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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2219 Reported in House (RH)]

<DOC>

                                                 Union Calendar No. 439
115th CONGRESS
  2d Session
                                H. R. 2219

                  [Report No. 115-569, Parts I and II]

   To increase the role of the financial industry in combating human 
                              trafficking.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 27, 2017

  Mr. Royce of California (for himself, Mr. Keating, Mrs. Carolyn B. 
  Maloney of New York, and Mrs. Love) introduced the following bill; 
which was referred to the Committee on Foreign Affairs, and in addition 
to the Committee on Financial Services, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

                           February 20, 2018

   Reported from the Committee on Financial Services with amendments
  [Omit the part struck through and insert the part printed in italic]

                           February 23, 2018

   Additional sponsors: Mr. Meehan, Mr. Fitzpatrick, Ms. Sinema, Mr. 
Delaney, Mr. Meeks, Mrs. Beatty, Mr. Lynch, Mr. Messer, Mr. Sires, Mr. 
             Hultgren, Mr. Poe of Texas, and Mr. Gottheimer

                           February 23, 2018

   Reported from the Committee on Foreign Affairs with an amendment; 
committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                           in boldface roman]
 [For text of introduced bill, see copy of bill as introduced on April 
                               27, 2017]

_______________________________________________________________________

                                 A BILL

 
   To increase the role of the financial industry in combating human 
                              trafficking.

 

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``End Banking for Human Traffickers 
Act of 2017''.

SEC. 2. INCREASING THE ROLE OF THE FINANCIAL INDUSTRY IN COMBATING 
              HUMAN TRAFFICKING.

