IIB 

116TH CONGRESS 

1ST SESSION H. R. 2514 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 29, 2019 

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT 

To make reforms to the Federal Bank Secrecy Act and 

anti-money laundering laws, and for other purposes. 

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


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Coordinating Oversight, Upgrading and Innovating 

4 Technology, and Examiner Reform Act of 2019’’ or the 

5 ‘‘COUNTER Act of 2019’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Bank Secrecy Act definition. 

Sec. 3. Determination of Budgetary Effects. 

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. Pilot program on sharing of suspicious activity reports within a financial group. 

Sec. 202. Sharing of compliance resources. 

Sec. 203. GAO Study on feedback loops. 

Sec. 204. FinCEN study on BSA value. 

Sec. 205. Sharing of threat pattern and trend information. 

Sec. 206. Modernization and upgrading whistleblower protections. 

Sec. 207. Certain violators barred from serving on boards of United States financial institutions. 

Sec. 208. Additional damages for repeat Bank Secrecy Act violators. 

Sec. 209. Justice annual report on deferred and non-prosecution agreements. 

Sec. 210. Return of profits and bonuses. 

Sec. 211. Application of Bank Secrecy Act to dealers in antiquities. 

Sec. 212. Geographic targeting order. 

Sec. 213. Study and revisions to currency transaction reports and suspicious 

activity reports. 

Sec. 214. Streamlining requirements for currency transaction reports and suspicious activity reports. 


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TITLE III—MODERNIZING THE AML SYSTEM 

Sec. 301. Encouraging innovation in BSA compliance. 

Sec. 302. Innovation Labs. 

Sec. 303. Innovation Council. 

Sec. 304. Testing methods rulemaking. 

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

Sec. 306. Discretionary surplus funds. 

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 SEC. 3. DETERMINATION OF BUDGETARY EFFECTS. 

12 The budgetary effects of this Act, for the purpose of 

13 complying with the Statutory Pay-As-You-Go Act of 2010, 

14 shall be determined by reference to the latest statement 

15 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

16 Act, submitted for printing in the Congressional Record 

17 by the Chairman of the House Budget Committee, pro18 vided that such statement has been submitted prior to the 

19 vote on passage. 


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1 TITLE I—STRENGTHENING 

2 TREASURY 

3 SEC. 101. IMPROVING THE DEFINITION AND PURPOSE OF 

4 THE BANK SECRECY ACT. 

5 Section 5311 of title 31, United States Code, is 

6 amended— 

7 (1) by inserting ‘‘to protect our national secu8 rity, to safeguard the integrity of the international 

9 financial system, and’’ before ‘‘to require’’; and 

10 (2) by inserting ‘‘to law enforcement and’’ be11 fore ‘‘in criminal’’. 

12 SEC. 102. SPECIAL HIRING AUTHORITY. 

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

14 States Code, is amended— 

15 (1) by redesignating subsection (d) as sub16 section (g); and 

17 (2) by inserting after subsection (c) the fol18 lowing: 

19 ‘‘(d) SPECIAL HIRING AUTHORITY.— 

20 ‘‘(1) IN GENERAL.—The Secretary of the 

21 Treasury may appoint, without regard to the provi22 sions of sections 3309 through 3318 of title 5, can23 didates directly to positions in the competitive serv24 ice (as defined in section 2102 of that title) in 

25 FinCEN. 


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1 ‘‘(2) PRIMARY RESPONSIBILITIES.—The pri2 mary responsibility of candidates appointed pursuant 

3 to paragraph (1) shall be to provide substantive sup4 port in support of the duties described in subpara5 graphs (A), (B), (E), and (F) of subsection (b)(2).’’. 

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

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

8 7 years, the Director of the Financial Crimes Enforcement 

9 Network shall submit a report to the Committee on Finan10 cial Services of the House of Representatives and the 

11 Committee on Banking, Housing, and Urban Affairs of 

12 the Senate that includes— 

13 (1) the number of new employees hired since 

14 the preceding report through the authorities de15 scribed under section 310(d) of title 31, United 

16 States Code, along with position titles and associ17 ated pay grades for such hires; and 

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

19 staff perspectives at the Office of Terrorism and Fi20 nancial Intelligence, including findings regarding the 

21 Office and the Financial Crimes Enforcement Net22 work from the most recently administered Federal 

23 Employee Viewpoint Survey. 


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1 SEC. 103. CIVIL LIBERTIES AND PRIVACY OFFICER. 

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

3 end of the 3-month period beginning on the date of enact4 ment of this Act, a Civil Liberties and Privacy Officer 

5 shall be appointed, from among individuals who are attor6 neys with expertise in data privacy laws— 

7 (1) within each Federal functional regulator, by 

8 the head of the Federal functional regulator; 

9 (2) within the Financial Crimes Enforcement 

10 Network, by the Secretary of the Treasury; and 

11 (3) within the Internal Revenue Service Small 

12 Business and Self-Employed Tax Center, by the Sec13 retary of the Treasury. 

14 (b) DUTIES.—Each Civil Liberties and Privacy Offi15 cer shall, with respect to the applicable regulator, Net16 work, or Center within which the Officer is located— 

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

18 anti-money laundering regulations affecting civil lib19 erties or privacy are developed or reviewed; 

20 (2) be consulted on information-sharing pro21 grams, including those that provide access to person22 ally identifiable information; 

23 (3) ensure coordination and clarity between 

24 anti-money laundering, civil liberties, and privacy 

25 regulations; 


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1 (4) contribute to the evaluation and regulation 

2 of new technologies that may strengthen data pri3 vacy and the protection of personally identifiable in4 formation collected by each Federal functional regu5 lator; and 

6 (5) develop metrics of program success. 

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

8 (1) BANK SECRECY ACT.—The term ‘‘Bank Se9 crecy Act’’ has the meaning given that term under 

10 section 5312 of title 31, United States Code. 

11 (2) FEDERAL FUNCTIONAL REGULATOR.—The 

12 term ‘‘Federal functional regulator’’ means the 

13 Board of Governors of the Federal Reserve System, 

14 the Comptroller of the Currency, the Federal De15 posit Insurance Corporation, the National Credit 

16 Union Administration, the Securities and Exchange 

17 Commission, and the Commodity Futures Trading 

18 Commission. 

19 SEC. 104. CIVIL LIBERTIES AND PRIVACY COUNCIL. 

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

21 Liberties and Privacy Council (hereinafter in this section 

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

23 Civil Liberties and Privacy Officers appointed pursuant to 

24 section 103. 


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1 (b) CHAIR.—The Director of the Financial Crimes 

2 Enforcement Network shall serve as the Chair of the 

3 Council. 

4 (c) DUTY.—The members of the Council shall coordi5 nate on activities related to their duties as Civil Liberties 

6 Privacy Officers, but may not supplant the individual 

7 agency determinations on civil liberties and privacy. 

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

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

10 case may the Council meet less than quarterly; 

11 (2) may include open and partially closed ses12 sions, as determined necessary by the Council; and 

13 (3) shall include participation by public and pri14 vate entities, law enforcement agencies, and a rep15 resentative of State bank supervisors (as defined 

16 under section 3 of the Federal Deposit Insurance 

17 Act (12 U.S.C. 1813)). 

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

19 an annual report to the Congress on the program and pol20 icy activities, including the success of programs as meas21 ured by metrics of program success developed pursuant 

22 to section 103(b)(5), of the Council during the previous 

23 year and any legislative recommendations that the Council 

24 may have. 


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1 (f) NONAPPLICABILITY OF FACA.—The Federal Ad2 visory Committee Act (5 U.S.C. App.) shall not apply to 

3 the Council. 

4 SEC. 105. INTERNATIONAL COORDINATION. 

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

6 shall work with the Secretary’s foreign counterparts, in7 cluding through the Financial Action Task Force, the 

8 International Monetary Fund, the World Bank, the 

9 Egmont Group of Financial Intelligence Units, the 

10 Organisation for Economic Co-operation and Develop11 ment, and the United Nations, to promote stronger anti12 money laundering frameworks and enforcement of anti13 money laundering laws. 

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

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

16 foreign counterparts and other organizations where the 

17 goal of cooperation can best be met. 

