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‘‘(5) RETENTION AND DISCLOSURE OF BENE-
FICIAL OWNERSHIP INFORMATION BY FINCEN.— 
‘‘(A) RETENTION OF INFORMATION.—Ben-
eficial ownership information relating to each 
corporation or limited liability company formed 
under the laws of the State or Indian Tribe 
shall be maintained by FinCEN until the end of 
the 5-year period (or such other period of time 
as the Secretary of the Treasury may, by rule, 
determine) beginning on the date that the cor-
poration or limited liability company termi-
nates. 
‘‘(B) DISCLOSURE
OF
INFORMATION.— 
Beneficial ownership information reported to 
FinCEN pursuant to this section shall be pro-
vided by FinCEN only upon receipt of— 
‘‘(i) subject to subparagraph (C), a 
request, through appropriate protocols, by 
a local, Tribal, State, or Federal law en-
forcement agency; 
‘‘(ii) a request made by a Federal 
agency on behalf of a law enforcement 
agency of another country under an inter-
national treaty, agreement, or convention, 
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or an order under section 3512 of title 18 
or section 1782 of title 28; or 
‘‘(iii) a request made by a financial 
institution, with customer consent, as part 
of the institution’s compliance with due 
diligence requirements imposed under the 
Bank Secrecy Act, the USA PATRIOT 
Act, or other applicable Federal, State, or 
Tribal law. 
‘‘(C) APPROPRIATE PROTOCOLS.— 
‘‘(i) PRIVACY.—The protocols de-
scribed in subparagraph (B)(i) shall— 
‘‘(I) protect the privacy of any 
beneficial ownership information pro-
vided by FinCEN to a local, Tribal, 
State, or Federal law enforcement 
agency; 
‘‘(II) ensure that a local, Tribal, 
State, or Federal law enforcement 
agency requesting beneficial ownership 
information has an existing investiga-
tory basis for requesting such infor-
mation; 
‘‘(III) ensure that access to bene-
ficial ownership information is limited 
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to authorized users at a local, Tribal, 
State, or Federal law enforcement 
agency who have undergone appro-
priate training, and refresher training 
no less than every 2 years, and that 
the identity of such authorized users 
is verified through appropriate mecha-
nisms, such as two-factor authentica-
tion; 
‘‘(IV) include an audit trail of re-
quests for beneficial ownership infor-
mation by a local, Tribal, State, or 
Federal law enforcement agency, in-
cluding, as necessary, information 
concerning queries made by author-
ized users at a local, Tribal, State, or 
Federal law enforcement agency; 
‘‘(V) require that every local, 
Tribal, State, or Federal law enforce-
ment agency that receives beneficial 
ownership information from FinCEN 
conducts an annual audit to verify 
that the beneficial ownership informa-
tion received from FinCEN has been 
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accessed and used appropriately, and 
consistent with this paragraph; and 
‘‘(VI) require FinCEN to con-
duct an annual audit of every local, 
Tribal, State, or Federal law enforce-
ment agency that has received bene-
ficial ownership information to ensure 
that such agency has requested bene-
ficial ownership information, and has 
used any beneficial ownership infor-
mation received from FinCEN, appro-
priately, and consistent with this 
paragraph. 
‘‘(ii) LIMITATION ON USE.—Beneficial 
ownership information provided to a local, 
Tribal, State, or Federal law enforcement 
agency under this paragraph may only be 
used for law enforcement, national secu-
rity, or intelligence purposes. 
‘‘(D) 
ACCESS
PROCEDURES.—FinCEN 
shall establish stringent procedures for the pro-
tection and proper use of beneficial ownership 
information disclosed pursuant to subparagraph 
(B), including procedures to ensure such infor-
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mation is not being inappropriately accessed or 
misused by law enforcement agencies. 
‘‘(E) REPORT
TO
CONGRESS.—FinCEN 
shall issue an annual report to Congress stat-
ing— 
‘‘(i) the number of times law enforce-
ment agencies and financial institutions 
have accessed beneficial ownership infor-
mation pursuant to subparagraph (B); 
‘‘(ii) the number of times beneficial 
ownership 
information 
reported 
to 
FinCEN pursuant to this section was inap-
propriately accessed, and by whom; and 
‘‘(iii) the number of times beneficial 
ownership information was disclosed under 
subparagraph (B) pursuant to a subpoena. 
‘‘(F) DISCLOSURE
OF
NON-PII
DATA.— 
Notwithstanding subparagraph (B), FinCEN 
may issue guidance and otherwise make mate-
rials available to financial institutions and the 
public using beneficial ownership information 
reported pursuant to this section if such infor-
mation is aggregated in a manner that removes 
all personally identifiable information. For pur-
poses of this subparagraph, ‘personally identifi-
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able information’ includes information that 
would allow for the identification of a particular 
corporation or limited liability company. 
‘‘(b) NO BEARER SHARE CORPORATIONS OR LIM-
ITED LIABILITY COMPANIES.—A corporation or limited li-
ability company formed under the laws of a State or In-
dian Tribe may not issue a certificate in bearer form evi-
dencing either a whole or fractional interest in the cor-
poration or limited liability company. 
‘‘(c) PENALTIES.— 
‘‘(1) IN GENERAL.—It shall be unlawful for any 
person to affect interstate or foreign commerce by— 
‘‘(A) knowingly providing, or attempting to 
provide, false or fraudulent beneficial ownership 
information, including a false or fraudulent 
identifying photograph, to FinCEN in accord-
ance with this section; 
‘‘(B) willfully failing to provide complete or 
updated beneficial ownership information to 
FinCEN in accordance with this section; or 
‘‘(C) knowingly disclosing the existence of 
a subpoena or other request for beneficial own-
ership information reported pursuant to this 
section, except— 
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‘‘(i) to the extent necessary to fulfill 
the authorized request; or 
‘‘(ii) as authorized by the entity that 
issued the subpoena, or other request. 
