,i #aafth ,,congress #ast ,session ,h4 ,r4 #bead ,,in ,,the ,,house ,,of ,,representatives ,may #c1 #bjai,mr4 ,cleaver introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committee on ,ways and ,means1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to make reforms to the ,federal ,bank ,secrecy ,act and anti-money laundering laws1 and for other purposes4 #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 ,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 ,fin,c,e,n ,compensation4 ,sec4 #ajc4 ,civil ,liberties and ,privacy ,officer4 ,sec4 #ajd4 ,privacy and ,civil ,liberties ,council4 ,sec4 #aje4 ,international coordination4 ,sec4 #ajf4 ,treasury ,attach ,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 ,de-risking report4 ,title ,,ii--,improving ,,aml_/,,cft ,oversight ,sec4 #bja4 ,sharing of suspicious activity reports within a financial group4 ,sec4 #bjb4 ,training for examiners on ,,aml_/,,cft4 ,sec4 #bjc4 ,sharing of compliance resources4 ,sec4 #bjd4 ,,gao ,study on feedback loops4 ,sec4 #bje4 ,fin,c,e,n study on ,,bsa value4 ,sec4 #bjf4 ,section #cad7;a7 improvements4 ,sec4 #bjg4 ,sharing of threat pattern and trend information4 ,sec4 #bjh4 ,modernization and upgrading whistleblower protections4 ,sec4 #bji4 ,certain violators barred from serving on public company boards4 ,sec4 #baj4 ,additional damages for repeat ,bank ,secrecy ,act violators4 ,sec4 #baa4 ,justice annual report on deferred and nonprosecution agreements4 ,sec4 #bab4 ,return of profits and bonuses4 ,sec4 #bac4 ,prohibition on tax deductions for attorney's fees related to ,bank ,secrecy ,act settlements and court costs4 ,sec4 #bad4 ,application of ,bank ,secrecy ,act to dealers in art or antiquities4 ,sec4 #bae4 ,revision to geographic targeting order4 ,title ,,iii--,modernizing the ,,aml ,system ,sec4 #cja4 ,encouraging innovation in ,,bsa compliance4 ,sec4 #cjb4 ,innovation ,labs4 ,sec4 #cjc4 ,innovation ,council4 ,sec4 #cjd4 ,parallel runs rulemaking4 #b4 ,bank ,secrecy ,act definition ,section #ecab7;a7 of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7#f7 ,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 before in criminal4 #ajb4 ,fin,c,e,n ,compensation ,section #caj of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by redesignating subsection 7d7 as subsection 7f72 and 7#b7 by inserting after subsection 7c7 the following3 7d7 ,employee compensation ,in fixing the compensation for employees of ,fin,c,e,n1 the ,secretary shall-- 7#a7 fix such compensation without regard to the provisions of chapter #ea or subchapter ,,iii of chapter #ec of title #e1 ,united ,states ,code2 and 7#b7 ensure that such compensation is comparable to the compensation provided by the ,board of ,governors of the ,federal ,reserve ,system1 the ,bureau of ,consumer ,financial ,protection1 the ,federal ,deposit ,insurance ,corporation1 the ,national ,credit ,union ,administration1 and the ,office of the ,comptroller of the ,currency4 4 #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 financial regulator1 by the head of the ,federal financial regulator2 7#b7 within the ,financial ,crimes ,enforcement ,network1 by the ,secretary of the ,treasury2 and 7#c7 within the ,internal ,revenue ,service ,criminal ,investigation1 by the ,secretary of the ,treasury4 7b7 ,duties ,each ,civil ,liberties and ,privacy ,officer shall1 with respect to the applicable regulator1 ,network1 or ,investigation within which the ,officer is located-- 7#a7 be consulted each time the regulations are developed or reviewed2 7#b7 be consulted on information-sharing activities1 including activities that provide access to personally identifiable information2 and 7#c7 contribute to the evaluation and regulation of new technologies4 7c7 ,federal financial regulator defined ,for purposes of this section1 the term ,federal financial regulator means the ,board of ,governors of the ,federal ,reserve ,system1 the ,bureau of ,consumer ,financial ,protection1 the ,federal ,deposit ,insurance ,corporation1 the ,national ,credit ,union ,administration1 and the ,office of the ,comptroller of the ,currency4 #ajd4 ,privacy and ,civil ,liberties ,council 7a7 ,establishment ,there is established the ,privacy and ,civil ,liberties ,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 ,civil ,liberties and ,privacy ,officer 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 ,privacy and ,civil ,liberties ,officers4 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 closed sessions1 as determined necessary by the ,council2 and 7#c7 may include participation by public and private entities and law enforcement agencies4 7e7 ,report ,the ,council shall issue an annual report to the ,congress on the activities of the ,council during the previous year and any legislative recommendations that the ,council