Financial Crimes Enforcement Network Improvements Act
Bill: H.R.7623 | Sponsor: Rep. Davidson, Warren (R-OH)
Policy area: Finance and Financial Sector

Summary:
Financial Crimes Enforcement Network Improvements Act
This bill makes several organizational changes to the Financial Crimes Enforcement Network (FinCEN).
First, the director of FinCEN must be appointed by the President with the advice and consent of the Senate. (Currently, the director is appointed by the Secretary of the Treasury.)
The bill also establishes an Office of Audit and Investigations within FinCEN. The office must prioritize audits and investigations that protect the civil liberties and privacy of citizens. The bill also provides for a Civil Liberties Protection Officer to oversee compliance with all guidelines relating to civil liberties and privacy.
Further, the bill imposes additional requirements on the rulemaking process for FinCEN, including by limiting the delegation authorities of the Secretary of the Treasury to make findings and exercise authority to certify, delay, or waive certain rulemaking activities. FinCEN is also required to conduct additional outreach to small businesses prior to a rulemaking.
Finally, FinCEN must disclose certain controlling documents regarding the implementation of specified laws and must report to Congress any unlawful FinCEN activity and corrective action taken.

To increase the effectiveness and accountability of the Financial 
  Crimes Enforcement Network of the Department of the Treasury and to 
 protect the freedom and privacy of Americans, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financial Crimes Enforcement Network 
Improvements Act''.

SEC. 2. BANK SECRECY ACT DEFINED.

    In this Act, the term ``Bank Secrecy Act'' means--
            (1) section 21 of the Federal Deposit Insurance Act (12 
        U.S.C. 1829b);
            (2) chapter 2 of title I of Public Law 91-508 (12 U.S.C. 
        1951 et seq.); and
            (3) subchapter II of chapter 53 of title 31, United States 
        Code.

SEC. 3. DIRECTOR OF THE FINANCIAL CRIMES ENFORCEMENT NETWORK.

    (a) Appointment of Director.--Section 310(b)(1) of title 31, United 
States Code, is amended by striking ``who shall be appointed by the 
Secretary of the Treasury'' and inserting ``who shall be appointed by 
the President, by and with the advice and consent of the Senate''.
    (b) Pay of Director.--Section 310(b)(1) of title 31, United States 
Code, is amended by adding at the end the following: ``The Director 
shall be compensated at the rate provided under level IV of the 
Executive Schedule under section 5315 of title 5''.

SEC. 4. INSPECTOR GENERAL FUNCTIONS.

    (a) Establishment of Office.--There is established within the 
Office of the Inspector General of the Department of the Treasury an 
Office of Audit and Investigations for the Financial Crimes Enforcement 
Network.
    (b) Deputy Inspector General.--The Inspector General of the 
Department of the Treasury shall designate a member of the Senior 
Executive Service to head the Office of Audit and Investigations for 
the Financial Crimes Enforcement Network. Such member shall be known as 
the Deputy Inspector General for the Financial Crimes Enforcement 
Network.
    (c) Supervision, Authority, and Resources.--The Inspector General 
of the Department of the Treasury shall supervise the Deputy Inspector 
General for the Financial Crimes Enforcement Network and shall ensure 
that the Deputy Inspector General has the authority and resources 
necessary and appropriate to perform inspector general functions with 
respect to the Financial Crimes Enforcement Network.
    (d) Priorities.--The Inspector General of the Department of the 
Treasury shall ensure that the Office of Audit and Investigations for 
the Financial Crimes Enforcement Network gives substantial priority in 
conducting audits and investigations to protection of the civil 
liberties and privacy of American citizens by the Financial Crimes 
Enforcement Network, including in the implementation of the Bank 
Secrecy Act and subsections (b), (c), and (d) of section 310 of title 
31, United States Code, by the Financial Crimes Enforcement Network.
    (e) Annual Report.--The Inspector General of the Department 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 on or about October 31 of each 
calendar year on--
            (1) the activities of the Office of Audit and 
        Investigations for the Financial Crimes Enforcement Network 
        during the preceding fiscal year;
            (2) the planned activities of that Office for the current 
        fiscal year;
            (3) an overview of reports submitted to the Financial 
        Crimes Enforcement Network, including the number of reports 
        that--
                    (A) have been received by the Financial Crimes 
                Enforcement Network;
                    (B) have been reviewed by the Financial Crimes 
                Enforcement Network;
                    (C) have been requested by other governmental 
                agencies;
                    (D) led to a secondary investigation by the 
                Financial Crimes Enforcement Network; and
                    (E) resulted in a conviction, settlement, or 
                additional charges in other ongoing investigations; and
            (4) such other information relating to that Office as the 
        Inspector General determines appropriate.