‘‘(2) CIVIL
AND
CRIMINAL
PENALTIES.—Any 
person who violates paragraph (1)— 
‘‘(A) shall be liable to the United States 
for a civil penalty of not more than $10,000; 
and 
‘‘(B) may be fined under title 18, United 
States Code, imprisoned for not more than 3 
years, or both. 
‘‘(3) LIMITATION.—Any person who negligently 
violates paragraph (1) shall not be subject to civil or 
criminal penalties under paragraph (2). 
‘‘(4) WAIVER.—The Secretary of the Treasury 
may waive the penalty for violating paragraph (1) if 
the Secretary determines that the violation was due 
to reasonable cause and was not due to willful ne-
glect. 
‘‘(5) CRIMINAL PENALTY FOR THE MISUSE OR 
UNAUTHORIZED DISCLOSURE OF BENEFICIAL OWN-
ERSHIP INFORMATION.—The criminal penalties pro-
vided for under section 5322 shall apply to a viola-
tion of this section to the same extent as such crimi-
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nal penalties apply to a violation described in section 
5322, if the violation of this section consists of the 
misuse or unauthorized disclosure of beneficial own-
ership information. 
‘‘(d) DEFINITIONS.—For the purposes of this section: 
‘‘(1) APPLICANT.—The term ‘applicant’ means 
any natural person who files an application to form 
a corporation or limited liability company under the 
laws of a State or Indian Tribe. 
‘‘(2) BANK SECRECY ACT.—The term ‘Bank Se-
crecy Act’ means— 
‘‘(A) section 21 of the Federal Deposit In-
surance Act; 
‘‘(B) chapter 2 of title I of Public Law 91– 
508; and 
‘‘(C) this subchapter. 
‘‘(3) BENEFICIAL OWNER.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘beneficial owner’ 
means a natural person who, directly or indi-
rectly, through any contract, arrangement, un-
derstanding, relationship, or otherwise— 
‘‘(i) exercises substantial control over 
a corporation or limited liability company; 
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‘‘(ii) owns 25 percent or more of the 
equity interests of a corporation or limited 
liability company; or 
‘‘(iii) receives substantial economic 
benefits from the assets of a corporation or 
limited liability company. 
‘‘(B) EXCEPTIONS.—The term ‘beneficial 
owner’ shall not include— 
‘‘(i) a minor child, as defined in the 
State or Indian Tribe in which the entity 
is formed; 
‘‘(ii) a person acting as a nominee, 
intermediary, custodian, or agent on behalf 
of another person; 
‘‘(iii) a person acting solely as an em-
ployee of a corporation or limited liability 
company and whose control over or eco-
nomic benefits from the corporation or lim-
ited liability company derives solely from 
the employment status of the person; 
‘‘(iv) a person whose only interest in 
a corporation or limited liability company 
is through a right of inheritance; or 
‘‘(v) a creditor of a corporation or 
limited liability company, unless the cred-
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itor also meets the requirements of sub-
paragraph (A). 
‘‘(C) SUBSTANTIAL
ECONOMIC
BENEFITS 
DEFINED.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A)(ii), a natural person re-
ceives substantial economic benefits from 
the assets of a corporation or limited liabil-
ity company if the person has an entitle-
ment to more than a specified percentage 
of the funds or assets of the corporation or 
limited liability company, which the Sec-
retary of the Treasury shall, by rule, estab-
lish. 
‘‘(ii) RULEMAKING CRITERIA.—In es-
tablishing the percentage under clause (i), 
the Secretary of the Treasury shall seek 
to— 
‘‘(I) provide clarity to corpora-
tions and limited liability companies 
with respect to the identification and 
disclosure of a natural person who re-
ceives substantial economic benefits 
from the assets of a corporation or 
limited liability company; and 
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‘‘(II) identify those natural per-
sons who, as a result of the substan-
tial economic benefits they receive 
from the assets of a corporation or 
limited liability company, exercise a 
dominant influence over such corpora-
tion or limited liability company. 
‘‘(4) CORPORATION; LIMITED LIABILITY COM-
PANY.—The terms ‘corporation’ and ‘limited liability 
company’— 
‘‘(A) have the meanings given such terms 
under the laws of the applicable State or Indian 
Tribe; 
‘‘(B) include any non-United States entity 
eligible for registration or registered to do busi-
ness as a corporation or limited liability com-
pany under the laws of the applicable State or 
Indian Tribe; 
‘‘(C) do not include any entity that is— 
‘‘(i) a business concern that is an 
issuer of a class of securities registered 
under section 12 of the Securities Ex-
change Act of 1934 (15 U.S.C. 781) or 
that is required to file reports under sec-
tion 15(d) of that Act (15 U.S.C. 78o(d)); 
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‘‘(ii) a business concern constituted, 
sponsored, or chartered by a State or In-
dian Tribe, a political subdivision of a 
State or Indian Tribe, under an interstate 
compact between two or more States, by a 
department or agency of the United 
States, or under the laws of the United 
States; 
‘‘(iii) a bank, as defined under— 
‘‘(I) section 2(a) of the Invest-
ment Company Act of 1940 (15 
U.S.C. 80a–2(a)); or 
‘‘(II) section 202(a) of the In-
vestment Advisers Act of 1940 (15 
U.S.C. 80b–2(a)); 
‘‘(iv) a credit union (as defined in sec-
tion 101 of the Federal Credit Union Act 
(12 U.S.C. 1752)); 
‘‘(v) a bank holding company (as de-
fined in section 2 of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1841)) 
or a savings and loan holding company (as 
defined in section 10(a) of the Home Own-
ers’ Loan Act (12 U.S.C. 1467a(a)); 
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‘‘(vi) a broker or dealer (as defined in 
section 3 of the Securities Exchange Act of 
1934 (15 U.S.C. 78c)) that is registered 
under section 15 of the Securities Ex-
change Act of 1934 (15 U.S.C. 78o); 
‘‘(vii) an exchange or clearing agency 
(as defined in section 3 of the Securities 
Exchange Act of 1934 (15 U.S.C. 78c)) 
that is registered under section 6 or 17A 
of the Securities Exchange Act of 1934 
(15 U.S.C. 78f and 78q–1); 
‘‘(viii) an investment company (as de-
