[House Report 116-247]
[From the U.S. Government Publishing Office]


116th Congress    }                                           {    Report
                         HOUSE OF REPRESENTATIVES
 1st Session      }                                           {   116-247

======================================================================

 
  PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 2513) TO ENSURE THAT 
  PERSONS WHO FORM CORPORATIONS OR LIMITED LIABILITY COMPANIES IN THE 
 UNITED STATES DISCLOSE THE BENEFICIAL OWNERS OF THOSE CORPORATIONS OR 
   LIMITED LIABILITY COMPANIES, IN ORDER TO PREVENT WRONGDOERS FROM 
 EXPLOITING UNITED STATES CORPORATIONS AND LIMITED LIABILITY COMPANIES 
FOR CRIMINAL GAIN, TO ASSIST LAW ENFORCEMENT IN DETECTING, PREVENTING, 
    AND PUNISHING TERRORISM, MONEY LAUNDERING, AND OTHER MISCONDUCT 
 INVOLVING UNITED STATES CORPORATIONS AND LIMITED LIABILITY COMPANIES, 
                         AND FOR OTHER PURPOSES

                                _______
                                

  October 21, 2019.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

             Mr. Perlmutter, from the Committee on Rules, 
                        submitted the following

                              R E P O R T

                       [To accompany H. Res. 646]

    The Committee on Rules, having had under consideration 
House Resolution 646, by a record vote of 9 to 4, report the 
same to the House with the recommendation that the resolution 
be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 2513, the 
Corporate Transparency Act of 2019, under a structured rule. 
The resolution provides one hour of general debate on the bill 
equally divided and controlled by the chair and ranking 
minority member of the Committee on Financial Services. The 
resolution waives all points of order against consideration of 
the bill. The resolution provides that the amendment in the 
nature of a substitute recommended by the Committee on 
Financial Services now printed in the bill, modified by the 
amendment printed in Part A of this report, shall be considered 
as adopted and the bill as amended shall be considered as read. 
The resolution waives all points of order against provisions in 
H.R. 2513, as amended. The resolution makes in order only those 
amendments printed in Part B of this report. Each such 
amendment may be offered only in the order printed in this 
report, may be offered only by a Member designated in this 
report, shall be considered as read, shall be debatable for the 
time specified in this report equally divided and controlled by 
the proponent and an opponent, shall not be subject to 
amendment, and shall not be subject to a demand for division of 
the question in the House or in the Committee of the Whole. The 
resolution waives all points of order against the amendments 
printed in Part B of this report. The resolution provides one 
motion to recommit with or without instructions.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
H.R. 2513 includes waivers of the following:
           Clause 12(a)(1) of rule XXI, which prohibits 
        consideration of a bill unless there is a searchable 
        electronic comparative print that shows how the bill 
        proposes to change current law.
           Clause 12(b) of rule XXI, which prohibits 
        consideration of a bill unless there is a searchable 
        electronic comparative print that shows how the text of 
        the bill as proposed to be considered differs from the 
        text of the bill as reported.
           Clause 10 of rule XXI, which prohibits 
        consideration of a measure that has a net effect of 
        increasing the deficit or reducing the surplus over the 
        five- or 10-year period; however, the budgetary effects 
        of the bill are fully offset over the 10-year period.
           Section 302(f) of the Congressional Budget 
        Act, which prohibits consideration of legislation 
        providing new budget authority in excess of a 302(a) or 
        302(b) allocation of such authority.
    Although the resolution waives all points of order against 
provisions in H.R. 2513, as amended, the Committee is not aware 
of any points of order. The waiver is prophylactic in nature.
    Although the resolution waives all points of order against 
the amendments printed in part B of this report, the Committee 
is not aware of any points of order. The waiver is prophylactic 
in nature.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 180

    Motion by Mr. Cole to report an open rule. Defeated: 4-9

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. Hastings....................................          Nay   Mr. Cole..........................          Yea
Mrs. Torres.....................................          Nay   Mr. Woodall.......................          Yea
Mr. Perlmutter..................................          Nay   Mr. Burgess.......................          Yea
Mr. Raskin......................................          Nay   Mrs. Lesko........................          Yea
Ms. Scanlon.....................................          Nay
Mr. Morelle.....................................          Nay
Ms. Shalala.....................................          Nay
Mr. DeSaulnier..................................          Nay
Mr. McGovern, Chairman..........................          Nay
----------------------------------------------------------------------------------------------------------------

Rules Committee record vote No. 181

    Motion by Mr. Perlmutter to report the rule. Adopted: 9-4

----------------------------------------------------------------------------------------------------------------
                Majority Members                      Vote               Minority Members               Vote
----------------------------------------------------------------------------------------------------------------
Mr. Hastings....................................          Yea   Mr. Cole..........................          Nay
Mrs. Torres.....................................          Yea   Mr. Woodall.......................          Nay
Mr. Perlmutter..................................          Yea   Mr. Burgess.......................          Nay
Mr. Raskin......................................          Yea   Mrs. Lesko........................          Nay
Ms. Scanlon.....................................          Yea
Mr. Morelle.....................................          Yea
Ms. Shalala.....................................          Yea
Mr. DeSaulnier..................................          Yea
Mr. McGovern, Chairman..........................          Yea
----------------------------------------------------------------------------------------------------------------

 SUMMARY OF THE AMENDMENT TO H.R. 2513 IN PART A CONSIDERED AS ADOPTED

    1. Waters (CA): Adds the text of H.R. 2514, ``The COUNTER 
Act of 2019,'' into the underlying bill and makes necessary 
conforming and technical changes. H.R. 2514 closes significant 
loopholes that are commonly abused by bad actors and will make 
it harder for terrorists, traffickers, corrupt officials, and 
other criminals to hide, launder, move, and use their illicitly 
gained assets. H.R. 2514 also imposes new penalties for 
egregious acts and creates a whistleblower program to encourage 
those who identify bad actors, among other matters.

     SUMMARY OF THE AMENDMENTS TO H.R. 2513 IN PART B MADE IN ORDER

    1. Burgess (TX): Requires an annual report to Congress of 
anonymized data on the number of beneficial owners per 
reporting corporation or LLC, the industry of each reporting 
corporation or LLC, and the location of the beneficial owners. 
(10 minutes)
    2. Hill, French (AR): Requires FinCEN to develop a regime 
by which entities may gain access to the beneficial ownership 
database. Also requires FinCEN to report to Congress annually 
on: 1) the number of times law enforcement, banks, or other 
third parties have accessed the beneficial ownership database; 
2) the number of times the database was inappropriately 
accessed; and 3) the number of subpoenas obtained to gain 
access to the database. (10 minutes)
    3. Brown (MD): Adds refresher training no less than every 2 
years for local, Tribal, State, or Federal law enforcement 
agencies who have access to beneficial ownership information to 
ensure the privacy of beneficial owners. (10 minutes)
    4. Levin, Andy (MI): Ensures FinCEN may use the information 
obtained by this bill to notify industry and the public about 
criminal trends, while maintaining safeguards on personal 
privacy. (10 minutes)
    5. Davidson (OH): Strikes the bill's reporting mandate on 
small businesses, terminates the Customer Due Diligence Rule, 
and requires Treasury to conduct a study about all existing 
federal information databases available to law enforcement to 
discern the beneficial ownership of companies. (10 minutes)

      PART A--TEXT OF AMENDMENT TO H.R. 2513 CONSIDERED AS ADOPTED

  Page 3, before line 3, insert the following:

             DIVISION A--CORPORATE TRANSPARENCY ACT OF 2019

  Page 3, line 4, strike ``This Act'' and insert the following:

  (a) In General.--This Act

  Page 3, after line 5, insert the following:

  (b) References to This Act.--In this division--
          (1) any reference to ``this Act'' shall be deemed a 
        reference to ``this division''; and
          (2) except as otherwise expressly provided, any 
        reference to a section or other provision shall be 
        deemed a reference to that section or other provision 
        of this division.

  Page 26, after line 23, insert the following (and redesignate 
subsequent clauses accordingly):

                          ``(xvi) any pooled investment vehicle 
                        that is operated or advised by a person 
                        described in clause (iii), (iv), (v), 
                        (vi), (viii), (ix), or (xi);''.

  Page 30, strike line 20 and all that follows through page 32, 
line 8, and insert the following:

  (b) Authorization of Appropriations.--There is authorized to 
be appropriated $20,000,000 for each of fiscal years 2020 and 
2021 to the Financial Crimes Enforcement Network to carry out 
this Act and the amendments made by this Act.

  Add at the end the following:

                    DIVISION B--COUNTER ACT OF 2019

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Coordinating 
Oversight, Upgrading and Innovating Technology, and Examiner 
Reform Act of 2019'' or the ``COUNTER Act of 2019''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

                     DIVISION B--COUNTER ACT OF 2019

Sec. 1. Short title; table of contents.
Sec. 2. Bank Secrecy Act definition.

