#aafth ,,congress #ast ,session ,h4 ,r4 #beac ,,an ,,act ,to ensure that persons who form corporations or limited liability companies in the ,united ,states disclose the beneficial owners of those corporations or limited liability companies1 in order to prevent wrongdoers from exploiting ,united ,states corporations and limited liability companies for criminal gain1 to assist law enforcement in detecting1 preventing1 and punishing terrorism1 money laundering1 and other misconduct involving ,united ,states corporations and limited liability companies1 and for other purposes4 ,a ,corporate ,transparency ,act of #bjai #a4 ,short title 7a7 ,in general ,this ,act may be cited as the ,corporate ,transparency ,act of #bjai4 7b7 ,references to this ,act ,in this division-- 7#a7 any reference to this ,act shall be deemed a reference to this division2 and 7#b7 except as otherwise expressly provided1 any reference to a section or other provision shall be deemed a reference to that section or other provision of this division4 #b4 ,findings ,congress finds the following3 7#a7 ,nearly #b1jjj1jjj corporations and limited liability companies are being formed under the laws of the ,states each year4 7#b7 ,very few ,states require information about the beneficial owners of the corporations and limited liability companies formed under their laws4 7#c7 ,a person forming a corporation or limited liability company within the ,united ,states typically provides less information at the time of incorporation than is needed to obtain a bank account or driver's license and typically does not name a single beneficial owner4 7#d7 ,criminals have exploited ,state formation procedures to conceal their identities when forming corporations or limited liability companies in the ,united ,states1 and have then used the newly created entities to commit crimes affecting interstate and international commerce such as terrorism1 proliferation financing1 drug and human trafficking1 money laundering1 tax evasion1 counterfeiting1 piracy1 securities fraud1 financial fraud1 and acts of foreign corruption4 7#e7 ,law enforcement efforts to investigate corporations and limited liability companies suspected of committing crimes have been impeded by the lack of available beneficial ownership information1 as documented in reports and testimony by officials from the ,department of ,justice1 the ,department of ,homeland ,security1 the ,department of the ,treasury1 and the ,government ,accountability ,office1 and others4 7#f7 ,in ,july #bjjf1 the leading international antimoney laundering standard-setting body1 the ,financial ,action ,task ,force on ,money ,laundering 7in this section referred to as the ,,fatf71 of which the ,united ,states is a member1 issued a report that criticizes the ,united ,states for failing to comply with a ,,fatf standard on the need to collect beneficial ownership information and urged the ,united ,states to correct this deficiency by ,july #bjjh4 ,in ,december #bjaf1 ,,fatf issued another evaluation of the ,united ,states1 which found that little progress has been made over the last ten years to address this problem4 ,it identified the lack of timely access to adequate1 accurate and current beneficial ownership information as a fundamental gap in ,united ,states efforts to combat money laundering and terrorist finance4 7#g7 ,in response to the #bjjf ,,fatf report1 the ,united ,states has urged the ,states to obtain beneficial ownership information for the corporations and limited liability companies formed under the laws of such ,states4 7#h7 ,in contrast to practices in the ,united ,states1 all #bh countries in the ,european ,union are required to have corporate registries that include beneficial ownership information4 7#i7 ,to reduce the vulnerability of the ,united ,states to wrongdoing by ,united ,states corporations and limited liability companies with hidden owners1 to protect interstate and international commerce from criminals misusing ,united ,states corporations and limited liability companies1 to strengthen law enforcement investigations of suspect corporations and limited liability companies1 to set a clear1 universal standard for ,state incorporation practices1 and to bring the ,united ,states into compliance with international anti-money laundering standards1 ,federal legislation is needed to require the collection of beneficial ownership information for the corporations and limited liability companies formed under the laws of such ,states4 #c4 ,transparent incorporation practices 7a7 ,in general 7#a7 ,amendment to the ,bank ,secrecy ,act ,chapter #ec of title #ca1 ,united ,states ,code1 is amended by inserting after section #eccb the following new section3 #eccc ,transparent incorporation practices 7a7 ,reporting requirements 7#a7 ,beneficial ownership reporting 7,a7 ,in general ,each applicant to form a corporation or limited liability company under the laws of a ,state or ,indian ,tribe shall file a report with ,fin,c,e,n containing a list of the beneficial owners of the corporation or limited liability company that-- 7i7 except as provided in paragraphs 7#c7 and 7#d71 and subject to paragraph 7#b71 identifies each beneficial owner by-- 7,i7 full legal name2 7,,ii7 date of birth2 7,,iii7 current residential or business street address2 and 7,,iv7 a unique identifying number from a non-expired passport issued by the ,united ,states1 a non-expired personal identification card1 or a non-expired driver's license issued by a ,state2 and 7ii7 if the applicant is not a beneficial owner1 also provides the identification information described in clause 7i7 relating to such applicant4 7,b7 ,updated information ,each corporation or limited liability company formed under the laws of a ,state or ,indian ,tribe shall-- 7i7 submit to ,fin,c,e,n an annual filing containing a list of-- 7,i7 the current beneficial owners of the corporation or limited liability company and the information described in subparagraph 7,a7 for each such beneficial owner2 and 7,,ii7 any changes in the beneficial owners of the corporation or limited liability company during the previous year2 and 7ii7 pursuant to any rule issued by the ,secretary of the ,treasury under subparagraph 7,c71 update the list of the beneficial owners of the corporation or limited liability company within the time period prescribed by such rule4 7,c7 ,rulemaking on updating information ,not later than #i months after the completion of the study required under section #d7;a77#a7 of the ,corporate ,transparency ,act of #bjai1 the ,secretary of the ,treasury shall consider the findings of such study and1 if the ,secretary determines it to be necessary or appropriate1 issue a rule requiring corporations and limited liability companies to update the list of the beneficial owners of the corporation or limited liability company within a specified amount of time after the date of any change in the list of beneficial owners or the information required to be provided relating to each beneficial owner4 7,d7 ,state notification ,each ,state in which a corporation or limited liability company is being formed shall notify each applicant of the requirements listed in subparagraphs 7,a7 and 7,b74 7#b7 ,certain beneficial owners ,if an applicant to form a corporation or limited liability company or a beneficial owner1 or similar agent of a corporation or limited liability company who is required to provide identification information under this subsection1 does not have a nonexpired passport issued by the ,united ,states1 a nonexpired personal identification card1 or a non-expired driver's license issued by a ,state1 each such person shall provide to ,fin,c,e,n the full legal name1 current residential or business street address1 a unique identifying number from a non-expired passport issued by a foreign government1 and a legible and credible copy of the pages of a non-expired passport issued by the government of a foreign country bearing a photograph1 date of birth1 and unique identifying information for each beneficial owner1 and each application described in paragraph 7#a77;,a7 and each update described in paragraph 7#a77;,b7 shall include a written certification by a person residing in the ,state or ,indian country under the jurisdiction of the ,indian ,tribe forming the entity that the applicant1 corporation1 or limited liability company-- 7,a7 has obtained for each such beneficial owner1 a current residential or business street address and a legible and credible copy of the pages of a non-expired passport issued by the government of a foreign country bearing a photograph1 date of birth1 and unique identifying information for the person2 7,b7 has verified the full legal name1 address1 and identity of each such person2 7,c7 will provide the information described in subparagraph 7,a7 and the proof of verification described in subparagraph 7,b7 upon request of ,fin,c,e,n2 and 7,d7 will retain the information and proof of verification under this paragraph until the end of the #e-year period beginning on the date that the corporation or limited liability company terminates under the laws of the ,state or ,indian ,tribe4 7#c7 ,exempt entities 7,a7 ,in general ,with respect to an applicant to form a corporation or limited liability company under the laws of a ,state or ,indian ,tribe1 if such entity is described in subparagraph 7,c7 or 7,d7 of subsection 7d77#d7 and will be exempt from the beneficial ownership disclosure requirements under this subsection1 such applicant1 or a prospective officer1 director1 or similar agent of the applicant1 shall file a written certification with ,fin,c,e,n-- 7i7 identifying the specific provision of subsection 7d77#d7 under which the entity proposed to be formed would be exempt from the beneficial ownership disclosure requirements under paragraphs 7#a7 and 7#b72 7ii7 stating that the entity proposed to be formed meets the requirements for an entity described under such provision of subsection 7d77#d72 and 7iii7 providing identification information for the applicant or prospective officer1 director1 or similar agent making the certification in the same manner as provided under paragraph 7#a7 or 7#b74 7,b7 ,existing corporations or limited liability companies ,on and after the date that is #b years after the final regulations are issued to carry out this section1 a corporation or limited liability company formed under the laws of the ,state or ,indian ,tribe before such date shall be subject to the requirements of this subsection unless an officer1 director1 or similar agent of the entity submits to ,fin,c,e,n a written certification-- 7i7 identifying the specific provision of subsection 7d77#d7 under which the entity is exempt from the requirements under paragraphs 7#a7 and 7#b72 7ii7 stating that the entity meets the requirements for an entity described under such provision of subsection 7d77#d72 and 7iii7 providing identification information for the officer1 director1 or similar agent making the certification in the same manner as provided under paragraph 7#a7 or 7#b74 7,c7 ,exempt entities having ownership interest ,if an entity described in subparagraph 7,c7 or 7,d7 of subsection 7d77#d7 has or will have an ownership interest in a corporation or limited liability company formed or to be formed under the laws of a ,state or ,indian ,tribe1 the applicant1 corporation1 or limited liability company in which the entity has or will have the ownership interest shall provide the information required under this subsection relating to the entity1 except that the entity shall not be required to provide information regarding any natural person who has an ownership interest in1 exercises substantial control over1 or receives substantial economic benefits from the entity4 7#d7 ,fin,c,e,n ,,id numbers 7,a7 ,issuance of ,fin,c,e,n ,,id number 7i7 ,in general ,fin,c,e,n shall issue a ,fin,c,e,n ,,id number to any individual who requests such a number and provides ,fin,c,e,n with the information described under subclauses 7,i7 through 7,,iv7 of paragraph 7#a77;,a77i74 7ii7 ,updating of information ,an individual with a ,fin,c,e,n ,,id number shall submit an annual filing with ,fin,c,e,n updating any information described under subclauses 7,i7 through 7,,iv7 of paragraph 7#a77;,a77i74 7,b7 ,use of ,fin,c,e,n ,,id number in reporting requirements ,any person required to report the information