fined in section 3 of the Investment Com-
pany Act of 1940 (15 U.S.C. 80a–3)) or 
an investment adviser (as defined in sec-
tion 202(11) of the Investment Advisers 
Act of 1940 (15 U.S.C. 80b–2(11))), if the 
company or adviser is registered with the 
Securities and Exchange Commission, has 
filed an application for registration which 
has not been denied, under the Investment 
Company Act of 1940 (15 U.S.C. 80a–1 et 
seq.) or the Investment Adviser Act of 
1940 (15 U.S.C. 80b–1 et seq.), or is an 
investment adviser described under section 
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203(l) of the Investment Advisers Act of 
1940 (15 U.S.C. 80b–3(l)); 
‘‘(ix) an insurance company (as de-
fined in section 2 of the Investment Com-
pany Act of 1940 (15 U.S.C. 80a–2)); 
‘‘(x) a registered entity (as defined in 
section 1a of the Commodity Exchange Act 
(7 U.S.C. 1a)), or a futures commission 
merchant, introducing broker, commodity 
pool operator, or commodity trading advi-
sor (as defined in section 1a of the Com-
modity Exchange Act (7 U.S.C. 1a)) that 
is registered with the Commodity Futures 
Trading Commission; 
‘‘(xi) a public accounting firm reg-
istered in accordance with section 102 of 
the Sarbanes-Oxley Act (15 U.S.C. 7212) 
or an entity controlling, controlled by, or 
under common control of such a firm; 
‘‘(xii) a public utility that provides 
telecommunications 
service, 
electrical 
power, natural gas, or water and sewer 
services, within the United States; 
‘‘(xiii) a church, charity, nonprofit en-
tity, or other organization that is described 
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in section 501(c), 527, or 4947(a)(1) of 
the Internal Revenue Code of 1986, that 
has not been denied tax exempt status, and 
that has filed the most recently due annual 
information return with the Internal Rev-
enue Service, if required to file such a re-
turn; 
‘‘(xiv) a financial market utility des-
ignated by the Financial Stability Over-
sight Council under section 804 of the 
Dodd-Frank Wall Street Reform and Con-
sumer Protection Act; 
‘‘(xv) an insurance producer (as de-
fined in section 334 of the Gramm-Leach- 
Bliley Act); 
‘‘(xvi) any pooled investment vehicle 
that is operated or advised by a person de-
scribed in clause (iii), (iv), (v), (vi), (viii), 
(ix), or (xi); 
‘‘(xvii) any business concern that— 
‘‘(I) employs more than 20 em-
ployees on a full-time basis in the 
United States; 
‘‘(II) files income tax returns in 
the United States demonstrating more 
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than $5,000,000 in gross receipts or 
sales; and 
‘‘(III) has an operating presence 
at a physical office within the United 
States; or 
‘‘(xviii) any corporation or limited li-
ability company formed and owned by an 
entity described in this clause or in clause 
(i), (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix), 
(x), (xi), (xii), (xiii), (xiv), (xv), or (xvi); 
and 
‘‘(D) do not include any individual busi-
ness concern or class of business concerns 
which the Secretary of the Treasury and the 
Attorney General of the United States have 
jointly determined, by rule of otherwise, to be 
exempt from the requirements of subsection (a), 
if the Secretary and the Attorney General joint-
ly determine that requiring beneficial ownership 
information from the business concern would 
not serve the public interest and would not as-
sist law enforcement efforts to detect, prevent, 
or prosecute terrorism, money laundering, tax 
evasion, or other misconduct. 
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‘‘(5) FINCEN.—The term ‘FinCEN’ means the 
Financial Crimes Enforcement Network of the De-
partment of the Treasury. 
‘‘(6) INDIAN
COUNTRY.—The term ‘Indian 
country’ has the meaning given that term in section 
1151 of title 18. 
‘‘(7) INDIAN TRIBE.—The term ‘Indian Tribe’ 
has the meaning given that term under section 102 
of the Federally Recognized Indian Tribe List Act of 
1994. 
‘‘(8) PERSONAL
IDENTIFICATION
CARD.—The 
term ‘personal identification card’ means an identi-
fication document issued by a State, Indian Tribe, 
or local government to an individual solely for the 
purpose of identification of that individual. 
‘‘(9) STATE.—The term ‘State’ means any 
State, commonwealth, territory, or possession of the 
United States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Commonwealth of the 
Northern Mariana Islands, American Samoa, Guam, 
or the United States Virgin Islands.’’. 
(2) RULEMAKING.— 
(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this Act, the Sec-
retary of the Treasury shall issue regulations to 
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carry out this division and the amendments 
made by this division, including, to the extent 
necessary, to clarify the definitions in section 
5333(d) of title 31, United States Code. 
(B) REVISION OF FINAL RULE.—Not later 
than 1 year after the date of enactment of this 
Act, the Secretary of the Treasury shall revise 
the final rule titled ‘‘Customer Due Diligence 
Requirements for Financial Institutions’’ (May 
11, 2016; 81 Fed. Reg. 29397) to— 
(i) bring the rule into conformance 
with this division and the amendments 
made by this division; 
(ii) account for financial institutions’ 
access to comprehensive beneficial owner-
ship information filed by corporations and 
limited liability companies, under threat of 
civil and criminal penalties, under this divi-
sion and the amendments made by this di-
vision; and 
(iii) reduce any burdens on financial 
institutions that are, in light of the enact-
ment of this division and the amendments 
made by this division, unnecessary or du-
plicative. 
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(3) CONFORMING
AMENDMENTS.—Title 31, 
United States Code, is amended— 
(A) in section 5321(a)— 
(i) in paragraph (1), by striking ‘‘sec-
tions 5314 and 5315’’ each place it ap-
pears and inserting ‘‘sections 5314, 5315, 
and 5333’’; and 
(ii) in paragraph (6), by inserting 
‘‘(except 
section 
5333)’’ 
after 
‘‘sub-
chapter’’ each place it appears; and 
(B) in section 5322, by striking ‘‘section 
5315 or 5324’’ each place it appears and insert-
ing ‘‘section 5315, 5324, or 5333’’. 