                     TITLE I--STRENGTHENING TREASURY

Sec. 101. Improving the definition and purpose of the Bank Secrecy Act.
Sec. 102. Special hiring authority.
Sec. 103. Civil Liberties and Privacy Officer.
Sec. 104. Civil Liberties and Privacy Council.
Sec. 105. International coordination.
Sec. 106. Treasury Attaches Program.
Sec. 107. Increasing technical assistance for international cooperation.
Sec. 108. FinCEN Domestic Liaisons.
Sec. 109. FinCEN Exchange.
Sec. 110. Study and strategy on trade-based money laundering.
Sec. 111. Study and strategy on de-risking.
Sec. 112. AML examination authority delegation study.
Sec. 113. Study and strategy on Chinese money laundering.

                  TITLE J--IMPROVING AML/CFT OVERSIGHT

Sec. 201. Pilot program on sharing of suspicious activity reports within 
          a financial group.
Sec. 202. Sharing of compliance resources.
Sec. 203. GAO Study on feedback loops.
Sec. 204. FinCEN study on BSA value.
Sec. 205. Sharing of threat pattern and trend information.
Sec. 206. Modernization and upgrading whistleblower protections.
Sec. 207. Certain violators barred from serving on boards of United 
          States financial institutions.
Sec. 208. Additional damages for repeat Bank Secrecy Act violators.
Sec. 209. Justice annual report on deferred and non-prosecution 
          agreements.
Sec. 210. Return of profits and bonuses.
Sec. 211. Application of Bank Secrecy Act to dealers in antiquities.
Sec. 212. Geographic targeting order.
Sec. 213. Study and revisions to currency transaction reports and 
          suspicious activity reports.
Sec. 214. Streamlining requirements for currency transaction reports and 
          suspicious activity reports.

                   TITLE K--MODERNIZING THE AML SYSTEM

Sec. 301. Encouraging innovation in BSA compliance.
Sec. 302. Innovation Labs.
Sec. 303. Innovation Council.
Sec. 304. Testing methods rulemaking.
Sec. 305. FinCEN study on use of emerging technologies.
Sec. 306. Discretionary surplus funds.
  (c) References to This Act.--In this division--
          (1) any reference to ``this Act'' shall be deemed a 
        reference to ``this division''; and
          (2) except as otherwise expressly provided, any 
        reference to a section or other provision shall be 
        deemed a reference to that section or other provision 
        of this division.

SEC. 2. BANK SECRECY ACT DEFINITION.

  Section 5312(a) of title 31, United States Code, is amended 
by adding at the end the following:
          ``(7) Bank secrecy act.--The term `Bank Secrecy act' 
        means--
                  ``(A) section 21 of the Federal Deposit 
                Insurance Act;
                  ``(B) chapter 2 of title I of Public Law 91-
                508; and
                  ``(C) this subchapter.''.

                    TITLE I--STRENGTHENING TREASURY

SEC. 101. IMPROVING THE DEFINITION AND PURPOSE OF THE BANK SECRECY ACT.

  Section 5311 of title 31, United States Code, is amended--
          (1) by inserting ``to protect our national security, 
        to safeguard the integrity of the international 
        financial system, and'' before ``to require''; and
          (2) by inserting ``to law enforcement and'' before 
        ``in criminal''.

SEC. 102. SPECIAL HIRING AUTHORITY.

  (a) In General.--Section 310 of title 31, United States Code, 
is amended--
          (1) by redesignating subsection (d) as subsection 
        (g); and
          (2) by inserting after subsection (c) the following:
  ``(d) 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 pursuant to 
        paragraph (1) shall be to provide substantive support 
        in support of the duties described in subparagraphs 
        (A), (B), (E), and (F) of subsection (b)(2).''.
  (b) Report.--Not later than 360 days after the date of 
enactment of this Act, and every year thereafter for 7 years, 
the Director of the Financial Crimes Enforcement Network shall 
submit a report to the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate that includes--
          (1) the number of new employees hired since the 
        preceding report through the authorities described 
        under section 310(d) of title 31, United States Code, 
        along with position titles and associated pay grades 
        for such hires; and
          (2) a copy of any Federal Government survey of staff 
        perspectives at the Office of Terrorism and Financial 
        Intelligence, including findings regarding the Office 
        and the Financial Crimes Enforcement Network from the 
        most recently administered Federal Employee Viewpoint 
        Survey.

SEC. 103. CIVIL LIBERTIES AND PRIVACY OFFICER.

  (a) Appointment of Officers.--Not later than the end of the 
3-month period beginning on the date of enactment of this Act, 
a Civil Liberties and Privacy Officer shall be appointed, from 
among individuals who are attorneys with expertise in data 
privacy laws--
          (1) within each Federal functional regulator, by the 
        head of the Federal functional regulator;
          (2) within the Financial Crimes Enforcement Network, 
        by the Secretary of the Treasury; and
          (3) within the Internal Revenue Service Small 
        Business and Self-Employed Tax Center, by the Secretary 
        of the Treasury.
  (b) Duties.--Each Civil Liberties and Privacy Officer shall, 
with respect to the applicable regulator, Network, or Center 
within which the Officer is located--
          (1) be consulted each time Bank Secrecy Act or anti-
        money laundering regulations affecting civil liberties 
        or privacy are developed or reviewed;
          (2) be consulted on information-sharing programs, 
        including those that provide access to personally 
        identifiable information;
          (3) ensure coordination and clarity between anti-
        money laundering, civil liberties, and privacy 
        regulations;
          (4) contribute to the evaluation and regulation of 
        new technologies that may strengthen data privacy and 
        the protection of personally identifiable information 
        collected by each Federal functional regulator; and
          (5) develop metrics of program success.
  (c) Definitions.--For purposes of this section:
          (1) Bank secrecy act.--The term ``Bank Secrecy Act'' 
        has the meaning given that term under section 5312 of 
        title 31, United States Code.
          (2) Federal functional regulator.--The term ``Federal 
        functional regulator'' means the Board of Governors of 
        the Federal Reserve System, the Comptroller of the 
        Currency, the Federal Deposit Insurance Corporation, 
        the National Credit Union Administration, the 
        Securities and Exchange Commission, and the Commodity 
        Futures Trading Commission.

SEC. 104. CIVIL LIBERTIES AND PRIVACY COUNCIL.

  (a) Establishment.--There is established the Civil Liberties 
and Privacy Council (hereinafter in this section referred to as 
the ``Council''), which shall consist of the Civil Liberties 
and Privacy Officers appointed pursuant to section 103.
  (b) Chair.--The Director of the Financial Crimes Enforcement 
Network shall serve as the Chair of the Council.
  (c) Duty.--The members of the Council shall coordinate on 
activities related to their duties as Civil Liberties Privacy 
Officers, but may not supplant the individual agency 
determinations on civil liberties and privacy.
  (d) Meetings.--The meetings of the Council--
          (1) shall be at the call of the Chair, but in no case 
        may the Council meet less than quarterly;
          (2) may include open and partially closed sessions, 
        as determined necessary by the Council; and
          (3) shall include participation by public and private 
        entities and law enforcement agencies.
  (e) Report.--The Chair of the Council shall issue an annual 
report to the Congress on the program and policy activities, 
including the success of programs as measured by metrics of 
program success developed pursuant to section 103(b)(5), of the 
Council during the previous year and any legislative 
recommendations that the Council may have.
  (f) Nonapplicability of FACA.--The Federal Advisory Committee 
Act (5 U.S.C. App.) shall not apply to the Council.

SEC. 105. INTERNATIONAL COORDINATION.

  (a) In General.--The Secretary of the Treasury shall work 
with the Secretary's foreign counterparts, including through 
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, and the United Nations, to promote stronger 
anti-money laundering frameworks and enforcement of anti-money 
laundering laws.
  (b) Cooperation Goal.--In carrying out subsection (a), the 
Secretary of the Treasury may work directly with foreign 
counterparts and other organizations where the goal of 
cooperation can best be met.
  (c) International Monetary Fund.--
          (1) Support for capacity of the international 
        monetary fund to prevent money laundering and financing 
        of terrorism.--Title XVI of the International Financial 
        Institutions Act (22 U.S.C. 262p et seq.) is amended by 
        adding at the end the following:

``SEC. 1629. SUPPORT FOR CAPACITY OF THE INTERNATIONAL MONETARY FUND TO 
                    PREVENT MONEY LAUNDERING AND FINANCING OF 
                    TERRORISM.

  ``The Secretary of the Treasury shall instruct the United 
States Executive Director at the International Monetary Fund to 
support the increased use of the administrative budget of the 
Fund for technical assistance that strengthens the capacity of 
Fund members to prevent money laundering and the financing of 
terrorism.''.
          (2) National advisory council report to congress.--
        The Chairman of the National Advisory Council on 
        International Monetary and Financial Policies shall 
        include in the report required by section 1701 of the 
        International Financial Institutions Act (22 U.S.C. 
        262r) a description of--
                  (A) the activities of the International 
                Monetary Fund in the most recently completed 
                fiscal year to provide technical assistance 
                that strengthens the capacity of Fund members 
                to prevent money laundering and the financing 
                of terrorism, and the effectiveness of the 
                assistance; and
                  (B) 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.
          (3) Sunset.--Effective on the date that is the end of 
        the 4-year period beginning on the date of enactment of 
        this Act, section 1629 of the International Financial 
        Institutions Act, as added by paragraph (1), is 
        repealed.

