SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Coordinating Oversight, Upgrading and Innovating 
Technology, and Examiner Reform Act of 2019’’ or the 
‘‘COUNTER Act of 2019’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Bank Secrecy Act definition. 
Sec. 3. Determination of Budgetary Effects. 
TITLE I—STRENGTHENING TREASURY 
Sec. 101. Improving the definition and purpose of the Bank Secrecy Act. 
Sec. 102. Special hiring authority. 
Sec. 103. Civil Liberties and Privacy Officer. 
Sec. 104. Civil Liberties and Privacy Council. 
Sec. 105. International coordination. 
Sec. 106. Treasury Attache´s Program. 
Sec. 107. Increasing technical assistance for international cooperation. 
Sec. 108. FinCEN Domestic Liaisons. 
Sec. 109. FinCEN Exchange. 
Sec. 110. Study and strategy on trade-based money laundering. 
Sec. 111. Study and strategy on de-risking. 
Sec. 112. AML examination authority delegation study. 
Sec. 113. Study and strategy on Chinese money laundering. 
TITLE II—IMPROVING AML/CFT OVERSIGHT 
Sec. 201. Pilot program on sharing of suspicious activity reports within a finan-
cial group. 
Sec. 202. Sharing of compliance resources. 
Sec. 203. GAO Study on feedback loops. 
Sec. 204. FinCEN study on BSA value. 
Sec. 205. Sharing of threat pattern and trend information. 
Sec. 206. Modernization and upgrading whistleblower protections. 
Sec. 207. Certain violators barred from serving on boards of United States fi-
nancial institutions. 
Sec. 208. Additional damages for repeat Bank Secrecy Act violators. 
Sec. 209. Justice annual report on deferred and non-prosecution agreements. 
Sec. 210. Return of profits and bonuses. 
Sec. 211. Application of Bank Secrecy Act to dealers in antiquities. 
Sec. 212. Geographic targeting order. 
Sec. 213. Study and revisions to currency transaction reports and suspicious 
activity reports. 
Sec. 214. Streamlining requirements for currency transaction reports and sus-
picious activity reports.
TITLE III—MODERNIZING THE AML SYSTEM 
Sec. 301. Encouraging innovation in BSA compliance. 
Sec. 302. Innovation Labs. 
Sec. 303. Innovation Council. 
Sec. 304. Testing methods rulemaking. 
Sec. 305. FinCEN study on use of emerging technologies. 
Sec. 306. Discretionary surplus funds. 
SEC. 2. BANK SECRECY ACT DEFINITION. 
Section 5312(a) of title 31, United States Code, is 
amended by adding at the end the following: 
‘‘(7) BANK SECRECY ACT.—The term ‘Bank Se-
crecy act’ means— 
‘‘(A) section 21 of the Federal Deposit In-
surance Act; 
‘‘(B) chapter 2 of title I of Public Law 91– 
508; and 
‘‘(C) this subchapter.’’. 
SEC. 3. DETERMINATION OF BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the House Budget Committee, pro-
vided that such statement has been submitted prior to the 
vote on passage.
TITLE I—STRENGTHENING 
TREASURY 
SEC. 101. IMPROVING THE DEFINITION AND PURPOSE OF 
THE BANK SECRECY ACT. 
Section 5311 of title 31, United States Code, is 
amended— 
(1) by inserting ‘‘to protect our national secu-
rity, to safeguard the integrity of the international 
financial system, and’’ before ‘‘to require’’; and 
(2) by inserting ‘‘to law enforcement and’’ be-
fore ‘‘in criminal’’. 
SEC. 102. SPECIAL HIRING AUTHORITY. 
(a) IN GENERAL.—Section 310 of title 31, United 
States Code, is amended— 
(1) by redesignating subsection (d) as sub-
section (g); and 
(2) by inserting after subsection (c) the fol-
lowing: 
‘‘(d) SPECIAL HIRING AUTHORITY.— 
‘‘(1) IN
GENERAL.—The Secretary of the 
Treasury may appoint, without regard to the provi-
sions of sections 3309 through 3318 of title 5, can-
didates directly to positions in the competitive serv-
ice (as defined in section 2102 of that title) in 
FinCEN.
‘‘(2) PRIMARY
RESPONSIBILITIES.—The pri-
mary responsibility of candidates appointed pursuant 
to paragraph (1) shall be to provide substantive sup-
port in support of the duties described in subpara-
graphs (A), (B), (E), and (F) of subsection (b)(2).’’. 