described under paragraph 7#a77;,a77i7 with respect to an individual may instead report the ,fin,c,e,n ,,id number of the individual4 7,c7 ,treatment of information submitted for ,fin,c,e,n ,,id number ,for purposes of this section1 any information submitted under subparagraph 7,a7 shall be deemed to be beneficial ownership information4 7#e7 ,retention and disclosure of beneficial ownership information by ,fin,c,e,n 7,a7 ,retention of information ,beneficial ownership information relating to each corporation or limited liability company formed under the laws of the ,state or ,indian ,tribe shall be maintained by ,fin,c,e,n until the end of the #e-year period 7or such other period of time as the ,secretary of the ,treasury may1 by rule1 determine7 beginning on the date that the corporation or limited liability company terminates4 7,b7 ,disclosure of information ,beneficial ownership information reported to ,fin,c,e,n pursuant to this section shall be provided by ,fin,c,e,n only upon receipt of-- 7i7 subject to subparagraph 7,c71 a request1 through appropriate protocols1 by a local1 ,tribal1 ,state1 or ,federal law enforcement agency2 7ii7 a request made by a ,federal agency on behalf of a law enforcement agency of another country under an international treaty1 agreement1 or convention1 or an order under section #ceab of title #ah or section #aghb of title #bh2 or 7iii7 a request made by a financial institution1 with customer consent1 as part of the institution's compliance with due diligence requirements imposed under the ,bank ,secrecy ,act1 the ,,usa ,,patriot ,act1 or other applicable ,federal1 ,state1 or ,tribal law4 7,c7 ,appropriate protocols 7i7 ,privacy ,the protocols described in subparagraph 7,b77i7 shall-- 7,i7 protect the privacy of any beneficial ownership information provided by ,fin,c,e,n to a local1 ,tribal1 ,state1 or ,federal law enforcement agency2 7,,ii7 ensure that a local1 ,tribal1 ,state1 or ,federal law enforcement agency requesting beneficial ownership information has an existing investigatory basis for requesting such information2 7,,iii7 ensure that access to beneficial ownership information is limited to authorized users at a local1 ,tribal1 ,state1 or ,federal law enforcement agency who have undergone appropriate training1 and refresher training no less than every two years1 and that the identity of such authorized users is verified through appropriate mechanisms1 such as two-factor authentication2 7,,iv7 include an audit trail of requests for beneficial ownership information by a local1 ,tribal1 ,state1 or ,federal law enforcement agency1 including1 as necessary1 information concerning queries made by authorized users at a local1 ,tribal1 ,state1 or ,federal law enforcement agency2 7,v7 require that every local1 ,tribal1 ,state1 or ,federal law enforcement agency that receives beneficial ownership information from ,fin,c,e,n conducts an annual audit to verify that the beneficial ownership information received from ,fin,c,e,n has been accessed and used appropriately1 and consistent with this paragraph2 and 7,,vi7 require ,fin,c,e,n to conduct an annual audit of every local1 ,tribal1 ,state1 or ,federal law enforcement agency that has received beneficial ownership information to ensure that such agency has requested beneficial ownership information1 and has used any beneficial ownership information received from ,fin,c,e,n1 appropriately1 and consistent with this paragraph4 7ii7 ,limitation on use ,beneficial ownership information provided to a local1 ,tribal1 ,state1 or ,federal law enforcement agency under this paragraph may only be used for law enforcement1 national security1 or intelligence purposes4 7,d7 ,access procedures ,fin,c,e,n shall establish stringent procedures for the protection and proper use of beneficial ownership information disclosed pursuant to subparagraph 7,b71 including procedures to ensure such information is not being inappropriately accessed or misused by law enforcement agencies4 7,e7 ,report to ,congress ,fin,c,e,n shall issue an annual report to ,congress stating-- 7i7 the number of times law enforcement agencies and financial institutions have accessed beneficial ownership information pursuant to subparagraph 7,b72 7ii7 the number of times beneficial ownership information reported to ,fin,c,e,n pursuant to this section was inappropriately accessed1 and by whom2 and 7iii7 the number of times beneficial ownership information was disclosed under subparagraph 7,b7 pursuant to a subpoena4 7,f7 ,disclosure of non-,,pii data ,notwithstanding subparagraph 7,b71 ,fin,c,e,n may issue guidance and otherwise make materials available to financial institutions and the public using beneficial ownership information reported pursuant to this section if such information is aggregated in a manner that removes all personally identifiable information4 ,for purposes of this subparagraph1 personally identifiable information includes information that would allow for the identification of a particular corporation or limited liability company4 7b7 ,no bearer share corporations or limited liability companies ,a corporation or limited liability company formed under the laws of a ,state or ,indian ,tribe may not issue a certificate in bearer form evidencing either a whole or fractional interest in the corporation or limited liability company4 7c7 ,penalties 7#a7 ,in general ,it shall be unlawful for any person to affect interstate or foreign commerce by-- 7,a7 knowingly providing1 or attempting to provide1 false or fraudulent beneficial ownership information1 including a false or fraudulent identifying photograph1 to ,fin,c,e,n in accordance with this section2 7,b7 willfully failing to provide complete or updated beneficial ownership information to ,fin,c,e,n in accordance with this section2 or 7,c7 knowingly disclosing the existence of a subpoena or other request for beneficial ownership information reported pursuant to this section1 except-- 7i7 to the extent necessary to fulfill the authorized request2 or 7ii7 as authorized by the entity that issued the subpoena1 or other request4 7#b7 ,civil and criminal penalties ,any person who violates paragraph 7#a7-- 7,a7 shall be liable to the ,united ,states for a civil penalty of not more than #aj1jjj2 and 7,b7 may be fined under title #ah1 ,united ,states ,code1 imprisoned for not more than #c years1 or both4 7#c7 ,limitation ,any person who negligently violates paragraph 7#a7 shall not be subject to civil or criminal penalties under paragraph 7#b74 7#d7 ,waiver ,the ,secretary of the ,treasury may waive the penalty for violating paragraph 7#a7 if the ,secretary determines that the violation was due to reasonable cause and was not due to willful neglect4 7#e7 ,criminal penalty for the misuse or unauthorized disclosure of beneficial ownership information ,the criminal penalties provided for under section #ecbb shall apply to a violation of this section to the same extent as such criminal penalties apply to a violation described in section #ecbb1 if the violation of this section consists of the misuse or unauthorized disclosure of beneficial ownership information4 7d7 ,definitions ,for the purposes of this section3 7#a7 ,applicant ,the term applicant means any natural person who files an application to form a corporation or limited liability company under the laws of a ,state or ,indian ,tribe4 7#b7 ,bank ,secrecy ,act ,the term ,bank ,secrecy ,act means-- 7,a7 section #ba of the ,federal ,deposit ,insurance ,act2 7,b7 chapter #b of title ,i of ,public ,law #ia-ejh2 and 7,c7 this subchapter4 7#c7 ,beneficial owner 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term beneficial owner means a natural person who1 directly or indirectly1 through any contract1 arrangement1 understanding1 relationship1 or otherwise-- 7i7 exercises substantial control over a corporation or limited liability company2 7ii7 owns #be percent or more of the equity interests of a corporation or limited liability company2 or 7iii7 receives substantial economic benefits from the assets of a corporation or limited liability company4 7,b7 ,exceptions ,the term beneficial owner shall not include-- 7i7 a minor child1 as defined in the ,state or ,indian ,tribe in which the entity is formed2 7ii7 a person acting as a nominee1 intermediary1 custodian1 or agent on behalf of another person2 7iii7 a person acting solely as an employee of a corporation or limited liability company and whose control over or economic benefits from the corporation or limited liability company derives solely from the employment status of the person2 7iv7 a person whose only interest in a corporation or limited liability company is through a right of inheritance2 or 7v7 a creditor of a corporation or limited liability company1 unless the creditor also meets the requirements of subparagraph 7,a74 7,c7 ,substantial economic benefits defined 7i7 ,in general ,for purposes of subparagraph 7,a77ii71 a natural person receives substantial economic benefits from the assets of a corporation or limited liability company if the person has an entitlement to more than a specified percentage of the funds or assets of the corporation or limited liability company1 which the ,secretary of the ,treasury shall1 by rule1 establish4 7ii7 ,rulemaking criteria ,in establishing the percentage under clause 7i71 the ,secretary of the ,treasury shall seek to-- 7,i7 provide clarity to corporations and limited liability companies with respect to the identification and disclosure of a natural person who receives substantial economic benefits from the assets of a corporation or limited liability company2 and 7,,ii7 identify those natural persons who1 as a result of the substantial economic benefits they receive from the assets of a corporation or limited liability company1 exercise a dominant influence over such corporation or limited liability company4 7#d7 ,corporation2 limited liability company ,the terms corporation and limited liability company-- 7,a7 have the meanings given such terms under the laws of the applicable ,state or ,indian ,tribe2 7,b7 include any non-,united ,states entity eligible for registration or registered to do business as a corporation or limited liability company under the laws of the applicable ,state or ,indian ,tribe2 7,c7 do not include any entity that is-- 7i7 a business concern that is an issuer of a class of securities registered under section #ab of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gha7 or that is required to file reports under section #ae7;d7 of that ,act 7#ae ,u4,s4,c4 #gho7d772 7ii7 a business concern constituted1 sponsored1 or chartered by a ,state or ,indian ,tribe1 a political subdivision of a ,state or ,indian ,tribe1 under an interstate compact between two or more ,states1 by a department or agency of the ,united ,states1 or under the laws of the ,united ,states2 7iii7 a depository institution 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac772 7iv7 a credit union 7as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb772 7v7 a bank holding company 7as defined in section #b of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda77 or a savings and loan holding company 7as defined in section #aj7;a7 of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7a772 7vi7 a broker or dealer 7as defined in section #c of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c77 that is registered under section #ae of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gho72 7vii7 an exchange or clearing agency 7as defined in section #c of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c77 that is registered under section #f or #ag;,a of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;f and #ghq-#a72 7viii7 an investment company 7as defined in section #c of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#c77 or an investment adviser 7as defined in section #bjb7aa7 of the ,investment ,advisers ,act of #aidj 7#ae ,u4,s4,c4 #hj;b-#b7aa7771 if the company or adviser is registered with the ,securities and ,exchange ,commission1 has filed an application for registration which has not been denied1 under the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#a et seq47 or the ,investment ,adviser ,act of #aidj 7#ae ,u4,s4,c4 #hj;b-#a et seq471 or is an investment adviser described under section #bjc7l7 of the ,investment ,advisers ,act of #aidj 7#ae ,u4,s4,c4 #hj;b-#c7l772 