H. R. 6395—1184 
(A) the effects that adjusting the thresholds would 
have on law enforcement, intelligence, national security, 
and homeland security agencies; 
(B) the costs likely to be incurred or saved by financial 
institutions from any adjustment to the thresholds; 
(C) whether adjusting the thresholds would better con-
form the United States with international norms and stand-
ards to counter money laundering and the financing of 
terrorism; 
(D) whether currency transaction report thresholds 
should be tied to inflation or otherwise be adjusted based 
on other factors consistent with the purposes of the Bank 
Secrecy Act; 
(E) any other matter that the Secretary determines 
is appropriate. 
(c) REPORT AND RULEMAKINGS.—Not later than 1 year after 
the date of enactment of this Act, the Secretary, in consultation 
with the Attorney General, the Director of National Intelligence, 
the Secretary of Homeland Security, the Federal functional regu-
lators, State bank supervisors, State credit union supervisors, and 
other relevant stakeholders, shall— 
(1) publish a report of the findings from the review required 
under subsection (a); and 
(2) propose rulemakings, as appropriate, to implement the 
findings and determinations described in paragraph (1). 
(d) UPDATES.—Not less frequently than once every 5 years 
during the 10-year period beginning on the date of enactment 
of this Act, the Secretary shall— 
(1) evaluate findings and rulemakings described in sub-
section (c); and 
(2) transmit a written summary of the evaluation to the 
Committee on Financial Services of the House of Representa-
tives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate; and 
(3) propose rulemakings, as appropriate, in response to 
the evaluation required under paragraph (1). 
SEC. 6206. SHARING OF THREAT PATTERN AND TREND INFORMATION. 
Section 5318(g) of title 31, United States Code, as amended 
by section 6202 of this division, is amended by adding at the 
end the following: 
‘‘(6) SHARING OF THREAT PATTERN AND TREND INFORMA-
TION.— 
‘‘(A) DEFINITIONS.—In this paragraph— 
‘‘(i) the terms ‘Bank Secrecy Act’ and ‘Federal func-
tional regulator’ have the meanings given the terms 
in section 6003 of the Anti-Money Laundering Act of 
2020; and 
‘‘(ii) the term ‘typology’ means a technique to 
launder money or finance terrorism. 
‘‘(B) SUSPICIOUS ACTIVITY REPORT ACTIVITY REVIEW.— 
Not less frequently than semiannually, the Director of the 
Financial Crimes Enforcement Network shall publish 
threat pattern and trend information to provide meaningful 
information about the preparation, use, and value of reports 
filed under this subsection by financial institutions, as
H. R. 6395—1185 
well as other reports filed by financial institutions under 
the Bank Secrecy Act. 
‘‘(C) INCLUSION OF TYPOLOGIES.—In each publication 
published under subparagraph (B), the Director shall pro-
vide financial institutions and the Federal functional regu-
lators with typologies, including data that can be adapted 
in algorithms if appropriate, relating to emerging money 
laundering and terrorist financing threat patterns and 
trends. 
‘‘(7) RULES OF CONSTRUCTION.—Nothing in this subsection 
may be construed as precluding the Secretary of the Treasury 
from— 
‘‘(A) requiring reporting as provided under subpara-
graphs (A) and (B) of paragraph (6); or 
‘‘(B) notifying a Federal law enforcement agency with 
respect to any transaction that the Secretary has deter-
mined directly implicates a national priority established 
by the Secretary.’’. 
SEC. 6207. SUBCOMMITTEE ON INNOVATION AND TECHNOLOGY. 
Section 1564 of the Annunzio-Wylie Anti-Money Laundering 
Act (31 U.S.C. 5311 note) is amended by adding at the end the 
following: 
‘‘(d) SUBCOMMITTEE ON INNOVATION AND TECHNOLOGY.— 
‘‘(1) DEFINITIONS.—In this subsection, the terms ‘Bank 
Secrecy Act’, ‘State bank supervisor’, and ‘State credit union 
supervisor’ have the meanings given the terms in section 6003 
of the Anti-Money Laundering Act of 2020. 
‘‘(2) ESTABLISHMENT.—There shall be within the Bank 
Secrecy Act Advisory Group a subcommittee to be known as 
the ‘Subcommittee on Innovation and Technology’ to— 
‘‘(A) advise the Secretary of the Treasury regarding 
means by which the Department of the Treasury, FinCEN, 
the Federal functional regulators, State bank supervisors, 
and State credit union supervisors, as appropriate, can 
most effectively encourage and support technological 
innovation in the area of anti-money laundering and coun-
tering the financing of terrorism and proliferation; and 
‘‘(B) reduce, to the extent practicable, obstacles to 
innovation that may arise from existing regulations, guid-
ance, and examination practices related to compliance of 
financial institutions with the Bank Secrecy Act. 
‘‘(3) MEMBERSHIP.— 
‘‘(A) IN
GENERAL.—The subcommittee established 
under paragraph (1) shall consist of the representatives 
of the heads of the Federal functional regulators, including, 
as appropriate, the Bank Secrecy Act Innovation Officers 
as established in section 6208 of the Anti-Money Laun-
dering Act of 2020, a representative of State bank super-
visors, a representative of State credit union supervisors, 
representatives of a cross-section of financial institutions 
subject to the Bank Secrecy Act, law enforcement, FinCEN, 
and any other representative as determined by the Sec-
retary of the Treasury. 