SEC. 106. TREASURY ATTACHES PROGRAM.

  (a) In General.--Title 31, United States Code, is amended by 
inserting after section 315 the following:

``Sec. 316. Treasury Attaches Program

  ``(a) In General.--There is established the Treasury Attaches 
Program, under which the Secretary of the Treasury shall 
appoint employees of the Department of the Treasury, after 
nomination by the Director of the Financial Crimes Enforcement 
Network (`FinCEN'), as a Treasury attache, who shall--
          ``(1) be knowledgeable about the Bank Secrecy Act and 
        anti-money laundering issues;
          ``(2) be co-located in a United States embassy;
          ``(3) perform outreach with respect to Bank Secrecy 
        Act and anti-money laundering issues;
          ``(4) establish and maintain relationships with 
        foreign counterparts, including employees of ministries 
        of finance, central banks, and other relevant official 
        entities;
          ``(5) conduct outreach to local and foreign financial 
        institutions and other commercial actors, including--
                  ``(A) information exchanges through FinCEN 
                and FinCEN programs; and
                  ``(B) soliciting buy-in and cooperation for 
                the implementation of--
                          ``(i) United States and multilateral 
                        sanctions; and
                          ``(ii) international standards on 
                        anti-money laundering and the 
                        countering of the financing of 
                        terrorism; and
          ``(6) perform such other actions as the Secretary 
        determines appropriate.
  ``(b) Number of Attaches.--The number of Treasury 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 
March 1, 2019.
  ``(c) Compensation.--Each Treasury attache appointed under 
this section and located at a United States embassy shall 
receive compensation at the higher of--
          ``(1) the rate of compensation provided to a Foreign 
        Service officer at a comparable career level serving at 
        the same embassy; or
          ``(2) the rate of compensation the Treasury attache 
        would otherwise have received, absent the application 
        of this subsection.
  ``(d) Bank Secrecy Act Defined.--In this section, the term 
`Bank Secrecy Act' has the meaning given that term under 
section 5312.''.
  (b) Clerical Amendment.--The table of contents for chapter 3 
of title 31, United States Code, is amended by inserting after 
the item relating to section 315 the following:

``316. Treasury Attaches Program.''.

SEC. 107. INCREASING TECHNICAL ASSISTANCE FOR INTERNATIONAL 
                    COOPERATION.

  (a) In General.--There is authorized to be appropriated for 
each of fiscal years 2020 through 2024 to the Secretary of the 
Treasury for purposes of providing technical assistance that 
promotes compliance with international standards and best 
practices, including in particular those aimed at the 
establishment of effective anti-money laundering and countering 
the financing of terrorism regimes, in an amount equal to twice 
the amount authorized for such purpose for fiscal year 2019.
  (b) Activity and Evaluation Report.--Not later than 360 days 
after enactment of this Act, and every year thereafter for five 
years, the Secretary of the Treasury shall issue a report to 
the Congress on the assistance (as described under subsection 
(a)) of the Office of Technical Assistance of the Department of 
the Treasury containing--
          (1) a narrative detailing the strategic goals of the 
        Office in the previous year, with an explanation of how 
        technical assistance provided in the previous year 
        advances the goals;
          (2) a description of technical assistance provided by 
        the Office in the previous year, including the 
        objectives and delivery methods of the assistance;
          (3) a list of beneficiaries and providers (other than 
        Office staff) of the technical assistance;
          (4) a description of how 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 under section 1701(c) of the 
        International Financial Institutions Act); and
          (5) a copy of any Federal Government survey of staff 
        perspectives at the Office of Technical Assistance, 
        including any findings regarding the Office from the 
        most recently administered Federal Employee Viewpoint 
        Survey.

SEC. 108. FINCEN DOMESTIC LIAISONS.

  Section 310 of title 31, United States Code, as amended by 
section 102, is further amended by inserting after subsection 
(d) the following:
  ``(e) FinCEN Domestic Liaisons.--
          ``(1) In general.--The Director of FinCEN shall 
        appoint at least 6 senior FinCEN employees as FinCEN 
        Domestic Liaisons, who shall--
                  ``(A) each be assigned to focus on a specific 
                region of the United States;
                  ``(B) 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); and
                  ``(C) perform outreach to BSA officers at 
                financial institutions (including non-bank 
                financial institutions) and persons who 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.
          ``(2) Definitions.--In this subsection:
                  ``(A) BSA officer.--The term `BSA officer' 
                means an employee of a financial institution 
                whose primary job responsibility involves 
                compliance with the Bank Secrecy Act, as such 
                term is defined under section 5312.
                  ``(B) Financial institution.--The term 
                `financial institution' has the meaning given 
                that term under section 5312.''.

SEC. 109. FINCEN EXCHANGE.

  Section 310 of title 31, United States Code, as amended by 
section 108, is further amended by inserting after subsection 
(e) the following:
  ``(f) FinCEN Exchange.--
          ``(1) Establishment.--The FinCEN Exchange is hereby 
        established within FinCEN, which shall consist of the 
        FinCEN Exchange program of FinCEN in existence on the 
        day before the date of enactment of this paragraph.
          ``(2) Purpose.--The FinCEN Exchange shall facilitate 
        a voluntary public-private information sharing 
        partnership among law enforcement, financial 
        institutions, and FinCEN to--
                  ``(A) effectively and efficiently combat 
                money laundering, terrorism financing, 
                organized crime, and other financial crimes;
                  ``(B) protect the financial system from 
                illicit use; and
                  ``(C) promote national security.
          ``(3) Report.--
                  ``(A) In general.--Not later than one year 
                after the date of enactment of this subsection, 
                and annually thereafter for the next five 
                years, the Secretary of the Treasury shall 
                submit to the Committee on Financial Services 
                of the House of Representatives and the 
                Committee on Banking, Housing, and Urban 
                Affairs of the Senate a report containing--
                          ``(i) an analysis of the efforts 
                        undertaken by the FinCEN Exchange and 
                        the results of such efforts;
                          ``(ii) an analysis of the extent and 
                        effectiveness of the FinCEN Exchange, 
                        including any benefits realized by law 
                        enforcement from partnership with 
                        financial institutions; and
                          ``(iii) any legislative, 
                        administrative, or other 
                        recommendations the Secretary may have 
                        to strengthen FinCEN Exchange efforts.
                  ``(B) Classified annex.--Each report under 
                subparagraph (A) may include a classified 
                annex.
          ``(4) Information sharing requirement.--Information 
        shared pursuant to this subsection shall be shared in 
        compliance with all other applicable Federal laws and 
        regulations.
          ``(5) Rule of construction.--Nothing under this 
        subsection may be construed to create new information 
        sharing authorities related to the Bank Secrecy Act (as 
        such term is defined under section 5312 of title 31, 
        United States Code).
          ``(6) Financial institution defined.--In this 
        subsection, the term `financial institution' has the 
        meaning given that term under section 5312.''.

SEC. 110. STUDY AND STRATEGY ON TRADE-BASED MONEY LAUNDERING.

  (a) Study.--The Secretary of the Treasury shall carry out a 
study, in consultation with appropriate private sector 
stakeholders and Federal departments and agencies, on trade-
based money laundering.
  (b) Report.--Not later than the end of the 1-year period 
beginning on the date of the enactment of this Act, the 
Secretary shall issue a report to the Congress containing--
          (1) all findings and determinations made in carrying 
        out the study required under subsection (a); and
          (2) proposed strategies to combat trade-based money 
        laundering.
  (c) Classified Annex.--The report required under this section 
may include a classified annex.
  (d) Contracting Authority.--The Secretary may contract with a 
private third-party to carry out the study required under this 
section. The authority of the Secretary to enter into contracts 
under this subsection shall be in effect for each fiscal year 
only to the extent and in the amounts as are provided in 
advance in appropriations Acts.

SEC. 111. STUDY AND STRATEGY ON DE-RISKING.

