Title: To amend title 31, United States Code, with respect to FinCEN no-action letters, and for other purposes.
Policy area: Finance and Financial Sector

Summary:
This bill directs the Financial Crimes Enforcement Network to issue regulations regarding the issuance of no-action letters in response to inquiries concerning the application of certain anti-money-laundering and counter-terrorist-financing laws or regulations.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6861 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 6861

To amend title 31, United States Code, with respect to FinCEN no-action 
                    letters, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 20, 2018

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

_______________________________________________________________________

                                 A BILL


 
To amend title 31, United States Code, with respect to FinCEN no-action 
                    letters, 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. FINCEN NO-ACTION LETTERS.

    Section 310 of title 31, United States Code, is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following:
    ``(d) No-Action Letters With Respect to Specific Conduct.--
            ``(1) In general.--The Director of FinCEN shall issue 
        regulations to establish a process for the issuance of a no-
        action letter by FinCEN in response to an inquiry from a person 
        or group of persons concerning the application of the Bank 
        Secrecy Act, the USA PATRIOT Act, or any other anti-money 
        laundering and counter terrorist financing law or regulation to 
        specific conduct, which shall include a statement as to whether 
        or not FinCEN has any intention of taking an enforcement or 
        other regulatory action against the person or group with 
        respect to such conduct.
            ``(2) Consultation.--In issuing the regulations described 
        under paragraph (1), the Secretary shall consult with the 
        Federal functional regulators and such other Federal 
        departments and agencies as the Secretary determines 
        appropriate.
            ``(3) Reliance on no-action letter.--
                    ``(A) Liability.--Notwithstanding any other 
                provisions of law, except for paragraph (5)(B), a 
                person described under subparagraph (B) who relies upon 
                a no-action letter issued under this subsection in 
                accordance with the provisions and findings of such 
                letter shall not, as a result, be subject to any 
                regulatory action or civil or criminal penalty under 
                the Bank Secrecy Act, the USA PATRIOT Act, or any other 
                anti-money laundering and counter terrorist financing 
                law or regulation with respect to the activity covered 
                in the no-action letter.
                    ``(B) Persons covered.--A person described in this 
                paragraph is--
                            ``(i) any person involved in the specific 
                        conduct that is the subject of the no-action 
                        letter; and
                            ``(ii) any person involved in conduct which 
                        is indistinguishable in all its material 
                        aspects from the specific conduct that is the 
                        subject of the no-action letter.
            ``(4) Fees.--
                    ``(A) In general.--The Director of FinCEN shall 
                develop a system to charge a fee for each request for a 
                no-action letter made under this subsection in an 
                amount sufficient, in the aggregate, to pay for the 
                cost of carrying out this subsection. Such system shall 
                provide for a lower fee for small business concerns and 
                small financial institutions compared to other persons.
                    ``(B) Notice and comment.--Not later than 45 days 
                after the date of the enactment of this paragraph, the 
                Director of FinCEN shall publish a description of the 
                fee system described in subparagraph (A) in the Federal 
                Register and shall solicit comments from the public for 
                a period of 60 days after publication.
                    ``(C) Finalization.--The Director of FinCEN shall 
                publish a final description of the fee system and 
                implement such fee system not later than 30 days after 
                the end of the public comment period described in 
                subparagraph (B).
            ``(5) Modifying or rescinding a no-action letter.--
                    ``(A) In general.--The Director of FinCEN may 
                modify or rescind any no-action letter issued under 
                this subsection if--
                            ``(i) in light of changes in statute, 
                        regulations, or policy the letter no longer 
                        sets forth the interpretation of FinCEN with 
                        respect to the content of the letter; or
                            ``(ii) any fact or statement submitted in 
                        the original inquiry is found to be materially 
                        inaccurate or incomplete.
                    ``(B) No reliance on rescinded letter.--Paragraph 
                (3) shall not apply to the any actions taken after the 
                date that a no-action letter is rescinded.
                    ``(C) Retroactive modification or rescission.--A 
                no-action letter may be modified or rescinded 
                retroactively only with respect to one or more parties 
                to the original inquiry and only if the Director of 
                FinCEN determines that--
                            ``(i) a fact or statement in the original 
                        inquiry was materially inaccurate or 
                        incomplete;
                            ``(ii) the requestor failed to notify in 
                        writing FinCEN of a material change to any fact 
                        or statement in the original request; or
                            ``(iii) a party to the original inquiry 
                        acted in bad faith when relying upon the no-
                        action letter.
                    ``(D) Notice of modification and rescission.--In 
                the case that the Director of FinCEN modifies or 
                rescinds a no-action letter under this subsection, the 
                Director of FinCEN shall--
                            ``(i) provide notice of such modification 
                        or rescission;
                            ``(ii) establish a reasonable time period, 
                        of not less than 90 days, in which impacted 
                        persons may update their anti-money laundering 
                        programs or processes to achieve compliance 
                        with the Bank Secrecy Act, the USA PATRIOT Act, 
                        or any other anti-money laundering and counter 
                        terrorist financing law or regulation.
            ``(6) Definitions.--For purposes of this subsection:
                    ``(A) Bank secrecy act.--The term `Bank Secrecy 
                Act' means--
                            ``(i) section 21 of the Federal Deposit 
                        Insurance Act;
                            ``(ii) chapter 2 of title I of Public Law 
                        91-508; and
                            ``(iii) subchapter II of chapter 53 of this 
                        title.
                    ``(B) Federal functional regulator.--The term 
                `Federal functional regulator' has the meaning given 
                that term under section 5312 of title 31, United States 
                Code.
                    ``(C) Small business concern.--The term `small 
                business concern' has the meaning given under section 3 
                of the Small Business Act.''.
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