II 

115TH CONGRESS 

2D SESSION S. 2544 

To stop financial institution crime, require certain officers of companies 

to certify that they have conducted due diligence relating to criminal 

conduct or civil fraud, create accountability in deferred prosecution agreements, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 14, 2018 

Ms. WARREN introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To stop financial institution crime, require certain officers 

of companies to certify that they have conducted due 

diligence relating to criminal conduct or civil fraud, create accountability in deferred prosecution agreements, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Ending Too Big to 

5 Jail Act’’. 

6 SEC. 2. STOP FINANCIAL INSTITUTION CRIME. 

7 (a) FINDINGS.—Congress finds the following: 


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1 (1) History has shown that the Office of the 

2 Special Inspector General for the Troubled Asset 

3 Relief Program (referred to in this subsection as 

4 ‘‘SIGTARP’’) has— 

5 (A) served as an effective model for— 

6 (i) recovering taxpayer dollars; and 

7 (ii) bringing accountability by rooting 

8 out waste, fraud, and abuse; and 

9 (B) proven to be a leader in targeting 

10 crimes committed by insiders at financial insti11 tutions in order to protect the interests of the 

12 people of the United States. 

13 (2) The financial crisis in 2008 laid bare one of 

14 the biggest vulnerabilities of the United States, 

15 which is fraud committed by financial institutions. 

16 Fraud committed by financial institutions continues 

17 as of the date of enactment of this Act, which dem18 onstrates that such fraud does not disappear, but 

19 evolves and grows over time, which weakens finan20 cial institutions from the inside. 

21 (3) There is a need for a permanent law en22 forcement agency dedicated solely to investigating 

23 fraud committed by financial institutions and insid24 ers at financial institutions because that type of 

25 fraud— 


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1 (A) wreaks havoc on the economy of the 

2 United States; 

3 (B) puts the finances of the United States 

4 at risk; and 

5 (C) ruins the lives of individuals in the 

6 United States. 

7 (4) Investigations led by SIGTARP have re8 sulted in criminal charges against more than 400 de9 fendants, including criminal charges against nearly 

10 100 bankers. These criminal charges were related to 

11 more than 20 failed banks, with a combined esti12 mated loss to the deposit insurance fund of 

13 $7,000,000,000. 

14 (5) SIGTARP’s investigations led to the De15 partment of Justice enforcement actions against 10 

16 financial institutions, with 8 having total assets ex17 ceeding $100,000,000,000. 

18 (6) SIGTARP has developed unique methods to 

19 search for crime by using industry, financial, and 

20 human intelligence, including fraudulent conduct 

21 that contributed to the failure of financial institu22 tions, or that was either in, or impacted, financial 

23 institutions. 

24 (7) Rather than establishing an entirely new 

25 entity, it makes the most sense for taxpayers to rely 


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1 on SIGTARP’s understanding of complex bank 

2 records and bank operations and use of intelligence 

3 to— 

4 (A) identify anomalies; and 

5 (B) investigate, and root out fraud at, fi6 nancial institutions. 

7 (8) The vast expertise of SIGTARP, and the 

8 proven results of SIGTARP with respect to the in9 vestigation of crime at financial institutions, should 

10 be used on a permanent basis to bring accountability 

11 and to deter fraud that jeopardizes financial institu12 tions in the United States, especially considering the 

13 extent to which the people of the United States rely 

14 on those institutions. 

15 (b) REDESIGNATION OF THE OFFICE OF THE SPE16 CIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET

17 RELIEF PROGRAM AND THE SPECIAL INSPECTOR GEN18 ERAL FOR THE TROUBLED ASSET RELIEF PROGRAM.— 

19 (1) IN GENERAL.—The Emergency Economic 

20 Stabilization Act of 2008 (12 U.S.C. 5211 et seq.) 

21 is amended— 

22 (A) by striking ‘‘Special Inspector General 

23 for the Troubled Asset Relief Program’’ each 

24 place the term appears and inserting ‘‘Special 

25 Inspector General for Financial Institution 


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1 Crime’’, except where the term is used to refer 

2 to the Special Inspector General for the Trou3 bled Asset Relief Program Act of 2009; 

4 (B) in section 121 (12 U.S.C. 5231), in 

5 the section heading, by striking ‘‘SPECIAL IN6 SPECTOR GENERAL FOR THE TROUBLED

7 ASSET RELIEF PROGRAM’’ and inserting 

8 ‘‘SPECIAL INSPECTOR GENERAL FOR FI9 NANCIAL INSTITUTION CRIME’’; and 

10 (C) in the table of contents, by striking the 

11 item relating to section 121 and inserting the 

12 following: 

‘‘Sec. 121. Special Inspector General for Financial Institution Crime.’’. 