18 (c) INTERNATIONAL MONETARY FUND.— 

19 (1) SUPPORT FOR CAPACITY OF THE INTER20 NATIONAL MONETARY FUND TO PREVENT MONEY

21 LAUNDERING AND FINANCING OF TERRORISM.— 

22 Title XVI of the International Financial Institutions 

23 Act (22 U.S.C. 262p et seq.) is amended by adding 

24 at the end the following: 


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1 ‘‘SEC. 1629. SUPPORT FOR CAPACITY OF THE INTER2 NATIONAL MONETARY FUND TO PREVENT 

3 MONEY LAUNDERING AND FINANCING OF 

4 TERRORISM. 

5 ‘‘The Secretary of the Treasury shall instruct the 

6 United States Executive Director at the International 

7 Monetary Fund to support the increased use of the admin8 istrative budget of the Fund for technical assistance that 

9 strengthens the capacity of Fund members to prevent 

10 money laundering and the financing of terrorism.’’. 

11 (2) NATIONAL ADVISORY COUNCIL REPORT TO

12 CONGRESS.—The Chairman of the National Advisory 

13 Council on International Monetary and Financial 

14 Policies shall include in the report required by sec15 tion 1701 of the International Financial Institutions 

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

17 (A) the activities of the International Mon18 etary Fund in the most recently completed fis19 cal year to provide technical assistance that 

20 strengthens the capacity of Fund members to 

21 prevent money laundering and the financing of 

22 terrorism, and the effectiveness of the assist23 ance; and 

24 (B) the efficacy of efforts by the United 

25 States to support such technical assistance 


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1 through the use of the Fund’s administrative 

2 budget, and the level of such support. 

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

4 end of the 4-year period beginning on the date of en5 actment of this Act, section 1629 of the Inter6 national Financial Institutions Act, as added by 

7 paragraph (1), is repealed. 

8 SEC. 106. TREASURY ATTACHE ́ S PROGRAM. 

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

10 amended by inserting after section 315 the following: 

11 ‘‘§ 316. Treasury Attache ́s Program 

12 ‘‘(a) IN GENERAL.—There is established the Treas13 ury Attache ́s Program, under which the Secretary of the 

14 Treasury shall appoint employees of the Department of 

15 the Treasury, after nomination by the Director of the Fi16 nancial Crimes Enforcement Network (‘FinCEN’), as a 

17 Treasury attache ́, who shall— 

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

19 Act and anti-money laundering issues; 

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

21 ‘‘(3) perform outreach with respect to Bank Se22 crecy Act and anti-money laundering issues; 

23 ‘‘(4) establish and maintain relationships with 

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1 istries of finance, central banks, and other relevant 

2 official entities; 

3 ‘‘(5) conduct outreach to local and foreign fi4 nancial institutions and other commercial actors, in5 cluding— 

6 ‘‘(A) information exchanges through 

7 FinCEN and FinCEN programs; and 

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

9 the implementation of— 

10 ‘‘(i) United States and multilateral 

11 sanctions; and 

12 ‘‘(ii) international standards on anti13 money laundering and the countering of 

14 the financing of terrorism; and 

15 ‘‘(6) perform such other actions as the Sec16 retary determines appropriate. 

17 ‘‘(b) NUMBER OF ATTACHE ́S.—The number of Treas18 ury attache ́s appointed under this section at any one time 

19 shall be not fewer than six more employees than the num20 ber of employees of the Department of the Treasury serv21 ing as Treasury attache ́s on March 1, 2019. 

22 ‘‘(c) COMPENSATION.—Each Treasury attache ́ ap23 pointed under this section and located at a United States 

24 embassy shall receive compensation at the higher of— 


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1 ‘‘(1) the rate of compensation provided to a 

2 Foreign Service officer at a comparable career level 

3 serving at the same embassy; or 

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

5 attache ́ would otherwise have received, absent the 

6 application of this subsection. 

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

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

9 term under section 5312.’’. 

10 (b) CLERICAL AMENDMENT.—The table of contents 

11 for chapter 3 of title 31, United States Code, is amended 

12 by inserting after the item relating to section 315 the fol13 lowing: 

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

14 SEC. 107. INCREASING TECHNICAL ASSISTANCE FOR 

15 INTERNATIONAL COOPERATION. 

16 (a) IN GENERAL.—There is authorized to be appro17 priated for each of fiscal years 2020 through 2024 to the 

18 Secretary of the Treasury for purposes of providing tech19 nical assistance that promotes compliance with inter20 national standards and best practices, including in par21 ticular those aimed at the establishment of effective anti22 money laundering and countering the financing of ter23 rorism regimes, in an amount equal to twice the amount 

24 authorized for such purpose for fiscal year 2019. 


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

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

3 thereafter for 5 years, the Secretary of the Treasury shall 

4 issue a report to the Congress on the assistance (as de5 scribed under subsection (a)) of the Office of Technical 

6 Assistance of the Department of the Treasury con7 taining— 

8 (1) a narrative detailing the strategic goals of 

9 the Office in the previous year, with an explanation 

10 of how technical assistance provided in the previous 

11 year advances the goals; 

12 (2) a description of technical assistance pro13 vided by the Office in the previous year, including 

14 the objectives and delivery methods of the assist15 ance; 

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

17 than Office staff) of the technical assistance; 

18 (4) a description of how technical assistance 

19 provided by the Office complements, duplicates, or 

20 otherwise affects or is affected by technical assist21 ance provided by the international financial institu22 tions (as defined under section 1701(c) of the Inter23 national Financial Institutions Act); and 

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

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1 ance, including any findings regarding the Office 

2 from the most recently administered Federal Em3 ployee Viewpoint Survey. 

4 SEC. 108. FINCEN DOMESTIC LIAISONS. 

5 Section 310 of title 31, United States Code, as 

6 amended by section 102, is further amended by inserting 

7 after subsection (d) the following: 

8 ‘‘(e) FINCEN DOMESTIC LIAISONS.— 

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

10 shall appoint at least six senior FinCEN employees 

11 as FinCEN Domestic Liaisons, who shall— 

12 ‘‘(A) each be assigned to focus on a spe13 cific region of the United States; 

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

15 (or co-located at an office of the Board of Gov16 ernors of the Federal Reserve System in such 

17 region); and 

18 ‘‘(C) perform outreach to BSA officers at 

19 financial institutions (including non-bank finan20 cial institutions) and persons who are not finan21 cial institutions, especially with respect to ac22 tions taken by FinCEN that require specific ac23 tions by, or have specific effects on, such insti24 tutions or persons, as determined by the Direc25 tor. 


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

2 ‘‘(A) BSA OFFICER.—The term ‘BSA offi3 cer’ means an employee of a financial institu4 tion whose primary job responsibility involves 

5 compliance with the Bank Secrecy Act, as such 

6 term is defined under section 5312. 

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

8 ‘financial institution’ has the meaning given 

9 that term under section 5312.’’. 

10 SEC. 109. FINCEN EXCHANGE. 

11 Section 310 of title 31, United States Code, as 

12 amended by section 108, is further amended by inserting 

13 after subsection (e) the following: 

14 ‘‘(f) FINCEN EXCHANGE.— 

15 ‘‘(1) ESTABLISHMENT.—The FinCEN Ex16 change is hereby established within FinCEN, which 

17 shall consist of the FinCEN Exchange program of 

18 FinCEN in existence on the day before the date of 

19 enactment of this paragraph. 

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

21 facilitate a voluntary public-private information 

22 sharing partnership among law enforcement, finan23 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 1 year 

9 after the date of enactment of this subsection, 

10 and annually thereafter for the next 5 years, 

11 the Secretary of the Treasury shall submit to 

12 the Committee on Financial Services of the 

13 House of Representatives and the Committee 

14 on Banking, Housing, and Urban Affairs of the 

15 Senate a report containing— 

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

18 results of such efforts; 

19 ‘‘(ii) an analysis of the extent and ef20 fectiveness of the FinCEN Exchange, in21 cluding any benefits realized by law en22 forcement from partnership with financial 

23 institutions; 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 classi5 fied 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 in12 formation sharing authorities related to the Bank 

13 Secrecy Act (as such term is defined under section 

14 5312 of title 31, United States Code). 