    (a) Treasury as a Member of the President's Interagency Task Force 
To Monitor and Combat Trafficking.--Section 105(b) of the Victims of 
Trafficking and Violence Protection Act of 2000 (22 U.S.C. 7103(b)) is 
amended by inserting ``the Secretary of the Treasury,'' after ``the 
Secretary of Education,''.
<DELETED>    (b) Required Review of Procedures.--Not later than 180 
days after the date of enactment of this Act, the Financial 
Institutions Examination Council shall, in consultation with the 
Secretary of the Treasury and other appropriate law enforcement 
agencies, take the following actions:</DELETED>
        <DELETED>    (1) Review and enhance, where necessary, training 
        and examinations procedures to improve the ability of anti-
        money laundering programs to target human trafficking 
        operations.</DELETED>
        <DELETED>    (2) Review and enhance, where necessary, 
        procedures for referring potential human trafficking cases to 
        the appropriate law enforcement agency.</DELETED>
<DELETED>    (c) Interagency Task Force Recommendations Targeting Money 
Laundering Related to Human Trafficking.--</DELETED>
        <DELETED>    (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, the Interagency Task Force to 
        Monitor and Combat Trafficking shall prepare and submit to 
        Congress, the Secretary of the Treasury, and each appropriate 
        Federal banking agency a series of legislative, administrative, 
        and regulatory recommendations, if necessary, to revise anti-
        money laundering programs of financial institutions in order to 
        specifically target money laundering related to human 
        trafficking, as described in paragraph (2).</DELETED>
        <DELETED>    (2) Required recommendations.--The recommendations 
        required under paragraph (1) shall, at a minimum, include the 
        following:</DELETED>
                <DELETED>    (A) Successful anti-human trafficking 
                programs currently in place at financial institutions 
                that are suitable for broader adoption.</DELETED>
                <DELETED>    (B) Recommended changes, if necessary, to 
                the internal policies, procedures, and controls at 
                financial institutions so that such institutions can 
                better deter and detect money laundering related to 
                human trafficking.</DELETED>
                <DELETED>    (C) Recommended changes, if necessary, to 
                ongoing employee training programs at financial 
                institutions so that those institutions can better 
                equip employees to deter and detect money laundering 
                related to human trafficking, including the training of 
                legal counsel, risk managers, and compliance 
                officers.</DELETED>
                <DELETED>    (D) Recommended revisions, if necessary, 
                to existing regulatory requirements and guidelines for 
                the reporting of suspicious transactions by financial 
                institutions, as required pursuant to section 5318(g) 
                of title 31, United States Code, in order to facilitate 
                the collection of data on instances of suspected human 
                trafficking.</DELETED>
<DELETED>    (d) Additional Reporting Requirement.--Section 110(b) of 
the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7107(b)) is 
amended by adding at the end the following:</DELETED>
        <DELETED>    ``(4) Description of efforts of united states to 
        eliminate money laundering related to human trafficking.--In 
        addition to the information required in the annual report under 
        paragraph (1) and the interim report under paragraph (2), the 
        Secretary of State, in consultation with the Attorney General 
        and the Secretary of the Treasury, shall include in each such 
        report a description of efforts of the United States to 
        eliminate money laundering related to human trafficking and the 
        number of investigations, arrests, indictments and convictions 
        in money laundering cases with a nexus to human 
        trafficking.''.</DELETED>
    (b) Required Review of Procedures.--Not later than 180 days after 
the date of the enactment of this Act, the Financial Institutions 
Examination Council, in consultation with the Secretary of the 
Treasury, the private sector, and appropriate law enforcement agencies, 
shall--
            (1) review and enhance training and examinations procedures 
        to improve the capabilities of anti-money laundering and 
        countering the financing of terrorism programs to detect human 
        trafficking-related financial transactions;
            (2) review and enhance procedures for referring potential 
        human trafficking cases to the appropriate law enforcement 
        agency; and
            (3) determine, as appropriate, whether requirements for 
        financial institutions are sufficient to detect and deter money 
        laundering related to human trafficking.
    (c) Interagency Task Force Recommendations Targeting Money 
Laundering Related to Human Trafficking.--
            (1) In general.--Not later than 270 days after the date of 
        the enactment of this Act, the Interagency Task Force to 
        Monitor and Combat Trafficking shall submit to the Committee on 
        Financial Services and the Committee on the Judiciary of the 
        House of Representatives, the Committee on Banking, Housing, 
        and Urban Affairs and the Committee on the Judiciary of the 
        Senate, and the head of each appropriate Federal banking 
        agency--
                    (A) an analysis of anti-money laundering efforts of 
                the United States Government and United States 
                financial institutions related to human trafficking; 
                and
                    (B) appropriate legislative, administrative, and 
                other recommendations to strengthen efforts against 
                money laundering relating to human trafficking.
            (2) Required recommendations.--The recommendations under 
        paragraph (1) shall include--
                    (A) feedback from financial institutions on best 
                practices of successful anti-human trafficking programs 
                currently in place that may be suitable for broader 
                adoption by similarly situated financial institutions;
                    (B) feedback from stakeholders, including 
                trafficking victims and financial institutions, on 
                policy proposals derived from the analysis conducted by 
                the task force referred to in paragraph (1) that would 
                enhance the efforts and programs of financial 
                institutions to detect and deter money laundering 
                related to human trafficking, including any recommended 
                changes to internal policies, procedures, and controls 
                related to human trafficking;
                    (C) any recommended changes to training programs at 
                financial institutions to better equip employees to 
                deter and detect money laundering related to human 
                trafficking;
                    (D) any recommended changes to expand human 
                trafficking-related information sharing among financial 
                institutions and between such financial institutions, 
                appropriate law enforcement agencies, and appropriate 
                Federal agencies; and
                    (E) recommended changes, if necessary, to existing 
                statutory law to more effectively detect and deter 
                money laundering related to human trafficking, where 
                such money laundering involves the use of emerging 
                technologies and virtual currencies.
    (e) (d) Limitation.--Nothing in this Act shall be construed to 
grant rulemaking authority to the Interagency Task Force to Monitor and 
Combat Trafficking.
    (f) (e) Definitions.--As used in this section--
        <DELETED>    (1) the term ``anti-money laundering program'' 
        means any program established by a financial institution 
        pursuant to section 5318(h) of title 31, United States 
        Code;</DELETED>
            (2) (1) the term ``appropriate Federal banking agency'' has 
        the meaning given the term in section 3(q) of the Federal 
        Deposit Insurance Act (12 U.S.C. 1813(q));
            (3) (2) the term ``human trafficking'' means--
                    (A) sex trafficking in which a commercial sex act 
                is induced by force, fraud, or coercion, or in which 
                the person induced to perform such act has not attained 
                18 years of age; or
                    (B) the recruitment, harboring, transportation, 
                provision, or obtaining of a person for labor or 
                services, through the use of force, fraud, or coercion 
                for the purpose of subjection to involuntary servitude, 
                peonage, debt bondage, or slavery;
            (4) (3) the term ``Interagency Task Force to Monitor and 
        Combat Trafficking'' means the Interagency Task Force to 
        Monitor and Combat Trafficking established by the President 
        pursuant to section 105 of the Victims of Trafficking and 
        Violence Protection Act of 2000 (22 U.S.C. 7103); and
            (5) (4) the term ``law enforcement agency'' means an agency 
        of the United States, a State, or a political subdivision of a 
        State, authorized by law or by a government agency to engage in 
        or supervise the prevention, detection, investigation, or 
        prosecution of any violation of criminal or civil law.

