termines that the participants have access to a
centralized database that contains information
on public final disciplinary or formal enforce-
ment actions sufficiently similar to that de-
scribed in paragraph (1).
(B) FACTORS FOR DETERMINATION.—The
Subcommittee shall make the determination
under subparagraph (A) on an ongoing basis,
considering both short-term costs and techno-
logical limitations, as well as the need for long-
term comprehensive coverage, and other appro-
priate factors.
(C) STATE SUPERVISORS.—It is the sense
of the Congress that the National Association
of Insurance Commissioners, the Conference of
State Bank Supervisors, the National Associa-
tion of State Credit Union Supervisors, and the
North American Securities Administrators As-
sociation should develop model guidelines for
their respective regulated financial industries,
where appropriate, to promote uniform stand-
ards for sharing information with the network
under this section.
(c) FINANCIAL REGULATOR CONTROL OF ACCESS.—
(1) IN GENERAL.—Except as provided in para-
graph (4), each participant that allows access to its
databases by other participants through the network
may establish parameters for controlling or limiting
such access, including the regulation of—
(A) the type or category of information
that may be accessed by other participants and
the extent to which any such type or category
of information may be accessed;
(B) the participants that may have access
to the database or any specific type or category
of information in the database; and
(C) The disclosure by any other participant
of any type or category of information that may
be accessed by the participant.
(2) PROCEDURES.—Any action by a participant
under paragraph (1) may be established by regula-
tions, orders, or guidelines or on a case-by-case
basis.
(3) DISCLAIMER.—
(A) IN GENERAL.—The Subcommittee and
a participant shall ensure that any transfer of
information under this section, other than in-
formation described in subsection (b)(1), from
such participant to another participant be sub-
ject to a disclaimer that the information
accessed may be unsubstantiated and may not
be relied on as the sole basis for denying any
application or license.
(B) SUBCOMMITTEE
FLEXIBILITY.—The
Subcommittee may prescribe such guidelines or
procedures as the Subcommittee determines to
be appropriate governing the location and fre-
quency of disclaimers under this paragraph and
the manner in which any such disclaimer shall
be made.
(4) FINAL
DISCIPLINARY
AND
FORMAL
EN-
FORCEMENT
ACTIONS
NOT
SUBJECT
TO
LIMITA-
TION.—This subsection, and standards or proce-
dures adopted by any participant under this sub-
section, shall not apply with respect to information
described in subsection (b)(1).
(5) NO EFFECT ON PUBLIC OR COMPANY AC-
CESS.—It is the sense of the Congress that it is not
the intent of this section to replace, supersede, or
otherwise affect access to any databases existing on
the date of the enactment of this Act which are ac-
cessible by the public or persons engaged in the
business of conducting financial activities.
(d) ELIGIBILITY REQUIREMENTS FOR STATE SECU-
RITIES ADMINISTRATORS.—No State securities adminis-
trator shall be eligible to be a participant and access the
network maintained by the Subcommittee unless—
(1) such State securities administrator partici-
pates in a centralized database for broker-dealers,
broker-dealer agents, investment advisers, and in-
vestment advisor representatives, registered or re-
quired to be registered, as designated by the North
American Securities Administrators Association; and
(2) such State securities administrator requires
the broker-dealer, broker-dealer agent, investment
adviser, or investment adviser representative, cur-
rently registered or required to be registered, to file
any application, amendment to an application, or a
renewal of an application through the centralized
registration database.
(e) ELIGIBILITY REQUIREMENTS FOR STATE INSUR-
ANCE COMMISSIONERS.—
(1) IN GENERAL.—No State insurance commis-
sioner shall be eligible to access the network main-
tained by the Subcommittee unless—
(A) such State insurance commissioner
participates with other State insurance commis-
sioners in a centralized database that, with re-
spect to persons engaged in the business of in-
surance, address—
(i) disciplinary actions taken against
persons engaged in the business of insur-
ance;
(ii) suspicious activities or ongoing in-
vestigations of persons engaged in the
business of insurance;
(iii) consumer complaints concerning
a person engaged in the business of insur-
ance; and
(iv) corporate and other business af-
filiations or relationships; and
(B) the State insurance department which
such commissioner represents meets one of the
following accreditation requirements at the time
of access to the network:
(i) Is accredited by the National Asso-
ciation of Insurance Commissioners.
(ii) Has an application for accredited
status pending with the National Associa-
tion of Insurance Commissioners.
