Bank Secrecy Act and for whom such submis-
sion would be contrary to its requirements; or 
‘‘(D) to any whistleblower who fails to sub-
mit information to FinCEN in such form as the 
Secretary may, by rule, require. 
‘‘(3) STATEMENT OF REASONS.—For any deci-
sion granting or denying an award, the Secretary 
shall provide to the whistleblower a statement of rea-
sons that includes findings of fact and conclusions of 
law for all material issues. 
‘‘(d) REPRESENTATION.— 
‘‘(1) 
PERMITTED
REPRESENTATION.—Any 
whistleblower who makes a claim for an award under 
subsection (b) may be represented by counsel. 
‘‘(2) REQUIRED REPRESENTATION.— 
‘‘(A) IN
GENERAL.—Any whistleblower 
who anonymously makes a claim for an award 
under subsection (b) shall be represented by 
counsel if the whistleblower anonymously sub-
mits the information upon which the claim is 
based. 
‘‘(B) DISCLOSURE OF IDENTITY.—Prior to 
the payment of an award, a whistleblower shall 
disclose their identity and provide such other
information as the Secretary may require, di-
rectly or through counsel for the whistleblower. 
‘‘(e) APPEALS.—Any determination made under this 
section, including whether, to whom, or in what amount 
to make awards, shall be in the discretion of the Secretary. 
Any such determination, except the determination of the 
amount of an award if the award was made in accordance 
with subsection (b), may be appealed to the appropriate 
court of appeals of the United States not more than 30 
days after the determination is issued by the Secretary. 
The court shall review the determination made by the Sec-
retary in accordance with section 706 of title 5. 
‘‘(f) EMPLOYEE PROTECTIONS.—The Secretary of 
the Treasury shall issue regulations protecting a whistle-
blower from retaliation, which shall be as close as prac-
ticable to the employee protections provided for under sec-
tion 1057 of the Consumer Financial Protection Act of 
2010.’’; and 
(2) in the table of contents for such chapter, by 
inserting after the item relating to section 5323 the 
following new item: 
‘‘5323A. Whistleblower incentives.’’.
SEC. 207. CERTAIN VIOLATORS BARRED FROM SERVING ON 
BOARDS OF UNITED STATES FINANCIAL IN-
STITUTIONS. 
Section 5321 of title 31, United States Code, is 
amended by adding at the end the following: 
‘‘(f) CERTAIN VIOLATORS BARRED FROM SERVING 
ON BOARDS OF UNITED STATES FINANCIAL INSTITU-
TIONS.— 
‘‘(1) IN
GENERAL.—An individual found to 
have committed an egregious violation of a provision 
of (or rule issued under) the Bank Secrecy Act shall 
be barred from serving on the board of directors of 
a United States financial institution for a 10-year 
period beginning on the date of such finding. 
‘‘(2) EGREGIOUS
VIOLATION
DEFINED.—With 
respect to an individual, the term ‘egregious viola-
tion’ means— 
‘‘(A) a felony criminal violation for which 
the individual was convicted; and 
‘‘(B) a civil violation where the individual 
willfully committed such violation and the viola-
tion facilitated money laundering or the financ-
ing of terrorism.’’.
SEC. 208. ADDITIONAL DAMAGES FOR REPEAT BANK SE-
CRECY ACT VIOLATORS. 
(a) IN GENERAL.—Section 5321 of title 31, United 
States Code, as amended by section 208, is further amend-
ed by adding at the end the following: 
‘‘(g) ADDITIONAL DAMAGES
FOR REPEAT VIOLA-
TORS.—In addition to any other fines permitted by this 
section and section 5322, with respect to a person who 
has previously been convicted of a criminal provision of 
(or rule issued under) the Bank Secrecy Act or who has 
admitted, as part of a deferred- or non-prosecution agree-
ment, to having previously committed a violation of a 
criminal provision of (or rule issued under) the Bank Se-
crecy Act, the Secretary may impose an additional civil 
penalty against such person for each additional such viola-
tion in an amount equal to up three times the profit 
gained or loss avoided by such person as a result of the 
violation.’’. 