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

16 this subsection, the term ‘financial institution’ has 

17 the 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 

21 carry out a study, in consultation with appropriate private 

22 sector stakeholders and Federal departments and agen23 cies, on trade-based money laundering. 

24 (b) REPORT.—Not later than the end of the 1-year 

25 period 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. The authority of the Secretary 

13 to enter into contracts under this subsection shall be in 

14 effect for each fiscal year only to the extent and in the 

15 amounts as are provided in advance in appropriations 

16 Acts. 

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

18 (a) REVIEW.—The Secretary of the Treasury, in con19 sultation with appropriate private sector stakeholders, ex20 aminers, the Federal functional regulators (as defined 

21 under section 103), State bank supervisors, and other rel22 evant stakeholders, shall undertake a formal review of— 

23 (1) any adverse consequences of financial insti24 tutions de-risking entire categories of relationships, 

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1 ices businesses (as defined under section 

2 1010.100(ff) of title 31, Code of Federal Regula3 tions) and their agents, countries, international and 

4 domestic regions, and respondent banks; 

5 (2) the reasons why financial institutions are 

6 engaging in de-risking; 

7 (3) the association with and effects of de-risk8 ing on money laundering and financial crime actors 

9 and activities; 

10 (4) the most appropriate ways to promote fi11 nancial inclusion, particularly with respect to devel12 oping countries, while maintaining compliance with 

13 the Bank Secrecy Act, including an assessment of 

14 policy options to— 

15 (A) more effectively tailor Federal actions 

16 and penalties to the size of foreign financial in17 stitutions and any capacity limitations of for18 eign governments; and 

19 (B) reduce compliance costs that may lead 

20 to the adverse consequences described in para21 graph (1); 

22 (5) formal and informal feedback provided by 

23 examiners that may have led to de-risking; 

24 (6) the relationship between resources dedicated 

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1 ance efforts at entities that may be experiencing de2 risking versus those that have not experienced de3 risking; and 

4 (7) any best practices from the private sector 

5 that facilitate correspondent bank relationships. 

6 (b) DE-RISKING STRATEGY.—The Secretary shall de7 velop a strategy to reduce de-risking and adverse con8 sequences related to de-risking. 

9 (c) REPORT.—Not later than the end of the 1-year 

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

11 the Secretary, in consultation with the Federal functional 

12 regulators, State bank supervisors, and other relevant 

13 stakeholders, shall issue a report to the Congress con14 taining— 

15 (1) all findings and determinations made in car16 rying out the study required under subsection (a); 

17 and 

18 (2) the strategy developed pursuant to sub19 section (b). 

20 (d) DEFINITIONS.—In this section: 

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

22 means the wholesale closing of accounts or limiting 

23 of financial services for a category of customer due 

24 to unsubstantiated risk as it relates to compliance 

25 with the Bank Secrecy Act. 


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

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

3 given those terms, respectively, under section 5312 

4 off title 31, United States Code. 

5 (3) STATE BANK SUPERVISOR.—The term 

6 ‘‘State bank supervisor’’ has the meaning given that 

7 term under section 3 of the Federal Deposit Insur8 ance Act (12 U.S.C. 1813). 

9 SEC. 112. AML EXAMINATION AUTHORITY DELEGATION 

10 STUDY. 

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

12 carry out a study, in consultation with State bank super13 visors (as defined under section 3 of the Federal Deposit 

14 Insurance Act (12 U.S.C. 1813)), and other relevant 

15 stakeholders, on the Secretary’s delegation of examination 

16 authority under the Bank Secrecy Act, including— 

17 (1) an evaluation of the efficacy of the delega18 tion, especially with respect to the mission of the 

19 Bank Secrecy Act; 

20 (2) whether the delegated agencies have appro21 priate resources to perform their delegated respon22 sibilities; and 

23 (3) whether the examiners in delegated agencies 

24 have sufficient training and support to perform their 

25 responsibilities. 


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1 (b) REPORT.—Not later than 1 year after the date 

2 of enactment of this Act, the Secretary of the Treasury 

3 shall submit to the Committee on Financial Services of 

4 the House of Representatives and the Committee on 

5 Banking, Housing, and Urban Affairs of the Senate a re6 port containing— 

7 (1) all findings and determinations made in car8 rying out the study required under subsection (a); 

9 and 

10 (2) recommendations to improve the efficacy of 

11 delegation authority, including the potential for de12 delegation of any or all such authority where it may 

13 be appropriate. 

14 (c) BANK SECRECY ACT DEFINED.—The term 

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

16 under section 5312 off title 31, United States Code. 

17 SEC. 113. STUDY AND STRATEGY ON CHINESE MONEY 

18 LAUNDERING. 

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

20 carry out a study on the extent and effect of Chinese 

21 money laundering activities in the United States, including 

22 territories and possessions of the United States, and 

23 worldwide. 

24 (b) STRATEGY TO COMBAT CHINESE MONEY LAUN25 DERING.—Upon the completion of the study required 


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1 under subsection (a), the Secretary shall, in consultation 

2 with such other Federal departments and agencies as the 

3 Secretary determines appropriate, develop a strategy to 

4 combat Chinese money laundering activities. 

5 (c) REPORT.—Not later than the end of the 1-year 

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

7 Secretary of the Treasury shall issue a report to Congress 

8 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 under subsection (b). 

13 TITLE II—IMPROVING AML/CFT 

14 OVERSIGHT 

15 SEC. 201. PILOT PROGRAM ON SHARING OF SUSPICIOUS 

16 ACTIVITY REPORTS WITHIN A FINANCIAL 

17 GROUP. 

18 (a) IN GENERAL.— 

19 (1) SHARING WITH FOREIGN BRANCHES AND

20 AFFILIATES.—Section 5318(g) of title 31, United 

21 States Code, is amended by adding at the end the 

22 following: 

23 ‘‘(5) PILOT PROGRAM ON SHARING WITH FOR24 EIGN BRANCHES, SUBSIDIARIES, AND AFFILIATES.— 


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1 ‘‘(A) IN GENERAL.—The Secretary of the 

2 Treasury shall issue rules establishing the pilot 

3 program described under subparagraph (B), 

4 subject to such controls and restrictions as the 

5 Director of the Financial Crimes Enforcement 

6 Network determines appropriate, including con7 trols and restrictions regarding participation by 

8 financial institutions and jurisdictions in the 

9 pilot program. In prescribing such rules, the 

10 Secretary shall ensure that the sharing of infor11 mation described under such subparagraph (B) 

12 is subject to appropriate standards and require13 ments regarding data security and the confiden14 tiality of personally identifiable information. 

15 ‘‘(B) PILOT PROGRAM DESCRIBED.—The 

16 pilot program required under this paragraph 

17 shall— 

18 ‘‘(i) permit a financial institution with 

19 a reporting obligation under this sub20 section to share reports (and information 

21 on such reports) under this subsection with 

22 the institution’s foreign branches, subsidi23 aries, and affiliates for the purpose of com24 bating illicit finance risks, notwithstanding 


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1 any other provision of law except subpara2 graphs (A) and (C); 

3 ‘‘(ii) terminate on the date that is 5 

4 years after the date of enactment of this 

5 paragraph, except that the Secretary may 

6 extend the pilot program for up to 2 years 

7 upon submitting a report to the Committee 

8 on Financial Services of the House of Rep9 resentatives and the Committee on Bank10 ing, Housing, and Urban Affairs of the 

11 Senate that includes— 

12 ‘‘(I) a certification that the ex13 tension is in the national interest of 

14 the United States, with a detailed ex15 planation of the reasons therefor; 

16 ‘‘(II) an evaluation of the useful17 ness of the pilot program, including a 

18 detailed analysis of any illicit activity 

19 identified or prevented as a result of 

20 the program; and 

21 ‘‘(III) a detailed legislative pro22 posal providing for a long-term exten23 sion of the pilot program activities, in24 cluding expected budgetary resources 

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1 termines that a long-term extension is 

2 appropriate. 

