IB 

Union Calendar No. 195 

116TH CONGRESS 

1ST SESSION H. R. 2514 

[Report No. 116–245, Part I] 

To make reforms to the Federal Bank Secrecy Act and anti-money laundering 

laws, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 3, 2019 

Mr. CLEAVER introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Ways 

and Means, 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 

OCTOBER 21, 2019 

Additional sponsors: Mr. STIVERS and Mrs. CAROLYN B. MALONEY of New 

York 

OCTOBER 21, 2019 

Reported from the Committee on Financial Services with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

OCTOBER 21, 2019 

Committee on Ways and Means discharged; committed to the Committee of 

the Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on May 3, 2019] 


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A BILL 

To make reforms to the Federal Bank Secrecy Act and 

anti-money laundering laws, and for other purposes. 


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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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the ‘‘Co5 ordinating Oversight, Upgrading and Innovating Tech6 nology, and Examiner Reform Act of 2019’’ or the 

7 ‘‘COUNTER Act of 2019’’. 

8 (b) TABLE OF CONTENTS.—The table of contents for 

9 this Act is as follows: 

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 Attache ́s 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 II—IMPROVING AML/CFT OVERSIGHT 

Sec. 201. OECD pilot program on sharing of suspicious activity reports within 

a financial group. 

Sec. 202. Training for examiners on AML/CFT. 

Sec. 203. Sharing of compliance resources. 

Sec. 204. GAO Study on feedback loops. 

Sec. 205. FinCEN study on BSA value. 

Sec. 206. Sharing of threat pattern and trend information. 

Sec. 207. Modernization and upgrading whistleblower protections. 

Sec. 208. Certain violators barred from serving on boards of United States financial institutions. 

Sec. 209. Additional damages for repeat Bank Secrecy Act violators. 

Sec. 210. Justice annual report on deferred and non-prosecution agreements. 

Sec. 211. Return of profits and bonuses. 

Sec. 212. Prohibition on tax deductions for attorney’s fees related to Bank Secrecy 

Act settlements and court costs. 


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Sec. 213. Application of Bank Secrecy Act to dealers in antiquities. 

Sec. 214. Geographic targeting order. 

Sec. 215. Study and revisions to currency transaction reports and suspicious activity reports. 

Sec. 216. Streamlining requirements for currency transaction reports and suspicious activity reports. 

TITLE III—MODERNIZING THE AML SYSTEM 

Sec. 301. Encouraging innovation in BSA compliance. 

Sec. 302. Innovation Labs. 

Sec. 303. Innovation Council. 

Sec. 304. Parallel runs rulemaking. 

Sec. 305. FinCEN study on use of emerging technologies. 

1 SEC. 2. BANK SECRECY ACT DEFINITION. 

2 Section 5312(a) of title 31, United States Code, is 

3 amended by adding at the end the following: 

4 ‘‘(7) BANK SECRECY ACT.—The term ‘Bank Se5 crecy act’ means— 

6 ‘‘(A) section 21 of the Federal Deposit In7 surance Act; 

8 ‘‘(B) chapter 2 of title I of Public Law 91– 

9 508; and 

10 ‘‘(C) this subchapter.’’. 

11 TITLE I—STRENGTHENING 

12 TREASURY 

13 SEC. 101. IMPROVING THE DEFINITION AND PURPOSE OF 

14 THE BANK SECRECY ACT. 

15 Section 5311 of title 31, United States Code, is amend16 ed— 

17 (1) by inserting ‘‘to protect our national secu18 rity, to safeguard the integrity of the international fi19 nancial system, and’’ before ‘‘to require’’; and 


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1 (2) by inserting ‘‘to law enforcement’’ before ‘‘in 

2 criminal’’. 

3 SEC. 102. SPECIAL HIRING AUTHORITY. 

4 (a) IN GENERAL.—Section 310 of title 31, United 

5 States Code, is amended— 

6 (1) by redesignating subsection (d) as subsection 

7 (g); and 

8 (2) by inserting after subsection (c) the fol9 lowing: 

10 ‘‘(d) SPECIAL HIRING AUTHORITY.— 

11 ‘‘(1) IN GENERAL.—The Secretary of the Treas12 ury may appoint, without regard to the provisions of 

13 sections 3309 through 3318 of title 5, candidates di14 rectly to positions in the competitive service (as de15 fined in section 2102 of that title) in FinCEN. 

16 ‘‘(2) PRIMARY RESPONSIBILITIES.—The primary 

17 responsibility of candidates appointed pursuant to 

18 paragraph (1) shall be to provide substantive support 

19 in support of the duties described in subparagraphs 

20 (A), (B), (E), and (F) of subsection (b)(2).’’. 

21 (b) REPORT.—Not later than 360 days after the date 

22 of enactment of this Act, and every year thereafter for 7 

23 years, the Director of the Financial Crimes Enforcement 

24 Network shall submit a report to the Committee on Finan25 cial Services of the House of Representatives and the ComVerDate Sep 11 2014 21:29 Oct 21, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H2514.RH H2514

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1 mittee on Banking, Housing, and Urban Affairs of the Sen2 ate that includes— 

3 (1) the number of new employees hired since the 

4 preceding report through the authorities described 

5 under section 310(d) of title 31, United States Code, 

6 along with position titles and associated pay grades 

7 for such hires; and 

8 (2) a copy of any Federal Government survey of 

9 staff perspectives at the Office of Terrorism and Fi10 nancial Intelligence, including findings regarding the 

11 Office and the Financial Crimes Enforcement Net12 work from the most recently administered Federal 

13 Employee Viewpoint Survey. 

14 SEC. 103. CIVIL LIBERTIES AND PRIVACY OFFICER. 

15 (a) APPOINTMENT OF OFFICERS.—Not later than the 

16 end of the 3-month period beginning on the date of enact17 ment of this Act, a Civil Liberties and Privacy Officer shall 

18 be appointed, from among individuals who are attorneys 

19 with expertise in data privacy laws— 

20 (1) within each Federal functional regulator, by 

21 the head of the Federal functional regulator; 

22 (2) within the Financial Crimes Enforcement 

23 Network, by the Secretary of the Treasury; and 


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1 (3) within the Internal Revenue Service Small 

2 Business and Self-Employed Tax Center, by the Sec3 retary of the Treasury. 

4 (b) DUTIES.—Each Civil Liberties and Privacy Offi5 cer shall, with respect to the applicable regulator, Network, 

6 or Center within which the Officer is located— 

7 (1) be consulted each time Bank Secrecy Act or 

8 anti-money laundering regulations affecting civil lib9 erties or privacy are developed or reviewed; 

10 (2) be consulted on information-sharing pro11 grams, including those that provide access to person12 ally identifiable information; 

13 (3) ensure coordination and clarity between 

14 anti-money laundering, civil liberties, and privacy 

15 regulations; 

16 (4) contribute to the evaluation and regulation of 

17 new technologies that may strengthen data privacy 

18 and the protection of personally identifiable informa19 tion collected by each Federal functional regulator; 

20 and 

21 (5) develop metrics of program success. 

22 (c) DEFINITIONS.—For purposes of this section: 

23 (1) BANK SECRECY ACT.—The term ‘‘Bank Se24 crecy Act’’ has the meaning given that term under 

25 section 5312 of title 31, United States Code. 


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1 (2) FEDERAL FUNCTIONAL REGULATOR.—The 

2 term ‘‘Federal functional regulator’’ means the Board 

3 of Governors of the Federal Reserve System, the 

4 Comptroller of the Currency, the Federal Deposit In5 surance Corporation, the National Credit Union Ad6 ministration, the Securities and Exchange Commis7 sion, and the Commodity Futures Trading Commis8 sion. 

9 SEC. 104. CIVIL LIBERTIES AND PRIVACY COUNCIL. 

10 (a) ESTABLISHMENT.—There is established the Civil 

11 Liberties and Privacy Council (hereinafter in this section 

12 referred to as the ‘‘Council’’), which shall consist of the Civil 

13 Liberties and Privacy Officers appointed pursuant to sec14 tion 103. 

15 (b) CHAIR.—The Director of the Financial Crimes En16 forcement Network shall serve as the Chair of the Council. 

17 (c) DUTY.—The members of the Council shall coordi18 nate on activities related to their duties as Civil Liberties 

19 Privacy Officers, but may not supplant the individual 

20 agency determinations on civil liberties and privacy. 

21 (d) MEETINGS.—The meetings of the Council— 

22 (1) shall be at the call of the Chair, but in no 

23 case may the Council meet less than quarterly; 

24 (2) may include open and partially closed ses25 sions, as determined necessary by the Council; and 


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1 (3) shall include participation by public and 

2 private entities and law enforcement agencies. 

3 (e) REPORT.—The Chair of the Council shall issue an 

4 annual report to the Congress on the program and policy 

5 activities, including the success of programs as measured 

6 by metrics of program success developed pursuant to section 

7 103(b)(5), of the Council during the previous year and any 

8 legislative recommendations that the Council may have. 

9 (f) NONAPPLICABILITY OF FACA.—The Federal Advi10 sory Committee Act (5 U.S.C. App.) shall not apply to the 

11 Council. 

12 SEC. 105. INTERNATIONAL COORDINATION. 

13 (a) IN GENERAL.—The Secretary of the Treasury shall 

14 work with the Secretary’s foreign counterparts, including 

15 through the Financial Action Task Force, the International 

16 Monetary Fund, the World Bank, the Egmont Group of Fi17 nancial Intelligence Units, the Organisation for Economic 

18 Co-operation and Development, and the United Nations, to 

19 promote stronger anti-money laundering frameworks and 

20 enforcement of anti-money laundering laws. 

