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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 
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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 
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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-
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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-
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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-
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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. 7202. 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).’’. 
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(b) RULE
OF
CONSTRUCTION.—The amendment 
made by subsection (a) may not be construed to require 
financial institutions to share resources. 
SEC. 7203. 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 
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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. 7204. 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 
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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. 7205. SHARING OF THREAT PATTERN AND TREND IN-
FORMATION. 
Section 5318(g) of title 31, United States Code, as 
amended by section 7201(a)(1), is further amended by 
adding 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-
tivity Review – Trends, Tips & Issues’, on not 
less than a semi-annual basis, to provide mean-
ingful information about the preparation, use, 
and value of reports filed under this subsection 
by financial institutions, as well as other re-
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ports filed by financial institutions under the 
Bank Secrecy Act. 
‘‘(B) INCLUSION OF TYPOLOGIES.—In each 
publication described under subparagraph (A), 
the Director shall provide financial institutions 
with typologies, including data that can be 
adapted in algorithms (including for artificial 
intelligence and machine learning programs) 
where appropriate, on emerging money laun-
dering and counter terror financing threat pat-
terns and trends. 
‘‘(C) TYPOLOGY DEFINED.—For purposes 
of this paragraph, the term ‘typology’ means 
the various techniques used to launder money 
or finance terrorism.’’. 
SEC. 7206. 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 a reward under this section, the Secretary may, 
subject to amounts made available in advance by appro-
priation Acts, use criminal fine, civil penalty, or forfeiture 
amounts recovered based on the original information with 
respect to which the reward is being paid.’’. 
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(b) WHISTLEBLOWER INCENTIVES.—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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‘‘(b) AWARDS.— 
‘‘(1) IN GENERAL.—In any covered judicial or 
administrative action, or related action, the Sec-
retary, under such rules as the Secretary may issue 
and subject to subsection (c), shall pay an award or 
awards to 1 or more whistleblowers who voluntarily 
provided original information to FinCEN that led to 
the successful enforcement of the covered judicial or 
administrative action, or related action, in an aggre-
gate amount equal to not more than 30 percent, in 
total, of what has been collected of the monetary 
sanctions imposed in the action. 
‘‘(2) SOURCE OF AWARDS.—For the purposes of 
paying any award under paragraph (1), the Sec-
retary may, subject to amounts made available in 
advance by appropriation Acts, use monetary sanc-
tion amounts recovered based on the original infor-
mation with respect to which the award is being 
paid. 
‘‘(c) DETERMINATION OF AMOUNT OF AWARD; DE-
NIAL OF AWARD.— 
‘‘(1) 
DETERMINATION
OF
AMOUNT
OF 
AWARD.— 
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‘‘(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 shall take into 
consideration— 
‘‘(i) the significance of the informa-
tion provided by the whistleblower to the 
success of the covered judicial or adminis-
trative action; 
‘‘(ii) the degree of assistance provided 
by the whistleblower and any legal rep-
resentative of the whistleblower in a cov-
ered judicial or administrative action; 
‘‘(iii) the mission of FinCEN in deter-
ring violations of the law by making 
awards to whistleblowers who provide in-
formation that lead to the successful en-
forcement of such laws; and 
‘‘(iv) such additional relevant factors 
as the Secretary may establish by rule. 
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‘‘(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, or who the Secretary 
has a reasonable basis to believe committed a 
criminal violation, related to the judicial or ad-
ministrative action for which the whistleblower 
otherwise could receive an award under this sec-
tion; 
‘‘(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. 
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‘‘(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. 
‘‘(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 
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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. 
‘‘(f) EMPLOYEE PROTECTIONS.—The Secretary of 
the Treasury shall issue regulations protecting a whistle-
blower from retaliation, which shall be as close as prac-
ticable to the employee protections provided for under sec-
tion 1057 of the Consumer Financial Protection Act of 
2010.’’; 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. 7207. CERTAIN VIOLATORS BARRED FROM SERVING 
ON BOARDS OF UNITED STATES FINANCIAL 
INSTITUTIONS. 