(b) PROSPECTIVE APPLICATION OF AMENDMENT.— 
For purposes of determining whether a person has com-
mitted a previous violation under section 5321(g) of title 
31, United States Code, such determination shall only in-
clude violations occurring after the date of enactment of 
this Act.
SEC. 209. JUSTICE ANNUAL REPORT ON DEFERRED AND 
NON-PROSECUTION AGREEMENTS. 
(a) ANNUAL REPORT.—The Attorney General shall 
issue an annual report, every year for the 5 years begin-
ning on the date of enactment of this Act, to the Commit-
tees on Financial Services and the Judiciary of the House 
of Representatives and the Committees on Banking, Hous-
ing, and Urban Affairs and the Judiciary of the Senate 
containing— 
(1) a list of deferred prosecution agreements 
and non-prosecution agreements that the Attorney 
General has entered into during the previous year 
with any person with respect to a violation or sus-
pected violation of the Bank Secrecy Act; 
(2) the justification for entering into each such 
agreement; 
(3) the list of factors that were taken into ac-
count in determining that the Attorney General 
should enter into each such agreement; and 
(4) the extent of coordination the Attorney 
General conducted with the Financial Crimes En-
forcement Network prior to entering into each such 
agreement. 
(b) CLASSIFIED ANNEX.—Each report under sub-
section (a) may include a classified annex.
(c) BANK SECRECY ACT DEFINED.—For purposes of 
this section, the term ‘‘Bank Secrecy Act’’ has the mean-
ing given that term under section 5312 of title 31, United 
States Code. 
SEC. 210. RETURN OF PROFITS AND BONUSES. 
(a) IN GENERAL.—Section 5322 of title 31, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(e) RETURN OF PROFITS AND BONUSES.—A person 
convicted of violating a provision of (or rule issued under) 
the Bank Secrecy Act shall— 
‘‘(1) in addition to any other fine under this 
section, be fined in an amount equal to the profit 
gained by such person by reason of such violation, 
as determined by the court; and 
‘‘(2) if such person is an individual who was a 
partner, director, officer, or employee of a financial 
institution at the time the violation occurred, repay 
to such financial institution any bonus paid to such 
individual during the Federal fiscal year in which 
the violation occurred or the Federal fiscal year 
after which the violation occurred.’’. 
(b) RULE
OF
CONSTRUCTION.—The amendment 
made by subsection (a) may not be construed to prohibit 
a financial institution from requiring the repayment of a
bonus paid to a partner, director, officer, or employee if 
the financial institution determines that the partner, di-
rector, officer, or employee engaged in unethical, but non- 
criminal, activities. 
SEC. 211. APPLICATION OF BANK SECRECY ACT TO DEAL-
ERS IN ANTIQUITIES. 
(a) IN GENERAL.—Section 5312(a)(2) of title 31, 
United States Code, is amended— 
(1) in subparagraph (Y), by striking ‘‘or’’ at 
the end; 
(2) by redesignating subparagraph (Z) as sub-
paragraph (AA); and 
(3) by inserting after subsection (Y) the fol-
lowing: 
‘‘(Z) a person trading or acting as an 
intermediary in the trade of antiquities, includ-
ing an advisor, consultant or any other person 
who engages as a business in the solicitation of 
the sale of antiquities; or’’. 
