I 
113TH CONGRESS 
1ST SESSION H. R. 3317 
To strengthen the Federal statutes designed to deter money laundering and 
terrorism financing, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 23, 2013 
Ms. WATERS (for herself, Mrs. CAROLYN B. MALONEY of New York, Mr. AL 
GREEN of Texas, Mr. CLAY, Mr. CAPUANO, Mr. MEEKS, Ms. MOORE, and 
Mr. LYNCH) introduced the following bill; which was referred to the Com-
mittee on Financial Services, and in addition to the Committee on the 
Judiciary, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To strengthen the Federal statutes designed to deter money 
laundering and terrorism financing, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Holding Individuals Accountable and Deterring Money 
Laundering Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
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Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
TITLE I—HOLDING EXECUTIVES RESPONSIBLE FOR VIOLATIONS 
Sec. 101. Penalties for violations of the Bank Secrecy Act. 
Sec. 102. Criminal penalties. 
Sec. 103. Strengthening civil injunctive authority. 
Sec. 104. Clarification of removal and prohibition authority under the FDIA. 
Sec. 105. Independent litigation authority for FinCEN. 
Sec. 106. Treatment of executive compensation and personal liability. 
Sec. 107. Corporate governance and the legal responsibilities. 
TITLE II—STRENGTHENING OF REGULATORY OVERSIGHT AND 
ACCOUNTABILITY 
Sec. 201. Reporting and oversight of Bank Secrecy Act-related enforcement ac-
tions. 
Sec. 202. Consideration of BSA compliance in management ratings. 
TITLE III—CLARIFICATION OF SAFE HARBOR PROTECTIONS 
Sec. 301. Safe harbor protections. 
TITLE IV—STRENGTHENING REQUIREMENTS AND CLOSING 
LOOPHOLES 
Sec. 401. Expanding the crimes that can be a predicate offense to money laun-
dering. 
Sec. 402. Closing loopholes in Bank Secrecy Act reporting. 
Sec. 403. Definition of an institution-affiliated party. 
TITLE V—WHISTLEBLOWER PROTECTIONS 
Sec. 501. Modernization and upgrading whistleblower protections. 
TITLE VI—SENSE OF THE CONGRESS REGARDING CRIMINAL 
PENALTIES 
Sec. 601. Sense of the Congress. 
TITLE VII—STRENGTHENING GLOBAL COMMITMENTS 
Sec. 701. International coordination. 
Sec. 702. Sense of Congress regarding list of countries at high risk for money 
laundering. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) Money laundering is a serious threat to our 
national and economic security. The scale, efficiency, 
and complexity of the U.S. financial system make it 
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a prime target for those who seek to conceal and 
move the proceeds of illicit activity. 
(2) The spate of recent high-profile enforcement 
actions against some of the largest and most sophis-
ticated financial institutions raises troubling ques-
tions about the effectiveness of U.S. domestic anti- 
money laundering and counter-terrorism financing 
regulatory, compliance and enforcement efforts. 
(3) Money launderers have proven to adapt 
quickly in order to avoid detection. U.S. anti-money 
laundering laws and regulations must be rigorously 
reviewed and constantly updated to close loopholes 
and address the changing tactics employed by bad 
actors. 
(4) Given the global nature of money laun-
dering and terrorist financing and the increasing 
interrelatedness of the global financial system, a se-
cure global framework is essential to the integrity of 
the U.S. financial system. 
(5) Efforts to stanch the flow of illegal money 
across the world to drug cartels and terrorist organi-
zations should be a top U.S. priority. To achieve this 
mission, extensive collaboration among financial reg-
ulators, the Department of Treasury, the Depart-
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ment of State, the Department of Justice and state 
and federal law enforcement agencies is required. 
(6) U.S. anti-money laundering laws should 
meet international standards set by the Financial 
Action Task Force. 
(7) Without serious consequences for institu-
tions and individuals who fail to protect financial in-
stitutions from illicit financial activity – including 
significant fines, banning individuals from the indus-
try, and prison sentences for those who seek to ac-
tively evade anti-money laundering controls, finan-
cial institutions and individuals will continue to 
avoid compliance with U.S. anti-money laundering 
rules and regulations. 
(8) Effective anti-money laundering programs 
must emphasize sound corporate governance includ-
ing business line accountability and clear lines of 
legal responsibility for individuals, including board 
members and chief executive officers. 
(9) Avoiding money laundering risks requires 
an effective anti-money laundering program and a 
strong institutional compliance culture, with written 
standards, knowledgeable and adequate staff, strong 
monitoring processes, effective anti-money laun-
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dering training, and compensation structures that 
reward compliance. 
(10) Anti-money laundering deficiencies often 
reflect weaknesses in the management of a financial 
firm, which can in turn adversely affect the firm’s 
overall safety and soundness. Failure to account for 
management deficiencies in this context may perpet-
uate a false perception of the stability of financial 
firms. 
