Title: Financial Institution Security Act
Policy area: Finance and Financial Sector

Summary:
Financial Institution Security Act
This bill amends the USA PATRIOT Act to allow financial institutions to share information with one another regarding individuals, entities, organizations, and countries suspected of a broader range of unlawful activities. Under current law, such sharing is limited to information regarding terrorist acts or money laundering.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3439 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 3439

To facilitate better information sharing to assist in the fight against 
      the funding of terrorist activities, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 26, 2017

Mr. Pittenger introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To facilitate better information sharing to assist in the fight against 
      the funding of terrorist activities, 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 Institution Security 
Act''.

SEC. 2. INFORMATION SHARING.

    (a) In General.--Section 314 of the USA PATRIOT Act (31 U.S.C. 5311 
note) is amended--
            (1) in subsection (b)--
                    (A) by striking ``terrorist or money laundering 
                activities'' and inserting ``terrorist acts, money 
                laundering activities, or a specified unlawful activity 
                (as defined under section 1956(c)(7) of title 18, 
                United States Code)''; and
                    (B) by striking ``activities that may involve 
                terrorist acts or money laundering activities'' and 
                inserting ``activities that may involve terrorist acts, 
                money laundering activities, or a specified unlawful 
                activity''; and
            (2) in subsection (c), by inserting ``or a specified 
        unlawful activity (as defined under section 1956(c)(7) of title 
        18, United States Code)'' after ``terrorist acts or money 
        laundering activities''.
    (b) Update to Regulations.--Section 314(a) of the USA PATRIOT Act 
(31 U.S.C. 5311 note) is amended by striking ``or money laundering 
activities'' each place such term appears and inserting ``, money 
laundering activities, or a specified unlawful activity (as defined 
under section 1956(c)(7) of title 18, United States Code)''.
    (c) Sense of Congress.--Section 314 of the USA PATRIOT Act (31 
U.S.C. 5311 note) is amended by adding at the end the following:
    ``(e) Sense of Congress.--It is the sense of the Congress that, in 
furtherance of efforts to stop the financing of terror and other forms 
of illicit financing through increased sharing of information, and 
consistent with the need to prevent inappropriate dissemination of such 
information--
            ``(1) Federal law enforcement agencies and regulators 
        should share information about terrorist activities, money 
        laundering activities, and other specified unlawful activities 
        (as defined under section 1956(c)(7) of title 18, United States 
        Code) to the fullest extent possible and in a timely fashion; 
        and
            ``(2) financial institutions, including nonbank financial 
        institutions, should share information about such acts and 
        activities with each other to the fullest extent possible and 
        in a timely fashion.''.

SEC. 3. DISCLOSURE LIABILITY.

    Section 5318(g)(3)(B) of title 31, United States Code, is amended--
            (1) in clause (i), by striking ``or'' at the end;
            (2) in clause (ii), by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following:
                            ``(iii) any duty or requirement of a 
                        financial institution or any director, officer, 
                        employee, or agent of such institution to 
                        demonstrate to any person, as used in such 
                        subparagraph, that a disclosure referenced in 
                        such subparagraph is made in good faith.''.

SEC. 4. REPORT TO CONGRESS.

    (a) In General.--Not later than the end of the 120-day period 
beginning on the date of the enactment of this Act, the Secretary of 
the Treasury shall report to the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate regarding--
            (1) the Department of the Treasury's assessment of the 
        risks and benefits of allowing sharing of information, 
        consistent with appropriate privacy protections--
                    (A) between United States financial institutions 
                and foreign financial institutions;
                    (B) between United States financial institutions 
                and their foreign subsidiaries; and
                    (C) between United States subsidiaries of foreign 
                financial institutions and their parent financial 
                institutions; and
            (2) whether a financial institution defined under section 
        5312(a)(2) of title 31, United States Code, that is not 
        required under Treasury regulations on the date of the 
        enactment of this Act to maintain an anti-money laundering 
        program, should be authorized to appropriately share 
        information pursuant to subsection (b) of section 314 of the 
        USA PATRIOT Act, if--
                    (A) the financial institution voluntarily 
                establishes and maintains such an anti-money laundering 
                program;
                    (B) such program is subject to examination, and has 
                been examined, by the appropriate regulator; and
                    (C) the Secretary determines such program to be 
                adequately operating.
    (b) Separate Presentation of Classified Material.--Any part of the 
report described under subsection (a) that involves information which 
is properly classified under criteria established by the President 
shall be submitted to the committees described under subsection (a) 
separately in a classified annex and, if requested by the chairman or 
ranking Member of one of such committees, as a briefing at an 
appropriate level of security.

SEC. 5. RULEMAKING.

    Not later than the end of the 180-day period beginning on the date 
of the enactment of this Act, the Secretary of the Treasury shall issue 
regulations to be consistent with the amendments made by this Act.
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