21 (b) COOPERATION GOAL.—In carrying out subsection 

22 (a), the Secretary of the Treasury may work directly with 

23 foreign counterparts and other organizations where the goal 

24 of cooperation can best be met. 

25 (c) INTERNATIONAL MONETARY FUND.— 


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1 (1) SUPPORT FOR CAPACITY OF THE INTER2 NATIONAL MONETARY FUND TO PREVENT MONEY

3 LAUNDERING AND FINANCING OF TERRORISM.—Title 

4 XVI of the International Financial Institutions Act 

5 (22 U.S.C. 262p et seq.) is amended by adding at the 

6 end the following: 

7 ‘‘SEC. 1629. SUPPORT FOR CAPACITY OF THE INTER8 NATIONAL MONETARY FUND TO PREVENT 

9 MONEY LAUNDERING AND FINANCING OF 

10 TERRORISM. 

11 ‘‘The Secretary of the Treasury shall instruct the 

12 United States Executive Director at the International Mon13 etary Fund to support the increased use of the administra14 tive budget of the Fund for technical assistance that 

15 strengthens the capacity of Fund members to prevent money 

16 laundering and the financing of terrorism.’’. 

17 (2) NATIONAL ADVISORY COUNCIL REPORT TO

18 CONGRESS.—The Chairman of the National Advisory 

19 Council on International Monetary and Financial 

20 Policies shall include in the report required by section 

21 1701 of the International Financial Institutions Act 

22 (22 U.S.C. 262r) a description of— 

23 (A) the activities of the International Mone24 tary Fund in the most recently completed fiscal 

25 year to provide technical assistance that 


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1 strengthens the capacity of Fund members to 

2 prevent money laundering and the financing of 

3 terrorism, and the effectiveness of the assistance; 

4 and 

5 (B) the efficacy of efforts by the United 

6 States to support such technical assistance 

7 through the use of the Fund’s administrative 

8 budget, and the level of such support. 

9 (3) SUNSET.—Effective on the date that is the 

10 end of the 4-year period beginning on the date of en11 actment of this Act, section 1629 of the International 

12 Financial Institutions Act, as added by paragraph 

13 (1), is repealed. 

14 SEC. 106. TREASURY ATTACHE ́ S PROGRAM. 

15 (a) IN GENERAL.—Title 31, United States Code, is 

16 amended by inserting after section 315 the following: 

17 ‘‘§ 316. Treasury Attache ́s Program 

18 ‘‘(a) IN GENERAL.—There is established the Treasury 

19 Attache ́s Program, under which the Secretary of the Treas20 ury shall appoint employees of the Department of the Treas21 ury, after nomination by the Director of the Financial 

22 Crimes Enforcement Network (‘FinCEN’), as a Treasury 

23 attache ́, who shall— 

24 ‘‘(1) be knowledgeable about the Bank Secrecy 

25 Act and anti-money laundering issues; 


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1 ‘‘(2) be co-located in a United States embassy; 

2 ‘‘(3) perform outreach with respect to Bank Se3 crecy Act and anti-money laundering issues; 

4 ‘‘(4) establish and maintain relationships with 

5 foreign counterparts, including employees of min6 istries of finance, central banks, and other relevant of7 ficial entities; 

8 ‘‘(5) conduct outreach to local and foreign finan9 cial institutions and other commercial actors, includ10 ing— 

11 ‘‘(A) information exchanges through 

12 FinCEN and FinCEN programs; and 

13 ‘‘(B) soliciting buy-in and cooperation for 

14 the implementation of— 

15 ‘‘(i) United States and multilateral 

16 sanctions; and 

17 ‘‘(ii) international standards on anti18 money laundering and the countering of the 

19 financing of terrorism; and 

20 ‘‘(6) perform such other actions as the Secretary 

21 determines appropriate. 

22 ‘‘(b) NUMBER OF ATTACHE ́S.—The number of Treas23 ury attache ́s appointed under this section at any one time 

24 shall be not fewer than 6 more employees than the number 


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1 of employees of the Department of the Treasury serving as 

2 Treasury attache ́s on March 1, 2019. 

3 ‘‘(c) COMPENSATION.—Each Treasury attache ́ ap4 pointed under this section and located at a United States 

5 embassy shall receive compensation at the higher of— 

6 ‘‘(1) the rate of compensation provided to a For7 eign Service officer at a comparable career level serv8 ing at the same embassy; or 

9 ‘‘(2) the rate of compensation the Treasury 

10 attache ́ would otherwise have received, absent the ap11 plication of this subsection. 

12 ‘‘(d) BANK SECRECY ACT DEFINED.—In this section, 

13 the term ‘Bank Secrecy Act’ has the meaning given that 

14 term under section 5312.’’. 

15 (b) CLERICAL AMENDMENT.—The table of contents for 

16 chapter 3 of title 31, United States Code, is amended by 

17 inserting after the item relating to section 315 the following: 

‘‘316. Treasury Attache ́s Program.’’. 

18 SEC. 107. INCREASING TECHNICAL ASSISTANCE FOR INTER19 NATIONAL COOPERATION. 

20 (a) IN GENERAL.—There is authorized to be appro21 priated for each of fiscal years 2020 through 2024 to the 

22 Secretary of the Treasury for purposes of providing tech23 nical assistance that promotes compliance with inter24 national standards and best practices, including in par25 ticular those aimed at the establishment of effective antiVerDate Sep 11 2014 21:29 Oct 21, 2019 Jkt 099200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6203 E:\BILLS\H2514.RH H2514

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1 money laundering and countering the financing of ter2 rorism regimes, in an amount equal to twice the amount 

3 authorized for such purpose for fiscal year 2019. 

4 (b) ACTIVITY AND EVALUATION REPORT.—Not later 

5 than 360 days after enactment of this Act, and every year 

6 thereafter for five years, the Secretary of the Treasury shall 

7 issue a report to the Congress on the assistance (as described 

8 under subsection (a)) of the Office of Technical Assistance 

9 of the Department of the Treasury containing— 

10 (1) a narrative detailing the strategic goals of 

11 the Office in the previous year, with an explanation 

12 of how technical assistance provided in the previous 

13 year advances the goals; 

14 (2) a description of technical assistance provided 

15 by the Office in the previous year, including the objec16 tives and delivery methods of the assistance; 

17 (3) a list of beneficiaries and providers (other 

18 than Office staff) of the technical assistance; 

19 (4) a description of how technical assistance pro20 vided by the Office complements, duplicates, or other21 wise affects or is affected by technical assistance pro22 vided by the international financial institutions (as 

23 defined under section 1701(c) of the International Fi24 nancial Institutions Act); and 


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1 (5) a copy of any Federal Government survey of 

2 staff perspectives at the Office of Technical Assistance, 

3 including any findings regarding the Office from the 

4 most recently administered Federal Employee View5 point Survey. 

6 SEC. 108. FINCEN DOMESTIC LIAISONS. 

7 Section 310 of title 31, United States Code, as amend8 ed by section 102, is further amended by inserting after sub9 section (d) the following: 

10 ‘‘(e) FINCEN DOMESTIC LIAISONS.— 

11 ‘‘(1) IN GENERAL.—The Director of FinCEN 

12 shall appoint at least 6 senior FinCEN employees as 

13 FinCEN Domestic Liaisons, who shall— 

14 ‘‘(A) each be assigned to focus on a specific 

15 region of the United States; 

16 ‘‘(B) be located at an office in such region 

17 (or co-located at an office of the Board of Gov18 ernors of the Federal Reserve System in such re19 gion); and 

20 ‘‘(C) perform outreach to BSA officers at fi21 nancial institutions (including non-bank finan22 cial institutions) and persons who are not finan23 cial institutions, especially with respect to ac24 tions taken by FinCEN that require specific acVerDate Sep 11 2014 21:29 Oct 21, 2019 Jkt 099200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6203 E:\BILLS\H2514.RH H2514

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1 tions by, or have specific effects on, such institu2 tions or persons, as determined by the Director. 

3 ‘‘(2) DEFINITIONS.—In this subsection: 

4 ‘‘(A) BSA OFFICER.—The term ‘BSA offi5 cer’ means an employee of a financial institution 

6 whose primary job responsibility involves com7 pliance with the Bank Secrecy Act, as such term 

8 is defined under section 5312. 

9 ‘‘(B) FINANCIAL INSTITUTION.—The term 

10 ‘financial institution’ has the meaning given 

11 that term under section 5312.’’. 

12 SEC. 109. FINCEN EXCHANGE. 

13 Section 310 of title 31, United States Code, as amend14 ed by section 108, is further amended by inserting after sub15 section (e) the following: 

16 ‘‘(f) FINCEN EXCHANGE.— 

17 ‘‘(1) ESTABLISHMENT.—The FinCEN Exchange 

18 is hereby established within FinCEN, which shall con19 sist of the FinCEN Exchange program of FinCEN in 

20 existence on the day before the date of enactment of 

21 this paragraph. 

22 ‘‘(2) PURPOSE.—The FinCEN Exchange shall 

23 facilitate a voluntary public-private information 

24 sharing partnership among law enforcement, finan25 cial institutions, and FinCEN to— 


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1 ‘‘(A) effectively and efficiently combat 

2 money laundering, terrorism financing, orga3 nized crime, and other financial crimes; 

4 ‘‘(B) protect the financial system from il5 licit use; and 

6 ‘‘(C) promote national security. 

