinCEN a copy of the request; and
``(2) alert FinCEN as to whether the financial institution
has implemented the request.
``(e) Guidance.--The Secretary of the Treasury, in
consultation with the Attorney General and Federal, State,
Tribal, and local law enforcement agencies, shall issue
guidance on the required elements of a keep open request.''.
(2) Amendment to public law 91-508.--Chapter 2 of title I
of Public Law 91-508 (12 U.S.C. 1951 et seq.) is amended by
adding at the end the following:
``Sec. 130. Safe harbor with respect to keep open directives
``(a) Definition.--In this section, the term `financial
institution' means an entity to which section 123(b) applies.
``(b) Safe Harbor.--With respect to a customer account or
customer transaction of a financial institution, if a Federal
law enforcement agency with the acknowledgment of FinCEN, or
a State, Tribal, or local law enforcement agency with the
acknowledgment and concurrence of FinCEN, submits to the
financial institution a written request that the financial
institution keep that account or transaction open (referred
to in this section as a `keep open request')--
``(1) the financial institution shall not be liable under
this chapter for maintaining that account or transaction
consistent with the parameters and timing of the request; and
``(2) no Federal or State department or agency may take any
adverse supervisory action under this chapter with respect to
the financial institution solely for maintaining that account
or transaction consistent with the parameters of the request.
``(c) Rule of Construction.--Nothing in this section may be
construed--
``(1) to prevent a Federal or State department or agency
from verifying the validity of a keep open request submitted
under subsection (b) with the law enforcement agency
submitting that request;
``(2) to relieve a financial institution from complying
with any reporting requirements, including the reporting of
suspicious transactions under section 5318(g) of title 31,
United States Code; or
``(3) to extend the safe harbor described in subsection (b)
to any actions taken by the financial institution--
``(A) before the date of the keep open request to maintain
a customer account; or
``(B) after the termination date stated in the keep open
request.
``(d) Letter Termination Date.--For the purposes of this
section, any keep open request submitted under subsection (b)
shall include a termination date after which that request
shall no longer apply.
``(e) Record Keeping.--Any Federal, State, Tribal, or local
law enforcement agency that submits to a financial
institution a keep open request shall, not later than 2
business days after the date on which the request is
submitted to the financial institution--
``(1) submit to FinCEN a copy of the request; and
``(2) alert FinCEN as to whether the financial institution
has implemented the request.''.
(b) Clerical Amendments.--
(1) Title 31.--The table of sections for chapter 53 of
title 31, United States Code, is amended by inserting after
the item relating to section 5332 the following:
================
(2) Public law 91-508.--The table of sections for chapter 2
of title I of Public Law 91-508 (12 U.S.C. 1951 et seq.) is
amended by adding at the end the following:
================
SEC. 5306. TRAINING FOR EXAMINERS ON ANTI-MONEY LAUNDERING
AND COUNTERING THE FINANCING OF TERRORISM.
(a) In General.--Subchapter II of chapter 53 of title 31,
United States Code, as amended by section 5305(a)(1)(A) of
this division, is amended by adding at the end the following:
``Sec. 5334. Training regarding anti-money laundering and
countering the financing of terrorism
``(a) Training Requirement.--Each Federal examiner
reviewing compliance with the Bank Secrecy Act, as defined in
section 5003 of the Anti-Money Laundering Act of 2020, shall
attend appropriate annual training, as determined by the
Secretary of the Treasury, relating to anti-money laundering
activities and countering the financing of terrorism,
including with respect to--
``(1) potential risk profiles and warning signs that an
examiner may encounter during examinations;
``(2) financial crime patterns and trends;
``(3) the high-level context for why anti-money laundering
and countering the financing of terrorism programs are
necessary for law enforcement agencies and other national
security agencies and what risks those programs seek to
mitigate; and
``(4) de-risking and the effect of de-risking on the
provision of financial services.
``(b) Training Materials and Standards.--The Secretary of
the Treasury shall, in consultation with the Federal
Financial Institutions Examination Council, the Financial
Crimes Enforcement Network, and Federal, State, Tribal, and
local law enforcement agencies, establish appropriate
training materials and standards for use in the training
required under subsection (a).''.
(b) Clerical Amendment.--The table of sections for chapter
53 of title 31, United States Code, as amended by section
5305(b)(1) of this division, is amended by adding at the end
the following:
``5334. Training regarding anti-money laundering and countering the
================
SEC. 5307. OBTAINING FOREIGN BANK RECORDS FROM BANKS WITH
UNITED STATES CORRESPONDENT ACCOUNTS.
(a) Grand Jury and Trial Subpoenas.--Section 5318(k) of
title 31, United States Code, is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraph (B) as subparagraph (C);
and
(B) by inserting after subparagraph (A) the following:
``(B) Covered financial institution.--The term `covered
financial institution' means an institution referred to in
subsection (j)(1).''; and
(2) by striking paragraph (3) and inserting the following:
``(3) Foreign bank records.--
``(A) Subpoena of records.--
``(i) In general.--Notwithstanding subsection (b), the
Secretary of the Treasury or the Attorney General may issue a
subpoena to any foreign bank that maintains a correspondent
account in the United States and request any records relating
to the correspondent account or any account at the foreign
bank, including records maintained outside of the United
States, that are the subject of--
``(I) any investigation of a violation of a criminal law of
the United States;
``(II) any investigation of a violation of this subchapter;
``(III) a civil forfeiture action; or
``(IV) an administrative proceeding under section 5318A.
``(ii) Production of records.--The foreign bank on which a
subpoena described in clause (i) is served shall produce all
requested records and authenticate all requested records with
testimony in the manner described in--
``(I) rule 902(12) of the Federal Rules of Evidence; or
``(II) section 3505 of title 18.
``(iii) Issuance and service of subpoena.--A subpoena
described in clause (i)--
``(I) shall designate--
``(aa) a return date; and
``(bb) the judicial district in which the related
investigation is proceeding; and
``(II) may be served--
``(aa) in person;
``(bb) by mail or fax in the United States if the foreign
bank has a representative in the United States; or
``(cc) if applicable, in a foreign country under any mutual
legal assistance treaty, multilateral agreement, or other
request for international legal or law enforcement
assistance.
``(iv) Relief from subpoena.--
``(I) In general.--At any time before the return date of a
subpoena described in clause (i), the foreign bank on which
the subpoena is served may petition the district court of the
United States for the judicial district in which the related
investigation is proceeding, as designated in the subpoena,
to modify or quash--
``(aa) the subpoena; or
``(bb) the prohibition against disclosure described in
subparagraph (C).
[[Page S3598]]
``(II) Conflict with foreign secrecy or confidentiality.--
An assertion that compliance with a subpoena described in
clause (i) would conflict with a provision of foreign secrecy
or confidentiality law shall not be a basis for quashing or
modifying the subpoena.
``(B) Acceptance of service.--
``(i) Maintaining records in the united states.--Any
covered financial institution that maintains a correspondent
account in the United States for a foreign bank shall
maintain records in the United States identifying--
``(I) the owners of record and the beneficial owners of the
foreign bank; and
``(II) the name and address of a person who--
``(aa) resides in the United States; and
``(bb) is authorized to accept service of legal process for
records covered under this subsection.
``(ii) Law enforcement request.--Upon receipt of a written
request from a Federal law enforcement officer for
information required to be maintained under this paragraph, a
covered financial institution shall provide the information
to the requesting officer not later than 7 days after receipt
of the request.
``(C) Nondisclosure of subpoena.--
``(i) In general.--No officer, director, partner, employee,
or shareholder of, or agent or attorney for, a foreign bank
on which a subpoena is served under this paragraph shall,
directly or indirectly, notify any account holder involved or
any person named in the subpoena issued under subparagraph
(A)(i) and served on the foreign bank about the existence or
contents of the subpoena.
``(ii) Damages.--Upon application by the Attorney General
for a violation of this subparagraph, a foreign bank on which
a subpoena is served under this paragraph shall be liable to
the United States Government for a civil penalty in an amount
equal to--
``(I) double the amount of the suspected criminal proceeds
sent through the correspondent account of the foreign bank in
the related investigation; or
``(II) if no such proceeds can be identified, not more than
$250,000.
``(D) Enforcement.--
``(i) In general.--If a foreign bank fails to obey a
subpoena issued under subparagraph (A)(i), the Attorney
General may invoke the aid of the district court of the
United States for the judicial district in which the
investigation or related proceeding is occurring to compel
compliance with the subpoena.
``(ii) Court orders and contempt of court.--A court
described in clause (i) may--
``(I) issue an order requiring the foreign bank to appear
before the Secretary of the Treasury or the Attorney General
to produce--
``(aa) certified records, in accordance with--
``(AA) rule 902(12) of the Federal Rules of Evidence; or
``(BB) section 3505 of title 18; or
``(bb) testimony regarding the production of the certified
records; and
``(II) punish any failure to obey an order issued under
subclause (I) as contempt of court.
``(iii) Service of process.--All process in a case under
this subparagraph shall be served on the foreign bank in the
same manner as described in subparagraph (A)(iii).
``(E) Termination of correspondent relationship.--
``(i) Termination upon receipt of notice.--A covered
financial institution shall terminate any correspondent
relationship with a foreign bank not later than 10 business
days after the date on which the covered financial
institution receives written notice from the Secretary of the
Treasury or the Attorney General if, after consultation with
the other, the Secretary of the Treasury or the Attorney
General, as applicable, determines that the foreign bank has
failed--
``(I) to comply with a subpoena issued under subparagraph
(A)(i); or
``(II) to prevail in proceedings before--
``(aa) the appropriate district court of the United States
after challenging a subpoena described in subclause (I) under
subparagraph (A)(iv)(I); or
``(bb) a court of appeals of the United States after
appealing a decision of a district court of the United States
under item (aa).
``(ii) Limitation on liability.--A covered financial
institution shall not be liable to any person in any court or
arbitration proceeding for--
``(I) terminating a correspondent relationship under this
subparagraph; or
``(II) complying with a nondisclosure order under
subparagraph (C).
``(iii) Failure to terminate relationship.--A covered
financial institution that fails to terminate a correspondent
relationship under clause (i) shall be liable for a civil
penalty in an amount that is not more than $25,000 for each
day that the covered financial institution fails to terminate
the relationship.
``(F) Enforcement of civil penalties.--Upon application by
the United States, any funds held in the correspondent
account of a foreign bank that is maintained in the United
States with a covered financial institution may be seized by
the United States to satisfy any civil penalties that are
imposed--
``(i) under subparagraph (C)(ii); or
``(ii) by a court for contempt under subparagraph (D).''.
(b) Fair Credit Reporting Act Amendment.--Section 604(a)(1)
of the Fair Credit Reporting Act (15 U.S.C. 1681b(a)(1)) is
amended--
(1) by striking ``, or a'' and inserting ``, a''; and
(2) by inserting ``, or a subpoena issued in accordance
with section 5318 of title 31, United States Code, or section
3486 of title 18, United States Code'' after ``grand jury''.
(c) Obstruction of Justice.--Section 1510(b)(3)(B) of title
18, United States Code, is amended--
(1) in the matter preceding clause (i), by striking ``or a
Department of Justice subpoena (issued under section 3486 of
title 18)'' and inserting ``, a subpoena issued under section
3486 of this title, or an order or subpoena issued in
accordance with section 3512 of this title, section 5318 of
title 31, or section 1782 of title 28''; and
(2) in clause (i), by inserting ``, 1960, an offense
against a foreign nation constituting specified unlawful
activity under section 1956, a foreign offense for which
enforcement of a foreign forfeiture judgment could be brought
under section 2467 of title 28'' after ``1957''.