  (a) Review.--The Secretary of the Treasury, in consultation 
with appropriate private sector stakeholders, examiners, and 
the Federal functional regulators (as defined under section 
103) and other relevant stakeholders, shall undertake a formal 
review of--
          (1) any adverse consequences of financial 
        institutions de-risking entire categories of 
        relationships, including charities, embassy accounts, 
        money services businesses (as defined under section 
        1010.100(ff) of title 31, Code of Federal Regulations) 
        and their agents, countries, international and domestic 
        regions, and respondent banks;
          (2) the reasons why financial institutions are 
        engaging in de-risking;
          (3) the association with and effects of de-risking on 
        money laundering and financial crime actors and 
        activities;
          (4) 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--
                  (A) more effectively tailor Federal actions 
                and penalties to the size of foreign financial 
                institutions and any capacity limitations of 
                foreign governments; and
                  (B) reduce compliance costs that may lead to 
                the adverse consequences described in paragraph 
                (1);
          (5) formal and informal feedback provided by 
        examiners that may have led to de-risking;
          (6) 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; and
          (7) any best practices from the private sector that 
        facilitate correspondent bank relationships.
  (b) De-risking Strategy.--The Secretary shall develop a 
strategy to reduce de-risking and adverse consequences related 
to de-risking.
  (c) Report.--Not later than the end of the 1-year period 
beginning on the date of the enactment of this Act, the 
Secretary, in consultation with the Federal functional 
regulators and other relevant stakeholders, shall issue a 
report to the Congress containing--
          (1) all findings and determinations made in carrying 
        out the study required under subsection (a); and
          (2) the strategy developed pursuant to subsection 
        (b).
  (d) Definitions.--In this section:
          (1) De-risking.--The term ``de-risking'' means the 
        wholesale closing of accounts or limiting of financial 
        services for a category of customer due to 
        unsubstantiated risk as it relates to compliance with 
        the Bank Secrecy Act.
          (2) BSA terms.--The terms ``Bank Secrecy Act'' and 
        ``financial institution'' have the meaning given those 
        terms, respectively, under section 5312 off title 31, 
        United States Code.

SEC. 112. AML EXAMINATION AUTHORITY DELEGATION STUDY.

  (a) Study.--The Secretary of the Treasury shall carry out a 
study on the Secretary's delegation of examination authority 
under the Bank Secrecy Act, including--
          (1) an evaluation of the efficacy of the delegation, 
        especially with respect to the mission of the Bank 
        Secrecy Act;
          (2) whether the delegated agencies have appropriate 
        resources to perform their delegated responsibilities; 
        and
          (3) whether the examiners in delegated agencies have 
        sufficient training and support to perform their 
        responsibilities.
  (b) Report.--Not later than one year after the date of 
enactment of this Act, the Secretary of the Treasury shall 
submit to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate a report containing--
          (1) all findings and determinations made in carrying 
        out the study required under subsection (a); and
          (2) recommendations to improve the efficacy of 
        delegation authority, including the potential for de-
        delegation of any or all such authority where it may be 
        appropriate.
  (c) Bank Secrecy Act Defined.--The term ``Bank Secrecy Act'' 
has the meaning given that term under section 5312 off title 
31, United States Code.

SEC. 113. STUDY AND STRATEGY ON CHINESE MONEY LAUNDERING.

  (a) Study.--The Secretary of the Treasury shall carry out a 
study on the extent and effect of Chinese money laundering 
activities in the United States, including territories and 
possessions of the United States, and worldwide.
  (b) Strategy to Combat Chinese Money Laundering.--Upon the 
completion of the study required under subsection (a), the 
Secretary shall, in consultation with such other Federal 
departments and agencies as the Secretary determines 
appropriate, develop a strategy to combat Chinese money 
laundering activities.
  (c) Report.--Not later than the end of the 1-year period 
beginning on the date of enactment of this Act, the Secretary 
of the Treasury shall issue a report to Congress containing--
          (1) all findings and determinations made in carrying 
        out the study required under subsection (a); and
          (2) the strategy developed under subsection (b).

                  TITLE J--IMPROVING AML/CFT OVERSIGHT

SEC. 201. PILOT PROGRAM ON SHARING OF SUSPICIOUS ACTIVITY REPORTS 
                    WITHIN A FINANCIAL GROUP.

  (a) In General.--
          (1) Sharing with foreign branches and affiliates.--
        Section 5318(g) of title 31, United States Code, is 
        amended by adding at the end the following:
          ``(5) Pilot program on sharing with foreign branches, 
        subsidiaries, and affiliates.--
                  ``(A) In general.--The Secretary of the 
                Treasury shall issue rules establishing the 
                pilot program described under subparagraph (B), 
                subject to such controls and restrictions as 
                the Director of the Financial Crimes 
                Enforcement Network determines appropriate, 
                including controls and restrictions regarding 
                participation by financial institutions and 
                jurisdictions in the pilot program. In 
                prescribing such rules, the Secretary shall 
                ensure that the sharing of information 
                described under such subparagraph (B) is 
                subject to appropriate standards and 
                requirements regarding data security and the 
                confidentiality of personally identifiable 
                information.
                  ``(B) Pilot program described.--The pilot 
                program required under this paragraph shall--
                          ``(i) permit a financial institution 
                        with a reporting obligation under this 
                        subsection to share reports (and 
                        information on such reports) under this 
                        subsection with the institution's 
                        foreign branches, subsidiaries, and 
                        affiliates for the purpose of combating 
                        illicit finance risks, notwithstanding 
                        any other provision of law except 
                        subparagraphs (A) and (C);
                          ``(ii) terminate on the date that is 
                        five years after the date of enactment 
                        of this paragraph, except that the 
                        Secretary may extend the pilot program 
                        for up to two years upon submitting a 
                        report to the Committee on Financial 
                        Services of the House of 
                        Representatives and the Committee on 
                        Banking, Housing, and Urban Affairs of 
                        the Senate that includes--
                                  ``(I) a certification that 
                                the extension is in the 
                                national interest of the United 
                                States, with a detailed 
                                explanation of the reasons 
                                therefor;
                                  ``(II) 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 
                                the pilot program activities, 
                                including expected budgetary 
                                resources for the activities, 
                                if the Secretary determines 
                                that a long-term extension is 
                                appropriate.
                  ``(C) Prohibition involving certain 
                jurisdictions.--In issuing the regulations 
                required under subparagraph (A), the Secretary 
                may not permit a financial institution to share 
                information on reports under this subsection 
                with a foreign branch, subsidiary, or affiliate 
                located in--
                          ``(i) the People's Republic of China;
                          ``(ii) the Russian Federation; or
                          ``(iii) a jurisdiction that--
                                  ``(I) is subject to 
                                countermeasures imposed by the 
                                Federal Government;
                                  ``(II) is a state sponsor of 
                                terrorism; or
                                  ``(III) the Secretary has 
                                determined cannot reasonably 
                                protect the privacy and 
                                confidentiality of such 
                                information or would otherwise 
                                use such information in a 
                                manner that is not consistent 
                                with the national interest of 
                                the United States.
                  ``(D) Implementation updates.--Not later than 
                360 days after the date rules are issued under 
                subparagraph (A), and annually thereafter for 
                three years, the Secretary, or the Secretary's 
                designee, shall brief the Committee on 
                Financial Services of the House of 
                Representatives and the Committee on Banking, 
                Housing, and Urban Affairs of the Senate 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 such effectiveness; and
                          ``(iii) any recommendations to amend 
                        the design of the pilot program.
                  ``(E) Rule of construction.--Nothing in this 
                paragraph shall be construed as limiting the 
                Secretary's authority under provisions of law 
                other than this paragraph to establish other 
                permissible purposes or methods for a financial 
                institution sharing reports (and information on 
                such reports) under this subsection with the 
                institution's foreign headquarters or with 
                other branches of the same institution.
                  ``(F) Notice of use of other authority.--If 
                the Secretary, pursuant to any authority other 
                than that provided under this paragraph, 
                permits a financial institution to share 
                information on reports under this subsection 
                with a foreign branch, subsidiary, or affiliate 
                located in a foreign jurisdiction, the 
                Secretary shall notify the Committee on 
                Financial Services of the House of 
                Representatives and the Committee on Banking, 
                Housing, and Urban Affairs of such permission 
                and the applicable foreign jurisdiction.
          ``(6) Treatment of foreign jurisdiction-originated 
        reports.--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 under 
        paragraph (1).''.
          (2) Notification prohibitions.--Section 5318(g)(2)(A) 
        of title 31, United States Code, is amended--
                  (A) in clause (i), by inserting after 
                ``transaction has been reported'' the 
                following: ``or otherwise reveal any 
                information that would reveal that the 
                transaction has been reported''; and
                  (B) in clause (ii), by inserting after 
                ``transaction has been reported,'' the 
                following: ``or otherwise reveal any 
                information that would reveal that the 
                transaction has been reported,''.
  (b) Rulemaking.--Not later than the end of the 360-day period 
beginning on the date of enactment of this Act, the Secretary 
of the Treasury shall issue regulations to carry out the 
amendments made by this section.

SEC. 202. 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.--Two or more financial 
        institutions may enter into collaborative arrangements 
        in order to more efficiently comply with the 
        requirements of this subchapter.
          ``(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 sharing of resources described under paragraph 
        (1).''.
  (b) Rule of Construction.--The amendment made by subsection 
(a) may not be construed to require financial institutions to 
share resources.

SEC. 203. GAO STUDY ON FEEDBACK LOOPS.

