,i #aaeth ,,congress #ast ,session ,h4 ,r4 #dcgc ,,in ,,the ,,house ,,of ,,representatives ,november #ac1 #bjag,mr4 ,royce of ,california 7for himself and ,mr4 ,gonzalez of ,texas7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to modernize and strengthen the ,united ,states anti-money laundering and counter-terrorism financing regime4 #a4 ,short title ,this ,act may be cited as the ,anti-,money ,laundering and ,counter-,terrorism ,financing ,modernization ,act or the ,,aml and ,,ctf ,modernization ,act4 #b4 ,modification of currency transaction reporting threshold 7a7 ,subpart ,c of section #ajaj 7#a7 ,initial adjustment ,not later than #a year after the date of enactment of this ,act1 the ,secretary of the ,treasury shall adjust the dollar amounts under subpart ,c of part #ajaj of title #ca1 ,code of ,federal ,regulations1 to an amount that is rounded to the nearest multiple of #a1jjj and-- 7,a7 is not less than #cj1jjj2 and 7,b7 is not more than the amount that reflects the change in the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics since the date on which such dollar amounts were last established or adjusted1 as applicable4 7#b7 ,periodic adjustments 7,a7 ,in general ,at the end of each #e-year period beginning on the date that the ,secretary makes the adjustment required under paragraph 7#a71 the ,secretary shall readjust such dollar amounts1 rounded to the nearest multiple of #a1jjj1 to reflect the change in the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics since the date on which such dollar amounts were last adjusted4 7,b7 ,alternative adjustment authority ,if1 at the time of an adjustment described under subparagraph 7,a71 the ,secretary1 after consultation with law enforcement agencies and the ,bank ,secrecy ,act ,advisory ,group1 determines that such adjustment would significantly frustrate the ability of law enforcement and financial institutions to detect and prevent money laundering and terrorism financing1 the ,secretary may make such adjustment using a metric other than the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics or choose to not make such adjustment4 7b7 ,reports on exporting and importing monetary instruments ,section #ecaf of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7e7 ,adjustment for inflation 7#a7 ,initial adjustment ,not later than #a year after the date of enactment of this subsection1 the ,secretary of the ,treasury shall adjust the dollar amounts under subsection 7a71 to an amount that is rounded to the nearest multiple of #a1jjj and-- 7,a7 is not less than #cj1jjj2 and 7,b7 is not more than the amount that reflects the change in the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics since the date on which such dollar amounts were last amended or adjusted1 as applicable4 7#b7 ,periodic adjustments 7,a7 ,in general ,at the end of each #e-year period beginning on the date that the ,secretary makes the adjustment required under paragraph 7#a71 the ,secretary shall readjust such dollar amounts1 rounded to the nearest multiple of #a1jjj1 to reflect the change in the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics since the date on which such dollar amounts were last adjusted4 7,b7 ,alternative adjustment authority ,if1 at the time of an adjustment described under subparagraph 7,a71 the ,secretary1 after consultation with law enforcement agencies and the ,bank ,secrecy ,act ,advisory ,group1 determines that such adjustment would significantly frustrate the ability of law enforcement and financial institutions to detect and prevent money laundering and terrorism financing1 the ,secretary may make such adjustment using a metric other than the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics or choose to not make such adjustment4 4 7c7 ,reports on coins and currency received in nonfinancial trade or business ,section #ecca of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7e7 ,adjustment for inflation 7#a7 ,initial adjustment ,not later than #a year after the date of enactment of this subsection1 the ,secretary of the ,treasury shall adjust the dollar amounts under this section1 to an amount that is rounded to the nearest multiple of #a1jjj and-- 7,a7 is not less than #cj1jjj2 and 7,b7 is not more than the amount that reflects the change in the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics since the date on which such dollar amounts were last amended or adjusted1 as applicable4 7#b7 ,periodic adjustments 7,a7 ,in general ,at the end of each #e-year period beginning on the date that the ,secretary makes the adjustment required under paragraph 7#a71 the ,secretary shall readjust such dollar amounts1 rounded to the nearest multiple of #a1jjj1 to reflect the change in the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics since the date on which such dollar amounts were last adjusted4 7,b7 ,alternative adjustment authority ,if1 at the time of an adjustment described under subparagraph 7,a71 the ,secretary1 after consultation with law enforcement agencies and the ,bank ,secrecy ,act ,advisory ,group1 determines that such adjustment would significantly frustrate the ability of law enforcement and financial institutions to detect and prevent money laundering and terrorism financing1 the ,secretary may make such adjustment using a metric other than the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics or choose to not make such adjustment4 4 #c4 ,modification of