may have4 #aje4 ,international coordination ,the ,secretary of the ,treasury shall work with the ,secretary's foreign counterparts1 including through the ,financial ,action ,task ,force1 the ,international ,monetary ,fund1 the ,world ,bank1 and the ,united ,nations1 to promote stronger anti-money laundering frameworks and enforcement of anti-money laundering laws4 #ajf4 ,treasury ,attach ,program 7a7 ,in general ,title #ca1 ,united ,states ,code1 is amended by inserting after section #cae the following3 #caf4 ,treasury ,attach ,program 7a7 ,in general ,there is established the ,treasury ,attach ,program1 under which the ,secretary of the ,treasury shall appoint employees of the ,department of the ,treasury as a ,treasury attach1 who shall-- 7#a7 have expertise in ,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 exchanges2 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 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 ,attach ,program4 4 #ajg4 ,increasing technical assistance for international cooperation ,there is authorized to be appropriated for fiscal year #bjbj to the ,secretary of the ,treasury for purposes of providing technical assistance for international cooperation an amount equal to twice the amount authorized for such purpose for fiscal year #bjai4 #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 another ,federal agency in such region72 7,c7 provide education to1 and coordination with1 both public- and private-sector entities with respect to ,fin,c,e,n2 and 7,d7 perform outreach to 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 ,financial institution defined ,in this subsection1 the term financial institution has the meaning given that term under section #ecab4 4 #aji4 ,fin,c,e,n ,exchange 7a7 ,in general ,section #cad7;a7 of the ,,usa ,,patriot ,act 7#ca ,u4,s4,c4 #ecaa note7 is amended by adding at the end the following3 7#f7 ,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 further the purpose described under paragraph 7#a7 by facilitating a voluntary public-private information sharing partnership among law enforcement1 financial institutions1 and ,fin,c,e,n to-- 7i7 effectively and efficiently combat money laundering1 terrorism financing1 organized crime1 and other financial crimes2 7ii7 protect the financial system from illicit use2 and 7iii7 promote national security4 7,c7 ,fin,c,e,n defined ,in this paragraph1 the term ,fin,c,e,n means the ,financial ,crimes ,enforcement ,network of the ,department of the ,treasury4 4 7b7 ,authorization of appropriation ,there is authorized to be appropriated such sums as may be necessary to carry out the amendment made by subsection 7a74 #aaj4 ,study and strategy on trade-based money laundering 7a7 ,study ,the ,secretary of the ,treasury shall carry out a study1 in consultation with other appropriate ,federal departments and agencies1 on trade-based money laundering4 7b7 ,report ,not later than the end of the #i-month 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 annex1 if the ,secretary determines it appropriate4 #aaa4 ,de-risking report 7a7 ,review ,the ,secretary of the ,treasury1 in consultation with the ,federal functional regulators 7as defined under section #ajc7 and other relevant stakeholders1 shall undertake a formal review of-- 7#a7 the 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 ,regulations71 countries1 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 and 7#d7 the most appropriate ways to promote financial inclusion while maintaining compliance with the ,bank ,secrecy ,act4 7b7 ,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 ,congress containing all findings and determinations made in carrying out the study required under subsection 7a74 7c7 ,definitions ,in this section3 7#a7 ,de-risking ,the term de-risking means the closing of customer accounts or limiting services of a category of customer due to perceived 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 of title #ca1 ,united ,states ,code4 ,,ii ,improving ,,aml_/,,cft ,oversight #bja4 ,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 ,sharing with foreign branches1 subsidiaries1 and affiliates 7,a7 ,in general ,not later than #ahj days after the date of the enactment of this paragraph1 the ,secretary of the ,treasury shall issue rules permitting any financial institution with a reporting obligation under this subsection to share information on reports under this subsection with the institution's foreign branches1 subsidiaries1 and affiliates for the purposes of combating illicit finance risks1 notwithstanding any other provision of law except subparagraph 7,b74 7,b7 ,exception ,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 a jurisdiction that-- 7i7 is subject to countermeasures imposed by the ,federal ,government2 or 7ii7 the ,secretary1 in