13 (2) TECHNICAL AND CONFORMING AMEND14 MENTS.— 

15 (A) ADDITIONAL APPROPRIATIONS PROVI16 SION.—The Helping Families Save Their 

17 Homes Act of 2009 (Public Law 111–22; 123 

18 Stat. 1632) is amended— 

19 (i) in section 402 (12 U.S.C. 

20 5231a)— 

21 (I) in the section heading, by 

22 striking ‘‘SPECIAL INSPECTOR

23 GENERAL FOR THE TROUBLED

24 ASSET RELIEF PROGRAM’’ and in25 serting ‘‘SPECIAL INSPECTOR GENVerDate Sep 11 2014 02:18 Mar 21, 2018 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2544.IS S2544

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1 ERAL FOR FINANCIAL INSTITU2 TION CRIME’’; and 

3 (II) in subsection (b)(1)(A), by 

4 striking ‘‘Special Inspector General of 

5 the Trouble Asset Relief Program’’ 

6 and inserting ‘‘Special Inspector Gen7 eral for Financial Institution Crime’’; 

8 and 

9 (ii) in the table of contents, by strik10 ing the item relating to section 402 and in11 serting the following: 

‘‘Sec. 402. Special Inspector General for Financial Institution Crime.’’. 

12 (B) EXEMPTION FROM BUDGET REDUC13 TION.—Section 255(i) of the Balanced Budget 

14 and Emergency Deficit Control Act of 1985 (2 

15 U.S.C. 905(i)) is amended by striking ‘‘Special 

16 Inspector General for the Troubled Asset Relief 

17 Program’’ and inserting ‘‘Special Inspector 

18 General for Financial Institution Crime’’. 

19 (3) REFERENCES.— 

20 (A) OFFICE REFERENCES.—Any reference 

21 to the Office of the Special Inspector General 

22 for the Troubled Asset Relief Program in any 

23 law, rule, regulation, certificate, directive, in24 struction, or other official paper in force on the 

25 date of enactment of this Act shall be considVerDate Sep 11 2014 02:18 Mar 21, 2018 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2544.IS S2544

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1 ered to refer and apply to the Office of the Spe2 cial Inspector General for Financial Institution 

3 Crime. 

4 (B) SPECIAL INSPECTOR GENERAL REF5 ERENCES.—Any reference to the Special In6 spector General for the Troubled Asset Relief 

7 Program in any law, rule, regulation, certifi8 cate, directive, instruction, or other official 

9 paper in force on the date of enactment of this 

10 Act shall be considered to refer and apply to 

11 the Special Inspector General for Financial In12 stitution Crime. 

13 (c) DUTIES OF SPECIAL INSPECTOR GENERAL FOR

14 FINANCIAL INSTITUTION CRIME.— 

15 (1) IN GENERAL.—Section 121 of the Emer16 gency Economic Stabilization Act of 2008 (12 

17 U.S.C. 5231) is amended— 

18 (A) in subsection (b)— 

19 (i) by striking paragraph (3); and 

20 (ii) by redesignating paragraphs (4), 

21 (5), and (6) as paragraphs (3), (4), and 

22 (5), respectively; 

23 (B) by striking subsection (c) and insert24 ing the following: 

25 ‘‘(c) DUTIES.— 


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1 ‘‘(1) IN GENERAL.—It shall be the duty of the 

2 Special Inspector General to conduct, supervise and 

3 coordinate— 

4 ‘‘(A) investigations of fraudulent conduct 

5 in, or impacting— 

6 ‘‘(i) an entity described in any of sub7 paragraphs (A) through (F) of section 

8 5312(a)(2) of title 31, United States Code; 

