79–006 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 115–780 

COOPERATE WITH LAW ENFORCEMENT AGENCIES AND 

WATCH ACT OF 2018 

JUNE 25, 2018.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. HENSARLING, from the Committee on Financial Services, 

submitted the following 

R E P O R T 

[To accompany H.R. 5783] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 5783) to provide a safe harbor for financial institutions 

that maintain a customer account at the request of a Federal or 

State law enforcement agency, having considered the same, report 

favorably thereon with an amendment and recommend that the bill 

as amended do pass. 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Cooperate with Law Enforcement Agencies and 

Watch Act of 2018. 

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

(a) IN GENERAL.—Subchapter II of chapter 53 of title 31, United States Code, is 

amended by adding at the end the following: 

‘‘§ 5333. Safe harbor with respect to keep open letters 

‘‘(a) IN GENERAL.—With respect to a customer account of a financial institution, 

if a Federal, State, Tribal, or local law enforcement agency requests, in writing, the 

financial institution to keep such account open— 

‘‘(1) the financial institution shall not be liable under this subchapter for 

maintaining such account consistent with the parameters of the request; and 

‘‘(2) no Federal or State department or agency may take any adverse supervisory action under this subchapter with respect to the financial institution for 

maintaining such account consistent with the parameters of the request. 

‘‘(b) RULE OF CONSTRUCTION.—Nothing in this section may be construed— 

‘‘(1) from preventing a Federal or State department or agency from verifying 

the validity of a written request described under subsection (a) with the Federal, State, Tribal, or local law enforcement agency making the written request; 

or 

2 

‘‘(2) to relieve a financial institution from complying with any reporting requirements, including the reporting of suspicious transactions under section 

5318(g). 

‘‘(c) LETTER TERMINATION DATE.—For purposes of this section, any written request 

described under subsection (a) shall include a termination date after which such request shall no longer apply. 

(b) CLERICAL AMENDMENT.—The table of contents for chapter 53 of title 31, 

United States Code, is amended by inserting after the item relating to section 5332 

the following: 

‘‘5333. Safe harbor with respect to keep open letters. 

PURPOSE AND SUMMARY

On May 11, 2018, Representative French Hill introduced H.R. 

5783, the ‘‘Cooperate with Law Enforcement Agencies and Watch 

Act’’. H.R. 5783 amends Subchapter II of chapter 53 of title 31, 

United States Code, to provide a safe harbor to financial institutions that keep an account open at the written request of a federal, 

state, tribal, or law enforcement agency for investigatory purposes. 

The legislation directs that no federal department or agency may 

take an adverse supervisory action with respect to the financial institution for keeping such an account open. 

BACKGROUND AND NEED FOR LEGISLATION

The goal of H.R. 5783 is to support law enforcement by allowing 

banks to maintain accounts without fear of being penalized under 

the Bank Secrecy Act. This bill provides a safe harbor to banks to 

maintain an account at the written request of law enforcement, so 

authorities may monitor transactions and build stronger cases 

against money launderers, terrorist financiers, human traffickers, 

and any number of other illicit actors moving money through our 

financial system. 

Sometimes financial institutions receive notices from law enforcement agencies, known as ‘‘keep open’’ letters. These ‘‘keep open’’ 

letters request that the institution keep an account open so that 

they can track payments and better monitor potential criminal activities. Such requests could come from the Federal Bureau of Investigation, the Drug Enforcement Administration, Department of 

Homeland Security, Treasury’s Financial Crimes Enforcement Network (FinCEN), local police, or any other law enforcement agency. 

If banks help law enforcement and comply with the ‘‘keep open’’ 

letter request, they face the risk of enforcement actions, as well as 

fines and penalties from the banking or other regulators if they 

allow an account to be used for criminal purposes. Law enforcement agencies are supposed to provide a written notice to the financial institution that they requested that the account be kept 

open, but that is currently not guaranteed. This situation has put 

financial institutions in a difficult position between wanting to help 

law enforcement, while also adhering to demands from the prudential regulators. 

H.R. 5783 will provide financial institutions with the legal certainty they need to both comply with requests from law enforcement and simultaneously fulfill their obligations to comply with all 

applicable banking laws and regulations. 