consultation with the ,civil ,liberties and ,privacy ,officer of the ,financial ,crimes ,enforcement ,network1 has determined cannot reasonably protect the privacy and confidentiality of such information4 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 reported1 including materials prepared or used by the financial institution for the purpose of identifying and detecting potentially suspicious activity2 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 reported1 including materials prepared or used by the financial institution for the purpose of identifying and detecting potentially suspicious activity14 7b7 ,rulemaking ,not later than the end of the #ahj-;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 ,training for examiners on ,,aml_/,,cft ,the ,federal ,financial ,institutions ,examination ,council ,act of #aigh 7#ab ,u4,s4,c4 #ccja et seq47 is amended-- 7#a7 by moving section #ajji;,a so as to appear after section #ajji2 and 7#b7 by inserting after section #ajji;,a1 as so moved1 the following3 #ajji;,b4 ,,aml_/,,cft ,training 7a7 ,training requirement ,each examiner employed by a ,federal financial institutions regulatory agency shall attend at least #aj hours of annual training on anti-money laundering 7,,aml7 and the countering of the financing of terrorism 7,,cft71 including-- 7#a7 potential risk profiles and red flags that may be encountered during examinations2 7#b7 financial crime patterns and trends2 7#c7 the high-level context for why ,,aml and ,,cft programs are necessary for law enforcement agencies and other national security agencies1 and what risks the programs seek to mitigate2 and 7#d7 de-risking and its effect on the provision of financial services4 7b7 ,training materials and standards ,the ,council shall establish uniform training materials and standards for use in the training required under subsection 7a74 4 #bjc4 ,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 efficiency 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 #bjd4 ,,gao ,study on feedback loops 7a7 ,study ,the ,comptroller ,general of the ,united ,states shall carry out a study on-- 7#a7 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 outside the ,united ,states for providing feedback loops on 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 and 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 finance4 #bje4 ,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 #a-year period beginning on the date of enactment of this ,act1 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 #bjf4 ,section #cad7;a7 improvements ,section #cad7;a7 of the ,,usa ,,patriot ,act 7#ca ,u4,s4,c4 #ecaa note71 as amended by section #aji1 is further amended by adding at the end the following3 7#g7 ,point of contact list 7,a7 ,in general ,the ,secretary shall maintain a list containing contact information for with respect to a law enforcement agency1 those individuals who serve as points of contact for a ,suspicious ,activity ,report review committee4 7,b7 ,availability of list ,the ,secretary shall make the list of contact information described under subparagraph 7,a7 available to all financial institutions and law enforcement agencies4 4 #bjg4 ,sharing of threat pattern and trend information ,section #cad7;a7 of the ,,usa ,,patriot ,act 7#ca ,u4,s4,c4 #ecaa note71 as amended by section #bjf1 is further amended by adding at the end the following3 7#h7 ,sharing of threat pattern and trend information 7,a7 ,in general ,not less than monthly1 the ,secretary shall provide financial institutions with typologies on emerging money laundering and counter terror financing threat patterns and trends4 7,b7 ,information classification ,in providing information pursuant to subparagraph 7,a71 the ,secretary may provide public and sensitive information to financial institutions1 but may not provide classified information1 unless otherwise permitted by law4 4 #bjh4 ,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 an award under this section1 there are authorized to be appropriated such sums as may be necessary1 and the ,secretary may also use funds from the ,department of the ,treasury ,forfeiture ,fund and the ,department of ,justice ,assets ,forfeiture ,fund4 4 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-- 7,a7 not less than #aj percent1 in total1 of what has been collected of the monetary sanctions imposed in the action or related actions2 and 7,b7 not more than #cj percent1 in total1 of what has been collected of the monetary sanctions imposed in the action or related actions4 7#b7 ,source of awards ,for the purposes of paying any award under paragraph 7#a7 there are authorized to be appropriated such sums as may be necessary1 and the ,secretary may also use funds from the ,department of the ,treasury ,forfeiture ,fund and the ,department