7ix7 an insurance company 7as defined in section #b of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#b772 7x7 a registered entity 7as defined in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a771 or a futures commission merchant1 introducing broker1 commodity pool operator1 or commodity trading advisor 7as defined in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a77 that is registered with the ,commodity ,futures ,trading ,commission2 7xi7 a public accounting firm registered in accordance with section #ajb of the ,sarbanes-,oxley ,act 7#ae ,u4,s4,c4 #gbab7 or an entity controlling1 controlled by1 or under common control of such a firm2 7xii7 a public utility that provides telecommunications service1 electrical power1 natural gas1 or water and sewer services1 within the ,united ,states2 7xiii7 a church1 charity1 nonprofit entity1 or other organization that is described in section #eja7;c71 #ebg1 or #didg7;a77#a7 of the ,internal ,revenue ,code of #aihf1 that has not been denied tax exempt status1 and that has filed the most recently due annual information return with the ,internal ,revenue ,service1 if required to file such a return2 7xiv7 a financial market utility designated by the ,financial ,stability ,oversight ,council under section #hjd of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act2 7xv7 an insurance producer 7as defined in section #ccd of the ,gramm-,leach-,bliley ,act72 7xvi7 any pooled investment vehicle that is operated or advised by a person described in clause 7iii71 7iv71 7v71 7vi71 7viii71 7ix71 or 7xi72 7xvii7 any business concern that-- 7,i7 employs more than #bj employees on a full-time basis in the ,united ,states2 7,,ii7 files income tax returns in the ,united ,states demonstrating more than #e1jjj1jjj in gross receipts or sales2 and 7,,iii7 has an operating presence at a physical office within the ,united ,states2 or 7xviii7 any corporation or limited liability company formed and owned by an entity described in this clause or in clause 7i71 7ii71 7iii71 7iv71 7v71 7vi71 7vii71 7viii71 7ix71 7x71 7xi71 7xii71 7xiii71 7xiv71 7xv71 or 7xvi72 and 7,d7 do not include any individual business concern or class of business concerns which the ,secretary of the ,treasury and the ,attorney ,general of the ,united ,states have jointly determined1 by rule of otherwise1 to be exempt from the requirements of subsection 7a71 if the ,secretary and the ,attorney ,general jointly determine that requiring beneficial ownership information from the business concern would not serve the public interest and would not assist law enforcement efforts to detect1 prevent1 or prosecute terrorism1 money laundering1 tax evasion1 or other misconduct4 7#e7 ,fincen ,the term ,fin,c,e,n means the ,financial ,crimes ,enforcement ,network of the ,department of the ,treasury4 7#f7 ,indian country ,the term ,indian country has the meaning given that term in section #aaea of title #ah4 7#g7 ,indian tribe ,the term ,indian ,tribe has the meaning given that term under section #ajb of the ,federally ,recognized ,indian ,tribe ,list ,act of #aiid4 7#h7 ,personal identification card ,the term personal identification card means an identification document issued by a ,state1 ,indian ,tribe1 or local government to an individual solely for the purpose of identification of that individual4 7#i7 ,state ,the term ,state means any ,state1 commonwealth1 territory1 or possession of the ,united ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 the ,commonwealth of the ,northern ,mariana ,islands1 ,american ,samoa1 ,guam1 or the ,united ,states ,virgin ,islands4 4 7#b7 ,rulemaking 7,a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,secretary of the ,treasury shall issue regulations to carry out this ,act and the amendments made by this ,act1 including1 to the extent necessary1 to clarify the definitions in section #eccc7;d7 of title #ca1 ,united ,states ,code4 7,b7 ,revision of final rule ,not later than #a year after the date of enactment of this ,act1 the ,secretary of the ,treasury shall revise the final rule titled ,customer ,due ,diligence ,requirements for ,financial ,institutions 7,may #aa1 #bjaf2 #ha ,fed4 ,reg4 #bicig7 to-- 7i7 bring the rule into conformance with this ,act and the amendments made by this ,act2 7ii7 account for financial institutions' access to comprehensive beneficial ownership information filed by corporations and limited liability companies1 under threat of civil and criminal penalties1 under this ,act and the amendments made by this ,act2 and 7iii7 reduce any burdens on financial institutions that are1 in light of the enactment of this ,act and the amendments made by this ,act1 unnecessary or duplicative4 7#c7 ,conforming amendments ,title #ca1 ,united ,states ,code1 is amended-- 7,a7 in section #ecba7;a7-- 7i7 in paragraph 7#a71 by striking sections #ecad and #ecae each place it appears and inserting sections #ecad1 #ecae1 and #eccc2 and 7ii7 in paragraph 7#f71 by inserting 7except section #eccc7 after subchapter each place it appears2 and 7,b7 in section #ecbb1 by striking section #ecae or #ecbd each place it appears and inserting section #ecae1 #ecbd1 or #eccc4 7#d7 ,table of contents ,the table of contents of chapter #ec of title #ca1 ,united ,states ,code1 is amended by inserting after the item relating to section #eccb the following3 #eccc4 ,transparent incorporation practices4 4 7b7 ,authorization of appropriations ,there is authorized to be appropriated #bj1jjj1jjj for each of fiscal years #bjbj and #bjba to the ,financial ,crimes ,enforcement ,network to carry out this ,act and the amendments made by this ,act4 7c7 ,federal contractors ,not later than the first day of the first full fiscal year beginning at least #a year after the date of the enactment of this ,act1 the ,administrator for ,federal ,procurement ,policy shall revise the ,federal ,acquisition ,regulation maintained under section #acjc7;a77#a7 of title #da1 ,united ,states ,code1 to require any contractor or subcontractor who is subject to the requirement to disclose beneficial ownership information under section #eccc of title #ca1 ,united ,states ,code1 to provide the information required to be disclosed under such section to the ,federal ,government as part of any bid or proposal for a contract with a value threshold in excess of the simplified acquisition threshold under section #acd of title #da1 ,united ,states ,code4 #d4 ,studies and reports 7a7 ,updating of beneficial ownership information 7#a7 ,study ,the ,secretary of the ,treasury1 in consultation with the ,attorney ,general of the ,united ,states1 shall conduct a study to evaluate-- 7,a7 the necessity of a requirement for corporations and limited liability companies to update the list of their beneficial owners within a specified amount of time after the date of any change in the list of beneficial owners or the information required to be provided relating to each beneficial owner1 taking into account the annual filings required under section #eccc7;a77#a77;,b77i7 of title #ca1 ,united ,states ,code1 and the information contained in such annual filings2 and 7,b7 the burden that a requirement to update the list of beneficial owners within a specified period of time after a change in such list of beneficial owners would impose on corporations and limited liability companies4 7#b7 ,report ,not later than #a year after the date of enactment of this ,act1 the ,secretary of the ,treasury shall submit a report on the study required under paragraph 7#a7 to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate4 7#c7 ,public comment ,the ,secretary of the ,treasury shall seek and consider public input1 comments1 and data in order to conduct the study required under subparagraph paragraph 7#a74 7b7 ,other legal entities ,not later than #b years after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall conduct a study and submit to the ,congress a report-- 7#a7 identifying each ,state or ,indian ,tribe that has procedures that enable persons to form or register under the laws of the ,state or ,indian ,tribe partnerships1 trusts1 or other legal entities1 and the nature of those procedures2 7#b7 identifying each ,state or ,indian ,tribe that requires persons seeking to form or register partnerships1 trusts1 or other legal entities under the laws of the ,state or ,indian ,tribe to provide information about the beneficial owners 7as that term is defined in section #eccc7;d77#a7 of title #ca1 ,united ,states ,code1 as added by this ,act7 or beneficiaries of such entities1 and the nature of the required information2 7#c7 evaluating whether the lack of available beneficial ownership information for partnerships1 trusts1 or other legal entities-- 7,a7 raises concerns about the involvement of such entities in terrorism1 money laundering1 tax evasion1 securities fraud1 or other misconduct2 7,b7 has impeded investigations into entities suspected of such misconduct2 and 7,c7 increases the costs to financial institutions of complying with due diligence requirements imposed under the ,bank ,secrecy ,act1 the ,,usa ,,patriot ,act1 or other applicable ,federal1 ,state1 or ,tribal law2 and 7#d7 evaluating whether the failure of the ,united ,states to require beneficial ownership information for partnerships and trusts formed or registered in the ,united ,states has elicited international criticism and what steps1 if any1 the ,united ,states has taken or is planning to take in response4 7c7 ,effectiveness of incorporation practices ,not later than #e years after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall conduct a study and submit to the ,congress a report assessing the effectiveness of incorporation practices implemented under this ,act and the amendments made by this ,act in-- 7#a7 providing law enforcement agencies with prompt access to reliable1 useful1 and complete beneficial ownership information2 and 7#b7 strengthening the capability of law enforcement agencies to combat incorporation abuses1 civil and criminal misconduct1 and detect1 prevent1 or punish terrorism1 money laundering1 tax evasion1 or other misconduct4 7d7 ,annual report on beneficial ownership information 7#a7 ,report ,the ,secretary of the ,treasury shall issue an annual report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate with respect to the beneficial ownership information collected pursuant to section #eccc of title #ca1 ,united ,states ,code1 that contains-- 7,a7 aggregate data on the number of beneficial owners per reporting corporation or limited liability company2 7,b7 the industries or type of business of each reporting corporation or limited liability company2 and 7,c7 the locations of the beneficial owners4 7#b7 ,privacy ,in issuing reports under paragraph 7#a71 the ,secretary shall not reveal the identities of beneficial owners or names of the reporting corporations or limited liability companies4 #e4 ,definitions ,in this ,act1 the terms ,bank ,secrecy ,act1 beneficial owner1 corporation1 and limited liability company have the meaning given those terms1 respectively1 under section #eccc7;d7 of title #ca1 ,united ,states ,code4 ,b ,,counter ,act of #bjai #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,coordinating ,oversight1 ,upgrading and ,innovating ,technology1 and ,examiner ,reform ,act of #bjai or the ,,counter ,act of #bjai4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,division ,b--,,counter ,act of #bjai ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,bank ,secrecy ,act definition4 ,title ,i--,strengthening ,treasury ,sec4 #aja4 ,improving the definition and purpose of the ,bank ,secrecy ,act4 ,sec4 #ajb4 ,special hiring authority4 ,sec4 #ajc4 ,civil ,liberties and ,privacy ,officer4 ,sec4 #ajd4 ,civil ,liberties and ,privacy ,council4 ,sec4 #aje4 ,international coordination4 ,sec4 #ajf4 ,treasury ,attachs ,program4 ,sec4 #ajg4 ,increasing technical assistance for international cooperation4 ,sec4 #ajh4 ,fin,c,e,n ,domestic ,liaisons4 ,sec4 #aji4 ,fin,c,e,n ,exchange4 ,sec4 #aaj4 ,study and strategy on trade-based money laundering4 ,sec4 #aaa4 ,study and strategy on de-risking4 ,sec4 #aab4 ,,aml examination authority delegation study4 ,sec4 #aac4 ,study and strategy on ,chinese money laundering4 ,title ,,ii--,improving ,,aml_/,,cft ,oversight ,sec4 #bja4 ,pilot program on sharing of suspicious activity reports within a financial group4 ,sec4 #bjb4 ,sharing of compliance resources4 ,sec4 #bjc4 ,,gao ,study on feedback loops4 ,sec4 #bjd4 ,fin,c,e,n study on ,,bsa value4 ,sec4 #bje4 ,sharing of threat pattern and trend information4 ,sec4 #bjf4 ,modernization and upgrading whistleblower protections4 ,sec4 #bjg4 ,certain violators barred from serving on boards of ,united ,states financial institutions4 ,sec4 #bjh4 ,additional damages for repeat ,bank ,secrecy ,act violators4 ,sec4 #bji4 ,justice annual report on deferred and non-prosecution agreements4 ,sec4 #baj4 ,return of profits and bonuses4 ,sec4 #baa4 ,application of ,bank ,secrecy ,act to dealers in antiquities4 ,sec4 #bab4 ,geographic targeting order4 ,sec4 #bac4 ,study and revisions to currency transaction reports and suspicious activity reports4 ,sec4 #bad4 ,streamlining requirements for currency transaction reports and suspicious activity reports4 ,title ,,iii--,modernizing the ,,aml ,system ,sec4 #cja4 ,encouraging innovation in ,,bsa compliance4 ,sec4 #cjb4 ,innovation ,labs4 ,sec4 #cjc4 ,innovation ,council4 ,sec4 #cjd4 ,testing methods rulemaking4 ,sec4 #cje4 ,fin,c,e,n study on use of emerging technologies4 ,sec4 #cjf4 ,discretionary surplus funds4 7c7 ,references to this ,act ,in this division-- 7#a7 any reference to this ,act shall be deemed a reference to this division2 and 7#b7 except as otherwise expressly provided1 any reference to a section or other provision shall be deemed a reference to that section or other provision of this division4 #b4 ,bank ,secrecy ,act definition ,section #ecab7;a7 of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7#g7 ,bank ,secrecy ,act ,the term ,bank ,secrecy act means-- 7,a7 section #ba of the ,federal ,deposit ,insurance ,act2 7,b7 chapter #b of title ,i of ,public ,law #ia-ejh2 and 7,c7 this subchapter4 4 ,i ,strengthening ,treasury #aja4 ,improving the definition and purpose of the ,bank ,secrecy ,act ,section #ecaa of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by inserting to protect our national security1 to safeguard the integrity of the international financial system1 and before to require2 and 7#b7 by inserting to law enforcement and before in criminal4 #ajb4 ,special hiring authority 7a7 ,in general ,section #caj of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by redesignating subsection 7d7 as subsection 7g72 and 7#b7 by inserting after subsection 7c7 the following3 7d7 ,special hiring authority 7#a7 ,in general ,the ,secretary of the ,treasury may appoint1 without regard to the provisions of sections #ccji through #ccah of title #e1 candidates directly to positions in the competitive service 7as defined in section #bajb of that title7 in ,fin,c,e,n4 7#b7 ,primary responsibilities ,the primary responsibility of candidates appointed pursuant to paragraph 7#a7 shall be to provide substantive support in support of the duties described in subparagraphs 7,a71 7,b71 7,e71 and 7,f7 of subsection 7b77#b74 4 7b7 ,report ,not later than #cfj days after the date of enactment of this ,act1 and every year thereafter for #g years1 the ,director of the ,financial ,crimes ,enforcement ,network 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 that includes-- 7#a7 the number of new employees hired since the preceding report through the authorities described under section #caj7;d7 of title #ca1 ,united ,states ,code1 along with position titles and associated pay grades for such hires2 and 7#b7 a copy of any ,federal ,government survey of staff perspectives at the ,office of ,terrorism and ,financial ,intelligence1 including findings regarding the ,office and the ,financial ,crimes ,enforcement ,network from the most recently administered ,federal ,employee ,viewpoint ,survey4 #ajc4 ,civil ,liberties and ,privacy ,officer 7a7 ,appointment of ,officers ,not later than the end of the #c-month period beginning on the date of enactment of this ,act1 a ,civil ,liberties and ,privacy ,officer shall be appointed1 from among individuals who are attorneys with expertise in data privacy laws-- 7#a7 within each ,federal functional regulator1 by the head of the ,federal functional regulator2 7#b7 within the ,financial ,crimes ,enforcement ,network1 by the ,secretary of the ,treasury2 and 7#c7 within the ,internal ,revenue ,service ,small ,business and ,self-,employed ,tax ,center1 by the ,secretary of the ,treasury4 7b7 ,duties ,each ,civil ,liberties and ,privacy ,officer shall1 with respect to the applicable regulator1 ,network1 or ,center within which the ,officer is located-- 7#a7 be consulted each time ,bank ,secrecy ,act or anti-money laundering regulations affecting civil liberties or privacy are developed or reviewed2 7#b7 be consulted on information-sharing programs1 including those that provide access to personally identifiable information2 7#c7 ensure coordination and clarity between anti-money laundering1 civil liberties1 and privacy regulations2 7#d7 contribute to the evaluation and regulation of new technologies that may strengthen data privacy and the protection of personally identifiable information collected by each ,federal functional regulator2 and 7#e7 develop metrics of program success4 7c7 ,definitions ,for purposes of this section3 7#a7 ,bank ,secrecy ,act ,the term ,bank ,secrecy ,act has the meaning given that term under section #ecab of title #ca1 ,united ,states ,code4 7#b7 ,federal functional regulator ,the term ,federal functional regulator means the ,board of ,governors of the ,federal ,reserve ,system1 the ,comptroller of the ,currency1 the ,federal ,deposit ,insurance ,corporation1 the ,national ,credit ,union ,administration1 the ,securities and ,exchange ,commission1 and the ,commodity ,futures ,trading ,commission4 #ajd4 ,civil ,liberties and ,privacy ,council 7a7 ,establishment ,there is established the ,civil ,liberties and ,privacy ,council 7hereinafter in this section referred to as the ,council71 which shall consist of the ,civil ,liberties and ,privacy ,officers appointed pursuant to section #ajc4 7b7 ,chair ,the ,director of the ,financial ,crimes ,enforcement ,network shall serve as the ,chair of the ,council4 7c7 ,duty ,the members of the ,council shall coordinate on activities related to their duties as ,civil ,liberties ,privacy ,officers1 but may not supplant the individual agency determinations on civil liberties and privacy4 7d7 ,meetings ,the meetings of the ,council-- 7#a7 shall be at the call of the ,chair1 but in no case may the ,council meet less than quarterly2 7#b7 may include open and partially closed sessions1 as determined necessary by the ,council2 and 7#c7 shall include participation by public and private entities and law enforcement agencies4 7e7 ,report ,the ,chair of the ,council shall issue an annual report to the ,congress on the program and policy activities1 including the success of programs as measured by metrics of program success developed pursuant to section #ajc7;b77#e71 of the ,council during the previous year and any legislative recommendations that the ,council may have4 7f7 ,nonapplicability of ,,faca ,the ,federal ,advisory ,committee ,act 7#e ,u4,s4,c4 ,app47 shall not apply to the ,council4 #aje4 ,international coordination 7a7 ,in general ,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 the ,egmont ,group of ,financial ,intelligence ,units1 the ,organisation for ,economic ,co-operation and ,development1 and the ,united ,nations1 to promote stronger anti-money laundering frameworks and enforcement of anti-money laundering laws4 7b7 ,cooperation goal ,in carrying out subsection 7a71 the ,secretary of the ,treasury may work directly with foreign counterparts and other organizations where the goal of cooperation can best be met4 7c7 ,international ,monetary ,fund 7#a7 ,support for capacity of the ,international ,monetary ,fund to prevent money laundering and financing of terrorism ,title ,,xvi of the ,international ,financial ,institutions ,act 7#bb ,u4,s4,c4 #bfbp et seq47 is amended by adding at the end the following3 #afbi4 ,support for capacity of the ,international ,monetary ,fund to prevent money laundering and financing of terrorism ,the ,secretary of the ,treasury shall instruct the ,united ,states ,executive ,director at the ,international ,monetary ,fund to support the increased use of the administrative budget of the ,fund for technical assistance that strengthens the capacity of ,fund members to prevent money laundering and the financing of terrorism4 4 7#b7 ,national ,advisory ,council report to ,congress ,the ,chairman of the ,national ,advisory ,council on ,international ,monetary and ,financial ,policies shall include in the report required by section #agja of the ,international ,financial ,institutions ,act 7#bb ,u4,s4,c4 #bfbr7 a description of-- 7,a7 the activities of the ,international ,monetary ,fund in the most recently completed fiscal year to provide technical assistance that strengthens the capacity of ,fund members to prevent money laundering and the financing of terrorism1 and the effectiveness of the assistance2 and 7,b7 the efficacy of efforts by the ,united ,states to support such technical assistance through the use of the ,fund's administrative budget1 and the level of such support4 7#c7 ,sunset ,effective on the date that is the end of the #d-year period beginning on the date of enactment of this ,act1 section #afbi of the ,international ,financial ,institutions ,act1 as added by paragraph 7#a71 is repealed4 #ajf4 ,treasury ,attachs ,program 7a7 ,in general ,title #ca1 ,united ,states ,code1 is amended by inserting after section #cae the following3 #caf4 ,treasury ,attachs ,program 7a7 ,in general ,there is established the ,treasury ,attachs ,program1 under which the ,secretary of the ,treasury shall appoint employees of the ,department of the ,treasury1 after nomination by the ,director of the ,financial ,crimes ,enforcement ,network 7,fin,c,e,n71 as a ,treasury attach1 who shall-- 7#a7 be knowledgeable about the ,bank ,secrecy ,act and anti-money laundering issues2 7#b7 be co-located in a ,united ,states embassy2 7#c7 perform outreach with respect to ,bank ,secrecy ,act and anti-money laundering issues2 7#d7 establish and maintain relationships with foreign counterparts1 including employees of ministries of finance1 central banks1 and other relevant official entities2 7#e7 conduct outreach to local and foreign financial institutions and other commercial actors1 including-- 7,a7 information exchanges through ,fin,c,e,n and ,fin,c,e,n programs2 and 7,b7 soliciting buy-in and cooperation for the implementation of-- 7i7 ,united ,states and multilateral sanctions2 and 7ii7 international standards on anti-money laundering and the countering of the financing of terrorism2 and 7#f7 perform such other actions as the ,secretary determines appropriate4 7b7 ,number of attachs ,the number of ,treasury attachs appointed under this section at any one time shall be not fewer than #f more employees than the number of employees of the ,department of the ,treasury serving as ,treasury attachs on ,march #a1 #bjai4 7c7 ,compensation ,each ,treasury attach appointed under this section and located at a ,united ,states embassy shall receive compensation at the higher of-- 7#a7 the rate of compensation provided to a ,foreign ,service officer at a comparable career level serving at the same embassy2 or 7#b7 the rate of compensation the ,treasury attach would otherwise have received1 absent the application of this subsection4 7d7 ,bank ,secrecy ,act defined ,in this section1 the term ,bank ,secrecy ,act has the meaning given that term under section #ecab4 4 7b7 ,clerical amendment ,the table of contents for chapter #c of title #ca1 ,united ,states ,code1 is amended by inserting after the item relating to section #cae the following3 #caf4 ,treasury ,attachs ,program4 4 #ajg4 ,increasing technical assistance for international cooperation 7a7 ,in general ,there is authorized to be appropriated for each of fiscal years #bjbj through #bjbd to the ,secretary of the ,treasury for purposes of providing technical assistance that promotes compliance with international standards and best practices1 including in particular those aimed at the establishment of effective anti-money laundering and countering the financing of terrorism regimes1 in an amount equal to twice the amount authorized for such purpose for fiscal year #bjai4 7b7 ,activity and evaluation report ,not later