9 ‘‘(ii) a bank holding company, as de10 fined in section 2 of the Bank Holding 

11 Company Act of 1956 (12 U.S.C. 1841); 

12 or 

13 ‘‘(iii) a savings and loan holding com14 pany, as defined in section 10(a) of the 

15 Home Owners’ Loan Act (12 U.S.C. 

16 1467a(a)); and 

17 ‘‘(B) audits and investigations of— 

18 ‘‘(i) the purchase, management, and 

19 sale of assets by the Secretary under any 

20 program established by the Secretary 

21 under section 101; and 

22 ‘‘(ii) the management by the Sec23 retary of any program established under 

24 section 102, including by collecting and 


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1 summarizing the information described in 

2 paragraph (2). 

3 ‘‘(2) INFORMATION REQUIRED.—The informa4 tion described in this paragraph is the following: 

5 ‘‘(A) A description of the categories of 

6 troubled assets purchased or otherwise procured 

7 by the Secretary. 

8 ‘‘(B) A listing of the troubled assets pur9 chased in each such category described in sub10 paragraph (A). 

11 ‘‘(C) An explanation of the reasons the 

12 Secretary deemed it necessary to purchase each 

13 such troubled asset. 

14 ‘‘(D) A listing of each financial institution 

15 from which those troubled assets were pur16 chased. 

17 ‘‘(E) A listing of and detailed biographical 

18 information on each person or entity hired to 

19 manage such troubled assets. 

20 ‘‘(F) A current estimate of the total 

21 amount of troubled assets purchased pursuant 

22 to any program established under section 101, 

23 the amount of troubled assets on the books of 

24 the Treasury, the amount of troubled assets 


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1 sold, and the profit and loss incurred on each 

2 sale or disposition of each such troubled asset. 

3 ‘‘(G) A listing of the insurance contracts 

4 issued under section 102. 

5 ‘‘(3) ADDITIONAL DUTIES.—The Special In6 spector General shall— 

7 ‘‘(A) establish, maintain, and oversee such 

8 systems, procedures, and controls as the Special 

9 Inspector General considers appropriate to dis10 charge the duty under paragraph (1); 

11 ‘‘(B) have the duties and responsibilities of 

12 inspectors general under the Inspector General 

13 Act of 1978 (5 U.S.C. App.); and 

14 ‘‘(C) have the duties necessary to carry out 

15 material loss reviews under section 2(d) of the 

16 Ending Too Big to Jail Act. 

17 ‘‘(4) ADDITIONAL AUTHORITY.— 

18 ‘‘(A) IN GENERAL.—Except as provided 

19 under subparagraph (B), and in addition to the 

20 duties specified in paragraphs (1) and (2), the 

21 Special Inspector General shall have the author22 ity to conduct, supervise, and coordinate an 

23 audit or investigation of any action take under 

24 this title as the Special Inspector General deter25 mines appropriate. 


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1 ‘‘(B) EXCEPTION.—Subparagraph (A) 

2 shall not apply with respect to any action taken 

3 under section 115, 116, 117, or 125.’’; 

4 (C) in subsection (e)— 

5 (i) in paragraph (1), by striking sub6 paragraph (B) and inserting the following: 

7 ‘‘(B)(i) Subject to clause (ii), notwithstanding the 

8 fact that the Office of the Special Inspector General for 

9 Financial Institutions Crime Enforcement is not a tem10 porary organization, as defined in subsection (a) of section 

11 3161 of title 5, United States Code, the Special Inspector 

12 General may exercise the authorities of subsections (b) 

13 through (i) of that section. 

14 ‘‘(ii) If the Special Inspector General exercises the 

15 authorities described in clause (i)— 

16 ‘‘(I) section 3161(b)(2) of title 5, United States 

17 Code (relating to periods of appointments) shall not 

18 apply; and 

19 ‘‘(II) with respect to an individual who is hired 

20 after the date of enactment of the Ending Too Big 

21 to Jail Act, section 3161(b)(3) of title 5, United 

22 States Code, shall not apply unless that individual is 

23 a reemployed annuitant described in paragraph 

24 (5).’’; and 

25 (ii) in paragraph (5)— 


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1 (I) in subparagraph (A)— 

2 (aa) by striking ‘‘(A)’’; and 

3 (bb) in the first sentence, by 

4 striking ‘‘Except as provided 

5 under subparagraph (B), if’’ and 

6 inserting ‘‘If’’; and 

7 (II) by striking subparagraph 

8 (B); 