(iii) Has a determination by the Sub-
committee in effect that such State insur-
ance department meets or exceeds the
standards established by the National As-
sociation of Insurance Commissioners for
accreditation.
(2) QUALIFICATION
OF
NAIC
NETWORKS.—A
State insurance commissioner shall be deemed to
have met the requirements of paragraph (1)(A) if
the commissioner participates in—
(A) the following networks maintained by
the National Association of Insurance Commis-
sioners:
(i) Producer Database.
(ii) Regulatory Information Retrieval
System.
(iii) Special Activities Database.
(iv) Complaints Database; or
(B) each network or database designated
by the National Association of Insurance Com-
missioners as a successor to any network de-
scribed in subparagraph (A).
(f) 
SUBCOMMITTEE
STANDARDS.—The 
Sub-
committee shall consider developing policies or guidelines
for participants setting forth—
(1) how to denote which types of information
are to receive different levels of privileges or con-
fidential treatment; and
(2) how entities or associations that act as
agents for financial regulators should denote such
agency status when acting in that capacity.
(g) DEADLINE FOR ESTABLISHING NETWORK.—The
computer network which is required under subsection
(a)(1) shall be established before the end of the 2-year
period beginning on the date of the enactment of the Fi-
nancial Services Antifraud Network Act of 2001 or such
other time as the Subcommittee may determine to be ap-
propriate.
(h) OTHER SHARING ARRANGEMENTS NOT AF-
FECTED.—No provision of this section shall be construed
as limiting or otherwise affecting the authority of a partic-
ipant to provide any person, including another participant,
access to any information in accordance with any provision
of law other than this Act.
SEC. 103. CHAIRPERSON; TERM OF CHAIRPERSON; MEET-
INGS; OFFICERS AND STAFF.
(a) CHAIRPERSON.—
(1) SELECTION.—The Subcommittee shall se-
lect the Chairperson of the Subcommittee from
among the members of the Subcommittee.
(2) TERM.—The term of the Chairperson shall
be 2 years.
(b) MEETINGS.—The Subcommittee shall meet at the
call of the Chairperson or a majority of the members when
there is business to be conducted.
(c) QUORUM.—A majority of members of the Sub-
committee shall constitute a quorum.
(d) MAJORITY
VOTE.—Decisions of the Sub-
committee shall be made by the vote of a majority of the
members of the Subcommittee.
(e) OFFICERS AND STAFF.—The Chairperson of the
Subcommittee shall appoint such officers and staff as may
be necessary to carry out the functions of this title.
SEC. 104. PURPOSES OF THE SUBCOMMITTEE.
The purposes of the Subcommittee shall include the
purposes of this Act and the promotion of greater cross-
industry efficiency, effectiveness, and coordination, in gen-
eral, across all sectors of our Nation’s financial markets.
SEC. 105. POWERS OF THE SUBCOMMITTEE.
(a) IN GENERAL.—The Subcommittee shall have
such powers as are necessary to carry out the duties and
functions under this section.
(b) INFORMATION TO FACILITATE COORDINATION.—
Each agency and entity represented by a member or liai-
son shall, to the extent permitted by law, provide the Sub-
committee such information, concerning the databases
maintained by the agency or entity, as the Subcommittee
may require to perform the duties described in section
102(a).
(c) SERVICE OF MEMBERS AND LIAISONS.—Members
of and liaisons to the Subcommittee shall serve without
additional compensation for their work on the Sub-
committee.
(d) ADMINISTRATIVE AND TECHNICAL SUPPORT.—
The Subcommittee may request that any agency or entity
represented by a member or liaison provide the Sub-
committee with any administrative, technical, or other
support service that the Subcommittee determines is nec-
essary or appropriate for it to perform the duties described
in section 102(a).
SEC. 106. AGREEMENT ON COST STRUCTURE.
(a) IN GENERAL.—The Subcommittee shall deter-
mine the means for providing for the necessary costs of
carrying out the purposes of this title.
(b) CONSULTATION AND AGREEMENT ON FEES AND
CONTRIBUTIONS.—Notwithstanding any other provision
of this title, the Subcommittee may not impose any fee
or assessment on, or apportion any contribution against,
any member or liaison under this section in connection
with allowing such member or liaison access through the
network unless—
(1) the Subcommittee consults with such mem-
ber or liaison; and
(2) the member or liaison consents to the
amounts, or on a schedule, of such fees, assess-
ments, or contributions.
