,i #aacth ,,congress #b;d ,session ,h4 ,r4 #egeh ,,in ,,the ,,house ,,of ,,representatives ,november #bj1 #bjad ,mr4 ,luetkemeyer 7for himself1 ,mr4 ,murphy of ,florida1 ,mr4 ,hastings of ,florida1 and ,mr4 ,stivers7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to provide requirements for the appropriate ,federal banking agencies when requesting or ordering a depository institution to terminate a specific customer account1 to provide for additional requirements related to subpoenas issued under the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,financial ,institution ,customer ,protection ,act of #bjad4 #b4 ,requirements for deposit account termination requests and orders 7a7 ,termination requests or orders must be material 7#a7 ,in general ,an appropriate ,federal banking agency may not suggest1 request1 or order a depository institution to terminate a specific customer account or to otherwise restrict or discourage a depository institution from entering into or maintaining a banking relationship with a specific customer unless-- 7,a7 the agency has a material reason for such suggestion1 request1 or order2 and 7,b7 such reason is not based solely on reputation risk4 7#b7 ,treatment of national security threats ,if an appropriate ,federal banking agency believes a specific customer poses a threat to national security1 including any belief that such customer is involved in terrorist financing1 such belief shall satisfy the materiality requirement under paragraph 7#a77;,a74 7#c7 ,rulemaking ,not later than the end of the #fj-;day period beginning on the date of the enactment of this ,act1 the appropriate ,federal banking agencies shall1 jointly1 issue regulations defining the term reputation risk for purposes of this section4 7b7 ,notice requirement 7#a7 ,in general ,if an appropriate ,federal banking agency suggests1 requests1 or orders a depository institution to terminate a specific customer account1 the agency shall-- 7,a7 provide such suggestion1 request1 or order to the institution in writing2 and 7,b7 accompany such suggestion1 request1 or order with a justification for why such termination is needed1 including any specific laws or regulations the agency believes are being violated by the customer1 if any4 7#b7 ,justification requirement ,a justification described under paragraph 7#a77;,b7 may not be based solely on the reputation risk to the depository institution4 7c7 ,customer notice 7#a7 ,notice not required ,nothing in this section shall be construed as requiring a depository institution or an appropriate ,federal banking agency to inform a customer of the justification for the customer's account termination described under subsection 7b74 7#b7 ,notice prohibited in cases of national security ,if an appropriate ,federal banking agency suggests1 requests1 or orders a depository institution to terminate a specific customer account based on a belief that the customer poses a threat to national security1 neither the depository institution nor the appropriate ,federal banking agency may inform the customer of the justification for the customer's account termination4 7d7 ,reporting requirement ,each appropriate ,federal banking agency shall issue an annual report to the ,congress stating-- 7#a7 the aggregate number of specific customer accounts that the agency suggested1 requested1 or ordered a depository institution to terminate during the previous year2 and 7#b7 the legal authority under which the agency made such suggestions1 requests1 and orders4 7e7 ,definitions ,for purposes of this section3 7#a7 ,appropriate ,federal banking agency ,the term appropriate ,federal banking agency means-- 7,a7 the appropriate ,federal banking agency1 as defined under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7,b7 the ,national ,credit ,union ,administration1 in the case of an insured credit union4 7#b7 ,depository institution ,the term depository institution means-- 7,a7 a depository institution1 as defined under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7,b7 an insured credit union4 #c4 ,amendments to the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi ,section #iea of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #ahcc;a7 is amended-- 7#a7 in subsection 7c77#b71 by striking affecting and inserting by or against2 and 7#b7 in subsection 7g7-- 7,a7 in the header1 by striking subpoenas and inserting investigations2 and 7,b7 by amending paragraph 7#a77;,c7 to read as follows3 7,c7 summon witnesses and require the production of any books1 papers1 correspondence1 memoranda1 or other records which the ,attorney ,general deems relevant or material to the inquiry1 if the ,attorney ,general-- 7i7 requests a court order from a court of competent jurisdiction for such actions and offers specific and articulable facts showing that there are reasonable grounds to believe that the information or testimony sought is relevant and material for conducting an investigation under this section2 or 7ii7 either personally or through delegation no lower than the ,deputy ,attorney ,general1 issues and signs a subpoena for such actions and has reasonable grounds to believe that the information or testimony sought is relevant for conducting an investigation under this section4 4