(d) Right to Financial Privacy Act.--Section 1120(b)(1)(A)
of the Right to Financial Privacy Act of 1978 (12 U.S.C.
3420(b)(1)(A)) is amended--
(1) by striking ``or 1957 of title 18'' and inserting ``,
1957, or 1960 of title 18, United States Code''; and
(2) by striking ``and 5324 of title 31'' and inserting ``,
5322, 5324, 5331, and 5332 of title 31, United States Code''.
SEC. 5308. ADDITIONAL DAMAGES FOR REPEAT BANK SECRECY ACT
VIOLATORS.
Section 5321 of title 31, United States Code, is amended by
adding at the end the following:
``(f) Additional Damages for Repeat Violators.--In addition
to any other fines permitted under this section and section
5322, with respect to a person who has previously violated a
provision of (or rule issued under) this subchapter, section
21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b), or
section 123 of Public Law 91-508 (12 U.S.C. 1953), the
Secretary of the Treasury, if practicable, may impose an
additional civil penalty against such person for each
additional such violation in an amount that is not more than
the greater of--
``(1) if practicable to calculate, 3 times the profit
gained or loss avoided by such person as a result of the
violation; or
``(2) 2 times the maximum penalty with respect to the
violation.''.
SEC. 5309. CERTAIN VIOLATORS BARRED FROM SERVING ON BOARDS OF
UNITED STATES FINANCIAL INSTITUTIONS.
(a) In General.--Section 5321 of title 31, United States
Code, as amended by section 5308 of this division, is amended
by adding at the end the following:
``(g) Certain Violators Barred From Serving on Boards of
United States Financial Institutions.--
``(1) Definition.--In this subsection, the term `egregious
violation' means, with respect to an individual--
``(A) a criminal violation--
``(i) for which the individual is convicted; and
``(ii) for which the maximum term of imprisonment is more
than 1 year; and
``(B) a civil violation in which--
``(i) the individual willfully committed the violation; and
``(ii) the violation facilitated money laundering or the
financing of terrorism.
``(2) Bar.--An individual found to have committed an
egregious violation of the Bank Secrecy Act, as defined in
section 5003 of the Anti-Money Laundering Act of 2020, or any
rules issued under the Bank Secrecy Act, shall be barred from
serving on the board of directors of a United States
financial institution during the 10-year period that begins
on the date on which the conviction or judgment, as
applicable, with respect to the egregious violation is
entered.''.
(b) Rule of Construction.--Nothing in the amendment made by
subsection (a) shall be construed to limit the application of
section 19 of the Federal Deposit Insurance Act (12 U.S.C.
1829).
SEC. 5310. DEPARTMENT OF JUSTICE REPORT ON DEFERRED AND NON-
PROSECUTION AGREEMENTS.
(a) Annual Report.--Not later than 1 year after the date of
enactment of this Act, and for each of the 4 years
thereafter, the Attorney General shall submit to the
appropriate committees of Congress a report that contains--
(1) a list of deferred prosecution agreements and non-
prosecution agreements that the Attorney General has entered
into during the year covered by the report with any person
with respect to a violation or suspected violation of the
Bank Secrecy Act (referred to in this subsection as ``covered
agreements'');
(2) the justification for entering into each covered
agreement;
(3) the list of factors that were taken into account in
determining that the Attorney General should enter into each
covered agreement; and
(4) the extent of coordination the Attorney General
conducted with the Secretary of the Treasury, Federal
functional regulators, or State regulators before entering
into each covered agreement.
(b) Classified Annex.--Each report submitted under
subsection (a) may include a classified annex.
(c) Definition.--In this section, the term ``appropriate
committees of Congress'' means--
(1) the Committee on Banking, Housing, and Urban Affairs of
the Senate;
[[Page S3599]]
(2) the Committee on the Judiciary of the Senate;
(3) the Committee on Financial Services of the House of
Representatives; and
(4) the Committee on the Judiciary of the House of
Representatives.
SEC. 5311. RETURN OF PROFITS AND BONUSES.
(a) In General.--Section 5322 of title 31, United States
Code, is amended by adding at the end the following:
``(e) A person convicted of violating a provision of (or
rule issued under) the Bank Secrecy Act, as defined in
section 5003 of the Anti-Money Laundering Act of 2020,
shall--
``(1) in addition to any other fine under this section, be
fined in an amount that is equal to the profit gained by such
person by reason of such violation, as determined by the
court; and
``(2) if the person is an individual who was a partner,
director, officer, or employee of a financial institution at
the time the violation occurred, repay to such financial
institution any bonus paid to the individual during the
calendar year in which the violation occurred or the calendar
year after which the violation occurred.''.
(b) Rule of Construction.--The amendment made by subsection
(a) may not be construed to prohibit a financial institution
from requiring the repayment of a bonus paid to a partner,
director, officer, or employee if the financial institution
determines that the partner, director, officer, or employee
engaged in unethical, but non-criminal, activities.
SEC. 5312. PROHIBITION ON CONCEALMENT OF THE SOURCE OF ASSETS
IN MONETARY TRANSACTIONS.
(a) In General.--Subchapter II of chapter 53 of title 31,
United States Code, as amended by sections 5305(a)(1) and
5306(a) of this division, is amended by adding at the end the
following:
``Sec. 5335. Prohibition on concealment of the source of
assets in monetary transactions
``(a) Definition of Monetary Transaction.--In this section,
the term the term `monetary transaction'--
``(1) means the deposit, withdrawal, transfer, or exchange,
in or affecting interstate or foreign commerce, of funds or a
monetary instrument (as defined in section 1956(c)(5) of
title 18) by, through, or to a financial institution (as
defined in section 1956(c)(6) of title 18);
``(2) includes any transaction that would be a financial
transaction under section 1956(c)(4)(B) of title 18; and
``(3) does not include any transaction necessary to
preserve the right to representation of a person as
guaranteed by the Sixth Amendment to the Constitution of the
United States.
``(b) Prohibition.--No person shall knowingly conceal,
falsify, or misrepresent, or attempt to conceal, falsify, or
misrepresent, from or to a financial institution, a material
fact concerning the ownership or control of assets involved
in a monetary transaction if--
``(1) the person or entity who owns or controls the assets
is a senior foreign political figure, or any immediate family
member or close associate of a senior foreign political
figure, as set forth in this title or the regulations
promulgated under this title; and
``(2) the aggregate value of the assets involved in 1 or
more monetary transactions is not less than $1,000,000.
``(c) Source of Funds.--No person shall knowingly conceal,
falsify, or misrepresent, or attempt to conceal, falsify, or
misrepresent, from or to a financial institution, a material
fact concerning the source of funds in a monetary transaction
that--
``(1) involves an entity found to be a primary money
laundering concern under section 5318A or the regulations
promulgated under this title; and
``(2) violates the prohibitions or conditions prescribed
under section 5318A(b)(5) or the regulations promulgated
under this title.
``(d) Penalties.--A person convicted of an offense under
subsection (b) or (c), or a conspiracy to commit an offense
under subsection (b) or (c), shall be imprisoned for not more
than 10 years, fined not more than $1,000,000, or both.
``(e) Forfeiture.--
``(1) Criminal forfeiture.--
``(A) In general.--The court, in imposing a sentence under
subsection (d), shall order that the defendant forfeit to the
United States any property involved in the offense and any
property traceable thereto.
``(B) Procedure.--The seizure, restraint, and forfeiture of
property under this paragraph shall be governed by section
413 of the Controlled Substances Act (21 U.S.C. 853).
``(2) Civil forfeiture.--
``(A) In general.--Any property involved in a violation of
subsection (b) or (c), or a conspiracy to commit a violation
of subsection (b) or (c), and any property traceable thereto
may be seized and forfeited to the United States.
``(B) Procedure.--Seizures and forfeitures under this
paragraph shall be governed by the provisions of chapter 46
of title 18 relating to civil forfeitures, except that such
duties, under the customs laws described in section 981(d) of
title 18, given to the Secretary of the Treasury shall be
performed by such officers, agents, and other persons as may
be designated for that purpose by the Secretary of Homeland
Security or the Attorney General.''.
(b) Technical and Conforming Amendment.--The table of
sections for chapter 53 of title 31, United States Code, as
amended by sections 5305(b)(1) and 5306(b) of this division,
is amended by adding at the end the following:
``5335. Prohibition on concealment of the source of assets in monetary
================
SEC. 5313. UPDATING WHISTLEBLOWER INCENTIVES AND PROTECTION.
(a) Whistleblower Incentives and Protection.--
(1) In general.--Section 5323 of title 31, United States
Code, is amended to read as follows:
``Sec. 5323. Whistleblower incentives and protections
``(a) Definitions.--In this section:
``(1) Covered judicial or administrative action.--The term
`covered judicial or administrative action' means any
judicial or administrative action brought by the Secretary of
the Treasury (referred to in this section as the `Secretary')
or the Attorney General under this subchapter or subchapter
III that results in monetary sanctions exceeding $1,000,000.
``(2) Fund.--The term `Fund' means the Anti-Money
Laundering and Counter-Terrorism Financing Fund established
under subsection (g).
``(3) Monetary sanctions.--The term `monetary sanctions',
when used with respect to any judicial or administrative
action--
``(A) means any monies, including penalties, disgorgement,
and interest, ordered to be paid; and
``(B) does not include--
``(i) forfeiture;
``(ii) restitution; or
``(iii) any victim compensation payment.
``(4) Original information.--The term `original
information' means information that--
``(A) is derived from the independent knowledge or analysis
of a whistleblower;
``(B) is not known to the Secretary or the Attorney General
from any other source, unless the whistleblower is the
original source of the information; and
``(C) is not exclusively derived from an allegation made in
a judicial or administrative hearing, in a governmental
report, hearing, audit, or investigation, or from the news
media, unless the whistleblower is a source of the
information.
``(5) Related action.--The term `related action', when used
with respect to any judicial or administrative action brought
by the Secretary or the Attorney General under this
subchapter or subchapter III, means any judicial or
administrative action brought by an entity described in any
of subclauses (I) through (IV) of subsection (h)(4)(D)(i)
that is based upon the original information provided by a
whistleblower pursuant to subsection (b) that led to the
successful enforcement of the action by the Secretary or the
Attorney General.
``(6) Whistleblower.--
``(A) In general.--The term `whistleblower' means any
individual who provides, or 2 or more individuals acting
jointly who provide, information relating to a violation of
this subchapter or subchapter III to the Secretary or the
Attorney General, in a manner established, by rule or
regulation, by the Secretary, in consultation with the
Attorney General.
``(B) Special rule.--Solely for the purposes of subsection
(h)(1), the term `whistleblower' includes any individual who
takes, or 2 or more individuals acting jointly who take, an
action described in subsection (h)(1)(A).
``(b) Awards.--
``(1) In general.--In any covered judicial or
administrative action, or related action, the Secretary,
under regulations prescribed by the Secretary, in
consultation with the Attorney General and subject to
subsection (c), shall pay an award or awards to 1 or more
whistleblowers who voluntarily provided original information
to the Secretary or the Attorney General, as applicable, that
led to the successful enforcement of the covered judicial or
administrative action, or related action, in an aggregate
amount equal to--
``(A) not less than 10 percent, in total, of what has been
collected of the monetary sanctions imposed in the action or
related actions; and
``(B) not more than 30 percent, in total, of what has been
collected of the monetary sanctions imposed in the action or
related actions.
``(2) Payment of awards.--Any amount paid under paragraph
(1) shall be paid from the Fund.
``(c) Determination of Amount of Award; Denial of Award.--
``(1) Determination of amount of award.--
``(A) Discretion.--The determination of the amount of an
award made under subsection (b) shall be in the discretion of
the Secretary.