(c) REIMBURSEMENT OF PARTICIPANT COSTS.—Be-
fore allowing access by the Subcommittee or a participant
to any information described in section 102, other than
access described in subsection (b)(1) of such section, a
member or liaison may request the reimbursement of rea-
sonable costs for providing such access.
(d) REVIEW OF OPTIMAL NETWORKING METHODS.—
Before the end of the 120-day period beginning on the
date of the enactment of this Act, the Comptroller General
shall submit a report to the Committee on Financial Serv-
ices of the House of Representatives and the Committee
on Banking, Housing, and Urban Affairs of the Senate
regarding the most efficient and cost-effective methods for
the Subcommittee to fulfill its duties under this title.
SEC. 107. AGENCY SUPERVISORY PRIVILEGE.
(a) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) SUPERVISORY PROCESS.—The term ‘super-
visory process’ means any activity engaged in by a
financial regulator to carry out the official respon-
sibilities of the financial regulator with regard to the
regulation or supervision of persons engaged in the
business of conducting financial activities.
(2) CONFIDENTIAL
SUPERVISORY
INFORMA-
TION.—Subject to paragraph (3), the term ‘con-
fidential supervisory information’ means any of the
following information, or any portion of any such in-
formation, which is treated as, or considered to be,
confidential information by a financial regulator, re-
gardless of the form or format in which the informa-
tion is created, conveyed, or maintained:
(A) Any report of examination, inspection,
visitation, or investigation, and information pre-
pared or collected by the financial regulator in
connection with the supervisory process, includ-
ing any computer file, work paper, or similar
information.
(B) Any correspondence or communication
from a financial regulator to a person engaged
in the business of conducting financial activities
relating to an examination, inspection, visita-
tion, or investigation by a financial regulator.
(C) Any correspondence, communication,
or document, including any compliance and
other reports, created by or on behalf of a per-
son engaged in the business of conducting fi-
nancial activities in response to any request, in-
quiry, or directive from a financial regulator in
connection with any examination, inspection,
visitation, or investigation and provided to a fi-
nancial regulator.
(D) Any record of a financial regulator to
the extent it contains information derived from
any report, correspondence, communication or
other information described in subparagraph
(A), (B), or (C).
(3) 
ORDINARY
BUSINESS
RECORDS
EX-
CLUDED.—The term ‘confidential supervisory infor-
mation’ shall not include—
(A) any book or record in the possession of
the person engaged in the business of con-
ducting financial activities that is routinely pre-
pared by or on behalf of such person and main-
tained in the ordinary course of business; or
(B) any information required to be made
publicly available—
(i) by any applicable Federal law or
regulation; or
(ii) in the case of confidential super-
visory information of a State financial reg-
ulator, any applicable State law or regula-
tion that specifically refers to such type of
information.
(b) FINANCIAL REGULATOR SUPERVISORY PRIVI-
LEGE.—
(1) PRIVILEGE ESTABLISHED.—
(A) IN GENERAL.—All confidential super-
visory information shall be the property of the
financial regulator that created the information,
or requested the information from a person en-
gaged in the business of conducting financial
activities, and shall be privileged from disclo-
sure to any other person.
(B) PROHIBITION ON UNAUTHORIZED DIS-
CLOSURES.—No person in possession of con-
fidential supervisory information may disclose
such information, in whole or in part, without
the prior authorization of the financial regu-
lator that created the information, or requested
the information from a person engaged in the
business of conducting financial activities, ex-
cept for a disclosure made in published statis-
tical material that does not disclose, either di-
rectly or when used in conjunction with publicly
available information, the affairs of any person.
(C) AGENCY WAIVER.—The financial regu-
lator described in subparagraph (A) may waive,
in whole or in part, in the discretion of the reg-
ulator, any privilege established under this
paragraph.
(2) EXCEPTIONS.—
(A) IN GENERAL.—No provision of para-
graph (1) shall be construed as preventing ac-
cess to confidential supervisory information by
duly authorized committees of the United
States Congress or the Comptroller General of
the United States.
(B) AGENCY
OVERSIGHT.—No financial
regulator which is subject to the oversight of a
Federal agency may assert the privilege de-
scribed in paragraph (1) to prevent access to
confidential supervisory information by such
Federal agency.
