I 
111TH CONGRESS 
1ST SESSION H. R. 4331 
To amend title 31, United States Code, to establish the Office of Money 
Services Business Compliance within the Department of the Treasury 
for the purpose of assuring compliance with subchapter II of chapter 
53 of such title by money services businesses and such other duties 
as the Secretary of the Treasury may delegate, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 16, 2009 
Mr. BACHUS (for himself, Mr. GUTIERREZ, and Mr. TIBERI) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To amend title 31, United States Code, to establish the 
Office of Money Services Business Compliance within 
the Department of the Treasury for the purpose of assur-
ing compliance with subchapter II of chapter 53 of such 
title by money services businesses and such other duties 
as the Secretary of the Treasury may delegate, and for 
other purposes. 
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 ‘‘Money Services Busi-
ness Compliance Facilitation Act of 2009’’. 
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SEC. 2. OFFICE OF MONEY SERVICES BUSINESS COMPLI-
ANCE ESTABLISHED. 
(a) IN GENERAL.—Subchapter I of chapter 3 of title 
31, United States Code, is amended by inserting after sec-
tion 313 the following new section: 
‘‘§ 314. Office of Money Services Business Compliance 
‘‘(a) ESTABLISHMENT.—There is hereby established 
the Office of Money Services Business Compliance (here-
after in this section referred to as the ‘Compliance Office’) 
as an office within the Department of the Treasury. 
‘‘(b) MANAGEMENT.— 
‘‘(1) IN
GENERAL.—The management of the 
Compliance Office shall be vested in a Director of 
Money Services Business Compliance (hereafter in 
this section referred to as the ‘Director’). 
‘‘(2) APPOINTMENT.—The Director shall be ap-
pointed by the President, by and with the advice and 
consent of the Senate, without regard to political af-
filiation and solely on the basis of integrity and dem-
onstrated ability, and after consultation with the 
Chairman of the Board of Governors of the Federal 
Reserve System and the Comptroller of the Currency 
(or successor to any such individual with regard to 
bank supervisory authority), from among individuals 
who are specially qualified to serve in that position 
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by reason of their education, training, and experi-
ence. 
‘‘(3) TERM OF OFFICE.— 
‘‘(A) The Director shall be appointed for a 
term of 5 years. 
‘‘(B) VACANCY.—A vacancy in the position 
of Director shall be filled in the manner the 
original appointment was made and any indi-
vidual appointed to fill any such vacancy shall 
be appointed only for the remainder of the term 
in which the vacancy occurs. 
‘‘(4) REMOVAL.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (3), the Director may be removed by the 
President at any time for good cause. 
‘‘(B) NOTICE TO THE CONGRESS.—Upon 
the removal of a Director under subparagraph 
(A), the President shall promptly transmit a 
notice to the Congress of the removal together 
with a detailed explanation of the basis for the 
removal. 
‘‘(C) ADDITIONAL
INFORMATION.—After 
providing notice under subparagraph (B), the 
President shall promptly respond to any request 
by any committee of the Senate or the House 
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of Representatives for additional information or 
supporting documents. 
‘‘(c) DUTIES.— 
‘‘(1) IN GENERAL.—The duties of the Director 
shall be to assure compliance by money services 
businesses with all applicable requirements of sub-
chapter II of chapter 53, regulations prescribed 
under such subchapter and any other duty delegated 
by the Secretary under paragraph (3). 
‘‘(2) REGISTRATION OF MONEY SERVICES BUSI-
NESSES.— 
‘‘(A) IN GENERAL.—No person may oper-
ate a money services business without reg-
istering annually, to the satisfaction of the Di-
rector under this paragraph. 
‘‘(B) CRITERIA.—The Director, in con-
sultation with the Secretary, the appropriate 
Federal banking agencies, and appropriate rep-
resentative State officials, shall establish such 
procedures and criteria for registration, com-
mensurate with the purposes of this section, as 
the Director determines to be appropriate. 