3 ‘‘(C) PROHIBITION INVOLVING CERTAIN

4 JURISDICTIONS.—In issuing the regulations re5 quired under subparagraph (A), the Secretary 

6 may not permit a financial institution to share 

7 information on reports under this subsection 

8 with a foreign branch, subsidiary, or affiliate lo9 cated in— 

10 ‘‘(i) the People’s Republic of China; 

11 ‘‘(ii) the Russian Federation; or 

12 ‘‘(iii) a jurisdiction that— 

13 ‘‘(I) is subject to counter14 measures imposed by the Federal 

15 Government; 

16 ‘‘(II) is a state sponsor of ter17 rorism; or 

18 ‘‘(III) the Secretary has deter19 mined cannot reasonably protect the 

20 privacy and confidentiality of such in21 formation or would otherwise use such 

22 information in a manner that is not 

23 consistent with the national interest of 

24 the United States. 


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1 ‘‘(D) IMPLEMENTATION UPDATES.—Not 

2 later than 360 days after the date rules are 

3 issued under subparagraph (A), and annually 

4 thereafter for 3 years, the Secretary, or the 

5 Secretary’s designee, shall brief the Committee 

6 on Financial Services of the House of Rep7 resentatives and the Committee on Banking, 

8 Housing, and Urban Affairs of the Senate on— 

9 ‘‘(i) the degree of any information 

10 sharing permitted under the pilot program, 

11 and a description of criteria used by the 

12 Secretary to evaluate the appropriateness 

13 of the information sharing; 

14 ‘‘(ii) the effectiveness of the pilot pro15 gram in identifying or preventing the viola16 tion of a United States law or regulation, 

17 and mechanisms that may improve such ef18 fectiveness; and 

19 ‘‘(iii) any recommendations to amend 

20 the design of the pilot program. 

21 ‘‘(E) RULE OF CONSTRUCTION.—Nothing 

22 in this paragraph shall be construed as limiting 

23 the Secretary’s authority under provisions of 

24 law other than this paragraph to establish other 

25 permissible purposes or methods for a financial 


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1 institution sharing reports (and information on 

2 such reports) under this subsection with the in3 stitution’s foreign headquarters or with other 

4 branches of the same institution. 

5 ‘‘(F) NOTICE OF USE OF OTHER AUTHOR6 ITY.—If the Secretary, pursuant to any author7 ity other than that provided under this para8 graph, permits a financial institution to share 

9 information on reports under this subsection 

10 with a foreign branch, subsidiary, or affiliate lo11 cated in a foreign jurisdiction, the Secretary 

12 shall notify the Committee on Financial Serv13 ices of the House of Representatives and the 

14 Committee on Banking, Housing, and Urban 

15 Affairs of such permission and the applicable 

16 foreign jurisdiction. 

17 ‘‘(6) TREATMENT OF FOREIGN JURISDICTION18 ORIGINATED REPORTS.—A report received by a fi19 nancial institution from a foreign affiliate with re20 spect to a suspicious transaction relevant to a pos21 sible violation of law or regulation shall be subject 

22 to the same confidentiality requirements provided 

23 under this subsection for a report of a suspicious 

24 transaction described under paragraph (1).’’. 


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1 (2) NOTIFICATION PROHIBITIONS.—Section 

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

3 amended— 

4 (A) in clause (i), by inserting after ‘‘trans5 action has been reported’’ the following: ‘‘or 

6 otherwise reveal any information that would re7 veal that the transaction has been reported’’; 

8 and 

9 (B) in clause (ii), by inserting after ‘‘trans10 action has been reported,’’ the following: ‘‘or 

11 otherwise reveal any information that would re12 veal that the transaction has been reported,’’. 

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

14 360-day period beginning on the date of enactment of this 

15 Act, the Secretary of the Treasury shall issue regulations 

16 to carry out the amendments made by this section. 

17 SEC. 202. SHARING OF COMPLIANCE RESOURCES. 

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

19 States Code, is amended by adding at the end the fol20 lowing: 

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

22 ‘‘(1) SHARING PERMITTED.—Two or more fi23 nancial institutions may enter into collaborative ar24 rangements in order to more efficiently comply with 

25 the requirements of this subchapter. 


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1 ‘‘(2) OUTREACH.—The Secretary of the Treas2 ury and the appropriate supervising agencies shall 

3 carry out an outreach program to provide financial 

4 institutions with information, including best prac5 tices, with respect to the sharing of resources de6 scribed under paragraph (1).’’. 

7 (b) RULE OF CONSTRUCTION.—The amendment 

8 made by subsection (a) may not be construed to require 

9 financial institutions to share resources. 

10 SEC. 203. GAO STUDY ON FEEDBACK LOOPS. 

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

12 States shall carry out a study on— 

13 (1) best practices within the United States Gov14 ernment for providing feedback (‘‘feedback loop’’) to 

15 relevant parties (including regulated private entities) 

16 on the usage and usefulness of personally identifi17 able information (‘‘PII’’), sensitive-but-unclassified 

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

19 such parties to Government users of such informa20 tion and data (including law enforcement or regu21 lators); and 

22 (2) any practices or standards inside or outside 

23 the United States for providing feedback through 

24 sensitive information and public-private partnership 

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1 forts to combat money laundering and other forms 

2 of illicit finance. 

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

4 month period beginning on the date of the enactment of 

5 this Act, the Comptroller General shall issue a report to 

6 the Committee on Banking, Housing, and Urban Affairs 

7 of the Senate and the Committee on Financial Services 

8 of the House of Representatives containing— 

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

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

12 (2) of subsection (a), any best practices or signifi13 cant concerns identified by the Comptroller General, 

14 and their applicability to public-private partnerships 

15 and feedback loops with respect to United States ef16 forts to combat money laundering and other forms 

17 of illicit finance; and 

18 (3) recommendations to reduce or eliminate any 

19 unnecessary Government collection of the informa20 tion described under subsection (a)(1). 

21 SEC. 204. FINCEN STUDY ON BSA VALUE. 

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

23 Enforcement Network shall carry out a study on Bank Se24 crecy Act value. 


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1 (b) REPORT.—Not later than the end of the 30-day 

2 period beginning on the date the study under subsection 

3 (a) is completed, the Director shall issue a report to the 

4 Committee on Financial Services of the House of Rep5 resentatives and the Committee on Banking, Housing, and 

6 Urban Affairs of the Senate containing all findings and 

7 determinations made in carrying out the study required 

8 under this section. 

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

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

11 determines it appropriate. 

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

13 this section, the term ‘‘Bank Secrecy Act’’ has the mean14 ing given that term under section 5312 of title 31, United 

15 States Code. 

16 SEC. 205. SHARING OF THREAT PATTERN AND TREND IN17 FORMATION. 

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

19 amended by section 201(a)(1), is further amended by add20 ing at the end the following: 

21 ‘‘(7) SHARING OF THREAT PATTERN AND

22 TREND INFORMATION.— 

23 ‘‘(A) SAR ACTIVITY REVIEW.—The Direc24 tor of the Financial Crimes Enforcement Net25 work shall restart publication of the ‘SAR AcVerDate Sep 11 2014 00:44 Oct 30, 2019 Jkt 099200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\H2514.RFS H2514

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1 tivity Review – Trends, Tips & Issues’, on not 

2 less than a semi-annual basis, to provide mean3 ingful information about the preparation, use, 

4 and value of reports filed under this subsection 

5 by financial institutions, as well as other re6 ports filed by financial institutions under the 

7 Bank Secrecy Act. 

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

9 publication described under subparagraph (A), 

10 the Director shall provide financial institutions 

11 with typologies, including data that can be 

12 adapted in algorithms (including for artificial 

13 intelligence and machine learning programs) 

14 where appropriate, on emerging money laun15 dering and counter terror financing threat pat16 terns and trends. 

17 ‘‘(C) TYPOLOGY DEFINED.—For purposes 

18 of this paragraph, the term ‘typology’ means 

19 the various techniques used to launder money 

20 or finance terrorism.’’. 