(c) TREATMENT OF FOREIGN SUPERVISORY INFOR-
MATION.—In any proceeding before a Federal or State
court of the United States, in which a person seeks to
compel production or disclosure by a foreign financial reg-
ulator with network access in accordance with section
102(a)(3), any other financial regulator, or any other per-
son, of information or a document prepared or collected
by a foreign financial regulator that would, had they been
prepared or collected by a Federal financial regulator, be
confidential supervisory information for purposes of this
section, the information or document shall be privileged
to the same extent that the information and documents
of Federal financial regulators are privileged under this
title.
(d) OTHER PRIVILEGES NOT WAIVED BY DISCLO-
SURE TO FINANCIAL REGULATOR.—The submission by a
person engaged in the business of conducting financial ac-
tivities of any information to a Federal financial regulator,
a State financial regulator, or a foreign financial regulator
described in subsection (c) for any purpose in the course
of the supervisory process of such financial regulator shall
not waive, destroy, or otherwise affect any privilege such
person may claim with respect to such information under
Federal or State law.
(e) DISCOVERY
AND DISCLOSURE
OF INFORMA-
TION.—
(1) INFORMATION AVAILABLE ONLY FROM FI-
NANCIAL REGULATOR.—
(A) IN GENERAL.—No person or financial
regulator may disclose, in whole or in part, any
confidential supervisory information to any per-
son who seeks such information through sub-
poena, discovery procedures, or other process
from any such person or regulator, except that
such information may be sought in accordance
with this section from the financial regulator
that created the information or requested the
information from a person engaged in the busi-
ness of conducting financial activity.
(B) PROCEDURE
FOR
REQUESTS
SUB-
MITTED TO FINANCIAL REGULATOR.—Any re-
quest for discovery or disclosure of confidential
supervisory information shall be made to the fi-
nancial regulator that created the information,
or requested the information from a person en-
gaged in the business of conducting financial
activities, which shall determine within a rea-
sonable time period whether to disclose such in-
formation pursuant to procedures and criteria
established by the financial regulator.
(C) NOTIFICATION.—
(i) IN GENERAL.—Before any finan-
cial regulator releases information that was
requested from a person engaged in the
business of conducting financial activities
to a person under subparagraph (B), no-
tice and a reasonable time for comment
shall be provided to the person from whom
such information was requested unless
such information—
(I) is being provided to another
financial regulator, liaison, or Federal
or State government (or any agency
or instrumentality of any such govern-
ment);
(II) is being sought for use in a
criminal proceeding or investigation or
a regulatory or supervisory enforce-
ment or disciplinary action or inves-
tigation; or
(III) was originally created, or
included in information created, by
the financial regulator.
(ii) 
PROCEDURES
AND
REQUIRE-
MENTS.—The notice and time period re-
quired by clause (i) shall be in accordance
with the procedures and requirements that
the financial regulator releasing the infor-
mation may establish by regulation or oth-
erwise.
(2) FEDERAL COURT JURISDICTION OVER DIS-
PUTES.—
(A) IN GENERAL.—In any action or pro-
ceeding in which a party seeks to compel disclo-
sure of confidential supervisory information, a
financial regulator may, in its sole discretion,
elect to remove the action or proceeding on the
disclosure issue to Federal court, and any such
Federal court shall have exclusive jurisdiction.
(B) JUDICIAL REVIEW.—Judicial review of
the final action of a financial regulator with re-
gard to the disposition of a request for con-
fidential supervisory information shall be before
a district court of the United States of com-
petent jurisdiction, subject to chapter 7 of part
I of title 5, United States Code.
(f) AUTHORITY TO INTERVENE.—In the case of any
action or proceeding to compel compliance with a sub-
poena, order, discovery request, or other judicial or admin-
istrative process with respect to any confidential super-
visory information relating to any person engaged in the
business of conducting financial activities, a financial reg-
ulator may intervene in such action or proceeding, and
such person may intervene with such regulator, for the
purpose of—
(1) enforcing the limitations established in
paragraph (1) of subsections (b) and (e);
(2) seeking the withdrawal of any compulsory
process with respect to such information; and
(3) registering appropriate objections with re-
spect to the action or proceeding to the extent the
action or proceeding relates to or involves such infor-
mation.
(g) RIGHT TO APPEAL.—Any court order that com-
pels production of confidential supervisory information
may be immediately appealed by the financial regulator
and the order compelling production shall be automatically
stayed, pending the outcome of such appeal.