(b) REPORT.—Not later than 360 days after the date 
of enactment of this Act, and every year thereafter for 
7 years, the Director of the Financial Crimes Enforcement 
Network shall submit 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 that includes— 
(1) the number of new employees hired since 
the preceding report through the authorities de-
scribed under section 310(d) of title 31, United 
States Code, along with position titles and associ-
ated pay grades for such hires; and 
(2) a copy of any Federal Government survey of 
staff perspectives at the Office of Terrorism and Fi-
nancial Intelligence, including findings regarding the 
Office and the Financial Crimes Enforcement Net-
work from the most recently administered Federal 
Employee Viewpoint Survey.
SEC. 103. CIVIL LIBERTIES AND PRIVACY OFFICER. 
(a) APPOINTMENT OF OFFICERS.—Not later than the 
end of the 3-month period beginning on the date of enact-
ment of this Act, a Civil Liberties and Privacy Officer 
shall be appointed, from among individuals who are attor-
neys with expertise in data privacy laws— 
(1) within each Federal functional regulator, by 
the head of the Federal functional regulator; 
(2) within the Financial Crimes Enforcement 
Network, by the Secretary of the Treasury; and 
(3) within the Internal Revenue Service Small 
Business and Self-Employed Tax Center, by the Sec-
retary of the Treasury. 
(b) DUTIES.—Each Civil Liberties and Privacy Offi-
cer shall, with respect to the applicable regulator, Net-
work, or Center within which the Officer is located— 
(1) be consulted each time Bank Secrecy Act or 
anti-money laundering regulations affecting civil lib-
erties or privacy are developed or reviewed; 
(2) be consulted on information-sharing pro-
grams, including those that provide access to person-
ally identifiable information; 
(3) ensure coordination and clarity between 
anti-money laundering, civil liberties, and privacy 
regulations;
(4) contribute to the evaluation and regulation 
of new technologies that may strengthen data pri-
vacy and the protection of personally identifiable in-
formation collected by each Federal functional regu-
lator; and 
(5) develop metrics of program success. 
(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’’ means the 
Board of Governors of the Federal Reserve System, 
the Comptroller of the Currency, the Federal De-
posit Insurance Corporation, the National Credit 
Union Administration, the Securities and Exchange 
Commission, and the Commodity Futures Trading 
Commission. 
SEC. 104. CIVIL LIBERTIES AND PRIVACY COUNCIL. 
(a) ESTABLISHMENT.—There is established the Civil 
Liberties and Privacy Council (hereinafter in this section 
referred to as the ‘‘Council’’), which shall consist of the 
Civil Liberties and Privacy Officers appointed pursuant to 
section 103.
(b) CHAIR.—The Director of the Financial Crimes 
Enforcement Network shall serve as the Chair of the 
Council. 
(c) DUTY.—The members of the Council shall coordi-
nate on activities related to their duties as Civil Liberties 
Privacy Officers, but may not supplant the individual 
agency determinations on civil liberties and privacy. 
(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 quarterly; 
(2) may include open and partially closed ses-
sions, as determined necessary by the Council; and 
(3) shall include participation by public and pri-
vate entities, law enforcement agencies, and a rep-
resentative of State bank supervisors (as defined 
under section 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813)). 
(e) REPORT.—The Chair of the Council shall issue 
an annual report to the Congress on the program and pol-
icy activities, including the success of programs as meas-
ured by metrics of program success developed pursuant 
to section 103(b)(5), of the Council during the previous 
year and any legislative recommendations that the Council 
may have.
(f) NONAPPLICABILITY OF FACA.—The Federal Ad-
visory Committee Act (5 U.S.C. App.) shall not apply to 
the Council. 
SEC. 105. INTERNATIONAL COORDINATION. 
(a) IN GENERAL.—The Secretary of the Treasury 
shall work with the Secretary’s foreign counterparts, in-
cluding through the Financial Action Task Force, the 
International Monetary Fund, the World Bank, the 
Egmont Group of Financial Intelligence Units, the 
Organisation for Economic Co-operation and Develop-
ment, and the United Nations, to promote stronger anti- 
money laundering frameworks and enforcement of anti- 
money laundering laws. 
(b) COOPERATION GOAL.—In carrying out subsection 
(a), the Secretary of the Treasury may work directly with 
foreign counterparts and other organizations where the 
goal of cooperation can best be met. 