3 

HEARINGS

The Committee on Financial Services did not hold a hearing examining matters relating to H.R. 5783. 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on 

June 6, 2018, and ordered H.R. 5783 to be reported favorably to the 

House as amended by a recorded vote of 55 yeas to 0 nays (recorded vote no. FC–180), a quorum being present. Before the motion to report was offered, the Committee adopted an amendment 

in the nature of a substitute offered by Mr. Hill by voice vote. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. The sole recorded 

vote was on a motion by Chairman Hensarling to report the bill favorably to the House as amended. The motion was agreed to by a 

recorded vote of 55 yeas to 0 nays (Record vote no. FC–180), a 

quorum being present. 

4 


Insert offset folio 5 here HR780.001

Mr. Hensarling .............. . 

Mr. McHenry ... __ 

Mr. King... ············-

Mr. Royce (CA) ·········--·-·-

Mr. Lucas 

Mr. Pearce 

Mr. Posey------------------·-

Mr. Luetkemeyer ---------··-· 

Mr. Huizenga 

Mr. Duffy -·-·· _ 

Mr. Stivers 

Mr. Hultgren 

Mr. Ross 

Mr. Pittenger 

Mrs. Wagner--------------··· 

Mr. Barr·--------------------

Mr. Rothfus 

Mr. Messer .................. . 

Mr. Tipton .................. . 

Mr. Williams ................ . 

Mr. Poliquin ___ ·-------····· 

Mrs. Love 

Mr. Hill 

Mr. Emmer .................. . 

Mr. Zeldin 

Mr. Trott 

Mr. Loudermilk 

Mr. MooneyrNVl ______ _ 

Mr. MacArthur 

Mr. Davidson ___ ........... . 

Mr. Budd 

Mr. Kustoff (TNL_ ______ _ 

Ms. Tenney ............ . 

Mr. Hollingsworth ............ . 

Ms. Maxine Waters (CA) 

Mrs. Carolyn B. Maloney (NY) __ 

Ms. Velazquez_ ............ . 

Mr. Sherman·-·--------------

X 

X 

Mr. Meeks )\ 

Mr. Capuano .......... _ )\ 

Mr. Clay. .............. . .. . 

Mr. Lynch .................. . 

Mr. David Scott (GA) X 

Mr. AI Green (TX) ~ 

Mr. Cleaver------------------

Ms. Moore .................. . 

Mr. Ellison_ ................ . 

Mr. Perlmutter 

Mr. Himes -----------·-···---

Mr. Foster--------------------

Mr. Kildee __________________ _ 

Mr. Delaney 

Ms. Sinema --------······----

Mrs. Beatty---------------·--

Mr. Heck---------------------

Mr. Vargas 

Mr. Gottheimer .............. . 

Mr. Gonzalez (TX) 

Mr. Crist -------------·--·--· 

Mr. K1huen 
5 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the findings and recommendations of the Committee based on oversight activities under clause 2(b)(1) of rule X 

of the Rules of the House of Representatives, are incorporated in 

the descriptive portions of this report. 

PERFORMANCE GOALS AND OBJECTIVES

With respect to clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee advises that the bill contains no measure that authorizes funding, so no statement of general performance goals and objectives for which any measure authorizes funding is required. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

The Committee has not received an estimate of new budget authority contained in the cost estimate prepared by the Director of 

the Congressional Budget Office pursuant to Sec. 402 of the Congressional Budget Act of 1974. In compliance with clause 3(c)(2) of 

rule XIII of the Rules of the House, the Committee opines that 

H.R. 5783 will not establish any new budget or entitlement authority or create any tax expenditures. 

CONGRESSIONAL BUDGET OFFICE ESTIMATES

The cost estimate prepared by the Director of the Congressional 

Budget Office pursuant to Sec. 402 of the Congressional Budget Act 

of 1974 was not submitted timely to the Committee. 

FEDERAL MANDATES STATEMENT

This information is provided in accordance with section 423 of 

the Unfunded Mandates Reform Act of 1995. 

The Committee has determined that the bill does not contain 

Federal mandates on the private sector. The Committee has determined that the bill does not impose a Federal intergovernmental 

mandate on State, local, or tribal governments. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of the section 102(b)(3) of the 

Congressional Accountability Act. 