21 SEC. 206. MODERNIZATION AND UPGRADING WHISTLE22 BLOWER PROTECTIONS. 

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

24 States Code, is amended to read as follows: 


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1 ‘‘(d) SOURCE OF REWARDS.—For the purposes of 

2 paying a reward under this section, the Secretary may, 

3 subject to amounts made available in advance by appro4 priation Acts, use criminal fine, civil penalty, or forfeiture 

5 amounts recovered based on the original information with 

6 respect to which the reward is being paid.’’. 

7 (b) WHISTLEBLOWER INCENTIVES.— 

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

9 amended— 

10 (1) by inserting after section 5323 the fol11 lowing: 

12 ‘‘§ 5323A. Whistleblower incentives 

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

14 ‘‘(1) COVERED JUDICIAL OR ADMINISTRATIVE

15 ACTION.—The term ‘covered judicial or administra16 tive action’ means any judicial or administrative ac17 tion brought by FinCEN under the Bank Secrecy 

18 Act that results in monetary sanctions exceeding 

19 $1,000,000. 

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

21 Financial Crimes Enforcement Network. 

22 ‘‘(3) MONETARY SANCTIONS.—The term ‘mone23 tary sanctions’, when used with respect to any judi24 cial or administrative action, means— 


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

2 disgorgement, and interest, ordered to be paid; 

3 and 

4 ‘‘(B) any monies deposited into a 

5 disgorgement fund as a result of such action or 

6 any settlement of such action. 

7 ‘‘(4) ORIGINAL INFORMATION.—The term 

8 ‘original information’ means information that— 

9 ‘‘(A) is derived from the independent 

10 knowledge or analysis of a whistleblower; 

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

12 other source, unless the whistleblower is the 

13 original source of the information; and 

14 ‘‘(C) is not exclusively derived from an al15 legation made in a judicial or administrative 

16 hearing, in a governmental report, hearing, 

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

18 unless the whistleblower is a source of the infor19 mation. 

20 ‘‘(5) RELATED ACTION.—The term ‘related ac21 tion’, when used with respect to any judicial or ad22 ministrative action brought by FinCEN, means any 

23 judicial or administrative action that is based upon 

24 original information provided by a whistleblower that 

25 led to the successful enforcement of the action. 


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

2 the Secretary of the Treasury. 

3 ‘‘(7) WHISTLEBLOWER.—The term ‘whistle4 blower’ means any individual who provides, or two or 

5 more individuals acting jointly who provide, informa6 tion relating to a violation of laws enforced by 

7 FinCEN, in a manner established, by rule or regula8 tion, by FinCEN. 

9 ‘‘(b) AWARDS.— 

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

11 administrative action, or related action, the Sec12 retary, under such rules as the Secretary may issue 

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

14 awards to one or more whistleblowers who volun15 tarily provided original information to FinCEN that 

16 led to the successful enforcement of the covered judi17 cial or administrative action, or related action, in an 

18 aggregate amount equal to not more than 30 per19 cent, in total, of what has been collected of the mon20 etary sanctions imposed in the action. 

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

22 paying any award under paragraph (1), the Sec23 retary may, subject to amounts made available in 

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1 mation with respect to which the award is being 

2 paid. 

3 ‘‘(c) DETERMINATION OF AMOUNT OF AWARD; DE4 NIAL OF AWARD.— 

5 ‘‘(1) DETERMINATION OF AMOUNT OF

6 AWARD.— 

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

8 the amount of an award made under subsection 

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

10 ‘‘(B) CRITERIA.—In responding to a dis11 closure and determining the amount of an 

12 award made, FinCEN staff shall meet with the 

13 whistleblower to discuss evidence disclosed and 

14 rebuttals to the disclosure, and shall take into 

15 consideration— 

16 ‘‘(i) the significance of the informa17 tion provided by the whistleblower to the 

18 success of the covered judicial or adminis19 trative action; 

20 ‘‘(ii) the degree of assistance provided 

21 by the whistleblower and any legal rep22 resentative of the whistleblower in a cov23 ered judicial or administrative action; 

24 ‘‘(iii) the mission of FinCEN in deter25 ring violations of the law by making 


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1 awards to whistleblowers who provide in2 formation that lead to the successful en3 forcement of such laws; and 

4 ‘‘(iv) such additional relevant factors 

5 as the Secretary may establish by rule. 

6 ‘‘(2) DENIAL OF AWARD.—No award under 

7 subsection (b) shall be made— 

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

9 the time the whistleblower acquired the original 

10 information submitted to FinCEN, a member, 

11 officer, or employee of— 

12 ‘‘(i) an appropriate regulatory agency; 

13 ‘‘(ii) the Department of Justice; 

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

15 ‘‘(iv) a law enforcement organization; 

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

17 of a criminal violation, or who the Secretary 

18 has a reasonable basis to believe committed a 

19 criminal violation, related to the judicial or ad20 ministrative action for which the whistleblower 

21 otherwise could receive an award under this sec22 tion; 

23 ‘‘(C) to any whistleblower who gains the 

24 information through the performance of an 

25 audit of financial statements required under the 


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1 Bank Secrecy Act and for whom such submis2 sion would be contrary to its requirements; or 

3 ‘‘(D) to any whistleblower who fails to sub4 mit information to FinCEN in such form as the 

5 Secretary may, by rule, require. 

6 ‘‘(3) STATEMENT OF REASONS.—For any deci7 sion granting or denying an award, the Secretary 

8 shall provide to the whistleblower a statement of rea9 sons that includes findings of fact and conclusions of 

10 law for all material issues. 

11 ‘‘(d) REPRESENTATION.— 

12 ‘‘(1) PERMITTED REPRESENTATION.—Any 

13 whistleblower who makes a claim for an award under 

14 subsection (b) may be represented by counsel. 

15 ‘‘(2) REQUIRED REPRESENTATION.— 

16 ‘‘(A) IN GENERAL.—Any whistleblower 

17 who anonymously makes a claim for an award 

18 under subsection (b) shall be represented by 

19 counsel if the whistleblower anonymously sub20 mits the information upon which the claim is 

21 based. 

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

23 the payment of an award, a whistleblower shall 

24 disclose their identity and provide such other 


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1 information as the Secretary may require, di2 rectly or through counsel for the whistleblower. 

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

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

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

6 Any such determination, except the determination of the 

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

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

9 court of appeals of the United States not more than 30 

10 days after the determination is issued by the Secretary. 

11 The court shall review the determination made by the Sec12 retary in accordance with section 706 of title 5. 

13 ‘‘(f) EMPLOYEE PROTECTIONS.—The Secretary of 

14 the Treasury shall issue regulations protecting a whistle15 blower from retaliation, which shall be as close as prac16 ticable to the employee protections provided for under sec17 tion 1057 of the Consumer Financial Protection Act of 

18 2010.’’; and 

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

20 inserting after the item relating to section 5323 the 

21 following new item: 

‘‘5323A. Whistleblower incentives.’’. 


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1 SEC. 207. CERTAIN VIOLATORS BARRED FROM SERVING ON 

2 BOARDS OF UNITED STATES FINANCIAL IN3 STITUTIONS. 

4 Section 5321 of title 31, United States Code, is 

5 amended by adding at the end the following: 

6 ‘‘(f) CERTAIN VIOLATORS BARRED FROM SERVING

7 ON BOARDS OF UNITED STATES FINANCIAL INSTITU8 TIONS.— 

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

10 have committed an egregious violation of a provision 

11 of (or rule issued under) the Bank Secrecy Act shall 

12 be barred from serving on the board of directors of 

13 a United States financial institution for a 10-year 

14 period beginning on the date of such finding. 

15 ‘‘(2) EGREGIOUS VIOLATION DEFINED.—With 

16 respect to an individual, the term ‘egregious viola17 tion’ means— 

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

19 the individual was convicted; and 

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

21 willfully committed such violation and the viola22 tion facilitated money laundering or the financ23 ing of terrorism.’’. 


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1 SEC. 208. ADDITIONAL DAMAGES FOR REPEAT BANK SE2 CRECY ACT VIOLATORS. 