``(B) Criteria.--In determining the amount of an award made
under subsection (b), the Secretary--
``(i) shall take into consideration--
``(I) the significance of the information provided by the
whistleblower to the success of the covered judicial or
administrative action;
``(II) the degree of assistance provided by the
whistleblower and any legal representative of the
whistleblower in a covered judicial or administrative action;
[[Page S3600]]
``(III) the programmatic interest of the Department of the
Treasury in deterring violations of this subchapter and
subchapter III by making awards to whistleblowers who provide
information that lead to the successful enforcement of either
such subchapter; and
``(IV) such additional relevant factors as the Secretary,
in consultation with the Attorney General, may establish by
rule or regulation; and
``(ii) shall not take into consideration the balance of the
Fund.
``(2) Denial of award.--No award under subsection (b) may
be made--
``(A) to any whistleblower who is, or was at the time the
whistleblower acquired the original information submitted to
the Secretary or the Attorney General, as applicable, a
member, officer, or employee of--
``(i) an appropriate regulatory agency;
``(ii) the Department of the Treasury or the Department of
Justice; or
``(iii) a law enforcement agency;
``(B) to any whistleblower who is convicted of a criminal
violation related to the judicial or administrative action
for which the whistleblower otherwise could receive an award
under this section; or
``(C) to any whistleblower who fails to submit information
to the Secretary or the Attorney General, as applicable, in
such form as the Secretary, in consultation with the Attorney
General, may, by rule, require.
``(d) Representation.--
``(1) Permitted representation.--Any whistleblower who
makes a claim for an award under subsection (b) may be
represented by counsel.
``(2) Required representation.--
``(A) In general.--Any whistleblower who anonymously makes
a claim for an award under subsection (b) shall be
represented by counsel if the whistleblower anonymously
submits the information upon which the claim is based.
``(B) Disclosure of identity.--Before the payment of an
award, a whistleblower shall disclose the identity of the
whistleblower and provide such other information as the
Secretary may require, directly or through counsel for the
whistleblower.
``(e) No Contract Necessary.--No contract with the
Department of the Treasury is necessary for any whistleblower
to receive an award under subsection (b), unless otherwise
required by the Secretary by rule or regulation.
``(f) Appeals.--
``(1) In general.--Any determination made under this
section, including whether, to whom, or in what amount to
make awards, shall be in the discretion of the Secretary.
``(2) Requirements.--
``(A) In general.--Any determination described in paragraph
(1), except the determination of the amount of an award if
the award was made in accordance with subsection (b), may be
appealed to the appropriate court of appeals of the United
States not more than 30 days after the determination is
issued by the Secretary.
``(B) Scope of review.--The court to which a determination
by the Secretary is appealed under subparagraph (A) shall
review the determination in accordance with section 706 of
title 5.
``(g) Anti-money Laundering and Counter-terrorism Financing
Fund.--
``(1) Fund established.--There is established in the
Treasury of the United States a fund to be known as the
`Anti-Money Laundering and Counter-Terrorism Financing Fund'.
``(2) Use of fund.--The Fund shall be available to the
Secretary, without further appropriation or fiscal year
limitation, for paying awards to whistleblowers as provided
in subsection (b).
``(3) Deposits and credits.--
``(A) In general.--There shall be deposited into or
credited to the Fund an amount equal to--
``(i) any monetary sanction collected by the Secretary or
the Attorney General in any judicial or administrative action
brought by the applicable such official under this subchapter
or subchapter III; and
``(ii) all income from investments made under paragraph
(4).
``(B) Additional amounts.--If the amounts deposited into or
credited to the Fund under subparagraph (A) are not
sufficient to satisfy an award made under subsection (b),
there shall be deposited into or credited to the Fund an
amount equal to the unsatisfied portion of the award from any
monetary sanction collected by the Secretary or the Attorney
General, as applicable, in the covered judicial or
administrative action on which the award is based.
``(4) Investments.--
``(A) Amounts in fund may be invested.--The Secretary may
invest the portion of the Fund that is not, in the discretion
of the Secretary, required to meet the current needs of the
Fund.
``(B) Eligible investments.--Investments shall be made by
the Secretary in obligations of the United States or
obligations that are guaranteed as to principal and interest
by the United States, with maturities suitable to the needs
of the Fund, as determined by the Secretary.
``(C) Interest and proceeds credited.--The interest on, and
the proceeds from the sale or redemption of, any obligations
held in the Fund shall be credited to the Fund.
``(5) Reports to congress.--
``(A) In general.--Not later than October 30 of each fiscal
year beginning after the date of enactment of the Anti-Money
Laundering Act of 2020, the Secretary shall submit to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives a report on--
``(i) the whistleblower award program established under
this section, including--
``(I) a description of the number of awards granted; and
``(II) the types of cases in which awards were granted
during the preceding fiscal year;
``(ii) the balance of the Fund at the beginning of the
preceding fiscal year;
``(iii) the amounts deposited into or credited to the Fund
during the preceding fiscal year;
``(iv) the amount of earnings on investments made under
paragraph (4) during the preceding fiscal year;
``(v) the amount paid from the Fund during the preceding
fiscal year to whistleblowers pursuant to subsection (b);
``(vi) the balance of the Fund at the end of the preceding
fiscal year; and
``(vii) a complete set of audited financial statements,
including--
``(I) a balance sheet;
``(II) income statement; and
``(III) cash flow analysis.
``(B) Exception.--The Secretary may withhold any
information required to be reported under subparagraph (A) as
appropriate for any case involving national security or
privacy concerns.
``(h) Protection of Whistleblowers.--
``(1) Prohibition against retaliation.--No employer may,
directly or indirectly, discharge, demote, suspend, threaten,
harass, or in any other manner discriminate against a
whistleblower in the terms and conditions of employment
because of any lawful act done by the whistleblower--
``(A) in providing information to the Secretary or the
Attorney General in accordance with this section;
``(B) in initiating, testifying in, or assisting in any
investigation or judicial or administrative action of the
Department of the Treasury or the Department of Justice based
upon or related to the information described in subparagraph
(A); or
``(C) in providing information regarding any conduct that
the whistleblower reasonably believes constitutes a violation
of any law, rule, or regulation subject to the jurisdiction
of the Department of the Treasury, or a violation of section
1956, 1957, or 1960 of title 18 (or any rule or regulation
under any such provision), to--
``(i) a person with supervisory authority over the
whistleblower at the employer of the whistleblower; or
``(ii) another individual working for the employer
described in clause (i) who the whistleblower reasonably
believes has the authority to--
``(I) investigate, discover, or terminate the misconduct;
or
``(II) take any other action to address the misconduct.
``(2) Enforcement.--Any individual who alleges discharge or
other discrimination, or is otherwise aggrieved by an
employer, in violation of paragraph (1), may seek relief by--
``(A) filing a complaint with the Secretary of Labor in
accordance with the requirements of this subsection; or
``(B) if the Secretary of Labor has not issued a final
decision within 180 days of the filing of a complaint under
subparagraph (A), and there is no showing that such a delay
is due to the bad faith of the claimant, bringing an action
against the employer at law or in equity in the appropriate
district court of the United States, which shall have
jurisdiction over such an action without regard to the amount
in controversy.
``(3) Procedure.--
``(A) Department of labor complaint.--
``(i) In general.--Except as provided in clause (ii) and
subparagraph (C), the requirements under section 42121(b) of
title 49, including the legal burdens of proof described in
such section 42121(b), shall apply with respect to a
complaint filed under paragraph (2)(A) by an individual
against an employer.
``(ii) Exception.--With respect to a complaint filed under
paragraph (2)(A), notification required to be made under
section 42121(b)(1) of title 49 shall be made to each person
named in the complaint, including the employer.
``(B) District court complaint.--
``(i) Jury trial.--A party to an action brought under
paragraph (2)(B) shall be entitled to trial by jury.
``(ii) Statute of limitations.--
``(I) In general.--An action may not be brought under
paragraph (2)(B)--
``(aa) more than 6 years after the date on which the
violation of paragraph (1) occurs; or
``(bb) more than 3 years after the date on which when facts
material to the right of action are known, or reasonably
should have been known, by the employee alleging a violation
of paragraph (1).
``(II) Required action within 10 years.--Notwithstanding
subclause (I), an action under paragraph (2)(B) may not in
any circumstance be brought more than 10 years after the date
on which the violation occurs.
``(C) Relief.--Relief for an individual prevailing with
respect to a complaint filed under subparagraph (A) of
paragraph (2) or an action brought under subparagraph (B) of
that paragraph shall include--
``(i) reinstatement with the same seniority status that the
individual would have had,
[[Page S3601]]
but for the conduct that is the subject of the complaint or
action, as applicable;
``(ii) 2 times the amount of back pay otherwise owed to the
individual, with interest;
``(iii) the payment of compensatory damages, which shall
include compensation for litigation costs, expert witness
fees, and reasonable attorneys' fees; and
``(iv) any other appropriate remedy with respect to the
conduct that is the subject of the complaint or action, as
applicable.
``(4) Confidentiality.--
``(A) In general.--Except as provided in subparagraphs (C)
and (D), the Secretary or the Attorney General, as
applicable, and any officer or employee of the Department of
the Treasury or the Department of Justice, shall not disclose
any information, including information provided by a
whistleblower to either such official, which could reasonably
be expected to reveal the identity of a whistleblower, except
in accordance with the provisions of section 552a of title 5,
unless and until required to be disclosed to a defendant or
respondent in connection with a public proceeding instituted
by the appropriate such official or any entity described in
subparagraph (D).
``(B) Exempted statute.--For purposes of section 552 of
title 5, this paragraph shall be considered a statute
described in subsection (b)(3)(B) of such section 552.
``(C) Rule of construction.--Nothing in this section is
intended to limit, or shall be construed to limit, the
ability of the Attorney General to present such evidence to a
grand jury or to share such evidence with potential witnesses
or defendants in the course of an ongoing criminal
investigation.
``(D) Availability to government agencies.--
``(i) In general.--Without the loss of its status as
confidential in the hands of the Secretary or the Attorney
General, as applicable, all information referred to in
subparagraph (A) may, in the discretion of the appropriate
such official, when determined by that official to be
necessary to accomplish the purposes of this subchapter, be
made available to--
``(I) any appropriate Federal authority;
``(II) a State attorney general in connection with any
criminal investigation;
``(III) any appropriate State regulatory authority; and
``(IV) a foreign law enforcement authority.
``(ii) Confidentiality.--
``(I) In general.--Each of the entities described in
subclauses (I) through (III) of clause (i) shall maintain
such information as confidential in accordance with the
requirements established under subparagraph (A).
``(II) Foreign authorities.--Each entity described in
clause (i)(IV) shall maintain such information in accordance
with such assurances of confidentiality as determined by the
Secretary or Attorney General, as applicable.
``(5) Rights retained.--Nothing in this section shall be
deemed to diminish the rights, privileges, or remedies of any
whistleblower under any Federal or State law or under any
collective bargaining agreement.
``(6) Coordination with other provisions of law.--This
subsection shall not apply with respect to any employer that
is subject to section 33 of the Federal Deposit Insurance Act
(12 U.S.C. 1831j) or section 213 or 214 of the Federal Credit
Union Act (12 U.S.C. 1790b, 1790c).
``(i) Provision of False Information.--A whistleblower
shall not be entitled to an award under this section if the
whistleblower--
``(1) knowingly and willfully makes any false, fictitious,
or fraudulent statement or representation; or
``(2) uses any false writing or document knowing the
writing or document contains any false, fictitious, or
fraudulent statement or entry.
