,i #aacth ,,congress #ast ,session ,h4 ,r4 #ccag ,,in ,,the ,,house ,,of ,,representatives ,october #bc1 #bjac,ms4 ,waters 7for herself1 ,mrs4 ,carolyn ,b4 ,maloney of ,new ,york1 ,mr4 ,al ,green of ,texas1 ,mr4 ,clay1 ,mr4 ,capuano1 ,mr4 ,meeks1 ,ms4 ,moore1 and ,mr4 ,lynch7 introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committee on the ,judiciary1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to strengthen the ,federal statutes designed to deter money laundering and terrorism financing1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,holding ,individuals ,accountable and ,deterring ,money ,laundering ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,sec4 #b4 ,findings4,title ,i--,holding executives responsible for violations,sec4 #aja4 ,penalties for violations of the ,bank ,secrecy ,act4,sec4 #ajb4 ,criminal penalties4,sec4 #ajc4 ,strengthening civil injunctive authority4,sec4 #ajd4 ,clarification of removal and prohibition authority under the ,,fdia4,sec4 #aje4 ,independent litigation authority for ,fin,c,e,n4,sec4 #ajf4 ,treatment of executive compensation and personal liability4,sec4 #ajg4 ,corporate governance and the legal responsibilities4,title ,,ii--,strengthening of regulatory oversight and accountability,sec4 #bja4 ,reporting and oversight of ,bank ,secrecy ,act-related enforcement actions4,sec4 #bjb4 ,consideration of ,,bsa compliance in management ratings4,title ,,iii--,clarification of safe harbor protections,sec4 #cja4 ,safe harbor protections4,title ,,iv--,strengthening requirements and closing loopholes,sec4 #dja4 ,expanding the crimes that can be a predicate offense to money laundering4,sec4 #djb4 ,closing loopholes in ,bank ,secrecy ,act reporting4,sec4 #djc4 ,definition of an institution-affiliated party4,title ,v--,whistleblower protections,sec4 #eja4 ,modernization and upgrading whistleblower protections4,title ,,vi--,sense of the ,congress regarding criminal penalties,sec4 #fja4 ,sense of the ,congress4,title ,,vii--,strengthening global commitments,sec4 #gja4 ,international coordination4,sec4 #gjb4 ,sense of ,congress regarding list of countries at high risk for money laundering4 #b4 ,findings ,the ,congress finds the following3 7#a7 ,money laundering is a serious threat to our national and economic security4 ,the scale1 efficiency1 and complexity of the ,u4,s4 financial system make it a prime target for those who seek to conceal and move the proceeds of illicit activity4 7#b7 ,the spate of recent high-profile enforcement actions against some of the largest and most sophisticated financial institutions raises troubling questions about the effectiveness of ,u4,s4 domestic anti-money laundering and counter-terrorism financing regulatory1 compliance and enforcement efforts4 7#c7 ,money launderers have proven to adapt quickly in order to avoid detection4 ,u4,s4 anti-money laundering laws and regulations must be rigorously reviewed and constantly updated to close loopholes and address the changing tactics employed by bad actors4 7#d7 ,given the global nature of money laundering and terrorist financing and the increasing interrelatedness of the global financial system1 a secure global framework is essential to the integrity of the ,u4,s4 financial system4 7#e7 ,efforts to stanch the flow of illegal money across the world to drug cartels and terrorist organizations should be a top ,u4,s4 priority4 ,to achieve this mission1 extensive collaboration among financial regulators1 the ,department of ,treasury1 the ,department of ,state1 the ,department of ,justice and state and federal law enforcement agencies is required4 7#f7 ,u4,s4 anti-money laundering laws should meet international standards set by the ,financial ,action ,task ,force4 7#g7 ,without serious consequences for institutions and individuals who fail to protect financial institutions from illicit financial activity - including significant fines1 banning individuals from the industry1 and prison sentences for those who seek to actively evade anti-money laundering controls1 financial institutions and individuals will continue to avoid compliance with ,u4,s4 anti-money laundering rules and regulations4 7#h7 ,effective anti-money laundering programs must emphasize sound corporate governance including business line accountability and clear lines of legal responsibility for individuals1 including board members and chief executive officers4 7#i7 ,avoiding money laundering risks requires an effective anti-money laundering program and a strong institutional compliance culture1 with written standards1 knowledgeable and adequate staff1 strong monitoring processes1 effective anti-money laundering training1 and compensation structures that reward compliance4 7#aj7 ,anti-money laundering deficiencies often reflect weaknesses in the management of a financial firm1 which can in turn adversely affect the firm's overall safety and soundness4 ,failure to account for management deficiencies in this context may perpetuate a false perception of the stability of financial firms4 7#aa7 ,anti-money laundering examinations in recent years at times failed to recognize the cumulative effect of the violations they cited1 instead narrowly focusing their attention on individual banking units4 ,the failure to review the cumulative effect of such violations permitted