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

4 States Code, as amended by section 208, is further amend5 ed by adding at the end the following: 

6 ‘‘(g) ADDITIONAL DAMAGES FOR REPEAT VIOLA7 TORS.—In addition to any other fines permitted by this 

8 section and section 5322, with respect to a person who 

9 has previously been convicted of a criminal provision of 

10 (or rule issued under) the Bank Secrecy Act or who has 

11 admitted, as part of a deferred- or non-prosecution agree12 ment, to having previously committed a violation of a 

13 criminal provision of (or rule issued under) the Bank Se14 crecy Act, the Secretary may impose an additional civil 

15 penalty against such person for each additional such viola16 tion in an amount equal to up three times the profit 

17 gained or loss avoided by such person as a result of the 

18 violation.’’. 

19 (b) PROSPECTIVE APPLICATION OF AMENDMENT.— 

20 For purposes of determining whether a person has com21 mitted a previous violation under section 5321(g) of title 

22 31, United States Code, such determination shall only in23 clude violations occurring after the date of enactment of 

24 this Act. 


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1 SEC. 209. JUSTICE ANNUAL REPORT ON DEFERRED AND 

2 NON-PROSECUTION AGREEMENTS. 

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

4 issue an annual report, every year for the 5 years begin5 ning on the date of enactment of this Act, to the Commit6 tees on Financial Services and the Judiciary of the House 

7 of Representatives and the Committees on Banking, Hous8 ing, and Urban Affairs and the Judiciary of the Senate 

9 containing— 

10 (1) a list of deferred prosecution agreements 

11 and non-prosecution agreements that the Attorney 

12 General has entered into during the previous year 

13 with any person with respect to a violation or sus14 pected violation of the Bank Secrecy Act; 

15 (2) the justification for entering into each such 

16 agreement; 

17 (3) the list of factors that were taken into ac18 count in determining that the Attorney General 

19 should enter into each such agreement; and 

20 (4) the extent of coordination the Attorney 

21 General conducted with the Financial Crimes En22 forcement Network prior to entering into each such 

23 agreement. 

24 (b) CLASSIFIED ANNEX.—Each report under sub25 section (a) may include a classified annex. 


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

2 this section, the term ‘‘Bank Secrecy Act’’ has the mean3 ing given that term under section 5312 of title 31, United 

4 States Code. 

5 SEC. 210. RETURN OF PROFITS AND BONUSES. 

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

7 States Code, is amended by adding at the end the fol8 lowing: 

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

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

11 the Bank Secrecy Act shall— 

12 ‘‘(1) in addition to any other fine under this 

13 section, be fined in an amount equal to the profit 

14 gained by such person by reason of such violation, 

15 as determined by the court; and 

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

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

18 institution at the time the violation occurred, repay 

19 to such financial institution any bonus paid to such 

20 individual during the Federal fiscal year in which 

21 the violation occurred or the Federal fiscal year 

22 after which the violation occurred.’’. 

23 (b) RULE OF CONSTRUCTION.—The amendment 

24 made by subsection (a) may not be construed to prohibit 

25 a financial institution from requiring the repayment of a 


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1 bonus paid to a partner, director, officer, or employee if 

2 the financial institution determines that the partner, di3 rector, officer, or employee engaged in unethical, but non4 criminal, activities. 

5 SEC. 211. APPLICATION OF BANK SECRECY ACT TO DEAL6 ERS IN ANTIQUITIES. 

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

8 United States Code, is amended— 

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

10 the end; 

11 (2) by redesignating subparagraph (Z) as sub12 paragraph (AA); and 

13 (3) by inserting after subsection (Y) the fol14 lowing: 

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

16 intermediary in the trade of antiquities, includ17 ing an advisor, consultant or any other person 

18 who engages as a business in the solicitation of 

19 the sale of antiquities; or’’. 

20 (b) STUDY ON THE FACILITATION OF MONEY LAUN21 DERING AND TERROR FINANCE THROUGH THE TRADE OF

22 WORKS OF ART OR ANTIQUITIES.— 

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

24 coordination with Federal Bureau of Investigation, 

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1 tigations, shall perform a study on the facilitation of 

2 money laundering and terror finance through the 

3 trade of works of art or antiquities, including an 

4 analysis of— 

5 (A) the extent to which the facilitation of 

6 money laundering and terror finance through 

7 the trade of works of art or antiquities may 

8 enter or affect the financial system of the 

9 United States, including any qualitative data or 

10 statistics; 

11 (B) whether thresholds and definitions 

12 should apply in determining which entities to 

13 regulate; 

14 (C) an evaluation of which markets, by 

15 size, entity type, domestic or international geo16 graphical locations, or otherwise, should be sub17 ject to regulations, but only to the extent such 

18 markets are not already required to report on 

19 the trade of works of art or antiquities to the 

20 Federal Government; 

21 (D) an evaluation of whether certain ex22 emptions should apply; and 

23 (E) any other points of study or analysis 

24 the Secretary determines necessary or appro25 priate. 


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1 (2) REPORT.—Not later than the end of the 

2 180-day period beginning on the date of the enact3 ment of this Act, the Secretary of the Treasury shall 

4 issue a report to the Committee on Financial Serv5 ices of the House of Representatives and the Com6 mittee on Banking, Housing, and Urban Affairs of 

7 the Senate containing all findings and determina8 tions made in carrying out the study required under 

9 paragraph (1). 

10 (c) RULEMAKING.—Not later than the end of the 

11 180-day period beginning on the date the Secretary issues 

12 the report required under subsection (b)(2), the Secretary 

13 shall issue regulations to carry out the amendments made 

14 by subsection (a). 

15 SEC. 212. GEOGRAPHIC TARGETING ORDER. 

16 The Secretary of the Treasury shall issue a geo17 graphic targeting order, similar to the order issued by the 

18 Financial Crimes Enforcement Network on November 15, 

19 2018, that— 

20 (1) applies to commercial real estate to the 

21 same extent, with the exception of having the same 

22 thresholds, as the order issued by FinCEN on No23 vember 15, 2018, applies to residential real estate; 

24 and 


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1 (2) establishes a specific threshold for commer2 cial real estate. 

3 SEC. 213. STUDY AND REVISIONS TO CURRENCY TRANS4 ACTION REPORTS AND SUSPICIOUS ACTIVITY 

5 REPORTS. 

6 (a) CURRENCY TRANSACTION REPORTS.— 

7 (1) CTR INDEXED FOR INFLATION.— 

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

9 date of enactment of this Act, the Secretary of 

10 the Treasury shall revise regulations issued 

11 with respect to section 5313 of title 31, United 

12 States Code, to update each $10,000 threshold 

13 amount in such regulation to reflect the change 

14 in the Consumer Price Index for All Urban 

15 Consumers published by the Department of 

16 Labor, rounded to the nearest $100. For pur17 poses of calculating the change described in the 

18 previous sentence, the Secretary shall use 

19 $10,000 as the base amount and the date of en20 actment of this Act as the base date. 

21 (B) EXCEPTION.—Notwithstanding sub22 paragraph (A), the Secretary may make appro23 priate adjustments to the threshold amounts 

24 described under subparagraph (A) in high-risk 

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


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1 Areas or HIFCAs), if the Secretary has demon2 strable evidence that shows a threshold raise 

3 would increase serious crimes, such as traf4 ficking, or endanger national security. 

5 (2) GAO CTR STUDY.— 

6 (A) STUDY.—The Comptroller General of 

7 the United States shall carry out a study of 

8 currency transaction reports. Such study shall 

9 include— 

10 (i) a review (carried out in consulta11 tion with the Secretary of the Treasury, 

12 the Financial Crimes Enforcement Net13 work, the United States Attorney General, 

14 the State Attorneys General, and State, 

15 Tribal, and local law enforcement) of the 

16 effectiveness of the current currency trans17 action reporting regime; 

18 (ii) an analysis of the importance of 

19 currency transaction reports to law en20 forcement; and 

21 (iii) an analysis of the effects of rais22 ing the currency transaction report thresh23 old. 

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

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1 actment of this Act, the Comptroller General 

2 shall issue a report to the Secretary of the 

3 Treasury and the Congress containing— 

4 (i) all findings and determinations 

5 made in carrying out the study required 

6 under subparagraph (A); and 

7 (ii) recommendations for improving 

8 the current currency transaction reporting 

9 regime. 