(b) STUDY ON THE FACILITATION OF MONEY LAUN-
DERING AND TERROR FINANCE THROUGH THE TRADE OF 
WORKS OF ART OR ANTIQUITIES.— 
(1) STUDY.—The Secretary of the Treasury, in 
coordination with Federal Bureau of Investigation, 
the Attorney General, and Homeland Security Inves-
tigations, shall perform a study on the facilitation of 
money laundering and terror finance through the 
trade of works of art or antiquities, including an 
analysis of— 
(A) the extent to which the facilitation of 
money laundering and terror finance through 
the trade of works of art or antiquities may 
enter or affect the financial system of the 
United States, including any qualitative data or 
statistics; 
(B) whether thresholds and definitions 
should apply in determining which entities to 
regulate; 
(C) an evaluation of which markets, by 
size, entity type, domestic or international geo-
graphical locations, or otherwise, should be sub-
ject to regulations, but only to the extent such 
markets are not already required to report on 
the trade of works of art or antiquities to the 
Federal Government; 
(D) an evaluation of whether certain ex-
emptions should apply; and 
(E) any other points of study or analysis 
the Secretary determines necessary or appro-
priate.
(2) REPORT.—Not later than the end of the 
180-day period beginning on the date of the enact-
ment of this Act, the Secretary of the Treasury shall 
issue a report to the Committee on Financial Serv-
ices of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of 
the Senate containing all findings and determina-
tions made in carrying out the study required under 
paragraph (1). 
(c) RULEMAKING.—Not later than the end of the 
180-day period beginning on the date the Secretary issues 
the report required under subsection (b)(2), the Secretary 
shall issue regulations to carry out the amendments made 
by subsection (a). 
SEC. 212. GEOGRAPHIC TARGETING ORDER. 
The Secretary of the Treasury shall issue a geo-
graphic targeting order, similar to the order issued by the 
Financial Crimes Enforcement Network on November 15, 
2018, that— 
(1) applies to commercial real estate to the 
same extent, with the exception of having the same 
thresholds, as the order issued by FinCEN on No-
vember 15, 2018, applies to residential real estate; 
and
(2) establishes a specific threshold for commer-
cial real estate. 
SEC. 213. STUDY AND REVISIONS TO CURRENCY TRANS-
ACTION REPORTS AND SUSPICIOUS ACTIVITY 
REPORTS. 
(a) CURRENCY TRANSACTION REPORTS.— 
(1) CTR INDEXED FOR INFLATION.— 
(A) IN GENERAL.—Every 5 years after the 
date of enactment of this Act, the Secretary of 
the Treasury shall revise regulations issued 
with respect to section 5313 of title 31, United 
States Code, to update each $10,000 threshold 
amount in such regulation to reflect the change 
in the Consumer Price Index for All Urban 
Consumers published by the Department of 
Labor, rounded to the nearest $100. For pur-
poses of calculating the change described in the 
previous sentence, the Secretary shall use 
$10,000 as the base amount and the date of en-
actment of this Act as the base date. 
(B) EXCEPTION.—Notwithstanding sub-
paragraph (A), the Secretary may make appro-
priate adjustments to the threshold amounts 
described under subparagraph (A) in high-risk 
areas (e.g., High Intensity Financial Crime
Areas or HIFCAs), if the Secretary has demon-
strable evidence that shows a threshold raise 
would increase serious crimes, such as traf-
ficking, or endanger national security. 
(2) GAO CTR STUDY.— 
(A) STUDY.—The Comptroller General of 
the United States shall carry out a study of 
currency transaction reports. Such study shall 
include— 
(i) a review (carried out in consulta-
tion with the Secretary of the Treasury, 
the Financial Crimes Enforcement Net-
work, the United States Attorney General, 
the State Attorneys General, and State, 
Tribal, and local law enforcement) of the 
effectiveness of the current currency trans-
action reporting regime; 
(ii) an analysis of the importance of 
currency transaction reports to law en-
forcement; and 
(iii) an analysis of the effects of rais-
ing the currency transaction report thresh-
old. 
(B) REPORT.—Not later than the end of 
the 1-year period beginning on the date of en-
actment of this Act, the Comptroller General 
shall issue a report to the Secretary of the 
Treasury and the Congress containing— 
(i) all findings and determinations 
made in carrying out the study required 
under subparagraph (A); and 
(ii) recommendations for improving 
the current currency transaction reporting 
regime. 