SEC. 3. COORDINATION OF HUMAN TRAFFICKING ISSUES BY THE OFFICE OF 
              TERRORISM AND FINANCIAL INTELLIGENCE.

    (a) Functions.--Section 312(a)(4) of title 31, United States Code, 
is amended--
            (1) by redesignating subparagraphs (E), (F), and (G) as 
        subparagraphs (F), (G), and (H), respectively; and
            (2) by inserting after subparagraph (D) the following:
                    ``(E) combating illicit financing relating to human 
                trafficking;''.
    (b) Interagency Coordination.--Section 312(a) of title 31, United 
States Code, is amended by adding at the end the following:
            ``(8) Interagency coordination.--The Secretary of the 
        Treasury, after consultation with the Undersecretary for 
        Terrorism and Financial Crimes, shall designate an office 
        within the OTFI that shall coordinate efforts to combat the 
        illicit financing of human trafficking with--
                    ``(A) other offices of the Department of the 
                Treasury;
                    ``(B) other Federal agencies, including--
                            ``(i) the Office to Monitor and Combat 
                        Trafficking in Persons of the Department of 
                        State; and
                            ``(ii) the Interagency Task Force to 
                        Monitor and Combat Trafficking;
                    ``(C) State and local law enforcement agencies; and
                    ``(D) foreign governments.''.

SEC. 4. ADDITIONAL REPORTING REQUIREMENT UNDER THE TRAFFICKING VICTIMS 
              PROTECTION ACT OF 2000.

    Section 105(d)(7) of the Trafficking Victims Protection Act of 2000 
(22 U.S.C. 7103(d)(7)) is amended--
            (1) in the matter preceding subparagraph (A)--
                    (A) by inserting ``the Committee on Financial 
                Services,'' after ``the Committee on Foreign 
                Affairs,''; and
                    (B) by inserting ``the Committee on Banking, 
                Housing, and Urban Affairs,'' after ``the Committee on 
                Foreign Relations,'';
            (2) in subparagraph (Q)(vii), by striking ``; and'' and 
        inserting a semicolon;
            (3) in subparagraph (R), by striking the period at the end 
        and inserting ``; and''; and
            (4) by adding at the end the following:
                    ``(S) the efforts of the United States to eliminate 
                money laundering related to human trafficking and the 
                number of investigations, arrests, indictments, and 
                convictions in money laundering cases with a nexus to 
                human trafficking.''.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``End Banking for Human Traffickers 
Act of 2017''.

SEC. 2. INCREASING THE ROLE OF THE FINANCIAL INDUSTRY IN COMBATING 
              HUMAN TRAFFICKING.