suspicious activity reporting threshold 7a7 ,in general ,each ,federal department or agency that issues regulations with respect to reports on suspicious transactions described under section #ecah7;g7 of title #ca1 ,united ,states ,code1 shall1 not later than #a year after the date of enactment of this ,act1 and every #e years thereafter1 adjust any dollar amount thresholds contained in such regulations to reflect the change in the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics since the date on which such dollar amounts were last established or adjusted1 as applicable4 7b7 ,alternative adjustment authority ,if1 at the time of an adjustment described under subsection 7a7 other than the adjustment made within the #a-year period following the date of the enactment of this ,act1 a ,federal department or agency1 after consultation with law enforcement agencies and the ,bank ,secrecy ,act ,advisory ,group1 determines that such adjustment would significantly frustrate the ability of law enforcement and financial institutions to detect and prevent money laundering and terrorism financing1 the ,federal department or agency may make such adjustment using a metric other than the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics or choose to not make such adjustment4 #d4 ,improved information sharing 7a7 ,disclosure to foreign branches or affiliates ,within #ahj days after the date of enactment of this ,act1 the ,secretary of the ,treasury shall1 by regulation1 clearly authorize domestic financial institutions to share suspicious activity reports with a foreign branch or affiliate of the domestic financial institutions1 if such branch or affiliate is located in a country that-- 7#a7 is a member of the ,financial ,action ,task ,force 7,,fatf7 or a ,,fatf-style regional body2 and 7#b7 has adequate privacy protections and data security measures in effect to prevent the unauthorized disclosure of such reports4 7b7 ,liability ,a domestic financial institution that transmits1 receives1 or shares suspicious activity reports with a foreign branch or affiliate of the domestic financial institution in accordance with the regulation promulgated pursuant to subsection 7a7 shall not be liable to any person under any law or regulation of the ,united ,states1 any constitution1 law1 or regulation of any ,state or political subdivision thereof1 or under any contract or other legally enforceable agreement 7including any arbitration agreement71 for sharing such reports1 except where such transmission1 receipt1 or sharing violates this section or regulations promulgated pursuant to this section4 7c7 ,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 7d7 ,cooperation ,among ,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 suspected of possible terrorist or money laundering activities and inserting for the purpose of identifying and1 as appropriate1 reporting possible terrorist or money laundering activities1 or a specified unlawful activity 7as defined under section #aief7;c77#g7 of title #ah1 ,united ,states ,code72 and 7,b7 by striking or money laundering activities shall and inserting 1 money laundering activities1 or a specified unlawful activity 7as defined under section #aief7;c77#g7 of title #ah1 ,united ,states ,code7 shall2 and 7#b7 in subsection 7c71 by striking engaged in or suspected of engaging in terrorist acts or money laundering activities and inserting for the purpose of identifying and1 as appropriate1 reporting possible terrorist acts or money laundering activities1 or a specified unlawful activity 7as defined under section #aief7;c77#g7 of title #ah1 ,united ,states ,code714 #e4 ,administrative rulings 7a7 ,in general ,subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 #eccc4 ,administrative rulings 7a7 ,establishment of procedures 7#a7 ,in general ,not later than #a year after the date of enactment of this section1 the ,secretary of the ,treasury1 acting through the ,financial ,crimes ,enforcement ,network1 shall establish a procedure in accordance with the requirements of this section to provide written rulings in response to inquiries concerning the conformance of specific conduct with the ,bank ,secrecy ,act4 7#b7 ,consultation with other agencies and the public ,in establishing the procedure under paragraph 7#a71 the ,secretary shall consult with other financial regulators and such other ,federal departments and agencies as the ,secretary determines appropriate1 and obtain the views of all interested persons through a public notice and comment period4 7b7 ,requests 7#a7 ,in general ,a person making a request for a ruling under this section-- 7,a7 shall make such request in writing2 7,b7 shall include in such request-- 7i7 a complete description of the situation for which the ruling is requested2 7ii7 a complete statement of all material facts related to the subject transaction2 7iii7 a concise and unambiguous question to be answered2 7iv7 a statement certifying1 to the best of the requestor's knowledge and belief1 that the question to be answered is not applicable to any ongoing state or ,federal investigation1 litigation1 grand jury proceeding1 or proceeding before any other governmental body involving either the requestor1 any other party to the subject transaction1 or any other party with whom the requestor has an agency relationship2 7v7 a statement identifying any information in the request that the requestor considers to be exempt from disclosure