  (a) Study.--The Comptroller General of the United States 
shall carry out a study on--
          (1) best practices within the United States 
        Government for providing feedback (``feedback loop'') 
        to relevant parties (including regulated private 
        entities) on the usage and usefulness of personally 
        identifiable information (``PII''), sensitive-but-
        unclassified (``SBU'') data, or similar information 
        provided by such parties to Government users of such 
        information and data (including law enforcement or 
        regulators); and
          (2) any practices or standards 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.
  (b) Report.--Not later than the end of the 18-month period 
beginning on the date of the enactment of this Act, the 
Comptroller General shall issue a report to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives 
containing--
          (1) all findings and determinations made in carrying 
        out the study required under subsection (a);
          (2) with respect to each of paragraphs (1) and (2) of 
        subsection (a), any best practices or significant 
        concerns identified by the Comptroller General, and 
        their applicability to public-private partnerships and 
        feedback loops with respect to U.S. efforts to combat 
        money laundering and other forms of illicit finance; 
        and
          (3) recommendations to reduce or eliminate any 
        unnecessary Government collection of the information 
        described under subsection (a)(1).

SEC. 204. FINCEN STUDY ON BSA VALUE.

  (a) Study.--The Director of the Financial Crimes Enforcement 
Network shall carry out a study on Bank Secrecy Act value.
  (b) Report.--Not later than the end of the 30-day period 
beginning on the date the study under subsection (a) is 
completed, the Director shall issue a report to the Committee 
on Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate 
containing all findings and determinations made in carrying out 
the study required under this section.
  (c) Classified Annex.--The report required under this section 
may include a classified annex, if the Director determines it 
appropriate.
  (d) Bank Secrecy Act Defined.--For purposes of this section, 
the term ``Bank Secrecy Act'' has the meaning given that term 
under section 5312 of title 31, United States Code.

SEC. 205. SHARING OF THREAT PATTERN AND TREND INFORMATION.

  Section 5318(g) of title 31, United States Code, as amended 
by section 201(a)(1), is further amended by adding at the end 
the following:
          ``(7) Sharing of threat pattern and trend 
        information.--
                  ``(A) SAR activity review.--The Director of 
                the Financial Crimes Enforcement Network shall 
                restart publication of the `SAR Activity Review 
                - Trends, Tips & Issues', on not less than a 
                semi-annual basis, 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.
                  ``(B) Inclusion of typologies.--In each 
                publication described under subparagraph (A), 
                the Director shall provide financial 
                institutions with typologies, including data 
                that can be adapted in algorithms (including 
                for artificial intelligence and machine 
                learning programs) where appropriate, on 
                emerging money laundering and counter terror 
                financing threat patterns and trends.
                  ``(C) Typology defined.--For purposes of this 
                paragraph, the term `typology' means the 
                various techniques used to launder money or 
                finance terrorism.''.

SEC. 206. MODERNIZATION AND UPGRADING WHISTLEBLOWER PROTECTIONS.

  (a) Rewards.--Section 5323(d) of title 31, United States 
Code, is amended to read as follows:
  ``(d) Source of Rewards.--For the purposes of paying a reward 
under this section, the Secretary may, subject to amounts made 
available in advance by appropriation Acts, use criminal fine, 
civil penalty, or forfeiture amounts recovered based on the 
original information with respect to which the reward is being 
paid.''.
  (b) Whistleblower Incentives.--
          Chapter 53 of title 31, United States Code, is 
        amended--
          (1) by inserting after section 5323 the following:

``Sec. 5323A. Whistleblower incentives

  ``(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 FinCEN 
        under the Bank Secrecy Act that results in monetary 
        sanctions exceeding $1,000,000.
          ``(2) FinCEN.--The term `FinCEN' means the Financial 
        Crimes Enforcement Network.
          ``(3) Monetary sanctions.--The term `monetary 
        sanctions', when used with respect to any judicial or 
        administrative action, means--
                  ``(A) any monies, including penalties, 
                disgorgement, and interest, ordered to be paid; 
                and
                  ``(B) any monies deposited into a 
                disgorgement fund as a result of such action or 
                any settlement of such action.
          ``(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 FinCEN 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 FinCEN, means any 
        judicial or administrative action that is based upon 
        original information provided by a whistleblower that 
        led to the successful enforcement of the action.
          ``(6) Secretary.--The term `Secretary' means the 
        Secretary of the Treasury.
          ``(7) Whistleblower.--The term `whistleblower' means 
        any individual who provides, or 2 or more individuals 
        acting jointly who provide, information relating to a 
        violation of laws enforced by FinCEN, in a manner 
        established, by rule or regulation, by FinCEN.
  ``(b) Awards.--
          ``(1) In general.--In any covered judicial or 
        administrative action, or related action, the 
        Secretary, under such rules as the Secretary may issue 
        and subject to subsection (c), shall pay an award or 
        awards to 1 or more whistleblowers who voluntarily 
        provided original information to FinCEN that led to the 
        successful enforcement of the covered judicial or 
        administrative action, or related action, in an 
        aggregate amount equal to not more than 30 percent, in 
        total, of what has been collected of the monetary 
        sanctions imposed in the action.
          ``(2) Source of awards.--For the purposes of paying 
        any award under paragraph (1), the Secretary may, 
        subject to amounts made available in advance by 
        appropriation Acts, use monetary sanction amounts 
        recovered based on the original information with 
        respect to which the award is being paid.
  ``(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 responding to a 
                disclosure and determining the amount of an 
                award made, FinCEN staff shall meet with the 
                whistleblower to discuss evidence disclosed and 
                rebuttals to the disclosure, and 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;
                          ``(iii) the mission of FinCEN in 
                        deterring violations of the law by 
                        making awards to whistleblowers who 
                        provide information that lead to the 
                        successful enforcement of such laws; 
                        and
                          ``(iv) such additional relevant 
                        factors as the Secretary may establish 
                        by rule.
          ``(2) Denial of award.--No award under subsection (b) 
        shall be made--
                  ``(A) to any whistleblower who is, or was at 
                the time the whistleblower acquired the 
                original information submitted to FinCEN, a 
                member, officer, or employee of--
                          ``(i) an appropriate regulatory 
                        agency;
                          ``(ii) the Department of Justice;
                          ``(iii) a self-regulatory 
                        organization; or
                          ``(iv) a law enforcement 
                        organization;
                  ``(B) to any whistleblower who is convicted 
                of a criminal violation, or who the Secretary 
                has a reasonable basis to believe committed a 
                criminal violation, related to the judicial or 
                administrative action for which the 
                whistleblower otherwise could receive an award 
                under this section;
                  ``(C) to any whistleblower who gains the 
                information through the performance of an audit 
                of financial statements required under the Bank 
                Secrecy Act and for whom such submission would 
                be contrary to its requirements; or
                  ``(D) to any whistleblower who fails to 
                submit information to FinCEN in such form as 
                the Secretary may, by rule, require.
          ``(3) Statement of reasons.--For any decision 
        granting or denying an award, the Secretary shall 
        provide to the whistleblower a statement of reasons 
        that includes findings of fact and conclusions of law 
        for all material issues.
  ``(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.--Prior to the 
                payment of an award, a whistleblower shall 
                disclose their identity and provide such other 
                information as the Secretary may require, 
                directly or through counsel for the 
                whistleblower.
  ``(e) Appeals.--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. Any such 
determination, 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. The court shall review the 
determination made by the Secretary in accordance with section 
706 of title 5.
  ``(f) Employee Protections.--The Secretary of the Treasury 
shall issue regulations protecting a whistleblower from 
retaliation, which shall be as close as practicable to the 
employee protections provided for under section 1057 of the 
Consumer Financial Protection Act of 2010.''; and
          (2) in the table of contents for such chapter, by 
        inserting after the item relating to section 5323 the 
        following new item:

``5323A. Whistleblower incentives.''.

SEC. 207. CERTAIN VIOLATORS BARRED FROM SERVING ON BOARDS OF UNITED 
                    STATES FINANCIAL INSTITUTIONS.

  Section 5321 of title 31, United States Code, is amended by 
adding at the end the following:
  ``(f) Certain Violators Barred From Serving on Boards of 
United States Financial Institutions.--
          ``(1) In general.--An individual found to have 
        committed an egregious violation of a provision of (or 
        rule issued under) the Bank Secrecy Act shall be barred 
        from serving on the board of directors of a United 
        States financial institution for a 10-year period 
        beginning on the date of such finding.
          ``(2) Egregious violation defined.--With respect to 
        an individual, the term `egregious violation' means--
                  ``(A) a felony criminal violation for which 
                the individual was convicted; and
                  ``(B) a civil violation where the individual 
                willfully committed such violation and the 
                violation facilitated money laundering or the 
                financing of terrorism.''.

SEC. 208. ADDITIONAL DAMAGES FOR REPEAT BANK SECRECY ACT VIOLATORS.