7 ‘‘(3) REPORT.— 

8 ‘‘(A) IN GENERAL.—Not later than one year 

9 after the date of enactment of this subsection, 

10 and annually thereafter for the next five years, 

11 the Secretary of the Treasury shall submit to the 

12 Committee on Financial Services of the House of 

13 Representatives and the Committee on Banking, 

14 Housing, and Urban Affairs of the Senate a re15 port containing— 

16 ‘‘(i) an analysis of the efforts under17 taken by the FinCEN Exchange and the re18 sults of such efforts; 

19 ‘‘(ii) an analysis of the extent and ef20 fectiveness of the FinCEN Exchange, includ21 ing any benefits realized by law enforce22 ment from partnership with financial insti23 tutions; and 

24 ‘‘(iii) any legislative, administrative, 

25 or other recommendations the Secretary 


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1 may have to strengthen FinCEN Exchange 

2 efforts. 

3 ‘‘(B) CLASSIFIED ANNEX.—Each report 

4 under subparagraph (A) may include a classified 

5 annex. 

6 ‘‘(4) INFORMATION SHARING REQUIREMENT.— 

7 Information shared pursuant to this subsection shall 

8 be shared in compliance with all other applicable 

9 Federal laws and regulations. 

10 ‘‘(5) RULE OF CONSTRUCTION.—Nothing under 

11 this subsection may be construed to create new infor12 mation sharing authorities related to the Bank Se13 crecy Act (as such term is defined under section 5312 

14 of title 31, United States Code). 

15 ‘‘(6) FINANCIAL INSTITUTION DEFINED.—In this 

16 subsection, the term ‘financial institution’ has the 

17 meaning given that term under section 5312.’’. 

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

19 LAUNDERING. 

20 (a) STUDY.—The Secretary of the Treasury shall carry 

21 out a study, in consultation with appropriate private sector 

22 stakeholders and Federal departments and agencies, on 

23 trade-based money laundering. 

24 (b) REPORT.—Not later than the end of the 1-year pe25 riod beginning on the date of the enactment of this Act, 


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1 the Secretary shall issue a report to the Congress con2 taining— 

3 (1) all findings and determinations made in car4 rying out the study required under subsection (a); 

5 and 

6 (2) proposed strategies to combat trade-based 

7 money laundering. 

8 (c) CLASSIFIED ANNEX.—The report required under 

9 this section may include a classified annex. 

10 (d) CONTRACTING AUTHORITY.—The Secretary may 

11 contract with a private third-party to carry out the study 

12 required under this section. 

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

14 (a) REVIEW.—The Secretary of the Treasury, in con15 sultation with appropriate private sector stakeholders, ex16 aminers, and the Federal functional regulators (as defined 

17 under section 103) and other relevant stakeholders, shall un18 dertake a formal review of— 

19 (1) any adverse consequences of financial institu20 tions de-risking entire categories of relationships, in21 cluding charities, embassy accounts, money services 

22 businesses (as defined under section 1010.100(ff) of 

23 title 31, Code of Federal Regulations) and their 

24 agents, countries, international and domestic regions, 

25 and respondent banks; 


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1 (2) the reasons why financial institutions are en2 gaging in de-risking; 

3 (3) the association with and effects of de-risking 

4 on money laundering and financial crime actors and 

5 activities; 

6 (4) the most appropriate ways to promote finan7 cial inclusion, particularly with respect to developing 

8 countries, while maintaining compliance with the 

9 Bank Secrecy Act, including an assessment of policy 

10 options to— 

11 (A) more effectively tailor Federal actions 

12 and penalties to the size of foreign financial in13 stitutions and any capacity limitations of for14 eign governments; and 

15 (B) reduce compliance costs that may lead 

16 to the adverse consequences described in para17 graph (1); 

18 (5) formal and informal feedback provided by ex19 aminers that may have led to de-risking; and 

20 (6) the relationship between resources dedicated 

21 to compliance and overall sophistication of compli22 ance efforts at entities that may be experiencing de23 risking versus those that have not experienced de-risk24 ing. 


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1 (b) DE-RISKING STRATEGY.—The Secretary shall de2 velop a strategy to reduce de-risking and adverse con3 sequences related to de-risking. 

4 (c) REPORT.—Not later than the end of the 1-year pe5 riod beginning on the date of the enactment of this Act, 

6 the Secretary, in consultation with the Federal functional 

7 regulators and other relevant stakeholders, shall issue a re8 port to the Congress containing— 

9 (1) all findings and determinations made in car10 rying out the study required under subsection (a); 

11 and 

12 (2) the strategy developed pursuant to subsection 

13 (b). 

14 (d) DEFINITIONS.—In this section: 

15 (1) DE-RISKING.—The term ‘‘de-risking’’ means 

16 the wholesale closing of accounts or limiting of finan17 cial services for a category of customer due to unsub18 stantiated risk as it relates to compliance with the 

19 Bank Secrecy Act. 

20 (2) BSA TERMS.—The terms ‘‘Bank Secrecy 

21 Act’’ and ‘‘financial institution’’ have the meaning 

22 given those terms, respectively, under section 5312 off 

23 title 31, United States Code. 


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1 SEC. 112. AML EXAMINATION AUTHORITY DELEGATION 

2 STUDY. 

3 (a) STUDY.—The Secretary of the Treasury shall carry 

4 out a study on the Secretary’s delegation of examination 

5 authority under the Bank Secrecy Act, including— 

6 (1) an evaluation of the efficacy of the delega7 tion, especially with respect to the mission of the 

8 Bank Secrecy Act; 

9 (2) whether the delegated agencies have appro10 priate resources to perform their delegated responsibil11 ities; and 

12 (3) whether the examiners in delegated agencies 

13 have sufficient training and support to perform their 

14 responsibilities. 

15 (b) REPORT.—Not later than one year after the date 

16 of enactment of this Act, the Secretary of the Treasury shall 

17 submit to the Committee on Financial Services of the House 

18 of Representatives and the Committee on Banking, Hous19 ing, and Urban Affairs of the Senate a report containing— 

20 (1) all findings and determinations made in car21 rying out the study required under subsection (a); 

22 and 

23 (2) recommendations to improve the efficacy of 

24 delegation authority, including the potential for de25 delegation of any or all such authority where it may 

26 be appropriate. 


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1 (c) BANK SECRECY ACT DEFINED.—The term ‘‘Bank 

2 Secrecy Act’’ has the meaning given that term under section 

3 5312 off title 31, United States Code. 

4 SEC. 113. STUDY AND STRATEGY ON CHINESE MONEY LAUN5 DERING. 

6 (a) STUDY.—The Secretary of the Treasury shall carry 

7 out a study on the extent and effect of Chinese money laun8 dering activities in the United States and worldwide. 

9 (b) STRATEGY TO COMBAT CHINESE MONEY LAUN10 DERING.—Upon the completion of the study required under 

11 subsection (a), the Secretary shall, in consultation with 

12 such other Federal departments and agencies as the Sec13 retary determines appropriate, develop a strategy to combat 

14 Chinese money laundering activities. 

15 (c) REPORT.—Not later than the end of the 1-year pe16 riod beginning on the date of enactment of this Act, the 

17 Secretary of the Treasury shall issue a report to Congress 

18 containing— 

19 (1) all findings and determinations made in car20 rying out the study required under subsection (a); 

21 and 

22 (2) the strategy developed under subsection (b). 


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1 TITLE II—IMPROVING AML/CFT 

2 OVERSIGHT 

3 SEC. 201. OECD PILOT PROGRAM ON SHARING OF SUS4 PICIOUS ACTIVITY REPORTS WITHIN A FINAN5 CIAL GROUP. 

6 (a) IN GENERAL.— 

7 (1) SHARING WITH FOREIGN BRANCHES AND AF8 FILIATES.—Section 5318(g) of title 31, United States 

9 Code, is amended by adding at the end the following: 

10 ‘‘(5) OECD PILOT PROGRAM ON SHARING WITH

11 FOREIGN BRANCHES, SUBSIDIARIES, AND AFFILI12 ATES.— 

13 ‘‘(A) IN GENERAL.—Not later than 180 

14 days after the date of the enactment of this para15 graph, the Secretary of the Treasury shall issue 

16 rules, subject to such controls and restrictions as 

17 the Director of the Financial Crimes Enforce18 ment Network determines appropriate, estab19 lishing the pilot program described under sub20 paragraph (B). In prescribing such rules, the 

21 Secretary shall ensure that the sharing of infor22 mation described under such subparagraph (B) 

23 is subject to appropriate standards and require24 ments regarding data security and the confiden25 tiality of personally identifiable information. 


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1 ‘‘(B) PILOT PROGRAM DESCRIBED.—The 

2 pilot program required under this paragraph 

3 shall— 

4 ‘‘(i) permit any financial institution 

5 with a reporting obligation under this sub6 section to share reports (and information on 

7 such reports) under this subsection with the 

8 institution’s foreign branches, subsidiaries, 

9 and affiliates for the purpose of combating 

10 illicit finance risks, notwithstanding any 

11 other provision of law except subparagraph 

12 (C), but only if such foreign branch, sub13 sidiary, or affiliate is located in a jurisdic14 tion that is a member of the Organisation 

15 for Economic Co-operation and Develop16 ment; 

17 ‘‘(ii) terminate on the date that is five 

18 years after the date of enactment of this 

19 paragraph, except that the Secretary may 

20 extend the pilot program for up to two 

21 years upon submitting a report to the Com22 mittee on Financial Services of the House of 

23 Representatives and the Committee on 

24 Banking, Housing, and Urban Affairs of 

25 the Senate that includes— 


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1 ‘‘(I) a certification that the exten2 sion is in the national interest of the 

3 United States, with a detailed expla4 nation of the reasons therefor; 

5 ‘‘(II) an evaluation of the useful6 ness of the pilot program, including a 

7 detailed analysis of any illicit activity 

8 identified or prevented as a result of 

9 the program; and 

10 ‘‘(III) a detailed legislative pro11 posal providing for a long-term exten12 sion of the pilot program activities, in13 cluding expected budgetary resources 

14 for the activities, if the Secretary deter15 mines that a long-term extension is ap16 propriate. 