(4) TABLE OF CONTENTS.—The table of con-
tents of chapter 53 of title 31, United States Code, 
is amended by inserting after the item relating to 
section 5332 the following: 
‘‘5333. Transparent incorporation practices.’’. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $20,000,000 for each of fis-
cal years 2021 and 2022 to the Financial Crimes Enforce-
ment Network to carry out this division and the amend-
ments made by this division. 
(c) FEDERAL CONTRACTORS.—Not later than the 
first day of the first full fiscal year beginning at least 1 
year after the date of the enactment of this Act, the Ad-
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ministrator for Federal Procurement Policy shall revise 
the Federal Acquisition Regulation maintained under sec-
tion 1303(a)(1) of title 41, United States Code, to require 
any contractor or subcontractor who is subject to the re-
quirement to disclose beneficial ownership information 
under section 5333 of title 31, United States Code, to pro-
vide the information required to be disclosed under such 
section to the Federal Government as part of any bid or 
proposal for a contract with a value threshold in excess 
of the simplified acquisition threshold under section 134 
of title 41, United States Code. 
SEC. 6004. STUDIES AND REPORTS. 
(a) UPDATING OF BENEFICIAL OWNERSHIP INFOR-
MATION.— 
(1) STUDY.—The Secretary of the Treasury, in 
consultation with the Attorney General of the United 
States, shall conduct a study to evaluate— 
(A) the necessity of a requirement for cor-
porations and limited liability companies to up-
date the list of their beneficial owners within a 
specified amount of time after the date of any 
change in the list of beneficial owners or the in-
formation required to be provided relating to 
each beneficial owner, taking into account the 
annual 
filings 
required 
under 
section 
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5333(a)(1)(B)(i) of title 31, United States 
Code, and the information contained in such 
annual filings; and 
(B) the burden that a requirement to up-
date the list of beneficial owners within a speci-
fied period of time after a change in such list 
of beneficial owners would impose on corpora-
tions and limited liability companies. 
(2) REPORT.—Not later than 1 year after the 
date of enactment of this Act, the Secretary of the 
Treasury shall submit a report on the study required 
under paragraph (1) to the Committee on Financial 
Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs 
of the Senate. 
(3) PUBLIC COMMENT.—The Secretary of the 
Treasury shall seek and consider public input, com-
ments, and data in order to conduct the study re-
quired under subparagraph paragraph (1). 
(b) OTHER LEGAL ENTITIES.—Not later than 2 
years after the date of enactment of this Act, the Comp-
troller General of the United States shall conduct a study 
and submit to the Congress a report— 
(1) identifying each State or Indian Tribe that 
has procedures that enable persons to form or reg-
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ister under the laws of the State or Indian Tribe 
partnerships, trusts, or other legal entities, and the 
nature of those procedures; 
(2) identifying each State or Indian Tribe that 
requires persons seeking to form or register partner-
ships, trusts, or other legal entities under the laws 
of the State or Indian Tribe to provide information 
about the beneficial owners (as that term is defined 
in section 5333(d)(1) of title 31, United States 
Code, as added by this division) or beneficiaries of 
such entities, and the nature of the required infor-
mation; 
(3) evaluating whether the lack of available 
beneficial ownership information for partnerships, 
trusts, or other legal entities— 
(A) raises concerns about the involvement 
of such entities in terrorism, money laundering, 
tax evasion, securities fraud, or other mis-
conduct; 
(B) has impeded investigations into enti-
ties suspected of such misconduct; and 
(C) increases the costs to financial institu-
tions of complying with due diligence require-
ments imposed under the Bank Secrecy Act, the 
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USA PATRIOT Act, or other applicable Fed-
eral, State, or Tribal law; and 
(4) evaluating whether the failure of the United 
States to require beneficial ownership information 
for partnerships and trusts formed or registered in 
the United States has elicited international criticism 
and what steps, if any, the United States has taken 
or is planning to take in response. 
(c) EFFECTIVENESS
OF
INCORPORATION
PRAC-
TICES.—Not later than 5 years after the date of enact-
ment of this Act, the Comptroller General of the United 
States shall conduct a study and submit to the Congress 
a report assessing the effectiveness of incorporation prac-
tices implemented under this division and the amendments 
made by this division in— 
(1) providing law enforcement agencies with 
prompt access to reliable, useful, and complete bene-
ficial ownership information; and 
(2) strengthening the capability of law enforce-
ment agencies to combat incorporation abuses, civil 
and criminal misconduct, and detect, prevent, or 
punish terrorism, money laundering, tax evasion, or 
other misconduct. 
(d) ANNUAL REPORT ON BENEFICIAL OWNERSHIP 
INFORMATION.— 
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(1) REPORT.—The Secretary of the Treasury 
shall issue an annual report to the Committee on Fi-
nancial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate with respect to the beneficial 
ownership information collected pursuant to section 
5333 of title 31, United States Code, that con-
tains— 
(A) aggregate data on the number of bene-
ficial owners per reporting corporation or lim-
ited liability company; 
(B) the industries or type of business of 
each reporting corporation or limited liability 
company; and 
(C) the locations of the beneficial owners. 
(2) PRIVACY.—In issuing reports under para-
graph (1), the Secretary shall not reveal the identi-
ties of beneficial owners or names of the reporting 
corporations or limited liability companies. 
SEC. 6005. DEFINITIONS. 
In this division, the terms ‘‘Bank Secrecy Act’’, ‘‘ben-
eficial owner’’, ‘‘corporation’’, and ‘‘limited liability com-
pany’’ have the meaning given those terms, respectively, 
under section 5333(d) of title 31, United States Code. 
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DIVISION G—COUNTER ACT OF 
2019 
SEC. 7001. SHORT TITLE. 
This division may be cited as the ‘‘Coordinating Over-
sight, Upgrading and Innovating Technology, and Exam-
iner Reform Act of 2019’’ or the ‘‘COUNTER Act of 
2019’’. 