(h) REGULATIONS.—
(1) AUTHORITY TO PRESCRIBE.—Each financial
regulator may prescribe such regulations as the reg-
ulator considers to be appropriate, after consultation
with the other financial regulators (to the extent the
prescribing financial regulator considers appropriate
and feasible), to carry out the purposes of this sec-
tion.
(2) AUTHORITY
TO
REQUIRE
NOTICE.—Any
regulations prescribed by a financial regulator under
paragraph (1) may require any person in possession
of confidential supervisory information to notify the
financial regulator whenever the person is served
with a subpoena, order, discovery request, or other
judicial or administrative process requiring the per-
sonal attendance of such person as a witness or re-
quiring the production of such information in any
proceeding.
(i) ACCESS
IN ACCORDANCE WITH REGULATIONS
AND ORDERS.—Notwithstanding any other provision of
this section, a financial regulator may, without waiving
any privilege, authorize access to confidential supervisory
information created by such agency, or requested by such
regulator from any person engaged in the business of con-
ducting financial activities, for any appropriate govern-
mental, law enforcement, or public purpose in accordance
with agency regulations or orders.’’.
SEC. 108. CONFIDENTIALITY OF INFORMATION.
(a) IN GENERAL.—
(1) FINANCIAL REGULATORS.—Except as other-
wise provided in this section or section 107, any re-
quirement under Federal or State law regarding the
privacy or confidentiality of any information or ma-
terial in the possession of any participant to the
Subcommittee, and any privilege arising under Fed-
eral or State law (including the rules of any Federal
or State court) with respect to such information or
material, shall continue to apply to such information
or material—
(A) after the information or material has
been disclosed to another participant through
the network; and
(B) while the information or material is
held by the Subcommittee, whether acquired di-
rectly or through the network.
(2) CERTAIN
INSURANCE
INFORMATION.—Ex-
cept as otherwise provided in this section or section
107, any requirement under Federal or State law re-
garding the privacy or confidentiality of any infor-
mation or material in the possession of the National
Association of Insurance Commissioners, or any
member or affiliate of the Association, and any
privilege arising under Federal or State law (includ-
ing the rules of any Federal or State court) with re-
spect to such information or material, shall continue
to apply to such information or material after the in-
formation has been disclosed to the Association, or
any other member or affiliate of the Association,
through the computer network maintained by the
Association.
(3) NONAPPLICABILITY OF CERTAIN REQUIRE-
MENTS.—
(A) IN GENERAL.—Information or material
that is subject to a privilege or confidentiality
under any other paragraph of this subsection
shall not be subject to—
(i) disclosure under any Federal or
State law governing the disclosure to the
public of information held by an officer or
an agency of the Federal Government or
the respective State; or
(ii) subpoena or discovery, or admis-
sion into evidence, in any private civil ac-
tion or administrative process,
unless with respect to any privilege held by a
participant with respect to such information or
material, the participant waives, in whole or in
part, in the discretion of the participant, such
privilege.
(4) TREATMENT OF CERTAIN INTERNATIONAL
FINANCIAL REGULATORS.—Except as otherwise pro-
vided in this section or section 107, any inter-
national regulator that is allowed by the Sub-
committee, pursuant to section 103(a)(3), to access
the network shall be considered to be a participant
financial regulator for purposes of this section and
section 107.
(b) PREEMPTION OF STATE LAW.—Any State law re-
lating to the disclosure of confidential supervisory infor-
mation that is the property of any participant or any in-
formation or material to which subsection (a) applies that
is inconsistent with any provision of section 107 or sub-
section (a) of this section shall be superseded by the re-
quirements of such provision to the extent of the inconsist-
ency.
(c) DUTY OF FINANCIAL REGULATOR TO MAINTAIN
CONFIDENTIALITY.—A participant may not receive,
download, copy, or otherwise maintain any information or
material from any other member of or liaison to the Sub-
committee through the network unless—
(1) the participant maintains a system that en-
ables the participant to maintain full compliance
with the requirements of sections 102 and 107 and
this section, with respect to such information and
material; and
(2) if and to the extent required by the Sub-
committee, a record is maintained of each attempt
to access such information and material, and the
identity of the person making the attempt, in order
to prevent evasions of such requirements.
SEC. 109. LIABILITY PROVISIONS.