Section 5321 of title 31, United States Code, is 
amended by adding at the end the following: 
‘‘(f) CERTAIN VIOLATORS BARRED FROM SERVING 
ON BOARDS OF UNITED STATES FINANCIAL INSTITU-
TIONS.— 
‘‘(1) IN
GENERAL.—An individual found to 
have committed an egregious violation of a provision 
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of (or rule issued under) the Bank Secrecy Act shall 
be barred from serving on the board of directors of 
a United States financial institution for a 10-year 
period beginning on the date of such finding. 
‘‘(2) EGREGIOUS
VIOLATION
DEFINED.—With 
respect to an individual, the term ‘egregious viola-
tion’ means— 
‘‘(A) a felony criminal violation for which 
the individual was convicted; and 
‘‘(B) a civil violation where the individual 
willfully committed such violation and the viola-
tion facilitated money laundering or the financ-
ing of terrorism.’’. 
SEC. 7208. ADDITIONAL DAMAGES FOR REPEAT BANK SE-
CRECY ACT VIOLATORS. 
(a) IN GENERAL.—Section 5321 of title 31, United 
States Code, as amended by section 7208, 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 been convicted of a criminal provision of 
(or rule issued under) the Bank Secrecy Act or who has 
admitted, as part of a deferred- or non-prosecution agree-
ment, to having previously committed a violation of a 
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criminal provision of (or rule issued under) the Bank Se-
crecy Act, the Secretary may impose an additional civil 
penalty against such person for each additional such viola-
tion in an amount equal to up three times the profit 
gained or loss avoided by such person as a result of the 
violation.’’. 
(b) PROSPECTIVE APPLICATION OF AMENDMENT.— 
For purposes of determining whether a person has com-
mitted a previous violation under section 5321(g) of title 
31, United States Code, such determination shall only in-
clude violations occurring after the date of enactment of 
this Act. 
SEC. 7209. JUSTICE ANNUAL REPORT ON DEFERRED AND 
NON-PROSECUTION AGREEMENTS. 
(a) ANNUAL REPORT.—The Attorney General shall 
issue an annual report, every year for the 5 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-
ing, and Urban Affairs and the Judiciary of the Senate 
containing— 
(1) a list of deferred prosecution agreements 
and non-prosecution agreements that the Attorney 
General has entered into during the previous year 
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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. 7210. RETURN OF PROFITS AND BONUSES. 
(a) IN GENERAL.—Section 5322 of title 31, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(e) RETURN OF PROFITS AND BONUSES.—A person 
convicted of violating a provision of (or rule issued under) 
the Bank Secrecy Act shall— 
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‘‘(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 financial 
institution at the time the violation occurred, repay 
to such financial institution any bonus paid to such 
individual during the Federal fiscal year in which 
the violation occurred or the Federal fiscal year 
after which the violation occurred.’’. 
(b) RULE
OF
CONSTRUCTION.—The amendment 
made by subsection (a) may not be construed to prohibit 
a financial institution from requiring the repayment of a 
bonus paid to a partner, director, officer, or employee if 
the financial institution determines that the partner, di-
rector, officer, or employee engaged in unethical, but non- 
criminal, activities. 
SEC. 7211. APPLICATION OF BANK SECRECY ACT TO DEAL-
ERS IN 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; 
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(2) by redesignating subparagraph (Z) as sub-
paragraph (AA); and 
(3) by inserting after subsection (Y) the fol-
lowing: 
‘‘(Z) a person trading or acting as an 
intermediary in the trade of antiquities, includ-
ing an advisor, consultant or any other person 
who engages as a business in the solicitation of 
the sale of antiquities; or’’. 