``(j) Rulemaking Authority.--The Secretary, in consultation
with the Attorney General, shall have the authority to issue
such rules and regulations as may be necessary or appropriate
to implement the provisions of this section consistent with
the purposes of this section.
``(k) Nonenforceability of Certain Provisions Waiving
Rights and Remedies or Requiring Arbitration of Disputes.--
``(1) Waiver of rights and remedies.--The rights and
remedies provided for in this section may not be waived by
any agreement, policy form, or condition of employment,
including by a predispute arbitration agreement.
``(2) Predispute arbitration agreements.--No predispute
arbitration agreement shall be valid or enforceable, if the
agreement requires arbitration of a dispute arising under
this section.''.
(b) Repeal of Section 5328 of Title 31.--Section 5328 of
title 31, United States Code, is repealed.
(c) Technical and Conforming Amendments.--The table of
sections for subchapter II of chapter 53 of title 31, United
States Code, is amended--
(1) by striking the item relating to section 5323 and
inserting the following:
================
(2) by striking the item relating to section 5328.
TITLE LIV--ESTABLISHING BENEFICIAL OWNERSHIP INFORMATION REPORTING
REQUIREMENTS
SEC. 5401. FINDINGS.
Congress finds the following:
(1) More than 2,000,000 corporations and limited liability
companies are being formed under the laws of the States each
year.
(2) Most or all States do not require information about the
beneficial owners of the corporations, limited liability
companies, or other similar entities formed under the laws of
the State.
(3) Malign actors seek to conceal their ownership of
corporations, limited liability companies, or other similar
entities in the United States to facilitate illicit activity,
including money laundering, the financing of terrorism,
proliferation financing, serious tax fraud, human and drug
trafficking, counterfeiting, piracy, securities fraud,
financial fraud, and acts of foreign corruption, harming the
national security interests of the United States and allies
of the United States.
(4) Money launderers and others involved in commercial
activity intentionally conduct transactions through corporate
structures in order to evade detection, and may layer such
structures, much like Russian nesting ``Matryoshka'' dolls,
across various secretive jurisdictions such that each time an
investigator obtains ownership records for a domestic or
foreign entity, the newly identified entity is yet another
corporate entity, necessitating a repeat of the same process.
(5) National security, intelligence, and law enforcement
investigations have been consistently impeded by an inability
to reliably and promptly obtain information identifying the
individuals who ultimately own corporations, limited
liability companies, or other similar entities suspected of
engaging in illicit activity, as documented in reports and
testimony by officials from the Department of Justice, the
Department of Homeland Security, the Department of the
Treasury, the Government Accountability Office, and other
agencies.
(6) In July 2006, the leading international anti-money
laundering standard-setting body, the Financial Action Task
Force on Money Laundering (in this section referred to as
``FATF''), of which the United States is a member, issued a
report that criticized the United States for failing to
comply with a FATF standard on the need to collect beneficial
ownership information and urged the United States to correct
this deficiency by July 2008.
(7) In December 2016, FATF issued another evaluation of the
United States, which found that little progress had been made
over the last 10 years to address this problem. FATF
identified the ``[l]ack of timely access to adequate,
accurate and current beneficial ownership (BO) information''
as a ``fundamental gap[]'' in efforts of the United States to
counter money laundering and the financing of terrorism.
(8) In contrast to practices in the United States, all 27
countries in the European Union are required to have
corporate registries that include beneficial ownership
information. The United Kingdom, its 3 crown dependencies,
and 14 overseas territories also require such registries.
(9) According to the 2020 National Strategy for Combating
Terrorist and other Illicit Finance issued by the Department
of the Treasury, ``Misuse of legal entities to hide a
criminal beneficial owner or illegal source of funds
continues to be a common, if not the dominant, feature of
illicit finance schemes, especially those involving money
laundering, predicate offences, tax evasion, and
proliferation financing.''.
(10) Federal legislation providing for the collection of
beneficial ownership information for corporations, limited
liability companies, or other similar entities formed under
the laws of the States is needed to--
(A) set a clear, Federal standard for incorporation
practices;
(B) protect vital Unites States national security
interests;
(C) protect interstate and foreign commerce;
(D) better enable critical national security, intelligence,
and law enforcement efforts to counter money laundering, the
financing of terrorism, and other illicit activity; and
(E) bring the United States into compliance with
international anti-money laundering and countering the
financing of terrorism standards.
SEC. 5402. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) beneficial ownership information collected under the
amendments made by this title is sensitive information and
will be directly available only to authorized government
authorities, subject to effective safeguards and controls,
to--
(A) facilitate important national security, intelligence,
and law enforcement activities; and
(B) confirm beneficial ownership information provided to
financial institutions to facilitate the compliance of the
institutions with customer due-diligence requirements under
applicable law;
(2) consistent with applicable law, the Secretary of the
Treasury shall--
(A) maintain the information described in paragraph (1) in
a secure, nonpublic database, using information security
methods and techniques that are appropriate to protect
nonclassified information systems at the highest security
level; and
(B) take all steps, including regular auditing, to ensure
that government authorities accessing beneficial ownership
information
[[Page S3602]]
do so only for authorized purposes consistent with this
section; and
(3) in prescribing regulations to provide for the reporting
of beneficial ownership information, the Secretary shall, to
the greatest extent practicable consistent with the purposes
of this title--
(A) seek to minimize burdens on reporting companies
associated with the collection of beneficial ownership
information;
(B) provide clarity to reporting companies concerning the
identification of their beneficial ownership; and
(C) collect information in a form and manner that is
reasonably designed to generate a database that is highly
useful to national security, intelligence, and law
enforcement agencies, and Federal functional regulators.
SEC. 5403. BENEFICIAL OWNERSHIP INFORMATION REPORTING
REQUIREMENTS.
(a) In General.--Subchapter II of chapter 53 of title 31,
United States Code, as amended by sections 5305(a)(1),
5306(a), and 5313(a) of this division, is amended by adding
at the end the following:
``Sec. 5336. Beneficial ownership information reporting
requirements
``(a) Definitions.--In this section:
``(1) Acceptable identification document.--The term
`acceptable identification document' means, with respect to
an individual--
``(A) a nonexpired passport issued by the United States;
``(B) a nonexpired identification document issued by a
State, local government, or Indian Tribe to the individual
acting for the purpose of identification of that individual;
``(C) a nonexpired driver's license issued by a State; or
``(D) if the individual does not have a document described
in subparagraph (A), (B), or (C), a nonexpired passport
issued by a foreign government.
``(2) Applicant.--The term `applicant' means any individual
who--
``(A) files an application to form a corporation, limited
liability company, or other similar entity under the laws of
a State or Indian Tribe; or
``(B) registers a corporation, limited liability company,
or other similar entity formed under the laws of a foreign
country to do business in a State by filing a document with
the secretary of state or similar office under the law of the
State.
``(3) Beneficial owner.--The term `beneficial owner'--
``(A) means, with respect to an entity, an individual who
directly or indirectly, through any contract, arrangement,
understanding, relationship, or otherwise--
``(i) exercises substantial control over the entity; or
``(ii) owns not less than 25 percent of the equity
interests of the entity; and
``(B) does not include--
``(i) a minor child, as defined in the State in which the
entity is formed, if the information of the parent or
guardian of the minor child is reported in accordance with
this section;
``(ii) an individual acting as a nominee, intermediary,
custodian, or agent on behalf of another individual;
``(iii) an individual acting solely as an employee of a
corporation, limited liability company, or other similar
entity and whose control over or economic benefits from such
entity is derived solely from the employment status of the
person;
``(iv) an individual whose only interest in a corporation,
limited liability company, or other similar entity is through
a right of inheritance; or
``(v) a creditor of a corporation, limited liability
company, or other similar entity, unless the creditor meets
the requirements of subparagraph (A).
``(4) Director.--The term `Director' means the Director of
FinCEN.
``(5) FinCEN.--The term `FinCEN' means the Financial Crimes
Enforcement Network of the Department of the Treasury.
``(6) FinCEN identifier.--The term `FinCEN identifier'
means the unique identifying number assigned by FinCEN to a
person under this section.
``(7) Foreign person.--The term `foreign person' means a
person who is not a United States person, as defined in
section 7701(a) of the Internal Revenue Code of 1986.
``(8) Indian tribe.--The term `Indian Tribe' has the
meaning given the term in section 102 of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5130).
``(9) Lawfully admitted for permanent residence.--The term
`lawfully admitted for permanent residence' has the meaning
given the term in section 101(a) of the Immigration and
Nationality Act (8 U.S.C. 1101(a)).
``(10) Pooled investment vehicle.--The term `pooled
investment vehicle' means--
``(A) any investment company, as defined in section 3(a) of
the Investment Company Act of 1940 (15 U.S.C. 80a-3(a)); or
``(B) any company that--
``(i) would be an investment company under that section but
for the exclusion provided from that definition by paragraph
(1) or (7) of section 3(c) of that Act (15 U.S.C. 80a-3(c));
and
``(ii) is identified by its legal name by the applicable
investment adviser in its Form ADV (or successor form) filed
with the Securities and Exchange Commission.
``(11) Reporting company.--The term `reporting company'--
``(A) means a corporation, limited liability company, or
other similar entity that is--
``(i) created by the filing of a document with a secretary
of state or a similar office under the law of a State or
Indian Tribe; or
``(ii) formed under the law of a foreign country and
registered to do business in a State by the filing of a
document with a secretary of state or a similar office under
the law of the State; and
``(B) does not include--
``(i) an issuer--
``(I) of a class of securities registered under section 12
of the Securities Exchange Act of 1934 (15 U.S.C. 78l); or
``(II) that is required to file supplementary and periodic
information under section 15(d) of the Securities Exchange
Act of 1934 (15 U.S.C. 78o(d));
``(ii) an entity--
``(I) established under the laws of the United States, an
Indian Tribe, a State, or a political subdivision of a State,
or under an interstate compact between 2 or more States; and
``(II) that exercises governmental authority on behalf of
the United States or any such Indian Tribe, State, or
political subdivision;
``(iii) a depository institution (as defined in section 3
of the Federal Deposit Insurance Act (12 U.S.C. 1813));
``(iv) a Federal credit union or a State credit union (as
those terms are defined in section 101 of the Federal Credit
Union Act (12 U.S.C. 1752));
``(v) a bank holding company (as defined in section 2 of
the Bank Holding Company Act of 1956 (12 U.S.C. 1841)), or a
savings and loan holding company (as defined in section 10(a)
of the Home Owners' Loan Act (12 U.S.C. 1467a(a)));
``(vi) a money transmitting business registered with the
Secretary of the Treasury under section 5330;
``(vii) a broker or dealer (as those terms are defined in
section 3 of the Securities Exchange Act of 1934 (15 U.S.C.
78c)), that is registered under section 15 of that Act (15
U.S.C. 78o);
``(viii) an exchange or clearing agency (as those terms are
defined in section 3 of the Securities Exchange Act of 1934
(15 U.S.C. 78c)) that is registered under section 6 or 17A of
that Act (15 U.S.C. 78f, 78q-1);
``(ix) any other entity not described in clause (i), (vii),
or (viii) that is registered with the Securities and Exchange
Commission under the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.);
``(x) a person that--
``(I) is an investment company (as defined in section 3 of
the Investment Company Act of 1940 (15 U.S.C. 80a-3)) or an
investment adviser (as defined in section 202 of the
Investment Advisers Act of 1940 (15 U.S.C. 80b-2)); and
``(II) is registered with the Securities and Exchange
Commission under the Investment Company Act of 1940 (15
U.S.C. 80a-1 et seq.) or the Investment Advisers Act of 1940
(15 U.S.C. 80b-1 et seq.);
``(xi) an investment adviser--
``(I) described in section 203(l) of the Investment
Advisers Act of 1940 (15 U.S.C. 80b-3(l)); and
``(II) that has filed the records required by the
Securities and Exchange Commission;
``(xii) an insurance company (as defined in section 2 of
the Investment Company Act of 1940 (15 U.S.C. 80a-2));
``(xiii)(I) a registered entity (as defined in section 1a
of the Commodity Exchange Act (7 U.S.C. 1a)); or
``(II) a person that is--
``(aa)(AA) a futures commission merchant, introducing
broker, swap dealer, major swap participant, commodity pool
operator, or commodity trading advisor (as those terms are
defined in section 1a of the Commodity Exchange Act (7 U.S.C.
