FinCEN Modernization Act of 2023

Subjects: Finance and Financial Sector, Administrative remedies, Advanced technology and technological innovations, Computer security and identity theft, Computers and information technology, Congressional oversight, Department of the Treasury, Fraud offenses and financial crimes, Public contracts and procurement, Public-private cooperation, Research and development, Technology assessment

Summary:  <p><b>FinCEN Modernization Act of 2023</b></p> <p>This bill requires&nbsp;the Financial Crimes Enforcement Network (FinCEN) to establish programs and perform research related to financial technology on topics such as machine learning, data analytics, and cryptocurrency. The bill allows FinCEN to enter into transactions and to accept gifts related to these objectives.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 370 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 370

   To amend title 31, United States Code, to modernize the research, 
   development, information sharing, and acquisition process of the 
     Financial Crimes Enforcement Network, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 17, 2023

 Mr. Donalds introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
   To amend title 31, United States Code, to modernize the research, 
   development, information sharing, and acquisition process of the 
     Financial Crimes Enforcement Network, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``FinCEN Modernization Act of 2023''.

SEC. 2. MODERNIZING THE RESEARCH, DEVELOPMENT, INFORMATION SHARING, AND 
              ACQUISITION PROCESS AUTHORITIES OF THE FINANCIAL CRIMES 
              ENFORCEMENT NETWORK (FINCEN).

    Section 310 of title 31, United States Code, is amended by adding 
at the end the following:
    ``(m) Modernizing the Research, Development, Information Sharing, 
and Acquisition Process.--
            ``(1) In general.--FinCEN shall establish and maintain 
        research, development, and information sharing programs that 
        further the purposes and objectives of the laws administered by 
        FinCEN, including programs that--
                    ``(A) inform FinCEN of important technological 
                advances and innovations like machine learning and data 
                analytics that help safeguard financial systems and 
                detect illicit activity;
                    ``(B) facilitate an environment where these 
                technological advances and innovations may be explored 
                by developers and FinCEN to evaluate potential benefits 
                for the financial industry;
                    ``(C) identify areas where FinCEN should adapt to 
                facilitate these technological advances and 
                innovations, and encourage the development of novel 
                tools that are currently not available for use by 
                FinCEN that would benefit financial systems monitored 
                by FinCEN;
                    ``(D) ensure that FinCEN has the necessary 
                technology to monitor cryptocurrencies and other 
                emerging financial technologies for their potential use 
                in money laundering and cyber and data security 
                breaches; and
                    ``(E) facilitate FinCEN's ability to exchange and 
                use information between other offices and bureaus of 
                the Department of the Treasury, as well as other 
                departments within the Federal Government.
            ``(2) Authorized means.--Notwithstanding any other 
        provision of law, FinCEN may do the following to accomplish the 
        requirements described in paragraph (1):
                    ``(A) Other transaction authority.--FinCEN may 
                enter into and perform transactions (other than a 
                standard contract) with any agency or instrumentality 
                of the United States, or with any State, territory, or 
                possession of the United States, or with any political 
                subdivision thereof, or with any person, firm, 
                association, corporation, educational institution, 
                self-regulatory organization, foreign government, 
                international organization, or other entity, on such 
                terms and conditions as the Director of FinCEN 
                determines appropriate if--
                            ``(i) the transaction is used only for the 
                        requirements described in paragraph (1);
                            ``(ii) FinCEN endeavors to use a 
                        competitive process, where appropriate, when 
                        determining the parties to the transaction; and
                            ``(iii) the Director makes a written 
                        determination that using a standard contract to 
                        do so is either not feasible or not 
                        appropriate.
                    ``(B) Gift acceptance authority.--During the 5-year 
                period that begins with the date of enactment of this 
                subsection, FinCEN may solicit, accept, and utilize any 
                contribution, provision of access, gift, or donation of 
                tangible or intangible property or service that the 
                Director determines appropriate, from any agency or 
                instrumentality of the United States, or any State, 
                territory, or possession of the United State, or any 
                political subdivision thereof, or any person, firm, 
                association, corporation, educational institution, 
                self-regulatory organization, or other entity, if--
                            ``(i) the property or service is used only 
                        for the requirements described in paragraph 
                        (1); and
                            ``(ii) the Director makes a written 
                        determination that accepting the contribution, 
                        provision of access, gift, or donation is 
                        consistent with fulfilling such requirements, 
                        and that using the standard contract or other 
                        transaction to do so is neither feasible nor 
                        appropriate.
            ``(3) Annual report.--Not later than 60 days after the end 
        of each fiscal year, FinCEN shall submit to the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and the 
        Committee on Financial Services of the House of Representatives 
        a report on all transactions entered into, and all 
        contributions, provisions of access, gifts, or donations 
        accepted under paragraph (2), including--
                    ``(A) a brief description of the rationale for and 
                purpose of each transaction, contribution, provision of 
                access, gift, or donation, with an explanation of its 
                potential utility to FinCEN, as well as the current 
                status of all related projects;
                    ``(B) FinCEN's justification for why it was not 
                feasible or appropriate to use the standard contract 
                with respect to that subject;
                    ``(C) in the case of a transaction other than a 
                contribution, provision of access, gift, or donation, 
                an explanation of FinCEN's efforts to use a competitive 
                process, or the reason why such a process was not 
                appropriate; and
                    ``(D) a description of all sums expended by FinCEN 
                in connection with a transaction and, if readily 
                available, the value of any contribution, provision of 
                access, gift, or donation.''.
                                 &lt;all&gt;
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