17 ‘‘(C) PROHIBITION INVOLVING CERTAIN JU18 RISDICTIONS.—In issuing the regulations re19 quired under subparagraph (A), the Secretary 

20 may not permit a financial institution to share 

21 information on reports under this subsection 

22 with a foreign branch, subsidiary, or affiliate lo23 cated in a jurisdiction that— 

24 ‘‘(i) is subject to countermeasures im25 posed by the Federal Government; or 


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1 ‘‘(ii) the Secretary has determined can2 not reasonably protect the privacy and con3 fidentiality of such information. 

4 ‘‘(D) IMPLEMENTATION UPDATES.—Not 

5 later than 360 days after the date rules are 

6 issued under subparagraph (A), and annually 

7 thereafter for three years, the Secretary, or the 

8 Secretary’s designee, shall brief the Committee on 

9 Financial Services of the House of Representa10 tives and the Committee on Banking, Housing, 

11 and Urban Affairs of the Senate on— 

12 ‘‘(i) the degree of any information 

13 sharing permitted under the pilot program, 

14 and a description of criteria used by the 

15 Secretary to evaluate the appropriateness of 

16 the information sharing; 

17 ‘‘(ii) the effectiveness of the pilot pro18 gram in identifying or preventing the viola19 tion of a United States law or regulation, 

20 and mechanisms that may improve such ef21 fectiveness; and 

22 ‘‘(iii) any recommendations to amend 

23 the design of the pilot program, or to in24 clude specific non-OECD jurisdictions in 

25 the program. 


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1 ‘‘(6) TREATMENT OF FOREIGN JURISDICTION2 ORIGINATED REPORTS.—A report received by a finan3 cial institution from a foreign affiliate with respect 

4 to a suspicious transaction relevant to a possible vio5 lation of law or regulation shall be subject to the same 

6 confidentiality requirements provided under this sub7 section for a report of a suspicious transaction de8 scribed under paragraph (1).’’. 

9 (2) NOTIFICATION PROHIBITIONS.—Section 

10 5318(g)(2)(A) of title 31, United States Code, is 

11 amended— 

12 (A) in clause (i), by inserting after ‘‘trans13 action has been reported’’ the following: ‘‘or oth14 erwise reveal any information that would reveal 

15 that the transaction has been reported, including 

16 materials prepared or used by the financial in17 stitution for the purpose of identifying and de18 tecting potentially suspicious activity’’; and 

19 (B) in clause (ii), by inserting after ‘‘trans20 action has been reported,’’ the following: ‘‘or oth21 erwise reveal any information that would reveal 

22 that the transaction has been reported, including 

23 materials prepared or used by the financial in24 stitution for the purpose of identifying and de25 tecting potentially suspicious activity,’’. 


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1 (b) RULEMAKING.—Not later than the end of the 1- 

2 year period beginning on the date of enactment of this Act, 

3 the Secretary of the Treasury shall issue regulations to 

4 carry out the amendments made by this section. 

5 SEC. 202. TRAINING FOR EXAMINERS ON AML/CFT. 

6 (a) IN GENERAL.—Subchapter II of chapter 53 of title 

7 31, United States Code, is amended by adding at the end 

8 the following: 

9 ‘‘§ 5333. AML/CFT Training 

10 ‘‘(a) TRAINING REQUIREMENT.—Each Federal exam11 iner reviewing compliance with the Bank Secrecy Act shall 

12 attend at least 10 hours of annual training on anti-money 

13 laundering (AML) and the countering of the financing of 

14 terrorism (CFT), including— 

15 ‘‘(1) potential risk profiles and red flags that 

16 may be encountered during examinations; 

17 ‘‘(2) financial crime patterns and trends; 

18 ‘‘(3) the high-level context for why AML and 

19 CFT programs are necessary for law enforcement 

20 agencies and other national security agencies, and 

21 what risks the programs seek to mitigate; and 

22 ‘‘(4) de-risking and its effect on the provision of 

23 financial services. 

24 ‘‘(b) TRAINING MATERIALS AND STANDARDS.—The 

25 Secretary of the Treasury shall, in consultation with the 


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1 Financial Institutions Examination Council, the Financial 

2 Crimes Enforcement Network, and State, Federal, and 

3 Tribal law enforcement agencies, establish appropriate 

4 training materials and standards for use in the training 

5 required under subsection (a).’’. 

6 (b) CLERICAL AMENDMENT.—The table of contents for 

7 chapter 53 of title 31, United States Code, is amended by 

8 inserting after the item relating to section 5332 the fol9 lowing: 

‘‘5333. AML/CFT Training.’’. 

10 SEC. 203. SHARING OF COMPLIANCE RESOURCES. 

11 (a) IN GENERAL.—Section 5318 of title 31, United 

12 States Code, is amended by adding at the end the following: 

13 ‘‘(o) SHARING OF COMPLIANCE RESOURCES.— 

14 ‘‘(1) SHARING PERMITTED.—Two or more finan15 cial institutions may enter into collaborative arrange16 ments in order to more efficiently comply with the re17 quirements of this subchapter. 

18 ‘‘(2) OUTREACH.—The Secretary of the Treasury 

19 and the appropriate supervising agencies shall carry 

20 out an outreach program to provide financial institu21 tions with information, including best practices, with 

22 respect to the sharing of resources described under 

23 paragraph (1).’’. 


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1 (b) RULE OF CONSTRUCTION.—The amendment made 

2 by subsection (a) may not be construed to require financial 

3 institutions to share resources. 

4 SEC. 204. GAO STUDY ON FEEDBACK LOOPS. 

5 (a) STUDY.—The Comptroller General of the United 

6 States shall carry out a study on— 

7 (1) best practices within the United States Gov8 ernment for providing feedback (‘‘feedback loop’’) to 

9 relevant parties (including regulated private entities) 

10 on the usage and usefulness of personally identifiable 

11 information (‘‘PII’’), sensitive-but-unclassified 

12 (‘‘SBU’’) data, or similar information provided by 

13 such parties to Government users of such information 

14 and data (including law enforcement or regulators); 

15 and 

16 (2) any practices or standards inside or outside 

17 the United States for providing feedback through sen18 sitive information and public-private partnership in19 formation sharing efforts, specifically related to efforts 

20 to combat money laundering and other forms of illicit 

21 finance. 

22 (b) REPORT.—Not later than the end of the 18-month 

23 period beginning on the date of the enactment of this Act, 

24 the Comptroller General shall issue a report to the Com25 mittee on Banking, Housing, and Urban Affairs of the SenVerDate Sep 11 2014 21:29 Oct 21, 2019 Jkt 099200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6203 E:\BILLS\H2514.RH H2514

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1 ate and the Committee on Financial Services of the House 

2 of Representatives containing— 

3 (1) all findings and determinations made in car4 rying out the study required under subsection (a); 

5 (2) with respect to each of paragraphs (1) and 

6 (2) of subsection (a), any best practices or significant 

7 concerns identified by the Comptroller General, and 

8 their applicability to public-private partnerships and 

9 feedback loops with respect to U.S. efforts to combat 

10 money laundering and other forms of illicit finance; 

11 and 

12 (3) recommendations to reduce or eliminate any 

13 unnecessary Government collection of the information 

14 described under subsection (a)(1). 

15 SEC. 205. FINCEN STUDY ON BSA VALUE. 

16 (a) STUDY.—The Director of the Financial Crimes 

17 Enforcement Network shall carry out a study on Bank Se18 crecy Act value. 

19 (b) REPORT.—Not later than the end of the 30-day pe20 riod beginning on the date the study under subsection (a) 

21 is completed, the Director shall issue a report to the Com22 mittee on Financial Services of the House of Representa23 tives and the Committee on Banking, Housing, and Urban 

24 Affairs of the Senate containing all findings and deterVerDate Sep 11 2014 21:29 Oct 21, 2019 Jkt 099200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6203 E:\BILLS\H2514.RH H2514

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1 minations made in carrying out the study required under 

2 this section. 

3 (c) CLASSIFIED ANNEX.—The report required under 

4 this section may include a classified annex, if the Director 

5 determines it appropriate. 

6 (d) BANK SECRECY ACT DEFINED.—For purposes of 

7 this section, the term ‘‘Bank Secrecy Act’’ has the meaning 

8 given that term under section 5312 of title 31, United States 

9 Code. 

10 SEC. 206. SHARING OF THREAT PATTERN AND TREND IN11 FORMATION. 

12 Section 5318(g) of title 31, United States Code, as 

13 amended by section 201(a)(1), is further amended by add14 ing at the end the following: 

15 ‘‘(7) SHARING OF THREAT PATTERN AND TREND

16 INFORMATION.— 

17 ‘‘(A) SAR ACTIVITY REVIEW.—The Director 

18 of the Financial Crimes Enforcement Network 

19 shall restart publication of the ‘SAR Activity Re20 view – Trends, Tips & Issues’, on not less than 

21 a semi-annual basis, to provide meaningful in22 formation about the preparation, use, and value 

23 of reports filed under this subsection by financial 

24 institutions, as well as other reports filed by fi25 nancial institutions under the Bank Secrecy Act. 


