‘‘§ 316. Treasury Attache´ Program 
‘‘(a) IN GENERAL.—There is established the Treas-
ury Attache´ Program, under which the Secretary of the 
Treasury shall appoint employees of the Department of 
the Treasury as a Treasury attache´, who shall— 
‘‘(1) have expertise in 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; and 
‘‘(B) soliciting buy-in and cooperation for 
the implementation of— 
‘‘(i) United States and multilateral 
sanctions; and 
‘‘(ii) international standards on anti- 
money laundering and the countering of 
the financing of terrorism; and 
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‘‘(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, 2019. 
‘‘(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 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.’’. 
(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´ Program.’’. 
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SEC. 
107. 
INCREASING 
TECHNICAL 
ASSISTANCE 
FOR 
INTERNATIONAL COOPERATION. 
There is authorized to be appropriated for fiscal year 
2020 to the Secretary of the Treasury for purposes of pro-
viding technical assistance for international cooperation 
an amount equal to twice the amount authorized for such 
purpose for fiscal year 2019. 
SEC. 108. FINCEN DOMESTIC LIAISONS. 
Section 310 of title 31, United States Code, as 
amended by section 102, is further amended by inserting 
after subsection (d) the following: 
‘‘(e) FINCEN DOMESTIC LIAISONS.— 
‘‘(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 another Federal 
agency in such region); 
‘‘(C) provide education to, and coordina-
tion with, both public- and private-sector enti-
ties with respect to FinCEN; and 
‘‘(D) perform outreach to financial institu-
tions (including non-bank financial institutions) 
and persons who are not financial institutions, 
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especially with respect to actions taken by 
FinCEN that require specific actions by, or 
have specific effects on, such institutions or 
persons, as determined by the Director. 
‘‘(2) FINANCIAL
INSTITUTION
DEFINED.—In 
this subsection, the term ‘financial institution’ has 
the meaning given that term under section 5312.’’. 
SEC. 109. FINCEN EXCHANGE. 
(a) IN GENERAL.—Section 314(a) of the USA PA-
TRIOT Act (31 U.S.C. 5311 note) is amended by adding 
at the end the following: 
‘‘(6) FINCEN EXCHANGE.— 
‘‘(A) 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 be-
fore the date of enactment of this paragraph. 
‘‘(B) PURPOSE.—The FinCEN Exchange 
shall further the purpose described under para-
graph (1) by facilitating a voluntary public-pri-
vate information sharing partnership among 
law enforcement, financial institutions, and 
FinCEN to— 
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‘‘(i) effectively and efficiently combat 
money laundering, terrorism financing, or-
ganized crime, and other financial crimes; 
‘‘(ii) protect the financial system from 
illicit use; and 
‘‘(iii) promote national security. 
‘‘(C) FINCEN DEFINED.—In this para-
graph, the term ‘FinCEN’ means the Financial 
Crimes Enforcement Network of the Depart-
ment of the Treasury.’’. 
(b) AUTHORIZATION OF APPROPRIATION.—There is 
authorized to be appropriated such sums as may be nec-
essary to carry out the amendment made by subsection 
(a). 
SEC. 110. STUDY AND STRATEGY ON TRADE-BASED MONEY 
LAUNDERING. 
(a) STUDY.—The Secretary of the Treasury shall 
carry out a study, in consultation with other appropriate 
Federal departments and agencies, on trade-based money 
laundering. 
(b) REPORT.—Not later than the end of the 9-month 
period beginning on the date of the enactment of this Act, 
the Secretary shall issue a report to the Congress con-
taining— 
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(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. 
(c) CLASSIFIED ANNEX.—The report required under 
this section may include a classified annex, if the Sec-
retary determines it appropriate. 
SEC. 111. DE-RISKING REPORT. 
(a) REVIEW.—The Secretary of the Treasury, in con-
sultation with the Federal functional regulators (as de-
fined under section 103) and other relevant stakeholders, 
shall undertake a formal review of— 
(1) the 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), countries, regions, and respondent banks; 
(2) the reasons why financial institutions are 
engaging in de-risking; 
(3) the association with and effects of de-risk-
ing on money laundering and financial crime actors 
and activities; and 
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(4) the most appropriate ways to promote fi-
nancial inclusion while maintaining compliance with 
the Bank Secrecy Act. 
(b) 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 and other relevant stakeholders, shall issue a 
report to Congress containing all findings and determina-
tions made in carrying out the study required under sub-
section (a). 