(c) INTERNATIONAL MONETARY FUND.— 
(1) SUPPORT FOR CAPACITY OF THE INTER-
NATIONAL
MONETARY
FUND
TO
PREVENT
MONEY 
LAUNDERING
AND
FINANCING
OF
TERRORISM.— 
Title XVI of the International Financial Institutions 
Act (22 U.S.C. 262p et seq.) is amended by adding 
at the end the following:
‘‘SEC. 1629. SUPPORT FOR CAPACITY OF THE INTER-
NATIONAL MONETARY FUND TO PREVENT 
MONEY LAUNDERING AND FINANCING OF 
TERRORISM. 
‘‘The Secretary of the Treasury shall instruct the 
United States Executive Director at the International 
Monetary Fund to support the increased use of the admin-
istrative budget of the Fund for technical assistance that 
strengthens the capacity of Fund members to prevent 
money laundering and the financing of terrorism.’’. 
(2) NATIONAL ADVISORY COUNCIL REPORT TO 
CONGRESS.—The Chairman of the National Advisory 
Council on International Monetary and Financial 
Policies shall include in the report required by sec-
tion 1701 of the International Financial Institutions 
Act (22 U.S.C. 262r) a description of— 
(A) the activities of the International Mon-
etary Fund in the most recently completed fis-
cal year to provide technical assistance that 
strengthens the capacity of Fund members to 
prevent money laundering and the financing of 
terrorism, and the effectiveness of the assist-
ance; and 
(B) the efficacy of efforts by the United 
States to support such technical assistance
through the use of the Fund’s administrative 
budget, and the level of such support. 
(3) SUNSET.—Effective on the date that is the 
end of the 4-year period beginning on the date of en-
actment of this Act, section 1629 of the Inter-
national Financial Institutions Act, as added by 
paragraph (1), is repealed. 
SEC. 106. TREASURY ATTACHE´ S PROGRAM. 
(a) IN GENERAL.—Title 31, United States Code, is 
amended by inserting after section 315 the following: 
‘‘§ 316. Treasury Attache´s Program 
‘‘(a) IN GENERAL.—There is established the Treas-
ury Attache´s Program, under which the Secretary of the 
Treasury shall appoint employees of the Department of 
the Treasury, after nomination by the Director of the Fi-
nancial Crimes Enforcement Network (‘FinCEN’), as a 
Treasury attache´, who shall— 
‘‘(1) be knowledgeable about the 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 
through 
FinCEN and FinCEN programs; 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 
‘‘(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 six more employees than the num-
ber of employees of the Department of the Treasury serv-
ing 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 at a comparable career level 
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´s Program.’’. 
SEC. 
107. 
INCREASING 
TECHNICAL 
ASSISTANCE 
FOR 
INTERNATIONAL COOPERATION. 
(a) IN GENERAL.—There is authorized to be appro-
priated for each of fiscal years 2020 through 2024 to the 
Secretary of the Treasury for purposes of providing tech-
nical assistance that promotes compliance with inter-
national standards and best practices, including in par-
ticular those aimed at the establishment of effective anti- 
money laundering and countering the financing of ter-
rorism regimes, in an amount equal to twice the amount 
authorized for such purpose for fiscal year 2019.
ance, including any findings regarding the Office 
from the most recently administered Federal Em-
ployee Viewpoint Survey. 
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 six 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 the Board of Gov-
ernors of the Federal Reserve System in such 
region); and 
‘‘(C) perform outreach to BSA officers at 
financial institutions (including non-bank finan-
cial institutions) and persons who are not finan-
cial institutions, especially with respect to ac-
tions taken by FinCEN that require specific ac-
tions by, or have specific effects on, such insti-
tutions or persons, as determined by the Direc-
tor.
‘‘(2) DEFINITIONS.—In this subsection: 
‘‘(A) BSA OFFICER.—The term ‘BSA offi-
cer’ means an employee of a financial institu-
tion whose primary job responsibility involves 
compliance with the Bank Secrecy Act, as such 
term is defined under section 5312. 
‘‘(B) FINANCIAL INSTITUTION.—The term 
‘financial institution’ has the meaning given 
that term under section 5312.’’. 
SEC. 109. FINCEN EXCHANGE. 
Section 310 of title 31, United States Code, as 
amended by section 108, is further amended by inserting 
after subsection (e) the following: 
‘‘(f) FINCEN EXCHANGE.— 
‘‘(1) 
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 before the date of 
enactment of this paragraph. 