of ,justice ,assets ,forfeiture ,fund4 7c7 ,determination of amount of award2 denial of award 7#a7 ,determination of amount of award 7,a7 ,discretion ,the determination of the amount of an award made under subsection 7b7 shall be in the discretion of 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-- 7i7 shall take into consideration-- 7,i7 the significance of the information provided by the whistleblower to the success of the covered judicial or administrative action2 7,,ii7 the degree of assistance provided by the whistleblower and any legal representative of the whistleblower in a covered judicial or administrative action2 7,,iii7 the mission of ,fin,c,e,n in deterring violations of the law by making awards to whistleblowers who provide information that lead to the successful enforcement of such laws2 and 7,,iv7 such additional relevant factors as the ,secretary may establish by rule2 and 7ii7 shall not take into consideration the balance of any fund described under section #ecbc7;d74 7#b7 ,denial of award ,no award under subsection 7b7 shall be made-- 7,a7 to any whistleblower who is1 or was at the time the whistleblower acquired the original information submitted to ,fin,c,e,n1 a member1 officer1 or employee of-- 7i7 an appropriate regulatory agency2 7ii7 the ,department of ,justice2 7iii7 a self-regulatory organization2 or 7iv7 a law enforcement organization2 7,b7 to any whistleblower who is convicted of a criminal violation related to the judicial or administrative action for which the whistleblower otherwise could receive an award under this section2 7,c7 to any whistleblower who gains the information through the performance of an audit of financial statements required under the ,bank ,secrecy ,act and for whom such submission would be contrary to its requirements2 or 7,d7 to any whistleblower who fails to submit information to ,fin,c,e,n in such form as 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 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 #bji4 ,certain violators barred from serving on public company boards ,section #ecba of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7f7 ,certain violators barred from serving on public company boards 7#a7 ,in general ,an individual found to have committed an egregious violation of a provision of 7or rule issued under7 this subchapter1 section #ba of the ,federal ,deposit ,insurance ,act1 or section #abc of ,public ,law #ia-ejh shall be barred from serving on the board of directors of a public company for a #aj-year period beginning on the date of such finding4 7#b7 ,definitions ,in this subsection3 7,a7 ,egregious violation ,with respect to an individual1 the term egregious violation means-- 7i7 a felony criminal violation for which the individual was convicted2 and 7ii7 a civil violation where the individual knowingly committed such violation and the violation facilitated money laundering or the financing of terrorism4 7,b7 ,public company ,the term public company means an issuer the securities of which are traded on a national securities exchange4 7,c7 ,other securities terms ,the terms issuer and national securities exchange have the meaning given those terms1 respectively1 under section #c of the ,securities ,exchange ,act of #aicd4 4 #baj4 ,additional damages for repeat ,bank ,secrecy ,act violators ,section #ecba of title #ca1 ,united ,states ,code1 as amended by section #bji1 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 violated a provision of 7or rule issued under7 this subchapter1 section #ba of the ,federal ,deposit ,insurance ,act1 or section #abc of ,public ,law #ia-ejh1 the ,secretary may impose an additional civil penalty against such person for each additional such violation in an amount equal to up to three times the profit gained or loss avoided by such person as a result of the violation4 4 #baa4 ,justice annual report on deferred and nonprosecution 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 nonprosecution 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 #bab4 ,return of profits and bonuses ,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 this subchapter1 section #ba of the ,federal ,deposit ,insurance ,act1 or section #abc of ,public ,law #ia-ejh 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 domestic financial institution or nonfinancial trade or business at the time the violation occurred1 repay to such domestic financial institution or nonfinancial trade or business any bonus paid to such individual during the ,federal fiscal year in which the violation occurred4 4 #bac4 ,prohibition on tax deductions for attorney's fees related to ,bank ,secrecy ,act settlements and court costs ,section #afb7;f7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7#f7 ,violations of the ,bank ,secrecy ,act ,in the case of a