than #cfj days after enactment of this ,act1 and every year thereafter for five years1 the ,secretary of the ,treasury shall issue a report to the ,congress on the assistance 7as described under subsection 7a77 of the ,office of ,technical ,assistance of the ,department of the ,treasury containing-- 7#a7 a narrative detailing the strategic goals of the ,office in the previous year1 with an explanation of how technical assistance provided in the previous year advances the goals2 7#b7 a description of technical assistance provided by the ,office in the previous year1 including the objectives and delivery methods of the assistance2 7#c7 a list of beneficiaries and providers 7other than ,office staff7 of the technical assistance2 7#d7 a description of how technical assistance provided by the ,office complements1 duplicates1 or otherwise affects or is affected by technical assistance provided by the international financial institutions 7as defined under section #agja7;c7 of the ,international ,financial ,institutions ,act72 and 7#e7 a copy of any ,federal ,government survey of staff perspectives at the ,office of ,technical ,assistance1 including any findings regarding the ,office from the most recently administered ,federal ,employee ,viewpoint ,survey4 #ajh4 ,fin,c,e,n ,domestic ,liaisons ,section #caj of title #ca1 ,united ,states ,code1 as amended by section #ajb1 is further amended by inserting after subsection 7d7 the following3 7e7 ,fin,c,e,n ,domestic ,liaisons 7#a7 ,in general ,the ,director of ,fin,c,e,n shall appoint at least #f senior ,fin,c,e,n employees as ,fin,c,e,n ,domestic ,liaisons1 who shall-- 7,a7 each be assigned to focus on a specific region of the ,united ,states2 7,b7 be located at an office in such region 7or co-located at an office of the ,board of ,governors of the ,federal ,reserve ,system in such region72 and 7,c7 perform outreach to ,,bsa officers at financial institutions 7including non-bank financial institutions7 and persons who are not financial institutions1 especially with respect to actions taken by ,fin,c,e,n that require specific actions by1 or have specific effects on1 such institutions or persons1 as determined by the ,director4 7#b7 ,definitions ,in this subsection3 7,a7 ,,bsa officer ,the term ,,bsa officer means an employee of a financial institution whose primary job responsibility involves compliance with the ,bank ,secrecy ,act1 as such term is defined under section #ecab4 7,b7 ,financial institution ,the term financial institution has the meaning given that term under section #ecab4 4 #aji4 ,fin,c,e,n ,exchange ,section #caj of title #ca1 ,united ,states ,code1 as amended by section #ajh1 is further amended by inserting after subsection 7e7 the following3 7f7 ,fin,c,e,n ,exchange 7#a7 ,establishment ,the ,fin,c,e,n ,exchange is hereby established within ,fin,c,e,n1 which shall consist of the ,fin,c,e,n ,exchange program of ,fin,c,e,n in existence on the day before the date of enactment of this paragraph4 7#b7 ,purpose ,the ,fin,c,e,n ,exchange shall facilitate a voluntary public-private information sharing partnership among law enforcement1 financial institutions1 and ,fin,c,e,n to-- 7,a7 effectively and efficiently combat money laundering1 terrorism financing1 organized crime1 and other financial crimes2 7,b7 protect the financial system from illicit use2 and 7,c7 promote national security4 7#c7 ,report 7,a7 ,in general ,not later than one year after the date of enactment of this subsection1 and annually thereafter for the next five years1 the ,secretary of the ,treasury shall submit to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate a report containing-- 7i7 an analysis of the efforts undertaken by the ,fin,c,e,n ,exchange and the results of such efforts2 7ii7 an analysis of the extent and effectiveness of the ,fin,c,e,n ,exchange1 including any benefits realized by law enforcement from partnership with financial institutions2 and 7iii7 any legislative1 administrative1 or other recommendations the ,secretary may have to strengthen ,fin,c,e,n ,exchange efforts4 7,b7 ,classified annex ,each report under subparagraph 7,a7 may include a classified annex4 7#d7 ,information sharing requirement ,information shared pursuant to this subsection shall be shared in compliance with all other applicable ,federal laws and regulations4 7#e7 ,rule of construction ,nothing under this subsection may be construed to create new information sharing authorities related to the ,bank ,secrecy ,act 7as such term is defined under section #ecab of title #ca1 ,united ,states ,code74 7#f7 ,financial institution defined ,in this subsection1 the term financial institution has the meaning given that term under section #ecab4 4 #aaj4 ,study and strategy on trade-based money laundering 7a7 ,study ,the ,secretary of the ,treasury shall carry out a study1 in consultation with appropriate private sector stakeholders and ,federal departments and agencies1 on trade-based money laundering4 7b7 ,report ,not later than the end of the #a-year period beginning on the date of the enactment of this ,act1 the ,secretary shall issue a report to the ,congress containing-- 7#a7 all findings and determinations made in carrying out the study required under subsection 7a72 and 7#b7 proposed strategies to combat trade-based money laundering4 7c7 ,classified annex ,the report required under this section may include a classified annex4 7d7 ,contracting authority ,the ,secretary may contract with a private third-party to carry out the study required under this section4 ,the authority of the ,secretary to enter into contracts under this subsection shall be in effect for each fiscal year only to the extent and in the amounts as are provided in advance in appropriations ,acts4 #aaa4 ,study and strategy on de-risking 7a7 ,review ,the ,secretary of the ,treasury1 in consultation with appropriate private sector stakeholders1 examiners1 and the ,federal functional regulators 7as defined under section #ajc7 and other relevant stakeholders1 shall undertake a formal review of-- 7#a7 any adverse consequences of financial institutions de-risking entire categories of relationships1 including charities1 embassy accounts1 money services businesses 7as defined under section #ajaj4ajj7;ff7 of title #ca1 ,code of ,federal ,regulations7 and their agents1 countries1 international and domestic regions1 and respondent banks2 7#b7 the reasons why financial institutions are engaging in de-risking2 7#c7 the association with and effects of de-risking on money laundering and financial crime actors and activities2 7#d7 the most appropriate ways to promote financial inclusion1 particularly with respect to developing countries1 while maintaining compliance with the ,bank ,secrecy ,act1 including an assessment of policy options to-- 7,a7 more effectively tailor ,federal actions and penalties to the size of foreign financial institutions and any capacity limitations of foreign governments2 and 7,b7 reduce compliance costs that may lead to the adverse consequences described in paragraph 7#a72 7#e7 formal and informal feedback provided by examiners that may have led to de-risking2 7#f7 the relationship between resources dedicated to compliance and overall sophistication of compliance efforts at entities that may be experiencing de-risking versus those that have not experienced de-risking2 and 7#g7 any best practices from the private sector that facilitate correspondent bank relationships4 7b7 ,de-risking strategy ,the ,secretary shall develop a strategy to reduce de-risking and adverse consequences related to de-risking4 7c7 ,report ,not later than the end of the #a-year period beginning on the date of the enactment of this ,act1 the ,secretary1 in consultation with the ,federal functional regulators and other relevant stakeholders1 shall issue a report to the ,congress containing-- 7#a7 all findings and determinations made in carrying out the study required under subsection 7a72 and 7#b7 the strategy developed pursuant to subsection 7b74 7d7 ,definitions ,in this section3 7#a7 ,de-risking ,the term de-risking means the wholesale closing of accounts or limiting of financial services for a category of customer due to unsubstantiated risk as it relates to compliance with the ,bank ,secrecy ,act4 7#b7 ,,bsa terms ,the terms ,bank ,secrecy ,act and financial institution have the meaning given those terms1 respectively1 under section #ecab off title #ca1 ,united ,states ,code4 #aab4 ,,aml examination authority delegation study 7a7 ,study ,the ,secretary of the ,treasury shall carry out a study on the ,secretary's delegation of examination authority under the ,bank ,secrecy ,act1 including-- 7#a7 an evaluation of the efficacy of the delegation1 especially with respect to the mission of the ,bank ,secrecy ,act2 7#b7 whether the delegated agencies have appropriate resources to perform their delegated responsibilities2 and 7#c7 whether the examiners in delegated agencies have sufficient training and support to perform their responsibilities4 7b7 ,report ,not later than one year after the date of enactment of this ,act1 the ,secretary of the ,treasury shall submit to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate a report containing-- 7#a7 all findings and determinations made in carrying out the study required under subsection 7a72 and 7#b7 recommendations to improve the efficacy of delegation authority1 including the potential for de-delegation of any or all such authority where it may be appropriate4 7c7 ,bank ,secrecy ,act defined ,the term ,bank ,secrecy ,act has the meaning given that term under section #ecab off title #ca1 ,united ,states ,code4 #aac4 ,study and strategy on ,chinese money laundering 7a7 ,study ,the ,secretary of the ,treasury shall carry out a study on the extent and effect of ,chinese money laundering activities in the ,united ,states1 including territories and possessions of the ,united ,states1 and worldwide4 7b7 ,strategy to combat ,chinese money laundering ,upon the completion of the study required under subsection 7a71 the ,secretary shall1 in consultation with such other ,federal departments and agencies as the ,secretary determines appropriate1 develop a strategy to combat ,chinese money laundering activities4 7c7 ,report ,not later than the end of the #a-year period beginning on the date of enactment of this ,act1 the ,secretary of the ,treasury shall issue a report to ,congress containing-- 7#a7 all findings and determinations made in carrying out the study required under subsection 7a72 and 7#b7 the strategy developed under subsection 7b74 ,,ii ,improving ,,aml_/,,cft ,oversight #bja4 ,pilot program on sharing of suspicious activity reports within a financial group 7a7 ,in general 7#a7 ,sharing with foreign branches and affiliates ,section #ecah7;g7 of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7#e7 ,pilot program on sharing with foreign branches1 subsidiaries1 and affiliates 7,a7 ,in general ,the ,secretary of the ,treasury shall issue rules establishing the pilot program described under subparagraph 7,b71 subject to such controls and restrictions as the ,director of the ,financial ,crimes ,enforcement ,network determines appropriate1 including controls and restrictions regarding participation by financial institutions and jurisdictions in the pilot program4 ,in prescribing such rules1 the ,secretary shall ensure that the sharing of information described under such subparagraph 7,b7 is subject to appropriate standards and requirements regarding data security and the confidentiality of personally identifiable information4 7,b7 ,pilot program described ,the pilot program required under this paragraph shall-- 7i7 permit a financial institution with a reporting obligation under this subsection to share reports 7and information on such reports7 under this subsection with the institution's foreign branches1 subsidiaries1 and affiliates for the purpose of combating illicit finance risks1 notwithstanding any other provision of law except subparagraphs 7,a7 and 7,c72 7ii7 terminate on the date that is five years after the date of enactment of this paragraph1 except that the ,secretary may extend the pilot program for up to two years upon submitting 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 that includes-- 7,i7 a certification that the extension is in the national interest of the ,united ,states1 with a detailed