‘‘(C) REGISTRATION
AS
COMPLIANCE.— 
Any money services business registered to the 
satisfaction of the Director under this section 
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shall be deemed to be registered with the Sec-
retary for purposes of section 5330. 
‘‘(D) COMPLIANCE.—Any money services 
business, and any agent of a money services 
business, which fails to register and keep cur-
rent a registration to the satisfaction of the 
Secretary under this paragraph shall, after the 
expiration of a 30-day period beginning on a 
notice of violation issued by the Director or an 
agent recognized by the Director, be subject to 
the same penalties as described in subsection 
(f)(3)(D) for a violation of an order issued 
under subsection (f)(3). 
‘‘(3) DELEGATED
FUNCTIONS.—The Director 
shall carry out any other duty delegated by the Sec-
retary of the Treasury to the Director. 
‘‘(d) RULE OF CONSTRUCTION.—No provision of this 
section shall be construed as limiting or pre-empting any 
State law or regulation or order concerning the regulation 
and oversight of the money service business industry, or 
agents of money services businesses, for purposes of con-
sumer protection, safety and soundness, or the prevention 
of money laundering or the financing of terrorism. 
‘‘(e) RECOGNITION OF SELF-REGULATORY ORGANI-
ZATIONS RELATING TO MONEY SERVICES BUSINESSES.— 
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‘‘(1) REGISTRATION.—The Director may, after 
notice and opportunity for comment and upon appli-
cation by an organization representing money serv-
ices business that meets such criteria as the Director 
may establish under this section, approve the reg-
istration of such organization as a self regulatory or-
ganization to carry out the duties of the Director 
under paragraph (1) with respect to the money serv-
ices businesses represented by such self regulatory 
organization. 
‘‘(2) PROCEDURES
AND
REQUIREMENTS
FOR 
SRO.—The Director shall establish such procedures 
and requirements to become a self regulatory organi-
zation as the Secretary determines to be appro-
priate, including periodic reviews of such organiza-
tion and reporting requirements by such organiza-
tion to the Director to ensure the success of such or-
ganizations in ensuring compliance by the money 
services businesses, taking into account in particular 
the requirements of subsections (g), (h), (l), (m), 
and (n) of section 5318 and section 5318A. 
‘‘(3) WITHDRAWAL OF REGISTRATION.— 
‘‘(A) IN GENERAL.—After notice and op-
portunity for hearing, the Director may with-
draw the registration of any self regulatory or-
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ganization previously approved under this sub-
section. 
‘‘(B) NOTICE TO THE CONGRESS.—Upon 
the withdrawal of the registration of any self 
regulatory organization under subparagraph 
(A), the Director shall promptly submit a notice 
to the Congress of the withdrawal together with 
a detailed explanation of the basis for the with-
drawal. 
‘‘(C) ADDITIONAL
INFORMATION.—After 
providing notice under subparagraph (B), the 
Director shall promptly respond to any request 
by any committee of the Senate or the House 
of Representatives for additional information or 
supporting documents. 
‘‘(4) REQUIREMENTS FOR RULES ENFORCED BY 
SELF
REGULATORY
ORGANIZATION.—The Director 
may establish minimum requirements for— 
‘‘(A) rules established by any self regu-
latory organization for members regulated by 
the organization; 
‘‘(B) enforcement procedures and enforce-
ment activities by self regulatory organization, 
with respect to the enforcement of the rules re-
ferred to in subparagraph (A); and 
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‘‘(C) requirements established by a self 
regulatory organization for withdrawal of mem-
bership of any noncomplying member, monetary 
penalties, and the removal of officers and em-
ployees of a noncomplying member business. 
‘‘(5) NOTICE
REQUIREMENTS.—The Director 
shall establish procedures under which any self regu-
latory organization shall report to the Congress on 
a regular basis on— 
‘‘(A) violations by members of the organi-
zation of any law, any regulation prescribed by 
the Director, or any rule established by the or-
ganization since the date of the last report; and 
‘‘(B) any enforcement actions taken by the 
organization since such date. 