(c) DEFINITIONS.—In this section: 
(1) 
DE-RISKING.—The 
term 
‘‘de-risking’’ 
means the closing of customer accounts or limiting 
services of a category of customer due to perceived 
risk as it relates to compliance with the Bank Se-
crecy Act. 
(2) BSA 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 II—IMPROVING AML/CFT 
OVERSIGHT 
SEC. 201. SHARING OF SUSPICIOUS ACTIVITY REPORTS 
WITHIN A FINANCIAL GROUP. 
(a) IN GENERAL.— 
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(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) SHARING WITH FOREIGN BRANCHES, SUB-
SIDIARIES, AND AFFILIATES.— 
‘‘(A) IN
GENERAL.—Not later than 180 
days after the date of the enactment of this 
paragraph, the Secretary of the Treasury shall 
issue rules permitting any financial institution 
with a reporting obligation under this sub-
section to share information on reports under 
this subsection with the institution’s foreign 
branches, subsidiaries, and affiliates for the 
purposes of combating illicit finance risks, not-
withstanding any other provision of law except 
subparagraph (B). 
‘‘(B) EXCEPTION.—In issuing the regula-
tions required under subparagraph (A), the 
Secretary may not permit a financial institution 
to share information on reports under this sub-
section with a foreign branch, subsidiary, or af-
filiate located in a jurisdiction that— 
‘‘(i) is subject to countermeasures im-
posed by the Federal Government; or 
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‘‘(ii) the Secretary, in consultation 
with the Civil Liberties and Privacy Officer 
of the Financial Crimes Enforcement Net-
work, has determined cannot reasonably 
protect the privacy and confidentiality of 
such information.’’. 
(2) 
NOTIFICATION
PROHIBITIONS.—Section 
5318(g)(2)(A) of title 31, United States Code, is 
amended— 
(A) in clause (i), by inserting after ‘‘trans-
action has been reported’’ the following: ‘‘or 
otherwise reveal any information that would re-
veal that the transaction has been reported, in-
cluding materials prepared or used by the fi-
nancial institution for the purpose of identifying 
and detecting potentially suspicious activity’’; 
and 
(B) in clause (ii), by inserting after ‘‘trans-
action has been reported,’’ the following: ‘‘or 
otherwise reveal any information that would re-
veal that the transaction has been reported, in-
cluding materials prepared or used by the fi-
nancial institution for the purpose of identifying 
and detecting potentially suspicious activity,’’. 
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(b) RULEMAKING.—Not later than the end of the 
180-day period beginning on the date of enactment of this 
Act, the Secretary of the Treasury shall issue regulations 
to carry out the amendments made by this section. 
SEC. 202. TRAINING FOR EXAMINERS ON AML/CFT. 
The Federal Financial Institutions Examination 
Council Act of 1978 (12 U.S.C. 3301 et seq.) is amend-
ed— 
(1) by moving section 1009A so as to appear 
after section 1009; and 
(2) by inserting after section 1009A, as so 
moved, the following: 
‘‘SEC. 1009B. AML/CFT TRAINING. 
‘‘(a) TRAINING REQUIREMENT.—Each examiner em-
ployed by a Federal financial institutions regulatory agen-
cy shall attend at least 10 hours of annual training on 
anti-money laundering (AML) and the countering of the 
financing of terrorism (CFT), including— 
‘‘(1) potential risk profiles and red flags that 
may be encountered during examinations; 
‘‘(2) financial crime patterns and trends; 
‘‘(3) the high-level context for why AML and 
CFT programs are necessary for law enforcement 
agencies and other national security agencies, and 
what risks the programs seek to mitigate; and 
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‘‘(4) de-risking and its effect on the provision of 
financial services. 
‘‘(b) TRAINING MATERIALS AND STANDARDS.—The 
Council shall establish uniform training materials and 
standards for use in the training required under sub-
section (a).’’. 
SEC. 203. SHARING OF COMPLIANCE RESOURCES. 
(a) IN GENERAL.—Section 5318 of title 31, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(o) SHARING OF COMPLIANCE RESOURCES.— 
‘‘(1) SHARING PERMITTED.—Two or more fi-
nancial institutions may enter into collaborative ar-
rangements in order to more efficiency comply with 
the requirements of this subchapter. 
‘‘(2) OUTREACH.—The Secretary of the Treas-
ury and the appropriate supervising agencies shall 
carry out an outreach program to provide financial 
institutions with information, including best prac-
tices, with respect to the sharing of resources de-
scribed under paragraph (1).’’. 
(b) RULE
OF
CONSTRUCTION.—The amendment 
made by subsection (a) may not be construed to require 
financial institutions to share resources. 