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1 ‘‘(B) INCLUSION OF TYPOLOGIES.—In each 

2 publication described under subparagraph (A), 

3 the Director shall provide financial institutions 

4 with typologies, including data that can be 

5 adapted in algorithms (including for artificial 

6 intelligence and machine learning programs) 

7 where appropriate, on emerging money laun8 dering and counter terror financing threat pat9 terns and trends. 

10 ‘‘(C) TYPOLOGY DEFINED.—For purposes of 

11 this paragraph, the term ‘typology’ means the 

12 various techniques used to launder money or fi13 nance terrorism.’’. 

14 SEC. 207. MODERNIZATION AND UPGRADING WHISTLE15 BLOWER PROTECTIONS. 

16 (a) REWARDS.—Section 5323(d) of title 31, United 

17 States Code, is amended to read as follows: 

18 ‘‘(d) SOURCE OF REWARDS.—For the purposes of pay19 ing a reward under this section, the Secretary may use, 

20 without further appropriation, criminal fine, civil penalty, 

21 or forfeiture amounts recovered based on the original infor22 mation with respect to which the reward is being paid.’’. 

23 (b) WHISTLEBLOWER INCENTIVES.— 

24 Chapter 53 of title 31, United States Code, is 

25 amended— 


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1 (1) by inserting after section 5323 the following: 

2 ‘‘§ 5323A. Whistleblower incentives 

3 ‘‘(a) DEFINITIONS.—In this section: 

4 ‘‘(1) COVERED JUDICIAL OR ADMINISTRATIVE AC5 TION.—The term ‘covered judicial or administrative 

6 action’ means any judicial or administrative action 

7 brought by FinCEN under the Bank Secrecy Act that 

8 results in monetary sanctions exceeding $1,000,000. 

9 ‘‘(2) FINCEN.—The term ‘FinCEN’ means the 

10 Financial Crimes Enforcement Network. 

11 ‘‘(3) MONETARY SANCTIONS.—The term ‘mone12 tary sanctions’, when used with respect to any judi13 cial or administrative action, means— 

14 ‘‘(A) any monies, including penalties, 

15 disgorgement, and interest, ordered to be paid; 

16 and 

17 ‘‘(B) any monies deposited into a 

18 disgorgement fund as a result of such action or 

19 any settlement of such action. 

20 ‘‘(4) ORIGINAL INFORMATION.—The term ‘origi21 nal information’ means information that— 

22 ‘‘(A) is derived from the independent knowl23 edge or analysis of a whistleblower; 


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1 ‘‘(B) is not known to FinCEN from any 

2 other source, unless the whistleblower is the origi3 nal source of the information; and 

4 ‘‘(C) is not exclusively derived from an alle5 gation made in a judicial or administrative 

6 hearing, in a governmental report, hearing, 

7 audit, or investigation, or from the news media, 

8 unless the whistleblower is a source of the infor9 mation. 

10 ‘‘(5) RELATED ACTION.—The term ‘related ac11 tion’, when used with respect to any judicial or ad12 ministrative action brought by FinCEN, means any 

13 judicial or administrative action that is based upon 

14 original information provided by a whistleblower that 

15 led to the successful enforcement of the action. 

16 ‘‘(6) SECRETARY.—The term ‘Secretary’ means 

17 the Secretary of the Treasury. 

18 ‘‘(7) WHISTLEBLOWER.—The term ‘whistle19 blower’ means any individual who provides, or 2 or 

20 more individuals acting jointly who provide, informa21 tion relating to a violation of laws enforced by 

22 FinCEN, in a manner established, by rule or regula23 tion, by FinCEN. 

24 ‘‘(b) AWARDS.— 


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1 ‘‘(1) IN GENERAL.—In any covered judicial or 

2 administrative action, or related action, the Sec3 retary, under such rules as the Secretary may issue 

4 and subject to subsection (c), shall pay an award or 

5 awards to 1 or more whistleblowers who voluntarily 

6 provided original information to FinCEN that led to 

7 the successful enforcement of the covered judicial or 

8 administrative action, or related action, in an aggre9 gate amount equal to not more than 30 percent, in 

10 total, of what has been collected of the monetary sanc11 tions imposed in the action. 

12 ‘‘(2) SOURCE OF AWARDS.—For the purposes of 

13 paying any award under paragraph (1), the Sec14 retary may use, without further appropriation, mone15 tary sanction amounts recovered based on the original 

16 information with respect to which the award is being 

17 paid. 

18 ‘‘(c) DETERMINATION OF AMOUNT OF AWARD; DENIAL

19 OF AWARD.— 

20 ‘‘(1) DETERMINATION OF AMOUNT OF AWARD.— 

21 ‘‘(A) DISCRETION.—The determination of 

22 the amount of an award made under subsection 

23 (b) shall be in the discretion of the Secretary. 

24 ‘‘(B) CRITERIA.—In responding to a disclo25 sure and determining the amount of an award 


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1 made, FinCEN staff shall meet with the whistle2 blower to discuss evidence disclosed and rebuttals 

3 to the disclosure, and shall take into consider4 ation— 

5 ‘‘(i) the significance of the information 

6 provided by the whistleblower to the success 

7 of the covered judicial or administrative ac8 tion; 

9 ‘‘(ii) the degree of assistance provided 

10 by the whistleblower and any legal rep11 resentative of the whistleblower in a covered 

12 judicial or administrative action; 

13 ‘‘(iii) the mission of FinCEN in deter14 ring violations of the law by making 

15 awards to whistleblowers who provide infor16 mation that lead to the successful enforce17 ment of such laws; and 

18 ‘‘(iv) such additional relevant factors 

19 as the Secretary may establish by rule. 

20 ‘‘(2) DENIAL OF AWARD.—No award under sub21 section (b) shall be made— 

22 ‘‘(A) to any whistleblower who is, or was at 

23 the time the whistleblower acquired the original 

24 information submitted to FinCEN, a member, of25 ficer, or employee of— 


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1 ‘‘(i) an appropriate regulatory agency; 

2 ‘‘(ii) the Department of Justice; 

3 ‘‘(iii) a self-regulatory organization; or 

4 ‘‘(iv) a law enforcement organization; 

5 ‘‘(B) to any whistleblower who is convicted 

6 of a criminal violation, or who the Secretary has 

7 a reasonable basis to believe committed a crimi8 nal violation, related to the judicial or adminis9 trative action for which the whistleblower other10 wise could receive an award under this section; 

11 ‘‘(C) to any whistleblower who gains the in12 formation through the performance of an audit 

13 of financial statements required under the Bank 

14 Secrecy Act and for whom such submission 

15 would be contrary to its requirements; or 

16 ‘‘(D) to any whistleblower who fails to sub17 mit information to FinCEN in such form as the 

18 Secretary may, by rule, require. 

19 ‘‘(3) STATEMENT OF REASONS.—For any deci20 sion granting or denying an award, the Secretary 

21 shall provide to the whistleblower a statement of rea22 sons that includes findings of fact and conclusions of 

23 law for all material issues. 

24 ‘‘(d) REPRESENTATION.— 


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1 ‘‘(1) PERMITTED REPRESENTATION.—Any whis2 tleblower who makes a claim for an award under sub3 section (b) may be represented by counsel. 

4 ‘‘(2) REQUIRED REPRESENTATION.— 

5 ‘‘(A) IN GENERAL.—Any whistleblower who 

6 anonymously makes a claim for an award under 

7 subsection (b) shall be represented by counsel if 

8 the whistleblower anonymously submits the in9 formation upon which the claim is based. 

10 ‘‘(B) DISCLOSURE OF IDENTITY.—Prior to 

11 the payment of an award, a whistleblower shall 

12 disclose their identity and provide such other in13 formation as the Secretary may require, directly 

14 or through counsel for the whistleblower. 

15 ‘‘(e) APPEALS.—Any determination made under this 

16 section, including whether, to whom, or in what amount 

17 to make awards, shall be in the discretion of the Secretary. 

18 Any such determination, except the determination of the 

19 amount of an award if the award was made in accordance 

20 with subsection (b), may be appealed to the appropriate 

21 court of appeals of the United States not more than 30 days 

22 after the determination is issued by the Secretary. The court 

23 shall review the determination made by the Secretary in 

24 accordance with section 706 of title 5. 


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1 ‘‘(f) EMPLOYEE PROTECTIONS.—The Secretary of the 

2 Treasury shall issue regulations protecting a whistleblower 

3 from retaliation, which shall be as close as practicable to 

4 the employee protections provided for under section 1057 

5 of the Consumer Financial Protection Act of 2010.’’; and 

6 (2) in the table of contents for such chapter, by 

7 inserting after the item relating to section 5323 the 

8 following new item: 

‘‘5323A. Whistleblower incentives.’’. 