payment described in paragraph 7#a7 that is in relation to any violation of the ,bank ,secrecy ,act 7as defined under section #ecab of title #ca1 ,united ,states ,code71 no deduction shall be allowed under this chapter for attorney's fees related to such payment4 4 #bad4 ,application of ,bank ,secrecy ,act to dealers in art or 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 dealers in art or antiquities2 or 4 7b7 ,rulemaking ,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 regulations to carry out the amendments made by subsection 7a74 7c7 ,effective date ,section #ecab7;a77#b77,z7 of title #ca1 ,united ,states ,code1 as added by subsection 7a71 shall take effect after the end of the #bgj-;day period beginning on the date of the enactment of this ,act4 #bae4 ,revision to geographic targeting order ,the ,secretary of the ,treasury shall revise the geographic targeting order issued by the ,financial ,crimes ,enforcement ,network on ,november #ae1 #bjah 7the ,order71 so that the ,order-- 7#a7 applies to commercial real estate to the same extent as the ,order applies to residential real estate2 and 7#b7 applies to a purchase made1 at least in part1 using an in-kind transaction to the same extent as the ,order applies to a purchase made1 at least in part1 using currency or a cashier's check1 a certified check1 a traveler's check1 a personal check1 a business check1 a money order in any form1 a funds transfer1 or virtual currency4 ,,iii ,modernizing the ,,aml ,system #cja4 ,encouraging innovation in ,,bsa compliance ,section #ecah of title #ca1 ,united ,states ,code1 as amended by section #bjc1 is further amended by adding at the end the following3 7p7 ,encouraging innovation in compliance 7#a7 ,in general ,the financial agencies 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 ,financial agency defined ,in this subsection1 the term financial agency means the ,department of the ,treasury1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 the ,national ,credit ,union ,administration1 the ,office of the ,comptroller of the ,currency1 and the ,securities and ,exchange ,commission4 4 #cjb4 ,innovation ,labs 7a7 ,in general ,title #ca1 ,united ,states ,code1 is amended by inserting after section #ecbf the following3 #ecbg4 ,innovation ,labs 7a7 ,establishment ,there is established within each financial agency an ,innovation ,lab4 7b7 ,director ,the head of each ,innovation ,lab shall be a ,director1 to be appointed by the head of the applicable financial agency4 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 used to comply with the requirements of the ,bank ,secrecy ,act2 and 7#b7 to support the implementation of responsible innovation and new technology1 in a manner that complies with the requirements of the ,bank ,secrecy ,act4 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 ,financial agency defined ,in this section1 the term financial agency means the ,department of the ,treasury1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 the ,national ,credit ,union ,administration1 the ,office of the ,comptroller of the ,currency1 and the ,securities and ,exchange ,commission4 4 7b7 ,clerical amendment ,the table of contents for chapter #ec of title #ca1 ,united ,states ,code1 is amended by inserting after the item relating to section #ecbf the following3 #ecbg4 ,innovation ,labs4 4 #cjc4 ,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 #cjb 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 ,act 7as defined under section #ecab of title #ca1 ,united ,states ,code74 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 closed sessions1 as determined necessary by the ,council2 and 7#c7 may include participation by public and private entities and law enforcement agencies4 7e7 ,report ,the ,council shall issue an annual report to ,congress on the activities of the ,council during the previous year and any legislative recommendations that the ,council may have4 #cjd4 ,parallel runs rulemaking ,section #ecah of title #ca1 ,united ,states ,code1 as amended by section #cja1 is further amended by adding at the end the following3 7q7 ,parallel runs rulemaking ,the ,secretary of the ,treasury1 in consultation with the ,director of the ,financial ,crimes ,enforcement ,network and 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 processes designed to facilitate compliance with the ,bank ,secrecy ,act requirements1 under what circumstances it is necessary for a financial institution to test new technology and processes alongside legacy technology and processes 7parallel runs72 7#b7 if parallel runs are required1 what tests must be completed2 and 7#c7 in what instances or under what circumstances a financial institution may replace or terminate such legacy technology and processes for any examinable technology or process4 4