(b) STUDY ON THE FACILITATION OF MONEY LAUN-
DERING AND TERROR FINANCE THROUGH THE TRADE OF 
WORKS OF ART OR ANTIQUITIES.— 
(1) STUDY.—The Secretary of the Treasury, in 
coordination with Federal Bureau of Investigation, 
the Attorney General, and Homeland Security Inves-
tigations, shall perform a study on the facilitation of 
money laundering and terror finance through the 
trade of works of art or antiquities, including an 
analysis of— 
(A) the extent to which the facilitation of 
money laundering and terror finance through 
the trade of works of art or antiquities may 
enter or affect the financial system of the 
United States, including any qualitative data or 
statistics; 
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(B) whether thresholds and definitions 
should apply in determining which entities to 
regulate; 
(C) an evaluation of which markets, by 
size, entity type, domestic or international geo-
graphical locations, or otherwise, should be sub-
ject to regulations, but only to the extent such 
markets are not already required to report on 
the trade of works of art or antiquities to the 
Federal Government; 
(D) an evaluation of whether certain ex-
emptions should apply; and 
(E) any other points of study or analysis 
the Secretary determines necessary or appro-
priate. 
(2) REPORT.—Not later than the end of the 
180-day period beginning on the date of the enact-
ment of this Act, the Secretary of the Treasury shall 
issue a report to the Committee on Financial Serv-
ices of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of 
the Senate containing all findings and determina-
tions made in carrying out the study required under 
paragraph (1). 
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(c) RULEMAKING.—Not later than the end of the 
180-day period beginning on the date the Secretary issues 
the report required under subsection (b)(2), the Secretary 
shall issue regulations to carry out the amendments made 
by subsection (a). 
SEC. 7212. GEOGRAPHIC TARGETING ORDER. 
The Secretary of the Treasury shall issue a geo-
graphic targeting order, similar to the order issued by the 
Financial Crimes Enforcement Network on November 15, 
2018, that— 
(1) applies to commercial real estate to the 
same extent, with the exception of having the same 
thresholds, as the order issued by FinCEN on No-
vember 15, 2018, applies to residential real estate; 
and 
(2) establishes a specific threshold for commer-
cial real estate. 
SEC. 7213. STUDY AND REVISIONS TO CURRENCY TRANS-
ACTION REPORTS AND SUSPICIOUS ACTIVITY 
REPORTS. 
(a) CURRENCY TRANSACTION REPORTS.— 
(1) CTR INDEXED FOR INFLATION.— 
(A) IN GENERAL.—Every 5 years after the 
date of enactment of this Act, the Secretary of 
the Treasury shall revise regulations issued 
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with respect to section 5313 of title 31, United 
States Code, to update each $10,000 threshold 
amount in such regulation to reflect the change 
in the Consumer Price Index for All Urban 
Consumers published by the Department of 
Labor, rounded to the nearest $100. For pur-
poses of calculating the change described in the 
previous sentence, the Secretary shall use 
$10,000 as the base amount and the date of en-
actment of this Act as the base date. 
(B) EXCEPTION.—Notwithstanding sub-
paragraph (A), the Secretary may make appro-
priate adjustments to the threshold amounts 
described under subparagraph (A) in high-risk 
areas (e.g., High Intensity Financial Crime 
Areas or HIFCAs), if the Secretary has demon-
strable evidence that shows a threshold raise 
would increase serious crimes, such as traf-
ficking, or endanger national security. 
(2) GAO CTR STUDY.— 
(A) STUDY.—The Comptroller General of 
the United States shall carry out a study of 
currency transaction reports. Such study shall 
include— 
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(i) a review (carried out in consulta-
tion with the Secretary of the Treasury, 
the Financial Crimes Enforcement Net-
work, the United States Attorney General, 
the State Attorneys General, and State, 
Tribal, and local law enforcement) of the 
effectiveness of the current currency trans-
action reporting regime; 
(ii) an analysis of the importance of 
currency transaction reports to law en-
forcement; and 
(iii) an analysis of the effects of rais-
ing the currency transaction report thresh-
old. 
(B) REPORT.—Not later than the end of 
the 1-year period beginning on the date of en-
actment of this Act, the Comptroller General 
shall issue a report to the Secretary of the 
Treasury and the Congress containing— 
(i) all findings and determinations 
made in carrying out the study required 
under subparagraph (A); and 
(ii) recommendations for improving 
the current currency transaction reporting 
regime. 
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(b) MODIFIED SARS STUDY AND DESIGN.— 
(1) STUDY.—The Director of the Financial 
Crimes Enforcement Network shall carry out a 
study, in consultation with industry stakeholders (in-
cluding 
money 
services 
businesses, 
community 
banks, and credit unions), the Federal functional 
regulators, State bank supervisors, and law enforce-
ment, of the design of a modified suspicious activity 
report form for certain customers and activities. 