national banks to avoid and delay correcting problems1 which allowed massive problems to occur before serious enforcement actions were taken4 7#ab7 ,independent contractors often play a central role in monitoring and auditing the overall adequacy and effectiveness of a bank's compliance program under the ,bank ,secrecy ,act4 ,any failure to hold these independent entities to the same standard as any other party who participates in the affairs of a bank may jeopardize the efficacy of a bank's anti-money laundering program4 7#ac7 ,collaboration is an essential component of the ,u4,s4 strategy against money laundering1 and is critical to our national security4 ,u4,s4 law enforcement agencies are most effective when they work together by sharing information1 insight1 and data4 7#ad7 ,the flow of information related to suspicious activity from financial institutions to law enforcement plays a key role in facilitating the disruption of terrorist networks that seek to harm the ,united ,states4 ,the flow of such information depends on a high degree of certainty that financial institutions will be protected from civil liability when sharing such information with federal law enforcement agencies4 7#ae7 ,whistleblower rights and protections play an important role in helping to ensure corporate integrity4 ,robust protections for whistleblowers and enhanced rewards for informants will incentivize compliance with anti-money laundering rules and procedures1 and encourage the provision of valuable information to regulators and law enforcement agencies4 ,i ,holding executives responsible for violations #aja4 ,penalties for violations of the ,bank ,secrecy ,act 7a7 ,civil monetary penalties for willful violations ,section #ecba7;a7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by striking 7a77#a7 ,a domestic financial institution and inserting the following3 7a7 ,in general 7#a7 ,civil monetary penalties for willful violations ,a domestic financial institution 2 7#b7 in paragraph 7#a7-- 7,a7 by striking willfully violating each place such term appears and inserting willfully violating1 or willfully causing any violation of12 7,b7 by striking the amount 7not to exceed #ajj1jjj7 involved in the transaction 7if any7 or #be1jjj and inserting #aj times the amount 7not to exceed #aj1jjj1jjj7 involved in the transaction 7if any7 or #bej1jjj2 and 7,c7 by adding at the end the following3 ,in determining appropriate monetary penalty amounts under this paragraph1 the ,secretary has the authority to ensure that penalty amounts are commensurate with the nature of the violations1 any patterns of violations1 and1 with respect to a financial institution or nonfinancial trade or business1 the size1 capitalization and market share of such institution or trade or business42 and 7#c7 in paragraph 7#d77;,a71 by inserting after who violates the following3 1 or causes any violation of14 7b7 ,civil monetary penalties for negligent violations ,section #ecba7;a77#f7 of title #ca1 ,united ,states ,code1 is amended to read as follows3 7#f7 ,negligence 7,a7 ,in general ,the ,secretary of the ,treasury may impose a civil money penalty1 for negligent violations of any provision of this subchapter or any regulation prescribed under this subchapter1 of not more than-- 7i7 #ej1jjj1 with respect to a financial institution or nonfinancial trade or business2 and 7ii7 #e1jjj1 with respect to any partner1 director1 officer1 or employee of an institution1 trade1 or business4 7,b7 ,violations of the requirement to maintain procedures to ensure compliance ,for a violation of a regulation prescribed under section #ecah7;a77#b71 a separate violation occurs for each day the violation continues and at each office1 branch1 or place of business at which a violation occurs or continues4 7,c7 ,determination of penalty amount ,in determining appropriate monetary penalty amounts under this paragraph1 the ,secretary has the authority to ensure that penalty amounts are commensurate with the nature of the violations1 any patterns of violations1 and1 with respect to a financial institution or nonfinancial trade or business1 the size1 capitalization and market share of such institution or trade or business4 4 #ajb4 ,criminal penalties 7a7 ,in general ,section #ecbb of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by redesignating subsections 7c7 and 7d7 as subsections 7d7 and 7e71 respectively2 7#b7 by inserting after subsection 7b7 the following3 7c7 ,facilitating evasion ,in the case of a person described under subsection 7a7 or 7b7 who additionally takes steps to facilitate evasion of a program or controls under a regulation prescribed or order issued under this subchapter 7except section #ecae or #ecbd of this title or a regulation prescribed under section #ecae or #ecbd71 section #ba of the ,federal ,deposit ,insurance ,act1 or section #abc of ,public ,law #ia-ejh1 the maximum prison terms under such subsections shall be treated as #bj years4 2 and 7#c7 by adding at the end the following3 7f7 ,report ,in any case in which the ,department of ,justice settles a case with an individual or institution for violations under the this subchapter in exchange for a monetary penalty1 the ,department shall report to the ,congress on why it did or did not pursue prison sentences in conjunction with the