(a) NO
LIABILITY
FOR
GOOD
FAITH
DISCLO-
SURES.—
(1) IN GENERAL.—An entity described in para-
graph (2), the members and affiliates of such entity,
the officers and employees of such entity, member,
or affiliate, the Subcommittee, and officers and em-
ployees of the Subcommittee shall not be subject to
any civil action or proceeding for monetary damages
by reason of the action or omission of any officer or
employee of such entity, member, affiliate, or Sub-
committee, while acting within the scope of his or
her office or employment, relating to collecting, fur-
nishing, or disseminating, directly or through any
network maintained by the entity or the Sub-
committee, regulatory information, including sus-
picious or special activity reports, concerning or re-
lated to persons engaged in the business of con-
ducting financial activities.
(2) ENTITIES
DESCRIBED.—The entities re-
ferred to in paragraph (1) are as follows:
(A) The National Association of Insurance
Commissioners.
(B) The Conference of State Bank Super-
visors.
(C) The North American Securities Ad-
ministrators Association.
(D) The National Association of Securities
Dealers.
(E) The National Futures Association.
(F) The National Association of State
Credit Union Supervisors.
(b) CRIMINAL LIABILITY FOR INTENTIONAL UNLAW-
FUL DISCLOSURES.—Whoever willfully discloses to any
person any information or material maintained by a par-
ticipant concerning any person engaged in the business of
conducting financial activities knowing the disclosure to
be in violation of any provision of this title requiring the
confidentiality of such information or material, or estab-
lishing a privilege from disclosure for any participant
which has not been waived by the participant, shall be
fined in accordance with title 18, United States Code, or
imprisoned not more than 5 years, or both.
(c) FULL, CONTINUED PROTECTION UNDER THE SO-
CALLED ‘‘FEDERAL TORT CLAIMS ACT’’.—No provision
of this Act shall be construed as reducing or limiting any
protection provided for any Federal agency, or any officer
or employee of any Federal agency, under section 2679
of title 28, United States Code.
SEC. 110. AUTHORIZATION FOR IDENTIFICATION AND
CRIMINAL BACKGROUND CHECK.
(a) AUTHORIZATION
AND DUTIES
OF
THE ANTI-
FRAUD SUBCOMMITTEE.—Upon the request of a financial
regulator, the Antifraud Subcommittee shall—
(1) obtain from the Attorney General criminal
background records corresponding to fingerprints or
other biometric identification provided by the Sub-
committee; and
(2) screen the records obtained under para-
graph (1) to provide to the requesting financial reg-
ulator (or such regulator’s designated representative
under subsection (i)(1)) any information relating to
any crime for which a person could be barred under
Federal law by such regulator with respect to the fi-
nancial activities over which the regulator has juris-
diction.
(b) FORM OF REQUEST.—A request under subsection
(a) shall include a copy of any necessary identification in-
formation required by the Attorney General, such as the
name and fingerprints of the person about whom the
record is requested and a statement signed by the person
acknowledging that the regulator (or such regulator’s des-
ignated representative under subsection (i)(1)) may re-
quest the search.
(c) ATTORNEY GENERAL AUTHORIZATION.—Upon
receiving a request described in subsection (b), the Attor-
ney General shall—
(1) search the records of the Criminal Justice
Information Services Division of the Federal Bureau
of Investigation, and any other similar database over
which the Attorney General has authority and deems
appropriate, for any criminal background records
(including 
wanted 
persons 
information) 
cor-
responding to the identification information provided
under subsection (b); and
(2) provide such records to the Subcommittee
for screening.
(d) PERMISSIBLE USES OF INFORMATION.—A finan-
cial regulator may use information obtained under this
section for regulatory or law enforcement purposes and
disclose such information to any other financial regulator
or Federal or State governmental agency, for regulatory
or law enforcement purposes, if the recipient agrees to
maintain the confidentiality of such records.
(e) LIMITATION ON USE OF INFORMATION.—Infor-
mation obtained under this section may be used only—
(1) by the authorized recipient of such informa-
tion; and
(2) for the purpose of determining the suit-
ability of the person about whom the information is
obtained for engaging in the business of conducting
financial activities.
(f) PENALTY FOR IMPROPER USE.—Whoever know-
ingly uses any information obtained under this section for
an unauthorized purpose shall be imprisoned for not more
than 2 years or fined under title 18, United States Code,
or both.