SEC. 5. CIVIL LIBERTIES PROTECTION OFFICER FOR THE FINANCIAL CRIMES 
              ENFORCEMENT NETWORK.

    Section 301 of title 31, United States Code, is amended by adding 
at the end the following:
    ``(h) Civil Liberties Protection Officer for the Financial Crimes 
Enforcement Network.--
            ``(1) In general.--Within the Office of the Secretary of 
        the Treasury, there shall be a Civil Liberties Protection 
        Officer for the Financial Crimes Enforcement Network who 
        shall--
                    ``(A) be designated by the Secretary of the 
                Treasury from among members of the Senior Executive 
                Service; and
                    ``(B) report directly to and be supervised directly 
                by the Secretary of the Treasury or, if so assigned by 
                the Secretary, the Deputy Secretary of the Treasury.
            ``(2) Duties.--The Civil Liberties Protection Officer for 
        the Financial Crimes Enforcement Network shall--
                    ``(A) ensure that protection of civil liberties and 
                privacy is appropriately incorporated in the activities 
                conducted by the Financial Crimes Enforcement Network;
                    ``(B) oversee compliance by the Financial Crimes 
                Enforcement Network with requirements under the 
                Constitution and all laws, regulations, and 
                implementing guidelines relating to civil liberties and 
                privacy;
                    ``(C) review and assess complaints and other 
                information indicating possible abuses of civil 
                liberties and privacy in the administration of the 
                programs and operations of the Financial Crimes 
                Enforcement Network and, as appropriate, refer such 
                complaints or information for investigation to the 
                Office of Audit and Investigations for the Financial 
                Crimes Enforcement Network;
                    ``(D) ensure that the use by the Financial Crimes 
                Enforcement Network of technologies sustains, and does 
                not erode, privacy protections relating to the use, 
                collection, and disclosure of personal information;
                    ``(E) ensure that personal information contained in 
                a system of records subject to section 552a of title 5 
                (commonly referred to as the `Privacy Act') is handled 
                by the Financial Crimes Enforcement Network in 
                compliance with that section;
                    ``(F) conduct privacy impact assessments of the 
                Financial Crimes Enforcement Network when appropriate, 
                directed, or required by law; and
                    ``(G) perform such other duties relating directly 
                to protection of civil liberties and privacy by the 
                Financial Crimes Enforcement Network as may be 
                prescribed by the Secretary of the Treasury.
            ``(3) Coordination.--The Civil Liberties Protection Officer 
        for the Financial Crimes Enforcement Network shall keep the 
        following individuals appropriately informed of the Officer's 
        activities:
                    ``(A) The Department of the Treasury's Chief 
                Privacy Officer (as described under section 522 of 
                division H of the Consolidated Appropriations Act, 2005 
                (42 U.S.C. 2000ee-2)).
                    ``(B) The Department of the Treasury's Privacy and 
                Civil Liberties Officer (as designated pursuant to 
                section 1062 of the National Security Intelligence 
                Reform Act of 2004 (42 U.S.C. 2000ee-1)).''.

SEC. 6. TRANSPARENCY IN RULEMAKING AND SECRETARIAL EXCEPTIONS.

