,,ii #aafth ,,congress #ast ,session ,s4 #befc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bf1 #bjai,mr4 ,warner 7for himself1 ,mr4 ,cotton1 ,mr4 ,jones1 ,mr4 ,rounds1 ,mr4 ,menendez1 ,mr4 ,kennedy1 ,ms4 ,cortez ,masto1 and ,mr4 ,moran7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to improve laws relating to money laundering1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,improving ,laundering ,laws and ,increasing ,comprehensive ,information ,tracking of ,criminal ,activity in ,shell ,holdings ,act or the ,,illicit ,,cash ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,findings and purposes4 ,sec4 #c4 ,definitions4 ,sec4 #d4 ,sense of ,congress4 ,,title ,i--,anti-money laundering programs and the ,financial ,crimes ,enforcement ,network ,sec4 #aja4 ,establishment of national exam and supervision priorities4 ,sec4 #ajb4 ,fin,c,e,n compensation4 ,sec4 #ajc4 ,subcommittee on ,innovation2 investigator research hub4 ,sec4 #ajd4 ,establishment of ,fin,c,e,n financial institution liaison4 ,sec4 #aje4 ,interagency ,,aml-,,cft personnel rotation program4 ,sec4 #ajf4 ,subcommittee on ,privacy and ,civil ,liberties4 ,sec4 #ajg4 ,international coordination4 ,sec4 #ajh4 ,strengthening ,fin,c,e,n4 ,,title ,,ii--,improving ,,aml-,,cft communication1 oversight1 and processes ,sec4 #bja4 ,annual reporting requirements4 ,sec4 #bjb4 ,law enforcement feedback on suspicious activity reports4 ,sec4 #bjc4 ,streamlining requirements for currency transaction reports and suspicious activity reports4 ,sec4 #bjd4 ,currency transaction report and suspicious activity report thresholds review4 ,sec4 #bje4 ,review of regulations and guidance4 ,sec4 #bjf4 ,penalty coordination4 ,sec4 #bjg4 ,cooperation with law enforcement4 ,sec4 #bjh4 ,additional damages for repeat ,bank ,secrecy ,act violators4 ,sec4 #bji4 ,encouraging information sharing and public-private partnerships4 ,,title ,,iii--,modernization of ,,aml_/,,cft system ,sec4 #cja4 ,approved systems for identifying suspicious activities4 ,sec4 #cjb4 ,financial crimes tech symposium4 ,sec4 #cjc4 ,deidentified ,,aml information4 ,sec4 #cjd4 ,no action letters4 ,sec4 #cje4 ,,oecd pilot program on sharing of suspicious activity reports within a financial group4 ,sec4 #cjf4 ,foreign evidentiary requests4 ,sec4 #cjg4 ,updating whistleblower incentives and protection4 ,sec4 #cjh4 ,value that substitutes currency or funds4 ,sec4 #cji4 ,fight illicit networks and detect trafficking4 ,sec4 #caj4 ,study and strategy on ,chinese money laundering4 ,sec4 #caa4 ,financial technology task force4 ,sec4 #cab4 ,study on the efforts of authoritarian regimes to exploit the financial system of the ,united ,states4 ,sec4 #cac4 ,additional studies4 ,,title ,,iv--,beneficial ownership disclosure requirements ,sec4 #dja4 ,beneficial ownership4 ,sec4 #djb4 ,geographic targeting order4 ,sec4 #djc4 ,beneficial ownership studies4 ,,title ,v--,strengthening the ability of the ,securities and ,exchange ,commission to pursue violations of the securities laws ,sec4 #eja4 ,short title4 ,sec4 #ejb4 ,investigations and prosecutions of violations of the securities laws4 #b4 ,findings and purposes 7a7 ,findings ,congress finds the following3 7#a7 ,the practice known as bank de-risking1 whereby financial institutions avoid rather than manage anti-money-laundering and countering-the-financing-of-terrorism sanctions compliance risk1 has negatively impacted the ability of nonprofit organizations to conduct lifesaving activities around the globe4 7#b7 ,two-thirds of nonprofit organizations based in the ,united ,states with international activities face difficulties with financial access1 most commonly the inability to send funds internationally through transparent1 regulated financial channels4 7#c7 ,without access to timely and predictable banking services1 nonprofit organizations cannot carry out essential humanitarian activities that literally can mean life or death to affected communities4 7#d7 ,de-risking ultimately drives money into less transparent channels through carrying of cash or use of unlicensed or unregistered money service remitters1 thus reducing transparency and traceability1 which are critical for financial integrity1 and increases the risk of money falling into the wrong hands4 7#e7 ,federal agencies must work to address de-risking through establishment of guidance enabling financial institutions to bank nonprofit organizations and promoting focused and proportionate measures consistent with a risk-based approach4 7#f7 ,the ,federal ,government should work cooperatively with other donor states to promote a multi-stakeholder approach to risk-sharing among governments1 financial institutions1 and nonprofit organizations4 7b7 ,purposes ,the purposes of this ,act are-- 7#a7 to improve coordination among the agencies tasked with administering anti-money-laundering and countering-the-financing-of-terrorism requirements1 the agencies that examine financial institutions for compliance with those requirements1 ,federal law enforcement agencies1 the intelligence community1 and financial institutions2 7#b7 to establish beneficial ownership reporting requirements to improve transparency concerning corporate structures and insight into the flow of illicit funds through such structures1 discourage the use of shell corporations as a tool to disguise illicit funds1 assist law enforcement with the pursuit of serious crimes1 and protect the national security of the ,united ,states2 7#c7 to modernize anti-money-laundering and counter-financing-of-terrorism laws to adapt the government and private sector response to new threats2 7#d7 to encourage technological innovation and the adoption of new technology by financial institutions to more effectively counter money laundering and terrorist financing2 and 7#e7 to reinforce that the anti-money-laundering and countering-the-financing-of-terrorism policies1 procedures1 and controls of financial institutions shall be risk-based4 #c4 ,definitions ,in this ,act3 7#a7 ,bank ,secrecy ,act ,the term ,bank ,secrecy ,act means-- 7,a7 section #ba of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b72 7,b7 chapter #b of title ,i of ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et seq472 and 7,c7 subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code4 7#b7 ,federal functional regulator ,the term ,federal functional regulator has the meaning given the term in section #eji of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fhji74 7#c7 ,fin,c,e,n ,the term ,fin,c,e,n means the ,financial ,crimes ,enforcement ,network of the ,department of the ,treasury4 7#d7 ,financial institution ,the term financial institution has the meaning given the term in section #ecab of title #ca1 ,united ,states ,code4 7#e7 ,secretary ,the term ,secretary means ,secretary of the ,treasury4 7#f7 ,state bank supervisor ,the term ,state bank supervisor has the meaning given the term in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 #d4 ,sense of ,congress ,it is the sense of ,congress that providing vital humanitarian and development assistance and protecting the integrity of the international financial system are complementary goals4 ,as such1 ,congress supports the following3 7#a7 ,effective measures to stop the flow of illicit funds and that promote the goals of anti-money laundering and countering the financing of terrorism and sanctions regimes4 7#b7 ,anti-money laundering and countering the financing of terrorism and sanctions policies that do not hinder or delay the efforts of legitimate humanitarian organizations in providing assistance to-- 7,a7 meet the needs of civilians facing humanitarian crisis1 including access to food1 health and medical care1 shelter1 and clean drinking water2 and 7,b7 prevent or alleviate human suffering1 in keeping with requirements of international humanitarian law4 7#c7 ,policies that ensure that incidental1 inadvertent benefits that may indirectly benefit a designated group in the course of delivering life-saving aid to civilian populations1 are not the focus of the ,federal ,government enforcement efforts4 7#d7 ,all laws1 regulations1 policies1 guidance and other measures that ensure the integrity of the financial system through a risk-based approach4 ,i ,anti-money laundering programs and the ,financial ,crimes ,enforcement ,network #aja4 ,establishment of national