9 SEC. 208. CERTAIN VIOLATORS BARRED FROM SERVING ON 

10 BOARDS OF UNITED STATES FINANCIAL IN11 STITUTIONS. 

12 Section 5321 of title 31, United States Code, is amend13 ed by adding at the end the following: 

14 ‘‘(f) CERTAIN VIOLATORS BARRED FROM SERVING ON

15 BOARDS OF UNITED STATES FINANCIAL INSTITUTIONS.— 

16 ‘‘(1) IN GENERAL.—An individual found to have 

17 committed an egregious violation of a provision of (or 

18 rule issued under) the Bank Secrecy Act shall be 

19 barred from serving on the board of directors of a 

20 United States financial institution for a 10-year pe21 riod beginning on the date of such finding. 

22 ‘‘(2) EGREGIOUS VIOLATION DEFINED.—With re23 spect to an individual, the term ‘egregious violation’ 

24 means— 


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1 ‘‘(A) a felony criminal violation for which 

2 the individual was convicted; and 

3 ‘‘(B) a civil violation where the individual 

4 willfully committed such violation and the viola5 tion facilitated money laundering or the financ6 ing of terrorism.’’. 

7 SEC. 209. ADDITIONAL DAMAGES FOR REPEAT BANK SE8 CRECY ACT VIOLATORS. 

9 (a) IN GENERAL.—Section 5321 of title 31, United 

10 States Code, as amended by section 208, is further amended 

11 by adding at the end the following: 

12 ‘‘(g) ADDITIONAL DAMAGES FOR REPEAT VIOLA13 TORS.—In addition to any other fines permitted by this sec14 tion and section 5322, with respect to a person who has 

15 previously been convicted of a criminal provision of (or rule 

16 issued under) the Bank Secrecy Act or who has admitted, 

17 as part of a deferred- or non-prosecution agreement, to hav18 ing previously committed a violation of a criminal provi19 sion of (or rule issued under) the Bank Secrecy Act, the 

20 Secretary may impose an additional civil penalty against 

21 such person for each additional such violation in an 

22 amount equal to up three times the profit gained or loss 

23 avoided by such person as a result of the violation.’’. 

24 (b) PROSPECTIVE APPLICATION OF AMENDMENT.—For 

25 purposes of determining whether a person has committed 


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1 a previous violation under section 5321(g) of title 31, 

2 United States Code, such determination shall only include 

3 violations occurring after the date of enactment of this Act. 

4 SEC. 210. JUSTICE ANNUAL REPORT ON DEFERRED AND 

5 NON-PROSECUTION AGREEMENTS. 

6 (a) ANNUAL REPORT.—The Attorney General shall 

7 issue an annual report, every year for the five years begin8 ning on the date of enactment of this Act, to the Committees 

9 on Financial Services and the Judiciary of the House of 

10 Representatives and the Committees on Banking, Housing, 

11 and Urban Affairs and the Judiciary of the Senate con12 taining— 

13 (1) a list of deferred prosecution agreements and 

14 non-prosecution agreements that the Attorney General 

15 has entered into during the previous year with any 

16 person with respect to a violation or suspected viola17 tion of the Bank Secrecy Act; 

18 (2) the justification for entering into each such 

19 agreement; 

20 (3) the list of factors that were taken into ac21 count in determining that the Attorney General 

22 should enter into each such agreement; and 

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1 ment Network prior to entering into each such agree2 ment. 

3 (b) CLASSIFIED ANNEX.—Each report under sub4 section (a) may include a classified annex. 

5 (c) BANK SECRECY ACT DEFINED.—For purposes of 

6 this section, the term ‘‘Bank Secrecy Act’’ has the meaning 

7 given that term under section 5312 of title 31, United States 

8 Code. 

9 SEC. 211. RETURN OF PROFITS AND BONUSES. 

10 (a) IN GENERAL.—Section 5322 of title 31, United 

11 States Code, is amended by adding at the end the following: 

12 ‘‘(e) RETURN OF PROFITS AND BONUSES.—A person 

13 convicted of violating a provision of (or rule issued under) 

14 the Bank Secrecy Act shall— 

15 ‘‘(1) in addition to any other fine under this sec16 tion, be fined in an amount equal to the profit gained 

17 by such person by reason of such violation, as deter18 mined by the court; and 

19 ‘‘(2) if such person is an individual who was a 

20 partner, director, officer, or employee of a financial 

21 institution at the time the violation occurred, repay 

22 to such financial institution any bonus paid to such 

23 individual during the Federal fiscal year in which the 

24 violation occurred or the Federal fiscal year after 

25 which the violation occurred.’’. 


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1 (b) RULE OF CONSTRUCTION.—The amendment made 

2 by subsection (a) may not be construed to prohibit a finan3 cial institution from requiring the repayment of a bonus 

4 paid to a partner, director, officer, or employee if the finan5 cial institution determines that the partner, director, offi6 cer, or employee engaged in unethical, but non-criminal, 

7 activities. 

8 SEC. 212. PROHIBITION ON TAX DEDUCTIONS FOR ATTOR9 NEY’S FEES RELATED TO BANK SECRECY ACT 

10 SETTLEMENTS AND COURT COSTS. 

11 Section 162(f) of the Internal Revenue Code of 1986 

12 is amended by adding at the end the following: 

13 ‘‘(7) VIOLATIONS OF THE BANK SECRECY ACT.— 

14 In the case of a payment described in paragraph (1) 

15 that is in relation to any violation of the Bank Se16 crecy Act (as defined under section 5312 of title 31, 

17 United States Code), no deduction shall be allowed 

18 under this chapter for attorney’s fees related to such 

19 payment.’’. 

20 SEC. 213. APPLICATION OF BANK SECRECY ACT TO DEAL21 ERS IN ANTIQUITIES. 

22 (a) IN GENERAL.—Section 5312(a)(2) of title 31, 

23 United States Code, is amended— 

24 (1) in subparagraph (Y), by striking ‘‘or’’ at the 

25 end; 


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1 (2) by redesignating subparagraph (Z) as sub2 paragraph (AA); and 

3 (3) by inserting after subsection (Y) the fol4 lowing: 

5 ‘‘(Z) a person trading or acting as an 

6 intermediary in the trade of antiquities, includ7 ing an advisor, consultant or any other person 

8 who engages as a business in the solicitation of 

9 the sale of antiquities; or’’. 

10 (b) STUDY ON THE FACILITATION OF MONEY LAUN11 DERING AND TERROR FINANCE THROUGH THE TRADE OF

12 WORKS OF ART OR ANTIQUITIES.— 

13 (1) STUDY.—The Secretary of the Treasury, in 

14 coordination with Federal Bureau of Investigation, 

15 the Attorney General, and Homeland Security Inves16 tigations, shall perform a study on the facilitation of 

17 money laundering and terror finance through the 

18 trade of works of art or antiquities, including an 

19 analysis of— 

20 (A) the extent to which the facilitation of 

21 money laundering and terror finance through the 

22 trade of works of art or antiquities may enter or 

23 affect the financial system of the United States, 

24 including any qualitative data or statistics; 


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1 (B) whether thresholds should apply in de2 termining which entities to regulate; 

3 (C) an evaluation of which markets, by size, 

4 domestic or international geographical locations, 

5 or otherwise, should be subject to regulations; 

6 (D) an evaluation of whether certain ex7 emptions should apply; and 

8 (E) any other points of study or analysis 

9 the Secretary determines necessary or appro10 priate. 

11 (2) REPORT.—Not later than the end of the 180- 

12 day period beginning on the date of the enactment of 

13 this Act, the Secretary of the Treasury shall issue a 

14 report to the Committee on Financial Services of the 

15 House of Representatives and the Committee on 

16 Banking, Housing, and Urban Affairs of the Senate 

17 containing all findings and determinations made in 

18 carrying out the study required under paragraph (1). 

19 (c) RULEMAKING.—Not later than the end of the 180- 

20 day period beginning on the date the Secretary issues the 

21 report required under subsection (b)(2), the Secretary shall 

22 issue regulations to carry out the amendments made by sub23 section (a). 


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1 SEC. 214. GEOGRAPHIC TARGETING ORDER. 

2 The Secretary of the Treasury shall issue a geographic 

3 targeting order, similar to the order issued by the Financial 

4 Crimes Enforcement Network on November 15, 2018, that— 

5 (1) applies to commercial real estate to the same 

6 extent, with the exception of having the same thresh7 olds, as the order issued by FinCEN on November 15, 

8 2018, applies to residential real estate; and 

9 (2) establishes a specific threshold for commercial 

10 real estate. 

11 SEC. 215. STUDY AND REVISIONS TO CURRENCY TRANS12 ACTION REPORTS AND SUSPICIOUS ACTIVITY 

13 REPORTS. 

14 (a) CURRENCY TRANSACTION REPORTS.— 

15 (1) CTR INDEXED FOR INFLATION.— 

16 (A) IN GENERAL.—Every 5 years after the 

17 date of enactment of this Act, the Secretary of 

18 the Treasury shall revise regulations issued with 

19 respect to section 5313 of title 31, United States 

20 Code, to update each $10,000 threshold amount 

21 in such regulation to reflect the change in the 

22 Consumer Price Index for All Urban Consumers 

23 published by the Department of Labor, rounded 

24 to the nearest $100. For purposes of calculating 

25 the change described in the previous sentence, the 

26 Secretary shall use $10,000 as the base amount 


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1 and the date of enactment of this Act as the base 

2 date. 

3 (B) EXCEPTION.—Notwithstanding sub4 paragraph (A), the Secretary may make appro5 priate adjustments to the threshold amounts de6 scribed under subparagraph (A) in high-risk 

7 areas (e.g., High Intensity Financial Crime 

8 Areas or HIFCAs), if the Secretary has demon9 strable evidence that shows a threshold raise 

10 would increase serious crimes, such as traf11 ficking, or endanger national security. 