1a)); or
``(BB) a retail foreign exchange dealer (as described in
that Act (7 U.S.C. 1)); and
``(bb) registered with the Commodity Futures Trading
Commission under the Commodity Exchange Act (7 U.S.C. 1 et
seq.);
``(xiv) a public accounting firm registered in accordance
with section 102 of the Sarbanes-Oxley Act of 2002 (15 U.S.C.
7212);
``(xv) a public utility that provides telecommunications
services, electrical power, natural gas, or water and sewer
services within the United States;
``(xvi) a financial market utility designated by the
Financial Stability Oversight Council under section 804 of
the Payment, Clearing, and Settlement Supervision Act of 2010
(12 U.S.C. 5463);
``(xvii) any pooled investment vehicle that is operated or
advised by a person described in clause (iii), (iv), (v),
(vii), (ix), (x), or (xii);
``(xviii) any--
``(I) organization which is described in section 501(c) of
the Internal Revenue Code of 1986 (determined without regard
to section 508(a)) and exempt from tax under section 501(a)
of such Code, except that in the case of any such
organization which loses an exemption from tax, such
organization shall be considered to be continued to be
described in this subclause for the 180-day period beginning
on the date of the loss of such tax-exempt status;
``(II) political organization (as defined in section
527(e)(1) of such Code) that is exempt from tax under section
527(a) of such Code; or
``(III) trust described in paragraph (1) or (2) of section
4947(a) of such Code;
``(xix) any corporation, limited liability company, or
other similar entity that--
``(I) operates exclusively to provide financial assistance
to, or hold governance rights over, any entity described in
clause (xviii);
``(II) is a United States person;
[[Page S3603]]
``(III) is beneficially owned or controlled exclusively by
1 or more United States persons that are United States
citizens or lawfully admitted for permanent residence; and
``(IV) derives at least a majority of its funding or
revenue, from 1 or more United States persons that are United
States citizens or lawfully admitted for permanent residence;
``(xx) any entity that--
``(I) employs more than 20 employees on a full-time basis
in the United States;
``(II) files income tax returns in the United States
demonstrating more than $5,000,000 in gross receipts or sales
in the aggregate, including the receipts or sales of--
``(aa) other entities owned by the entity; and
``(bb) other entities through which the entity operates;
and
``(III) has an operating presence at a physical office
within the United States;
``(xxi) any corporation, limited liability company, or
other similar entity owned, directly or indirectly, by 1 or
more entities described in clause (i), (ii), (iii), (iv),
(v), (vii), (viii), (ix), (x) , (xi), (xii), (xiii), (xiv),
(xv), (xvi), (xviii), or (xix);
``(xxii) any corporation, limited liability company, or
other similar entity--
``(I) in existence for over 1 year;
``(II) that is not engaged in active business;
``(III) that is not owned, directly or indirectly, by a
foreign person;
``(IV) that has not, in the preceding 12-month period,
experienced a change in ownership or sent or received funds
in an amount greater than $1,000 (including all funds sent to
or received from any source through a financial account or
accounts in which the entity, or an affiliate of the entity,
maintains an interest); and
``(V) that does not otherwise hold any kind or type of
assets, including an ownership interest in any corporation,
limited liability company, or other similar entity;
``(xxiii) any entity or class of entities that the
Secretary of the Treasury, with the written concurrence of
the Attorney General and the Secretary of Homeland Security,
has determined should be exempt from the requirements of
subsection (b) because requiring beneficial ownership
information from the entity or class of entities--
``(I) would not serve the public interest; and
``(II) would not be highly useful in national security,
intelligence, and law enforcement agency efforts to detect,
prevent, or prosecute money laundering, the financing of
terrorism, proliferation finance, serious tax fraud, or other
crimes.
``(12) State.--The term `State' means any State of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Commonwealth of the Northern Mariana
Islands, American Samoa, Guam, the United States Virgin
Islands, and any other commonwealth, territory, or possession
of the United States.
``(13) Unique identifying number.--The term `unique
identifying number' means, with respect to an individual or
an entity with a sole member, the unique identifying number
from an acceptable identification document.
``(14) United states person.--The term `United States
person' has the meaning given the term in section 7701(a) of
the Internal Revenue Code of 1986.
``(b) Beneficial Ownership Information Reporting.--
``(1) Reporting.--
``(A) In general.--In accordance with regulations
prescribed by the Secretary of the Treasury, each reporting
company shall submit to FinCEN a report that contains the
information described in paragraph (2).
``(B) Reporting of existing entities.--In accordance with
regulations prescribed by the Secretary of the Treasury, any
reporting company that has been formed before the effective
date of the regulations prescribed under this subsection
shall, in a timely manner, and not later than 2 years after
the effective date of the regulations prescribed under this
subsection, submit to FinCEN a report that contains the
information described in paragraph (2).
``(C) Reporting at time of formation.--In accordance with
regulations prescribed by the Secretary of the Treasury, any
reporting company that has been formed after the effective
date of the regulations promulgated under this subsection
shall, at the time of formation, submit to FinCEN a report
that contains the information described in paragraph (2).
``(D) Updated reporting for changes in beneficial
ownership.--In accordance with regulations prescribed by the
Secretary of the Treasury, a reporting company shall, in a
timely manner, and not later than 1 year after the date on
which there is a change with respect to any information
described in paragraph (2), submit to FinCEN a report that
updates the information relating to the change.
``(E) Treasury review of updated reporting for changes in
beneficial ownership.--The Secretary of the Treasury, in
consultation with the Attorney General and the Secretary of
Homeland Security, shall conduct a review to evaluate--
``(i) the necessity of a requirement for corporations,
limited liability companies, or other similar entities to
update the report on beneficial ownership information in
paragraph (2), related to a change in ownership, within a
shorter period of time than required under that subsection,
taking into account the updating requirements under
subparagraph (D) and the information contained in the
reports;
``(ii) the benefit to law enforcement and national security
officials that might be derived from, and the burden that a
requirement to update the list of beneficial owners within a
shorter period of time after a change in the list of
beneficial owners would impose on corporations, limited
liability companies, or other similar entities; and
``(iii) not later than 2 years after the date of enactment
of this section, incorporate into the regulations, as
appropriate, any changes necessary to implement the findings
and determinations based on the review required under this
subparagraph.
``(F) Regulation requirements.--In promulgating the
regulations prescribed in subparagraphs (A) through (D), the
Secretary of the Treasury shall endeavor, to the greatest
extent practicable--
``(i) to establish partnerships with State, local, and
Tribal governmental agencies.
``(ii) to collect information described in paragraph (2)
through existing Federal, State, and local processes and
procedures;
``(iii) to minimize burdens on reporting companies
associated with the collection of the information described
in paragraph (2) in light of the private compliance costs
placed on legitimate businesses;
``(iv) to collect information described in paragraph (2) in
a form and manner that ensures the information is highly
useful in--
``(I) facilitating important national security,
intelligence, and law enforcement activities; and
``(II) confirming beneficial ownership information provided
to financial institutions to facilitate the compliance of the
institutions with anti-money laundering, countering the
financing of terrorism, and customer due diligence
requirements under applicable law.
``(2) Required information.--
``(A) In general.--In accordance with regulations
prescribed by the Secretary of the Treasury, a report
delivered under paragraph (1) shall, except as provided in
subparagraph (B), identify each beneficial owner of the
applicable reporting company and each applicant with respect
to that reporting company by--
``(i) full legal name;
``(ii) date of birth;
``(iii) current, as of the date on which the report is
delivered, residential or business street address; and
``(iv)(I) unique identifying number from an acceptable
identification document; or
``(II) FinCEN identifier in accordance with requirements in
paragraph (3).
``(B) Reporting requirement for exempt entities having an
ownership interest.--If an exempt entity described in
subsection (a)(11)(B) has or will have a direct or indirect
ownership interest in a reporting company, the reporting
company and the applicant--
``(i) shall, with respect to the exempt entity, only list
the name of the exempt entity; and
``(ii) shall not be required to report the information with
respect to the exempt entity otherwise required under
subparagraph (A).
``(C) Reporting requirement for pooled investment
vehicles.--Any corporation, limited liability company, or
other similar entity that is an exempt entity described in
subsection (a)(11)(B)(xvii) and is formed under the laws of a
foreign country shall file with FinCEN a written
certification that provides identification information of an
individual that exercises substantial control over the pooled
investment vehicle in the same manner as required under this
subsection.
``(D) Reporting requirement for exempt subsidiaries.--Any
corporation, limited liability company, or other similar
entity that is an exempt entity described in subsection
(a)(11)(B)(xix), shall, in accordance with regulations issued
by the Secretary, submit to FinCEN a report containing the
information required under subparagraph (A) promptly after
the date on which the entity no longer meets the criteria
described in subsection (a)(11)(B)(xix), but in no case later
than 90 days after that date.
``(E) Reporting requirement for grandfathered exempt
entities.--Any corporation, limited liability company, or
other similar entity that is an exempt entity described in
subsection (a)(11)(B)(xxii), shall, in accordance with
regulations issued by the Secretary, submit to FinCEN a
report containing the information required under subparagraph
(A) promptly after the date on which the entity no longer
meets the criteria described in subsection (a)(11)(B)(xxii),
but in no case later than 90 days after such date.
``(3) FinCEN identifier.--
``(A) Issuance of fincen identifier.--
``(i) In general.--Upon request by an individual who has
provided FinCEN with the information described in paragraph
(2)(A) pertaining to the individual, or by an entity that has
reported its beneficial ownership information to FinCEN in
accordance with this section, FinCEN shall issue a FinCEN
identifier to such individual or entity.
``(ii) Updating of information.--An individual with a
FinCEN identifier shall submit filings with FinCEN pursuant
to paragraph (1) updating any information described in
paragraph (2) in a timely manner consistent with subparagraph
(D).
``(B) Use of fincen identifier for individuals.--Any person
required to report the information described in paragraph (2)
with respect to an individual may instead report the FinCEN
identifier of the individual.
[[Page S3604]]
``(C) Use of fincen identifier for entities.-- If an
individual is or may be a beneficial owner of a reporting
company by an interest held by the individual in an entity
that, directly or indirectly, holds an interest in the
reporting company, the reporting company may report the
FinCEN identifier of the entity in lieu of providing the
information required by paragraph (2)(A) with respect to the
individual.
``(4) Regulations.--The Secretary of the Treasury shall--
``(A) by regulation prescribe procedures and standards
governing any report under paragraph (2) and any FinCEN
identifier under paragraph (3); and
``(B) in promulgating the regulations under subparagraph
(A), endeavor, to the extent practicable, consistent with the
purposes of this section--
``(i) to minimize burdens on reporting companies associated
with the collection of beneficial ownership information; and
``(ii) to ensure the beneficial ownership information
reported to FinCEN is accurate, complete, and highly useful.
``(5) Effective date.--The requirements of this subsection
shall take effect on the effective date of the regulations
prescribed by the Secretary of the Treasury under this
subsection, which shall not be later than 1 year after the
date of enactment of this section.
