Financial Institution Customer Protection Act of 2016

Bill: 114-hr-766
Sponsor: Rep. Luetkemeyer, Blaine [R-MO-3]
Introduced: 2015-02-05 in the House
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures
Asia
Bank accounts, deposits, capital
Banking and financial institutions regulation
Business records
Congressional oversight
Consumer affairs
Department of the Treasury
Evidence and witnesses
Federal Deposit Insurance Corporation (FDIC)
Federal Reserve System
Government information and archives
Iran
Judicial procedure and administration
Middle East
National Credit Union Administration
North Korea
Syria
Terrorism

Summary:
action_date: 2015-02-05
text: 

Financial Institution Customer Protection Act of 2015

 
 Prohibits a federal banking agency from formally or informally suggesting, requesting, or ordering a depository institution to terminate either a specific customer account, or group of customer accounts, or otherwise restrict or discourage it from entering into or maintaining a banking relationship with a specific customer or group of customers, unless: (1) the agency has a material reason to do so, and (2) the reason is not based solely on reputation risk.
 
Deems the &quot;material reason&quot; criterion satisfied if a federal banking agency believes that a specific customer or group of customers poses a threat to national security, including any belief that they are involved in terrorist financing. 
 
Prescribes notice requirements incumbent upon the federal banking agency to the depository institution regarding customer account restriction or termination, but states that the agency's notice to the customer is not required. 
 
Prohibits any notice to the customer if the federal banking agency requests or orders a depository institution to terminate a customer account (or a group of customer accounts) based upon a belief that customer or those customers pose a threat to national security.
 
Amends the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to revise requirements for summoning witnesses and requiring production of books or other records the Attorney General deems relevant or material to a civil investigation in contemplation of a civil proceeding which may result in civil penalties for specified violations.

action_date: 2016-01-28
text: 
(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)
 

Financial Institution Customer Protection Act of 2015

 
 (Sec. 2) This bill prohibits a federal banking agency from formally or informally suggesting, requesting, or ordering a depository institution to terminate either a specific customer account, or group of customer accounts, or otherwise restrict or discourage it from entering into or maintaining a banking relationship with a specific customer or group of customers, unless: (1) the agency has a material reason to do so, and (2) the reason is not based solely on reputation risk.
 
The &quot;material reason&quot; criterion shall be satisfied if a federal banking agency believes that a specific customer or group of customers poses a threat to national security, including any belief that they are involved in terrorist financing. 
 
Nothing shall be construed as requiring a depository institution or an appropriate federal banking agency to inform a customer or customers of the justification for the customer's account termination.
 
No notice may be given to the customer, furthermore, if the federal banking agency requests or orders a depository institution to terminate a customer account (or a group of customer accounts) based upon a belief that customer or those customers pose a threat to national security.
 
(Sec. 3) The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 is amended to revise requirements for summoning witnesses and requiring production of books or other records the Attorney General deems relevant or material to a civil investigation in contemplation of a civil proceeding which may result in civil penalties for specified violations.

action_date: 2016-02-04
text: 

Financial Institution Customer Protection Act of 2016

 
 (Sec. 2) This bill prohibits a federal banking agency from formally or informally suggesting, requesting, or ordering a depository institution to terminate either a specific customer account, or group of customer accounts, or otherwise restrict or discourage it from entering into or maintaining a banking relationship with a specific customer or group of customers, unless: (1) the agency has a material reason to do so, and (2) the reason is not based solely on reputation risk.
 
The &quot;material reason&quot; criterion shall be satisfied if an agency believes that a specific customer or group of customers poses a threat to national security, including any belief that they are involved in terrorist financing. 
 
Unless the appropriate agency determines that the customer or group of customers has used due diligence to avoid doing business with any entity described below, the bill deems the criteria addressing &quot;material reason&quot; to be met if the agency believes a customer or group of customers is, or is acting as, a conduit for an entity which: 
 
 
 poses a threat to national security; 
 
 is involved in terrorist financing; 
 
 is an agency of the government of Iran, North Korea, Syria, or any country listed from time to time on the State Sponsors of Terrorism list; 
 
 is either located in, or subject to the jurisdiction of, any of such countries; or 
 
 does business with any entity located in such countries.
 