  (a) In General.--Section 5321 of title 31, United States 
Code, as amended by section 208, is further amended by adding 
at the end the following:
  ``(g) Additional Damages for Repeat Violators.--In addition 
to any other fines permitted by this section and section 5322, 
with respect to a person who has previously been convicted of a 
criminal provision of (or rule issued under) the Bank Secrecy 
Act or who has admitted, as part of a deferred- or non-
prosecution agreement, to having previously committed a 
violation of a criminal provision of (or rule issued under) the 
Bank Secrecy Act, the Secretary may impose an additional civil 
penalty against such person for each additional such violation 
in an amount equal to up three times the profit gained or loss 
avoided by such person as a result of the violation.''.
  (b) Prospective Application of Amendment.--For purposes of 
determining whether a person has committed a previous violation 
under section 5321(g) of title 31, United States Code, such 
determination shall only include violations occurring after the 
date of enactment of this Act.

SEC. 209. JUSTICE ANNUAL REPORT ON DEFERRED AND NON-PROSECUTION 
                    AGREEMENTS.

  (a) Annual Report.--The Attorney General shall issue an 
annual report, every year for the five years beginning on the 
date of enactment of this Act, to the Committees on Financial 
Services and the Judiciary of the House of Representatives and 
the Committees on Banking, Housing, and Urban Affairs and the 
Judiciary of the Senate containing--
          (1) a list of deferred prosecution agreements and 
        non-prosecution agreements that the Attorney General 
        has entered into during the previous year with any 
        person with respect to a violation or suspected 
        violation of the Bank Secrecy Act;
          (2) the justification for entering into each such 
        agreement;
          (3) the list of factors that were taken into account 
        in determining that the Attorney General should enter 
        into each such agreement; and
          (4) the extent of coordination the Attorney General 
        conducted with the Financial Crimes Enforcement Network 
        prior to entering into each such agreement.
  (b) Classified Annex.--Each report under subsection (a) may 
include a classified annex.
  (c) Bank Secrecy Act Defined.--For purposes of this section, 
the term ``Bank Secrecy Act'' has the meaning given that term 
under section 5312 of title 31, United States Code.

SEC. 210. 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) Return of Profits and Bonuses.--A person convicted of 
violating a provision of (or rule issued under) the Bank 
Secrecy Act shall--
          ``(1) in addition to any other fine under this 
        section, be fined in an amount equal to the profit 
        gained by such person by reason of such violation, as 
        determined by the court; and
          ``(2) if such 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 such 
        individual during the Federal fiscal year in which the 
        violation occurred or the Federal fiscal 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. 211. APPLICATION OF BANK SECRECY ACT TO DEALERS IN ANTIQUITIES.

  (a) In General.--Section 5312(a)(2) of title 31, United 
States Code, is amended--
          (1) in subparagraph (Y), by striking ``or'' at the 
        end;
          (2) by redesignating subparagraph (Z) as subparagraph 
        (AA); and
          (3) by inserting after subsection (Y) the following:
                  ``(Z) a person trading or acting as an 
                intermediary in the trade of antiquities, 
                including an advisor, consultant or any other 
                person who engages as a business in the 
                solicitation of the sale of antiquities; or''.
  (b) Study on the Facilitation of Money Laundering and Terror 
Finance Through the Trade of Works of Art or Antiquities.--
          (1) Study.--The Secretary of the Treasury, in 
        coordination with Federal Bureau of Investigation, the 
        Attorney General, and Homeland Security Investigations, 
        shall perform a study on the facilitation of money 
        laundering and terror finance through the trade of 
        works of art or antiquities, including an analysis of--
                  (A) the extent to which the facilitation of 
                money laundering and terror finance 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;
                  (B) whether thresholds and definitions should 
                apply in determining which entities to 
                regulate;
                  (C) an evaluation of which markets, by size, 
                entity type, domestic or international 
                geographical locations, or otherwise, should be 
                subject to regulations, but only to the extent 
                such markets are not already required to report 
                on the trade of works of art or antiquities to 
                the Federal Government;
                  (D) an evaluation of whether certain 
                exemptions should apply; and
                  (E) any other points of study or analysis the 
                Secretary determines necessary or appropriate.
          (2) Report.--Not later than the end of the 180-day 
        period beginning on the date of the enactment of this 
        Act, the Secretary of the Treasury shall issue a report 
        to the Committee on Financial Services of the House of 
        Representatives and the Committee on Banking, Housing, 
        and Urban Affairs of the Senate containing all findings 
        and determinations made in carrying out the study 
        required under paragraph (1).
  (c) Rulemaking.--Not later than the end of the 180-day period 
beginning on the date the Secretary issues the report required 
under subsection (b)(2), the Secretary shall issue regulations 
to carry out the amendments made by subsection (a).

SEC. 212. GEOGRAPHIC TARGETING ORDER.

  The Secretary of the Treasury shall issue a geographic 
targeting order, similar to the order issued by the Financial 
Crimes Enforcement Network on November 15, 2018, that--
          (1) applies to commercial real estate to the same 
        extent, with the exception of having the same 
        thresholds, as the order issued by FinCEN on November 
        15, 2018, applies to residential real estate; and
          (2) establishes a specific threshold for commercial 
        real estate.

SEC. 213. STUDY AND REVISIONS TO CURRENCY TRANSACTION REPORTS AND 
                    SUSPICIOUS ACTIVITY REPORTS.

  (a) Currency Transaction Reports.--
          (1) CTR indexed for inflation.--
                  (A) In general.--Every 5 years after the date 
                of enactment of this Act, the Secretary of the 
                Treasury shall revise regulations issued with 
                respect to section 5313 of title 31, United 
                States Code, to update each $10,000 threshold 
                amount in such regulation to reflect the change 
                in the Consumer Price Index for All Urban 
                Consumers published by the Department of Labor, 
                rounded to the nearest $100. For purposes of 
                calculating the change described in the 
                previous sentence, the Secretary shall use 
                $10,000 as the base amount and the date of 
                enactment of this Act as the base date.
                  (B) Exception.--Notwithstanding subparagraph 
                (A), the Secretary may make appropriate 
                adjustments to the threshold amounts described 
                under subparagraph (A) in high-risk areas 
                (e.g., High Intensity Financial Crime Areas or 
                HIFCAs), if the Secretary has demonstrable 
                evidence that shows a threshold raise would 
                increase serious crimes, such as trafficking, 
                or endanger national security.
          (2) GAO ctr study.--
                  (A) Study.--The Comptroller General of the 
                United States shall carry out a study of 
                currency transaction reports. Such study shall 
                include--
                          (i) a review (carried out in 
                        consultation with the Secretary of the 
                        Treasury, the Financial Crimes 
                        Enforcement Network, the United States 
                        Attorney General, the State Attorneys 
                        General, and State, Tribal, and local 
                        law enforcement) of the effectiveness 
                        of the current currency transaction 
                        reporting regime;
                          (ii) an analysis of the importance of 
                        currency transaction reports to law 
                        enforcement; and
                          (iii) an analysis of the effects of 
                        raising the currency transaction report 
                        threshold.
                  (B) Report.--Not later than the end of the 1-
                year period beginning on the date of enactment 
                of this Act, the Comptroller General shall 
                issue a report to the Secretary of the Treasury 
                and the Congress containing--
                          (i) all findings and determinations 
                        made in carrying out the study required 
                        under subparagraph (A); and
                          (ii) recommendations for improving 
                        the current currency transaction 
                        reporting regime.
  (b) Modified SARs Study and Design.--
          (1) Study.--The Director of the Financial Crimes 
        Enforcement Network shall carry out a study, in 
        consultation with industry stakeholders (including 
        money services businesses, community banks, and credit 
        unions), regulators, and law enforcement, of the design 
        of a modified suspicious activity report form for 
        certain customers and activities. Such study shall 
        include--
                  (A) an examination of appropriate optimal 
                SARs thresholds to determine the level at which 
                a modified SARs form could be employed;
                  (B) an evaluation of which customers or 
                transactions would be appropriate for a 
                modified SAR, including--
                          (i) seasoned business customers;
                          (ii) financial technology (Fintech) 
                        firms;
                          (iii) structuring transactions; and
                          (iv) any other customer or 
                        transaction that may be appropriate for 
                        a modified SAR; and
                  (C) an analysis of the most effective methods 
                to reduce the regulatory burden imposed on 
                financial institutions in complying with the 
                Bank Secrecy Act, including an analysis of the 
                effect of--
                          (i) modifying thresholds;
                          (ii) shortening forms;
                          (iii) combining Bank Secrecy Act 
                        forms;
                          (iv) filing reports in periodic 
                        batches; and
                          (v) any other method that may reduce 
                        the regulatory burden.
          (2) Study considerations.--In carrying out the study 
        required under paragraph (1), the Director shall seek 
        to balance law enforcement priorities, regulatory 
        burdens experienced by financial institutions, and the 
        requirement for reports to have a ``high degree of 
        usefulness to law enforcement'' under the Bank Secrecy 
        Act.
          (3) Report.--Not later than the end of the 1-year 
        period beginning on the date of enactment of this Act, 
        the Director shall issue a report to Congress 
        containing--
                  (A) all findings and determinations made in 
                carrying out the study required under 
                subsection (a); and
                  (B) sample designs of modified SARs forms 
                based on the study results.
          (4) Contracting authority.--The Director may contract 
        with a private third-party to carry out the study 
        required under this subsection. The authority of the 
        Director to enter into contracts under this paragraph 
        shall be in effect for each fiscal year only to the 
        extent and in the amounts as are provided in advance in 
        appropriations Acts.
  (c) Definitions.--For purposes of this section:
          (1) Bank secrecy act.--The term ``Bank Secrecy Act'' 
        has the meaning given that term under section 5312 of 
        title 31, United States Code.
          (2) Regulatory burden.--The term ``regulatory 
        burden'' means the man-hours to complete filings, cost 
        of data collection and analysis, and other 
        considerations of chapter 35 of title 44, United States 
        Code (commonly referred to as the Paperwork Reduction 
        Act).
          (3) SAR; suspicious activity report.--The term 
        ``SAR'' and ``suspicious activity report'' mean a 
        report of a suspicious transaction under section 
        5318(g) of title 31, United States Code.
          (4) Seasoned business customer.--The term ``seasoned 
        business customer'', shall have such meaning as the 
        Secretary of the Treasury shall prescribe, which shall 
        include any person that--
                  (A) is incorporated or organized under the 
                laws of the United States or any State, or is 
                registered as, licensed by, or otherwise 
                eligible to do business within the United 
                States, a State, or political subdivision of a 
                State;
                  (B) has maintained an account with a 
                financial institution for a length of time as 
                determined by the Secretary; and
                  (C) meet such other requirements as the 
                Secretary may determine necessary or 
                appropriate.