under section #eeb of title #e1 ,united ,states ,code 7commonly referred to as the ,freedom of ,information ,act71 and the reason therefor2 7vi7 if the subject situation is hypothetical1 a statement justifying why the particular situation described warrants the issuance of a ruling2 and 7vii7 the signature of-- 7,i7 the person making the request2 7,,ii7 if an agent makes the request1 the agent1 accompanied by a statement certifying the authority under which the request is made2 or 7,,iii7 if the request is being filed by a corporation or a partnership1 a corporate officer or a partner1 as applicable2 7,c7 may advocate a particular proposed interpretation and may set forth the legal and factual basis for that interpretation2 and 7,d7 shall advise immediately in writing of any subsequent change in any material fact or statement submitted with a request under this section4 7#b7 ,withdrawal of request ,a person may withdraw a request made under this section at any time before the ruling has been issued4 7#c7 ,nonconforming requests ,the ,secretary shall notify a requester if the request does not conform with the requirements of paragraph 7#a74 ,such notice shall be in writing and shall describe the requirements that have not been met4 ,a request that is not brought into conformity with such requirements within #cj days from the date of such notice1 unless extended for good cause by the ,secretary1 shall be treated as though it were withdrawn4 7c7 ,right to oral discussions 7#a7 ,in general ,a person who has made a request in conformity with subsection 7b77#a7 may request an opportunity for oral discussion of the issues presented in the request1 but-- 7,a7 personal conferences or telephone conferences may be scheduled only for the purpose of affording the requester an opportunity to discuss freely and openly the matters set forth in the request2 and 7,b7 the conferees will not be bound by any argument or position advocated or agreed to1 expressly or impliedly1 during the conference4 7#b7 ,at the discretion of the ,secretary ,the request should be made to the ,secretary1 and any decision to grant such a conference is wholly within the discretion of the ,secretary4 7#c7 ,treatment of new arguments or facts ,any new arguments or facts put forth by the requester at the meeting must be reduced to writing by the requester and submitted in conformity with subsection 7b77#a7 before they may be considered in connection with the request4 7d7 ,issuing rulings 7#a7 ,in general ,the ,secretary shall1 within #abj days of receiving the request for a ruling under this section1 issue a written ruling interpreting the relationship between the ,bank ,secrecy ,act and each situation for which such a ruling has been requested under this section4 7#b7 ,public disclosure ,a ruling rendered pursuant to this section shall be placed in the public record #ij days after the requesting party has received the ruling1 subject to any limitations on public disclosure arising from statutory restrictions1 regulations1 or the public interest4 ,the ,secretary shall redact any personal1 confidential1 or identifying information about the person or any other persons mentioned in the administrative ruling1 unless the person consents to such disclosure4 7#c7 ,precedential value of rulings ,a ruling issued under this section shall bind the ,secretary and shall have precedential value1 and hence may be relied upon by others similarly situated4 7#d7 ,availability of rulings ,the ,secretary shall make all such rulings available to any person upon written request specifically identifying the ruling sought4 7e7 ,modifying or rescinding rulings 7#a7 ,in general ,the ,secretary may modify or rescind any ruling made pursuant to this section-- 7,a7 when1 in light of changes in statute or regulations1 the ruling no longer sets forth the interpretation of the ,secretary with respect to the described situation2 7,b7 when any fact or statement submitted in the original request is found to be materially inaccurate or incomplete2 or 7,c7 for other good cause4 7#b7 ,request for modification or rescission ,any person may submit to the ,secretary a written request that a ruling be modified or rescinded4 ,such request-- 7,a7 should conform to the requirements of subsection 7b71 explain why rescission or modification is warranted1 and refer to any reasons in paragraph 7#a7 that are relevant2 and 7,b7 may advocate an alternative interpretation and may set forth the legal and factual basis for that interpretation4 7#c7 ,manner in which modifications or rescissions are made ,the ,secretary shall modify or rescind an existing ruling by issuing a new ruling that rescinds the relevant prior ruling4 7#d7 ,rescinded rulings lose precedential value ,once rescinded1 a ruling shall no longer have any precedential value4 7#e7 ,application to original parties ,a ruling may be modified or rescinded retroactively with respect to one or more parties to the original ruling request if the ,secretary determines that-- 7,a7 a fact or statement in the original request was materially inaccurate or incomplete2 7,b7 the requestor failed to notify in writing the ,secretary of a material change to any fact or statement in the original request2 or 7,c7 a party to the original request acted in bad faith when relying upon the ruling4 7f7 ,disclosure of information 7#a7 ,in general ,any part of any ruling1 including names1 addresses1 or information related to the business