monetary penalty4 4 7b7 ,,gao review of ,bank ,secrecy ,act criminal sentences and mandatory minimum sentencing 7#a7 ,study ,the ,comptroller ,general of the ,united ,states shall carry out a study of the mandatory minimum sentencing laws and guidelines for narcotics-related offenses and the prosecutorial discretion provided to the ,department of ,justice in determining criminal penalties for persons found guilty of violating ,federal anti-money laundering laws4 ,in carrying out such study1 the ,comptroller ,general shall compare and contrast the severity of the two sets of felonies4 7#b7 ,report ,not later than the end of the #f-month period following the date of the enactment of this ,act1 the ,comptroller ,general shall issue a report to the ,congress containing all findings and determinations made in carrying out the study required by subsection 7a71 including any disparities identified in the appropriateness of the differing sentencing procedures and recommendations for establishing a more balanced sentencing system for ,federal felonious acts4 #ajc4 ,strengthening civil injunctive authority ,section #ecbj of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by striking ,when the ,secretary and inserting the following3 7a7 ,in general ,when the ,secretary 2 and 7#b7 by inserting after will violate the following3 or has caused1 is causing1 or will cause a violation of2 and 7#c7 by inserting at the end the following3 7b7 ,prohibition on certain individuals ,in any proceeding under subsection 7a71 the court may prohibit1 conditionally or unconditionally1 and permanently or for such period of time as it shall determine1 any individual who violated this subchapter1 or a regulation prescribed or order issued under this subchapter1 from acting as an officer or director of a financial institution if the person's conduct demonstrates unfitness to serve as an officer or director of a financial institution4 4 #ajd4 ,clarification of removal and prohibition authority under the ,,fdia ,section #h7;e77#b77;,a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7;e77#b77;,a77 is amended-- 7#a7 in clause 7i71 by striking was not inadvertent or unintentional and inserting involved a reckless disregard for the law or any applicable regulations or prior order of the appropriate ,federal banking agency2 and 7#b7 in clause 7ii71 by striking has knowledge and inserting knew1 or should have known14 #aje4 ,independent litigation authority for ,fin,c,e,n ,section #caj of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by redesignating subsection 7d7 as subsection 7e72 and 7#b7 by inserting after subsection 7c7 the following3 7d7 ,independent litigation authority ,fin,c,e,n may act in its own name and through its own attorneys in enforcing any provision of subchapter ,,ii of chapter #ec1 section #ba of the ,federal ,deposit ,insurance ,act1 section #abc of ,public ,law #ia-ejh1 any rules thereunder1 or any other law or regulation1 or in any action1 suit1 or proceeding relating to such laws or regulations to which the ,financial ,crimes ,enforcement ,network is a party4 4 #ajf4 ,treatment of executive compensation and personal liability 7a7 ,certain executive compensation incentives barred ,the appropriate ,federal banking agencies1 the ,securities and ,exchange ,commission1 the ,commodities ,futures ,trading ,commission1 and the ,financial ,crimes ,enforcement ,network shall issue regulations prohibiting financial institutions that are subject to an anti-money laundering program requirement under chapter ,x of title #ca1 ,code of ,federal ,regulations1 from providing executive compensation based on any criteria that could undermine compliance by individuals with the requirements of subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code1 section #ba of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b71 or section #abc of ,public ,law #ia-ejh4 7b7 ,no avoidance of personal liability 7#a7 ,in general ,an officer1 director1 employee1 or other institution-affiliated party of a financial institution that is subject to an anti-money laundering program requirement under chapter ,x of title #ca1 ,code of ,federal ,regulations1 who is required by a ,federal bank secrecy law that provides for personal liability1 or any rule or order promulgated by an appropriate ,federal banking agency1 the ,securities and ,exchange ,commission1 the ,commodity ,futures ,trading ,commission1 or the ,financial ,crimes ,enforcement ,network thereunder1 to repay previously earned executive compensation or pay a civil money penalty-- 7,a7 shall be personally liable for the amounts so owed2 and 7,b7 may not1 directly or indirectly1 insure or hedge against1 or otherwise transfer the risks associated with1 personal liability for the amounts so owed4 7#b7 ,rule of construction ,paragraph 7#a7 shall not preclude a person from being provided funds necessary to defend against an action to recover previously earned executive compensation or a civil money penalty described under paragraph 7#a7-- 7,a7 from the relevant financial institution subject to an anti-money laundering program under chapter ,x of title #ca1 ,code of ,federal ,regulations2 7,b7 under an insurance policy2 or 7,c7 pursuant to court order4 7c7 ,definitions ,for purposes of this section3 7#a7 ,appropriate ,federal