9 (D) by striking subsection (g) and insert10 ing the following: 

11 ‘‘(g) COOPERATION AND COORDINATION WITH

12 OTHER ENTITIES.— 

13 ‘‘(1) DEFINITIONS.—In this subsection— 

14 ‘‘(A) the term ‘bank holding company’ has 

15 the meaning given the term in section 2 of the 

16 Bank Holding Company Act of 1956 (12 

17 U.S.C. 1841); 

18 ‘‘(B) the term ‘financial institutions’ 

19 means an entity described in any of subpara20 graphs (A) through (F) of section 5312(a)(2) of 

21 title 31, United States Code; and 

22 ‘‘(C) the term ‘savings and loan holding 

23 company’ has the meaning given the term in 

24 section 10(a) of the Home Owners’ Loan Act 

25 (12 U.S.C. 1467a(a)). 


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1 ‘‘(2) REQUIRED COORDINATION.—In carrying 

2 out the duties, responsibilities, and authorities of the 

3 Special Inspector General under this section, the 

4 Special Inspector General shall work with the enti5 ties described in paragraph (3), with a view toward 

6 avoiding duplication of effort and ensuring com7 prehensive oversight of— 

8 ‘‘(A) financial institutions, bank holding 

9 companies, and savings and loan holding com10 panies; 

11 ‘‘(B) any fraudulent conduct in, or impact12 ing, an entity described in subparagraph (A); 

13 and 

14 ‘‘(C) the Troubled Asset Relief Program. 

15 ‘‘(3) ENTITIES.—The entities described in this 

16 paragraph are the following: 

17 ‘‘(A) The Inspector General of the Depart18 ment of the Treasury. 

19 ‘‘(B) The Inspector General of the Federal 

20 Deposit Insurance Corporation. 

21 ‘‘(C) The Inspector General of the Securi22 ties and Exchange Commission. 

23 ‘‘(D) The Inspector General of the Board 

24 of Governors of the Federal Reserve System 


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1 and the Bureau of Consumer Financial Protec2 tion. 

3 ‘‘(E) The Inspector General of the Federal 

4 Housing Finance Agency. 

5 ‘‘(F) The Inspector General of any other 

6 entity as appropriate.’’; 

7 (E) in subsection (h), by striking ‘‘until 

8 the date of termination of the Office of the Spe9 cial Inspector General for the Troubled Asset 

10 Relief Program’’; 

11 (F) by striking subsection (i) and inserting 

12 the following: 

13 ‘‘(i) REPORTS.— 

14 ‘‘(1) IN GENERAL.— 

15 ‘‘(A) REQUIREMENT.—Subject to subpara16 graph (B), not later than April 30 and October 

17 31 of each year, the Special Inspector General 

18 shall submit to the appropriate committees of 

19 Congress a semiannual report with respect to 

20 the 6-month period that ends on March 31 and 

21 September 30 of that year, respectively. 

22 ‘‘(B) INITIAL REPORT.—The first report 

23 submitted by the Special Inspector General 

24 under subparagraph (A) after the date of enact25 ment of the Ending Too Big to Jail Act shall 


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1 be with respect to the first full 6-month period 

2 that ends on March 31 or September 30 after 

3 that date of enactment, whichever is earlier. 

4 ‘‘(2) CONTENTS.—Each report submitted under 

5 paragraph (1) shall include a summary of, for the 

6 period covered by the report, the relevant actions 

7 taken by the Special Inspector General. 

8 ‘‘(3) RULE OF CONSTRUCTION.—Nothing in 

9 this subsection may be construed to authorize the 

10 public disclosure of information that is— 

11 ‘‘(A) specifically prohibited from disclosure 

12 by any other provision of law; 

13 ‘‘(B) specifically required by Executive 

14 order to be protected from disclosure in the in15 terest of national defense or national security or 

16 in the conduct of foreign affairs; or 

17 ‘‘(C) a part of an ongoing criminal inves18 tigation. 