(11) Anti-money laundering examinations in re-
cent years at times failed to recognize the cumu-
lative effect of the violations they cited, instead nar-
rowly focusing their attention on individual banking 
units. The failure to review the cumulative effect of 
such violations permitted national banks to avoid 
and delay correcting problems, which allowed mas-
sive problems to occur before serious enforcement 
actions were taken. 
(12) Independent contractors often play a cen-
tral role in monitoring and auditing the overall ade-
quacy and effectiveness of a bank’s compliance pro-
gram under the Bank Secrecy Act. Any failure to 
hold these independent entities to the same standard 
as any other party who participates in the affairs of 
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a bank may jeopardize the efficacy of a bank’s anti- 
money laundering program. 
(13) Collaboration is an essential component of 
the U.S. strategy against money laundering, and is 
critical to our national security. U.S. law enforce-
ment agencies are most effective when they work to-
gether by sharing information, insight, and data. 
(14) The flow of information related to sus-
picious activity from financial institutions to law en-
forcement plays a key role in facilitating the disrup-
tion of terrorist networks that seek to harm the 
United States. The flow of such information depends 
on a high degree of certainty that financial institu-
tions will be protected from civil liability when shar-
ing such information with federal law enforcement 
agencies. 
(15) Whistleblower rights and protections play 
an important role in helping to ensure corporate in-
tegrity. Robust protections for whistleblowers and 
enhanced rewards for informants will incentivize 
compliance with anti-money laundering rules and 
procedures, and encourage the provision of valuable 
information to regulators and law enforcement agen-
cies. 
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TITLE I—HOLDING EXECUTIVES 
RESPONSIBLE FOR VIOLATIONS 
SEC. 101. PENALTIES FOR VIOLATIONS OF THE BANK SE-
CRECY ACT. 
(a) CIVIL MONETARY PENALTIES FOR WILLFUL VIO-
LATIONS.—Section 5321(a) of title 31, United States 
Code, is amended— 
(1) by striking ‘‘(a)(1) A domestic financial in-
stitution’’ and inserting the following: 
‘‘(a) IN GENERAL.— 
‘‘(1) CIVIL MONETARY PENALTIES FOR WILL-
FUL VIOLATIONS.—A domestic financial institution’’; 
(2) in paragraph (1)— 
(A) by striking ‘‘willfully violating’’ each 
place such term appears and inserting ‘‘willfully 
violating, or willfully causing any violation of,’’; 
(B) by striking ‘‘the amount (not to exceed 
$100,000) involved in the transaction (if any) 
or $25,000’’ and inserting ‘‘10 times the 
amount (not to exceed $10,000,000) involved in 
the transaction (if any) or $250,000’’; and 
(C) by adding at the end the following: ‘‘In 
determining 
appropriate 
monetary 
penalty 
amounts under this paragraph, the Secretary 
has the authority to ensure that penalty 
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amounts are commensurate with the nature of 
the violations, any patterns of violations, and, 
with respect to a financial institution or non-
financial trade or business, the size, capitaliza-
tion and market share of such institution or 
trade or business.’’; and 
(3) in paragraph (4)(A), by inserting after 
‘‘who violates’’ the following: ‘‘, or causes any viola-
tion of,’’. 
(b) CIVIL MONETARY PENALTIES FOR NEGLIGENT 
VIOLATIONS.—Section 5321(a)(6) of title 31, United 
States Code, is amended to read as follows: 
‘‘(6) NEGLIGENCE.— 
‘‘(A) IN
GENERAL.—The Secretary of the 
Treasury may impose a civil money penalty, for neg-
ligent violations of any provision of this subchapter 
or any regulation prescribed under this subchapter, 
of not more than— 
‘‘(i) $50,000, with respect to a financial in-
stitution or nonfinancial trade or business; and 
‘‘(ii) $5,000, with respect to any partner, 
director, officer, or employee of an institution, 
trade, or business. 
‘‘(B) VIOLATIONS
OF
THE
REQUIREMENT
TO 
MAINTAIN PROCEDURES TO ENSURE COMPLIANCE.— 
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For a violation of a regulation prescribed under sec-
tion 5318(a)(2), a separate violation occurs for each 
day the violation continues and at each office, 
branch, or place of business at which a violation oc-
curs or continues. 
‘‘(C) DETERMINATION OF PENALTY AMOUNT.— 
In 
determining 
appropriate 
monetary 
penalty 
amounts under this paragraph, the Secretary has 
the authority to ensure that penalty amounts are 
commensurate with the nature of the violations, any 
patterns of violations, and, with respect to a finan-
cial institution or nonfinancial trade or business, the 
size, capitalization and market share of such institu-
tion or trade or business.’’. 
SEC. 102. CRIMINAL PENALTIES. 
(a) IN GENERAL.—Section 5322 of title 31, United 
States Code, is amended— 
(1) by redesignating subsections (c) and (d) as 
subsections (d) and (e), respectively; 
(2) by inserting after subsection (b) the fol-
lowing: 
‘‘(c) FACILITATING EVASION.—In the case of a per-
son described under subsection (a) or (b) who additionally 
takes steps to facilitate evasion of a program or controls 
under a regulation prescribed or order issued under this 
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