[Congressional Record Volume 168, Number 124 (Tuesday, July 26, 2022)]
[House]
[Pages H7126-H7127]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TIMELY DELIVERY OF BANK SECRECY ACT REPORTS ACT
Ms. WATERS. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 7734) to amend title 31, United States Code, to require the
timely production of reports to Congress under the Bank Secrecy Act,
and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 7734
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Timely Delivery of Bank
Secrecy Act Reports Act''.
SEC. 2. TIMELY PRODUCTION OF BANK SECRECY ACT REPORTS TO
CONGRESS.
Section 5319 of title 31, United States Code, is amended--
(1) by striking ``The Secretary of the Treasury'' and
inserting the following:
``(a) In General.--The Secretary of the Treasury''; and
(2) by adding at the end the following:
``(b) Timely Production of Reports to Congress.--
``(1) Production by the secretary.--Upon the request of the
congressional committees or subcommittees of appropriate
jurisdiction for any report filed under this subchapter, the
Secretary of the Treasury shall deliver the requested report
to the committee or subcommittee not later than 30 days after
such request is made.
``(2) Production by a financial institution pursuant to a
subpoena.--Upon subpoena by the congressional committees or
subcommittees of appropriate jurisdiction, a financial
institution shall deliver a report filed under this
subchapter by the financial institution, and any information
on which such report is based, to the committee or
subcommittee not later than the return date specified for
such report in the subpoena.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
California (Ms. Waters) and the gentlewoman from Missouri (Mrs. Wagner)
each will control 20 minutes.
The Chair recognizes the gentlewoman from California.
{time} 1715
General Leave
Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
on this legislation and to insert extraneous material thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from California?
There was no objection.
Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, suspicious activity reports and other materials,
collectively known as ``BSA reports,'' are held by Treasury's Financial
Crimes Enforcement Network, or FinCEN, and can be critical to
congressional investigations. For example, this committee has requested
documents related to our ongoing investigation into the flow of illicit
funds from the former Soviet states into the United States.
There is a long history of cooperation on the proper exchange of
these records, but in response to a recent Treasury-initiated reversal
of decades-long practice, I have found it necessary to introduce this
bill, H.R. 7734.
Unfortunately, Treasury has severely restricted congressional access
to suspicious activity reports, or SARs, by requiring congressional
staff to review all material in a reading room, prohibiting the copying
of materials, and restricting information collection to notetaking
alone. These limitations are not placed upon the Federal, State, and
local agencies that have been granted access to review SARs.
Treasury has no statutory basis for imposing restrictions on
congressional authority to obtain SARs. Neither legislative language,
statutory provision, nor case law prohibits government personnel or the
financial institutions from providing these materials to Congress.
I am very concerned that these restrictions and similar alternatives
offered by Treasury will severely impede effective congressional
oversight and investigations. In response to my committee's recent
request to review SARs related to the flow of illicit funds from former
Soviet states into the United States, FinCEN has informed the committee
that it is withholding thousands of pages of responsive documents
containing technical, detailed information about multiple transactions
involving numerous parties. Given the restrictions imposed by Treasury,
it is not possible for my staff to effectively capture and analyze
needed information in such complex documents. It will be even more
difficult for Members to review such materials.
Treasury's refusal to produce the documents in the manner requested
has severely obstructed the committee's investigation of this important
matter. To ensure that Congress can conduct effective oversight moving
forward, I have introduced this bill, and I am pleased to say that it
passed our committee on a bipartisan basis.
H.R. 7734 requires the Secretary of the Treasury to deliver BSA
reports to a congressional committee or subcommittee of appropriate
jurisdiction within 30 days of its request for such documents. The bill
further requires a financial institution to deliver BSA reports by the
return date specified in a subpoena issued by a committee or
subcommittee of appropriate jurisdiction.
I urge my colleagues to support this bill to ensure that Congress can
obtain access to BSA reports without cumbersome restrictions and can do
so in a timely manner to support its investigatory work.
Mr. Speaker, I reserve the balance of my time.
Mrs. WAGNER. Mr. Speaker, I yield myself such time as I may consume.
I rise in support of H.R. 7734, which increases transparency and
restores a strong record of cooperation with the Treasury Department.
H.R. 7734 would require prompt delivery of certain Bank Secrecy Act
reports to the committees of Congress that rely on those records for
oversight and legislative work.
[[Page H7127]]
Under Secretary Yellen, the Treasury Department has taken an
unprecedented position that Congress cannot have access to Bank Secrecy
Act reports. This should concern all of us on both sides of the aisle.
For the last 20 years, FinCEN has provided BSA reports to the
appropriate committees of Congress without delay. FinCEN must
understand that this is not a partisan matter.
I look forward to continuing to work with my Democratic colleagues to
promote accountability at Treasury and to restore Article I oversight
authority.
I support this bill, and I urge my colleagues to support it.
Mr. Speaker, I reserve the balance of my time.
Ms. WATERS. Mr. Speaker, I have no further speakers, and I reserve
the balance of my time.
Mrs. WAGNER. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from Tennessee (Mr. Rose), my colleague on the Financial Services
Committee.
Mr. ROSE. Mr. Speaker, I thank the gentlewoman for yielding time this
evening.
Mr. Speaker, I rise in opposition to H.R. 7734, which would require
the Treasury Secretary, upon the request of Congress, to deliver Bank
Secrecy Act, or BSA, reports within 30 days to congressional staff.
Additionally, it would create a similar requirement for financial
institutions to share BSA filings with Congress.
Currently, SARs, or suspicious activity reports, may be viewed by
congressional staff in a reading room at Treasury. Due to the sensitive
nature of these reports, congressional staff are prohibited from
copying the materials and taking them away from Treasury or FinCEN.
There have been several high-profile leaks of SARs over the past few
years. In one instance, a FinCEN employee, who was later sentenced to 6
months in prison, leaked thousands of SARs to BuzzFeed News.
This legislation would increase the number of individuals who have
access to hard copies of these reports and will lead to more leaks, I
fear, of sensitive information.
Having served on a community bank board, I know how subjective SARs
can be, and I fear that this information will put our entire system in
jeopardy.
Mr. Speaker, I urge my colleagues to oppose this legislation.
Mrs. WAGNER. Mr. Speaker, I urge my colleagues to support H.R. 7734,
and I yield back the balance of my time.
Ms. WATERS. Mr. Speaker, I yield myself the balance of my time.
Treasury's refusal to give Congress reasonable access to SARs is
severely impeding our ability to effectively make use of the materials
to conduct investigations.
Treasury has no statutory basis for imposing such restrictions and
has offered no rationale for changing the current practice, which has
been in place for over 20 years.
H.R. 7734 clarifies the existing statutory authority of Congress and
ensures that Congress continues to obtain timely access to BSA reports
without restrictions.
Mr. Speaker, I urge my colleagues to support this bill, and I yield
back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from California (Ms. Waters) that the House suspend the
rules and pass the bill, H.R. 7734, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. CLYDE. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.
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