‘‘(B) 
REQUIREMENTS.—Each 
agency 
representative 
described in subparagraph (A) shall be an individual who
H. R. 6395—1186 
has demonstrated knowledge and competence concerning 
the application of the Bank Secrecy Act. 
‘‘(4) SUNSET.— 
‘‘(A) IN GENERAL.—Except as provided in subparagraph 
(B), the Subcommittee on Innovation and Technology shall 
terminate on the date that is 5 years after the date of 
enactment of this subsection. 
‘‘(B) EXCEPTION.—The Secretary of the Treasury may 
renew the Subcommittee on Innovation for 1-year periods 
beginning on the date that is 5 years after the date of 
enactment of this subsection.’’. 
SEC. 6208. ESTABLISHMENT OF BANK SECRECY ACT INNOVATION OFFI-
CERS. 
(a) APPOINTMENT OF OFFICERS.—Not later than 1 year after 
the effective date of the regulations promulgated under subsection 
(d) of section 310 of title 31, United States Code, as added by 
section 6103 of this division, an Innovation Officer shall be 
appointed within FinCEN and each Federal functional regulator. 
(b) INNOVATION OFFICER.—The Innovation Officer shall be 
appointed by, and report to, the Director of FinCEN or the head 
of the Federal functional regulator, as applicable. 
(c) DUTIES.—Each Innovation Officer, in coordination with other 
Innovation Officers and the agencies of the Innovation Officers, 
shall— 
(1) provide outreach to law enforcement agencies, State 
bank supervisors, financial institutions and associations of 
financial institutions, agents of financial institutions, and other 
persons (including service providers, vendors and technology 
companies) with respect to innovative methods, processes, and 
new technologies that may assist in compliance with the 
requirements of the Bank Secrecy Act; 
(2) provide technical assistance or guidance relating to 
the implementation of responsible innovation and new tech-
nology by financial institutions and associations of financial 
institutions, agents of financial institutions, and other persons 
(including service providers, vendors and technology compa-
nies), in a manner that complies with the requirements of 
the Bank Secrecy Act; 
(3) if appropriate, explore opportunities for public-private 
partnerships; and 
(4) if appropriate, develop metrics of success. 
SEC. 6209. TESTING METHODS RULEMAKING. 
(a) IN GENERAL.—Section 5318 of title 31, United States Code 
is amended by adding at the end the following: 
‘‘(o) TESTING.— 
‘‘(1) IN GENERAL.—The Secretary of the Treasury, in con-
sultation with the head of each agency to which the Secretary 
has delegated duties or powers under subsection (a), shall issue 
a rule to specify with respect to technology and related tech-
nology internal processes designed to facilitate compliance with 
the requirements under this subchapter, the standards by 
which financial institutions are to test the technology and 
related technology internal processes. 
‘‘(2) STANDARDS.—The standards described in paragraph 
(1) may include—
H. R. 6395—1187 
‘‘(A) an emphasis on using innovative approaches such 
as machine learning or other enhanced data analytics proc-
esses; 
‘‘(B) risk-based testing, oversight, and other risk 
management approaches of the regime, prior to and after 
implementation, to facilitate calibration of relevant systems 
and prudently evaluate and monitor the effectiveness of 
their implementation; 
‘‘(C) specific criteria for when and how risk-based 
testing against existing processes should be considered to 
test and validate the effectiveness of relevant systems and 
situations and standards for when other risk management 
processes, including those developed by or through third 
party risk and compliance management systems, and over-
sight may be more appropriate; 
‘‘(D) specific standards for a risk governance framework 
for financial institutions to provide oversight and to pru-
dently evaluate and monitor systems and testing processes 
both pre- and post-implementation; 
‘‘(E) requirements for appropriate data privacy and 
information security; and 
‘‘(F) a requirement that the system configurations, 
including any applicable algorithms and any validation 
of those configurations used by the regime be disclosed 
to the Financial Crimes Enforcement Network and the 
appropriate Federal functional regulator upon request. 
‘‘(3) CONFIDENTIALITY OF ALGORITHMS.— 
‘‘(A) IN
GENERAL.—If a financial institution or any 
director, officer, employee, or agent of any financial institu-
tion, voluntarily or pursuant to this subsection or any 
other authority, discloses the algorithms of the financial 
institution to a government agency, the algorithms and 
any materials associated with the creation or adaption 
of such algorithms shall be considered confidential and 
not subject to public disclosure. 
‘‘(B) FREEDOM OF INFORMATION ACT.—Section 552(a)(3) 
of title 5 (commonly known as the ‘Freedom of Information 
Act’) shall not apply to any request for algorithms described 
in subparagraph (A) and any materials associated with 
the creation or adaptation of the algorithms. 
‘‘(4) DEFINITION.—In this subsection, the term ‘Federal 
functional regulator’ means— 
‘‘(A) the Board of Governors of the Federal Reserve 
System; 
‘‘(B) the Office of the Comptroller of the Currency; 
‘‘(C) the Federal Deposit Insurance Corporation; 
‘‘(D) the National Credit Union Administration; 
‘‘(E) the Securities and Exchange Commission; and 
‘‘(F) the Commodity Futures Trading Commission.’’. 
(b) UPDATE OF MANUAL.—The Financial Institutions Examina-
tion Council shall ensure that any manual prepared by the Council 
is— 
(1) updated to reflect the rulemaking required by subsection 
(o) section 5318 of title 31, United States Code, as added 
by subsection (a) of this section; and