``(c) Retention and Disclosure of Beneficial Ownership
Information by FinCEN.--
``(1) Retention of information.--Beneficial ownership
information required under subsection (b) relating to each
reporting company shall be maintained by FinCEN.
``(2) Disclosure.--
``(A) Prohibition.--Except as authorized by this subsection
and the protocols promulgated under this subsection,
beneficial ownership information reported under this section
shall be confidential and may not be disclosed by--
``(i) an officer or employee of the United States;
``(ii) an officer or employee of any State, local, or
Tribal agency; or
``(iii) an officer or employee of any financial institution
or regulatory agency receiving information under this
subsection.
``(B) Scope of disclosure by fincen.--FinCEN may disclose
beneficial ownership information reported pursuant to this
section only upon receipt of--
``(i) a request, through appropriate protocols--
``(I) from a Federal agency engaged in national security,
intelligence, or law enforcement activity; or
``(II) from a State, local, or Tribal law enforcement
agency, if a court of competent jurisdiction has authorized
the law enforcement agency to seek the information in a
criminal or civil investigation;
``(ii) a request from a Federal agency on behalf of a law
enforcement agency of another country, including a foreign
central authority or competent authority (or like
designation), under an international treaty, agreement, or
convention--
``(I) issued in response to a request for assistance in an
investigation by such foreign country;
``(II) that, except in a criminal case, prohibits the other
country from--
``(aa) publicly disclosing any beneficial ownership
information received; or
``(bb) using the information for any purpose other than the
authorized investigation or national security or intelligence
activity;
``(iii) a confirmation request made by a financial
institution subject to customer due diligence requirements,
with the consent of the reporting company, to facilitate the
compliance of the financial institution with customer due
diligence requirements under applicable law; or
``(iv) a request made by a Federal functional regulator or
other appropriate regulatory agency consistent with the
requirements of subparagraph (C).
``(C) Form and manner of disclosure to financial
institutions and regulatory agencies.--The Secretary of the
Treasury shall by regulation prescribe the form and manner in
which information shall be provided to a financial
institution under subparagraph (B)(iii), which shall include
that the information shall also be available to a Federal
functional regulator or other appropriate regulatory agency,
as determined by the Secretary, if the agency--
``(i) is authorized by law to assess, supervise, enforce,
or otherwise determine the compliance of the financial
institution with the requirements described in that
subparagraph;
``(ii) uses the information solely for the purpose of
conducting the assessment, supervision, or authorized
investigation or activity described in clause (i); and
``(iii) enters into an agreement with the Secretary
providing for appropriate protocols governing the safekeeping
of the information.
``(3) Appropriate protocols.--The Secretary of the Treasury
shall establish protocols described in paragraph (2)(A)
that--
``(A) protect the security and confidentiality of any
beneficial ownership information provided directly by the
Secretary of the Treasury;
``(B) require that beneficial ownership information be
provided to the requesting agency only upon written
certification that applicable requirements have been met, in
such form and manner as the Secretary of the Treasury may
prescribe that, at a minimum, states that the information is
relevant to an authorized investigation or activity described
in paragraph (2);
``(C) require the requesting agency to limit, to the
greatest extent practicable, the scope of information sought,
consistent with the purposes for seeking beneficial ownership
information;
``(D) restrict, to the satisfaction of the Secretary of the
Treasury, access to beneficial ownership information only to
users at the requesting agency--
``(i) who are authorized by agreement with the Secretary to
access the information;
``(ii) whose duties or responsibilities require such
access;
``(iii) who have undergone appropriate training; and
``(iv) who use appropriate identity verification mechanisms
to obtain access to the information;
``(E) require the requesting agency to maintain an
auditable trail of each request for beneficial ownership
information submitted to the Secretary of the Treasury by the
agency, including the reason for the request, the name of the
individual who made the request, the date of the request, and
any other information the Secretary of the Treasury
determines is appropriate;
``(F) require that the requesting agency receiving
beneficial ownership information from the Secretary of the
Treasury conduct an annual audit to verify that the
beneficial ownership information received from the Secretary
has been accessed and used appropriately, and in a manner
consistent with this paragraph; and
``(G) require the Secretary of the Treasury to conduct an
annual audit of the adherence of the agencies to the
protocols established under this paragraph to ensure that
agencies are requesting and using beneficial ownership
information appropriately.
``(4) Department of the treasury access.--
``(A) In general.--Beneficial ownership information shall
be accessible for inspection or disclosure to officers and
employees of Department of the Treasury whose official duties
require such inspection or disclosure subject to procedures
and safeguards prescribed by the Secretary of the Treasury.
``(B) Tax administration purposes.--Officers and employees
of the Department of the Treasury shall obtain access to
beneficial ownership information for tax administration
purposes in accordance with this subsection.
``(5) Rejection of request.--The Secretary of the
Treasury--
``(A) shall reject a request not submitted in the form and
manner prescribed by the Secretary under paragraph (2)(C);
and
``(B) may decline to provide information requested under
this subsection upon finding that--
``(i) the requesting agency has failed to meet any other
requirement of this subsection;
``(ii) the information is being requested for an unlawful
purpose; or
``(iii) other good cause exists to deny the request.
``(6) Suspension.--The Secretary of the Treasury may
suspend or debar a requesting agency from access for any of
the grounds set forth in paragraph (5), including for
repeated or serious violations of any requirement under
paragraph (2).
``(7) Security protections.--The Secretary of the Treasury
shall maintain information security protections, including
encryption, for information reported to FinCEN under
subsection (b) and ensure that the protections--
``(A) are consistent with standards and guidelines
developed under subchapter II of chapter 35 of title 44; and
``(B) incorporate Federal information system security
controls for high-impact systems, excluding national security
systems, consistent with applicable law to prevent the loss
of confidentiality, integrity, or availability of information
that may have a severe or catastrophic adverse effect.
``(8) Violation of protocols.--Any employee or officer of a
requesting agency under paragraph (2)(B) that violates the
protocols described in paragraph (3) shall be subject to
criminal and civil penalties under subsection (h)(3)(B).
``(d) Agency Coordination.--
``(1) In general.--The Secretary of the Treasury shall, to
the greatest extent practicable, update the information
described in subsection (b) by working collaboratively with
other relevant Federal, State, and Tribal agencies.
``(2) Information from relevant federal, state, and tribal
agencies.--Relevant Federal, State, and Tribal agencies, as
determined by the Secretary of the Treasury, shall, to the
extent practicable, and consistent with applicable legal
protections, cooperate with and provide information requested
by FinCEN for purposes of maintaining an accurate, complete,
and highly useful database for beneficial ownership
information.
``(3) Regulations.--The Secretary of the Treasury, in
consultation with the heads of other relevant Federal
agencies, may promulgate regulations as necessary to carry
out this subsection.
``(e) Notification of Federal Obligations.--
``(1) Federal.--The Secretary of the Treasury shall take
reasonable steps to provide notice to persons of their
obligations to report beneficial ownership information under
[[Page S3605]]
this section, including by causing appropriate informational
materials describing such obligations to be included in 1 or
more forms or other informational materials regularly
distributed by the Internal Revenue Service and FinCEN.
``(2) States and indian tribes.--
``(A) In general.--As a condition of the funds made
available under this section, each State and Indian Tribe
shall, not later than 2 years after the effective date of
regulations promulgated under subsection (b)(5), take the
following actions:
``(i) The secretary of a State or a similar office in each
State or Indian Tribe responsible for the establishment of
entities created by the filing of a public document with the
office under the law of the State or Indian Tribe shall
periodically, including at the time of any initial formation
or registration of an entity, assessment of an annual fee, or
renewal of any license to do business in the State or Indian
country and in connection with State or Indian Tribe
corporate tax assessments or renewals--
``(I) notify filers of their requirements as reporting
companies under this section, including the requirements to
file and update reports under subparagraphs (B) and (D) of
subsection (b)(1); and
``(II) provide the filers with a copy of the reporting
company form created by the Secretary of the Treasury under
this subsection or an internet link to that form.
``(ii) The secretary of a State or a similar office in each
State or Indian Tribe responsible for the establishment of
entities created by the filing of a public document with the
office under the law of the State or Indian Tribes shall
update the websites, forms relating to incorporation, and
physical premises of the office to notify filers of their
requirements as reporting companies under this section,
including providing an internet link to the reporting company
form created by the Secretary of the Treasury under this
section.
``(B) Notification from the department of the treasury.--A
notification under clause (i) or (ii) of subparagraph (A)
shall explicitly state that the notification is on behalf of
the Department of the Treasury for the purpose of preventing
money laundering, the financing of terrorism, proliferation
financing, serious tax fraud, and other financial crime by
requiring nonpublic registration of business entities formed
or registered to do business in the United States.
``(f) No Bearer Share Corporations or Limited Liability
Companies.--A corporation, limited liability company, or
other similar entity formed under the laws of a State or
Indian Tribe may not issue a certificate in bearer form
evidencing either a whole or fractional interest in the
entity.
``(g) Regulations.--In promulgating regulations carrying
out this section, the Director shall reach out to members of
the small business community and other appropriate parties to
ensure efficiency and effectiveness of the process for the
entities subject to the requirements of this section.
``(h) Penalties.--
``(1) Reporting violations.--It shall be unlawful for any
person to--
``(A) willfully provide, or attempt to provide, false or
fraudulent beneficial ownership information, including a
false or fraudulent identifying photograph or document, to
FinCEN in accordance with subsection (b); or
``(B) willfully fail to report complete or updated
beneficial ownership information to FinCEN in accordance with
subsection (b).
``(2) Unauthorized disclosure or use.--Except as authorized
by this section, it shall be unlawful for any person to
knowingly disclose or knowingly use the beneficial ownership
information obtained by the person through--
``(A) a report submitted to FinCEN under subsection (b); or
``(B) a disclosure made by FinCEN under subsection (c).
``(3) Criminal and civil penalties.--
``(A) Reporting violations.--Any person who violates
subparagraph (A) or (B) of paragraph (1)--
``(i) shall be liable to the United States for a civil
penalty of not more than $500 for each day that the violation
continues or has not been remedied; and
``(ii) may be fined not more than $10,000, imprisoned for
not more than 2 years, or both.
``(B) Unauthorized disclosure or use violations.--Any
person who violates paragraph (2)--
``(i) shall be liable to the United States for a civil
penalty of not more than $500 for each day that the violation
continues or has not been remedied; and
``(ii)(I) shall be fined not more than $250,000, or
imprisoned for not more than 5 years, or both; or
``(II) while violating another law of the United States or
as part of a pattern of any illegal activity involving more
than $100,000 in a 12-month period, shall be fined not more
than $500,000, imprisoned for not more than 10 years, or
both.
``(C) Safe harbor.--
``(i) Safe harbor.--
``(I) In general.--Except as provided in subclause (II), a
person shall not be subject to civil or criminal penalty
under subparagraph (A) if the person--
``(aa) has reason to believe that any report submitted by
the person in accordance with subsection (b) contains
inaccurate information; and
``(bb) in accordance with regulations issued by the
Secretary, voluntarily and promptly, and in no case later
than 90 days, submits a report containing corrected
information.
``(II) Exceptions.--A person shall not be exempt from
penalty under clause (i) if, at the time the person submits
the report required by subsection (b), the person--
``(aa) acts for the purpose of evading the reporting
requirements under subsection (b); and
``(bb) has actual knowledge that any information contained
in the report is inaccurate.
``(ii) Assistance.--FinCEN shall provide assistance to any
person seeking to submit a corrected report in accordance
with clause (i)(I).