Such study shall include— 
(A) an examination of appropriate optimal 
SARs thresholds to determine the level at which 
a modified SARs form could be employed; 
(B) an evaluation of which customers or 
transactions would be appropriate for a modi-
fied SAR, including— 
(i) seasoned business customers; 
(ii) financial technology (Fintech) 
firms; 
(iii) structuring transactions; and 
(iv) any other customer or transaction 
that may be appropriate for a modified 
SAR; and 
(C) an analysis of the most effective meth-
ods to reduce the regulatory burden imposed on 
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financial institutions in complying with the 
Bank Secrecy Act, including an analysis of the 
effect of— 
(i) modifying thresholds; 
(ii) shortening forms; 
(iii) combining Bank Secrecy Act 
forms; 
(iv) filing reports in periodic batches; 
and 
(v) any other method that may reduce 
the regulatory burden. 
(2) STUDY CONSIDERATIONS.—In carrying out 
the study required under paragraph (1), the Direc-
tor shall seek to balance law enforcement priorities, 
regulatory burdens experienced by financial institu-
tions, and the requirement for reports to have a 
‘‘high degree of usefulness to law enforcement’’ 
under the Bank Secrecy Act. 
(3) 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 Con-
gress containing— 
(A) all findings and determinations made 
in carrying out the study required under sub-
section (a); and 
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(B) sample designs of modified SARs 
forms based on the study results. 
(4) CONTRACTING AUTHORITY.—The Director 
may contract with a private third-party to carry out 
the study required under this subsection. The au-
thority of the Director to enter into contracts under 
this paragraph shall be in effect for each fiscal year 
only to the extent and in the amounts as are pro-
vided in advance in appropriations Acts. 
(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’’ has the mean-
ing given that term under section 7103. 
(3) REGULATORY BURDEN.—The term ‘‘regu-
latory burden’’ means the man-hours to complete fil-
ings, cost of data collection and analysis, and other 
considerations of chapter 35 of title 44, United 
States Code (commonly referred to as the Paper-
work Reduction Act). 
(4) SAR; SUSPICIOUS ACTIVITY REPORT.—The 
term ‘‘SAR’’ and ‘‘suspicious activity report’’ mean 
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a report of a suspicious transaction under section 
5318(g) of title 31, United States Code. 
(5) SEASONED
BUSINESS
CUSTOMER.—The 
term ‘‘seasoned business customer’’, shall have such 
meaning as the Secretary of the Treasury shall pre-
scribe, which shall include any person that— 
(A) is incorporated or organized under the 
laws of the United States or any State, or is 
registered as, licensed by, or otherwise eligible 
to do business within the United States, a 
State, or political subdivision of a State; 
(B) has maintained an account with a fi-
nancial institution for a length of time as deter-
mined by the Secretary; and 
(C) meet such other requirements as the 
Secretary may determine necessary or appro-
priate. 
(6) 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). 
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SEC. 7214. STREAMLINING REQUIREMENTS FOR CURRENCY 
TRANSACTION REPORTS AND SUSPICIOUS 
ACTIVITY REPORTS. 
(a) REVIEW.—The Secretary of the Treasury (in con-
sultation with Federal law enforcement agencies, the Di-
rector of National Intelligence, the Federal functional reg-
ulators, State bank supervisors, and other relevant stake-
holders) shall undertake a formal review of the current 
financial institution reporting requirements under the 
Bank Secrecy Act and its implementing regulations and 
propose changes to further reduce regulatory burdens, and 
ensure that the information provided is of a ‘‘high degree 
of usefulness’’ to law enforcement, as set forth under sec-
tion 5311 of title 31, United States Code. 