 
If an appropriate federal banking agency orders a depository institution to terminate a specific customer account or a group of customer accounts, the depository institution shall inform the customer or customers of the justification for the termination.
 
No notice may be given to the customer, however, if the agency requests or orders a depository institution to terminate a customer account (or a group of customer accounts) based upon a belief that customer or those customers pose a threat to national security or are otherwise described above.
 
(Sec. 3) The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 is amended to revise requirements for summoning witnesses and requiring production of books or other records the Attorney General deems relevant or material to a civil investigation in contemplation of a civil proceeding which may result in civil penalties for specified violations.


Legislative actions:
action_date: 2016-02-08
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2016-02-04
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2016-02-04
text: On passage Passed by the Yeas and Nays: 250 - 169 (Roll no. 63).
action_date: 2016-02-04
text: Passed/agreed to in House: On passage Passed by the Yeas and Nays: 250 - 169 (Roll no. 63).
action_date: 2016-02-04
text: MOMENT OF SILENCE - The House observed a moment of silence in memory of 12 Marines who lost their lives in a January 14 training accident in Hawaii.
action_date: 2016-02-04
text: On motion to recommit with instructions Failed by the Yeas and Nays: 177 - 240 (Roll no. 62).
action_date: 2016-02-04
text: The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H582)
action_date: 2016-02-04
text: DEBATE - The House proceeded with 10 minutes of debate on the Castor (FL) motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment to add at the end of the bill the following to ensure financial institutions must prove to federal banking regulatory agencies that in the preceding 5 years they have not been subjected to a consent order, settlement, deferred prosecution agreement, or civil or criminal penalty for unfair or deceptive acts and practices relating to the sale of a mortgage product.
action_date: 2016-02-04
text: Ms. Castor (FL) moved to recommit with instructions to the Committee on Financial Services. (consideration: CR H581-582; text: CR H581)
action_date: 2016-02-04
text: The previous question was ordered pursuant to the rule. (consideration: CR H580)
action_date: 2016-02-04
text: The House rose from the Committee of the Whole House on the state of the Union to report H.R. 766.
action_date: 2016-02-04
text: DEBATE - Pursuant to the provisions of H. Res. 595, the Committee of the Whole proceeded with 10 minutes of debate on the Gosar amendment No. 2.
action_date: 2016-02-04
text: DEBATE - Pursuant to the provisions of H. Res. 595, the Committee of the Whole proceeded with 10 minutes of debate on the Sherman amendment No. 1.
action_date: 2016-02-04
text: GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate on H.R. 766.
action_date: 2016-02-04
text: The Speaker designated the Honorable Alexander X. Mooney to act as Chairman of the Committee.
action_date: 2016-02-04
text: House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 595 and Rule XVIII.
action_date: 2016-02-04
text: Resolution provides for consideration of H.R. 1675 and H.R. 766.
action_date: 2016-02-04
text: Considered under the provisions of rule H. Res. 595. (consideration: CR H570-583; text of amendment in the nature of a substitute: CR H578)
action_date: 2016-02-03
text: Rule H. Res. 595 passed House.
action_date: 2016-02-02
text: Rules Committee Resolution H. Res. 595 Reported to House. Resolution provides for consideration of H.R. 1675 and H.R. 766.
action_date: 2016-01-28
text: Placed on the Union Calendar, Calendar No. 305.
action_date: 2016-01-28
text: Reported by the Committee on Financial Services. H. Rept. 114-402.
action_date: 2016-01-28
text: Reported by the Committee on Financial Services. H. Rept. 114-402.
action_date: 2015-07-29
text: Ordered to be Reported by the Yeas and Nays: 35 - 19.
action_date: 2015-07-29
text: Committee Consideration and Mark-up Session Held.
action_date: 2015-07-28
text: Committee Consideration and Mark-up Session Held.
action_date: 2015-06-11
text: Hearings Held by the Subcommittee on Financial Institutions and Consumer Credit Prior to Referral.
action_date: 2015-02-05
text: Referred to the House Committee on Financial Services.
action_date: 2015-02-05
text: Introduced in House
action_date: 2015-02-05
text: Introduced in House