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SEC. 204. GAO STUDY ON FEEDBACK LOOPS. 
(a) STUDY.—The Comptroller General of the United 
States shall carry out a study on— 
(1) practices within the United States Govern-
ment for providing feedback (‘‘feedback loop’’) to 
relevant parties (including regulated private entities) 
on the usage and usefulness of personally identifi-
able information (‘‘PII’’), sensitive-but-unclassified 
(‘‘SBU’’) data, or similar information provided by 
such parties to Government users of such informa-
tion and data (including law enforcement or regu-
lators); and 
(2) any practices or standards outside the 
United States for providing feedback loops on sen-
sitive information and public-private partnership in-
formation sharing efforts, specifically related to ef-
forts to combat money laundering and other forms 
of illicit finance. 
(b) REPORT.—Not later than the end of the 18- 
month period beginning on the date of the enactment of 
this Act, the Comptroller General 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 Representatives containing— 
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(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
(2) with respect to each of paragraphs (1) and 
(2) of subsection (a), any best practices or signifi-
cant concerns identified by the Comptroller General, 
and their applicability to public-private partnerships 
and feedback loops with respect to U.S. efforts to 
combat money laundering and other forms of illicit 
finance. 
SEC. 205. FINCEN STUDY ON BSA VALUE. 
(a) STUDY.—The Director of the Financial Crimes 
Enforcement Network shall carry out a study on Bank Se-
crecy Act value. 
(b) 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 the Committee on Finan-
cial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of 
the Senate containing all findings and determinations 
made in carrying out the study required under this sec-
tion. 
(c) CLASSIFIED ANNEX.—The report required under 
this section may include a classified annex, if the Director 
determines it appropriate. 
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(d) 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. 206. SECTION 314(a) IMPROVEMENTS. 
Section 314(a) of the USA PATRIOT Act (31 U.S.C. 
5311 note), as amended by section 109, is further amend-
ed by adding at the end the following: 
‘‘(7) POINT OF CONTACT LIST.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
maintain a list containing contact information 
for with respect to a law enforcement agency, 
those individuals who serve as points of contact 
for a Suspicious Activity Report review com-
mittee. 
‘‘(B) AVAILABILITY
OF
LIST.—The Sec-
retary shall make the list of contact information 
described under subparagraph (A) available to 
all financial institutions and law enforcement 
agencies.’’. 
SEC. 207. SHARING OF THREAT PATTERN AND TREND IN-
FORMATION. 
Section 314(a) of the USA PATRIOT Act (31 U.S.C. 
5311 note), as amended by section 206, is further amend-
ed by adding at the end the following: 
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‘‘(8) SHARING
OF
THREAT
PATTERN
AND 
TREND INFORMATION.— 
‘‘(A) IN GENERAL.—Not less than month-
ly, the Secretary shall provide financial institu-
tions with typologies on emerging money laun-
dering and counter terror financing threat pat-
terns and trends. 
‘‘(B) INFORMATION
CLASSIFICATION.—In 
providing information pursuant to subpara-
graph (A), the Secretary may provide public 
and sensitive information to financial institu-
tions, but may not provide classified informa-
tion, unless otherwise permitted by law.’’. 
SEC. 208. MODERNIZATION AND UPGRADING WHISTLE-
BLOWER PROTECTIONS. 
(a) REWARDS.—Section 5323(d) of title 31, United 
States Code, is amended to read as follows: 
‘‘(d) SOURCE OF REWARDS.—For the purposes of 
paying an award under this section, there are authorized 
to be appropriated such sums as may be necessary, and 
the Secretary may also use funds from the Department 
of the Treasury Forfeiture Fund and the Department of 
Justice Assets Forfeiture Fund.’’. 
(b) WHISTLEBLOWER INCENTIVES.— 
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Chapter 53 of title 31, United States Code, is 
amended— 
(1) by inserting after section 5323 the fol-
lowing: 
‘‘§ 5323A. Whistleblower incentives 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) COVERED JUDICIAL OR ADMINISTRATIVE 
ACTION.—The term ‘covered judicial or administra-
tive action’ means any judicial or administrative ac-
tion brought by FinCEN under the Bank Secrecy 
Act that results in monetary sanctions exceeding 
$1,000,000. 
‘‘(2) FINCEN.—The term ‘FinCEN’ means the 
Financial Crimes Enforcement Network. 
‘‘(3) MONETARY SANCTIONS.—The term ‘mone-
tary sanctions’, when used with respect to any judi-
cial or administrative action, means— 
‘‘(A) any monies, including penalties, 
disgorgement, and interest, ordered to be paid; 
and 
‘‘(B) 
any 
monies 
deposited 
into 
a 
disgorgement fund as a result of such action or 
any settlement of such action. 