banking agency ,the term appropriate ,federal banking agency has the meaning given such term under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#b7 ,executive compensation ,the term executive compensation means anything of value1 regardless of the form in which provided1 that is given by any institution subject to subsection 7a7 or its parent company to an officer1 director1 employee1 or other institution-affiliated party in return for that individual's service to such entity4 7#c7 ,federal bank secrecy law ,the term ,federal bank secrecy law means-- 7,a7 the reporting requirements set forth in section #ba of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b72 7,b7 section #abc of ,public ,law #ia-ejh2 and 7,c7 subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code4 7#d7 ,institution-affiliated party ,the term institution-affiliated party-- 7,a7 has the meaning given such term under subsection 7u7 of section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7,b7 shall apply with respect to an institution subject to subsection 7a7 and its parent company to the same extent as such subsection applies to an insured depository institution4 #ajg4 ,corporate governance and the legal responsibilities 7a7 ,in general ,chapter #ec of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by inserting after section #ecbb1 the following3 #ecbb;,a4 ,corporate governance and the legal responsibility of officers and employees 7a7 ,ensuring compliance ,the ,secretary of the ,treasury1 in consultation with the appropriate ,federal banking agencies1 the ,securities and ,exchange ,commission1 and the ,commodities ,futures ,trading ,commission1 shall issue regulations requiring each financial institution that is subject to an anti-money laundering program requirement under chapter ,x of title #ca1 ,code of ,federal ,regulations1 to ensure compliance with the anti-money laundering program requirements described under section #ecah7;h7 by establishing written policies1 procedures1 and risk management standards for ensuring compliance with the requirements of this subtitle that-- 7#a7 require the head of compliance for each business line of such institution to make regular reports directly to the board of directors and the chief executive officer of such institution on the business line's compliance activities2 7#b7 require the board to certify each report received pursuant to paragraph 7#a72 7#c7 ensure adequate staffing and funding for entities within the institution responsible for compliance with the requirements of this subtitle2 and 7#d7 periodically test the effectiveness of the institution's programs for compliance with the requirements of this subtitle4 7b7 ,legal responsibility of certain officers and employees ,with respect to any violation of this subtitle by a each financial institution that is subject to an anti-money laundering program requirement under chapter ,x of title #ca1 ,code of ,federal ,regulations1 any officer or other employee who was in a position that would have enabled such officer or employee to materially affect compliance with the requirements of this subtitle shall also be in violation of this subtitle1 if such officer or other employee knew1 or should have known1 that such violation was being committed and did not take meaningful steps to stop such violation4 7c7 ,clawback employment provision ,each financial institution that is subject to an anti-money laundering program requirement under chapter ,x of title #ca1 ,code of ,federal ,regulations1 shall1 in each employment agreement entered into by such institution1 include a provision that gives the institution the right to require the repayment of any bonus or other compensation paid to the employee in any case where such employee was violating a provision of this subchapter and knew1 or should have known1 of such violation4 7d7 ,definition ,for purposes of this section1 the term appropriate ,federal banking agency has the meaning given such term under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4#ahac74 2 and 7#b7 in the table of contents for such chapter1 by inserting after the item relating to section #ecbb the following new item3 #ecbb;,a4 ,corporate governance and the legal responsibility of officers and employees 4 7b7 ,effective date ,the amendments made by subsection 7a7 shall apply to a financial institution 7as such term is defined under section #ecab of title #ca1 ,united ,states ,code7 after the end of the #f-month period beginning on the date of the enactment of this ,act4 ,,ii ,strengthening of regulatory oversight and accountability #bja4 ,reporting and oversight of ,bank ,secrecy ,act-related enforcement actions 7a7 ,in general ,chapter #ec of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by inserting after section #ecbf the following3 #ecbg4 ,oversight of examination and enforcement activities 7a7 ,reporting of enforcement activities to ,fin,c,e,n ,each appropriate ,federal banking agency1 the ,securities and ,exchange ,commission1 and the ,commodity ,futures ,trading ,commission shall report to ,fin,c,e,n on each formal and informal enforcement or supervisory action1 including each matter requiring attention1 and each matter requiring immediate attention1 related to a violation of this subchapter or anti-money laundering