Title: Strengthening Cybersecurity for the Financial Sector Act of 2020
Policy area: Finance and Financial Sector

Summary:
Strengthening Cybersecurity for the Financial Sector Act of 2020
This bill requires a Federal Home Loan Bank or government-sponsored enterprise to notify the Federal Housing Finance Agency of any services performed off its premises. The performance of these services is subject to regulation and examination. The bill also applies to credit unions existing limitations regarding investments by depository institutions in a bank service company.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8740 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 8740

  To amend the Bank Service Company Act to cover credit unions to the 
   same extent as such Act covers banks and savings associations, to 
  provide the Director of the Federal Housing Finance Agency with the 
    authority to regulate the provision of services provided to the 
 Government-sponsored enterprises and Federal Home Loan Banks, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 12, 2020

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

_______________________________________________________________________

                                 A BILL


 
  To amend the Bank Service Company Act to cover credit unions to the 
   same extent as such Act covers banks and savings associations, to 
  provide the Director of the Federal Housing Finance Agency with the 
    authority to regulate the provision of services provided to the 
 Government-sponsored enterprises and Federal Home Loan Banks, 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 ``Strengthening Cybersecurity for the 
Financial Sector Act of 2020''.

SEC. 2. INCLUSION OF CREDIT UNIONS UNDER THE BANK SERVICE COMPANY ACT.

    The Bank Service Company Act is amended--
            (1) in section 1(b) (12 U.S.C. 1861(b))--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) the term `appropriate Federal banking agency'--
                    ``(A) has the meaning given that term under section 
                3 of the Federal Deposit Insurance Act (12 U.S.C. 
                1813); and
                    ``(B) means the National Credit Union 
                Administration, in the case of a credit union;'';
                    (B) by amending paragraph (5) to read as follows:
            ``(5) the term `insured depository institution'--
                    ``(A) has the meaning given that term under section 
                3 of the Federal Deposit Insurance Act (12 U.S.C. 
                1813); and
                    ``(B) means an insured credit union, as defined 
                under section 101 of the Federal Credit Union Act (12 
                U.S.C. 1752);'';
                    (C) in paragraph (8), by striking ``and'' at the 
                end;
                    (D) in paragraph (9)--
                            (i) by inserting before ``and'' the 
                        following: ``, `savings association',''; and
                            (ii) by striking the period at the end and 
                        inserting a semicolon; and
                    (E) by adding at the end the following:
            ``(10) the term `credit union' means a Federal credit union 
        or a State credit union; and
            ``(11) the terms `insured credit union', `Federal credit 
        union', and `State credit union' have the meaning given those 
        terms, respectively, under section 101 of the Federal Credit 
        Union Act (12 U.S.C. 1752).'';
            (2) in section 2 (12 U.S.C. 1862), by striking ``banks or 
        savings associations'' and inserting ``depository 
        institutions''; and
            (3) in section 4 (12 U.S.C. 1864)--
                    (A) in subsection (c), by striking ``State bank or 
                State savings association'' each place such term 
                appears and inserting ``State bank, State savings 
                association, or State credit union'';
                    (B) in subsection (d), by striking ``national bank 
                or Federal savings association'' each place such term 
                appears and inserting ``national bank, Federal savings 
                association, or Federal credit union''; and
                    (C) in subsection (f), by striking ``banks or 
                savings associations'' and inserting ``depository 
                institutions''.

SEC. 3. REGULATION OF SERVICE PROVIDERS BY FHFA.

    Subpart A of part 2 of subtitle A of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4541 
et seq.) is amended by adding at the end the following new section:

``SEC. 1329. REGULATION OF SERVICE PROVIDERS.

    ``Whenever a Federal Home Loan Bank or enterprise (or any 
subsidiary or affiliate of such a Bank or enterprise) causes to be 
performed for itself, by contract or otherwise, any services, whether 
on or off its premises--
            ``(1) such performance shall be subject to regulation and 
        examination by the Director to the same extent as if such 
        services were being performed by such Bank or enterprise itself 
        on its own premises; and
            ``(2) the Bank or enterprise shall notify the Director of 
        the existence of the service relationship within thirty days 
        after the making of such service contract or the performance of 
        the service, whichever occurs first.''.
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