SEC. 7002. BANK SECRECY ACT DEFINITION. 
Section 5312(a) of title 31, United States Code, is 
amended by adding at the end the following: 
‘‘(7) BANK SECRECY ACT.—The term ‘Bank Se-
crecy Act’ means— 
‘‘(A) section 21 of the Federal Deposit In-
surance Act; 
‘‘(B) chapter 2 of title I of Public Law 91– 
508; and 
‘‘(C) this subchapter.’’. 
TITLE I—STRENGTHENING 
TREASURY 
SEC. 7101. IMPROVING THE DEFINITION AND PURPOSE OF 
THE BANK SECRECY ACT. 
Section 5311 of title 31, United States Code, is 
amended— 
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(1) by inserting ‘‘to protect our national secu-
rity, to safeguard the integrity of the international 
financial system, and’’ before ‘‘to require’’; and 
(2) by inserting ‘‘to law enforcement and’’ be-
fore ‘‘in criminal’’. 
SEC. 7102. SPECIAL HIRING AUTHORITY. 
(a) IN GENERAL.—Section 310 of title 31, United 
States Code, is amended— 
(1) by redesignating subsection (d) as sub-
section (g); and 
(2) by inserting after subsection (c) the fol-
lowing: 
‘‘(d) SPECIAL HIRING AUTHORITY.— 
‘‘(1) IN
GENERAL.—The Secretary of the 
Treasury may appoint, without regard to the provi-
sions of sections 3309 through 3318 of title 5, can-
didates directly to positions in the competitive serv-
ice (as defined in section 2102 of that title) in 
FinCEN. 
‘‘(2) PRIMARY
RESPONSIBILITIES.—The pri-
mary responsibility of candidates appointed pursuant 
to paragraph (1) shall be to provide substantive sup-
port in support of the duties described in subpara-
graphs (A), (B), (E), and (F) of subsection (b)(2).’’. 
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(b) REPORT.—Not later than 360 days after the date 
of enactment of this Act, and every year thereafter for 
7 years, the Director of the Financial Crimes Enforcement 
Network shall submit a report to the Committee on Finan-
cial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of 
the Senate that includes— 
(1) the number of new employees hired since 
the preceding report through the authorities de-
scribed under section 310(d) of title 31, United 
States Code, along with position titles and associ-
ated pay grades for such hires; and 
(2) a copy of any Federal Government survey of 
staff perspectives at the Office of Terrorism and Fi-
nancial Intelligence, including findings regarding the 
Office and the Financial Crimes Enforcement Net-
work from the most recently administered Federal 
Employee Viewpoint Survey. 
SEC. 7103. CIVIL LIBERTIES AND PRIVACY OFFICER. 
(a) APPOINTMENT OF OFFICERS.—Not later than the 
end of the 3-month period beginning on the date of enact-
ment of this Act, a Civil Liberties and Privacy Officer 
shall be appointed, from among individuals who are attor-
neys with expertise in data privacy laws— 
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(1) within each Federal functional regulator, by 
the head of the Federal functional regulator; 
(2) within the Financial Crimes Enforcement 
Network, by the Secretary of the Treasury; and 
(3) within the Internal Revenue Service Small 
Business and Self-Employed Tax Center, by the Sec-
retary of the Treasury. 
(b) DUTIES.—Each Civil Liberties and Privacy Offi-
cer shall, with respect to the applicable regulator, Net-
work, or Center within which the Officer is located— 
(1) be consulted each time Bank Secrecy Act or 
anti-money laundering regulations affecting civil lib-
erties or privacy are developed or reviewed; 
(2) be consulted on information-sharing pro-
grams, including those that provide access to person-
ally identifiable information; 
(3) ensure coordination and clarity between 
anti-money laundering, civil liberties, and privacy 
regulations; 
(4) contribute to the evaluation and regulation 
of new technologies that may strengthen data pri-
vacy and the protection of personally identifiable in-
formation collected by each Federal functional regu-
lator; and 
(5) develop metrics of program success. 
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(c) DEFINITIONS.—For purposes of this section: 
(1) BANK SECRECY ACT.—The term ‘‘Bank Se-
crecy Act’’ has the meaning given that term under 
section 5312 of title 31, United States Code. 
(2) FEDERAL FUNCTIONAL REGULATOR.—The 
term ‘‘Federal functional regulator’’ means the 
Board of Governors of the Federal Reserve System, 
the Comptroller of the Currency, the Federal De-
posit Insurance Corporation, the National Credit 
Union Administration, the Securities and Exchange 
Commission, and the Commodity Futures Trading 
Commission. 
SEC. 7104. CIVIL LIBERTIES AND PRIVACY COUNCIL. 
(a) ESTABLISHMENT.—There is established the Civil 
Liberties and Privacy Council (hereinafter in this section 
referred to as the ‘‘Council’’), which shall consist of the 
Civil Liberties and Privacy Officers appointed pursuant to 
section 7103. 
(b) CHAIR.—The Director of the Financial Crimes 
Enforcement Network shall serve as the Chair of the 
Council. 
(c) DUTY.—The members of the Council shall coordi-
nate on activities related to their duties as Civil Liberties 
Privacy Officers, but may not supplant the individual 
agency determinations on civil liberties and privacy. 
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(d) MEETINGS.—The meetings of the Council— 
(1) shall be at the call of the Chair, but in no 
case may the Council meet less than quarterly; 
(2) may include open and partially closed ses-
sions, as determined necessary by the Council; and 
(3) shall include participation by public and pri-
vate entities, law enforcement agencies, and a rep-
resentative of State bank supervisors (as defined 
under section 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813)). 
(e) REPORT.—The Chair of the Council shall issue 
an annual report to the Congress on the program and pol-
icy activities, including the success of programs as meas-
ured by metrics of program success developed pursuant 
to section 7103(b)(5), of the Council during the previous 
year and any legislative recommendations that the Council 
may have. 
(f) NONAPPLICABILITY OF FACA.—The Federal Ad-
visory Committee Act (5 U.S.C. App.) shall not apply to 
the Council. 
