I 
114TH CONGRESS 
1ST SESSION H. R. 4242 
To strengthen the Federal statutes designed to deter money laundering and 
terrorism financing, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 11, 2015 
Ms. MAXINE WATERS of California introduced the following bill; which was 
referred to the Committee on Financial Services, and in addition to the 
Committee on the Judiciary, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To strengthen the Federal statutes designed to deter money 
laundering and terrorism financing, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Holding Individuals Accountable and Deterring Money 
Laundering Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
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TITLE I—HOLDING EXECUTIVES RESPONSIBLE FOR VIOLATIONS 
Sec. 101. Penalties for violations of the Bank Secrecy Act. 
Sec. 102. Criminal penalties. 
Sec. 103. Strengthening civil injunctive authority. 
Sec. 104. Clarification of removal and prohibition authority under the FDIA. 
Sec. 105. Independent litigation authority for FinCEN. 
Sec. 106. Treatment of executive compensation and personal liability. 
Sec. 107. Corporate governance and the legal responsibilities. 
TITLE II—STRENGTHENING OF REGULATORY OVERSIGHT AND 
ACCOUNTABILITY 
Sec. 201. Reporting and oversight of Bank Secrecy Act-related enforcement ac-
tions. 
Sec. 202. Consideration of BSA compliance in management ratings. 
TITLE III—CLARIFICATION OF SAFE HARBOR PROTECTIONS 
Sec. 301. Safe harbor protections. 
TITLE IV—STRENGTHENING REQUIREMENTS AND CLOSING 
LOOPHOLES 
Sec. 401. Expanding the crimes that can be a predicate offense to money laun-
dering. 
Sec. 402. Closing loopholes in Bank Secrecy Act reporting. 
Sec. 403. Definition of an institution-affiliated party. 
TITLE V—WHISTLEBLOWER PROTECTIONS 
Sec. 501. Modernization and upgrading whistleblower protections. 
TITLE VI—SENSE OF THE CONGRESS REGARDING CRIMINAL 
PENALTIES 
Sec. 601. Sense of the Congress. 
TITLE VII—STRENGTHENING GLOBAL COMMITMENTS 
Sec. 701. International coordination. 
Sec. 702. Sense of Congress regarding list of countries at high risk for money 
laundering. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) Money laundering is a serious threat to our 
national and economic security. The scale, efficiency, 
and complexity of the U.S. financial system make it 
a prime target for those who seek to conceal and 
move the proceeds of illicit activity. 
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(2) The spate of recent high-profile enforcement 
actions against some of the largest and most sophis-
ticated financial institutions raises troubling ques-
tions about the effectiveness of U.S. domestic anti- 
money laundering and counterterrorism financing 
regulatory, compliance and enforcement efforts. 
(3) Money launderers have proven to adapt 
quickly in order to avoid detection. U.S. anti-money 
laundering laws and regulations must be rigorously 
reviewed and constantly updated to close loopholes 
and address the changing tactics employed by bad 
actors. 
(4) Given the global nature of money laun-
dering and terrorist financing and the increasing 
interrelatedness of the global financial system, a se-
cure global framework is essential to the integrity of 
the U.S. financial system. 
(5) Efforts to stanch the flow of illegal money 
across the world to drug cartels and terrorist organi-
zations should be a top U.S. priority. To achieve this 
mission, extensive collaboration among financial reg-
ulators, the Department of the Treasury, the De-
partment of State, the Department of Justice and 
State and Federal law enforcement agencies is re-
quired. 
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(6) U.S. anti-money laundering laws should 
meet international standards set by the Financial 
Action Task Force. 
(7) Without serious consequences for institu-
tions and individuals who fail to protect financial in-
stitutions from illicit financial activity—including 
significant fines, banning individuals from the indus-
try, and prison sentences for those who seek to ac-
tively evade anti-money laundering controls, finan-
cial institutions and individuals will continue to 
avoid compliance with U.S. anti-money laundering 
rules and regulations. 
(8) Effective anti-money laundering programs 
must emphasize sound corporate governance includ-
ing business line accountability and clear lines of 
legal responsibility for individuals, including board 
members and chief executive officers. 
(9) Avoiding money laundering risks requires 
an effective anti-money laundering program and a 
strong institutional compliance culture, with written 
standards, knowledgeable and adequate staff, strong 
monitoring processes, effective anti-money laun-
dering training, and compensation structures that 
reward compliance. 
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