12 (2) GAO CTR STUDY.— 

13 (A) STUDY.—The Comptroller General of 

14 the United States shall carry out a study of cur15 rency transaction reports. Such study shall in16 clude— 

17 (i) a review (carried out in consulta18 tion with the Secretary of the Treasury, the 

19 Financial Crimes Enforcement Network, the 

20 United States Attorney General, the State 

21 Attorneys General, and State, Tribal, and 

22 local law enforcement) of the effectiveness of 

23 the current currency transaction reporting 

24 regime; 


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1 (ii) an analysis of the importance of 

2 currency transaction reports to law enforce3 ment; and 

4 (iii) an analysis of the effects of rais5 ing the currency transaction report thresh6 old. 

7 (B) REPORT.—Not later than the end of the 

8 1-year period beginning on the date of enactment 

9 of this Act, the Comptroller General shall issue 

10 a report to the Secretary of the Treasury and the 

11 Congress containing— 

12 (i) all findings and determinations 

13 made in carrying out the study required 

14 under subparagraph (A); and 

15 (ii) recommendations for improving 

16 the current currency transaction reporting 

17 regime. 

18 (b) MODIFIED SARS STUDY AND DESIGN.— 

19 (1) STUDY.—The Director of the Financial 

20 Crimes Enforcement Network shall carry out a study, 

21 in consultation with industry stakeholders (including 

22 community banks and credit unions), regulators, and 

23 law enforcement, of the design of a modified sus24 picious activity report form for certain customers and 

25 activities. Such study shall include— 


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1 (A) an examination of appropriate optimal 

2 SARs thresholds to determine the level at which 

3 a modified SARs form could be employed; 

4 (B) an evaluation of which customers or 

5 transactions would be appropriate for a modified 

6 SAR, including— 

7 (i) seasoned business customers; 

8 (ii) financial technology (Fintech) 

9 firms; 

10 (iii) structuring transactions; and 

11 (iv) any other customer or transaction 

12 that may be appropriate for a modified 

13 SAR; and 

14 (C) an analysis of the most effective meth15 ods to reduce the regulatory burden imposed on 

16 financial institutions in complying with the 

17 Bank Secrecy Act, including an analysis of the 

18 effect of— 

19 (i) modifying thresholds; 

20 (ii) shortening forms; 

21 (iii) combining Bank Secrecy Act 

22 forms; 

23 (iv) filing reports in periodic batches; 

24 and 


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1 (v) any other method that may reduce 

2 the regulatory burden. 

3 (2) STUDY CONSIDERATIONS.—In carrying out 

4 the study required under paragraph (1), the Director 

5 shall seek to balance law enforcement priorities, regu6 latory burdens experienced by financial institutions, 

7 and the requirement for reports to have a ‘‘high de8 gree of usefulness to law enforcement’’ under the Bank 

9 Secrecy Act. 

10 (3) REPORT.—Not later than the end of the 1- 

11 year period beginning on the date of enactment of this 

12 Act, the Director shall issue a report to Congress con13 taining— 

14 (A) all findings and determinations made 

15 in carrying out the study required under sub16 section (a); and 

17 (B) sample designs of modified SARs forms 

18 based on the study results. 

19 (4) CONTRACTING AUTHORITY.—The Director 

20 may contract with a private third-party to carry out 

21 the study required under this subsection. 

22 (c) DEFINITIONS.—For purposes of this section: 

23 (1) BANK SECRECY ACT.—The term ‘‘Bank Se24 crecy Act’’ has the meaning given that term under 

25 section 5312 of title 31, United States Code. 


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1 (2) REGULATORY BURDEN.—The term ‘‘regu2 latory burden’’ means the man-hours to complete fil3 ings, cost of data collection and analysis, and other 

4 considerations of chapter 35 of title 44, United States 

5 Code (commonly referred to as the Paperwork Reduc6 tion Act). 

7 (3) SAR; SUSPICIOUS ACTIVITY REPORT.—The 

8 term ‘‘SAR’’ and ‘‘suspicious activity report’’ mean a 

9 report of a suspicious transaction under section 

10 5318(g) of title 31, United States Code. 

11 (4) SEASONED BUSINESS CUSTOMER.—The term 

12 ‘‘seasoned business customer’’, shall have such mean13 ing as the Secretary of the Treasury shall prescribe, 

14 which shall include any person that— 

15 (A) is incorporated or organized under the 

16 laws of the United States or any State, or is reg17 istered as, licensed by, or otherwise eligible to do 

18 business within the United States, a State, or 

19 political subdivision of a State; 

20 (B) has maintained an account with a fi21 nancial institution for a length of time as deter22 mined by the Secretary; and 

23 (C) meet such other requirements as the Sec24 retary may determine necessary or appropriate. 


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1 SEC. 216. STREAMLINING REQUIREMENTS FOR CURRENCY 

2 TRANSACTION REPORTS AND SUSPICIOUS AC3 TIVITY REPORTS. 

4 (a) REVIEW.—The Secretary of the Treasury (in con5 sultation with Federal law enforcement agencies, the Direc6 tor of National Intelligence, and the Federal functional reg7 ulators and in consultation with other relevant stake8 holders) shall undertake a formal review of the current fi9 nancial institution reporting requirements under the Bank 

10 Secrecy Act and its implementing regulations and propose 

11 changes to further reduce regulatory burdens, and ensure 

12 that the information provided is of a ‘‘high degree of useful13 ness’’ to law enforcement, as set forth under section 5311 

14 of title 31, United States Code. 

15 (b) CONTENTS.—The review required under subsection 

16 (a) shall include a study of— 

17 (1) whether the timeframe for filing a suspicious 

18 activity report should be increased from 30 days; 

19 (2) whether or not currency transaction report 

20 and suspicious activity report thresholds should be 

21 tied to inflation or otherwise periodically be adjusted; 

22 (3) whether the circumstances under which a fi23 nancial institution determines whether to file a ‘‘con24 tinuing suspicious activity report’’, or the processes 

25 followed by a financial institution in determining 


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1 whether to file a ‘‘continuing suspicious activity re2 port’’ (or both) can be narrowed; 

3 (4) analyzing the fields designated as ‘‘critical’’ 

4 on the suspicious activity report form and whether 

5 the number of fields should be reduced; 

6 (5) the increased use of exemption provisions to 

7 reduce currency transaction reports that are of little 

8 or no value to law enforcement efforts; 

9 (6) the current financial institution reporting re10 quirements under the Bank Secrecy Act and its im11 plementing regulations and guidance; and 

12 (7) such other items as the Secretary determines 

13 appropriate. 

14 (c) REPORT.—Not later than the end of the one year 

15 period beginning on the date of the enactment of this Act, 

16 the Secretary of the Treasury, in consultation with law en17 forcement and persons subject to Bank Secrecy Act require18 ments, shall issue a report to the Congress containing all 

19 findings and determinations made in carrying out the re20 view required under subsection (a). 

21 (d) DEFINITIONS.—For purposes of this section: 

22 (1) FEDERAL FUNCTIONAL REGULATOR.—The 

23 term ‘‘Federal functional regulator’’ has the meaning 

24 given that term under section 103. 


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1 (2) OTHER TERMS.—The terms ‘‘Bank Secrecy 

2 Act’’ and ‘‘financial institution’’ have the meaning 

3 given those terms, respectively, under section 5312 of 

4 title 31, United States Code. 

5 TITLE III—MODERNIZING THE 

6 AML SYSTEM 

7 SEC. 301. ENCOURAGING INNOVATION IN BSA COMPLIANCE. 

8 Section 5318 of title 31, United States Code, as amend9 ed by section 203, is further amended by adding at the end 

10 the following: 

11 ‘‘(p) ENCOURAGING INNOVATION IN COMPLIANCE.— 

12 ‘‘(1) IN GENERAL.—The Federal functional regu13 lators shall encourage financial institutions to con14 sider, evaluate, and, where appropriate, responsibly 

15 implement innovative approaches to meet the require16 ments of this subchapter, including through the use of 

17 innovation pilot programs. 

18 ‘‘(2) EXEMPTIVE RELIEF.—The Secretary, pur19 suant to subsection (a), may provide exemptions from 

20 the requirements of this subchapter if the Secretary 

21 determines such exemptions are necessary to facilitate 

22 the testing and potential use of new technologies and 

23 other innovations. 

24 ‘‘(3) RULE OF CONSTRUCTION.—This subsection 

25 may not be construed to require financial institutions 


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1 to consider, evaluate, or implement innovative ap2 proaches to meet the requirements of the Bank Secrecy 

3 Act. 

4 ‘‘(4) FEDERAL FUNCTIONAL REGULATOR DE5 FINED.—In this subsection, the term ‘Federal func6 tional regulator’ means the Board of Governors of the 

7 Federal Reserve System, the Comptroller of the Cur8 rency, the Federal Deposit Insurance Corporation, the 

9 National Credit Union Administration, the Securities 

10 and Exchange Commission, and the Commodity Fu11 tures Trading Commission.’’. 

12 SEC. 302. INNOVATION LABS. 

13 (a) IN GENERAL.—The table of contents for subchapter 

14 II of chapter 53 of title 31, United States Code, is amended 

15 by adding at the end the following: 

16 ‘‘§ 5334. Innovation Labs 

17 ‘‘(a) ESTABLISHMENT.—There is established within 

18 the Department of the Treasury and each Federal func19 tional regulator an Innovation Lab. 