    (a) Treasury as a Member of the President's Interagency Task Force 
To Monitor and Combat Trafficking.--Section 105(b) of the Victims of 
Trafficking and Violence Protection Act of 2000 (22 U.S.C. 7103(b)) is 
amended by inserting ``the Secretary of the Treasury,'' after ``the 
Secretary of Education,''.
    (b) Required Review of Procedures.--Not later than 180 days after 
the date of enactment of this Act, the Financial Institutions 
Examination Council shall, in consultation with the Secretary of the 
Treasury and other appropriate law enforcement agencies, take the 
following actions:
            (1) Review and enhance, where necessary, training and 
        examinations procedures to improve the ability of anti-money 
        laundering programs to target human trafficking operations.
            (2) Review and enhance, where necessary, procedures for 
        referring potential human trafficking cases to the appropriate 
        law enforcement agency.
    (c) Interagency Task Force Recommendations Targeting Money 
Laundering Related to Human Trafficking.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Interagency Task Force to Monitor 
        and Combat Trafficking shall prepare and submit to Congress, 
        the Secretary of the Treasury, and each appropriate Federal 
        banking agency a series of legislative, administrative, and 
        regulatory recommendations, if necessary, to revise anti-money 
        laundering programs of financial institutions in order to 
        specifically target money laundering related to human 
        trafficking, as described in paragraph (2).
            (2) Required recommendations.--The recommendations required 
        under paragraph (1) shall, at a minimum, include the following:
                    (A) Successful anti-human trafficking programs 
                currently in place at financial institutions that are 
                suitable for broader adoption.
                    (B) Recommended changes, if necessary, to the 
                internal policies, procedures, and controls at 
                financial institutions so that such institutions can 
                better deter and detect money laundering related to 
                human trafficking.
                    (C) Recommended changes, if necessary, to ongoing 
                employee training programs at financial institutions so 
                that those institutions can better equip employees to 
                deter and detect money laundering related to human 
                trafficking, including the training of legal counsel, 
                risk managers, and compliance officers.
                    (D) Recommended revisions, if necessary, to 
                existing regulatory requirements and guidelines for the 
                reporting of suspicious transactions by financial 
                institutions, as required pursuant to section 5318(g) 
                of title 31, United States Code, in order to facilitate 
                the collection of data on instances of suspected human 
                trafficking.
    (d) Additional Reporting Requirement.--Section 110(b) of the 
Trafficking Victims Protection Act of 2000 (22 U.S.C. 7107(b)) is 
amended by adding at the end the following:
            ``(4) Description of efforts of united states to eliminate 
        money laundering related to human trafficking.--In addition to 
        the information required in the annual report under paragraph 
        (1) and the interim report under paragraph (2), the Secretary 
        of State, in consultation with the Attorney General and the 
        Secretary of the Treasury, shall include in each such report a 
        description of efforts of the United States to eliminate money 
        laundering related to human trafficking and the number of 
        investigations, arrests, indictments and convictions in money 
        laundering cases with a nexus to human trafficking.''.
    (e) Limitation.--Nothing in this Act shall be construed to grant 
rulemaking authority to the Interagency Task Force to Monitor and 
Combat Trafficking.
    (f) Definitions.--As used in this section--
            (1) the term ``anti-money laundering program'' means any 
        program established by a financial institution pursuant to 
        section 5318(h) of title 31, United States Code;
            (2) the term ``appropriate Federal banking agency'' has the 
        meaning given the term in section 3(q) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1813(q));
            (3) the term ``human trafficking'' means--
                    (A) sex trafficking in which a commercial sex act 
                is induced by force, fraud, or coercion, or in which 
                the person induced to perform such act has not attained 
                18 years of age; or
                    (B) the recruitment, harboring, transportation, 
                provision, or obtaining of a person for labor or 
                services, through the use of force, fraud, or coercion 
                for the purpose of subjection to involuntary servitude, 
                peonage, debt bondage, or slavery;
            (4) the term ``Interagency Task Force to Monitor and Combat 
        Trafficking'' means the Interagency Task Force to Monitor and 
        Combat Trafficking established by the President pursuant to 
        section 105 of the Victims of Trafficking and Violence 
        Protection Act of 2000 (22 U.S.C. 7103); and
            (5) the term ``law enforcement agency'' means an agency of 
        the United States, a State, or a political subdivision of a 
        State, authorized by law or by a government agency to engage in 
        or supervise the prevention, detection, investigation, or 
        prosecution of any violation of criminal or civil law.

SEC. 3. MINIMUM STANDARDS FOR THE ELIMINATION OF TRAFFICKING.

    Section 108(b) of the Trafficking Victims Protection Act of 2000 
(22 U.S.C. 7106(b)) is amended by adding at the end the following new 
paragraph:
            ``(13) Whether the government of the country, consistent 
        with the capacity of the country, has in effect a framework to 
        prevent financial transactions involving the proceeds of severe 
        forms of trafficking in persons, and is taking steps to 
        implement such a framework, including by investigating, 
        prosecuting, convicting, and sentencing individuals who attempt 
        or conduct such transactions.''.
                                                 Union Calendar No. 439

115th CONGRESS

  2d Session

                               H. R. 2219

                  [Report No. 115-569, Parts I and II]

_______________________________________________________________________

                                 A BILL

   To increase the role of the financial industry in combating human 
                              trafficking.

_______________________________________________________________________

                           February 23, 2018

   Reported from the Committee on Foreign Affairs with an amendment; 
committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed
```