    (a) Reservation to the Secretary of Authority To Make Exceptions.--
No officer or employee of the Department of the Treasury, except the 
Secretary of the Treasury or the person performing the duties of the 
Secretary of the Treasury when that office is vacant or the Secretary 
is unable to perform the duties of that office, shall, with respect to 
a proposed or final rule relating to activities of the Financial Crimes 
Enforcement Network, including implementation of the Bank Secrecy Act--
            (1) make findings of good cause under subsection (b) or (d) 
        of section 553 of title 5, United States Code;
            (2) exercise authority to certify, delay, or waive under 
        section 605 or 608 of title 5, United States Code; or
            (3) make findings of good cause under section 808(2) of 
        title 5, United States Code.
    (b) Covered Agency Status for Regulatory Flexibility.--Section 310 
of title 31, United States Code, is amended by adding at the end 
thereof the following new subsection:
    ``(m) The Financial Crimes Enforcement Network shall be a `covered 
agency' for purposes of section 609(d) of title 5.''.

SEC. 7. TRANSPARENCY WITH CONTROLLING DOCUMENTS.

    (a) Definition of Controlling Document.--As used in this section, 
the term ``controlling document'' refers to any record (as defined in 
section 3301 of title 44, United States Code) issued by or under the 
authority of the Secretary, Deputy Secretary, Under Secretary for 
Enforcement, or any other officer or employee of the Department of the 
Treasury, that delegates authority to the Financial Crimes Enforcement 
Network or its Director, or contains direction binding upon the 
Financial Crimes Enforcement Network or its Director, in the 
implementation of section 310 of title 31, United States Code, or the 
Bank Secrecy Act, including delegations, prescriptions, regulations, 
protocols, priorities, policies, standards, guidelines, and 
requirements issued in accordance with subsections (b)(2)(C), 
(b)(2)(E), (b)(2)(I), (b)(2)(J), (b)(2)(O), (c), and (i)(2)(C)(ii) of 
section 310 of such title 31 and subsections (b)(1), (b)(2), (b)(4), 
(c)(2)(A), (c)(2)(C), (c)(3), (c)(5), (d)(3), and (h)(3)(C)(i)(I)(bb) 
of section 5336 of such title 31.
    (b) Disclosure to Congress.--The Secretary of the Treasury shall 
promptly provide to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate--
            (1) controlling documents in force as of the enactment of 
        this Act;
            (2) any controlling documents issued thereafter; and
            (3) any changes to controlling documents described in 
        paragraphs (1) and (2) made thereafter, including any 
        revocations thereof.
    (c) Disclosure to the Public.--The Secretary of the Treasury shall 
make available promptly to the public the controlling documents and 
changes that the Secretary is required to provide to the committees 
listed in subsection (b), excluding such reasonably segregable portions 
of controlling documents or changes as would fall within an exemption 
in section 552(b) of title 5, United States Code.

SEC. 8. INFORMATION FOR CONSTITUTIONAL FUNCTIONS OF CONGRESS.

    (a) Keeping Congress Informed.--The Secretary of the Treasury shall 
keep the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate fully and currently informed of the activities of 
the Financial Crimes Enforcement Network, including any significant 
anticipated activity of such Network.
    (b) Report of Unlawful Activity and Corrective Action.--The 
Secretary of the Treasury shall report promptly to the Committee on 
Financial Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs any unlawful activity of the 
Financial Crimes Enforcement Network and any corrective action taken or 
planned to address that activity and prevent such activity in the 
future.
    (c) Appearances Before Congress.--
            (1) In general.--The Director of the Financial Crimes 
        Enforcement Network shall appear before the Committee on 
        Financial Services of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs at semiannual 
        hearings, as specified in paragraph (2), regarding the 
        activities of the Financial Crimes Enforcement Network, 
        including protection of the civil liberties and privacy of, and 
        minimization of burdens on, American citizens.
            (2) Timing of appearances.--The Director shall appear--
                    (A) before the Committee on Financial Services of 
                the House of Representatives on or about February 20 of 
                even numbered calendar years and on or about July 20 of 
                odd numbered calendar years;
                    (B) before the Committee on Banking, Housing, and 
                Urban Affairs of the Senate on or about July 20 of even 
                numbered calendar years and on or about February 20 of 
                odd numbered calendar years; and
                    (C) before either Committee referred to in 
                subparagraph (A) or (B), upon request, following the 
                scheduled appearance of the Director before the other 
                Committee under subparagraph (A) or (B).
    (d) Requirements in Addition.--The requirements of this section are 
in addition to the requirements of section 5336(c)(11) of title 31, 
United States Code.
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