deficiency1 taken by such agency to enforce the requirements of this subchapter1 including1 for each such action-- 7#a7 the type of violation or deficiency with respect to which the enforcement or supervisory action was taken2 and 7#b7 the specific type of formal or informal enforcement or supervisory action taken4 7b7 ,review of reports by ,fin,c,e,n 7#a7 ,in general ,fin,c,e,n shall review all reports submitted by agencies under subsection 7a7 to identify systemic or repeated instances of non-compliance and1 if ,fin,c,e,n determines that an agency has failed to adequately or appropriately carry out the agency's enforcement responsibilities with respect to the requirements of this subchapter1 ,fin,c,e,n shall issue a report to such agency containing an explanation of ,fin,c,e,n's determination4 7#b7 ,report to the ,congress ,fin,c,e,n shall issue an annual report to the ,congress containing-- 7,a7 a summary of all formal and informal enforcement or supervisory actions for which ,fin,c,e,n received notification from the agencies under subsection 7a71 but without any privileged or confidential information contained in such report1 as identified by the agency submitting the report2 and 7,b7 any recommendations made by ,fin,c,e,n to such agencies in response to a determination by ,fin,c,e,n that the agency failed to adequately or appropriately carry out the agency's enforcement or supervisory responsibility or failed to take adequate or appropriate corrective action in response to any individual violation or pattern of violations4 7c7 ,inspector ,general review of procedures ,the ,inspector ,general of each appropriate ,federal banking agency shall-- 7#a7 carry out at least one review each year of the agency's examination and enforcement activities with respect to ensuring compliance with the requirements of this subchapter and ensuring adequate resources are being devoted to such enforcement2 and 7#b7 make such reviews available to the public1 including on the website of the ,inspector ,general4 7d7 ,definitions ,for purposes of this section3 7#a7 ,fin,c,e,n ,the term ,fin,c,e,n means the ,financial ,crimes ,enforcement ,network4 7#b7 ,other terms ,the terms appropriate ,federal banking agency and insured depository institution have the meaning given those terms1 respectively1 under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4#ahac74 2 and 7#b7 in the table of contents for such chapter1 by inserting after the item relating to section #ecbf the following new item3 #ecbg4 ,oversight of examination and enforcement activities4 4 7b7 ,confidentiality of information submitted to ,fin,c,e,n ,section #caj of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by redesignating subsection 7d7 as subsection 7e72 and 7#b7 by inserting after subsection 7c7 the following3 7d7 ,confidentiality of information submitted to ,fin,c,e,n ,the submission by any appropriate ,federal banking agency 7as such term is defined under section #c of the ,federal ,deposit ,insurance ,act7 of any information to ,fin,c,e,n for any purpose in the course of any supervisory or regulatory process of such agency shall not be construed as waiving1 destroying1 or otherwise affecting any privilege1 including confidentiality of supervisory information1 that any agency or person may claim with respect to such information under ,federal or ,state law4 4 #bjb4 ,consideration of ,,bsa compliance in management ratings 7a7 ,in general ,to the extent there are ratings of a depository institution's management and internal controls1 the appropriate ,federal banking agencies shall consider the extent to which the institution complies with the requirements of the ,bank ,secrecy ,act4 7b7 ,definitions 7#a7 ,bank ,secrecy ,act ,the term ,bank ,secrecy ,act has the meaning given the term ,federal bank secrecy law under section #ajf7;c77#e74 7#b7 ,other definitions ,the terms appropriate ,federal banking agency and depository institution have the meaning given those terms1 respectively1 under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 ,,iii ,clarification of safe harbor protections #cja4 ,safe harbor protections 7a7 ,disclosure to ,government agencies ,section #ecah7;g77#c77;,b7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in clause 7i71 by striking or at the end2 7#b7 in clause 7ii71 by striking the period and inserting 2 or2 and 7#c7 by adding at the end the following3 7iii7 any duty or requirement of a financial institution or any director1 officer1 employee1 or agent of such institution to demonstrate that a disclosure described in subparagraph 7,a7 is made in good faith4 4 7b7 ,disclosure to financial institutions ,section #cad of the ,,usa ,,patriot ,act 7#ca ,u4,s4,c4 #ecaa note7 is amended-- 7#a7 in subsection 7b7-- 7,a7 by striking terrorist or money laundering activities and inserting terrorist or money laundering activities or a specified unlawful activity 7as defined in section #aief7;c77#g7 of title #ah1 ,united ,states ,code72 and 7,b7 by striking terrorist acts or money laundering activities and inserting such acts or activities2 and 7#b7 in subsection 7c71 by striking terrorist acts or money laundering activities and inserting terrorist or money laundering activities or a specified unlawful activity 7as defined in section #aief7;c77#g7 of title #ah1 ,united ,states ,code74 ,,iv ,strengthening requirements and closing loopholes #dja4 ,expanding the crimes that can be a predicate offense to money laundering ,section #aief7;c77#g7 of title #ah1 ,united ,states ,code1 is amended to read as follows3 7#g7 the term specified unlawful activity means any act or activity constituting an offense in violation of the laws of the ,united ,states punishable by imprisonment for a term exceeding #a year2 4 #djb4 ,closing loopholes in ,bank ,secrecy ,act reporting 7a7 ,report to ,congress on the status of the temporary exemptions ,fin,c,e,n shall issue a report to ,congress on the status of the temporary exemptions under section #ajaj4bje7;b7 of title #ca1 ,code of ,federal ,regulations1 including any reviews1 studies1 or proposed or notice of a rulemaking that ,fin,c,e,n has undertaken with regard to each financial institution that is exempted from the requirement concerning the establishment of anti-money laundering programs4 ,the report shall also include a justification for the exemption of each category of financial institution exempted under the regulation4 7b7 ,reporting by certain transporters ,not later than the end of the #bgj-;day period beginning on the date of the enactment of this ,act1 the ,secretary of the ,treasury shall issue final regulations to establish the manner in which operators of armored cars and other commercial monetary instrument transport enterprises are to comply with the reporting requirements under section #ecaf of title #ca1 ,united ,states ,code4 #djc4 ,definition of an institution-affiliated party 7a7 ,definition ,section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac7u77 is amended-- 7#a7 in subsection 7u77#d71 by striking knowingly and all that follows through the end of the paragraph and inserting participates in the conduct of1 the affairs of1 or conducts the business of an insured depository institution42 and 7#b7 by adding at the end the following3 7aa7 ,unsafe or unsound practice ,the term unsafe or unsound practice means1 any action1 or lack of action1 which is contrary to generally accepted standards of prudent operation1 the possible consequences of which1 if continued1 would be abnormal risk or loss or damage to an institution1 its shareholders1 or the ,deposit ,insurance ,fund4 4 7b7 ,rule of construction related to independent contractors ,section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7 is amended by adding at the end the following3 7x7 ,rule of construction related to independent contractors ,for purposes of this ,act1 an independent contractor participates in the conduct of the affairs of1 or conducts the business of1 an insured depository institution by performing services for the institution4 4 ,v ,whistleblower protections #eja4 ,modernization and upgrading whistleblower protections 7a7 ,in general ,section #ecbh of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by striking subsections 7a7 and 7b7 and inserting the following3 7a7 ,prohibition against discrimination ,no financial institution or nonfinancial trade or business may discharge or otherwise discriminate against any applicant for employment1 employee1 or former employee with respect to compensation1 terms1 conditions1 or privileges of employment because the applicant1 employee1 or former employee 7or any person acting pursuant to the request of the employee7-- 7#a7 provided1 was about to provide1 assisted in providing1 or was perceived as providing information to the ,secretary of the ,treasury1 the ,attorney ,general1 any ,federal supervisory agency1 or the ,congress regarding a possible violation of any provision of this subchapter or section #aief1 #aieg1 or #aifj of title #ah1 or any regulation under any such provision1 by the financial institution or nonfinancial trade or business or any director1 officer1 or employee of the financial institution or nonfinancial trade or business2 or 7#b7 objected to1 or refused to participate in1 any activity1 policy1 practice1 or assigned task that the applicant1 employee1 former employee 7or other such person7 reasonably believed to be in violation of any provision of this subchapter or any other ,act enforced by the ,secretary of the ,treasury1 the ,attorney ,general1 a ,federal supervisory agency1 or any order1 rule1 regulation1 standard1 or ban under this subchapter of any of such ,acts4 7b7 ,enforcement ,within the #b-year period beginning on the date an applicant1 employee1 or former employee who believes that such applicant1 employee1 or former employee has been discharged or discriminated against in violation of subsection 7a71 such applicant1 employee1 or former employee may-- 7#a7 file a civil action in the appropriate ,united ,states district court1 in accordance with the burdens of proof and remedies set forth in section #ajeg of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #eefg72 or 7#b7 file a complaint with the ,secretary of ,labor with regards to a violation of subsection 7a7 to seek relief in accordance with the procedures1 burdens of proof1 and remedies set forth in section #ajeg of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #eefg7 for a violation of subsection 7a7 of such section1 except that for purposes of such a complaint1 the time period specified under subsection 7c77#a77;,a7 of such