‘‘(2) PURPOSE.—The FinCEN Exchange shall 
facilitate a voluntary public-private information 
sharing partnership among law enforcement, finan-
cial institutions, and FinCEN to—
‘‘(A) effectively and efficiently combat 
money laundering, terrorism financing, orga-
nized crime, and other financial crimes; 
‘‘(B) protect the financial system from il-
licit use; and 
‘‘(C) promote national security. 
‘‘(3) REPORT.— 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this subsection, 
and annually thereafter for the next 5 years, 
the Secretary of the Treasury shall submit to 
the Committee on Financial Services of the 
House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the 
Senate a report containing— 
‘‘(i) an analysis of the efforts under-
taken by the FinCEN Exchange and the 
results of such efforts; 
‘‘(ii) an analysis of the extent and ef-
fectiveness of the FinCEN Exchange, in-
cluding any benefits realized by law en-
forcement from partnership with financial 
institutions; and 
‘‘(iii) any legislative, administrative, 
or other recommendations the Secretary
may have to strengthen FinCEN Exchange 
efforts. 
‘‘(B) CLASSIFIED
ANNEX.—Each report 
under subparagraph (A) may include a classi-
fied annex. 
‘‘(4) INFORMATION SHARING REQUIREMENT.— 
Information shared pursuant to this subsection shall 
be shared in compliance with all other applicable 
Federal laws and regulations. 
‘‘(5) RULE OF CONSTRUCTION.—Nothing under 
this subsection may be construed to create new in-
formation sharing authorities related to the Bank 
Secrecy Act (as such term is defined under section 
5312 of title 31, United States Code). 
‘‘(6) FINANCIAL
INSTITUTION
DEFINED.—In 
this subsection, the term ‘financial institution’ has 
the meaning given that term under section 5312.’’. 
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 appropriate private 
sector stakeholders and Federal departments and agen-
cies, on trade-based money laundering. 
(b) REPORT.—Not later than the end of the 1-year 
period beginning on the date of the enactment of this Act,
the Secretary shall issue a report to the Congress con-
taining— 
(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. 
(d) CONTRACTING AUTHORITY.—The Secretary may 
contract with a private third-party to carry out the study 
required under this section. The authority of the Secretary 
to enter into contracts under this subsection shall be in 
effect for each fiscal year only to the extent and in the 
amounts as are provided in advance in appropriations 
Acts. 
SEC. 111. STUDY AND STRATEGY ON DE-RISKING. 
(a) REVIEW.—The Secretary of the Treasury, in con-
sultation with appropriate private sector stakeholders, ex-
aminers, the Federal functional regulators (as defined 
under section 103), State bank supervisors, and other rel-
evant stakeholders, shall undertake a formal review of— 
(1) any 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) and their agents, countries, international and 
domestic 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; 
(4) the most appropriate ways to promote fi-
nancial inclusion, particularly with respect to devel-
oping countries, while maintaining compliance with 
the Bank Secrecy Act, including an assessment of 
policy options to— 
(A) more effectively tailor Federal actions 
and penalties to the size of foreign financial in-
stitutions and any capacity limitations of for-
eign governments; and 
(B) reduce compliance costs that may lead 
to the adverse consequences described in para-
graph (1); 
(5) formal and informal feedback provided by 
examiners that may have led to de-risking; 
(6) the relationship between resources dedicated 
to compliance and overall sophistication of compli-
ance efforts at entities that may be experiencing de- 
risking versus those that have not experienced de- 
risking; and 
(7) any best practices from the private sector 
that facilitate correspondent bank relationships. 
(b) DE-RISKING STRATEGY.—The Secretary shall de-
velop a strategy to reduce de-risking and adverse con-
sequences related to de-risking. 
(c) 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, State bank supervisors, and other relevant 
stakeholders, shall issue a report to the Congress con-
taining— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
(2) the strategy developed pursuant to sub-
section (b). 
(d) DEFINITIONS.—In this section: 
(1) 
DE-RISKING.—The 
term 
‘‘de-risking’’ 
means the wholesale closing of accounts or limiting 
of financial services for a category of customer due 
to unsubstantiated risk as it relates to compliance 
with the Bank Secrecy Act.