(b) CONTENTS.—The review required under sub-
section (a) shall include a study of— 
(1) whether the timeframe for filing a sus-
picious activity report should be increased from 30 
days; 
(2) whether or not currency transaction report 
and suspicious activity report thresholds should be 
tied to inflation or otherwise periodically be ad-
justed; 
(3) whether the circumstances under which a fi-
nancial institution determines whether to file a ‘‘con-
tinuing suspicious activity report’’, or the processes 
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followed by a financial institution in determining 
whether to file a ‘‘continuing suspicious activity re-
port’’ (or both) can be narrowed; 
(4) analyzing the fields designated as ‘‘critical’’ 
on the suspicious activity report form and whether 
the number of fields should be reduced; 
(5) the increased use of exemption provisions to 
reduce currency transaction reports that are of little 
or no value to law enforcement efforts; 
(6) the current financial institution reporting 
requirements under the Bank Secrecy Act and its 
implementing regulations and guidance; and 
(7) such other items as the Secretary deter-
mines appropriate. 
(c) REPORT.—Not later than the end of the 1-year 
period beginning on the date of the enactment of this Act, 
the Secretary of the Treasury, in consultation with law 
enforcement and persons subject to Bank Secrecy Act re-
quirements, shall issue a report to the Congress containing 
all findings and determinations made in carrying out the 
review required under subsection (a). 
(d) DEFINITIONS.—For purposes of this section: 
(1) FEDERAL FUNCTIONAL REGULATOR.—The 
term ‘‘Federal functional regulator’’ has the mean-
ing given that term under section 7103. 
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(2) 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). 
(3) OTHER 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 III—MODERNIZING THE 
AML SYSTEM 
SEC. 7301. ENCOURAGING INNOVATION IN BSA COMPLI-
ANCE. 
Section 5318 of title 31, United States Code, as 
amended by section 7202, is further amended by adding 
at the end the following: 
‘‘(p) ENCOURAGING INNOVATION IN COMPLIANCE.— 
‘‘(1) IN GENERAL.—The Federal functional reg-
ulators shall encourage financial institutions to con-
sider, evaluate, and, where appropriate, responsibly 
implement innovative approaches to meet the re-
quirements 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-
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retary determines such exemptions are necessary to 
facilitate the testing and potential use of new tech-
nologies and other innovations. 
‘‘(3) RULE
OF
CONSTRUCTION.—This sub-
section may not be construed to require financial in-
stitutions to consider, evaluate, or implement innova-
tive approaches to meet the requirements of the 
Bank Secrecy Act. 
‘‘(4) FEDERAL
FUNCTIONAL
REGULATOR
DE-
FINED.—In this subsection, the term ‘Federal func-
tional regulator’ means the Board of Governors of 
the Federal Reserve System, the Comptroller of the 
Currency, the Federal Deposit Insurance Corpora-
tion, the National Credit Union Administration, the 
Securities and Exchange Commission, and the Com-
modity Futures Trading Commission.’’. 
SEC. 7302. INNOVATION LABS. 
(a) IN GENERAL.—Subchapter II of chapter 53 of 
title 31, United States Code, is amended by adding at the 
end the following: 
‘‘§ 5333. Innovation Labs 
‘‘(a) ESTABLISHMENT.—There is established within 
the Department of the Treasury and each Federal func-
tional regulator an Innovation Lab. 
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SEC. 9409. REPORT ON THE FEASIBILITY OF LIQUEFIED 
NATURAL GAS FUELED VESSELS. 
Not later than 1 year after the date of the enactment 
of this Act, the Commandant shall submit to the Com-
mittee on Transportation and Infrastructure of the House 
of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report on the 
following: 
(1) The feasibility, safety, and cost effectiveness 
of using liquefied natural gas to fuel new Coast 
Guard vessels. 
(2) The feasibility, safety, and cost effectiveness 
of converting existing vessels to run on liquefied nat-
ural gas fuels. 
(3) The operational feasibility of using liquefied 
natural gas to fuel Coast Guard vessels. 
SEC. 9410. COAST GUARD AUTHORITIES STUDY. 
(a) IN GENERAL.—The Secretary of the department 
in which the Coast Guard is operating shall seek to enter 
into an arrangement with the National Academy of 
Sciences not later than 60 days after the date of the enact-
ment of this Act under which the Academy shall prepare 
an assessment of Coast Guard authorities. 
(b) ASSESSMENT.—The assessment under subsection 
(a) shall provide— 
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