EARMARK IDENTIFICATION

With respect to clause 9 of rule XXI of the Rules of the House 

of Representatives, the Committee has carefully reviewed the provisions of the bill and states that the provisions of the bill do not 

6 

contain any congressional earmarks, limited tax benefits, or limited 

tariff benefits within the meaning of the rule. 

DUPLICATION OF FEDERAL PROGRAMS

In compliance with clause 3(c)(5) of rule XIII of the Rules of the 

House of Representatives, the Committee states that no provision 

of the bill establishes or reauthorizes: (1) a program of the Federal 

Government known to be duplicative of another Federal program; 

(2) a program included in any report from the Government Accountability Office to Congress pursuant to section 21 of Public 

Law 111–139; or (3) a program related to a program identified in 

the most recent Catalog of Federal Domestic Assistance, published 

pursuant to the Federal Program Information Act (Pub. L. No. 95– 

220, as amended by Pub. L. No. 98–169). 

DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(i) of H. Res. 5, (115th Congress), the following statement is made concerning directed rule makings: The 

Committee estimates that the bill requires no directed rule makings within the meaning of such section. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section cites H.R. 5783 as the ‘‘Cooperate with Law Enforcement Agencies and Watch Act.’’ 

Section 2. Safe Harbor with Respect to Keep Open Letters 

Amends Subchapter II of chapter 53 of title 31, United States 

Code, by adding Section 5333, titled ‘‘Safe Harbor with Respect to 

Keep Open Letters.’’ 

A financial institution may keep a customer account open if a 

Federal, State, Tribal, or local law enforcement agency requests, in 

writing, that the financial institution keep the account open. A financial institution shall not be held liable for maintaining the account consistent with the parameters of the request. No Federal or 

State department or agency may take any adverse supervisory action against the financial institution for maintaining the account 

consistent with the parameters of the request. 

A Federal or State department or agency is not prevented from 

verifying the validity of a written request with the Federal, State, 

Tribal, or Local law enforcement agency making the written request. A financial institution is not relieved from complying with 

any reporting requirements, including the reporting of suspicious 

activity reports under section 5318(g). 

Any written request from law enforcement shall include a termination date after which the request will no longer apply. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

7 

and existing law in which no change is proposed is shown in 

roman): 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic 

and existing law in which no change is proposed is shown in 

roman): 

TITLE 31, UNITED STATES CODE 

* * * * * * * 

SUBTITLE IV—MONEY 

* * * * * * * 

CHAPTER 53—MONETARY TRANSACTIONS 

SUBCHAPTER I—CREDIT AND MONETARY EXPANSION 

Sec. 

5301. Buying obligations of the United States Government. 

SUBCHAPTER II—RECORDS AND REPORTS ON MONETARY INSTRUMENTS 

TRANSACTIONS 

* * * * * * * 

5333. Safe harbor with respect to keep open letters. 

* * * * * * * 

SUBCHAPTER II—RECORDS AND REPORTS ON MONETARY 

INSTRUMENTS TRANSACTIONS 

* * * * * * * 

§ 5333. Safe harbor with respect to keep open letters 

(a) IN GENERAL.—With respect to a customer account of a financial institution, if a Federal, State, Tribal, or local law enforcement 

agency requests, in writing, the financial institution to keep such account open— 

(1) the financial institution shall not be liable under this subchapter for maintaining such account consistent with the parameters of the request; and 

(2) no Federal or State department or agency may take any 

adverse supervisory action under this subchapter with respect to 

the financial institution for maintaining such account consistent with the parameters of the request. 

(b) RULE OF CONSTRUCTION.—Nothing in this section may be construed— 

(1) from preventing a Federal or State department or agency 

from verifying the validity of a written request described under 

subsection (a) with the Federal, State, Tribal, or local law enforcement agency making the written request; or 

(2) to relieve a financial institution from complying with any 

reporting requirements, including the reporting of suspicious 

transactions under section 5318(g). 

8 

(c) LETTER TERMINATION DATE.—For purposes of this section, any 

written request described under subsection (a) shall include a termination date after which such request shall no longer apply. 

* * * * * * * 

Æ