End Banking for Human Traffickers Act of 2018

To increase the role of the financial industry in combating human trafficking. 1. Short title This Act may be cited as the End Banking for Human Traffickers Act of 2017 2. Increasing the role of the financial industry in combating human trafficking (a) Treasury as a member of the President's Interagency Task Force To Monitor and Combat Trafficking Section 105(b) of the Victims of Trafficking and Violence Protection Act of 2000 ( 22 U.S.C. 7103(b) the Secretary of the Treasury, the Secretary of Education, (b) Required review of procedures Not later than 180 days after the date of enactment of this Act, the Financial Institutions Examination Council shall, in consultation with the Secretary of the Treasury and other appropriate law enforcement agencies, take the following actions: (1) Review and enhance, where necessary, training and examinations procedures to improve the ability of anti-money laundering programs to target human trafficking operations. (2) Review and enhance, where necessary, procedures for referring potential human trafficking cases to the appropriate law enforcement agency. (c) Interagency task force recommendations targeting money laundering related to human trafficking (1) In general Not later than 180 days after the date of enactment of this Act, the Interagency Task Force to Monitor and Combat Trafficking shall prepare and submit to Congress, the Secretary of the Treasury, and each appropriate Federal banking agency a series of legislative, administrative, and regulatory recommendations, if necessary, to revise anti-money laundering programs of financial institutions in order to specifically target money laundering related to human trafficking, as described in paragraph (2). (2) Required recommendations The recommendations required under paragraph (1) shall, at a minimum, include the following: (A) Successful anti-human trafficking programs currently in place at financial institutions that are suitable for broader adoption. (B) Recommended changes, if necessary, to the internal policies, procedures, and controls at financial institutions so that such institutions can better deter and detect money laundering related to human trafficking. (C) Recommended changes, if necessary, to ongoing employee training programs at financial institutions so that those institutions can better equip employees to deter and detect money laundering related to human trafficking, including the training of legal counsel, risk managers, and compliance officers. (D) Recommended revisions, if necessary, to existing regulatory requirements and guidelines for the reporting of suspicious transactions by financial institutions, as required pursuant to section 5318(g) of title 31, United States Code, in order to facilitate the collection of data on instances of suspected human trafficking. (d) Additional reporting requirement Section 110(b) of the Trafficking Victims Protection Act of 2000 ( 22 U.S.C. 7107(b) (4) Description of efforts of United States to eliminate money laundering related to human trafficking In addition to the information required in the annual report under paragraph (1) and the interim report under paragraph (2), the Secretary of State, in consultation with the Attorney General and the Secretary of the Treasury, shall include in each such report a description of efforts of the United States to eliminate money laundering related to human trafficking and the number of investigations, arrests, indictments and convictions in money laundering cases with a nexus to human trafficking. . (b) Required review of procedures Not later than 180 days after the date of the enactment of this Act, the Financial Institutions Examination Council, in consultation with the Secretary of the Treasury, the private sector, and appropriate law enforcement agencies, shall— (1) review and enhance training and examinations procedures to improve the capabilities of anti-money laundering and countering the financing of terrorism programs to detect human trafficking-related financial transactions; (2) review and enhance procedures for referring potential human trafficking cases to the appropriate law enforcement agency; and (3) determine, as appropriate, whether requirements for financial institutions are sufficient to detect and deter money laundering related to human trafficking. (c) Interagency task force recommendations targeting money laundering related to human trafficking (1) In general Not later than 270 days after the date of the enactment of this Act, the Interagency Task Force to Monitor and Combat Trafficking shall submit to the Committee on Financial Services and the Committee on the Judiciary of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs and the Committee on the Judiciary of the Senate, and the head of each appropriate Federal banking agency— (A) an analysis of anti-money laundering efforts of the United States Government and United States financial institutions related to human trafficking; and (B) appropriate legislative, administrative, and other recommendations to strengthen efforts against money laundering relating to human