‘‘(f) POWERS.— 
‘‘(1) IN GENERAL.—For purposes of carrying 
out this section, the Director shall have all the pow-
ers of the Secretary under subsections (b), (c), (d), 
and (e) of section 5318. 
‘‘(2) RULE OF CONSTRUCTION.—No provision 
of this section shall be construed as limiting or su-
perseding the enforcement authority of the Secretary 
under subchapter II of chapter 53 with respect to 
any violation of such subchapter. 
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‘‘(3) CEASE AND DESIST.— 
‘‘(A) DETERMINATION OF VIOLATION.—If 
the Director determines that any money serv-
ices business, or any officer, director, agent, or 
employee of any such business, may be violating 
or may have violated this section, subchapter II 
of chapter 53, or any other provision of law or 
any regulation subject to the jurisdiction of the 
Secretary, or may be about to violate such sec-
tion, subchapter, or provision of law or regula-
tion, the Director may issue a temporary order 
or permanent order directing such money serv-
ices business, and any officer, director, agent, 
or employee of such money services business— 
‘‘(i) to cease and desist from the viola-
tion or threatened violation; 
‘‘(ii) to take such action as is nec-
essary to prevent the violation or threat-
ened violation; or 
‘‘(iii) to take such action as is nec-
essary to prevent, as the Director deter-
mines to be appropriate— 
‘‘(I) significant harm to con-
sumers or the public interest; or 
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‘‘(II) frustration of the ability of 
the Director to conduct the pro-
ceedings or to redress the violation at 
the conclusion of the proceedings. 
‘‘(B) TIMING OF ENTRY.—An order issued 
under this paragraph shall be entered only after 
notice and opportunity for a hearing, unless the 
Director determines that notice and hearing 
prior to entry would be impracticable or con-
trary to the public interest. 
‘‘(C) EFFECTIVE
DATE
OF
TEMPORARY 
ORDER.—A temporary order issued under this 
paragraph shall— 
‘‘(i) become effective upon service 
upon the respondent; and 
‘‘(ii) unless set aside, limited, or sus-
pended by the Director or a court of com-
petent jurisdiction, remain effective and 
enforceable pending the completion of the 
proceedings. 
‘‘(D) ENFORCEMENT.—Any money services 
business, and any officer, director, agent, or 
employee of such money services business, 
which violates any temporary or permanent 
order issued under this paragraph shall forfeit 
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and pay a civil penalty of not more than $5,000 
for each day during which such violation con-
tinues. 
‘‘(E) ASSESSMENT.—The Secretary shall 
assess any penalty in the same manner and 
subject to the same limitations as assessments 
under section 5321(b). 
‘‘(g) MONEY SERVICES BUSINESS DEFINED.—For 
purposes of this section, the term ‘money services busi-
ness’ has the meaning given to the term in section 
103.11(uu) of title 31, Code of Federal Regulations, as 
in effect on the date of the enactment of the Money Serv-
ices Business Compliance Facilitation Act of 2009. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to the Secretary for each 
of fiscal years 2010, 2011, and 2012 such sums as may 
be necessary to carry out this section, to be made available 
to the Director. 
‘‘(i) LONG-TERM FUNDING PLANNING.—Before the 
end of the 18-month period beginning on the date of the 
enactment of the Money Services Business Compliance 
Facilitation Act of 2009, the Director shall submit a re-
port to the Congress containing recommendations for an 
appropriate long-term funding model for the Compliance 
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Office to ensure the independence of the Compliance Of-
fice.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.— 
Section 111 of the Act approved on October 28, 1974 (12 
U.S.C. 250), is amended by inserting ‘‘the Director of 
Money Services Business Compliance,’’ after ‘‘Director of 
the Office of Thrift Supervision,’’. 
(c) CLERICAL AMENDMENT.—The table of section for 
chapter 3 of title 31, United States Code, is amended by 
inserting after the item relating to section 313 the fol-
lowing new item: 
‘‘314. Office of Money Services Business Compliance.’’. 
Æ 
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