transactions of private parties1 may be disclosed pursuant to a request under section #eeb of title #e1 ,united ,states ,code 7commonly referred to as the ,freedom of ,information ,act74 7#b7 ,request for exemption ,if the request for a ruling contains information which the requestor wishes to be considered for exemption from disclosure under such section #eeb1 the requestor should clearly identify such portions of the request and the reasons why such information should be exempt from disclosure4 7#c7 ,notice to requestor ,a requestor claiming an exemption from disclosure shall be notified by the ,secretary1 at least #aj days before the ruling is issued1 of a decision not to exempt any of such information from disclosure so that the underlying request for a ruling can be withdrawn if the requestor so chooses4 7g7 ,inquiry fee 7#a7 ,in general ,the ,secretary may charge a fee for each inquiry made under this section in an amount sufficient1 in the aggregate1 to pay for the cost of carrying out this section and such amounts may be used1 without further appropriation1 to carry out this section4 ,such system shall provide a lower fee for small business concerns compared to the fee charged to other persons4 7#b7 ,notice and comment ,if the ,secretary decides to charge the fee described under paragraph 7#a7-- 7,a7 the ,secretary shall establish a system for charging such fee1 publish a description of such system in the ,federal ,register1 and solicit comments from the public for a period of #fj days after publication2 and 7,b7 publish a final description of the fee system and implement such fee system not later than #cj days after the end of such public comment period4 7h7 ,report to ,congress ,the ,secretary shall1 in a semi-annual report1 submit information regarding the number of requests for an administrative ruling received under this section1 the subject of each request1 the number of nonconforming requests treated as withdrawn pursuant to subsection 7b77#c71 and the time needed to respond to each request4 7i7 ,definitions ,for purposes of this section3 7#a7 ,bank ,secrecy ,act ,the term ,bank ,secrecy ,act means-- 7,a7 this subchapter2 7,b7 section #ba of the ,federal ,deposit ,insurance ,act2 7,c7 chapter #b of title ,i of ,public ,law #ia-ejh2 and 7,d7 section #cad of the ,,usa ,,patriot ,act4 7#b7 ,small business concern ,the term small business concern has the meaning given such term under section #c of the ,small ,business ,act4 4 7b7 ,clerical amendment ,the table of contents in chapter #ec of title #ca1 ,united ,states ,code1 is amended by inserting after the item relating to section #eccb the following3 #eccc4 ,administrative rulings4 4 #f4 ,qualitative ,feedback ,mechanism ,within #ahj days after the date of enactment of this ,act1 the ,secretary of the ,treasury shall1 after providing for public notice and comment1 establish a mechanism to-- 7#a7 communicate annual anti-money laundering and countering terrorism financing priorities to financial institutions1 other ,federal financial regulators1 and such other ,federal departments and agencies as the ,secretary determines appropriate2 and 7#b7 provide to financial institutions qualitative feedback on information shared by financial institutions with the ,department of ,treasury1 including currency transaction reports and suspicious activity reports4 #g4 ,report ,within #a year of the date of the enactment of this ,act1 the ,secretary of the ,treasury1 in consultation with the ,federal banking agencies 7as such term is defined under ,section #c of the ,federal ,deposit ,insurance ,act7 and other agencies1 as applicable1 shall submit a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate on-- 7#a7 the potential for artificial intelligence1 machine learning1 and other technologies to help detect and prevent money laundering and terrorist financing2 7#b7 the costs and benefits associated with the establishment1 by the ,federal ,government or by the ,federal ,government in partnership with the private sector1 of a centralized database to help financial institutions detect and prevent money laundering and terrorist financing1 including the impact of such a database on the security and privacy of financial information and the ability of technology or changes in law to ensure the security and privacy of such information2 7#c7 actions that can be taken1 administratively or through the enactment of legislation1 to streamline and improve reporting requirements under the ,united ,states anti-money laundering regime2 7#d7 how to further include law enforcement within the ,united ,states anti-money laundering regime and establish methods for law enforcement to provide feedback to institutions on the information they submit2 7#e7 the utility of a single filing threshold for suspicious activity reports as an alternative to varying thresholds1 as currently in effect2 and 7#f7 the mechanism described in section #f4 #h4 ,definitions ,for purposes of this ,act3 7#a7 ,currency transaction report ,the term currency transaction report means a report described under section #ecac1 #ecaf1 or #ecca of title #ca1 ,united ,states ,code4 7#b7 ,financial institution ,the term financial institution has the meaning given that term under section #ecab of title #ca1 ,united ,states ,code4 7#c7 ,suspicious activity report ,the term suspicious activity report means a report described under section #ecah7;g7 of title #ca1 ,united ,states ,code4