``(4) User complaint process.--
``(A) In general.--The Inspector General of the Department
of the Treasury, in coordination with the Secretary of the
Treasury, shall provide public contact information to receive
external comments or complaints regarding the beneficial
ownership information notification and collection process or
regarding the accuracy, completeness, or timeliness of such
information.
``(B) Report.--The Inspector General of the Department of
the Treasury shall submit to Congress a periodic report
that--
``(i) summarizes external comments or complaints and
related investigations conducted by the Inspector General
related to the collection of beneficial ownership
information; and
``(ii) includes recommendations, in coordination with
FinCEN, to improve the form and manner of the notification,
collection and updating processes of the beneficial ownership
information reporting requirements to ensure the beneficial
ownership information reported to FinCEN is accurate,
complete, and highly useful.
``(5) Treasury office of inspector general investigation in
the event of a cybersecurity breach.--
``(A) In general.--In the event of a cybersecurity breach
that results in substantial unauthorized access and
disclosure of sensitive beneficial ownership information, the
Inspector General of the Department of the Treasury shall
conduct an investigation into FinCEN cybersecurity practices
that, to the extent possible, determines any vulnerabilities
within FinCEN information security and confidentiality
protocols and provides recommendations for fixing those
deficiencies.
``(B) Report.--The Inspector General of the Department of
the Treasury shall submit to the Secretary of the Treasury a
report on each investigation conducted under subparagraph
(A).
``(C) Actions of the secretary.--Upon receiving a report
submitted under subparagraph (B), the Secretary of the
Treasury shall--
``(i) determine whether the Director had any responsibility
for the cybersecurity breach or whether policies, practices,
or procedures implemented at the direction of the Director
led to the cybersecurity breach; and
``(ii) submit to Congress a written report outlining the
findings of the Secretary, including a determination by the
Secretary on whether to retain or dismiss the individual
serving as the Director.
``(6) Definition.--In this subsection, the term `willfully'
means the voluntary, intentional violation of a known legal
duty.
``(i) Continuous Review of Exempt Entities.--
``(1) In general.--On and after the effective date of the
regulations promulgated under this section, if the Secretary
of the Treasury makes a determination, which may be based on
information contained in the report required under section
5501(d) of the Anti-Money Laundering Act of 2020 or on any
other information available to the Secretary, that an entity
or class of entities in the list in subsection (a)(11)(B) has
been subject to significant abuse relating to money
laundering, the financing of terrorism, proliferation
finance, serious tax fraud, or other illicit activity, not
later than 90 days after the date on which the Secretary
makes the determination, the Secretary shall submit to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives a report that explains the reasons for the
determination and any administrative or legislative
recommendations to prevent such abuse.
``(2) Classified annex.--The report required by paragraph
(1)--
``(A) shall be submitted in unclassified form; and
``(B) may include a classified annex.''.
(b) Conforming Amendments.--Title 31, United States Code,
is amended--
(1) in section 5321(a)--
(A) in paragraph (1), by striking ``sections 5314 and
5315'' each place that term appears and inserting ``sections
5314, 5315, and 5336''; and
(B) in paragraph (6), by inserting ``(except section
5336)'' after ``subchapter'' each place that term appears;
and
(2) in section 5322, by striking ``section 5315 or 5324''
each place that term appears and inserting ``section 5315,
5324, or 5336''.
(3) in the table of sections for chapter 53, as amended by
sections 5305(b)(1), 5306(b), and 5312(b) of this division,
is amended by adding at the end the following:
================
[[Page S3606]]
(c) Reporting Requirements for Federal Contractors.--
(1) In general.--Not later than 2 years after the date of
the enactment of this Act, the Administrator for Federal
Procurement Policy shall revise the Federal Acquisition
Regulation maintained under section 1303(a)(1) of title 41,
United States Code, to require any contractor or
subcontractor who is subject to the requirement to disclose
beneficial ownership information under section 5336 of title
31, United States Code, as added by subsection (a) of this
section, to provide the information required to be disclosed
under such section to the Federal Government as part of any
bid or proposal for a contract with a value threshold in
excess of the simplified acquisition threshold under section
134 of title 41, United States Code.
(2) Applicability.--The revision required under paragraph
(1) shall not apply to a covered contractor or subcontractor,
as defined in section 847 of the National Defense
Authorization Act for Fiscal Year 2020 (Public Law 116-92),
that is subject to the beneficial ownership disclosure and
review requirements under that section.
(d) Revised Due Diligence Rulemaking.--
(1) In general.--Not later than 1 year after the effective
date of the regulations promulgated under section 5336(b)(5)
of title 31, United States Code, as added by subsection (a)
of this section, the Secretary shall revise the final rule
entitled ``Customer Due Diligence Requirements for Financial
Institutions''(81 Fed. Reg. 29397 (May 11, 2016)) to--
(A) bring the rule into conformance with this division and
the amendments made by this division;
(B) account for the access of financial institutions to
beneficial ownership information filed by reporting
companies, and provided in the form and manner prescribed by
the Secretary, to confirm the beneficial ownership
information provided directly to financial institutions to
facilitate the compliance of those institutions with anti-
money laundering, countering the financing of terrorism, and
customer due diligence requirements under applicable law; and
(C) reduce any burdens on financial institutions that are,
in light of the enactment of this division and the amendments
made by this division, unnecessary or duplicative.
(2) Considerations.--In fulfilling the requirements under
this subsection, the Secretary shall consider--
(A) the use of risk-based principles for requiring reports
of beneficial ownership information;
(B) the degree of reliance by financial institutions on
information provided by FinCEN for purposes of obtaining and
updating beneficial ownership information;
(C) strategies to improve the accuracy, completeness, and
timeliness of the beneficial ownership information reported
to the Secretary; and
(D) any other matter that the Secretary determines is
appropriate.
TITLE LV--MISCELLANEOUS
SEC. 5501. INVESTIGATIONS AND PROSECUTION OF OFFENSES FOR
VIOLATIONS OF THE SECURITIES LAWS.
(a) In General.--Section 21(d) of the Securities Exchange
Act of 1934 (15 U.S.C. 78u(d)) is amended--
(1) in paragraph (3)--
(A) in the paragraph heading--
(i) by inserting ``CIVIL'' before ``MONEY PENALTIES''; and
(ii) by striking ``IN CIVIL ACTIONS'' and inserting ``AND
AUTHORITY TO SEEK DISGORGEMENT'';
(B) in subparagraph (A), by striking ``jurisdiction to
impose'' and all that follows through the period at the end
and inserting the following: ``jurisdiction to--
``(i) impose, upon a proper showing, a civil penalty to be
paid by the person who committed such violation; and
``(ii) require disgorgement under paragraph (7) of any
unjust enrichment by the person who received such unjust
enrichment as a result of such violation.''; and
(C) in subparagraph (B)--
(i) in clause (i), in the first sentence, by striking ``the
penalty'' and inserting ``a civil penalty imposed under
subparagraph (A)(i)'';
(ii) in clause (ii), by striking ``amount of penalty'' and
inserting ``amount of a civil penalty imposed under
subparagraph (A)(i)''; and
(iii) in clause (iii), in the matter preceding item (aa),
by striking ``amount of penalty for each such violation'' and
inserting ``amount of a civil penalty imposed under
subparagraph (A)(i) for each violation described in that
subparagraph'';
(2) in paragraph (4), by inserting ``under paragraph (7)''
after ``funds disgorged''; and
(3) by adding at the end the following:
``(7) Disgorgement.--In any action or proceeding brought by
the Commission under any provision of the securities laws,
the Commission may seek, and any Federal court may order,
disgorgement.
``(8) Limitations periods.--
``(A) Disgorgement.--The Commission may bring a claim for
disgorgement under paragraph (7)--
``(i) not later than 5 years after the latest date of the
violation that gives rise to the action or proceeding in
which the Commission seeks the claim occurs; or
``(ii) not later than 10 years after the latest date of the
violation that gives rise to the action or proceeding in
which the Commission seeks the claim if the violation
involves conduct that violates section 10(b), section
17(a)(1) of the Securities Act of 1933 (15 U.S.C. 77q(a)(1)),
section 206(1) of the Investment Advisers Act of 1940 (15
U.S.C. 80b-6(1)), or any other provision of the securities
laws that requires scienter.
``(B) Equitable remedies.--The Commission may seek a claim
for any equitable remedy, including for an injunction or a
bar, suspension, or cease and desist order, not later than 10
years after the latest date on which a violation that gives
rise to the claim occurs.
``(C) Calculation.--For the purposes of calculating any
limitations period under this paragraph with respect to an
action or claim, any time in which the person against which
the action or claim, as applicable, is brought is outside of
the United States shall not count towards the accrual of that
period.
``(9) Rule of construction.--Nothing in paragraph (7) may
be construed as altering any right that any private party may
have to maintain a suit for a violation of this Act.''.
(b) Applicability.--The amendments made by subsection (a)
shall apply with respect to any action or proceeding that is
pending on, or commenced on or after, the date of enactment
of this Act.
SEC. 5502. GAO AND TREASURY STUDIES ON BENEFICIAL OWNERSHIP
INFORMATION REPORTING REQUIREMENTS.
(a) Effectiveness of Incorporation Practices Study.--Not
later than 2 years after the effective date of the
regulations promulgated under section 5336(b)(5) of title 31,
United States Code, as added by section 5403(a) of this
division, the Comptroller General of the United States shall
conduct a study and submit to the Congress a report assessing
the effectiveness of incorporation practices implemented
under this division, and the amendments made by this
division, in--
(1) providing national security, intelligence, and law
enforcement agencies with prompt access to reliable, useful,
and complete beneficial ownership information; and
(2) strengthening the capability of national security,
intelligence, and law enforcement agencies to--
(A) combat incorporation abuses and civil and criminal
misconduct; and
(B) detect, prevent, or prosecute money laundering, the
financing of terrorism, proliferation finance, serious tax
fraud, or other crimes.
(b) Using Technology to Avoid Duplicative Layers of
Reporting Obligations and Increase Accuracy of Beneficial
Ownership Information.--
(1) In general.--The Secretary, in consultation with the
Attorney General, shall conduct a study to evaluate--
(A) the effectiveness of using FinCEN identifiers, as
defined in section 5336 of title 31, United States Code, as
added by section 5403(a) of this division, or other
simplified reporting methods in order to facilitate a
simplified beneficial ownership regime for reporting
companies;
(B) whether a reporting regime whereby only company
shareholders are reported within the ownership chain of a
reporting company could effectively track beneficial
ownership information and increase information to law
enforcement;
(C) the costs associated with imposing any new verification
requirements on FinCEN; and
(D) the resources necessary to implement any such changes.
(2) Findings.--The Secretary shall submit to the relevant
committees of jurisdiction--
(A) the findings of the study conducted under paragraph
(1); and
(B) recommendations for carrying out the findings described
in subparagraph (A).
(c) Exempt Entities.--Not later than 2 years after the
effective date of regulations promulgated under section
5336(b)(5) of title 31, United States Code, as added by
section 5403(a) of this division, the Comptroller General of
the United States, in consultation with the Secretary,
Federal functional regulators, the Attorney General, the
Secretary of Homeland Security, and the intelligence
community, shall conduct a study and submit to Congress a
report that--
(1) reviews the regulated status, related reporting
requirements, quantity, and structure of each class of
corporations, limited liability companies, and similar
entities that have been explicitly excluded from the
definition of reporting company and the requirement to report
beneficial ownership information under section 5336 of title
31, United States Code, as added by section 5403(a) of this
division;
(2) assesses the extent to which any excluded entity or
class of entities described in paragraph (1) pose significant
risks of money laundering, the financing of terrorism,
proliferation finance, serious tax fraud, and other illicit
activity; and
(3) identifies other policy areas related to the risks of
exempt entities described in paragraph (1) for Congress to
consider as Congress is conducting oversight of the new
beneficial ownership information reporting requirements
established by this division and amendments made by this
division.