SEC. 214. STREAMLINING REQUIREMENTS FOR CURRENCY TRANSACTION REPORTS 
                    AND SUSPICIOUS ACTIVITY REPORTS.

  (a) Review.--The Secretary of the Treasury (in consultation 
with Federal law enforcement agencies, the Director of National 
Intelligence, and the Federal functional regulators and in 
consultation with other relevant stakeholders) shall undertake 
a formal review of the current financial institution reporting 
requirements under the Bank Secrecy Act and its implementing 
regulations and propose changes to further reduce regulatory 
burdens, and ensure that the information provided is of a 
``high degree of usefulness'' to law enforcement, as set forth 
under section 5311 of title 31, United States Code.
  (b) Contents.--The review required under subsection (a) shall 
include a study of--
          (1) whether the timeframe for filing a suspicious 
        activity report should be increased from 30 days;
          (2) whether or not currency transaction report and 
        suspicious activity report thresholds should be tied to 
        inflation or otherwise periodically be adjusted;
          (3) whether the circumstances under which a financial 
        institution determines whether to file a ``continuing 
        suspicious activity report'', or the processes followed 
        by a financial institution in determining whether to 
        file a ``continuing suspicious activity report'' (or 
        both) can be narrowed;
          (4) analyzing the fields designated as ``critical'' 
        on the suspicious activity report form and whether the 
        number of fields should be reduced;
          (5) the increased use of exemption provisions to 
        reduce currency transaction reports that are of little 
        or no value to law enforcement efforts;
          (6) the current financial institution reporting 
        requirements under the Bank Secrecy Act and its 
        implementing regulations and guidance; and
          (7) such other items as the Secretary determines 
        appropriate.
  (c) Report.--Not later than the end of the one year period 
beginning on the date of the enactment of this Act, the 
Secretary of the Treasury, in consultation with law enforcement 
and persons subject to Bank Secrecy Act requirements, shall 
issue a report to the Congress containing all findings and 
determinations made in carrying out the review required under 
subsection (a).
  (d) Definitions.--For purposes of this section:
          (1) Federal functional regulator.--The term ``Federal 
        functional regulator'' has the meaning given that term 
        under section 103.
          (2) Other terms.--The terms ``Bank Secrecy Act'' and 
        ``financial institution'' have the meaning given those 
        terms, respectively, under section 5312 of title 31, 
        United States Code.

                  TITLE K--MODERNIZING THE AML SYSTEM

SEC. 301. ENCOURAGING INNOVATION IN BSA COMPLIANCE.

  Section 5318 of title 31, United States Code, as amended by 
section 202, is further amended by adding at the end the 
following:
  ``(p) Encouraging Innovation in Compliance.--
          ``(1) In general.--The Federal functional regulators 
        shall encourage financial institutions to consider, 
        evaluate, and, where appropriate, responsibly implement 
        innovative approaches to meet the requirements of this 
        subchapter, including through the use of innovation 
        pilot programs.
          ``(2) Exemptive relief.--The Secretary, pursuant to 
        subsection (a), may provide exemptions from the 
        requirements of this subchapter if the Secretary 
        determines such exemptions are necessary to facilitate 
        the testing and potential use of new technologies and 
        other innovations.
          ``(3) Rule of construction.--This subsection may not 
        be construed to require financial institutions to 
        consider, evaluate, or implement innovative approaches 
        to meet the requirements of the Bank Secrecy Act.
          ``(4) Federal functional regulator defined.--In this 
        subsection, the term `Federal functional regulator' 
        means the Board of Governors of the Federal Reserve 
        System, the Comptroller of the Currency, the Federal 
        Deposit Insurance Corporation, the National Credit 
        Union Administration, the Securities and Exchange 
        Commission, and the Commodity Futures Trading 
        Commission.''.

SEC. 302. INNOVATION LABS.

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

``Sec. 5333. Innovation Labs

  ``(a) Establishment.--There is established within the 
Department of the Treasury and each Federal functional 
regulator an Innovation Lab.
  ``(b) Director.--The head of each Innovation Lab shall be a 
Director, to be appointed by the Secretary of the Treasury or 
the head of the Federal functional regulator, as applicable.
  ``(c) Duties.--The duties of the Innovation Lab shall be--
          ``(1) to provide outreach to law enforcement 
        agencies, financial institutions, and other persons 
        (including vendors and technology companies) with 
        respect to innovation and new technologies that may be 
        used to comply with the requirements of the Bank 
        Secrecy Act;
          ``(2) to support the implementation of responsible 
        innovation and new technology, in a manner that 
        complies with the requirements of the Bank Secrecy Act;
          ``(3) to explore opportunities for public-private 
        partnerships; and
          ``(4) to develop metrics of success.
  ``(d) FinCEN Lab.--The Innovation Lab established under 
subsection (a) within the Department of the Treasury shall be a 
lab within the Financial Crimes Enforcement Network.
  ``(e) Federal Functional Regulator Defined.--In this 
subsection, the term `Federal functional regulator' means the 
Board of Governors of the Federal Reserve System, the 
Comptroller of the Currency, the Federal Deposit Insurance 
Corporation, the National Credit Union Administration, the 
Securities and Exchange Commission, and the Commodity Futures 
Trading Commission.''.
  (b) Clerical Amendment.--The table of contents for subchapter 
II of chapter 53 of title 31, United States Code, is amended by 
adding at the end the following:

``5333. Innovation Labs.''.

SEC. 303. INNOVATION COUNCIL.

  (a) In General.--Subchapter II of chapter 53 of Title 31, 
United States Code, as amended by section 302, is further 
amended by adding at the end the following:

``Sec. 5334. Innovation Council

  ``(a) Establishment.--There is established the Innovation 
Council (hereinafter in this section referred to as the 
`Council'), which shall consist of each Director of an 
Innovation Lab established under section 5334 and the Director 
of the Financial Crimes Enforcement Network.
  ``(b) Chair.--The Director of the Innovation Lab of the 
Department of the Treasury shall serve as the Chair of the 
Council.
  ``(c) Duty.--The members of the Council shall coordinate on 
activities related to innovation under the Bank Secrecy Act, 
but may not supplant individual agency determinations on 
innovation.
  ``(d) Meetings.--The meetings of the Council--
          ``(1) shall be at the call of the Chair, but in no 
        case may the Council meet less than semi-annually;
          ``(2) may include open and closed sessions, as 
        determined necessary by the Council; and
          ``(3) shall include participation by public and 
        private entities and law enforcement agencies.
  ``(e) Report.--The Council shall issue an annual report, for 
each of the 7 years beginning on the date of enactment of this 
section, to the Secretary of the Treasury on the activities of 
the Council during the previous year, including the success of 
programs as measured by metrics of success developed pursuant 
to section 5334(c)(4), and any regulatory or legislative 
recommendations that the Council may have.''.
  (b) Clerical Amendment.--The table of contents for subchapter 
II of chapter 53 of title 31, United States Code, is amended by 
adding the end the following:

``5334. Innovation Council.''.

SEC. 304. TESTING METHODS RULEMAKING.