19 ‘‘(4) PUBLIC AVAILABILITY.—Except as pro20 vided under paragraph (3), all reports submitted 

21 under this subsection shall be available to the pub22 lic.’’; 

23 (G) in subsection (j), by adding at the end 

24 the following: 


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1 ‘‘(3) the amounts made available under section 

2 402(c) of the Public-Private Investment Program Im3 provement and Oversight Act of 2009 (12 U.S.C. 

4 5231a(c)) shall remain available until expended for any 

5 purpose in furtherance of the mission of the Office of the 

6 Special Inspector General for Financial Institution Crime; 

7 and 

8 ‘‘(4) the Office of the Special Inspector General for 

9 Financial Institution Crime shall receive annual appro10 priations from Congress separate and apart from appro11 priations made to the U.S. Department of Treasury. (8) 

12 by striking subsection (k).’’; and 

13 (H) by striking subsection (k). 

14 (2) CONTINUING SERVICE.—If the individual 

15 serving as the Special Inspector General for the 

16 Troubled Asset Relief Program on the day before 

17 the date of enactment of this Act was appointed to 

18 that position by the President, by and with the ad19 vice and consent of the Senate, that individual shall 

20 continue to serve as the Special Inspector General 

21 for Financial Institution Crime. 

22 (d) MATERIAL LOSS REVIEWS.—Notwithstanding 

23 any other provision of law, beginning on the date of enact24 ment of this Act, the Special Inspector General for Finan25 cial Institution Crime shall have the exclusive authority 


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1 to perform material loss reviews and has authority to pro2 mulgate regulations related to those reviews. For each re3 view, the Special Inspector General shall make a written 

4 report to the agency reviewing the agency’s supervision of 

5 an entity defined in section 121(c)(1)(A) of the Emer6 gency Economic Stabilization Act (12 U.S.C. 

7 5231(c)(1)(A)), as amended by subsection (c)(1)(B) of 

8 this section, which shall ascertain why the entity’s prob9 lems resulted in a material loss, and make recommenda10 tions for preventing any such loss in the future. 

11 (e) AUTHORITY OF SPECIAL INSPECTOR GENERAL.— 

12 Section 121 of the Emergency Economic Stabilization Act 

13 of 2008 (12 U.S.C. 5231) is amended by adding at the 

14 end the following: 

15 ‘‘(l) DISCLOSURE.— 

16 ‘‘(1) IN GENERAL.—Without approval of the 

17 Special Inspector General, no person, financial insti18 tution (as defined in section 5312(a) of title 31, 

19 United States Code), bank holding company (as de20 fined in section 2 of the Bank Holding Company Act 

21 of 1956 (12 U.S.C. 1841)), savings and loan holding 

22 company (as defined in section 10(a) of the Home 

23 Owners’ Loan Act (12 U.S.C. 1467a(a))), or any 

24 other entity, including an entity that lawfully pos25 sesses non-public information and records of the 


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1 Special Inspector General, may disclose information 

2 and records with respect to the duties of the Special 

3 Inspector General under this section unless— 

4 ‘‘(A) the Special Inspector General has ap5 proved a request for that information or those 

6 records, as applicable, under procedures estab7 lished by the Special Inspector General; or 

8 ‘‘(B)(i) an appropriate court of the United 

9 States has ordered that information or those 

10 records, as applicable, be released; and 

11 ‘‘(ii) the Special Inspector General had the 

12 opportunity to oppose the release of the mate13 rial described in clause (i) in a proceeding be14 fore the court described in that clause. 

15 ‘‘(2) APPLICATION OF PRIVILEGE.—No Federal 

16 or State financial institutions regulatory agency, in17 cluding the Office of the Comptroller of the Cur18 rency, the Board of Governors of the Federal Re19 serve System, the Federal reserve banks, the Federal 

20 Deposit Insurance Corporation, the Bureau of Con21 sumer Financial Protection, the Federal Housing Fi22 nance Agency, and any State banking agency, may, 

23 on the basis of any common law privilege, including 

24 the bank examiner privilege, deny the Special In25 spector General access to information or records 


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1 after the Special Inspector General has requested 

2 that information or those records, as applicable.’’. 