10 (b) MODIFIED SARS STUDY AND DESIGN.— 

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

12 Crimes Enforcement Network shall carry out a 

13 study, in consultation with industry stakeholders (in14 cluding money services businesses, community 

15 banks, and credit unions), the Federal functional 

16 regulators, State bank supervisors, and law enforce17 ment, of the design of a modified suspicious activity 

18 report form for certain customers and activities. 

19 Such study shall include— 

20 (A) an examination of appropriate optimal 

21 SARs thresholds to determine the level at which 

22 a modified SARs form could be employed; 

23 (B) an evaluation of which customers or 

24 transactions would be appropriate for a modi25 fied SAR, including— 


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1 (i) seasoned business customers; 

2 (ii) financial technology (Fintech) 

3 firms; 

4 (iii) structuring transactions; and 

5 (iv) any other customer or transaction 

6 that may be appropriate for a modified 

7 SAR; and 

8 (C) an analysis of the most effective meth9 ods to reduce the regulatory burden imposed on 

10 financial institutions in complying with the 

11 Bank Secrecy Act, including an analysis of the 

12 effect of— 

13 (i) modifying thresholds; 

14 (ii) shortening forms; 

15 (iii) combining Bank Secrecy Act 

16 forms; 

17 (iv) filing reports in periodic batches; 

18 and 

19 (v) any other method that may reduce 

20 the regulatory burden. 

21 (2) STUDY CONSIDERATIONS.—In carrying out 

22 the study required under paragraph (1), the Direc23 tor shall seek to balance law enforcement priorities, 

24 regulatory burdens experienced by financial institu25 tions, and the requirement for reports to have a 


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1 ‘‘high degree of usefulness to law enforcement’’ 

2 under the Bank Secrecy Act. 

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

4 year period beginning on the date of enactment of 

5 this Act, the Director shall issue a report to Con6 gress containing— 

7 (A) all findings and determinations made 

8 in carrying out the study required under sub9 section (a); and 

10 (B) sample designs of modified SARs 

11 forms based on the study results. 

12 (4) CONTRACTING AUTHORITY.—The Director 

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

14 the study required under this subsection. The au15 thority of the Director to enter into contracts under 

16 this paragraph shall be in effect for each fiscal year 

17 only to the extent and in the amounts as are pro18 vided in advance in appropriations Acts. 

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

20 (1) BANK SECRECY ACT.—The term ‘‘Bank Se21 crecy Act’’ has the meaning given that term under 

22 section 5312 of title 31, United States Code. 

23 (2) FEDERAL FUNCTIONAL REGULATOR.—The 

24 term ‘‘Federal functional regulator’’ has the mean25 ing given that term under section 103. 


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1 (3) 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 

5 States Code (commonly referred to as the Paper6 work Reduction Act). 

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

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

9 a report of a suspicious transaction under section 

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

11 (5) SEASONED BUSINESS CUSTOMER.—The 

12 term ‘‘seasoned business customer’’, shall have such 

13 meaning as the Secretary of the Treasury shall pre14 scribe, 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 

17 registered as, licensed by, or otherwise eligible 

18 to do business within the United States, a 

19 State, or 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 

24 Secretary may determine necessary or appro25 priate. 


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1 (6) STATE BANK SUPERVISOR.—The term 

2 ‘‘State bank supervisor’’ has the meaning given that 

3 term under section 3 of the Federal Deposit Insur4 ance Act (12 U.S.C. 1813). 

5 SEC. 214. STREAMLINING REQUIREMENTS FOR CURRENCY 

6 TRANSACTION REPORTS AND SUSPICIOUS 

7 ACTIVITY REPORTS. 

8 (a) REVIEW.—The Secretary of the Treasury (in con9 sultation with Federal law enforcement agencies, the Di10 rector of National Intelligence, the Federal functional reg11 ulators, and State bank supervisors and in consultation 

12 with other relevant stakeholders) shall undertake a formal 

13 review of the current financial institution reporting re14 quirements under the Bank Secrecy Act and its imple15 menting regulations and propose changes to further re16 duce regulatory burdens, and ensure that the information 

17 provided is of a ‘‘high degree of usefulness’’ to law en18 forcement, as set forth under section 5311 of title 31, 

19 United States Code. 

20 (b) CONTENTS.—The review required under sub21 section (a) shall include a study of— 

22 (1) whether the timeframe for filing a sus23 picious activity report should be increased from 30 

24 days; 


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1 (2) whether or not currency transaction report 

2 and suspicious activity report thresholds should be 

3 tied to inflation or otherwise periodically be ad4 justed; 

5 (3) whether the circumstances under which a fi6 nancial institution determines whether to file a ‘‘con7 tinuing suspicious activity report’’, or the processes 

8 followed by a financial institution in determining 

9 whether to file a ‘‘continuing suspicious activity re10 port’’ (or both) can be narrowed; 

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

12 on the suspicious activity report form and whether 

13 the number of fields should be reduced; 

14 (5) the increased use of exemption provisions to 

15 reduce currency transaction reports that are of little 

16 or no value to law enforcement efforts; 

17 (6) the current financial institution reporting 

18 requirements under the Bank Secrecy Act and its 

19 implementing regulations and guidance; and 

20 (7) such other items as the Secretary deter21 mines appropriate. 

22 (c) REPORT.—Not later than the end of the 1 year 

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

24 the Secretary of the Treasury, in consultation with law 

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1 quirements, shall issue a report to the Congress containing 

2 all findings and determinations made in carrying out the 

3 review required under subsection (a). 

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

5 (1) FEDERAL FUNCTIONAL REGULATOR.—The 

6 term ‘‘Federal functional regulator’’ has the mean7 ing given that term under section 103. 

8 (2) STATE BANK SUPERVISOR.—The term 

9 ‘‘State bank supervisor’’ has the meaning given that 

10 term under section 3 of the Federal Deposit Insur11 ance Act (12 U.S.C. 1813). 

12 (3) OTHER TERMS.—The terms ‘‘Bank Secrecy 

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

14 given those terms, respectively, under section 5312 

15 of title 31, United States Code. 

16 TITLE III—MODERNIZING THE 

17 AML SYSTEM 

18 SEC. 301. ENCOURAGING INNOVATION IN BSA COMPLI19 ANCE. 

20 Section 5318 of title 31, United States Code, as 

21 amended by section 202, is further amended by adding 

22 at the end the following: 

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

24 ‘‘(1) IN GENERAL.—The Federal functional reg25 ulators shall encourage financial institutions to conVerDate Sep 11 2014 00:44 Oct 30, 2019 Jkt 099200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\H2514.RFS H2514

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1 sider, evaluate, and, where appropriate, responsibly 

2 implement innovative approaches to meet the re3 quirements of this subchapter, including through the 

4 use of innovation pilot programs. 

5 ‘‘(2) EXEMPTIVE RELIEF.—The Secretary, pur6 suant to subsection (a), may provide exemptions 

7 from the requirements of this subchapter if the Sec8 retary determines such exemptions are necessary to 

9 facilitate the testing and potential use of new tech10 nologies and other innovations. 

11 ‘‘(3) RULE OF CONSTRUCTION.—This sub12 section may not be construed to require financial in13 stitutions to consider, evaluate, or implement innova14 tive approaches to meet the requirements of the 

15 Bank Secrecy Act. 

16 ‘‘(4) FEDERAL FUNCTIONAL REGULATOR DE17 FINED.—In this subsection, the term ‘Federal func18 tional regulator’ means the Board of Governors of 

19 the Federal Reserve System, the Comptroller of the 

20 Currency, the Federal Deposit Insurance Corpora21 tion, the National Credit Union Administration, the 

22 Securities and Exchange Commission, and the Com23 modity Futures Trading Commission.’’. 


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1 SEC. 302. INNOVATION LABS. 

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

3 title 31, United States Code, is amended by adding at the 

4 end the following: 

5 ‘‘§ 5333. Innovation Labs 

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

7 the Department of the Treasury and each Federal func8 tional regulator an Innovation Lab. 

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

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

11 the Treasury or the head of the Federal functional regu12 lator, as applicable. 