  (a) In General.--Section 5318 of title 31, United States 
Code, as amended by section 301, is further amended by adding 
at the end the following:
  ``(q) Testing.--
          ``(1) In general.--The Secretary of the Treasury, in 
        consultation with the head of each agency to which the 
        Secretary has delegated duties or powers under 
        subsection (a), shall issue a rule to specify--
                  ``(A) with respect to technology and related 
                technology-internal processes (`new 
                technology') designed to facilitate compliance 
                with the Bank Secrecy Act requirements, the 
                standards by which financial institutions are 
                to test new technology; and
                  ``(B) in what instances or under what 
                circumstance and criteria a financial 
                institution may replace or terminate legacy 
                technology and processes for any examinable 
                technology or process without the replacement 
                or termination being determined an examination 
                deficiency.
          ``(2) Standards.--The standards described under 
        paragraph (1) may include--
                  ``(A) an emphasis on using innovative 
                approaches, such as machine learning, rather 
                than rules-based systems;
                  ``(B) risk-based back-testing of the regime 
                to facilitate calibration of relevant systems;
                  ``(C) requirements for appropriate data 
                privacy and security; and
                  ``(D) a requirement that the algorithms used 
                by the regime be disclosed to the Financial 
                Crimes Enforcement Network, upon request.
          ``(3) Confidentiality of algorithms.--If a financial 
        institution or any director, officer, employee, or 
        agent of any financial institution, voluntarily or 
        pursuant to this subsection or any other authority, 
        discloses the institution's algorithms to a Government 
        agency, such algorithms and any materials associated 
        with the creation of such algorithms shall be 
        considered confidential and not subject to public 
        disclosure.''.
  (b) Update of Manual.--The Financial Institutions Examination 
Council shall ensure--
          (1) that any manual prepared by the Council is 
        updated to reflect the rulemaking required by the 
        amendment made by subsection (a); and
          (2) that financial institutions are not penalized for 
        the decisions based on such rulemaking to replace or 
        terminate technology used for compliance with the Bank 
        Secrecy Act (as defined under section 5312 of title 31, 
        United States Code) or other anti-money laundering 
        laws.

SEC. 305. FINCEN STUDY ON USE OF EMERGING TECHNOLOGIES.

  (a) Study.--
          (1) In general.--The Director of the Financial Crimes 
        Enforcement Network (``FinCEN'') shall carry out a 
        study on--
                  (A) the status of implementation and internal 
                use of emerging technologies, including 
                artificial intelligence (``AI''), digital 
                identity technologies, blockchain technologies, 
                and other innovative technologies within 
                FinCEN;
                  (B) whether AI, digital identity 
                technologies, blockchain technologies, and 
                other innovative technologies can be further 
                leveraged to make FinCEN's data analysis more 
                efficient and effective; and
                  (C) how FinCEN could better utilize AI, 
                digital identity technologies, blockchain 
                technologies, and other innovative technologies 
                to more actively analyze and disseminate the 
                information it collects and stores to provide 
                investigative leads to Federal, State, Tribal, 
                and local law enforcement, and other Federal 
                agencies (collective, ``Agencies''), and better 
                support its ongoing investigations when 
                referring a case to the Agencies.
          (2) Inclusion of gto data.--The study required under 
        this subsection shall include data collected through 
        the Geographic Targeting Orders (``GTO'') program.
          (3) Consultation.--In conducting the study required 
        under this subsection, FinCEN shall consult with the 
        Directors of the Innovations Labs established in 
        section 302.
  (b) Report.--Not later than the end of the 6-month period 
beginning on the date of the enactment of this Act, the 
Director shall issue a report to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives containing--
          (1) all findings and determinations made in carrying 
        out the study required under subsection (a);
          (2) with respect to each of subparagraphs (A), (B) 
        and (C) of subsection (a)(1), any best practices or 
        significant concerns identified by the Director, and 
        their applicability to AI, digital identity 
        technologies, blockchain technologies, and other 
        innovative technologies with respect to U.S. efforts to 
        combat money laundering and other forms of illicit 
        finance; and
          (3) any policy recommendations that could facilitate 
        and improve communication and coordination between the 
        private sector, FinCEN, and Agencies through the 
        implementation of innovative approaches, in order to 
        meet their Bank Secrecy Act (as defined under section 
        5312 of title 31, United States Code) and anti-money 
        laundering compliance obligations.

SEC. 306. DISCRETIONARY SURPLUS FUNDS.

  (a) In General.--Section 7(a)(3)(A) of the Federal Reserve 
Act (12 U.S.C. 289(a)(3)(A)) is amended by striking 
``$6,825,000,000'' and inserting ``$6,798,000,000''.
  (b) Effective Date.--The amendment made by subsection (a) 
shall take effect on September 30, 2029.
                              ----------                              


         PART B--TEXT OF AMENDMENTS TO H.R. 2513 MADE IN ORDER

1. An Amendment To Be Offered by Representative Burgess of Texas or His 
                   Designee, Debatable for 10 Minutes

  Page 36, after line 8, insert the following:
  (d) Annual Report on Beneficial Ownership Information.--
          (1) Report.--The Secretary of the Treasury shall 
        issue an annual report to the Committee on Financial 
        Services of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the 
        Senate with respect to the beneficial ownership 
        information collected pursuant to section 5333 of title 
        31, United States Code, that contains--
                  (A) aggregate data on the number of 
                beneficial owners per reporting corporation or 
                limited liability company;
                  (B) the industries or type of business of 
                each reporting corporation or limited liability 
                company; and
                  (C) the locations of the beneficial owners.
          (2) Privacy.--In issuing reports under paragraph (1), 
        the Secretary shall not reveal the identities of 
        beneficial owners or names of the reporting 
        corporations or limited liability companies.
                              ----------                              


2. An Amendment To Be Offered by Representative Hill of Arkansas or His 
                   Designee, Debatable for 10 Minutes

  Page 17, after line 19, insert the following:
                  ``(D) Access procedures.--FinCEN shall 
                establish stringent procedures for the 
                protection and proper use of beneficial 
                ownership information disclosed pursuant to 
                subparagraph (B), including procedures to 
                ensure such information is not being 
                inappropriately accessed or misused by law 
                enforcement agencies.
                  ``(E) Report to congress.--FinCEN shall issue 
                an annual report to Congress stating--
                          ``(i) the number of times law 
                        enforcement agencies and financial 
                        institutions have accessed beneficial 
                        ownership information pursuant to 
                        subparagraph (B);
                          ``(ii) the number of times beneficial 
                        ownership information reported to 
                        FinCEN pursuant to this section was 
                        inappropriately accessed, and by whom; 
                        and
                          ``(iii) the number of times 
                        beneficial ownership information was 
                        disclosed under subparagraph (B) 
                        pursuant to a subpoena.''.
                              ----------                              


 3. An Amendment To Be Offered by Representative Brown of Maryland or 
                 His Designee, Debatable for 10 Minutes

  Page 16, line 8, after ``training,'' insert the following: 
``and refresher training no less than every two years,''.
                              ----------                              


 4. An Amendment To Be Offered by Representative Levin of Michigan or 
                 His Designee, Debatable for 10 Minutes

  Page 17, after line 19, insert the following:

                  ``(D) Disclosure of non-pii data.--
                Notwithstanding subparagraph (B), FinCEN may 
                issue guidance and otherwise make materials 
                available to financial institutions and the 
                public using beneficial ownership information 
                reported pursuant to this section if such 
                information is aggregated in a manner that 
                removes all personally identifiable 
                information. For purposes of this subparagraph, 
                `personally identifiable information' includes 
                information that would allow for the 
                identification of a particular corporation or 
                limited liability company.''.
                              ----------                              


5. An Amendment To Be Offered by Representative Davidson of Ohio or His 
                   Designee, Debatable for 10 Minutes

  Strike sections 1 through 5 and insert the following:

SECTION 1. TERMINATION OF CDD RULE.

  The final rule of the Department of the Treasury titled 
``Customer Due Diligence Requirements for Financial 
Institutions'' (published May 11, 2016; 81 Fed. Reg. 29397) 
shall have no force or effect.

SEC. 2. FINCEN STUDY.

  (a) Study.--FinCEN shall carry out a study that shall 
include--
          (1) a review of all existing data collected by the 
        Department of the Treasury (including the Internal 
        Revenue Service), by State Secretaries of State, by 
        financial institutions due to current statutory and 
        regulatory mandates (excluding the CDD rule), or by 
        other Federal Government entities, that in whole or in 
        part would allow FinCEN to discern the beneficial 
        owners of companies operating in the United States 
        financial system;
          (2) recommendations for the sharing of information 
        described under paragraph (1) with FinCEN along with 
        proposed safeguards for protecting personally 
        identifiable information from unauthorized access, 
        including by Federal intelligence and law enforcement 
        officials, as well as internal risk control mechanisms 
        for prevention of unauthorized access through a cyber 
        breach; and
          (3) an estimation of the cost of the compliance 
        burden for the CDD rule.
  (b) Report.--Not later than September 30, 2019, FinCEN shall 
issue a report to the Congress containing all findings and 
determinations made in carrying out the study required under 
subsection (a).
  (c) Definitions.--For purposes of this section:
          (1) CDD rule.--The term ``CDD rule'' means the final 
        rule of the Department of the Treasury described under 
        section 1.
          (2) Financial institution.--The term ``financial 
        institution'' has the meaning given that tem under 
        section 5312 of title 31, United States Code.
          (3) FinCEN.--The term ``FinCEN'' means the Financial 
        Crimes Enforcement Network.