(b) MODIFIED SARS STUDY AND DESIGN.— 
(1) STUDY.—The Director of the Financial 
Crimes Enforcement Network shall carry out a 
study, in consultation with industry stakeholders (in-
cluding 
money 
services 
businesses, 
community 
banks, and credit unions), the Federal functional 
regulators, State bank supervisors, and law enforce-
ment, of the design of a modified suspicious activity 
report form for certain customers and activities. 
Such study shall include— 
(A) an examination of appropriate optimal 
SARs thresholds to determine the level at which 
a modified SARs form could be employed; 
(B) an evaluation of which customers or 
transactions would be appropriate for a modi-
fied SAR, including—
(i) seasoned business customers; 
(ii) financial technology (Fintech) 
firms; 
(iii) structuring transactions; and 
(iv) any other customer or transaction 
that may be appropriate for a modified 
SAR; and 
(C) an analysis of the most effective meth-
ods to reduce the regulatory burden imposed on 
financial institutions in complying with the 
Bank Secrecy Act, including an analysis of the 
effect of— 
(i) modifying thresholds; 
(ii) shortening forms; 
(iii) combining Bank Secrecy Act 
forms; 
(iv) filing reports in periodic batches; 
and 
(v) any other method that may reduce 
the regulatory burden. 
(2) STUDY CONSIDERATIONS.—In carrying out 
the study required under paragraph (1), the Direc-
tor shall seek to balance law enforcement priorities, 
regulatory burdens experienced by financial institu-
tions, and the requirement for reports to have a
‘‘high degree of usefulness to law enforcement’’ 
under the Bank Secrecy Act. 
(3) REPORT.—Not later than the end of the 1- 
year period beginning on the date of enactment of 
this Act, the Director shall issue a report to Con-
gress containing— 
(A) all findings and determinations made 
in carrying out the study required under sub-
section (a); and 
(B) sample designs of modified SARs 
forms based on the study results. 
(4) CONTRACTING AUTHORITY.—The Director 
may contract with a private third-party to carry out 
the study required under this subsection. The au-
thority of the Director to enter into contracts under 
this paragraph shall be in effect for each fiscal year 
only to the extent and in the amounts as are pro-
vided in advance in appropriations Acts. 
(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’’ has the mean-
ing given that term under section 103.
(3) REGULATORY BURDEN.—The term ‘‘regu-
latory burden’’ means the man-hours to complete fil-
ings, cost of data collection and analysis, and other 
considerations of chapter 35 of title 44, United 
States Code (commonly referred to as the Paper-
work Reduction Act). 
(4) SAR; SUSPICIOUS ACTIVITY REPORT.—The 
term ‘‘SAR’’ and ‘‘suspicious activity report’’ mean 
a report of a suspicious transaction under section 
5318(g) of title 31, United States Code. 
(5) SEASONED
BUSINESS
CUSTOMER.—The 
term ‘‘seasoned business customer’’, shall have such 
meaning as the Secretary of the Treasury shall pre-
scribe, which shall include any person that— 
(A) is incorporated or organized under the 
laws of the United States or any State, or is 
registered as, licensed by, or otherwise eligible 
to do business within the United States, a 
State, or political subdivision of a State; 
(B) has maintained an account with a fi-
nancial institution for a length of time as deter-
mined by the Secretary; and 
(C) meet such other requirements as the 
Secretary may determine necessary or appro-
priate.
(6) 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. 214. STREAMLINING REQUIREMENTS FOR CURRENCY 
TRANSACTION REPORTS AND SUSPICIOUS 
ACTIVITY REPORTS. 
(a) REVIEW.—The Secretary of the Treasury (in con-
sultation with Federal law enforcement agencies, the Di-
rector of National Intelligence, the Federal functional reg-
ulators, and State bank supervisors and in consultation 
with other relevant stakeholders) shall undertake a formal 
review of the current financial institution reporting re-
quirements under the Bank Secrecy Act and its imple-
menting regulations and propose changes to further re-
duce regulatory burdens, and ensure that the information 
provided is of a ‘‘high degree of usefulness’’ to law en-
forcement, as set forth under section 5311 of title 31, 
United States Code. 