3 SEC. 3. CERTIFICATION. 

4 (a) DEFINITIONS.—In this section— 

5 (1) the term ‘‘appropriate entity’’ means— 

6 (A) the Special Inspector General for the 

7 Troubled Asset Relief Program or any successor 

8 entity; or 

9 (B) if the Program or entity described in 

10 subparagraph (A) does not exist, the Attorney 

11 General; 

12 (2) the terms ‘‘bank holding company’’ and 

13 ‘‘savings and loan holding company’’ has the mean14 ings given those terms in section 10(a) of the Home 

15 Owners’ Loan Act (12 U.S.C. 1467a(a)); and 

16 (3) the term ‘‘financial institution’’ has the 

17 meaning given the term in section 5312(a) of title 

18 31, United States Code. 

19 (b) CERTIFICATION.—The chief executive officer, 

20 chief financial officer, chief operating officer, and chief 

21 compliance officer of a financial institution, a bank hold22 ing company, or a savings and loan holding company with 

23 assets greater than $10,000,000,000 shall submit to the 

24 appropriate entity, subject to section 1001 of title 18, 

25 United States Code, an annual certification that the offiVerDate Sep 11 2014 02:18 Mar 21, 2018 Jkt 079200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S2544.IS S2544

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1 cers have conducted due diligence and found that there 

2 is no criminal conduct or civil fraud in the financial insti3 tution, bank holding company, or savings and loan holding 

4 company, as applicable, that has not been disclosed in full 

5 to the Department of Justice or the applicable regulator. 

6 If a disclosure to the Department of Justice or the appli7 cable regulator has been made, the certification shall ex8 plicitly describe all of the details of the conduct that has 

9 been disclosed, including but not limited to, the date of 

10 disclosure, and the person to whom the disclosure was 

11 made. 

12 (c) REGULATIONS.—Not later than 1 year after the 

13 date of enactment of this Act, the appropriate entity shall 

14 promulgate regulations on the process under which certifi15 cations made under subsection (b) shall be submitted. 

16 (d) WEBSITE.—The appropriate entity shall, on the 

17 website of the appropriate entity— 

18 (1) within 90 calendar days following the pro19 mulgation of regulations under subsection (c), and 

20 on an annual basis thereafter, publish a list of all 

21 financial institutions, bank holding companies, and 

22 savings and loan holding companies subject to the 

23 upcoming year’s annual certification requirement 

24 under subsection (b); and 


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1 (2) maintain on the homepage a direct link for 

2 the public to report alleged misconduct pertaining to 

3 any entity listed under paragraph (1). 

4 (e) EFFECTIVE DATE.—Subsection (b) shall take ef5 fect on the effective date of the regulations promulgated 

6 under subsection (c). 

7 (f) ENFORCEMENT.— 

8 (1) INJUNCTIONS.—When the Secretary of the 

9 Treasury believes a person has violated, is violating, 

10 or will violate this section or a regulation prescribed 

11 under this section, the Secretary may bring a civil 

12 action in the appropriate district court of the United 

13 States or appropriate United States court of a terri14 tory or possession of the United States to enjoin the 

15 violation or to enforce compliance with the section or 

16 regulation. An injunction or temporary restraining 

17 order shall be issued without bond. 

18 (2) CIVIL PENALTIES.— 

19 (A) IN GENERAL.—A chief executive offi20 cer, chief financial officer, chief operating offi21 cer, and chief compliance officer of a financial 

22 institution, a bank holding company, or a sav23 ings and loan holding company, willfully vio24 lating this section or a regulation prescribed 

25 under this section is liable to the United States 


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1 Government for a civil penalty of not more than 

2 $25,000. 

3 (B) NEGLIGENCE.— 

4 (i) IN GENERAL.—The Secretary of 

5 the Treasury may impose a civil money 

6 penalty of not more than $500 on any 

7 chief executive officer, chief financial offi8 cer, chief operating officer, and chief com9 pliance officer of a financial institution, a 

10 bank holding company, or a savings and 

11 loan holding company who negligently vio12 lates any provision of this section or any 

13 regulation prescribed under this section. 