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

14 shall be— 

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

16 agencies, State bank supervisors, financial institu17 tions, and other persons (including vendors and 

18 technology companies) with respect to innovation 

19 and new technologies that may be used to comply 

20 with the requirements of the Bank Secrecy Act; 

21 ‘‘(2) to support the implementation of respon22 sible innovation and new technology, in a manner 

23 that complies with the requirements of the Bank Se24 crecy Act; 

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

26 partnerships; and 


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

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

3 under subsection (a) within the Department of the Treas4 ury shall be a lab within the Financial Crimes Enforce5 ment Network. 

6 ‘‘(e) DEFINITIONS.—In this subsection: 

7 ‘‘(1) FEDERAL FUNCTIONAL REGULATOR.—The 

8 term ‘Federal functional regulator’ means the Board 

9 of Governors of the Federal Reserve System, the 

10 Comptroller of the Currency, the Federal Deposit 

11 Insurance Corporation, the National Credit Union 

12 Administration, the Securities and Exchange Com13 mission, and the Commodity Futures Trading Com14 mission. 

15 ‘‘(2) STATE BANK SUPERVISOR.—The term 

16 ‘State bank supervisor’ has the meaning given that 

17 term under section 3 of the Federal Deposit Insur18 ance Act (12 U.S.C. 1813).’’. 

19 (b) CLERICAL AMENDMENT.—The table of contents 

20 for subchapter II of chapter 53 of title 31, United States 

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

‘‘5333. Innovation Labs.’’. 

22 SEC. 303. INNOVATION COUNCIL. 

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

24 Title 31, United States Code, as amended by section 302, 

25 is further amended by adding at the end the following: 


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1 ‘‘§ 5334. Innovation Council 

2 ‘‘(a) ESTABLISHMENT.—There is established the In3 novation Council (hereinafter in this section referred to 

4 as the ‘Council’), which shall consist of each Director of 

5 an Innovation Lab established under section 5334, a rep6 resentative of State bank supervisors (as defined under 

7 section 3 of the Federal Deposit Insurance Act (12 U.S.C. 

8 1813)), and the Director of the Financial Crimes Enforce9 ment Network. 

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

11 the Department of the Treasury shall serve as the Chair 

12 of the Council. 

13 ‘‘(c) DUTY.—The members of the Council shall co14 ordinate on activities related to innovation under the Bank 

15 Secrecy Act, but may not supplant individual agency de16 terminations on innovation. 

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

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

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

20 ‘‘(2) may include open and closed sessions, as 

21 determined necessary by the Council; and 

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

23 private entities and law enforcement agencies. 

24 ‘‘(e) REPORT.—The Council shall issue an annual re25 port, for each of the 7 years beginning on the date of en26 actment of this section, to the Secretary of the Treasury 


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1 on the activities of the Council during the previous year, 

2 including the success of programs as measured by metrics 

3 of success developed pursuant to section 5334(c)(4), and 

4 any regulatory or legislative recommendations that the 

5 Council may have.’’. 

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

7 for subchapter II of chapter 53 of title 31, United States 

8 Code, is amended by adding the end the following: 

‘‘5334. Innovation Council.’’. 

9 SEC. 304. TESTING METHODS RULEMAKING. 

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

11 States Code, as amended by section 301, is further amend12 ed by adding at the end the following: 

13 ‘‘(q) TESTING.— 

14 ‘‘(1) IN GENERAL.—The Secretary of the 

15 Treasury, in consultation with the head of each 

16 agency to which the Secretary has delegated duties 

17 or powers under subsection (a), shall issue a rule to 

18 specify— 

19 ‘‘(A) with respect to technology and related 

20 technology-internal processes (‘new technology’) 

21 designed to facilitate compliance with the Bank 

22 Secrecy Act requirements, the standards by 

23 which financial institutions are to test new 

24 technology; and 


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1 ‘‘(B) in what instances or under what cir2 cumstance and criteria a financial institution 

3 may replace or terminate legacy technology and 

4 processes for any examinable technology or 

5 process without the replacement or termination 

6 being determined an examination deficiency. 

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

8 under paragraph (1) may include— 

9 ‘‘(A) an emphasis on using innovative ap10 proaches, such as machine learning, rather than 

11 rules-based systems; 

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

13 to facilitate calibration of relevant systems; 

14 ‘‘(C) requirements for appropriate data 

15 privacy and security; and 

16 ‘‘(D) a requirement that the algorithms 

17 used by the regime be disclosed to the Financial 

18 Crimes Enforcement Network, upon request. 

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

20 financial institution or any director, officer, em21 ployee, or agent of any financial institution, volun22 tarily or pursuant to this subsection or any other au23 thority, discloses the institution’s algorithms to a 

24 Government agency, such algorithms and any mate25 rials associated with the creation of such algorithms 


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1 shall be considered confidential and not subject to 

2 public disclosure.’’. 

3 (b) UPDATE OF MANUAL.—The Financial Institu4 tions Examination Council shall ensure— 

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

6 updated to reflect the rulemaking required by the 

7 amendment made by subsection (a); and 

8 (2) that financial institutions are not penalized 

9 for the decisions based on such rulemaking to re10 place or terminate technology used for compliance 

11 with the Bank Secrecy Act (as defined under section 

12 5312 of title 31, United States Code) or other anti13 money laundering laws. 

14 SEC. 305. FINCEN STUDY ON USE OF EMERGING TECH15 NOLOGIES. 

16 (a) STUDY.— 

17 (1) IN GENERAL.—The Director of the Finan18 cial Crimes Enforcement Network (‘‘FinCEN’’) shall 

19 carry out a study on— 

20 (A) the status of implementation and in21 ternal use of emerging technologies, including 

22 artificial intelligence (‘‘AI’’), digital identity 

23 technologies, blockchain technologies, and other 

24 innovative technologies within FinCEN; 


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1 (B) whether AI, digital identity tech2 nologies, blockchain technologies, and other in3 novative technologies can be further leveraged 

4 to make FinCEN’s data analysis more efficient 

5 and effective; and 

6 (C) how FinCEN could better utilize AI, 

7 digital identity technologies, blockchain tech8 nologies, and other innovative technologies to 

9 more actively analyze and disseminate the infor10 mation it collects and stores to provide inves11 tigative leads to Federal, State, Tribal, and 

12 local law enforcement, and other Federal agen13 cies (collective, ‘‘Agencies’’), and better support 

14 its ongoing investigations when referring a case 

15 to the Agencies. 

16 (2) INCLUSION OF GTO DATA.—The study re17 quired under this subsection shall include data col18 lected through the Geographic Targeting Orders 

19 (‘‘GTO’’) program. 

20 (3) CONSULTATION.—In conducting the study 

21 required under this subsection, FinCEN shall con22 sult with the Directors of the Innovations Labs es23 tablished in section 302. 

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

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


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1 the Director shall issue a report to the Committee on 

2 Banking, Housing, and Urban Affairs of the Senate and 

3 the Committee on Financial Services of the House of Rep4 resentatives containing— 

5 (1) all findings and determinations made in car6 rying out the study required under subsection (a); 

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

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

9 or significant concerns identified by the Director, 

10 and their applicability to AI, digital identity tech11 nologies, blockchain technologies, and other innova12 tive technologies with respect to United States ef13 forts to combat money laundering and other forms 

14 of illicit finance; and 

15 (3) any policy recommendations that could fa16 cilitate and improve communication and coordination 

17 between the private sector, FinCEN, and Agencies 

18 through the implementation of innovative ap19 proaches, in order to meet their Bank Secrecy Act 

20 (as defined under section 5312 of title 31, United 

21 States Code) and anti-money laundering compliance 

22 obligations. 


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1 SEC. 306. DISCRETIONARY SURPLUS FUNDS. 

2 (a) IN GENERAL.—The dollar amount specified 

3 under section 7(a)(3)(A) of the Federal Reserve Act (12 

4 U.S.C. 289(a)(3)(A)) is reduced by $27,000,000. 

5 (b) EFFECTIVE DATE.—The amendment made by 

6 subsection (a) shall take effect on September 30, 2029. 

Passed the House of Representatives October 28, 

2019. 

Attest: CHERYL L. JOHNSON, 

Clerk. 


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