exam and supervision priorities 7a7 ,declaration of purpose ,subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code1 is amended by striking section #ecaa and inserting the following3 #ecaa4 ,declaration of purpose ,it is the purpose of this subchapter 7except section #ecae7 to-- 7#a7 prevent the laundering of money and the financing of terrorism through the establishment by financial institutions of reasonably designed risk-based programs to combat money laundering and terrorist financing2 7#b7 facilitate the tracking of money that has been sourced through criminal activity or is intended to promote criminal or terrorist activity2 7#c7 protect the integrity of the financial system and the security of the ,united ,states2 7#d7 establish appropriate frameworks for information sharing among financial institutions1 their agent and service providers1 their regulatory authorities1 associations of financial institutions1 the ,financial ,crimes ,enforcement ,network1 and law enforcement authorities to identify1 stop1 and apprehend money launderers and those who finance terrorists2 and 7#e7 require certain reports or records where they have a high degree of usefulness in criminal1 tax1 or regulatory investigations or proceedings1 or in the conduct of intelligence or counterintelligence activities1 including analysis1 to protect against terrorism4 4 7b7 ,anti-,money laundering programs ,section #ecah of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a77#a71 by striking subsection 7b77#b7 and inserting subsections 7b77#b7 and 7h77#d72 and 7#b7 in subsection 7h7-- 7,a7 in paragraph 7#a7-- 7i7 by inserting and terrorist financing after money laundering2 and 7ii7 by inserting and combating the financing of terrorism after anti-money laundering2 7,b7 in paragraph 7#b7-- 7i7 by striking ,the ,secretary and inserting the following3 7,a7 ,in general ,the ,secretary 2 and 7ii7 by adding at the end the following3 7,b7 ,factors ,in establishing rules1 regulations and guidance under subparagraph 7,a71 and in supervising and examining compliance with those rules1 the ,secretary of the ,treasury1 and the ,federal functional regulators 7as defined in section #eji of the ,gramm-,leach-,bliley ,act 7#ab ,u4,s4,c4 #fhji77 shall take into account the following3 7i7 ,financial institutions are spending private dollars for a public and private benefit4 7ii7 ,the extension of financial services to the underbanked in the ,united ,states and abroad is a policy goal of the ,united ,states4 7iii7 ,effective anti-money-laundering and combating-the-financing-of-terrorism programs generate significant public benefits by preventing the flow of illicit funds in the financial system and by assisting law enforcement with the identification and prosecution of persons attempting to launder money and other illicit activity through the financial system4 7iv7 ,anti-money-laundering and combating-the-financing-of-terrorism programs described in paragraph 7#a7 should be reasonably designed to assure and monitor compliance with the requirements of this subchapter and regulations issued hereunder1 which should be risk based1 including that more financial institution attention and resources should be directed toward higher risk customers and activities1 consistent with the risk profile of a financial institution1 rather than lower risk customers and activities4 2 and 7,c7 by adding at the end the following3 7#d7 ,priorities 7,a7 ,in general ,not later than #bgj days after the date of enactment of this paragraph1 the ,secretary of the ,treasury1 in consultation with the ,attorney ,general1 ,federal functional regulators 7as defined in section #eji of the ,gramm-,leach-,bliley ,act 7#ab ,u4,s4,c4 #fhji771 relevant ,state financial regulators1 national security agencies1 and the ,secretary of ,homeland ,security1 shall establish and make public priorities for anti-money laundering and counter terrorist financing policy4 7,b7 ,updates ,once every #d years1 the ,secretary of the ,treasury shall1 in consultation with the ,attorney ,general1 ,federal functional regulators 7as defined in section #eji of the ,gramm-,leach-,bliley ,act 7#ab ,u4,s4,c4 #fhji771 relevant ,state financial regulators1 national security agencies1 and the ,secretary of ,homeland ,security update the priorities established under subparagraph 7,a74 7,c7 ,relation to national strategy ,the ,secretary of the ,treasury shall ensure that the priorities established under subparagraph 7,a7 are consistent with the national strategy for combating the financing of terrorism and related forms of illicit finance developed under section #bfa of the ,countering ,russian ,influence in ,europe and ,eurasia ,act of #bjag 7,public ,law #aae-dd2 #aca ,stat4 #icd74 7,d7 ,rulemaking ,not later than #abj days after the establishment of the priorities under subparagraph 7,a71 the ,secretary of the ,treasury acting through the ,office of ,terrorism and ,financial ,intelligence1 in consultation with the ,federal functional regulators 7as defined in section #eji of the ,gramm-,leach-,bliley ,act 7#ab ,u4,s4,c4 #fhji771 and relevant ,state financial regulators1 shall issue regulations to carry out this paragraph4 7,e7 ,supervision and examination ,the review by a financial institution of the priorities established under subparagraph 7,a7 and the incorporation of those priorities1 as appropriate1 into the risk-based programs established by a financial institution to meet obligations under this subchapter1 the ,,usa ,,patriot ,act 7,public ,law #ajg-ef2 #aae ,stat4 #bgb71 and other anti-money-laundering and counter-terrorist-financing laws and regulations shall be included as a measure on which a financial institution is supervised and examined for compliance with those obligations4 4 7c7 ,financial ,crimes ,enforcement ,network ,section #caj7;b77#b7 of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7,k7 ,promulgate regulations under section #ecah7;h77#d77;,d71 to implement the government-wide anti-money-laundering and counter-terrorist-financing examination and supervision priorities established by the ,secretary of the ,treasury under section #ecah7;h77#d77;,a74 7,l7 ,communicate regularly with financial institutions and ,federal functional regulators that examine financial institutions for compliance with subchapter ,,ii of chapter #ec and regulations issued thereunder and law enforcement authorities to explain the ,government's anti-money-laundering and counter-terrorist-financing exam and supervision priorities4 7,m7 ,give and receive feedback to and from financial institutions and ,state bank supervisors regarding the matters addressed in subchapter ,,ii of chapter #ec and regulations issued thereunder4 7,n7 ,maintain a money laundering and terrorist financing investigations team comprised of financial experts capable of identifying1 tracking1 and tracing financial crime networks and identifying emerging threats to conduct and support ,federal civil and criminal investigations4 7,o7 ,maintain an emerging technology team comprised of technology experts to encourage the development of and identify emerging technologies that can assist the ,united ,states ,government or financial institutions counter money laundering and terrorist financing4 4 #ajb4 ,fin,c,e,n compensation ,section #caj of title #ca1 ,united ,states ,code1 is amended-- 7#a7 by redesignating subsection 7d7 as subsection 7h72 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 ,subcommittee on ,innovation2 investigator research hub 7a7 ,subcommittee on ,innovation ,section #aefd of the ,annunzio-,wylie ,anti-,money ,laundering ,act 7#ca ,u4,s4,c4 #ecaa note7 is amended by adding at the end the following3 7d7 ,subcommittee on innovation 7#a7 ,in general ,there shall be within the ,bank ,secrecy ,act ,advisory ,group a subcommittee to be known as the ,subcommittee on ,innovation to-- 7,a7 advise the ,secretary of the ,treasury regarding means by which the ,department of the ,treasury1 ,fin,c,e,n1 and the ,federal functional regulators can most effectively encourage and support technological innovation in the area of anti-money laundering2 and 7,b7 reduce as much as is possible obstacles to innovation that may arise from existing regulations1 guidance1 and examination practices related to compliance of financial institutions with the ,bank ,secrecy ,act4 7#b7 ,membership 7,a7 ,in