I 

113TH CONGRESS 

1ST SESSION H. R. 3700 

To instruct the Secretary of the Treasury to use 25 percent of civil fines 

collected for violations of the Bank Secrecy Act to make grants to 

community financial institutions to improve compliance with the provisions of that Act, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 11, 2013 

Mr. HINOJOSA (for himself, Ms. SHEA-PORTER, and Mr. VELA) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL 

To instruct the Secretary of the Treasury to use 25 percent 

of civil fines collected for violations of the Bank Secrecy 

Act to make grants to community financial institutions 

to improve compliance with the provisions of that Act, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Building Community 

5 Financial Institutions’ Capacity to Combat Money Laun6 dering Act’’. 


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1 SEC. 2. BSA COMPLIANCE IMPROVEMENT GRANTS. 

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

3 title 31, United States Code, is amended— 

4 (1) in section 5321, by adding at the end the 

5 following: 

6 ‘‘(f) CIVIL FINES USED FOR COMPLIANCE IMPROVE7 MENTS.— 

8 ‘‘(1) IN GENERAL.—For each year, 25 percent 

9 of all civil money penalties imposed on domestic fi10 nancial institutions pursuant to this section shall be 

11 deposited into the BSA Compliance Fund estab12 lished under section 5333. 

13 ‘‘(2) FINES UNDER OTHER LAW FOR ACTIONS

14 THAT VIOLATE THIS SECTION.—If a domestic finan15 cial institution pays a civil fine under any other pro16 vision of Federal law with respect to an action for 

17 which a civil money penalty is imposed under this 

18 section, 25 percent of such civil fine shall be depos19 ited into the BSA Compliance Fund established 

20 under section 5333.’’; and 

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

22 ‘‘§ 5333. Compliance improvement grants 

23 ‘‘(a) BSA COMPLIANCE FUND.—There is established 

24 a fund in the Treasury to be known as the ‘BSA Compli25 ance Fund’ (the ‘Fund’), which shall be used to carry out 

26 the grant program under this section. 


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1 ‘‘(b) COMPLIANCE GRANTS.— 

2 ‘‘(1) IN GENERAL.—Subject to the availability 

3 of funds in the Fund, the Secretary of the Treasury 

4 shall make grants to community financial institu5 tions to improve compliance with the requirements 

6 of this subchapter. 

7 ‘‘(2) APPLICATION.—A community financial in8 stitution that wishes to receive a grant under this 

9 section shall submit an application to the Secretary, 

10 in such form and manner as the Secretary deter11 mines appropriate, that contains— 

12 ‘‘(A) a compliance improvement plan that 

13 details how the grant will be used to improve 

14 compliance with the requirements of this sub15 chapter; 

16 ‘‘(B) the estimated cost of implementing 

17 such plan; and 

18 ‘‘(C) such other information as the Sec19 retary determines appropriate. 

20 ‘‘(3) COMPETITIVE SELECTION; PRIORITY FOR

21 CERTAIN AREAS.—The Secretary shall select which 

22 community financial institutions receive a grant 

23 under this section on a competitive basis based on 

24 the plans submitted under paragraph (2), and shall 

25 give priority to institutions located in counties that 


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1 have 20 percent or more of residents living below the 

2 Federal poverty line. 

3 ‘‘(4) AMOUNT OF GRANT.—A grant made under 

4 this section may not exceed the lesser of— 

5 ‘‘(A) $200,000; or 

6 ‘‘(B) 75 percent of the estimated cost of 

7 implementing the proposed compliance improve8 ment plan. 

9 ‘‘(c) ADMINISTRATIVE COSTS.—Not more than 4 per10 cent of the funds in the Fund may be used to pay for 

11 the administrative costs of carrying out this section. 

12 ‘‘(d) COMMUNITY FINANCIAL INSTITUTION DE13 FINED.—For purposes of this section, the term ‘commu14 nity financial institution’ means a domestic financial insti15 tution with less than $10,000,000,000 in assets.’’. 

16 (b) CLERICAL AMENDMENT.—The table of analysis 

17 for chapter 53 of title 31, United States Code, is amended 

18 by inserting after the item relating to section 5332 the 

19 following: 

‘‘5333. Compliance improvement grants.’’. 

20 SEC. 3. SUNSET. 

21 (a) IN GENERAL.—Effective October 1, 2018, title 

22 31, United States Code, is amended— 

23 (1) in section 5321, by striking subsection (f); 

24 (2) by striking section 5333; and 


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1 (3) in the table of analysis for chapter 53, by 

2 striking the item relating to section 5333. 

3 (b) AMOUNTS REMAINING IN BSA COMPLIANCE

4 FUND.—Effective October 1, 2018, the Secretary of the 

5 Treasury shall deposit any funds in the BSA Compliance 

6 Fund into the general fund of the Treasury. 

Æ 


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