SEC. 7105. INTERNATIONAL COORDINATION. 
(a) IN GENERAL.—The Secretary of the Treasury 
shall work with the Secretary’s foreign counterparts, in-
cluding through the Financial Action Task Force, the 
International Monetary Fund, the World Bank, the 
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Egmont Group of Financial Intelligence Units, the 
Organisation for Economic Co-operation and Develop-
ment, and the United Nations, to promote stronger anti- 
money laundering frameworks and enforcement of anti- 
money laundering laws. 
(b) COOPERATION GOAL.—In carrying out subsection 
(a), the Secretary of the Treasury may work directly with 
foreign counterparts and other organizations where the 
goal of cooperation can best be met. 
(c) INTERNATIONAL MONETARY FUND.— 
(1) SUPPORT FOR CAPACITY OF THE INTER-
NATIONAL
MONETARY
FUND
TO
PREVENT
MONEY 
LAUNDERING
AND
FINANCING
OF
TERRORISM.— 
Title XVI of the International Financial Institutions 
Act (22 U.S.C. 262p et seq.) is amended by adding 
at the end the following: 
‘‘SEC. 1629. SUPPORT FOR CAPACITY OF THE INTER-
NATIONAL MONETARY FUND TO PREVENT 
MONEY LAUNDERING AND FINANCING OF 
TERRORISM. 
‘‘The Secretary of the Treasury shall instruct the 
United States Executive Director at the International 
Monetary Fund to support the increased use of the admin-
istrative budget of the Fund for technical assistance that 
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strengthens the capacity of Fund members to prevent 
money laundering and the financing of terrorism.’’. 
(2) NATIONAL ADVISORY COUNCIL REPORT TO 
CONGRESS.—The Chairman of the National Advisory 
Council on International Monetary and Financial 
Policies shall include in the report required by sec-
tion 1701 of the International Financial Institutions 
Act (22 U.S.C. 262r) a description of— 
(A) the activities of the International Mon-
etary Fund in the most recently completed fis-
cal year to provide technical assistance that 
strengthens the capacity of Fund members to 
prevent money laundering and the financing of 
terrorism, and the effectiveness of the assist-
ance; and 
(B) the efficacy of efforts by the United 
States to support such technical assistance 
through the use of the Fund’s administrative 
budget, and the level of such support. 
(3) SUNSET.—Effective on the date that is the 
end of the 4-year period beginning on the date of en-
actment of this Act, section 1629 of the Inter-
national Financial Institutions Act, as added by 
paragraph (1), is repealed. 
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SEC. 7106. TREASURY ATTACHE´ S PROGRAM. 
(a) IN GENERAL.—Title 31, United States Code, is 
amended by inserting after section 315 the following: 
‘‘§ 316. Treasury Attache´s Program 
‘‘(a) IN GENERAL.—There is established the Treas-
ury Attache´s Program, under which the Secretary of the 
Treasury shall appoint employees of the Department of 
the Treasury, after nomination by the Director of the Fi-
nancial Crimes Enforcement Network (‘FinCEN’), as a 
Treasury attache´, who shall— 
‘‘(1) be knowledgeable about the Bank Secrecy 
Act and anti-money laundering issues; 
‘‘(2) be co-located in a United States embassy; 
‘‘(3) perform outreach with respect to Bank Se-
crecy Act and anti-money laundering issues; 
‘‘(4) establish and maintain relationships with 
foreign counterparts, including employees of min-
istries of finance, central banks, and other relevant 
official entities; 
‘‘(5) conduct outreach to local and foreign fi-
nancial institutions and other commercial actors, in-
cluding— 
‘‘(A) 
information 
exchanges 
through 
FinCEN and FinCEN programs; and 
‘‘(B) soliciting buy-in and cooperation for 
the implementation of— 
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‘‘(i) United States and multilateral 
sanctions; and 
‘‘(ii) international standards on anti- 
money laundering and the countering of 
the financing of terrorism; and 
‘‘(6) perform such other actions as the Sec-
retary determines appropriate. 
‘‘(b) NUMBER OF ATTACHE´S.—The number of Treas-
ury attache´s appointed under this section at any one time 
shall be not fewer than 6 more employees than the number 
of employees of the Department of the Treasury serving 
as Treasury attache´s on March 1, 2020. 
‘‘(c) COMPENSATION.—Each Treasury attache´ ap-
pointed under this section and located at a United States 
embassy shall receive compensation at the higher of— 
‘‘(1) the rate of compensation provided to a 
Foreign Service officer at a comparable career level 
serving at the same embassy; or 
‘‘(2) the rate of compensation the Treasury 
attache´ would otherwise have received, absent the 
application of this subsection. 
‘‘(d) BANK SECRECY ACT DEFINED.—In this section, 
the term ‘Bank Secrecy Act’ has the meaning given that 
term under section 5312.’’. 
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(b) CLERICAL AMENDMENT.—The table of contents 
for chapter 3 of title 31, United States Code, is amended 
by inserting after the item relating to section 315 the fol-
lowing: 
‘‘316. Treasury Attache´s Program.’’. 
SEC. 7107. INCREASING TECHNICAL ASSISTANCE FOR 
INTERNATIONAL COOPERATION. 
(a) IN GENERAL.—There is authorized to be appro-
priated for each of fiscal years 2021 through 2025 to the 
Secretary of the Treasury for purposes of providing tech-
nical assistance that promotes compliance with inter-
national standards and best practices, including in par-
ticular those aimed at the establishment of effective anti- 
money laundering and countering the financing of ter-
rorism regimes, in an amount equal to twice the amount 
authorized for such purpose for fiscal year 2020. 