general ,the subcommittee established under paragraph 7#a7 shall consist of the representatives of the heads of the ,federal functional regulators1 a representative cross-section of financial institutions subject to the ,bank ,secrecy ,act1 law enforcement1 and ,fin,c,e,n4 7,b7 ,requirements ,each agency representative described in subparagraph 7,a7 shall be an individual who has demonstrated knowledge and competence concerning the application of the ,bank ,secrecy ,act4 4 7b7 ,investigator research hub ,section #caj of title #ca1 ,united ,states ,code1 as amended by section #ajb of this ,act1 is amended by adding after subsection 7d7 the following3 7e7 ,investigative experts 7#a7 ,in general ,fin,c,e,n shall hire and maintain a team of financial experts capable of identifying1 tracking1 and tracing money laundering and terrorist-financing networks in order to conduct and support civil and criminal anti-money-laundering and combating-the-financing-of-terrorism investigations conducted by the ,united ,states ,government1 except that the ,inspector ,general of the ,department of the ,treasury shall be responsible for hiring and maintaining those experts with respect to audits and inspections of the access and use of data described in subchapter ,,ii of chapter #ec4 7#b7 ,investigative resource hub ,fin,c,e,n shall1 upon a reasonable request from a ,united ,states ,government agency1 require financial experts to1 in collaboration with the requesting agency1 investigate the potential anti-money-laundering and countering-the-financing-of-terrorism activity that prompted the request4 7#c7 ,staffing ,fin,c,e,n shall hire or retain full-time employees1 including trained investigative personnel accorded criminal authority and experienced with subchapter ,,ii of chapter #ec to perform the functions contemplated by this subsection1 except as provided in paragraph 7#a74 4 #ajd4 ,establishment of ,fin,c,e,n financial institution liaison ,section #caj of title #ca1 ,united ,states ,code1 as amended by sections #ajb and #ajc of this ,act1 is amended by adding after subsection 7e7 the following3 7f7 ,office of the ,financial ,institution ,liaison established ,there is established within ,fin,c,e,n the ,office of the ,financial ,institution ,liaison 7in this subsection referred to as the ,office74 7#a7 ,in general ,the head of the ,office shall be the ,liaison1 who shall-- 7,a7 report directly to the ,director2 and 7,b7 be appointed by the ,director1 from among individuals having experience or familiarity with anti-money-laundering-program examinations1 supervision and enforcement1 and prior employment with financial institutions handling such matters4 7#b7 ,compensation ,the annual rate of pay for the ,liaison shall be equal to the highest rate of annual pay for other senior executives who report to the ,director4 7#c7 ,staff of office ,the ,liaison1 with the concurrence of the ,director1 may retain or employ counsel1 research staff1 and service staff1 as the ,liaison deems necessary to carry out the functions1 powers1 and duties of the ,office4 7#d7 ,functions of the liaison 7,a7 ,in general ,the ,liaison shall-- 7i7 receive feedback from financial institutions and bank examiners regarding their examinations under the ,bank ,secrecy ,act and communicate that feedback to ,fin,c,e,n1 the ,federal functional regulators1 and ,state bank supervisors2 7ii7 help promote coordination and consistency of supervisory guidance from ,fin,c,e,n1 the ,federal functional regulators1 and ,state bank supervisors regarding the ,bank ,secrecy ,act2 7iii7 act as a liaison between financial institutions and their ,federal functional regulators and ,state bank supervisors with respect to matters involving the ,bank ,secrecy ,act and regulations issued thereunder2 7iv7 establish safeguards to maintain the confidentiality of communications between the persons described in subparagraph 7,b7 and the ,liaison2 7v7 analyze the potential impact on financial institutions of proposed regulations of ,fin,c,e,n2 and 7vi7 to the extent practicable1 propose to ,fin,c,e,n changes in the regulations1 guidance1 or orders of ,fin,c,e,n and to ,congress any legislative or administrative changes that may be appropriate to mitigate problems identified under this paragraph4 7,b7 ,rule of construction ,nothing in this paragraph may be construed to permit the ,liaison to have authority over supervision1 examination1 or enforcement processes4 7#e7 ,access to documents ,fin,c,e,n shall1 to the extent practicable and consistent with appropriate safeguards for sensitive enforcement-related1 pre-decisional1 or deliberative information1 ensure that the ,liaison has full access to the documents of ,fin,c,e,n1 as necessary to carry out the functions of the ,office4 7#f7 ,annual reports 7,a7 ,in general ,not later than ,june #cj of each year after #bjai1 the ,liaison shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report on the objectives of the ,liaison for the following fiscal year and the activities of the ,liaison during the immediately preceding fiscal year4 7,b7 ,contents ,each report required under subparagraph 7,a7 shall include-- 7i7 appropriate statistical information and full and substantive analysis2 7ii7 information on steps that the ,liaison has taken during the reporting period to address feedback received by financial institutions and bank examination personnel related to examinations under the ,bank ,secrecy ,act2 7iii7 recommendations for such administrative and legislative actions as may be appropriate to resolve problems encountered by financial institutions or bank examination personnel2 and 7iv7 any other information1 as determined appropriate by the ,liaison4 7,c7 ,sensitive information ,notwithstanding subparagraph 7,d71 ,fin,c,e,n shall review the report listed in subparagraph 7,a7 to ensure the report does not disclose sensitive information4 7,d7 ,independence 7i7 ,in general ,each report required under this subsection shall be provided directly to the ,committees listed in subparagraph 7,a7 without any prior review or comment from ,fin,c,e,n1 the ,director1 any ,federal functional regulator1 any ,state bank supervisor1 or the ,office of ,management and ,budget4 7ii7 ,rule of construction ,nothing in clause 7i7 may be construed to preclude ,fin,c,e,n or any other department or agency from reviewing a report required under this subsection for the sole purpose of protecting-- 7,i7 sensitive information obtained by a law enforcement agency2 and 7,,ii7 classified information4 7,e7 ,classified information ,no report required under subparagraph 7,a7 may contain classified information4 4 #aje4 ,interagency ,,aml-,,cft personnel rotation program 7a7 ,purpose ,the purpose of this section is to increase the efficiency and effectiveness of the ,federal ,government by fostering greater interagency experience among ,federal ,government personnel on anti-money laundering and counter-terrorist financing matters4 7b7 ,definition ,in this section1 the term ,,aml-,,cft ,interagency ,community of ,interest means a set of positions in the ,federal ,government that1 as designated by the ,secretary1 the heads of the ,federal functional regulators1 the ,attorney ,general1 the ,director of the ,federal ,bureau of ,investigation1 the ,secretary of ,homeland ,security1 the ,director of ,national ,intelligence1 the ,secretary of ,defense1 and the heads of such other agencies as the ,secretary determines to be appropriate-- 7#a7 spans multiple agencies of the ,federal ,government2 7#b7 has significant responsibility for substantive1 functional1 or regional subject areas related to combating money laundering or financing of terrorism and would benefit from an integrated approach or activities across multiple agencies2 and 7#c7 includes positions within ,fin,c,e,n1 the ,department of the ,treasury1 the ,department of ,justice1 the ,federal ,bureau of ,investigation1 the ,department of ,homeland ,security1 the ,department of ,defense1 and1 if agreed to by the heads of such agencies1 positions within any ,federal functional regulator4 7c7 ,program established 7#a7 ,in general ,not later than #bgj days after the date of the enactment of this ,act1 the ,secretary and representatives of the ,federal functional regulators1 the ,department of ,justice1 the ,federal ,bureau of ,investigation1 the ,department of ,homeland ,security1 the ,department of ,defense1 and such other agencies as the ,secretary determines to be appropriate1 shall develop and issue an ,,aml-,,cft personnel strategy providing policies1 processes1 and procedures for a program enabling the interagency rotation of personnel among positions within the ,,aml-,,cft ,interagency ,community of ,interest4 7#b7 ,requirements ,the strategy required by paragraph 7#a7 shall1 at a minimum-- 7,a7 identify a specific ,,aml-,,cft ,interagency ,community of ,interest for the purpose of carrying out the program2 7,b7 designate agencies to be included or excluded from the program2 7,c7 define categories of positions to be covered by the program2 7,d7 establish processes by which the heads of relevant agencies may identify-- 7i7 positions within an ,,aml-,,cft ,interagency ,community of ,interest that are available for rotation under the program2 and 7ii7 individual employees who are available to participate in rotational assignments under the program2 and 7,e7 establish procedures for the program1 including-- 7i7 any minimum or maximum periods of service for participation in the program2 7ii7 any training and educational requirements associated with participation in the program2 7iii7 any prerequisites or requirements for participation in the program2 and 7iv7 appropriate performance measures1 reporting requirements1 and other accountability devices for the evaluation of the program4 7d7 ,program requirements ,the policies1 processes1 and procedures established pursuant to subsection 7c7 shall1 at a minimum1 provide that-- 7#a7 during each of the first #d fiscal years after the fiscal year in which this ,act is enacted-- 7,a7 the interagency rotation program shall be carried out in at least #d agencies participating in the ,,aml-,,cft ,interagency ,community of ,interest2 and 7,b7 not fewer than #bj employees in the ,federal ,government shall be assigned to participate in the interagency personnel rotation program2 7#b7 the participation of an employee in the interagency rotation program shall require the consent of the head of the agency and shall be voluntary on the part of the employee2 7#c7 employees selected to perform interagency rotational service are selected in a fully open and competitive manner that is consistent with the merit system principles set forth in paragraphs 7#a7 and 7#b7 of section #bcja7;b7 of title #e1 ,united ,states ,code1 unless the ,,aml-,,cft ,interagency ,community of ,interest position is otherwise exempt under another provision of law2 7#d7 an employee performing service in a position in another agency pursuant to the program established under this section shall be entitled to return1 within a reasonable period of time after the end of the period of service1 to the position held by the employee1 or a corresponding or higher position1 in the employing agency of the employee2 7#e7 an employee performing interagency rotational service shall have all the rights that would be available to the employee if the employee were detailed or assigned under a provision of law other than this section from the agency employing the employee to the agency in which the position in which the employee is serving is located2 and 7#f7 an employee participating in the program shall receive performance evaluations from officials of the employing agency of the employee that are based on input from the supervisors of the employee during the service of the employee in the program that are-- 7,a7 based primarily on the contribution of the employee to the work of the agency in which the employee performed the service2 and 7,b7 provided the same weight in the receipt of promotions and other rewards by the employee from the employing agency as performance evaluations for service in the employing agency4 7e7 ,selection of individuals ,to fill senior positions ,the head of each agency participating in the program established pursuant to subsection 7c7 shall ensure that1 in selecting individuals to fill senior positions within the ,,aml-,,cft ,interagency ,community of ,interest1 the agency gives a strong preference to individuals who have performed interagency rotational service within the ,,aml-,,cft ,interagency ,community of ,interest pursuant to such program4 #ajf4 ,subcommittee on ,privacy and ,civil ,liberties ,section #aefd of the ,annunzio-,wylie ,anti-,money ,laundering ,act 7#ca ,u4,s4,c4 #ecaa note71 as amended by section #ajc of this ,act1 is amended by adding at the end the following3 7e7 ,subcommittee on ,privacy and ,civil ,liberties 7#a7 ,in general ,there shall be within the ,bank ,secrecy ,act ,advisory ,group a subcommittee to be known as the ,subcommittee on ,privacy and ,civil ,liberties1 to advise the ,secretary of the ,treasury regarding the civil liberties and privacy implications of regulations1 guidance1 information sharing programs1 and the examination for compliance with and enforcement of the provisions of the ,bank ,secrecy ,act4 7#b7 ,membership 7,a7 ,in general ,the subcommittee established under paragraph 7#a7 shall consist of the representatives of the heads of the ,federal functional regulators1 a representative cross-section of financial institutions subject to the ,bank ,secrecy ,act1 law enforcement1 and ,fin,c,e,n4 7,b7 ,requirements ,each agency representative described in subparagraph 7,a7 shall be an individual who has demonstrated knowledge and competence concerning the application of the ,bank ,secrecy ,act and familiarity with and expertise in applicable privacy laws4 7f7 ,definitions ,in this section3 7#a7 ,bank ,secrecy ,act the term ,bank ,secrecy ,act has the meaning given the term in section #c of the ,,illicit ,,cash ,act4 7#b7 ,federal functional regulator ,the term ,federal functional regulator has the meaning given the term in section #eji of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fhji74 7#c7 ,fin,c,e,n ,the term ,fin,c,e,n means the ,financial ,crimes ,enforcement ,network of the ,department of the ,treasury4 7#d7 ,financial institution ,the term financial institution has the meaning given the term in section #ecab of title #ca1 ,united ,states ,code4 4 #ajg4 ,international coordination ,the ,secretary shall work with the foreign counterparts of the ,secretary1 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 #ajh4 ,strengthening ,fin,c,e,n 7a7 ,findings ,congress finds the following3 7#a7 ,the mission of ,fin,c,e,n is to safeguard the financial system from illicit use1 combat money laundering1 and promote national security through the collection1 analysis1 and dissemination of financial intelligence and strategic use of financial authorities4 7#b7 ,in its mission to safeguard the financial system from the abuses of financial crime1 including terrorist financing1 money laundering1 and other illicit activity1 the ,united ,states should prioritize working with partners in ,federal1 ,state1 local1 ,tribal1 and foreign law enforcement authorities4 7#c7 ,the ,federal ,bureau of ,investigation has stated that1 since the terror attacks on ,september #aa1 #bjja1 ,the threat landscape has expanded considerably1 though it is important to note that the more traditional threat posed by al ,qaeda and its affiliates is still present and active4 ,the threat of domestic terrorism also remains persistent overall1 with actors crossing the line from ,first ,amendment protected rights to committing crimes to further their political agenda44 7#d7 ,although the use and trading of virtual currencies are legal practices1 some terrorists and criminals1 including international criminal organizations1 seek to exploit vulnerabilities in the global financial system and are increasingly using emerging payment methods such as virtual currencies to move illicit funds4 7#e7 ,in carrying out its mission1 ,fin,c,e,n should prioritize all forms of terrorism and emerging methods of terrorism and illicit finance4 7b7 ,strengthening ,fin,c,e,n ,section #caj7;b77#b7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in subparagraphs 7,c71 7,e71 and 7,f71 by inserting ,tribal1 after local1 each place the term appears2 and 7#b7 in subparagraph 7,c77vi71 by striking international4 ,,ii ,improving ,,aml-,,cft communication1 oversight1 and processes #bja4 ,annual reporting requirements 7a7 ,annual report ,not later than #a year after the date of enactment of this ,act1 and annually