14 (ii) PATTERN OF NEGLIGENT ACTIV15 ITY.—If any chief executive officer, chief 

16 financial officer, chief operating officer, 

17 and chief compliance officer of a financial 

18 institution, a bank holding company, or a 

19 savings and loan holding company engages 

20 in a pattern of negligent violations of any 

21 provision of this section or any regulation 

22 prescribed under this section, the Secretary 

23 of the Treasury may, in addition to any 

24 penalty imposed under clause (i) with re25 spect to any such violation, impose a civil 


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1 money penalty of not more than $50,000 

2 on the chief executive officer, chief finan3 cial officer, chief operating officer, and 

4 chief compliance officer of a financial insti5 tution, a bank holding company, or a sav6 ings and loan holding company. 

7 (3) CRIMINAL PENALTIES.— 

8 (A) IN GENERAL.—A chief executive offi9 cer, chief financial officer, chief operating offi10 cer, and chief compliance officer of a financial 

11 institution, a bank holding company, or a sav12 ings and loan holding company willfully vio13 lating this section or a regulation prescribed 

14 under this section shall be fined not more than 

15 $250,000, or imprisoned for not more than 5 

16 years, or both. 

17 (B) OTHER LAWS.—A chief executive offi18 cer, chief financial officer, chief operating offi19 cer, and chief compliance officer of a financial 

20 institution, a bank holding company, or a sav21 ings and loan holding company willfully vio22 lating this section or a regulation prescribed 

23 under this section while violating another law of 

24 the United States or as part of a pattern of any 

25 illegal activity involving more than $100,000 in 


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1 a 12-month period, shall be fined not more than 

2 $500,000, imprisoned for not more than 10 

3 years, or both. 

4 SEC. 4. ACCOUNTABILITY IN DEFERRED PROSECUTION 

5 AGREEMENTS. 

6 Section 3161(h)(2) of title 18, United States Code, 

7 is amended— 

8 (1) by striking ‘‘Any’’ and inserting ‘‘(A) Any’’; 

9 and 

10 (2) by adding at the end the following: 

11 ‘‘(B)(i) If the defendant described in subpara12 graph (A) is a person other than an individual, the 

13 court may not approve an agreement described in 

14 that subparagraph unless the court determines that 

15 the agreement is in the public interest, including ex16 tending the term of such an agreement. 

17 ‘‘(ii) In making the determination under clause 

18 (i), the court shall consider— 

19 ‘‘(I) whether any reforms required under 

20 the agreement are likely to prevent similar un21 lawful behavior in the future; 

22 ‘‘(II) whether any penalties under the 

23 agreement are sufficient to compensate victims 

24 and deter future unlawful actions; and 


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1 ‘‘(III) if the defendant has previously been 

2 convicted or entered into a deferred prosecution 

3 agreement with the Government in connection 

4 with related activity, the court may not, without 

5 good cause, approve such an agreement. 

6 ‘‘(iii) Any period of delay during which the 

7 court is making the determination under this sub8 paragraph shall be included in the period of delay 

9 described in subparagraph (A). 

10 ‘‘(C)(i) The court may, on its own or on motion 

11 of any party or of an independent monitor, if one is 

12 appointed pursuant to an agreement described in 

13 subparagraph (A), review the implementation or ter14 mination of the agreement, and take any appropriate 

15 action, to assure that the implementation or termi16 nation is in the public interest. 

17 ‘‘(ii) The court may order a party or an inde18 pendent monitor to file evidence with the court to 

19 aid the court in making the determination under 

20 clause (i). 

21 ‘‘(D)(i) Except as provided in clause (ii), the 

22 Attorney General shall make available on the public 

23 website of the Department of Justice— 

24 ‘‘(I) the text of any agreement described in 

25 subparagraph (A) between an attorney for the 


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26 

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1 Government and a defendant that is a person 

2 other than an individual; and 

3 ‘‘(II) all the terms and conditions of any 

4 agreement or understanding between an inde5 pendent monitor appointed pursuant to the 

6 agreement described in subclause (I) and the 

7 defendant. 

8 ‘‘(ii) The information described in clause (i) 

9 and subparagraph (C)(ii) shall not be made publicly 

10 available if, upon petition by any interested party, 

11 the court finds that there is good cause to not make 

12 such information public, including that the informa13 tion is proprietary, confidential, a trade secret, or 

14 meets the requirements of rule 49.1 of the Federal 

15 Rules of Criminal Procedure.’’. 

Æ 


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