I 

113TH CONGRESS 

2D SESSION H. R. 5758 

To provide requirements for the appropriate Federal banking agencies when 

requesting or ordering a depository institution to terminate a specific 

customer account, to provide for additional requirements related to subpoenas issued under the Financial Institutions Reform, Recovery, and 

Enforcement Act of 1989, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 20, 2014 

Mr. LUETKEMEYER (for himself, Mr. MURPHY of Florida, Mr. HASTINGS of 

Florida, and Mr. STIVERS) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To provide requirements for the appropriate Federal banking 

agencies when requesting or ordering a depository institution to terminate a specific customer account, to provide for additional requirements related to subpoenas 

issued under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 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. 

2 This Act may be cited as the ‘‘Financial Institution 

3 Customer Protection Act of 2014’’. 

4 SEC. 2. REQUIREMENTS FOR DEPOSIT ACCOUNT TERMI5 NATION REQUESTS AND ORDERS. 

6 (a) TERMINATION REQUESTS OR ORDERS MUST BE

7 MATERIAL.— 

8 (1) IN GENERAL.—An appropriate Federal 

9 banking agency may not suggest, request, or order 

10 a depository institution to terminate a specific cus11 tomer account or to otherwise restrict or discourage 

12 a depository institution from entering into or main13 taining a banking relationship with a specific cus14 tomer unless— 

15 (A) the agency has a material reason for 

16 such suggestion, request, or order; and 

17 (B) such reason is not based solely on rep18 utation risk. 

19 (2) TREATMENT OF NATIONAL SECURITY

20 THREATS.—If an appropriate Federal banking agen21 cy believes a specific customer poses a threat to na22 tional security, including any belief that such cus23 tomer is involved in terrorist financing, such belief 

24 shall satisfy the materiality requirement under para25 graph (1)(A). 

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

2 the 60-day period beginning on the date of the en3 actment of this Act, the appropriate Federal bank4 ing agencies shall, jointly, issue regulations defining 

5 the term ‘‘reputation risk’’ for purposes of this sec6 tion. 

7 (b) NOTICE REQUIREMENT.— 

8 (1) IN GENERAL.—If an appropriate Federal 

9 banking agency suggests, requests, or orders a de10 pository institution to terminate a specific customer 

11 account, the agency shall— 

12 (A) provide such suggestion, request, or 

13 order to the institution in writing; and 

14 (B) accompany such suggestion, request, 

15 or order with a justification for why such termi16 nation is needed, including any specific laws or 

17 regulations the agency believes are being vio18 lated by the customer, if any. 

19 (2) JUSTIFICATION REQUIREMENT.—A jus20 tification described under paragraph (1)(B) may not 

21 be based solely on the reputation risk to the deposi22 tory institution. 

23 (c) CUSTOMER NOTICE.— 

24 (1) NOTICE NOT REQUIRED.—Nothing in this 

25 section shall be construed as requiring a depository 

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1 institution or an appropriate Federal banking agen2 cy to inform a customer of the justification for the 

3 customer’s account termination described under sub4 section (b). 

5 (2) NOTICE PROHIBITED IN CASES OF NA6 TIONAL SECURITY.—If an appropriate Federal bank7 ing agency suggests, requests, or orders a depository 

8 institution to terminate a specific customer account 

9 based on a belief that the customer poses a threat 

10 to national security, neither the depository institu11 tion nor the appropriate Federal banking agency 

12 may inform the customer of the justification for the 

13 customer’s account termination. 

14 (d) REPORTING REQUIREMENT.—Each appropriate 

15 Federal banking agency shall issue an annual report to 

16 the Congress stating— 

17 (1) the aggregate number of specific customer 

18 accounts that the agency suggested, requested, or 

19 ordered a depository institution to terminate during 

20 the previous year; and 

21 (2) the legal authority under which the agency 

22 made such suggestions, requests, and orders. 

23 (e) DEFINITIONS.—For purposes of this section: 

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1 (1) APPROPRIATE FEDERAL BANKING AGEN2 CY.—The term ‘‘appropriate Federal banking agen3 cy’’ means— 

4 (A) the appropriate Federal banking agen5 cy, as defined under section 3 of the Federal 

6 Deposit Insurance Act (12 U.S.C. 1813); and 

7 (B) the National Credit Union Administra8 tion, in the case of an insured credit union. 

9 (2) DEPOSITORY INSTITUTION.—The term ‘‘de10 pository institution’’ means— 

11 (A) a depository institution, as defined 

12 under section 3 of the Federal Deposit Insur13 ance Act (12 U.S.C. 1813); and 

14 (B) an insured credit union. 

15 SEC. 3. AMENDMENTS TO THE FINANCIAL INSTITUTIONS 

16 REFORM, RECOVERY, AND ENFORCEMENT 

17 ACT OF 1989. 

18 Section 951 of the Financial Institutions Reform, Re19 covery, and Enforcement Act of 1989 (12 U.S.C. 1833a) 

20 is amended— 

21 (1) in subsection (c)(2), by striking ‘‘affecting’’ 

22 and inserting ‘‘by or against’’; and 

23 (2) in subsection (g)— 

24 (A) in the header, by striking ‘‘SUB25 POENAS’’ and inserting ‘‘INVESTIGATIONS’’; and 

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1 (B) by amending paragraph (1)(C) to read 

2 as follows: 

3 ‘‘(C) summon witnesses and require the 

4 production of any books, papers, correspond5 ence, memoranda, or other records which the 

6 Attorney General deems relevant or material to 

7 the inquiry, if the Attorney General— 

8 ‘‘(i) requests a court order from a 

9 court of competent jurisdiction for such ac10 tions and offers specific and articulable 

11 facts showing that there are reasonable 

12 grounds to believe that the information or 

13 testimony sought is relevant and material 

14 for conducting an investigation under this 

15 section; or 

16 ‘‘(ii) either personally or through dele17 gation no lower than the Deputy Attorney 

18 General, issues and signs a subpoena for 

19 such actions and has reasonable grounds 

20 to believe that the information or testi21 mony sought is relevant for conducting an 

22 investigation under this section.’’. 

Æ 

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