thereafter1 the ,attorney ,general1 in consultation with ,federal law enforcement agencies and the ,director of ,national ,intelligence1 shall1 to the extent practicable at the discretion of the ,attorney ,general1 provide to the ,secretary statistics1 metrics1 and other information on the use of data derived from financial institutions reporting under this title1 including-- 7#a7 the frequency with which such data contains actionable information that leads to further law enforcement procedures1 including the use of a subpoena1 warrant1 or other legal process1 or to actions taken by intelligence1 defense1 or homeland security agencies2 7#b7 calculations of the time between when data is reported by a financial institution and when it is used by law enforcement1 intelligence1 defense1 or homeland security agencies1 whether through the use of a subpoena1 warrant or other legal process1 or actions2 7#c7 the value of the transactions associated with such data1 including whether the suspicious accounts were held by legal entities or natural persons1 and whether there are trends and patterns in cross-border transactions to certain countries2 7#d7 the number of legal and natural persons identified by such data2 7#e7 information on the extent to which arrests1 indictments1 convictions1 or criminal pleas1 civil enforcement or forfeiture actions1 or actions by intelligence1 defense1 or homeland security agencies result from the use of such data2 and 7#f7 data on the investigations carried out by ,state and ,federal authorities4 7b7 ,quinquennial report ,every #e years after the date of enactment of this ,act1 the report described in subsection 7a7 shall include a section describing the use of data derived from financial institution reporting under this subchapter over the previous #e years1 including describing long-term trends and providing long-term statistics1 metrics1 and other information4 7c7 ,trends1 patterns1 and threats ,the report described in subsection 7a7 and the section described in subsection 7b7 shall contain a description of retrospective trends and emerging patterns and threats in money laundering and terrorist financing1 including national and regional trends1 patterns1 and threats relevant to such classes of financial institutions that the ,attorney ,general determines appropriate4 7d7 ,use of report information ,the ,secretary shall use the information reported under subsections 7a71 7b71 and 7c7-- 7#a7 to help assess the usefulness of ,bank ,secrecy ,act reporting to criminal and civil law enforcement and to intelligence1 defense1 and homeland security agencies2 7#b7 to enhance feedback and communications with financial institutions and other entities subject to ,bank ,secrecy ,act requirements1 including through providing more detail in the reports produced under section #cad7;d7 of the ,,usa ,,patriot ,act 7#ca ,u4,s4,c4 #ecaa note72 7#c7 to assist ,fin,c,e,n in considering revisions to the reporting requirements promulgated under section #cad7;d7 of the ,,usa ,,patriot ,act 7#ca ,u4,s4,c4 #ecaa note72 and 7#d7 for any other purpose the ,secretary determines is appropriate4 #bjb4 ,law enforcement feedback on suspicious activity reports 7a7 ,feedback ,the staff of ,fin,c,e,n shall1 to the extent practicable1 periodically solicit feedback from individuals designated under section #ecah7;h77#a7 of title #ca1 ,united ,states ,code1 from a variety of financial institutions representing a cross-section of the reporting industry to review the suspicious activity reports filed by the financial institutions and discuss trends in suspicious activity observed by ,fin,c,e,n4 7#a7 ,feedback required ,the staff of ,fin,c,e,n shall disclose to the persons designated under section #ecah7;h77#a7 of title #ca1 ,united ,states ,code1 what actions have been taken1 if any1 by ,federal or ,state criminal or civil law enforcement or by defense or homeland security agencies with respect to the suspicious activity reports filed by the financial institution during the previous period4 7#b7 ,exception for ongoing investigations ,fin,c,e,n shall not be required to disclose to the financial institution any information under subsection 7a77#a7 that could jeopardize an ongoing investigation or national security4 7#c7 ,maintenance of statistics ,fin,c,e,n shall keep records of all such actions taken under paragraph 7#a7 to assist with the production of the reports described in section #bja and for other purposes4 7b7 ,coordination with ,federal functional regulators and ,state bank supervisors ,any meeting described in subsection 7a7 shall be conducted in the presence of the ,federal functional regulators or the ,state bank supervisor of the financial institution and1 if applicable1 during the regularly scheduled examination of the financial institution by the ,federal functional regulator or ,state bank supervisor4 7c7 ,coordination with department of justice ,the information disclosed by ,fin,c,e,n under subsection 7a7 shall include information from the ,department of ,justice regarding its review and use of suspicious activity reports filed by the financial institutions during the previous period and any trends in suspicious activity observed by the ,department of ,justice1 and such information shall include information specifically relevant to reports filed by such financial institution in the previous period and other information tailored to such financial institution4 #bjc4 ,streamlining requirements for currency transaction reports and suspicious activity reports 7a7 ,review ,the ,secretary1 in consultation with the ,attorney ,general1 ,federal law enforcement agencies1 the ,director of ,national ,intelligence1 the ,secretary of ,defense1 the ,secretary of ,homeland ,security1 the ,federal functional regulators1 ,state bank supervisors1 and other relevant stakeholders1 shall undertake a formal review of the current financial institution reporting requirements1 including the processes used to submit reports1 under the ,bank ,secrecy ,act1 regulations implementing that ,act1 and related guidance1 and make changes to them to reduce unnecessarily burdensome regulatory requirements and ensure that the information provided is highly useful to law enforcement1 intelligence1 or national security matters1 as set forth in 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 circumstances under which a financial institution determines whether to file a continuing suspicious activity report1 including insider abuse1 or the processes followed by a financial institution in determining whether to file a continuing suspicious activity report1 or both1 should be adjusted2 7#b7 whether different thresholds should apply to different categories of activities2 7#c7 the fields designated as critical on the suspicious activity report form and whether the number or nature of the fields should be adjusted2 7#d7 the categories1 types1 and characteristics of suspicious activity reports and currency transaction reports that are of the greatest value to1 and that best support1 investigative priorities of law enforcement and national security personnel2 7#e7 the increased use or expansion of exemption provisions to reduce currency transaction reports that are of little or no value to law enforcement efforts2 7#f7 the most appropriate ways to promote financial inclusion and address the adverse consequences of financial institutions de-risking entire categories of high-risk relationships1 including charities1 embassy accounts1 and money service businesses1 as defined in section #ajaj4ajj7;ff7 of title #ca1 ,code of ,federal ,regulations1 and certain groups of correspondent banks2 7#g7 the current financial institution reporting requirements under the ,bank ,secrecy ,act and regulations and guidance implementing that ,act2 7#h7 whether the process for the electronic submission of reports could be improved for both financial institutions and law enforcement1 including by allowing greater integration between financial institution systems and the electronic filing system to allow for automatic population of report fields and the automatic submission of transaction data for suspicious transactions2 7#i7 the appropriate confidentiality of personal information2 7#aj7 how to improve the cross-referencing of individuals or entities operating at multiple financial institutions and across international