section shall be deemed to be a #b-year period4 2 7#b7 in subsection 7c71 by inserting after district court the following3 or the ,secretary1 as applicable12 and 7#c7 by amending subsection 7e7 to read as follows3 7e7 ,education ,the ,secretary of the ,treasury shall issue regulations requiring each financial institution and nonfinancial trade or business to provide education and training to its employees on the rights and remedies provided under this section1 including through individual notice to its employees1 posting information on its website home page1 and providing mandatory training for its employees4 ,such education and training may be incorporated into existing education or training on the requirements of this subtitle provided by such institution or trade or business4 7f7 ,independent lines of communication ,the ,secretary of the ,treasury shall issue regulations requiring each financial institution and nonfinancial trade or business-- 7#a7 to have a procedure in place for an employee or former employee to report directly to the chief executive officer1 a representative appointed by and reporting directly to the chief executive officer who is specifically designated to receive such a report1 or through a hotline consistent with professional best practices to the audit committee of the board of directors1 if such employee or former employee believes that violations of this subchapter have occurred or are occurring at such institution1 trade1 or business2 and 7#b7 to not discriminate against an employee or former employee for such reports4 4 7b7 ,rewards ,section #ecbc7;d7 of title #ca1 ,united ,states ,code1 is amended to read as follows3 7d7 ,source of rewards ,for the purposes of paying an award under this section1 there are authorized to be appropriated such sums as may be necessary1 and the ,secretary may also use funds from the ,department of the ,treasury ,forfeiture ,fund and the ,department of ,justice ,assets ,forfeiture ,fund4 4 7c7 ,whistleblower incentives ,chapter #ec of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by inserting after section #ecbc the following3 #ecbc;,a4 ,whistleblower incentives 7a7 ,definitions ,for purposes of this section3 7#a7 ,bank ,secrecy ,act ,the term ,bank ,secrecy ,act means this subchapter1 section #ba of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b71 and section #abc of ,public ,law #ia-ejh4 7#b7 ,covered judicial or administrative action ,the term covered judicial or administrative action means any judicial or administrative action brought by ,fin,c,e,n under the ,bank ,secrecy ,act that results in monetary sanctions exceeding #a1jjj1jjj4 7#c7 ,fin,c,e,n ,the term ,fin,c,e,n means the ,financial ,crimes ,enforcement ,network4 7#d7 ,monetary sanctions ,the term monetary sanctions1 when used with respect to any judicial or administrative action1 means-- 7,a7 any monies1 including penalties1 disgorgement1 and interest1 ordered to be paid2 and 7,b7 any monies deposited into a disgorgement fund as a result of such action or any settlement of such action4 7#e7 ,original information ,the term original information means information that-- 7,a7 is derived from the independent knowledge or analysis of a whistleblower2 7,b7 is not known to ,fin,c,e,n from any other source1 unless the whistleblower is the original source of the information2 and 7,c7 is not exclusively derived from an allegation made in a judicial or administrative hearing1 in a governmental report1 hearing1 audit1 or investigation1 or from the news media1 unless the whistleblower is a source of the information4 7#f7 ,related action ,the term related action1 when used with respect to any judicial or administrative action brought by ,fin,c,e,n1 means any judicial or administrative action that is based upon original information provided by a whistleblower that led to the successful enforcement of the action4 7#g7 ,whistleblower ,the term whistleblower means any individual who provides1 or #b or more individuals acting jointly who provide1 information relating to a violation of laws enforced by ,fin,c,e,n1 in a manner established1 by rule or regulation1 by ,fin,c,e,n4 7b7 ,awards 7#a7 ,in general ,in any covered judicial or administrative action1 or related action1 ,fin,c,e,n1 under regulations it prescribes and subject to subsection 7c71 shall pay an award or awards to #a or more whistleblowers who voluntarily provided original information to ,fin,c,e,n that led to the successful enforcement of the covered judicial or administrative action1 or related action1 in an aggregate amount equal to-- 7,a7 not less than #aj percent1 in total1 of what has been collected of the monetary sanctions imposed in the action or related actions2 and 7,b7 not more than #cj percent1 in total1 of what has been collected of the monetary sanctions imposed in the action or related actions4 7#b7 ,source of awards ,for the purposes of paying any award under paragraph 7#a7 there are authorized to be appropriated such sums as may be necessary1 and the ,secretary may also use funds from the ,department of the ,treasury ,forfeiture ,fund and the ,department of ,justice ,assets ,forfeiture ,fund4 7c7 ,determination of amount of award2 denial of award 7#a7 ,determination of amount of award 7,a7 ,discretion ,the determination of the amount of an award