IB 
Union Calendar No. 306 
115TH CONGRESS 
1ST SESSION H. R. 2706 
[Report No. 115–414] 
To provide requirements for the appropriate Federal banking agencies when 
requesting or ordering a depository institution to terminate a specific 
customer account, to provide for additional requirements related to sub-
poenas issued under the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 25, 2017 
Mr. LUETKEMEYER (for himself, Mr. ROTHFUS, Mr. SESSIONS, Mr. BUDD, 
Mr. STIVERS, Mr. PITTENGER, Mr. TIPTON, Mr. WILLIAMS, Mr. LUCAS, 
Mr. HOLLINGSWORTH, Mr. HULTGREN, Mr. MACARTHUR, and Ms. 
TENNEY) introduced the following bill; which was referred to the Com-
mittee on Financial Services 
NOVEMBER 16, 2017 
Additional sponsors: Mr. RODNEY
DAVIS
of Illinois, Mr. ROSS, Mr. 
LOUDERMILK, Mr. EMMER, Mr. GRAVES of Missouri, Mr. LATTA, and 
Mr. FASO 
NOVEMBER 16, 2017 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on May 25, 2017] 
VerDate Sep 11 2014 
21:35 Nov 16, 2017
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H2706.RH
H2706
daltland on DSK30NT082PROD with BILLS
A BILL 
To provide requirements for the appropriate Federal banking 
agencies when requesting or ordering a depository insti-
tution to terminate a specific customer account, to pro-
vide for additional requirements related to subpoenas 
issued under the Financial Institutions Reform, Recov-
ery, and Enforcement Act of 1989, and for other pur-
poses. 
VerDate Sep 11 2014 
21:35 Nov 16, 2017
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6652
E:\BILLS\H2706.RH
H2706
daltland on DSK30NT082PROD with BILLS
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 
Customer Protection Act of 2017’’. 
SEC. 2. REQUIREMENTS FOR DEPOSIT ACCOUNT TERMI-
NATION REQUESTS AND ORDERS. 
(a) TERMINATION REQUESTS OR ORDERS MUST BE 
VALID.— 
(1) IN GENERAL.—An appropriate Federal bank-
ing agency may not formally or informally request or 
order a depository institution to terminate a specific 
customer account or group of customer accounts or to 
otherwise restrict or discourage a depository institu-
tion from entering into or maintaining a banking re-
lationship with a specific customer or group of cus-
tomers unless— 
(A) the agency has a valid reason for such 
request or order; and 
(B) such reason is not based solely on rep-
utation risk. 
(2) 
TREATMENT
OF
NATIONAL
SECURITY 
THREATS.—If an appropriate Federal banking agen-
cy believes a specific customer or group of customers 
is, or is acting as a conduit for, an entity which— 
VerDate Sep 11 2014 
21:35 Nov 16, 2017
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6203
E:\BILLS\H2706.RH
H2706
daltland on DSK30NT082PROD with BILLS
(A) poses a threat to national security; 
(B) is involved in terrorist financing; 
(C) is an agency of the Government of Iran, 
North Korea, Syria, or any country listed from 
time to time on the State Sponsors of Terrorism 
list; 
(D) is located in, or is subject to the juris-
diction of, any country specified in subpara-
graph (C); or 
(E) does business with any entity described 
in subparagraph (C) or (D), unless the appro-
priate Federal banking agency determines that 
the customer or group of customers has used due 
diligence to avoid doing business with any entity 
described in subparagraph (C) or (D), 
such belief shall satisfy the requirement under para-
graph (1). 
(b) NOTICE REQUIREMENT.— 
(1) IN
GENERAL.—If an appropriate Federal 
banking agency formally or informally requests or or-
ders a depository institution to terminate a specific 
customer account or a group of customer accounts, the 
agency shall— 
(A) provide such request or order to the in-
stitution in writing; and 
VerDate Sep 11 2014 
21:35 Nov 16, 2017
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6203
E:\BILLS\H2706.RH
H2706
daltland on DSK30NT082PROD with BILLS
(B) accompany such request or order with 
a written justification for why such termination 
is needed, including any specific laws or regula-
tions the agency believes are being violated by 
the customer or group of customers, if any. 
(2) JUSTIFICATION REQUIREMENT.—A justifica-
tion described under paragraph (1)(B) may not be 
based solely on the reputation risk to the depository 
institution. 
(c) CUSTOMER NOTICE.— 
(1) NOTICE
REQUIRED.—Except as provided 
under paragraph (2), if an appropriate Federal bank-
ing agency orders a depository institution to termi-
nate a specific customer account or a group of cus-
tomer accounts, the depository institution shall in-
form the customer or customers of the justification for 
the customer’s account termination described under 
subsection (b). 
(2) NOTICE PROHIBITED IN CASES OF NATIONAL 
SECURITY.—If an appropriate Federal banking agen-
cy requests or orders a depository institution to ter-
minate a specific customer account or a group of cus-
tomer accounts based on a belief that the customer or 
customers pose a threat to national security, or are 
otherwise described under subsection (a)(2), neither 
VerDate Sep 11 2014 
21:35 Nov 16, 2017
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6203
E:\BILLS\H2706.RH
H2706
daltland on DSK30NT082PROD with BILLS
the depository institution nor the appropriate Federal 
banking agency may inform the customer or cus-
tomers of the justification for the customer’s account 
termination. 
(d) REPORTING REQUIREMENT.—Each appropriate 
Federal banking agency shall issue an annual report to the 
Congress stating— 
(1) the aggregate number of specific customer ac-
counts that the agency requested or ordered a deposi-
tory institution to terminate during the previous 
year; and 
(2) the legal authority on which the agency re-
lied in making such requests and orders and the fre-
quency on which the agency relied on each such au-
thority. 
(e) DEFINITIONS.—For purposes of this section: 
(1) APPROPRIATE FEDERAL BANKING AGENCY.— 
The term ‘‘appropriate Federal banking agency’’ 
means— 
(A) the appropriate Federal banking agen-
cy, as defined under section 3 of the Federal De-
posit Insurance Act (12 U.S.C. 1813); and 
(B) the National Credit Union Administra-
tion, in the case of an insured credit union. 
VerDate Sep 11 2014 
21:35 Nov 16, 2017
Jkt 079200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6203
E:\BILLS\H2706.RH
H2706
daltland on DSK30NT082PROD with BILLS
(2) DEPOSITORY INSTITUTION.—The term ‘‘de-
pository institution’’ means— 
(A) a depository institution, as defined 
under section 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813); and 
(B) an insured credit union. 
VerDate Sep 11 2014 
21:35 Nov 16, 2017
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6203
E:\BILLS\H2706.RH
H2706
daltland on DSK30NT082PROD with BILLS