(b) CONTENTS.—The review required under sub-
section (a) shall include a study of— 
(1) whether the timeframe for filing a sus-
picious activity report should be increased from 30 
days;
(2) whether or not currency transaction report 
and suspicious activity report thresholds should be 
tied to inflation or otherwise periodically be ad-
justed; 
(3) whether the circumstances under which a fi-
nancial institution determines whether to file a ‘‘con-
tinuing suspicious activity report’’, or the processes 
followed by a financial institution in determining 
whether to file a ‘‘continuing suspicious activity re-
port’’ (or both) can be narrowed; 
(4) analyzing the fields designated as ‘‘critical’’ 
on the suspicious activity report form and whether 
the number of fields should be reduced; 
(5) the increased use of exemption provisions to 
reduce currency transaction reports that are of little 
or no value to law enforcement efforts; 
(6) the current financial institution reporting 
requirements under the Bank Secrecy Act and its 
implementing regulations and guidance; and 
(7) such other items as the Secretary deter-
mines appropriate. 
(c) REPORT.—Not later than the end of the 1 year 
period beginning on the date of the enactment of this Act, 
the Secretary of the Treasury, in consultation with law 
enforcement and persons subject to Bank Secrecy Act re-
quirements, shall issue a report to the Congress containing 
all findings and determinations made in carrying out the 
review required under subsection (a). 
(d) DEFINITIONS.—For purposes of this section: 
(1) FEDERAL FUNCTIONAL REGULATOR.—The 
term ‘‘Federal functional regulator’’ has the mean-
ing given that term under section 103. 
(2) 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). 
(3) OTHER TERMS.—The terms ‘‘Bank Secrecy 
Act’’ and ‘‘financial institution’’ have the meaning 
given those terms, respectively, under section 5312 
of title 31, United States Code. 
TITLE III—MODERNIZING THE 
AML SYSTEM 
SEC. 301. ENCOURAGING INNOVATION IN BSA COMPLI-
ANCE. 
Section 5318 of title 31, United States Code, as 
amended by section 202, is further amended by adding 
at the end the following: 
‘‘(p) ENCOURAGING INNOVATION IN COMPLIANCE.— 
‘‘(1) IN GENERAL.—The Federal functional reg-
ulators shall encourage financial institutions to con-
sider, evaluate, and, where appropriate, responsibly 
implement innovative approaches to meet the re-
quirements of this subchapter, including through the 
use of innovation pilot programs. 
‘‘(2) EXEMPTIVE RELIEF.—The Secretary, pur-
suant to subsection (a), may provide exemptions 
from the requirements of this subchapter if the Sec-
retary determines such exemptions are necessary to 
facilitate the testing and potential use of new tech-
nologies and other innovations. 
‘‘(3) RULE
OF
CONSTRUCTION.—This sub-
section may not be construed to require financial in-
stitutions to consider, evaluate, or implement innova-
tive approaches to meet the requirements of the 
Bank Secrecy Act. 
‘‘(4) FEDERAL
FUNCTIONAL
REGULATOR
DE-
FINED.—In this subsection, the term ‘Federal func-
tional regulator’ means the Board of Governors of 
the Federal Reserve System, the Comptroller of the 
Currency, the Federal Deposit Insurance Corpora-
tion, the National Credit Union Administration, the 
Securities and Exchange Commission, and the Com-
modity Futures Trading Commission.’’.
SEC. 302. INNOVATION LABS. 
(a) IN GENERAL.—Subchapter II of chapter 53 of 
title 31, United States Code, is amended by adding at the 
end the following: 
‘‘§ 5333. Innovation Labs 
‘‘(a) ESTABLISHMENT.—There is established within 
the Department of the Treasury and each Federal func-
tional regulator an Innovation Lab. 
‘‘(b) DIRECTOR.—The head of each Innovation Lab 
shall be a Director, to be appointed by the Secretary of 
the Treasury or the head of the Federal functional regu-
lator, as applicable. 