‘‘(4) 
ORIGINAL
INFORMATION.—The 
term 
‘original information’ means information that— 
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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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‘‘(c) DETERMINATION OF AMOUNT OF AWARD; DE-
NIAL OF AWARD.— 
‘‘(1) 
DETERMINATION
OF
AMOUNT
OF 
AWARD.— 
‘‘(A) DISCRETION.—The determination of 
the amount of an award made under subsection 
(b) shall be in the discretion of the Secretary. 
‘‘(B) CRITERIA.—In responding to a dis-
closure and determining the amount of an 
award made, FinCEN staff shall meet with the 
whistleblower to discuss evidence disclosed and 
rebuttals to the disclosure, and— 
‘‘(i) shall take into consideration— 
‘‘(I) the significance of the infor-
mation provided by the whistleblower 
to the success of the covered judicial 
or administrative action; 
‘‘(II) the degree of assistance 
provided by the whistleblower and any 
legal representative of the whistle-
blower in a covered judicial or admin-
istrative action; 
‘‘(III) the mission of FinCEN in 
deterring violations of the law by 
making awards to whistleblowers who 
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provide information that lead to the 
successful enforcement of such laws; 
and 
‘‘(IV) such additional relevant 
factors as the Secretary may establish 
by rule; and 
‘‘(ii) shall not take into consideration 
the balance of any fund described under 
section 5323(d). 
‘‘(2) DENIAL
OF
AWARD.—No award under 
subsection (b) shall be made— 
‘‘(A) to any whistleblower who is, or was at 
the time the whistleblower acquired the original 
information submitted to FinCEN, a member, 
officer, or employee of— 
‘‘(i) an appropriate regulatory agency; 
‘‘(ii) the Department of Justice; 
‘‘(iii) a self-regulatory organization; or 
‘‘(iv) a law enforcement organization; 
‘‘(B) to any whistleblower who is convicted 
of a criminal violation related to the judicial or 
administrative action for which the whistle-
blower otherwise could receive an award under 
this section; 
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‘‘(C) to any whistleblower who gains the 
information through the performance of an 
audit of financial statements required under the 
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. 
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‘‘(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.’’; 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. 209. CERTAIN VIOLATORS BARRED FROM SERVING ON 
PUBLIC COMPANY BOARDS. 
Section 5321 of title 31, United States Code, is 
amended by adding at the end the following: 
‘‘(f) CERTAIN VIOLATORS BARRED FROM SERVING 
ON PUBLIC COMPANY BOARDS.— 
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‘‘(1) IN
GENERAL.—An individual found to 
have committed an egregious violation of a provision 
of (or rule issued under) this subchapter, section 21 
of the Federal Deposit Insurance Act, or section 123 
of Public Law 91–508 shall be barred from serving 
on the board of directors of a public company for a 
10-year period beginning on the date of such find-
ing. 
‘‘(2) DEFINITIONS.—In this subsection: 
‘‘(A) EGREGIOUS
VIOLATION.—With re-
spect to an individual, the term ‘egregious viola-
tion’ means— 
‘‘(i) a felony criminal violation for 
which the individual was convicted; and 
‘‘(ii) a civil violation where the indi-
vidual knowingly committed such violation 
and the violation facilitated money laun-
dering or the financing of terrorism. 
‘‘(B) PUBLIC COMPANY.—The term ‘public 
company’ means an issuer the securities of 
which are traded on a national securities ex-
change. 
‘‘(C) OTHER
SECURITIES
TERMS.—The 
terms ‘issuer’ and ‘national securities exchange’ 
have the meaning given those terms, respec-
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tively, under section 3 of the Securities Ex-
change Act of 1934.’’. 
SEC. 210. ADDITIONAL DAMAGES FOR REPEAT BANK SE-
CRECY ACT VIOLATORS. 
Section 5321 of title 31, United States Code, as 
amended by section 209, is further amended 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 violated a provision of (or rule issued 
under) this subchapter, section 21 of the Federal Deposit 
Insurance Act, or section 123 of Public Law 91–508, the 
Secretary may impose an additional civil penalty against 
such person for each additional such violation in an 
amount equal to up to three times the profit gained or 
loss avoided by such person as a result of the violation.’’. 
SEC. 211. JUSTICE ANNUAL REPORT ON DEFERRED AND 
NONPROSECUTION AGREEMENTS. 