explanation of the reasons therefor2 7,,ii7 an evaluation of the usefulness of the pilot program1 including a detailed analysis of any illicit activity identified or prevented as a result of the program2 and 7,,iii7 a detailed legislative proposal providing for a long-term extension of the pilot program activities1 including expected budgetary resources for the activities1 if the ,secretary determines that a long-term extension is appropriate4 7,c7 ,prohibition involving certain jurisdictions ,in issuing the regulations required under subparagraph 7,a71 the ,secretary may not permit a financial institution to share information on reports under this subsection with a foreign branch1 subsidiary1 or affiliate located in-- 7i7 the ,people's ,republic of ,china2 7ii7 the ,russian ,federation2 or 7iii7 a jurisdiction that-- 7,i7 is subject to countermeasures imposed by the ,federal ,government2 7,,ii7 is a state sponsor of terrorism2 or 7,,iii7 the ,secretary has determined cannot reasonably protect the privacy and confidentiality of such information or would otherwise use such information in a manner that is not consistent with the national interest of the ,united ,states4 7,d7 ,implementation updates ,not later than #cfj days after the date rules are issued under subparagraph 7,a71 and annually thereafter for three years1 the ,secretary1 or the ,secretary's designee1 shall brief the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate on-- 7i7 the degree of any information sharing permitted under the pilot program1 and a description of criteria used by the ,secretary to evaluate the appropriateness of the information sharing2 7ii7 the effectiveness of the pilot program in identifying or preventing the violation of a ,united ,states law or regulation1 and mechanisms that may improve such effectiveness2 and 7iii7 any recommendations to amend the design of the pilot program4 7,e7 ,rule of construction ,nothing in this paragraph shall be construed as limiting the ,secretary's authority under provisions of law other than this paragraph to establish other permissible purposes or methods for a financial institution sharing reports 7and information on such reports7 under this subsection with the institution's foreign headquarters or with other branches of the same institution4 7,f7 ,notice of use of other authority ,if the ,secretary1 pursuant to any authority other than that provided under this paragraph1 permits a financial institution to share information on reports under this subsection with a foreign branch1 subsidiary1 or affiliate located in a foreign jurisdiction1 the ,secretary shall notify the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of such permission and the applicable foreign jurisdiction4 7#f7 ,treatment of foreign jurisdiction-originated reports ,a report received by a financial institution from a foreign affiliate with respect to a suspicious transaction relevant to a possible violation of law or regulation shall be subject to the same confidentiality requirements provided under this subsection for a report of a suspicious transaction described under paragraph 7#a74 4 7#b7 ,notification prohibitions ,section #ecah7;g77#b77;,a7 of title #ca1 ,united ,states ,code1 is amended-- 7,a7 in clause 7i71 by inserting after transaction has been reported the following3 or otherwise reveal any information that would reveal that the transaction has been reported2 and 7,b7 in clause 7ii71 by inserting after transaction has been reported1 the following3 or otherwise reveal any information that would reveal that the transaction has been reported14 7b7 ,rulemaking ,not later than the end of the #cfj-;day period beginning on the date of enactment of this ,act1 the ,secretary of the ,treasury shall issue regulations to carry out the amendments made by this section4 #bjb4 ,sharing of compliance resources 7a7 ,in general ,section #ecah of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7o7 ,sharing of compliance resources 7#a7 ,sharing permitted ,two or more financial institutions may enter into collaborative arrangements in order to more efficiently comply with the requirements of this subchapter4 7#b7 ,outreach ,the ,secretary of the ,treasury and the appropriate supervising agencies shall carry out an outreach program to provide financial institutions with information1 including best practices1 with respect to the sharing of resources described under paragraph 7#a74 4 7b7 ,rule of construction ,the amendment made by subsection 7a7 may not be construed to require financial institutions to share resources4 #bjc4 ,,gao ,study on feedback loops 7a7 ,study ,the ,comptroller ,general of the ,united ,states shall carry out a study on-- 7#a7 best practices within the ,united ,states ,government for providing feedback 7feedback loop7 to relevant parties 7including regulated private entities7 on the usage and usefulness of personally identifiable information 7,,pii71 sensitive-but-unclassified 7,,sbu7 data1 or similar information provided by such parties to ,government users of such information and data 7including law enforcement or regulators72 and 7#b7 any practices or standards inside or outside the ,united ,states for providing feedback through sensitive information and public-private partnership information sharing efforts1 specifically related to efforts to combat money laundering and other forms of illicit finance4 7b7 ,report ,not later than the end of the #ah-month period beginning on the date of the enactment of this ,act1 the ,comptroller ,general shall issue a report to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives containing-- 7#a7 all findings and determinations made in carrying out the study required under subsection 7a72 7#b7 with respect to each of paragraphs 7#a7 and 7#b7 of subsection 7a71 any best practices or significant concerns identified by the ,comptroller ,general1 and their applicability to public-private partnerships and feedback loops with respect to ,u4,s4 efforts to combat money laundering and other forms of illicit finance2 and 7#c7 recommendations to reduce or eliminate any unnecessary ,government collection of the information described under subsection 7a77#a74 #bjd4 ,fin,c,e,n study on ,,bsa value 7a7 ,study ,the ,director of the ,financial ,crimes ,enforcement ,network shall carry out a study on ,bank ,secrecy ,act value4 7b7 ,report ,not later than the end of the #cj-;day period beginning on the date the study under subsection 7a7 is completed1 the ,director shall issue 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 containing all findings and determinations made in carrying out the study required under this section4 7c7 ,classified annex ,the report required under this section may include a classified annex1 if the ,director determines it appropriate4 7d7 ,bank ,secrecy ,act defined ,for purposes of this section1 the term ,bank ,secrecy ,act has the meaning given that term under section #ecab of title #ca1 ,united ,states ,code4 #bje4 ,sharing of threat pattern and trend information ,section #ecah7;g7 of title #ca1 ,united ,states ,code1 as amended by section #bja7;a77#a71 is further amended by adding at the end the following3 7#g7 ,sharing of threat pattern and trend information 7,a7 ,,sar ,activity ,review ,the ,director of the ,financial ,crimes ,enforcement ,network shall restart publication of the ,,sar ,activity ,review - ,trends1 ,tips ,issues1 on not less than a semi-annual basis1 to provide meaningful information about the preparation1 use1 and value of reports filed under this subsection by financial institutions1 as well as other reports filed by financial institutions under the ,bank ,secrecy ,act4 7,b7 ,inclusion of typologies ,in each publication described under subparagraph 7,a71 the ,director shall provide financial institutions with typologies1 including data that can be adapted in algorithms 7including for artificial intelligence and machine learning programs7 where appropriate1 on emerging money laundering and counter terror financing threat patterns and trends4 7,c7 ,typology defined ,for purposes of this paragraph1 the term typology means the various techniques used to launder money or finance terrorism4 4 #bjf4 ,modernization and upgrading whistleblower protections 7a7 ,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 a reward under this section1 the ,secretary may1 subject to amounts made available in advance by appropriation ,acts1 use criminal fine1 civil penalty1 or forfeiture amounts recovered based on the original information with respect to which the reward is being paid4 4 7b7 ,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 ,in this section3 7#a7 ,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#b7 ,fin,c,e,n ,the term ,fin,c,e,n means the ,financial ,crimes ,enforcement ,network4 7#c7 ,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#d7 ,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#e7 ,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#f7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 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 the ,secretary1 under such rules as the ,secretary may issue 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 not more than #cj percent1 in total1 of what has been collected of the monetary sanctions imposed in the action4 7#b7 ,source of awards ,for the purposes of paying any award under paragraph 7#a71 the ,secretary may1 subject to amounts made available in advance by appropriation ,acts1 use monetary sanction amounts recovered based on the original information with respect to which the award is being paid4 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 the ,secretary4 7,b7 ,criteria ,in responding to a disclosure and determining the amount of an award made1 ,fin,c,e,n staff shall meet with the whistleblower to discuss evidence disclosed and rebuttals to the disclosure1 and shall take into consideration-- 7i7 the significance of the information provided by the whistleblower to the success of the covered judicial or administrative action2 7ii7 the degree of assistance provided by the whistleblower and any legal representative of the whistleblower in a covered judicial or administrative action2 7iii7 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 7iv7 such additional relevant factors as the ,secretary may establish by rule4 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 violation1 or who the ,secretary has a reasonable basis to believe committed a criminal violation1 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 the ,secretary may1 by rule1 require4 7#c7 ,statement of reasons ,for any decision granting or denying an award1 the ,secretary shall provide to the whistleblower a statement of reasons that includes findings of fact and conclusions of law for all material issues4 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 the ,secretary 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 the ,secretary4 ,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 the ,secretary4 ,the court shall review the determination made by the ,secretary in accordance with section #gjf of title #e4 7f7 ,employee protections ,the ,secretary of the ,treasury shall issue regulations protecting a whistleblower from retaliation1 which shall be as close as practicable to the employee protections provided for under section #ajeg of the ,consumer ,financial ,protection ,act of #bjaj4 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 incentives4 4 #bjg4 ,certain violators barred from serving on boards of ,united ,states financial institutions ,section #ecba of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7f7 ,certain violators barred from serving on boards of ,united ,states financial institutions 7#a7 ,in general ,an individual found to have committed an egregious violation of a provision of 7or rule issued under7 the ,bank ,secrecy ,act shall be barred from serving on the board of directors of a ,united ,states financial institution for a #aj-year period beginning on the date of such finding4 7#b7 ,egregious violation defined ,with respect to an individual1 the term egregious violation means-- 7,a7 a felony criminal violation for which the individual was convicted2 and 7,b7 a civil violation where the individual willfully committed such violation and the violation facilitated money laundering or the financing of terrorism4 4 #bjh4 ,additional