‘‘(c) DUTIES.—The duties of the Innovation Lab 
shall be— 
‘‘(1) to provide outreach to law enforcement 
agencies, State bank supervisors, financial institu-
tions, and other persons (including vendors and 
technology companies) with respect to innovation 
and new technologies that may be used to comply 
with the requirements of the Bank Secrecy Act; 
‘‘(2) to support the implementation of respon-
sible innovation and new technology, in a manner 
that complies with the requirements of the Bank Se-
crecy Act; 
‘‘(3) to explore opportunities for public-private 
partnerships; and
‘‘(4) to develop metrics of success. 
‘‘(d) FINCEN LAB.—The Innovation Lab established 
under subsection (a) within the Department of the Treas-
ury shall be a lab within the Financial Crimes Enforce-
ment Network. 
‘‘(e) DEFINITIONS.—In this subsection: 
‘‘(1) 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 Deposit 
Insurance Corporation, the National Credit Union 
Administration, the Securities and Exchange Com-
mission, and the Commodity Futures Trading Com-
mission. 
‘‘(2) 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).’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
for subchapter II of chapter 53 of title 31, United States 
Code, is amended by adding at the end the following: 
‘‘5333. Innovation Labs.’’. 
SEC. 303. INNOVATION COUNCIL. 
(a) IN GENERAL.—Subchapter II of chapter 53 of 
Title 31, United States Code, as amended by section 302, 
is further amended by adding at the end the following:
‘‘§ 5334. Innovation Council 
‘‘(a) ESTABLISHMENT.—There is established the In-
novation Council (hereinafter in this section referred to 
as the ‘Council’), which shall consist of each Director of 
an Innovation Lab established under section 5334, a rep-
resentative of State bank supervisors (as defined under 
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
1813)), and the Director of the Financial Crimes Enforce-
ment Network. 
‘‘(b) CHAIR.—The Director of the Innovation Lab of 
the Department of the Treasury shall serve as the Chair 
of the Council. 
‘‘(c) DUTY.—The members of the Council shall co-
ordinate on activities related to innovation under the Bank 
Secrecy Act, but may not supplant individual agency de-
terminations on innovation. 
‘‘(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 semi-annually; 
‘‘(2) may include open and closed sessions, as 
determined necessary by the Council; and 
‘‘(3) shall include participation by public and 
private entities and law enforcement agencies. 
‘‘(e) REPORT.—The Council shall issue an annual re-
port, for each of the 7 years beginning on the date of en-
actment of this section, to the Secretary of the Treasury
on the activities of the Council during the previous year, 
including the success of programs as measured by metrics 
of success developed pursuant to section 5334(c)(4), and 
any regulatory or legislative recommendations that the 
Council may have.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
for subchapter II of chapter 53 of title 31, United States 
Code, is amended by adding the end the following: 
‘‘5334. Innovation Council.’’. 
SEC. 304. TESTING METHODS RULEMAKING. 
(a) IN GENERAL.—Section 5318 of title 31, United 
States Code, as amended by section 301, is further amend-
ed by adding at the end the following: 
‘‘(q) TESTING.— 
‘‘(1) IN
GENERAL.—The Secretary of the 
Treasury, in consultation with the head of each 
agency to which the Secretary has delegated duties 
or powers under subsection (a), shall issue a rule to 
specify— 
‘‘(A) with respect to technology and related 
technology-internal processes (‘new technology’) 
designed to facilitate compliance with the Bank 
Secrecy Act requirements, the standards by 
which financial institutions are to test new 
technology; and
‘‘(B) in what instances or under what cir-
cumstance and criteria a financial institution 
may replace or terminate legacy technology and 
processes for any examinable technology or 
process without the replacement or termination 
being determined an examination deficiency. 