(b) ACTIVITY AND EVALUATION REPORT.—Not later 
than 360 days after enactment of this Act, and every year 
thereafter for 5 years, the Secretary of the Treasury shall 
issue a report to the Congress on the assistance (as de-
scribed under subsection (a)) of the Office of Technical 
Assistance of the Department of the Treasury con-
taining— 
(1) a narrative detailing the strategic goals of 
the Office in the previous year, with an explanation 
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of how technical assistance provided in the previous 
year advances the goals; 
(2) a description of technical assistance pro-
vided by the Office in the previous year, including 
the objectives and delivery methods of the assist-
ance; 
(3) a list of beneficiaries and providers (other 
than Office staff) of the technical assistance; 
(4) a description of how technical assistance 
provided by the Office complements, duplicates, or 
otherwise affects or is affected by technical assist-
ance provided by the international financial institu-
tions (as defined under section 1701(c) of the Inter-
national Financial Institutions Act); and 
(5) a copy of any Federal Government survey of 
staff perspectives at the Office of Technical Assist-
ance, including any findings regarding the Office 
from the most recently administered Federal Em-
ployee Viewpoint Survey. 
SEC. 7108. FINCEN DOMESTIC LIAISONS. 
Section 310 of title 31, United States Code, as 
amended by section 7102, is further amended by inserting 
after subsection (d) the following: 
‘‘(e) FINCEN DOMESTIC LIAISONS.— 
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‘‘(1) IN GENERAL.—The Director of FinCEN 
shall appoint at least 6 senior FinCEN employees as 
FinCEN Domestic Liaisons, who shall— 
‘‘(A) each be assigned to focus on a spe-
cific region of the United States; 
‘‘(B) be located at an office in such region 
(or co-located at an office of the Board of Gov-
ernors of the Federal Reserve System in such 
region); and 
‘‘(C) perform outreach to BSA officers at 
financial institutions (including non-bank finan-
cial institutions) and persons who are not finan-
cial institutions, especially with respect to ac-
tions taken by FinCEN that require specific ac-
tions by, or have specific effects on, such insti-
tutions or persons, as determined by the Direc-
tor. 
‘‘(2) DEFINITIONS.—In this subsection: 
‘‘(A) BSA OFFICER.—The term ‘BSA offi-
cer’ means an employee of a financial institu-
tion whose primary job responsibility involves 
compliance with the Bank Secrecy Act, as such 
term is defined under section 5312. 
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‘‘(B) FINANCIAL INSTITUTION.—The term 
‘financial institution’ has the meaning given 
that term under section 5312.’’. 
SEC. 7109. FINCEN EXCHANGE. 
Section 310 of title 31, United States Code, as 
amended by section 7108, is further amended by inserting 
after subsection (e) the following: 
‘‘(f) FINCEN EXCHANGE.— 
‘‘(1) 
ESTABLISHMENT.—The 
FinCEN 
Ex-
change is hereby established within FinCEN, which 
shall consist of the FinCEN Exchange program of 
FinCEN in existence on the day before the date of 
enactment of this paragraph. 
‘‘(2) PURPOSE.—The FinCEN Exchange shall 
facilitate a voluntary public-private information 
sharing partnership among law enforcement, finan-
cial institutions, and FinCEN to— 
‘‘(A) effectively and efficiently combat 
money laundering, terrorism financing, orga-
nized crime, and other financial crimes; 
‘‘(B) protect the financial system from il-
licit use; and 
‘‘(C) promote national security. 
‘‘(3) REPORT.— 
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‘‘(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this subsection, 
and annually thereafter for the next 5 years, 
the Secretary of the Treasury shall submit to 
the Committee on Financial Services of the 
House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the 
Senate a report containing— 
‘‘(i) an analysis of the efforts under-
taken by the FinCEN Exchange and the 
results of such efforts; 
‘‘(ii) an analysis of the extent and ef-
fectiveness of the FinCEN Exchange, in-
cluding any benefits realized by law en-
forcement from partnership with financial 
institutions; and 
‘‘(iii) any legislative, administrative, 
or other recommendations the Secretary 
may have to strengthen FinCEN Exchange 
efforts. 
‘‘(B) CLASSIFIED
ANNEX.—Each report 
under subparagraph (A) may include a classi-
fied annex. 
‘‘(4) INFORMATION SHARING REQUIREMENT.— 
Information shared pursuant to this subsection shall 
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be shared in compliance with all other applicable 
Federal laws and regulations. 
‘‘(5) RULE OF CONSTRUCTION.—Nothing under 
this subsection may be construed to create new in-
formation sharing authorities related to the Bank 
Secrecy Act (as such term is defined under section 
5312 of title 31, United States Code). 
‘‘(6) FINANCIAL
INSTITUTION
DEFINED.—In 
this subsection, the term ‘financial institution’ has 
the meaning given that term under section 5312.’’. 
SEC. 7110. STUDY AND STRATEGY ON TRADE-BASED MONEY 
LAUNDERING. 
(a) STUDY.—The Secretary of the Treasury shall 
carry out a study, in consultation with appropriate private 
sector stakeholders and Federal departments and agen-
cies, on trade-based money laundering. 
(b) REPORT.—Not later than the end of the 1-year 
period beginning on the date of the enactment of this Act, 
the Secretary shall issue a report to the Congress con-
taining— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
(2) proposed strategies to combat trade-based 
money laundering. 
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(c) CLASSIFIED ANNEX.—The report required under 
this section may include a classified annex. 
(d) CONTRACTING AUTHORITY.—The Secretary may 
contract with a private third-party to carry out the study 
required under this section. The authority of the Secretary 
to enter into contracts under this subsection shall be in 
effect for each fiscal year only to the extent and in the 
amounts as are provided in advance in appropriations 
Acts. 
SEC. 7111. STUDY AND STRATEGY ON DE-RISKING. 