borders2 and 7#aa7 any other item the ,secretary determines is appropriate4 7c7 ,public comment ,the ,secretary shall solicit public comment as part of the review contemplated in subsection 7a74 7d7 ,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 law enforcement1 shall submit to ,congress a report that contains all findings and determinations made in carrying out the review required under subsection 7a7 and propose rulemakings to implement their findings4 #bjd4 ,currency transaction report and suspicious activity report thresholds review 7a7 ,review of thresholds for certain currency transaction and suspicious activity reports ,the ,secretary1 in consultation with the ,attorney ,general and the ,director of ,national ,intelligence1 the ,secretary of ,defense1 and the ,secretary of ,homeland ,security1 shall study and determine whether the dollar thresholds1 including aggregate thresholds1 contained in sections #ecac1 #ecca1 and #ecah7;g7 of title #ca1 ,united ,states ,code1 including regulations issued thereunder1 should be adjusted4 7b7 ,considerations ,in making the determinations described in subsection 7a71 the ,secretary and the ,attorney ,general shall consider-- 7#a7 the effects on law enforcement1 intelligence1 defense1 and homeland security1 from adjusting the thresholds2 7#b7 the costs likely to be incurred or saved by financial institutions2 7#c7 the conformance of the ,united ,states with international norms and standards to counter money laundering and the financing of terrorism2 and 7#d7 any other factor the ,secretary1 ,director of ,national ,intelligence1 and the ,attorney ,general considers relevant4 7c7 ,public comment ,the ,secretary shall solicit public comment as part of the review contemplated in subsection 7a74 7d7 ,report and rulemakings ,not later than the end of the #a-year period beginning on the date of enactment of this ,act1 the ,secretary1 in consultation with the ,attorney ,general1 the intelligence community1 the ,secretary of ,defense1 and the ,secretary of ,homeland ,security1 shall publish a report of the findings from the review described in subsection 7a7 and recommend rulemakings to implement the findings4 #bje4 ,review of regulations and guidance 7a7 ,in general ,the ,secretary and the ,federal functional regulators1 in consultation with ,federal financial regulators1 the ,federal ,financial ,institutions ,examination ,council1 the ,attorney ,general1 ,federal law enforcement agencies1 the ,director of ,national ,intelligence1 the ,secretary of ,defense1 the ,secretary of ,homeland ,security1 and the ,commissioner of the ,internal ,revenue ,service1 shall each undertake a formal review of the regulations implementing the ,bank ,secrecy ,act1 and guidance related to that ,act1 to identify those regulations and guidance that may be outdated1 redundant1 unnecessarily burdensome1 or otherwise do not promote a risk-based anti-money-laundering compliance and countering-the-financing-of-terrorism regime for financial institutions1 or that do not conform with the commitments of the ,united ,states to meet international standards to combat money laundering1 financing of terrorism1 or tax evasion1 and make appropriate changes to those regulations and guidance4 7b7 ,public comment ,the ,secretary shall solicit public comment as part of the review required under subsection 7a74 7c7 ,report ,not later than the end of the #a-year period beginning on the date of the enactment of this ,act1 the ,secretary1 the ,federal functional regulators1 the ,federal ,financial ,institutions ,examination ,council1 and the ,internal ,revenue ,service shall submit to ,congress one or more reports that contain all findings and determinations made in carrying out the review required under subsection 7a74 #bjf4 ,penalty coordination 7a7 ,coordination on penalties ,prior to any ,federal functional regulator1 ,fin,c,e,n1 or the ,department of ,justice1 including any organizational unit thereof1 issuing a fine or civil money penalty1 with respect to an entity to address any actual or alleged violation of any provision of the ,bank ,secrecy ,act or section #h7s7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7s77 or any unsafe or unsound practice that resulted in any such actual or alleged violation1 such ,federal department or agency shall endeavor to coordinate its penalty with all relevant ,federal departments and agencies and ,state law enforcement and financial regulators contemplating a penalty with respect to the same or similar conduct and attempt to develop a comprehensive or coordinated penalty or set of penalties to avoid duplicative fines1 penalties1 and other orders or actions4 7b7 ,exception ,subsection 7a7 shall not apply if-- 7#a7 a ,federal or ,state financial regulator determines that complying with subsection 7a7 is impractical for safety or soundness reasons2 or 7#b7 a ,federal law enforcement or a national security agency determines that complying with subsection 7a7 is impractical for ,federal law enforcement or national security reasons or for purposes related to the administration of the ,bank ,secrecy ,act4 7c7 ,rule of construction ,nothing in this section shall be construed as limiting the amount of a fine or the type of penalty that may be issued by any ,federal or ,state entity with authority to issue a fine or penalty4 7d7 ,no rights ,nothing in this section provides persons with any rights or privileges1 including a private right of action or an affirmative defense1 and no determination or failure to make a determination by any ,federal entity or officer under this section shall be reviewable by a court of law4 #bjg4 ,cooperation with law enforcement 7a7 ,safe harbor with respect to keep open directives 7#a7 ,in general 7,a7 ,amendment to title #ca ,subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 #eccc4 ,safe harbor with respect to keep open directives 7a7 ,in general ,with respect to a customer account or customer transaction of a financial institution1 if a ,federal1 ,state1 ,tribal1 or local law enforcement agency requests1 in writing1 that the financial institution keep that account or transaction open-- 7#a7 the financial institution shall not be liable under this subchapter for maintaining that account or transaction consistent with the parameters of the request2 and 7#b7 no ,federal or ,state department or agency may take any adverse supervisory action under this subchapter with respect to the financial institution for maintaining that account or transaction consistent with the parameters of the request4 7b7 ,rule of construction ,nothing in this section may be construed-- 7#a7 to prevent a ,federal or ,state department or agency from verifying the validity of a written request described in subsection 7a7 with the ,federal1 ,state1 ,tribal1 or local law enforcement agency making that written request2 or 7#b7 to relieve a financial institution from complying with any reporting requirements1 including the reporting of suspicious transactions under section #ecah7;g74 7c7 ,letter termination date ,for the purposes of this section1 any written request described in subsection 7a7 shall include a termination date after which that request shall no longer apply4 4 7,b7 ,amendment to ,public ,law #ia-ejh ,chapter #b of title ,i of ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et seq47 is amended by adding at the end the following3 #acj4 ,safe harbor with respect to keep open directives 7a7 ,definition ,in this section1 the term financial institution has the meaning given the term in section #abc7;b74 7b7 ,safe harbor ,with respect to a customer account or customer transaction of a financial institution1 if a ,federal1 ,state1 ,tribal1 or local law enforcement agency requests1 in writing1 the financial institution to keep that account or transaction open-- 7#a7 the financial institution shall not be liable under this chapter for maintaining that account or transaction consistent with the parameters of the request2 and 7#b7 no ,federal or ,state department or agency may take any adverse supervisory action under this chapter with respect to the financial institution for maintaining that account or transaction consistent with the parameters of the request4 7c7 ,rule of construction ,nothing in this section may be construed-- 7#a7 as preventing a ,federal or ,state department or agency