(2) BSA TERMS.—The terms ‘‘Bank Secrecy 
Act’’ and ‘‘financial institution’’ have the meaning 
given those terms, respectively, under section 5312 
off title 31, United States Code. 
(3) 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. 112. AML EXAMINATION AUTHORITY DELEGATION 
STUDY. 
(a) STUDY.—The Secretary of the Treasury shall 
carry out a study, in consultation with State bank super-
visors (as defined under section 3 of the Federal Deposit 
Insurance Act (12 U.S.C. 1813)), and other relevant 
stakeholders, on the Secretary’s delegation of examination 
authority under the Bank Secrecy Act, including— 
(1) an evaluation of the efficacy of the delega-
tion, especially with respect to the mission of the 
Bank Secrecy Act; 
(2) whether the delegated agencies have appro-
priate resources to perform their delegated respon-
sibilities; and 
(3) whether the examiners in delegated agencies 
have sufficient training and support to perform their 
responsibilities.
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Secretary of the Treasury 
shall submit to the Committee on Financial Services of 
the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate a re-
port containing— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
(2) recommendations to improve the efficacy of 
delegation authority, including the potential for de- 
delegation of any or all such authority where it may 
be appropriate. 
(c) BANK
SECRECY
ACT
DEFINED.—The term 
‘‘Bank Secrecy Act’’ has the meaning given that term 
under section 5312 off title 31, United States Code. 
SEC. 113. STUDY AND STRATEGY ON CHINESE MONEY 
LAUNDERING. 
(a) STUDY.—The Secretary of the Treasury shall 
carry out a study on the extent and effect of Chinese 
money laundering activities in the United States, including 
territories and possessions of the United States, and 
worldwide. 
(b) STRATEGY TO COMBAT CHINESE MONEY LAUN-
DERING.—Upon the completion of the study required
under subsection (a), the Secretary shall, in consultation 
with such other Federal departments and agencies as the 
Secretary determines appropriate, develop a strategy to 
combat Chinese money laundering activities. 
(c) REPORT.—Not later than the end of the 1-year 
period beginning on the date of enactment of this Act, the 
Secretary of the Treasury shall issue a report to Congress 
containing— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
and 
(2) the strategy developed under subsection (b). 
TITLE II—IMPROVING AML/CFT 
OVERSIGHT 
SEC. 201. PILOT PROGRAM ON SHARING OF SUSPICIOUS 
ACTIVITY REPORTS WITHIN A FINANCIAL 
GROUP. 
(a) IN GENERAL.— 
(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) PILOT PROGRAM ON SHARING WITH FOR-
EIGN BRANCHES, SUBSIDIARIES, AND AFFILIATES.—
‘‘(A) IN GENERAL.—The Secretary of the 
Treasury shall issue rules establishing the pilot 
program described under subparagraph (B), 
subject to such controls and restrictions as the 
Director of the Financial Crimes Enforcement 
Network determines appropriate, including con-
trols and restrictions regarding participation by 
financial institutions and jurisdictions in the 
pilot program. In prescribing such rules, the 
Secretary shall ensure that the sharing of infor-
mation described under such subparagraph (B) 
is subject to appropriate standards and require-
ments regarding data security and the confiden-
tiality of personally identifiable information. 
‘‘(B) PILOT
PROGRAM
DESCRIBED.—The 
pilot program required under this paragraph 
shall— 
‘‘(i) permit a financial institution with 
a reporting obligation under this sub-
section to share reports (and information 
on such reports) under this subsection with 
the institution’s foreign branches, subsidi-
aries, and affiliates for the purpose of com-
bating illicit finance risks, notwithstanding
any other provision of law except subpara-
graphs (A) and (C); 
‘‘(ii) terminate on the date that is 5 
years after the date of enactment of this 
paragraph, except that the Secretary may 
extend the pilot program for up to 2 years 
upon submitting a report to the Committee 
on Financial Services of the House of Rep-
resentatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the 
Senate that includes— 
‘‘(I) a certification that the ex-
tension is in the national interest of 
the United States, with a detailed ex-
planation of the reasons therefor; 
‘‘(II) an evaluation of the useful-
ness of the pilot program, including a 
detailed analysis of any illicit activity 
identified or prevented as a result of 
the program; and 
‘‘(III) a detailed legislative pro-
posal providing for a long-term exten-
sion of the pilot program activities, in-
cluding expected budgetary resources 
for the activities, if the Secretary de-
termines that a long-term extension is 
appropriate. 
