Foreign Bank Enforcement Act of 1996

Summary: Foreign Bank Enforcement Act of 1996 - Amends the Federal Deposit Insurance Act with respect to the penalty for unauthorized participation in an insured depository institution by an individual with a criminal conviction involving dishonesty.  Revises the exception for individuals who have received the prior written consent of the Federal Deposit Insurance Corporation (FDIC) to allow the prior written consent of any appropriate Federal banking authority. 
Amends the International Banking Act of 1978 to:  (1) cite circumstances under which certain Federal bank regulatory agencies shall not be compelled to disclose information obtained from a foreign supervisor; and (2) authorize an order to terminate foreign bank offices in the United States issued by either the Board of Governors of the Federal Reserve System or the Comptroller of the Currency to contain appropriate terms and conditions. 
Amends Federal criminal procedure to authorize a court to:  (1) direct disclosure of matters occurring before a grand jury during an investigation of a banking law violation to identified personnel of a State as well as a Federal financial institution regulatory agency; and (2) issue such an order at any time during or after completion of the investigation of the grand jury upon a finding of substantial need.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Foreign Bank Enforcement Act of 
1996''.

SEC. 2. UNAUTHORIZED PARTICIPATION BY CONVICTED PERSONS.

    Section 19 of the Federal Deposit Insurance Act (12 U.S.C. 1829) is 
amended--
            (1) in subsection (a), by striking ``Corporation'' and 
        inserting ``appropriate Federal banking authority''; and
            (2) by adding at the end the following new subsection:
    ``(c) Definition.--For purposes of this section--
            ``(1) the term `appropriate Federal banking authority' 
        means--
                    ``(A) the Corporation, in the case of any insured 
                depository institution, except as specifically provided 
                in subparagraphs (B), (C), and (D), or in the case of 
                any insured branch of a foreign bank;
                    ``(B) the Board of Governors of the Federal Reserve 
                System, in the case of any bank holding company and any 
                subsidiary thereof (other than a bank), uninsured State 
                branch or agency of a foreign bank, or any organization 
                organized and operated under section 25A of the Federal 
                Reserve Act or operating under section 25 of the 
                Federal Reserve Act;
                    ``(C) the Comptroller of the Currency, in the case 
                of any Federal agency or uninsured Federal branch of a 
                foreign bank; and
                    ``(D) the Office of Thrift Supervision, in the case 
                of any savings and loan holding company and any 
                subsidiary thereof (other than a bank or a savings 
                association) or any institution that is treated as an 
                insured bank under section 8(b)(9); and
            ``(2) the term `insured depository institution' shall be 
        deemed to include any institution treated as an insured bank 
        under paragraph (3), (4), or (5) of section 8(b) or as a 
        savings association under section 8(b)(9).''.

SEC. 3. REMOVAL ACTIONS AGAINST PERSONS CONVICTED OF FELONIES.

    Section 8(i)(3) of the Federal Deposit Insurance Act (12 U.S.C. 
1818(i)(3)) is amended--
            (1) by inserting ``, or any order pursuant to subsection 
        (g),'' after ``any notice''; and
            (2) by inserting ``or order'' after ``such notice''.

SEC. 4. INTERNATIONAL COOPERATION.

    Section 15 of the International Banking Act of 1978 (12 U.S.C. 
3109) is amended by adding at the end the following new subsections:
    ``(c) Information Obtained From Foreign Supervisors.--
            ``(1) In general.--Except as provided in subsection (d), 
        the Board, the Comptroller, the Federal Deposit Insurance 
        Corporation, and the Office of Thrift Supervision shall not be 
        compelled to disclose information obtained from a foreign 
        supervisor if--
                    ``(A) the foreign supervisor has, in good faith, 
                determined and represented to such agency that public 
                disclosure of the information would violate the laws 
                applicable to that foreign supervisor; and
                    ``(B) the United States agency obtains such 
                information pursuant to--
                            ``(i) such procedure as the agency may 
                        authorize for use in connection with the 
                        administration or enforcement of the banking 
                        laws; or
                            ``(ii) a memorandum of understanding.
            ``(2) Treatment under title 5.--For purposes of section 552 
        of title 5, United States Code, this subsection shall be 
        considered to be a statute described in subsection (b)(3)(B) of 
        such section 552.
    ``(d) Savings Provision.--Nothing in this section authorizes the 
Board, the Comptroller, the Federal Deposit Insurance Corporation, or 
the Office of Thrift Supervision to withhold information from the 
Congress or to prevent such agency from complying with an order of a 
court of the United States in an action commenced by the United States 
or by such agency.''.

SEC. 5. TERMINATION OF FOREIGN BANK OFFICES IN THE UNITED STATES.

    Section 7(e) of the International Banking Act of 1978 (12 U.S.C. 
3105(e)) is amended by adding at the end the following new paragraph:
            ``(8) Provisions of a termination order.--An order issued 
        by the Board under paragraph (1) or by the Comptroller under 
        section 4(i) may contain such terms and conditions as the Board 
        or the Comptroller, as the case may be, deems appropriate to 
        carry out this subsection.''.

SEC. 6. DISCLOSURE OF CERTAIN MATTERS OCCURRING BEFORE GRAND JURY.

    Section 3322(b) of title 18, United States Code, is amended--
            (1) in paragraph (1), by inserting ``State or Federal'' 
        before ``financial institution''; and
            (2) in paragraph (2), by inserting ``at any time during or 
        after the completion of the investigation of the grand jury'' 
        before ``upon''.