(g) RELIANCE ON INFORMATION.—A financial regu-
lator (or such regulator’s designated representative under
subsection (i)(1)) who reasonably relies on information
provided under this section shall not be liable in any action
based on an employment determination resulting from the
incompleteness or inaccuracy of such information.
(h) SAFE HARBOR.—No person engaged in the busi-
ness of conducting financial activities shall be subject to
any civil action or proceeding for monetary damages or
any action brought under section 1033(e)(1)(B) of title
18, United States Code, for permitting an individual to
engage in the business of conducting financial activities
in violation of section 1033(e)(1)(A) of such title, if such
individual is licensed, or approved (as part of an applica-
tion or otherwise), by a financial regulator that performs
criminal background checks under this section, unless
such person has actual knowledge that the individual is
in violation of section 1033(e)(1)(A) of such title and that
the violation would not be known to the financial regu-
lator.
(i) DESIGNATION OF REPRESENTATIVE.—
(1) IN GENERAL.—A financial regulator may
designate a representative, to be approved by the
Antifraud Subcommittee, for facilitating requests
and exchanges of information under this section be-
tween the financial regulator and the Subcommittee.
(2) SENSE
OF
CONGRESS
REGARDING
REP-
RESENTATIVES OF INSURANCE REGULATORS.—It is
the sense of the Congress that—
(A) each State insurance commissioner
should designate the National Association of In-
surance Commissioners as a representative
under paragraph (1);
(B) persons engaged in the business of in-
surance should be able to use the National As-
sociation of Insurance Commissioners to facili-
tate obtaining fingerprints and supplying identi-
fication information for use in background
checks under this section on a multijuris-
dictional basis;
(C) the National Association of Insurance
Commissioners should maintain a database to
obtain records under this section for use by
State insurance commissioners to reduce mul-
tiple or duplicative fingerprinting requirements
and criminal background checks; and
(D) other financial regulators that require
fingerprints and criminal background checks
should similarly coordinate efforts to reduce du-
plication for persons engaged in the business of
conducting multiple types financial activities.
(j) SENSE
OF
CONGRESS
REGARDING
USE
OF
DETAILEES.—It is the sense of the Congress that a crimi-
nal background records screening described in subsection
(a)(2) may be performed by a detailee of the requesting
financial regulator (or such regulator’s designated rep-
resentative under subsection (i)(1)), if such detailee does
not disclose to such regulator (or representative) informa-
tion from such records other than the resulting screened
information described in subsection (a)(2).
(k) FEES.—The Attorney General and the Antifraud
Subcommittee may charge a reasonable fee for the provi-
sion of information under this section.
(l) RULE OF CONSTRUCTION.—This section shall not
be interpreted—
(1) to provide independent authorization for a
financial regulator to require fingerprinting as a
part of a licensure or other application; or
(2) to require a financial regulator to perform
criminal background checks under this section.
(m) REGULATIONS.—The Attorney General may pre-
scribe regulations to carry out this section.
SEC. 111. DEFINITIONS.
For purposes of this title, the following definitions
shall apply:
(1) FEDERAL
BANKING
AGENCY.—The term
‘‘Federal banking agency’’ has the same meaning as
given in section 3(z) of the Federal Deposit Insur-
ance Act.
(2) FINANCIAL ACTIVITIES.—The term ‘‘finan-
cial activities’’ means activities that are financial in
nature or are incidental to a financial activity (as
defined under section 4(k) of the Bank Holding
Company Act of 1956).
(3) FINANCIAL REGULATOR.—The term ‘‘finan-
cial regulator’’ means—
(A) each Federal banking agency;
(B) the Securities and Exchange Commis-
sion;
(C) the Commodity Futures Trading Com-
mission;
(D) the National Credit Union Administra-
tion;
(E) the Farm Credit Administration;
(F) the Federal Housing Finance Board;
(G) the Federal Trade Commission, with
respect to creditors subject to the jurisdiction of
the Commission under section 108(c) of the
Truth in Lending Act;
(H) the Director of the Office of Federal
Housing Enterprise Oversight of the Depart-
ment of Housing and Urban Development;
(I) any State bank supervisor (as defined
in section 3(r) of the Federal Deposit Insurance
Act), including the Conference of State Bank
Supervisors only to the extent—
(i) such conference is acting as an
agent of, and is subject to the oversight of,
any such State bank supervisor; and
(ii) the conference provides notice to
the Subcommittee when it is acting in such
capacity as an agent;