(a) REVIEW.—The Secretary of the Treasury, in con-
sultation with appropriate private sector stakeholders, ex-
aminers, the Federal functional regulators (as defined 
under section 7103), State bank supervisors, and other 
relevant stakeholders, shall undertake a formal review 
of— 
(1) any adverse consequences of financial insti-
tutions de-risking entire categories of relationships, 
including charities, embassy accounts, money serv-
ices 
businesses 
(as 
defined 
under 
section 
1010.100(ff) of title 31, Code of Federal Regula-
tions) and their agents, countries, international and 
domestic regions, and respondent banks; 
(2) the reasons why financial institutions are 
engaging in de-risking; 
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(3) the association with and effects of de-risk-
ing on money laundering and financial crime actors 
and activities; 
(4) the most appropriate ways to promote fi-
nancial inclusion, particularly with respect to devel-
oping countries, while maintaining compliance with 
the Bank Secrecy Act, including an assessment of 
policy options to— 
(A) more effectively tailor Federal actions 
and penalties to the size of foreign financial in-
stitutions and any capacity limitations of for-
eign governments; and 
(B) reduce compliance costs that may lead 
to the adverse consequences described in para-
graph (1); 
(5) formal and informal feedback provided by 
examiners that may have led to de-risking; 
(6) the relationship between resources dedicated 
to compliance and overall sophistication of compli-
ance efforts at entities that may be experiencing de- 
risking versus those that have not experienced de- 
risking; and 
(7) any best practices from the private sector 
that facilitate correspondent bank relationships. 
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(b) DE-RISKING STRATEGY.—The Secretary shall de-
velop a strategy to reduce de-risking and adverse con-
sequences related to de-risking. 
(c) REPORT.—Not later than the end of the 1-year 
period beginning on the date of the enactment of this Act, 
the Secretary, in consultation with the Federal functional 
regulators, State bank supervisors, and other relevant 
stakeholders, shall issue a report to the Congress con-
taining— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
(2) the strategy developed pursuant to sub-
section (b). 
(d) DEFINITIONS.—In this section: 
(1) 
DE-RISKING.—The 
term 
‘‘de-risking’’ 
means the wholesale closing of accounts or limiting 
of financial services for a category of customer due 
to unsubstantiated risk as it relates to compliance 
with the Bank Secrecy Act. 
(2) BSA TERMS.—The terms ‘‘Bank Secrecy 
Act’’ and ‘‘financial institution’’ have the meaning 
given those terms, respectively, under section 5312 
off title 31, United States Code. 
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(3) STATE
BANK
SUPERVISOR.—The term 
‘‘State bank supervisor’’ has the meaning given that 
term under section 3 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813). 
SEC. 7112. AML EXAMINATION AUTHORITY DELEGATION 
STUDY. 
(a) STUDY.—The Secretary of the Treasury, in con-
sultation with State bank supervisors (as defined under 
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
1813)) and other relevant stakeholders, shall carry out a 
study on the Secretary’s delegation of examination author-
ity under the Bank Secrecy Act, including— 
(1) an evaluation of the efficacy of the delega-
tion, especially with respect to the mission of the 
Bank Secrecy Act; 
(2) whether the delegated agencies have appro-
priate resources to perform their delegated respon-
sibilities; and 
(3) whether the examiners in delegated agencies 
have sufficient training and support to perform their 
responsibilities. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Secretary of the Treasury 
shall submit to the Committee on Financial Services of 
the House of Representatives and the Committee on 
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Banking, Housing, and Urban Affairs of the Senate a re-
port containing— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
(2) recommendations to improve the efficacy of 
delegation authority, including the potential for de- 
delegation of any or all such authority where it may 
be appropriate. 
(c) BANK
SECRECY
ACT
DEFINED.—The term 
‘‘Bank Secrecy Act’’ has the meaning given that term 
under section 5312 of title 31, United States Code. 
SEC. 7113. STUDY AND STRATEGY ON CHINESE MONEY 
LAUNDERING. 
(a) STUDY.—The Secretary of the Treasury shall 
carry out a study on the extent and effect of Chinese 
money laundering activities in the United States, including 
territories and possessions of the United States, and 
worldwide. 
(b) STRATEGY TO COMBAT CHINESE MONEY LAUN-
DERING.—Upon the completion of the study required 
under subsection (a), the Secretary shall, in consultation 
with such other Federal departments and agencies as the 
Secretary determines appropriate, develop a strategy to 
combat Chinese money laundering activities. 
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(c) REPORT.—Not later than the end of the 1-year 
period beginning on the date of enactment of this Act, the 
Secretary of the Treasury shall issue a report to Congress 
containing— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
(2) the strategy developed under subsection (b). 
TITLE II—IMPROVING AML/CFT 
OVERSIGHT 
SEC. 7201. PILOT PROGRAM ON SHARING OF SUSPICIOUS 
ACTIVITY REPORTS WITHIN A FINANCIAL 
GROUP. 
(a) IN GENERAL.— 
(1) SHARING WITH FOREIGN BRANCHES AND 
AFFILIATES.—Section 5318(g) of title 31, United 
States Code, is amended by adding at the end the 
following: 
‘‘(5) PILOT PROGRAM ON SHARING WITH FOR-
EIGN BRANCHES, SUBSIDIARIES, AND AFFILIATES.— 
‘‘(A) IN GENERAL.—The Secretary of the 
Treasury shall issue rules establishing the pilot 
program described under subparagraph (B), 
subject to such controls and restrictions as the 
Director of the Financial Crimes Enforcement 
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‘‘(A) is derived from the independent 
knowledge or analysis of a whistleblower; 
‘‘(B) is not known to FinCEN from any 
other source, unless the whistleblower is the 
original source of the information; and 
‘‘(C) is not exclusively derived from an al-
legation made in a judicial or administrative 
hearing, in a governmental report, hearing, 
audit, or investigation, or from the news media, 
unless the whistleblower is a source of the infor-
mation. 
‘‘(5) RELATED ACTION.—The term ‘related ac-
tion’, when used with respect to any judicial or ad-
ministrative action brought by FinCEN, means any 
judicial or administrative action that is based upon 
original information provided by a whistleblower that 
led to the successful enforcement of the action. 
‘‘(6) SECRETARY.—The term ‘Secretary’ means 
the Secretary of the Treasury. 
‘‘(7) WHISTLEBLOWER.—The term ‘whistle-
blower’ means any individual who provides, or 2 or 
more individuals acting jointly who provide, informa-
tion relating to a violation of laws enforced by 
FinCEN, in a manner established, by rule or regula-
tion, by FinCEN. 
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