‘‘(2) STANDARDS.—The standards described 
under paragraph (1) may include— 
‘‘(A) an emphasis on using innovative ap-
proaches, such as machine learning, rather than 
rules-based systems; 
‘‘(B) risk-based back-testing of the regime 
to facilitate calibration of relevant systems; 
‘‘(C) requirements for appropriate data 
privacy and security; and 
‘‘(D) a requirement that the algorithms 
used by the regime be disclosed to the Financial 
Crimes Enforcement Network, upon request. 
‘‘(3) CONFIDENTIALITY OF ALGORITHMS.—If a 
financial institution or any director, officer, em-
ployee, or agent of any financial institution, volun-
tarily or pursuant to this subsection or any other au-
thority, discloses the institution’s algorithms to a 
Government agency, such algorithms and any mate-
rials associated with the creation of such algorithms
shall be considered confidential and not subject to 
public disclosure.’’. 
(b) UPDATE OF MANUAL.—The Financial Institu-
tions Examination Council shall ensure— 
(1) that any manual prepared by the Council is 
updated to reflect the rulemaking required by the 
amendment made by subsection (a); and 
(2) that financial institutions are not penalized 
for the decisions based on such rulemaking to re-
place or terminate technology used for compliance 
with the Bank Secrecy Act (as defined under section 
5312 of title 31, United States Code) or other anti- 
money laundering laws. 
SEC. 305. FINCEN STUDY ON USE OF EMERGING TECH-
NOLOGIES. 
(a) STUDY.— 
(1) IN GENERAL.—The Director of the Finan-
cial Crimes Enforcement Network (‘‘FinCEN’’) shall 
carry out a study on— 
(A) the status of implementation and in-
ternal use of emerging technologies, including 
artificial intelligence (‘‘AI’’), digital identity 
technologies, blockchain technologies, and other 
innovative technologies within FinCEN;
(B) whether AI, digital identity tech-
nologies, blockchain technologies, and other in-
novative technologies can be further leveraged 
to make FinCEN’s data analysis more efficient 
and effective; and 
(C) how FinCEN could better utilize AI, 
digital identity technologies, blockchain tech-
nologies, and other innovative technologies to 
more actively analyze and disseminate the infor-
mation it collects and stores to provide inves-
tigative leads to Federal, State, Tribal, and 
local law enforcement, and other Federal agen-
cies (collective, ‘‘Agencies’’), and better support 
its ongoing investigations when referring a case 
to the Agencies. 
(2) INCLUSION OF GTO DATA.—The study re-
quired under this subsection shall include data col-
lected through the Geographic Targeting Orders 
(‘‘GTO’’) program. 
(3) CONSULTATION.—In conducting the study 
required under this subsection, FinCEN shall con-
sult with the Directors of the Innovations Labs es-
tablished in section 302. 
(b) REPORT.—Not later than the end of the 6-month 
period beginning on the date of the enactment of this Act,
the Director shall issue a report to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the House of Rep-
resentatives containing— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
(2) with respect to each of subparagraphs (A), 
(B) and (C) of subsection (a)(1), any best practices 
or significant concerns identified by the Director, 
and their applicability to AI, digital identity tech-
nologies, blockchain technologies, and other innova-
tive technologies with respect to United States ef-
forts to combat money laundering and other forms 
of illicit finance; and 
(3) any policy recommendations that could fa-
cilitate and improve communication and coordination 
between the private sector, FinCEN, and Agencies 
through the implementation of innovative ap-
proaches, in order to meet their Bank Secrecy Act 
(as defined under section 5312 of title 31, United 
States Code) and anti-money laundering compliance 
obligations.
SEC. 306. DISCRETIONARY SURPLUS FUNDS. 
(a) IN
GENERAL.—The dollar amount specified 
under section 7(a)(3)(A) of the Federal Reserve Act (12 
U.S.C. 289(a)(3)(A)) is reduced by $27,000,000. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on September 30, 2029. 
Passed the House of Representatives October 28, 
2019. 
Attest: 
Clerk.
116TH CONGRESS 
1ST SESSION 
H. R. 2514 
AN ACT 
To make reforms to the Federal Bank Secrecy Act 
and anti-money laundering laws, and for other 
purposes.