‘‘(C) PROHIBITION
INVOLVING
CERTAIN 
JURISDICTIONS.—In issuing the regulations re-
quired under subparagraph (A), the Secretary 
may not permit a financial institution to share 
information on reports under this subsection 
with a foreign branch, subsidiary, or affiliate lo-
cated in— 
‘‘(i) the People’s Republic of China; 
‘‘(ii) the Russian Federation; or 
‘‘(iii) a jurisdiction that— 
‘‘(I) 
is 
subject 
to 
counter-
measures imposed by the Federal 
Government; 
‘‘(II) is a state sponsor of ter-
rorism; or 
‘‘(III) the Secretary has deter-
mined cannot reasonably protect the 
privacy and confidentiality of such in-
formation or would otherwise use such 
information in a manner that is not 
consistent with the national interest of 
the United States.
‘‘(D) IMPLEMENTATION
UPDATES.—Not 
later than 360 days after the date rules are 
issued under subparagraph (A), and annually 
thereafter for 3 years, the Secretary, or the 
Secretary’s designee, shall brief the Committee 
on Financial Services of the House of Rep-
resentatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate on— 
‘‘(i) the degree of any information 
sharing permitted under the pilot program, 
and a description of criteria used by the 
Secretary to evaluate the appropriateness 
of the information sharing; 
‘‘(ii) the effectiveness of the pilot pro-
gram in identifying or preventing the viola-
tion of a United States law or regulation, 
and mechanisms that may improve such ef-
fectiveness; and 
‘‘(iii) any recommendations to amend 
the design of the pilot program. 
‘‘(E) RULE OF CONSTRUCTION.—Nothing 
in this paragraph shall be construed as limiting 
the Secretary’s authority under provisions of 
law other than this paragraph to establish other 
permissible purposes or methods for a financial
institution sharing reports (and information on 
such reports) under this subsection with the in-
stitution’s foreign headquarters or with other 
branches of the same institution. 
‘‘(F) NOTICE OF USE OF OTHER AUTHOR-
ITY.—If the Secretary, pursuant to any author-
ity other than that provided under this para-
graph, permits a financial institution to share 
information on reports under this subsection 
with a foreign branch, subsidiary, or affiliate lo-
cated in a foreign jurisdiction, the Secretary 
shall notify the Committee on Financial Serv-
ices of the House of Representatives and the 
Committee on Banking, Housing, and Urban 
Affairs of such permission and the applicable 
foreign jurisdiction. 
‘‘(6) TREATMENT OF FOREIGN JURISDICTION- 
ORIGINATED REPORTS.—A report received by a fi-
nancial institution from a foreign affiliate with re-
spect to a suspicious transaction relevant to a pos-
sible violation of law or regulation shall be subject 
to the same confidentiality requirements provided 
under this subsection for a report of a suspicious 
transaction described under paragraph (1).’’.
(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’’; 
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,’’. 
(b) RULEMAKING.—Not later than the end of the 
360-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. 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 efficiently 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. 
SEC. 203. GAO STUDY ON FEEDBACK LOOPS. 
(a) STUDY.—The Comptroller General of the United 
States shall carry out a study on— 
(1) best practices within the United States Gov-
ernment 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 inside or outside 
the United States for providing feedback through 
sensitive information and public-private partnership 
information 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— 
(1) all findings and determinations made in car-
rying out the study required under subsection (a); 
(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 United States ef-
forts to combat money laundering and other forms 
of illicit finance; and 
(3) recommendations to reduce or eliminate any 
unnecessary Government collection of the informa-
tion described under subsection (a)(1). 
SEC. 204. 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 30-day 
period beginning on the date the study under subsection 
(a) is completed, the Director shall issue a 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 containing all findings and 
determinations made in carrying out the study required 
under this section. 
(c) CLASSIFIED ANNEX.—The report required under 
this section may include a classified annex, if the Director 
determines it appropriate. 
(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. 205. SHARING OF THREAT PATTERN AND TREND IN-
FORMATION. 
Section 5318(g) of title 31, United States Code, as 
amended by section 201(a)(1), is further amended by add-
ing at the end the following: 
‘‘(7) SHARING
OF
THREAT
PATTERN
AND 
TREND INFORMATION.— 
‘‘(A) SAR ACTIVITY REVIEW.—The Direc-
tor of the Financial Crimes Enforcement Net-
work shall restart publication of the ‘SAR Ac-