from verifying the validity of a written request described in subsection 7b7 with the ,federal1 ,state1 ,tribal1 or local law enforcement agency making that written request2 or 7#b7 to relieve a financial institution from complying with any reporting requirements1 including the reporting of suspicious transactions under section #ecah7;g7 of title #ca1 ,united ,states ,code4 7d7 ,letter termination date ,for the purposes of this section1 any written request described in subsection 7b7 shall include a termination date after which that request shall no longer apply4 4 7#b7 ,clerical amendments 7,a7 ,title #ca ,the table of contents for chapter #ec of title #ca1 ,united ,states ,code1 is amended by inserting after the item relating to section #eccb the following3 #eccc4 ,safe harbor with respect to keep open directives4 4 7,b7 ,public ,law #ia-ejh ,the table of contents for chapter #b of title ,i of ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et seq47 is amended by adding at the end the following3 #acj4 ,safe harbor with respect to keep open directives4 4 7b7 ,determination of ,budgetary ,effects ,the budgetary effects of this section1 for the purpose of complying with the ,statutory ,pay-,as-,you-,go ,act of #bjaj1 shall be determined by reference to the latest statement titled ,budgetary ,effects of ,,paygo ,legislation for this ,act1 submitted for printing in the ,congressional ,record by the ,chairman of the ,house ,budget ,committee1 provided that such statement has been submitted prior to the vote on passage4 #bjh4 ,additional damages for repeat ,bank ,secrecy ,act violators ,section #ecba of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7f7 ,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 ,act 7#ab ,u4,s4,c4 #ahbi;b71 or section #abc of ,public ,law #ia-ejh1 the ,secretary of the ,treasury 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 #bji4 ,encouraging information sharing and public-private partnerships 7a7 ,in general ,fin,c,e,n shall convene a supervisory team of relevant ,federal agencies1 private sector experts in banking1 national security and law enforcement1 and other stakeholders as ,fin,c,e,n deems appropriate to examine strategies to increase public-private sector cooperation for purposes of countering proliferation finance and sanctions evasion4 7b7 ,meetings ,the supervisory team shall meet periodically to advise on strategies to combat proliferation financing risk4 ,,iii ,modernization of ,,aml_/,,cft system #cja4 ,approved systems for identifying suspicious activities ,section #ecah7;g7 of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7#e7 ,considerations in imposing reporting requirements 7,a7 ,in general ,in imposing any requirement to report any suspicious transaction under this subsection1 the ,secretary of the ,treasury1 in consultation with appropriate representatives of ,state bank supervisors and the ,federal functional regulators 7as defined in #eji of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fhji771 shall address1 consider1 and include-- 7i7 the national priorities established by the ,secretary2 7ii7 whether the reporting is likely to have a high degree of usefulness to the ,federal law enforcement community1 national security1 and the intelligence community in combating financial crime1 including the financing of terrorism2 and 7iii7 the means by or form in which the ,secretary shall receive such reporting1 including the burdens imposed by such means or form of reporting on persons required to provide such reporting1 the efficiency of the means by or form of reporting1 and the benefits derived by such means or form of reporting by the ,federal law enforcement community and the intelligence community in combating financial crime1 including the financing of terrorism4 7,b7 ,internal controls ,reports filed under this subsection shall be guided by the internal controls of the compliance program of a covered institution with respect to the ,bank ,secrecy ,act1 including the risk assessment processes of the covered institution that should include a consideration of priority areas as established by the ,secretary of the ,treasury pursuant to section #ecaa4 7,c7 ,examinations ,examinations of systems for identifying and reporting of suspicious activities shall consider1 among other things1 the quality of information provided under this section and the institution's consideration of priority areas as established by the ,secretary of the ,treasury pursuant to section #ecaa4 7,d7 ,bulk-form data and real-time reporting 7i7 ,requirement to establish system ,in considering the means by or form in which the ,secretary of the ,treasury shall receive reporting pursuant to subparagraph 7,a77iii7 the ,secretary of the ,treasury1 through the ,financial ,crimes ,enforcement ,network1 and in consultation with appropriate representatives of the ,state bank supervisors and ,federal functional regulators 7as defined in #eji of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fhji77 shall-- 7,i7 establish streamlined processes to permit the filing of non-complex categories of reports that-- 7aa7 reduce burdens imposed on persons required to report2 and 7bb7 do not diminish the usefulness of the reporting to ,federal law enforcement agencies and the intelligence community in combating financial crime1 including the financing of terrorism2 7,,ii7 subject to clause 7ii71 permit bulk data reporting for such categories of reports and establish the conditions under which bulk data reporting is permitted2 and 7,,iii7 establish additional systems and processes that allow for such reporting4 7ii7 ,standards ,the ,secretary of the ,treasury-- 7,i7 in carrying out clause 7i71 shall establish standards to ensure that bulk data reports relate to suspicious transactions relevant to potential violations of law or regulation2 and 7,,ii7 in establishing the standards under subclause 7,i71 may consider transactions designed to evade any regulation promulgated under this subchapter1 certain fund and asset transfers with no apparent economic1 business1 or lawful purpose1 and any other transaction that the ,secretary determines to be appropriate4 7iii7 ,rule of construction ,nothing in this subparagraph may be construed as precluding the ,secretary of the ,treasury from requiring reporting as provided for in subparagraphs 7,a7 and 7,b7 or notifying ,federal law enforcement with respect to any transaction that the ,secretary has determined directly implicates a national priority established by the ,secretary4 7#f7 ,,aml technology rulemaking ,the ,secretary of the ,treasury shall1 in consultation with appropriate representatives of ,state bank supervisors and ,federal functional regulators 7as defined in section #eji of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fhji771 promulgate regulations to-- 7,a7 specify an optional regime whereby a financial institution may submit for approval by the ,financial ,crimes ,enforcement ,network1 in consultation with the ,federal banking agencies1 a tailored comprehensive approach to monitoring transactions for the recordkeeping and reporting requirements established by this subchapter and other relevant laws2 7,b7 standards that such an optional regime must meet for approval1 with those standards having the primary goal of addressing anti-money-laundering-regime priorities and other significant ,bank ,secrecy ,act and anti-money-laundering risks identified in a particular financial institution's 7or association of financial institutions7 risk assessment2 7,c7 include in the standards described in subparagraph 7,b7-- 7i7 an emphasis on using innovative approaches for transaction monitoring such as machine learning rather than rules-based systems2 7ii7 requirements for testing1 audit1 parallel runs1 and ongoing quality assurance processes to ensure that these systems are working effectively1 including risk-based back-testing of the regime to facilitate calibration of relevant systems2 7iii7 requirements for appropriate data privacy and security2 and 7iv7 requirements for examination of these systems by the appropriate ,federal or ,state financial regulators2 and 7,d7 with respect to technology and processes designed to facilitate compliance with the ,bank ,secrecy ,act requirements that are not covered by subparagraph 7,a71 specify that financial institutions may not be