(a) ANNUAL REPORT.—The Attorney General shall 
issue an annual report, every year for the five 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-
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ing, and Urban Affairs and the Judiciary of the Senate 
containing— 
(1) a list of deferred prosecution agreements 
and nonprosecution 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. 212. RETURN OF PROFITS AND BONUSES. 
Section 5322 of title 31, United States Code, is 
amended by adding at the end the following: 
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‘‘(e) RETURN OF PROFITS AND BONUSES.—A person 
convicted of violating a provision of (or rule issued under) 
this subchapter, section 21 of the Federal Deposit Insur-
ance Act, or section 123 of Public Law 91–508 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 domestic 
financial institution or nonfinancial trade or busi-
ness at the time the violation occurred, repay to 
such domestic financial institution or nonfinancial 
trade or business any bonus paid to such individual 
during the Federal fiscal year in which the violation 
occurred.’’. 
SEC. 213. PROHIBITION ON TAX DEDUCTIONS FOR ATTOR-
NEY’S FEES RELATED TO BANK SECRECY ACT 
SETTLEMENTS AND COURT COSTS. 
Section 162(f) of the Internal Revenue Code of 1986 
is amended by adding at the end the following: 
‘‘(6) VIOLATIONS
OF
THE
BANK
SECRECY 
ACT.—In the case of a payment described in para-
graph (1) that is in relation to any violation of the 
Bank Secrecy Act (as defined under section 5312 of 
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title 31, United States Code), no deduction shall be 
allowed under this chapter for attorney’s fees related 
to such payment.’’. 
SEC. 214. APPLICATION OF BANK SECRECY ACT TO DEAL-
ERS IN ART OR 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) dealers in art or antiquities; or’’. 
(b) RULEMAKING.—Not later than the end of the 
180-day period beginning on the date of the enactment 
of this Act, the Secretary of the Treasury shall issue regu-
lations to carry out the amendments made by subsection 
(a). 
(c) EFFECTIVE DATE.—Section 5312(a)(2)(Z) of 
title 31, United States Code, as added by subsection (a), 
shall take effect after the end of the 270-day period begin-
ning on the date of the enactment of this Act. 
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SEC. 215. REVISION TO GEOGRAPHIC TARGETING ORDER. 
The Secretary of the Treasury shall revise the geo-
graphic targeting order issued by the Financial Crimes 
Enforcement Network on November 15, 2018 (the 
‘‘Order’’), so that the Order— 
(1) applies to commercial real estate to the 
same extent as the Order applies to residential real 
estate; and 
(2) applies to a purchase made, at least in part, 
using an in-kind transaction to the same extent as 
the Order applies to a purchase made, at least in 
part, using currency or a cashier’s check, a certified 
check, a traveler’s check, a personal check, a busi-
ness check, a money order in any form, a funds 
transfer, or virtual currency. 
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 203, is further amended by adding 
at the end the following: 
‘‘(p) ENCOURAGING INNOVATION IN COMPLIANCE.— 
‘‘(1) IN GENERAL.—The financial agencies shall 
encourage financial institutions to consider, evaluate, 
and, where appropriate, responsibly implement inno-
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vative approaches to meet the requirements 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) FINANCIAL
AGENCY
DEFINED.—In this 
subsection, the term ‘financial agency’ means the 
Department of the Treasury, the Board of Gov-
ernors of the Federal Reserve System, the Federal 
Deposit Insurance Corporation, the National Credit 
Union Administration, the Office of the Comptroller 
of the Currency, and the Securities and Exchange 
Commission.’’. 
SEC. 302. INNOVATION LABS. 
(a) IN GENERAL.—Title 31, United States Code, is 
amended by inserting after section 5326 the following: 
‘‘§ 5327. Innovation Labs 
‘‘(a) ESTABLISHMENT.—There is established within 
each financial agency an Innovation Lab. 
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‘‘(b) DIRECTOR.—The head of each Innovation Lab 
shall be a Director, to be appointed by the head of the 
applicable financial agency. 
‘‘(c) DUTIES.—The duties of the Innovation Lab 
shall be— 
‘‘(1) to provide outreach to law enforcement 
agencies, financial institutions, and other persons 
(including vendors and technology companies) with 
respect to innovation and new technologies used to 
comply with the requirements of the Bank Secrecy 
Act; and 
‘‘(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. 
‘‘(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) FINANCIAL AGENCY DEFINED.—In this section, 
the term ‘financial agency’ means the Department of the 
Treasury, the Board of Governors of the Federal Reserve 
System, the Federal Deposit Insurance Corporation, the 
National Credit Union Administration, the Office of the 
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