made under subsection 7b7 shall be in the discretion of ,fin,c,e,n4 7,b7 ,criteria ,in responding to a disclosure and determining the amount of an award made1 ,fin,c,e,n shall meet with the whistleblower to discuss evidence disclosed and rebuttals to the disclosure1 and-- 7i7 shall take into consideration-- 7,i7 the significance of the information provided by the whistleblower to the success of the covered judicial or administrative action2 7,,ii7 the degree of assistance provided by the whistleblower and any legal representative of the whistleblower in a covered judicial or administrative action2 7,,iii7 the mission of ,fin,c,e,n in deterring violations of the law by making awards to whistleblowers who provide information that lead to the successful enforcement of such laws2 and 7,,iv7 such additional relevant factors as ,fin,c,e,n may establish by rule or regulation2 and 7ii7 shall not take into consideration the balance of any fund described under section #ecbc7;d74 7#b7 ,denial of award ,no award under subsection 7b7 shall be made-- 7,a7 to any whistleblower who is1 or was at the time the whistleblower acquired the original information submitted to ,fin,c,e,n1 a member1 officer1 or employee of-- 7i7 an appropriate regulatory agency2 7ii7 the ,department of ,justice2 7iii7 a self-regulatory organization2 or 7iv7 a law enforcement organization2 7,b7 to any whistleblower who is convicted of a criminal violation related to the judicial or administrative action for which the whistleblower otherwise could receive an award under this section2 7,c7 to any whistleblower who gains the information through the performance of an audit of financial statements required under the ,bank ,secrecy ,act and for whom such submission would be contrary to its requirements2 or 7,d7 to any whistleblower who fails to submit information to ,fin,c,e,n in such form as ,fin,c,e,n may1 by rule1 require4 7#c7 ,statement of reasons ,for any decision granting or denying an award1 ,fin,c,e,n shall provide to the whistleblower a statement of reasons that includes findings of fact and conclusions of law for all material issues 7d7 ,representation 7#a7 ,permitted representation ,any whistleblower who makes a claim for an award under subsection 7b7 may be represented by counsel4 7#b7 ,required representation 7,a7 ,in general ,any whistleblower who anonymously makes a claim for an award under subsection 7b7 shall be represented by counsel if the whistleblower anonymously submits the information upon which the claim is based4 7,b7 ,disclosure of identity ,prior to the payment of an award1 a whistleblower shall disclose their identity and provide such other information as ,fin,c,e,n may require1 directly or through counsel for the whistleblower4 7e7 ,appeals ,any determination made under this section1 including whether1 to whom1 or in what amount to make awards1 shall be in the discretion of ,fin,c,e,n4 ,any such determination1 except the determination of the amount of an award if the award was made in accordance with subsection 7b71 may be appealed to the appropriate court of appeals of the ,united ,states not more than #cj days after the determination is issued by ,fin,c,e,n4 ,the court shall review the determination made by ,fin,c,e,n in accordance with section #gjf of title #e4 2 and 7#b7 in the table of contents for such chapter1 by inserting after the item relating to section #ecbc the following new item3 #ecbc;,a4 ,whistleblower incentives 4 ,,vi ,sense of the ,congress regarding criminal penalties #fja4 ,sense of the ,congress ,it is the sense of ,congress that the ,department of ,justice should vigorously pursue criminal penalties to the maximum extent of the law1 including prison sentences1 for individuals who willfully violate ,bank ,secrecy ,act anti-money laundering laws1 thereby exposing the ,u4,s4 financial system to a wide array of money laundering1 drug trafficking and terrorism financing risks4 ,,vii ,strengthening global commitments #gja4 ,international coordination ,the ,secretary of the ,treasury shall work with the ,secretary's foreign counterparts1 including through the ,financial ,action ,task ,force1 the ,international ,monetary ,fund1 the ,world ,bank1 and the ,united ,nations1 to promote stronger anti-money laundering frameworks and enforcement of anti-money laundering laws4 #gjb4 ,sense of ,congress regarding list of countries at high risk for money laundering ,it is the sense of ,congress that when ,treasury identifies countries or jurisdictions as a primary money laundering concern under section #caa of the ,,usa ,patriot ,act1 it should consider-- 7#a7 countries and jurisdictions identified by the ,department of ,state in its annual ,international ,narcotics ,control ,strategy ,report as ,jurisdictions of ,primary ,concern or jurisdiction's subject to heightened scrutiny2 7#b7 whether the ,financial ,action ,task ,force has identified a country or jurisdiction as having anti-money laundering or counter-terrorism financing deficiencies and to which countermeasures apply2 and 7#c7 countries and jurisdictions that have not made sufficient progress in addressing the deficiencies identified by the ,financial ,action ,task ,force or have not committed to an action plan developed with the ,financial ,action ,task ,force to address the deficiencies4