trafficking. (2) Required recommendations The recommendations under paragraph (1) shall include— (A) feedback from financial institutions on best practices of successful anti-human trafficking programs currently in place that may be suitable for broader adoption by similarly situated financial institutions; (B) feedback from stakeholders, including trafficking victims and financial institutions, on policy proposals derived from the analysis conducted by the task force referred to in paragraph (1) that would enhance the efforts and programs of financial institutions to detect and deter money laundering related to human trafficking, including any recommended changes to internal policies, procedures, and controls related to human trafficking; (C) any recommended changes to training programs at financial institutions to better equip employees to deter and detect money laundering related to human trafficking; (D) any recommended changes to expand human trafficking-related information sharing among financial institutions and between such financial institutions, appropriate law enforcement agencies, and appropriate Federal agencies; and (E) recommended changes, if necessary, to existing statutory law to more effectively detect and deter money laundering related to human trafficking, where such money laundering involves the use of emerging technologies and virtual currencies. (e) (d) Limitation Nothing in this Act shall be construed to grant rulemaking authority to the Interagency Task Force to Monitor and Combat Trafficking. (f) (e) Definitions As used in this section— (1) the term anti-money laundering program (2) (1) the term appropriate Federal banking agency 12 U.S.C. 1813(q) (3) (2) the term human trafficking (A) sex trafficking in which a commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age; or (B) the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery; (4) (3) the term Interagency Task Force to Monitor and Combat Trafficking 22 U.S.C. 7103 (5) (4) the term law enforcement agency 3. Coordination of human trafficking issues by the Office of Terrorism and Financial Intelligence (a) Functions Section 312(a)(4) of title 31, United States Code, is amended— (1) by redesignating subparagraphs (E), (F), and (G) as subparagraphs (F), (G), and (H), respectively; and (2) by inserting after subparagraph (D) the following: (E) combating illicit financing relating to human trafficking; . (b) Interagency coordination Section 312(a) of title 31, United States Code, is amended by adding at the end the following: (8) Interagency coordination The Secretary of the Treasury, after consultation with the Undersecretary for Terrorism and Financial Crimes, shall designate an office within the OTFI that shall coordinate efforts to combat the illicit financing of human trafficking with— (A) other offices of the Department of the Treasury; (B) other Federal agencies, including— (i) the Office to Monitor and Combat Trafficking in Persons of the Department of State; and (ii) the Interagency Task Force to Monitor and Combat Trafficking; (C) State and local law enforcement agencies; and (D) foreign governments. . 4. Additional reporting requirement under the Trafficking Victims Protection Act of 2000 Section 105(d)(7) of the Trafficking Victims Protection Act of 2000 ( 22 U.S.C. 7103(d)(7) (1) in the matter preceding subparagraph (A)— (A) by inserting the Committee on Financial Services, the Committee on Foreign Affairs, (B) by inserting the Committee on Banking, Housing, and Urban Affairs, the Committee on Foreign Relations, (2) in subparagraph (Q)(vii), by striking ; and (3) in subparagraph (R), by striking the period at the end and inserting ; and (4) by adding at the end the following: (S) the efforts of the United States to eliminate money laundering related to human trafficking and the number of investigations, arrests, indictments, and convictions in money laundering cases with a nexus to human trafficking. . 1. Short title This Act may be cited as the End Banking for Human Traffickers Act of 2017 2. Increasing the role of the financial industry in combating human trafficking (a) Treasury as a member of the President's Interagency Task Force To Monitor and Combat Trafficking Section 105(b) of the Victims of Trafficking and Violence Protection Act of 2000 ( 22 U.S.C. 7103(b) the Secretary of the Treasury, the Secretary of Education, (b) Required review of procedures Not later than 180 days after the date of enactment of this Act, the Financial Institutions Examination Council shall, in consultation with the Secretary of the Treasury and other appropriate law enforcement agencies, take the following actions: (1) Review and enhance, where necessary, training and examinations procedures to improve the ability of anti-money laundering programs to target human trafficking operations. (2) Review and enhance, where necessary, procedures for referring potential human trafficking cases to the appropriate law enforcement agency. (c) Interagency task force recommendations targeting money laundering related to human trafficking (1) In general Not later than 180 days after the date of enactment of this Act, the Interagency