(d) Other Legal Entities Study.--Not later than 2 years
after the effective date of the regulations promulgated under
section 5336(b)(5) of title 31, United States Code, as added
by section 5403(a) of this division, the Comptroller General
of the United States shall conduct a study and submit to
Congress a report--
(1) identifying each State that has procedures that enable
persons to form or register under the laws of the State
partnerships,
[[Page S3607]]
trusts, or other legal entities, and the nature of those
procedures;
(2) identifying each State that requires persons seeking to
form or register partnerships, trusts, or other legal
entities under the laws of the State to provide beneficial
owners (as defined in section 5336(a) of title 31, United
States Code, as added by section 5403 of this division) or
beneficiaries of those entities, and the nature of the
required information;
(3) evaluating whether the lack of available beneficial
ownership information for partnerships, trusts, or other
legal entities--
(A) raises concerns about the involvement of those entities
in terrorism, money laundering, tax evasion, securities
fraud, or other misconduct; and
(B) has impeded investigations into entities suspected of
the misconduct described in subparagraph (A);
(4) evaluating whether the failure of the United States to
require beneficial ownership information for partnerships and
trusts formed or registered in the United States has elicited
international criticism; and
(5) what steps, if any, the United States has taken, is
planning to take, or should take in response to the criticism
described in paragraph (4).
SEC. 5503. GAO STUDY ON FEEDBACK LOOPS.
(a) Definition.--In this section, the term ``feedback
loop'' means feedback provided by the United States
Government to relevant parties.
(b) Study.--The Comptroller General of the United States
shall conduct a study on--
(1) best practices within the United States Government for
feedback loops, including regulated private entities, on the
usage and usefulness of personally identifiable information,
sensitive-but-unclassified data, or similar information
provided by the parties to United States Government users of
the information and data, including law enforcement agencies
and regulators; and
(2) any practice or standard inside or outside the United
States for providing feedback through sensitive information
and public-private partnership information sharing efforts,
specifically related to efforts to combat money laundering
and other forms of illicit finance.
(c) Report.--Not later than 18-months after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a report
containing--
(1) all findings and determinations made in carrying out
the study required under subsection (b);
(2) with respect to each of paragraphs (1) and (2) of
subsection (b), any best practice or significant concern
identified by the Comptroller General, and the applicability
to public-private partnerships and feedback loops with
respect to efforts by the United States Government to combat
money laundering and other forms of illicit finance; and
(3) recommendations of the Comptroller General to reduce or
eliminate any unnecessary collection by the United States
Government of the information described in subsection (b)(1).
SEC. 5504. GAO STUDY ON FIGHTING ILLICIT NETWORKS AND
DETECTING HUMAN TRAFFICKING AND DRUG
TRAFFICKING.
(a) Findings.--Congress finds the following:
(1) According to the Drug Enforcement Administration 2018
National Drug Threat Assessment, transnational criminal
organizations are increasingly using virtual currencies.
(2) In the 2015 National Money Laundering Risk Assessment,
the Department of the Treasury has recognized, ``The
development of virtual currencies is an attempt to meet a
legitimate market demand. According to a Federal Reserve Bank
of Chicago economist, U.S. consumers want payment options
that are versatile and that provide immediate finality. No
U.S. payment method meets that description, although cash may
come closest. Virtual currencies can mimic cash's immediate
finality and anonymity and are more versatile than cash for
online and cross-border transactions, making virtual
currencies vulnerable for illicit transactions.''.
(3) In the 2018 National Money Laundering Risk Assessment,
the Department of the Treasury concluded, ``To the extent
that virtual currencies are able to provide the same level of
anonymity as physical cash, they create an even greater risk
because virtual currencies can be transmitted and used
globally. In addition to providing another means to pay for
contraband or illicit services, virtual currencies also are
now being used in the layering stage of money laundering to
disguise the origin of illicit proceeds.''.
(4) Virtual currencies may be increasingly used,
facilitated by online marketplaces, to pay for goods and
services associated with human trafficking and drug
trafficking.
(5) Online marketplaces, including the dark web, are
becoming a prominent platform to buy, sell, and advertise for
illicit goods and services associated with human trafficking
and drug trafficking.
(6) According to the International Labour Organization, in
2016, 4,800,000 people in the world were victims of forced
sexual exploitation, and in 2014, the global profit from
commercial sexual exploitation was $99,000,000,000.
(7) In 2016, within the United States, the Centers for
Disease Control and Prevention estimated that there were
64,000 deaths related to drug overdose, and the most severe
increase in drug overdoses were those associated with
synthetic opioids, including fentanyl and fentanyl analogs,
which amounted to over 20,000 overdose deaths.
(8) According to 2018 National Money Laundering Risk
Assessment, an estimated $100,000,000,000 is generated
annually from United States drug trafficking sales.
(9) Illegal fentanyl in the United States originates
primarily from China, and it is readily available to purchase
through online marketplaces.
(b) Definition of Human Trafficking.--In this section, the
term ``human trafficking'' has the meaning given the term
``severe forms of trafficking in persons'' in section 103 of
the Trafficking Victims Protection Act of 2000 (22 U.S.C.
7102).
(c) GAO Study.--The Comptroller General of the United
States shall conduct a study on how a range of payment
systems and methods, including virtual currencies in online
marketplaces, are used to facilitate human trafficking and
drug trafficking, which shall consider--
(1) how online marketplaces, including the dark web, may be
used as platforms to buy, sell, or facilitate the financing
of goods or services associated with human trafficking or
drug trafficking, specifically, opioids and synthetic
opioids, including fentanyl, fentanyl analogs, and any
precursor chemical associated with manufacturing fentanyl or
fentanyl analogs, destined for, originating from, or within
the United States;
(2) how financial payment methods, including virtual
currencies and peer-to-peer mobile payment services, may be
utilized by online marketplaces to facilitate the buying,
selling, or financing of goods and services associated with
human trafficking or drug trafficking destined for,
originating from, or within the United States;
(3) how virtual currencies may be used to facilitate the
buying, selling, or financing of goods and services
associated with human trafficking or drug trafficking,
destined for, originating from, or within the United States,
when an online platform is not otherwise involved;
(4) how illicit funds that have been transmitted online and
through virtual currencies are repatriated into the formal
banking system of the United States through money laundering
or other means;
(5) the participants, including state and non-state actors,
throughout the entire supply chain that may participate in or
benefit from the buying, selling, or financing of goods and
services associated with human trafficking or drug
trafficking, including through online marketplaces or using
virtual currencies, destined for, originating from, or within
the United States;
(6) Federal and State agency efforts to impede the buying,
selling, or financing of goods and services associated with
human trafficking or drug trafficking destined for,
originating from, or within the United States, including
efforts to prevent the proceeds from human trafficking or
drug trafficking from entering the United States banking
system;
(7) how virtual currencies and their underlying
technologies can be used to detect and deter these illicit
activities; and
(8) to what extent immutability and traceability of virtual
currencies can contribute to the tracking and prosecution of
illicit funding.
(d) Report to Congress.--Not later than 1 year after the
date of enactment of this Act, the Comptroller General of the
United States shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives a report--
(1) summarizing the results of the study required under
subsection (c); and
(2) that contains any recommendations for legislative or
regulatory action that would improve the efforts of Federal
agencies to impede the use of virtual currencies and online
marketplaces in facilitating human trafficking and drug
trafficking.
SEC. 5505. TREASURY STUDY AND REPORT ON TRADE-BASED MONEY
LAUNDERING.
(a) Study Required.--
(1) In general.--The Secretary shall carry out a study, in
consultation with appropriate private sector stakeholders,
academic and other international trade experts, and Federal
agencies, on trade-based money laundering.
(2) Contracting authority.--The Secretary may enter into a
contract with a private third-party entity to carry out the
study required by paragraph (1).
(b) Report Required.--
(1) In general.--Not later than 1 year after the date of
the enactment of this Act, the Secretary shall submit to
Congress a report that includes--
(A) all findings and determinations made in carrying out
the study required by subsection (a); and
(B) proposed strategies to combat trade-based money
laundering.
(2) Classified annex.--The report required by paragraph
(1)--
(A) shall be submitted in unclassified form; and
(B) may include a classified annex.
SEC. 5506. TREASURY STUDY AND STRATEGY ON MONEY LAUNDERING BY
THE PEOPLE'S REPUBLIC OF CHINA.
(a) Study.--The Secretary shall carry out a study, which
shall rely substantially on information obtained through the
trade-based
[[Page S3608]]
money laundering analyses conducted by the Comptroller
General of the United States, on--
(1) the extent and effect of illicit finance risk relating
to the Government of the People's Republic of China and
Chinese firms, including financial institutions;
(2) an assessment of the illicit finance risks emanating
from the People's Republic of China;
(3) those risks allowed, directly or indirectly, by the
Government of the People's Republic of China, including those
enabled by weak regulatory or administrative controls of that
government; and
(4) the ways in which the increasing amount of global trade
and investment by the Government of the People's Republic of
China and Chinese firms exposes the international financial
system to increased risk relating to illicit finance.
(b) Strategy to Counter Chinese Money Laundering.--Upon the
completion of the study required under subsection (a), the
Secretary, in consultation with such other Federal agencies
as the Secretary determines appropriate, shall develop a
strategy to combat Chinese money laundering activities.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Congress
a report containing--
(1) all findings and determinations made in carrying out
the study required under subsection (a); and
(2) the strategy developed under subsection (b).
SEC. 5507. TREASURY AND JUSTICE STUDY ON THE EFFORTS OF
AUTHORITARIAN REGIMES TO EXPLOIT THE FINANCIAL
SYSTEM OF THE UNITED STATES.
(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Secretary and the Attorney
General, in consultation with the heads of other relevant
national security, intelligence, and law enforcement
agencies, shall conduct a study and submit to Congress a
report that considers how authoritarian regimes in foreign
countries and their proxies use the financial system of the
United States to--
(1) conduct political influence operations;
(2) sustain kleptocratic methods of maintaining power;
(3) export corruption;
(4) fund nongovernmental organizations, media
organizations, or academic initiatives in the United States
to advance the interests of those regimes; and
(5) otherwise undermine democratic governance in the United
States and the partners and allies of the United States.
(b) Report.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall submit to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives a report that contains--
(1) the results of the study required under subsection (a);
and
(2) any recommendations for legislative or regulatory
action, or steps to be taken by United States financial
institutions, that would address exploitation of the
financial system of the United States by foreign
authoritarian regimes.
SEC. 5508. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Subsection (l) of section 310, of title
31, United States Code, as redesignated by section 5103(1) of
this division, is amended by striking paragraph (1) and
inserting the following:
``(1) In general.--There are authorized to be appropriated
to FinCEN to carry out this section, to remain available
until expended--
``(A) $126,000,000 for fiscal year 2020;
``(B) $50,000,000 for fiscal year 2021; and
``(C) $25,000,000 for each of fiscal years 2022 through
2025.''.
(b) Beneficial Ownership Information Reporting
Requirements.--Section 5336 of title 31, United States Code,
as added by section 5403(a) of this division, is amended by
adding at the end the following:
``(i) Authorization of Appropriations.--There are
authorized to be appropriated to FinCEN for each of the 3
fiscal years beginning on the effective date of the
regulations promulgated under subsection (b)(5), such sums as
may be necessary to carry out this section, including
allocating funds to the States to pay reasonable costs
relating to compliance with the requirements of such
section.''.
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