damages for repeat ,bank ,secrecy ,act violators 7a7 ,in general ,section #ecba of title #ca1 ,united ,states ,code1 as amended by section #bjh1 is further amended by adding at the end the following3 7g7 ,additional damages for repeat violators ,in addition to any other fines permitted by this section and section #ecbb1 with respect to a person who has previously been convicted of a criminal provision of 7or rule issued under7 the ,bank ,secrecy ,act or who has admitted1 as part of a deferred- or non-prosecution agreement1 to having previously committed a violation of a criminal provision of 7or rule issued under7 the ,bank ,secrecy ,act1 the ,secretary may impose an additional civil penalty against such person for each additional such violation in an amount equal to up three times the profit gained or loss avoided by such person as a result of the violation4 4 7b7 ,prospective application of amendment ,for purposes of determining whether a person has committed a previous violation under section #ecba7;g7 of title #ca1 ,united ,states ,code1 such determination shall only include violations occurring after the date of enactment of this ,act4 #bji4 ,justice annual report on deferred and non-prosecution agreements 7a7 ,annual report ,the ,attorney ,general shall issue an annual report1 every year for the five years beginning on the date of enactment of this ,act1 to the ,committees on ,financial ,services and the ,judiciary of the ,house of ,representatives and the ,committees on ,banking1 ,housing1 and ,urban ,affairs and the ,judiciary of the ,senate containing-- 7#a7 a list of deferred prosecution agreements and non-prosecution agreements that the ,attorney ,general has entered into during the previous year with any person with respect to a violation or suspected violation of the ,bank ,secrecy ,act2 7#b7 the justification for entering into each such agreement2 7#c7 the list of factors that were taken into account in determining that the ,attorney ,general should enter into each such agreement2 and 7#d7 the extent of coordination the ,attorney ,general conducted with the ,financial ,crimes ,enforcement ,network prior to entering into each such agreement4 7b7 ,classified annex ,each report under subsection 7a7 may include a classified annex4 7c7 ,bank ,secrecy ,act defined ,for purposes of this section1 the term ,bank ,secrecy ,act has the meaning given that term under section #ecab of title #ca1 ,united ,states ,code4 #baj4 ,return of profits and bonuses 7a7 ,in general ,section #ecbb of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7e7 ,return of profits and bonuses ,a person convicted of violating a provision of 7or rule issued under7 the ,bank ,secrecy ,act shall-- 7#a7 in addition to any other fine under this section1 be fined in an amount equal to the profit gained by such person by reason of such violation1 as determined by the court2 and 7#b7 if such person is an individual who was a partner1 director1 officer1 or employee of a financial institution at the time the violation occurred1 repay to such financial institution any bonus paid to such individual during the ,federal fiscal year in which the violation occurred or the ,federal fiscal year after which the violation occurred4 4 7b7 ,rule of construction ,the amendment made by subsection 7a7 may not be construed to prohibit a financial institution from requiring the repayment of a bonus paid to a partner1 director1 officer1 or employee if the financial institution determines that the partner1 director1 officer1 or employee engaged in unethical1 but non-criminal1 activities4 #baa4 ,application of ,bank ,secrecy ,act to dealers in antiquities 7a7 ,in general ,section #ecab7;a77#b7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in subparagraph 7,y71 by striking or at the end2 7#b7 by redesignating subparagraph 7,z7 as subparagraph 7,,aa72 and 7#c7 by inserting after subsection 7,y7 the following3 7,z7 a person trading or acting as an intermediary in the trade of antiquities1 including an advisor1 consultant or any other person who engages as a business in the solicitation of the sale of antiquities2 or 4 7b7 ,study on the facilitation of money laundering and terror finance through the trade of works of art or antiquities 7#a7 ,study ,the ,secretary of the ,treasury1 in coordination with ,federal ,bureau of ,investigation1 the ,attorney ,general1 and ,homeland ,security ,investigations1 shall perform a study on the facilitation of money laundering and terror finance through the trade of works of art or antiquities1 including an analysis of-- 7,a7 the extent to which the facilitation of money laundering and terror finance through the trade of works of art or antiquities may enter or affect the financial system of the ,united ,states1 including any qualitative data or statistics2 7,b7 whether thresholds and definitions should apply in determining which entities to regulate2 7,c7 an evaluation of which markets1 by size1 entity type1 domestic or international geographical locations1 or otherwise1 should be subject to regulations1 but only to the extent such markets are not already required to report on the trade of works of art or antiquities to the ,federal ,government2 7,d7 an evaluation of whether certain exemptions should apply2 and 7,e7 any other points of study or analysis the ,secretary determines necessary or appropriate4 7#b7 ,report ,not later than the end of the #ahj-;day period beginning on the date of the enactment of this ,act1 the ,secretary of the ,treasury shall issue 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 containing all findings and determinations made in carrying out the study required under paragraph 7#a74 7c7 ,rulemaking ,not later than the end of the #ahj-;day period beginning on the date the ,secretary issues the report required under subsection 7b77#b71 the ,secretary shall issue regulations to carry out the amendments made by subsection 7a74 #bab4 ,geographic targeting order ,the ,secretary of the ,treasury shall issue a geographic targeting order1 similar to the order issued by the ,financial ,crimes ,enforcement ,network on ,november #ae1 #bjah1 that-- 7#a7 applies to commercial real estate to the same extent1 with the exception of having the same thresholds1 as the order issued by ,fin,c,e,n on ,november #ae1 #bjah1 applies to residential real estate2 and 7#b7 establishes a specific threshold for commercial real estate4 #bac4 ,study and revisions to currency transaction reports and suspicious activity reports 7a7 ,currency transaction reports 7#a7 ,,ctr indexed for inflation 7,a7 ,in general ,every #e years after the date of enactment of this ,act1 the ,secretary of the ,treasury shall revise regulations issued with respect to section #ecac of title #ca1 ,united ,states ,code1 to update each #aj1jjj threshold amount in such regulation to reflect the change in the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,department of ,labor1 rounded to the nearest #ajj4 ,for purposes of calculating the change described in the previous sentence1 the ,secretary shall use #aj1jjj as the base amount and the date of enactment of this ,act as the base date4 7,b7 ,exception ,notwithstanding subparagraph 7,a71 the ,secretary may make appropriate adjustments to the threshold amounts described under subparagraph 7,a7 in high-risk areas 7e4g41 ,high ,intensity ,financial ,crime ,areas or ,h,i,f,c,as71 if the ,secretary has demonstrable evidence that shows a threshold raise would increase serious crimes1 such as trafficking1 or endanger national security4 7#b7 ,,gao ,,ctr study 7,a7 ,study ,the ,comptroller ,general of the ,united ,states shall carry out a study of currency transaction reports4 ,such study shall include-- 7i7 a review 7carried out in consultation with the ,secretary of the ,treasury1 the ,financial ,crimes ,enforcement ,network1 the ,united ,states ,attorney ,general1 the ,state ,attorneys ,general1 and ,state1 ,tribal1 and local law enforcement7 of the effectiveness of the current currency transaction reporting regime2 7ii7 an analysis of the importance of currency transaction reports to law enforcement2 and 7iii7 an analysis of the effects of raising the currency transaction report threshold4 7,b7 ,report ,not later than the end of the #a-year period beginning on the date of enactment of this ,act1 the ,comptroller ,general shall issue a report to the ,secretary of the ,treasury and the ,congress containing-- 7i7 all findings and determinations made in carrying out the study required under subparagraph 7,a72 and 7ii7 recommendations for improving the current currency transaction reporting regime4 7b7 ,modified ,s,a,rs study and design 7#a7 ,study ,the ,director of the ,financial ,crimes ,enforcement ,network shall carry out a study1 in consultation with industry stakeholders 7including money services businesses1 community banks1 and credit unions71 regulators1 and law enforcement1 of the design of a modified suspicious activity report form for certain customers and activities4 ,such study shall include-- 7,a7 an examination of appropriate optimal ,s,a,rs thresholds to determine the level at which a modified ,s,a,rs form could be employed2 7,b7 an evaluation of which customers or transactions would be appropriate for a modified ,,sar1 including-- 7i7 seasoned business customers2 7ii7 financial technology 7,fintech7 firms2 7iii7 structuring transactions2 and 7iv7 any other customer or transaction that may be appropriate for a modified ,,sar2 and 7,c7 an analysis of the most effective methods to reduce the regulatory burden imposed on financial institutions in complying with the ,bank ,secrecy ,act1 including an analysis of the effect of-- 7i7 modifying thresholds2 7ii7 shortening forms2 7iii7 combining ,bank ,secrecy ,act forms2 7iv7 filing reports in periodic batches2 and 7v7 any other method that may reduce the regulatory burden4 7#b7 ,study considerations ,in carrying out the study required under paragraph 7#a71 the ,director shall seek to balance law enforcement priorities1 regulatory burdens experienced by financial institutions1 and the requirement for reports to have a high degree of usefulness to law enforcement under the ,bank ,secrecy ,act4 7#c7 ,report ,not later than the end of the #a-year period beginning on the date of enactment of this ,act1 the ,director shall issue a report to ,congress containing-- 7,a7 all findings and determinations made in carrying out the study required under subsection 7a72 and 7,b7 sample designs of modified ,s,a,rs forms based on the study results4 7#d7 ,contracting authority ,the ,director may contract with a private third-party to carry out the study required under this subsection4 ,the authority of the ,director to enter into contracts under this paragraph shall be in effect for each fiscal year only to the extent and in the amounts as are provided in advance in appropriations ,acts4 7c7 ,definitions ,for purposes of this section3 7#a7 ,bank ,secrecy ,act ,the term ,bank ,secrecy ,act has the meaning given that term under section #ecab of title #ca1 ,united ,states ,code4 7#b7 ,regulatory burden ,the term regulatory burden means the man-hours to complete filings1 cost of data collection and analysis1 and other considerations of chapter #ce of title #dd1 ,united ,states ,code 7commonly referred to as the ,paperwork ,reduction ,act74 7#c7 ,,sar2 suspicious activity report ,the term ,,sar and suspicious activity report mean a report of a suspicious transaction under section #ecah7;g7 of title #ca1 ,united ,states ,code4 7#d7 ,seasoned ,business ,customer ,the term seasoned business customer1 shall have such meaning as the ,secretary of the ,treasury shall prescribe1 which shall include any person that-- 7,a7 is incorporated or organized under the laws of the ,united ,states or any ,state1 or is registered as1 licensed by1 or otherwise eligible to do business within the ,united ,states1 a ,state1 or political subdivision of a ,state2 7,b7 has maintained an account with a financial institution for a length of time as determined by the ,secretary2 and 7,c7 meet such other requirements as the ,secretary may determine necessary or appropriate4 #bad4 ,streamlining requirements for currency transaction reports and suspicious activity reports 7a7 ,review ,the ,secretary of the ,treasury 7in consultation with ,federal law enforcement agencies1 the ,director of ,national ,intelligence1 and the ,federal functional regulators and in consultation with other relevant stakeholders7 shall undertake a formal review of the current financial institution reporting requirements under the ,bank ,secrecy ,act and its implementing regulations and propose changes to further reduce regulatory burdens1 and ensure that the information provided is of a high degree of usefulness to law enforcement1 as set forth under section #ecaa of title #ca1 ,united ,states ,code4 7b7 ,contents ,the review required under subsection 7a7 shall include a study of-- 7#a7 whether the timeframe for filing a suspicious activity report should be increased from #cj days2 7#b7 whether or not currency transaction report and suspicious activity report thresholds should be tied to inflation or otherwise periodically be adjusted2 7#c7 whether the circumstances under which a financial institution determines whether to file a continuing suspicious activity report1 or the processes followed by a financial institution in determining whether to file a continuing suspicious activity report 7or both7 can be narrowed2 7#d7 analyzing the fields designated as critical on the suspicious activity report form and whether the number of fields should be reduced2 7#e7 the increased use of exemption provisions to reduce currency transaction reports that are of little or no value to law enforcement efforts2 7#f7 the current financial institution reporting requirements under the ,bank ,secrecy ,act and its implementing regulations and guidance2 and 7#g7 such other items as the ,secretary determines appropriate4 7c7 ,report ,not later than the end of the one year period beginning on the date of the enactment of this ,act1 the ,secretary of the ,treasury1 in consultation with law enforcement and persons subject to ,bank ,secrecy ,act requirements1 shall issue a report to the ,congress containing all findings and determinations made in carrying out the review required under subsection 7a74 7d7 ,definitions ,for purposes of this section3 7#a7 ,federal functional regulator ,the term ,federal functional regulator has the meaning given that term under section #ajc4 7#b7 ,other terms ,the terms ,bank ,secrecy ,act and financial institution have the meaning given those terms1 respectively1 under section #ecab of title #ca1 ,united ,states ,code4 ,,iii ,modernizing the ,,aml ,system #cja4 ,encouraging innovation in ,,bsa compliance ,section #ecah of title #ca1 ,united ,states ,code1 as amended by section #bjb1 is further amended by adding at the end the following3 7p7 ,encouraging innovation in compliance 7#a7 ,in general ,the ,federal functional regulators shall encourage financial institutions to consider1 evaluate1 and1 where appropriate1 responsibly implement innovative approaches to meet the requirements of this subchapter1 including through the use of innovation pilot programs4 7#b7 ,exemptive relief ,the ,secretary1 pursuant to subsection 7a71 may provide exemptions from the requirements of this subchapter if the ,secretary determines such exemptions are necessary to facilitate the testing and potential use of new technologies and other innovations4 7#c7 ,rule of construction ,this subsection may not be construed to require financial institutions to consider1 evaluate1 or implement innovative approaches to meet the requirements of the ,bank ,secrecy ,act4 7#d7 ,federal functional regulator defined ,in this subsection1 the term ,federal functional regulator means the ,board of ,governors of the ,federal ,reserve ,system1 the ,comptroller of the ,currency1 the ,federal ,deposit ,insurance ,corporation1 the ,national ,credit ,union ,administration1 the ,securities and ,exchange ,commission1 and the ,commodity ,futures ,trading ,commission4 4 #cjb4 ,innovation ,labs 7a7 ,in general ,subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 #eccc4 ,innovation ,labs 7a7 ,establishment ,there is established within the ,department of the ,treasury and each ,federal functional regulator an ,innovation ,lab4 7b7 ,director ,the head of each ,innovation ,lab shall be a ,director1 to be appointed by the ,secretary of the ,treasury or the head of the ,federal functional regulator1 as applicable4 7c7 ,duties ,the duties of the ,innovation ,lab shall be-- 7#a7 to provide outreach to law enforcement agencies1 financial institutions1 and other persons 7including vendors and technology companies7 with respect to innovation and new technologies that may be used to comply with the requirements of the ,bank ,secrecy ,act2 7#b7 to support the implementation of responsible innovation and new technology1 in a manner that complies with the requirements of the ,bank ,secrecy ,act2 7#c7 to explore opportunities for public-private partnerships2 and 7#d7 to develop metrics of success4 7d7 ,fin,c,e,n lab ,the ,innovation ,lab established under subsection 7a7 within the ,department of the ,treasury shall be a lab within the ,financial ,crimes ,enforcement ,network4 7e7 ,federal functional regulator defined ,in this subsection1 the term ,federal functional regulator means the ,board of ,governors of the ,federal ,reserve ,system1 the ,comptroller of the ,currency1 the ,federal ,deposit ,insurance ,corporation1 the ,national ,credit ,union ,administration1 the ,securities and ,exchange ,commission1 and the ,commodity ,futures ,trading ,commission4 4 7b7 ,clerical amendment ,the table of contents for subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 #eccc4 ,innovation ,labs4 4 #cjc4 ,innovation ,council 7a7 ,in general ,subchapter ,,ii of chapter #ec of ,title #ca1 ,united ,states ,code1 as amended by section #cjb1 is further amended by adding at the end the following3 #eccd4 ,innovation ,council 7a7 ,establishment ,there is established the ,innovation ,council 7hereinafter in this section referred to as the ,council71 which shall consist of each ,director of an ,innovation ,lab established under section #eccd and the ,director of the ,financial ,crimes ,enforcement ,network4 7b7 ,chair ,the ,director of the ,innovation ,lab of the ,department of the ,treasury shall serve as the ,chair of the ,council4 7c7 ,duty ,the members of the ,council shall coordinate on activities related to innovation under the ,bank ,secrecy ,act1 but may not supplant individual agency determinations on innovation4 7d7 ,meetings ,the meetings of the ,council-- 7#a7 shall be at the call of the ,chair1 but in no case may the ,council meet less than semi-annually2 7#b7 may include open and closed sessions1 as determined necessary by the ,council2 and 7#c7 shall include participation by public and private entities and law enforcement agencies4 7e7 ,report ,the ,council shall issue an annual report1 for each of the #g years beginning on the date of enactment of this section1 to the ,secretary of the ,treasury on the activities of the ,council during the previous year1 including the success of programs as measured by metrics of success developed pursuant to section #eccd7;c77#d71 and any regulatory or legislative recommendations that the ,council may have4 4 7b7 ,clerical amendment ,the table of contents for subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code1 is amended by adding the end the following3 #eccd4 ,innovation ,council4 4 #cjd4 ,testing methods rulemaking 7a7 ,in general ,section #ecah of title #ca1 ,united ,states ,code1 as amended by section #cja1 is further amended by adding at the end the following3 7q7 ,testing 7#a7 ,in general ,the ,secretary of the ,treasury1 in consultation with the head of each agency to which the ,secretary has delegated duties or powers under subsection 7a71 shall issue a rule to specify-- 7,a7 with respect to technology and related technology-internal processes 7new technology7 designed to facilitate compliance with the ,bank ,secrecy ,act requirements1 the standards by which financial institutions are to test new technology2 and 7,b7 in what instances or under what circumstance and criteria a financial institution may replace or terminate legacy technology and processes for any examinable technology or process without the replacement or termination being determined an examination deficiency4 7#b7 ,standards ,the standards described under paragraph 7#a7 may include-- 7,a7 an emphasis on using innovative approaches1 such as machine learning1 rather than rules-based systems2 7,b7 risk-based back-testing of the regime to facilitate calibration of relevant systems2 7,c7 requirements for appropriate data privacy and security2 and 7,d7 a requirement that the algorithms used by the regime be disclosed to the ,financial ,crimes ,enforcement ,network1 upon request4 7#c7 ,confidentiality of algorithms ,if a financial institution or any director1 officer1 employee1 or agent of any financial institution1 voluntarily or pursuant to this subsection or any other authority1 discloses the institution's algorithms to a ,government agency1 such algorithms and any materials associated with the creation of such algorithms shall be considered confidential and not subject to public disclosure4 4 7b7 ,update of manual ,the ,financial ,institutions ,examination ,council shall ensure-- 7#a7 that any manual prepared by the ,council is updated to reflect the rulemaking required by the amendment made by subsection 7a72 and 7#b7 that financial institutions are not penalized for the decisions based on such rulemaking to replace or terminate technology used for compliance with the ,bank ,secrecy ,act 7as defined under section #ecab of title #ca1 ,united ,states ,code7 or other anti-money laundering laws4 #cje4 ,fin,c,e,n study on use of emerging technologies 7a7 ,study 7#a7 ,in general ,the ,director of the ,financial ,crimes ,enforcement ,network 7,fin,c,e,n7 shall carry out a study on-- 7,a7 the status of implementation and internal use of emerging technologies1 including artificial intelligence 7,,ai71 digital identity technologies1 blockchain technologies1 and other innovative technologies within ,fin,c,e,n2 7,b7 whether ,,ai1 digital identity technologies1 blockchain technologies1 and other innovative technologies can be further leveraged to make ,fin,c,e,n's data analysis more efficient and effective2 and 7,c7 how ,fin,c,e,n could better utilize ,,ai1 digital identity technologies1 blockchain technologies1 and other innovative technologies to more actively analyze and disseminate the information it collects and stores to provide investigative leads to ,federal1 ,state1 ,tribal1 and local law enforcement1 and other ,federal agencies 7collective1 ,agencies71 and better support its ongoing investigations when referring a case to the ,agencies4 7#b7 ,inclusion of ,,gto data ,the study required under this subsection shall include data collected through the ,geographic ,targeting ,orders 7,,gto7 program4 7#c7 ,consultation ,in conducting the study required under this subsection1 ,fin,c,e,n shall consult with the ,directors of the ,innovations ,labs established in section #cjb4 7b7 ,report ,not later than the end of the #f-month period beginning on the date of the enactment of this ,act1 the ,director shall issue a report to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives containing-- 7#a7 all findings and determinations made in carrying out the study required under subsection 7a72 7#b7 with respect to each of subparagraphs 7,a71 7,b7 and 7,c7 of subsection 7a77#a71 any best practices or significant concerns identified by the ,director1 and their applicability to ,,ai1 digital identity technologies1 blockchain technologies1 and other innovative technologies with respect to ,u4,s4 efforts to combat money laundering and other forms of illicit finance2 and 7#c7 any policy recommendations that could facilitate and improve communication and coordination between the private sector1 ,fin,c,e,n1 and ,agencies through the implementation of innovative approaches1 in order to meet their ,bank ,secrecy ,act 7as defined under section #ecab of title #ca1 ,united ,states ,code7 and anti-money laundering compliance obligations4 #cjf4 ,discretionary surplus funds 7a7 ,in general ,section #g7;a77#c77;,a7 of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #bhi7;a77#c77;,a77 is amended by striking #f1hbe1jjj1jjj and inserting #f1gih1jjj1jjj4 7b7 ,effective date ,the amendment made by subsection 7a7 shall take effect on ,september #cj1 #bjbi4 ,passed the ,house of ,representatives ,october #bb1 #bjai4;,clerk4