Task Force to Monitor and Combat Trafficking shall prepare and submit to Congress, the Secretary of the Treasury, and each appropriate Federal banking agency a series of legislative, administrative, and regulatory recommendations, if necessary, to revise anti-money laundering programs of financial institutions in order to specifically target money laundering related to human trafficking, as described in paragraph (2). (2) Required recommendations The recommendations required under paragraph (1) shall, at a minimum, include the following: (A) Successful anti-human trafficking programs currently in place at financial institutions that are suitable for broader adoption. (B) Recommended changes, if necessary, to the internal policies, procedures, and controls at financial institutions so that such institutions can better deter and detect money laundering related to human trafficking. (C) Recommended changes, if necessary, to ongoing employee training programs at financial institutions so that those institutions can better equip employees to deter and detect money laundering related to human trafficking, including the training of legal counsel, risk managers, and compliance officers. (D) Recommended revisions, if necessary, to existing regulatory requirements and guidelines for the reporting of suspicious transactions by financial institutions, as required pursuant to section 5318(g) of title 31, United States Code, in order to facilitate the collection of data on instances of suspected human trafficking. (d) Additional reporting requirement Section 110(b) of the Trafficking Victims Protection Act of 2000 ( 22 U.S.C. 7107(b) (4) Description of efforts of United States to eliminate money laundering related to human trafficking In addition to the information required in the annual report under paragraph (1) and the interim report under paragraph (2), the Secretary of State, in consultation with the Attorney General and the Secretary of the Treasury, shall include in each such report a description of efforts of the United States to eliminate money laundering related to human trafficking and the number of investigations, arrests, indictments and convictions in money laundering cases with a nexus to human trafficking. . (e) Limitation Nothing in this Act shall be construed to grant rulemaking authority to the Interagency Task Force to Monitor and Combat Trafficking. (f) Definitions As used in this section— (1) the term anti-money laundering program (2) the term appropriate Federal banking agency 12 U.S.C. 1813(q) (3) the term human trafficking (A) sex trafficking in which a commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age; or (B) the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery; (4) the term Interagency Task Force to Monitor and Combat Trafficking 22 U.S.C. 7103 (5) the term law enforcement agency 3. Minimum standards for the elimination of trafficking Section 108(b) of the Trafficking Victims Protection Act of 2000 ( 22 U.S.C. 7106(b) (13) Whether the government of the country, consistent with the capacity of the country, has in effect a framework to prevent financial transactions involving the proceeds of severe forms of trafficking in persons, and is taking steps to implement such a framework, including by investigating, prosecuting, convicting, and sentencing individuals who attempt or conduct such transactions. . February 23, 2018 Reported from the Committee on Foreign Affairs

Summary: End Banking for Human Traffickers Act of 2018 (Sec. 2) This bill amends the Victims of Trafficking and Violence Protection Act of 2000 to add the Secretary of the Treasury as a member of the President's Interagency Task Force to Monitor and Combat Trafficking. The task force must submit to Congress recommendations for the revision of anti-money laundering programs specifically targeting severe forms of human trafficking. The Federal Financial Institutions Examination Council must: (1) review and enhance training and procedures to improve the capability of specified programs to target financial transactions relating to severe forms of human trafficking, (2) review and enhance procedures for referring potential severe human trafficking cases to the appropriate law enforcement agency, and (3) determine whether financial institution requirements are sufficient to detect and deter money laundering related to severe forms of human trafficking. (Sec. 3) The Office of Terrorism and Financial Intelligence must coordinate with other specified agencies to combat the illicit financing relating to severe forms of human trafficking. (Sec. 4) The bill amends the Trafficking Victims Protection Act of 2000 to require the task force to report on efforts to eliminate money laundering related to severe forms of human trafficking. (Sec. 5) The bill provides additional criteria to be considered by the State Department to indicate a country's serious and sustained efforts to eliminate human trafficking. Specifically, the bill adds criteria regarding whether a country has taken or is taking steps to implement a framework for preventing financial transactions involving severe forms of human trafficking.