I 
115TH CONGRESS 
1ST SESSION H. R. 3439 
To facilitate better information sharing to assist in the fight against the 
funding of terrorist activities, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 26, 2017 
Mr. PITTENGER introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To facilitate better information sharing to assist in the fight 
against the funding of terrorist activities, 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. 
This Act may be cited as the ‘‘Financial Institution 
Security Act’’. 
SEC. 2. INFORMATION SHARING. 
(a) IN GENERAL.—Section 314 of the USA PA-
TRIOT Act (31 U.S.C. 5311 note) is amended— 
(1) in subsection (b)— 
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(A) by striking ‘‘terrorist or money laun-
dering activities’’ and inserting ‘‘terrorist acts, 
money laundering activities, or a specified un-
lawful activity (as defined under section 
1956(c)(7) of title 18, United States Code)’’; 
and 
(B) by striking ‘‘activities that may involve 
terrorist acts or money laundering activities’’ 
and inserting ‘‘activities that may involve ter-
rorist acts, money laundering activities, or a 
specified unlawful activity’’; and 
(2) in subsection (c), by inserting ‘‘or a speci-
fied unlawful activity (as defined under section 
1956(c)(7) of title 18, United States Code)’’ after 
‘‘terrorist acts or money laundering activities’’. 
(b) UPDATE TO REGULATIONS.—Section 314(a) of 
the USA PATRIOT Act (31 U.S.C. 5311 note) is amend-
ed by striking ‘‘or money laundering activities’’ each place 
such term appears and inserting ‘‘, money laundering ac-
tivities, or a specified unlawful activity (as defined under 
section 1956(c)(7) of title 18, United States Code)’’. 
(c) SENSE OF CONGRESS.—Section 314 of the USA 
PATRIOT Act (31 U.S.C. 5311 note) is amended by add-
ing at the end the following: 
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‘‘(e) SENSE OF CONGRESS.—It is the sense of the 
Congress that, in furtherance of efforts to stop the financ-
ing of terror and other forms of illicit financing through 
increased sharing of information, and consistent with the 
need to prevent inappropriate dissemination of such infor-
mation— 
‘‘(1) Federal law enforcement agencies and reg-
ulators should share information about terrorist ac-
tivities, money laundering activities, and other speci-
fied unlawful activities (as defined under section 
1956(c)(7) of title 18, United States Code) to the 
fullest extent possible and in a timely fashion; and 
‘‘(2) financial institutions, including nonbank fi-
nancial institutions, should share information about 
such acts and activities with each other to the fullest 
extent possible and in a timely fashion.’’. 
SEC. 3. DISCLOSURE LIABILITY. 
Section 5318(g)(3)(B) of title 31, United States 
Code, is amended— 
(1) in clause (i), by striking ‘‘or’’ at the end; 
(2) in clause (ii), by striking the period and in-
serting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(iii) any duty or requirement of a fi-
nancial institution or any director, officer, 
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employee, or agent of such institution to 
demonstrate to any person, as used in such 
subparagraph, that a disclosure referenced 
in such subparagraph is made in good 
faith.’’. 
SEC. 4. REPORT TO CONGRESS. 
(a) IN GENERAL.—Not later than the end of the 120- 
day period beginning on the date of the enactment of this 
Act, the Secretary of the Treasury shall report to the 
Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate regarding— 
(1) the Department of the Treasury’s assess-
ment of the risks and benefits of allowing sharing of 
information, consistent with appropriate privacy pro-
tections— 
(A) between United States financial insti-
tutions and foreign financial institutions; 
(B) between United States financial insti-
tutions and their foreign subsidiaries; and 
(C) between United States subsidiaries of 
foreign financial institutions and their parent 
financial institutions; and 
(2) whether a financial institution defined 
under section 5312(a)(2) of title 31, United States 
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Code, that is not required under Treasury regula-
tions on the date of the enactment of this Act to 
maintain an anti-money laundering program, should 
be authorized to appropriately share information 
pursuant to subsection (b) of section 314 of the 
USA PATRIOT Act, if— 
(A) the financial institution voluntarily es-
tablishes and maintains such an anti-money 
laundering program; 
(B) such program is subject to examina-
tion, and has been examined, by the appropriate 
regulator; and 
(C) the Secretary determines such program 
to be adequately operating. 
(b) SEPARATE PRESENTATION OF CLASSIFIED MA-
TERIAL.—Any part of the report described under sub-
section (a) that involves information which is properly 
classified under criteria established by the President shall 
be submitted to the committees described under subsection 
(a) separately in a classified annex and, if requested by 
the chairman or ranking Member of one of such commit-
tees, as a briefing at an appropriate level of security. 
SEC. 5. RULEMAKING. 
Not later than the end of the 180-day period begin-
ning on the date of the enactment of this Act, the Sec-
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retary of the Treasury shall issue regulations to be con-
sistent with the amendments made by this Act. 
Æ 
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