20 ‘‘(b) DIRECTOR.—The head of each Innovation Lab 

21 shall be a Director, to be appointed by the Secretary of the 

22 Treasury or the head of the Federal functional regulator, 

23 as applicable. 

24 ‘‘(c) DUTIES.—The duties of the Innovation Lab shall 

25 be— 


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1 ‘‘(1) to provide outreach to law enforcement 

2 agencies, financial institutions, and other persons 

3 (including vendors and technology companies) with 

4 respect to innovation and new technologies that may 

5 be used to comply with the requirements of the Bank 

6 Secrecy Act; 

7 ‘‘(2) to support the implementation of respon8 sible innovation and new technology, in a manner 

9 that complies with the requirements of the Bank Se10 crecy Act; 

11 ‘‘(3) to explore opportunities for public-private 

12 partnerships; and 

13 ‘‘(4) to develop metrics of success. 

14 ‘‘(d) FINCEN LAB.—The Innovation Lab established 

15 under subsection (a) within the Department of the Treasury 

16 shall be a lab within the Financial Crimes Enforcement 

17 Network. 

18 ‘‘(e) FEDERAL FUNCTIONAL REGULATOR DEFINED.— 

19 In this subsection, the term ‘Federal functional regulator’ 

20 means the Board of Governors of the Federal Reserve Sys21 tem, the Comptroller of the Currency, the Federal Deposit 

22 Insurance Corporation, the National Credit Union Admin23 istration, the Securities and Exchange Commission, and the 

24 Commodity Futures Trading Commission.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of contents for 

2 subchapter II of chapter 53 of title 31, United States Code, 

3 is amended by adding at the end the following: 

‘‘5334. Innovation Labs.’’. 

4 SEC. 303. INNOVATION COUNCIL. 

5 (a) IN GENERAL.—Subchapter II of chapter 53 of Title 

6 31, United States Code, as amended by section 302, is fur7 ther amended by adding at the end the following: 

8 ‘‘§ 5335. Innovation Council 

9 ‘‘(a) ESTABLISHMENT.—There is established the Inno10 vation Council (hereinafter in this section referred to as the 

11 ‘Council’), which shall consist of each Director of an Inno12 vation Lab established under section 5334 and the Director 

13 of the Financial Crimes Enforcement Network. 

14 ‘‘(b) CHAIR.—The Director of the Innovation Lab of 

15 the Department of the Treasury shall serve as the Chair 

16 of the Council. 

17 ‘‘(c) DUTY.—The members of the Council shall coordi18 nate on activities related to innovation under the Bank Se19 crecy Act, but may not supplant individual agency deter20 minations on innovation. 

21 ‘‘(d) MEETINGS.—The meetings of the Council— 

22 ‘‘(1) shall be at the call of the Chair, but in no 

23 case may the Council meet less than semi-annually; 

24 ‘‘(2) may include open and closed sessions, as de25 termined necessary by the Council; and 


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1 ‘‘(3) shall include participation by public and 

2 private entities and law enforcement agencies. 

3 ‘‘(e) REPORT.—The Council shall issue an annual re4 port, for each of the 7 years beginning on the date of enact5 ment of this section, to the Secretary of the Treasury on 

6 the activities of the Council during the previous year, in7 cluding the success of programs as measured by metrics of 

8 success developed pursuant to section 5334(c)(4), and any 

9 regulatory or legislative recommendations that the Council 

10 may have.’’. 

11 (b) CLERICAL AMENDMENT.—The table of contents for 

12 subchapter II of chapter 53 of title 31, United States Code, 

13 is amended by adding the end the following: 

‘‘5335. Innovation Council.’’. 

14 SEC. 304. PARALLEL RUNS RULEMAKING. 

15 (a) IN GENERAL.—Section 5318 of title 31, United 

16 States Code, as amended by section 301, is further amended 

17 by adding at the end the following: 

18 ‘‘(q) PARALLEL RUNS RULEMAKING.— 

19 ‘‘(1) IN GENERAL.—The Secretary of the Treas20 ury, in consultation with the head of each agency to 

21 which the Secretary has delegated duties or powers 

22 under subsection (a), shall issue a rule to specify— 

23 ‘‘(A) with respect to technology and proc24 esses designed to facilitate compliance with the 

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1 cumstances it is necessary for a financial insti2 tution to test new technology and processes 

3 alongside legacy technology and processes (‘par4 allel runs’); 

5 ‘‘(B) if parallel runs are required, what 

6 standards must be met; and 

7 ‘‘(C) in what instances or under what cir8 cumstance and criteria a financial institution 

9 may replace or terminate such legacy technology 

10 and processes for any examinable technology or 

11 process without the replacement or termination 

12 being determined an examination deficiency. 

13 ‘‘(2) STANDARDS.—The standards described 

14 under paragraph (1)(B) may include— 

15 ‘‘(A) an emphasis on using innovative ap16 proaches, such as machine learning, rather than 

17 rules-based systems; 

18 ‘‘(B) risk-based back-testing of the regime to 

19 facilitate calibration of relevant systems; 

20 ‘‘(C) requirements for appropriate data pri21 vacy and security; and 

22 ‘‘(D) a requirement that the algorithms used 

23 by the regime be disclosed to the Financial 

24 Crimes Enforcement Network. 


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1 ‘‘(3) CONFIDENTIALITY OF ALGORITHMS.—If a 

2 financial institution or any director, officer, em3 ployee, or agent of any financial institution, volun4 tarily or pursuant to this subsection or any other au5 thority, discloses the institution’s algorithms to a 

6 Government agency, such algorithms and any mate7 rials associated with the creation of such algorithms 

8 shall be considered confidential and not subject to 

9 public disclosure.’’. 

10 (b) UPDATE OF MANUAL.—The Financial Institutions 

11 Examination Council shall ensure— 

12 (1) that any manual prepared by the Council is 

13 updated to reflect the rulemaking required by the 

14 amendment made by subsection (a); and 

15 (2) that financial institutions are not penalized 

16 for the decisions based on such rulemaking to replace 

17 or terminate technology used for compliance with the 

18 Bank Secrecy Act (as defined under section 5312 of 

19 title 31, United States Code) or other anti-money 

20 laundering laws. 

21 SEC. 305. FINCEN STUDY ON USE OF EMERGING TECH22 NOLOGIES. 

23 (a) STUDY.— 


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1 (1) IN GENERAL.—The Director of the Financial 

2 Crimes Enforcement Network (‘‘FinCEN’’) shall carry 

3 out a study on— 

4 (A) the status of implementation and inter5 nal use of emerging technologies, including arti6 ficial intelligence (‘‘AI’’), digital identity tech7 nologies, blockchain technologies, and other inno8 vative technologies within FinCEN; 

9 (B) whether AI, digital identity tech10 nologies, blockchain technologies, and other inno11 vative technologies can be further leveraged to 

12 make FinCEN’s data analysis more efficient and 

13 effective; and 

14 (C) how FinCEN could better utilize AI, 

15 digital identity technologies, blockchain tech16 nologies, and other innovative technologies to 

17 more actively analyze and disseminate the infor18 mation it collects and stores to provide investiga19 tive leads to Federal, State, Tribal, and local law 

20 enforcement, and other Federal agencies (collec21 tive, ‘‘Agencies’’), and better support its ongoing 

22 investigations when referring a case to the Agen23 cies. 

24 (2) INCLUSION OF GTO DATA.—The study re25 quired under this subsection shall include data colVerDate Sep 11 2014 21:29 Oct 21, 2019 Jkt 099200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6203 E:\BILLS\H2514.RH H2514

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1 lected through the Geographic Targeting Orders 

2 (‘‘GTO’’) program. 

3 (3) CONSULTATION.—In conducting the study re4 quired under this subsection, FinCEN shall consult 

5 with the Directors of the Innovations Labs established 

6 in section 302. 

7 (b) REPORT.—Not later than the end of the 6-month 

8 period beginning on the date of the enactment of this Act, 

9 the Director shall issue a report to the Committee on Bank10 ing, Housing, and Urban Affairs of the Senate and the 

11 Committee on Financial Services of the House of Represent12 atives containing— 

13 (1) all findings and determinations made in car14 rying out the study required under subsection (a); 

15 (2) with respect to each of subparagraphs (A), 

16 (B) and (C) of subsection (a)(1), any best practices 

17 or significant concerns identified by the Director, and 

18 their applicability to AI, digital identity technologies, 

19 blockchain technologies, and other innovative tech20 nologies with respect to U.S. efforts to combat money 

21 laundering and other forms of illicit finance; and 

22 (3) any policy recommendations that could fa23 cilitate and improve communication and coordina24 tion between the private sector, FinCEN, and Agen25 cies through the implementation of innovative apVerDate Sep 11 2014 21:29 Oct 21, 2019 Jkt 099200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6203 E:\BILLS\H2514.RH H2514

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1 proaches, in order to meet their Bank Secrecy Act (as 

2 defined under section 5312 of title 31, United States 

3 Code) and anti-money laundering compliance obliga4 tions. 


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Union Calendar No. 195 

116TH CONGRESS 

1ST SESSION H. R. 2514 

[Report No. 116–245, Part I] 

A BILL 

To make reforms to the Federal Bank Secrecy Act 

purposes. and anti-money laundering laws, and for other 

OCTOBER 21, 2019 

Reported from the Committee on Financial Services with 

an amendment 

OCTOBER 21, 2019 

Committee on Ways and Means discharged; committed to 

Union and ordered to be printed the Committee of the Whole House on the State of the 


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