required to test new technology and processes alongside legacy technology and processes1 known as parallel runs1 in all cases1 but instead-- 7i7 should develop a risk-based implementation and testing plan1 in consultation with ,state and ,federal financial regulators as appropriate1 that accounts for legal1 data privacy1 and security concerns that includes a reasonable testing timeline2 7ii7 should identify processes and procedures for replacing or terminating any legacy technology and process for any examinable technology or process2 and 7iii7 after adequately testing compliance technology1 may replace or terminate any legacy technology and processes for any examinable technology or process4 7#g7 ,rule of construction ,nothing in this subsection may be construed to require a financial institution to alter its risk-based approach to monitoring suspicious activities4 7#h7 ,definitions ,in this subsection3 7,a7 ,bank ,secrecy ,act ,the term ,bank ,secrecy ,act has the meaning given the term in section #c of the ,,illicit ,,cash ,act4 7,b7 ,state bank supervisor ,the term ,state bank supervisor has the meaning given the term in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 4 #cjb4 ,financial crimes tech symposium 7a7 ,purpose ,the purpose of this section is to-- 7#a7 promote greater international collaboration in the effort to prevent and detect financial crimes and suspicious activities2 and 7#b7 facilitate the investigation and adoption of new technologies aimed at preventing and detecting financial crimes and other illicit activities4 7b7 ,periodic meetings ,the ,secretary shall1 in coordination with the ,subcommittee on ,innovation established under subsection 7d7 of section #aefd of the ,annunzio-,wylie ,anti-,money ,laundering ,act1 as added by section #ajc of this ,act1 periodically1 but not less than once every #c years1 convene a global anti-money laundering and financial crime symposium focused on how new technology can be used to more effectively combat financial crimes and other illicit activities4 7c7 ,attendees ,attendees at the symposium convened under this section shall include domestic and international financial regulators1 senior executives from regulated firms1 technology providers1 law enforcement representatives1 start ups1 academic institutions1 and other representatives as the ,secretary determines are appropriate4 7d7 ,panels ,the ,secretary shall convene panels in order to review new technologies and permit attendees to demonstrate proof of concept4 7e7 ,implementation and reports ,the ,secretary shall to the extent practicable work to provide regulatory guidance regarding innovative technologies and practices presented at the symposium1 to the extent such technologies and practices further the goals of this section4 #cjc4 ,deidentified ,,aml information 7a7 ,amendment to the ,gramm-,leach-,bliley ,act ,title ,v of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fhja et seq47 is amended by inserting after section #eji 7#ae ,u4,s4,c4 #fhji7 the following3 #eji;,a4 ,deidentified ,,aml information 7a7 ,definitions ,in this section3 7#a7 ,cybersecurity purpose ,the term cybersecurity purpose has the meaning given the term in section #ajb of the ,cybersecurity ,information ,sharing ,act of #bjae 7#f ,u4,s4,c4 #aeja74 7#b7 ,deidentified information ,the term deidentified information means information obtained by a financial institution from which any information that may be used to identify a person has been removed and with respect to which there is no reasonable basis to believe that the information is nonpublic personal information4 7#c7 ,financial institution ,the term financial institution-- 7,a7 has the meaning given the term in section #eji2 and 7,b7 includes-- 7i7 a subsidiary1 affiliate1 or other entity within the corporate organizational structure of a financial institution2 7ii7 a person representing or otherwise acting as agent for a financial institution2 and 7iii7 a group or organization the membership of which is comprised entirely of financial institutions4 7#d7 ,exceptions ,the ,secretary of the ,treasury by rule shall establish exceptions to paragraph 7#b71 including setting minimum standards for information that is ineligible for consideration as deidentified information4 7b7 ,process ,a financial institution may determine that financial institution information is deidentified information only if-- 7#a7 a person with appropriate knowledge of and experience with generally accepted statistical and scientific principles and methods for rendering information not individually identifiable-- 7,a7 applying such principles and methods1 determines that the risk is very small that the information could be used1 alone or in combination with other reasonably available information1 by an anticipated recipient to identify a person who is a subject of the information2 and 7,b7 documents the methods and results of the analysis that justify such determination2 or 7#b7 7,a7 appropriate identifiers of the person or of relatives1 employers1 or household members of the person1 are removed2 and 7,b7 the financial institution does not have actual knowledge that the information could be used alone or in combination with other information to identify a person who is a subject of the information4 7c7 ,reidentification ,a financial institution may assign a code or other means of record identification to allow information deidentified under this section to be reidentified by the financial institution1 provided that-- 7#a7 the code or other means of record identification is not derived from or related to information about the person and is not otherwise capable of being translated so as to identify the person2 and 7#b7 the financial institution does not use or disclose the code or other means of record identification for any other purpose1 and does not disclose the mechanism for reidentification4 7d7 ,permissible use 7#a7 ,limited use of data ,deidentified information sent or received by a financial institution shall only be used-- 7,a7 to identify suspicious activity that may merit the filing of a suspicious activity report under section #ecah7;g7 of title #ca1 ,united ,states ,code2 7,b7 for the purpose stated in section #ecaa of title #ca1 ,united ,states ,code2 or 7,c7 for a cybersecurity purpose4 7#b7 ,no further communication ,a financial institution may not transmit or share any deidentified information except with-- 7,a7 a financial institution in accordance with this section2 7,b7 the ,secretary of the ,treasury2 7,c7 an agency or authority referenced in section #eje7;a7 in accordance with applicable law2 and 7,d7 a law enforcement agency4 7e7 ,enforcement ,the owner of an approved telecommunications system shall be a covered person for purposes of section #eje7;a77#h74 7f7 ,rulemaking ,no later than #a year after the date of enactment of this section1 the ,secretary of the ,treasury1 in consultation with the ,secretary of ,homeland ,security and each agency referenced in section #eje7;a71 shall issue regulations to carry out the amendments made by this section4 7g7 ,relation to suspicious activity reports ,nothing in this section shall be construed to modify1 limit1 alter1 or supersede section #ecah7;g7 of title #ca1 ,united ,states ,code1 or any regulation promulgated thereunder4 7h7 ,rule of construction 7#a7 ,in general ,compliance with the provisions of this section shall not constitute a violation of other provisions of this title4 7#b7 ,transmission1 receipt1 and sharing of information ,a financial institution that transmits1 receives1 or shares information under this section shall not be liable to any person under any law1 or regulation of any ,state or political subdivision thereof1 or under any contract or other legally enforceable agreement 7including any arbitration agreement71 for such disclosure or for any failure to provide notice of such disclosure1 or any other person identified in the disclosure1 except where such transmission1 receipt1 or sharing violates this section or regulations promulgated under this section4 4 #cjd4 ,no action letters ,section #caj of title #ca1 ,united ,states ,code1 as amended by sections #ajb1 #ajc1 and #ajd of this ,act1 is amended by adding at the end the following3 7g7 ,no-,action letters with respect to specific conduct 7#a7 ,in general ,the ,director and the ,federal functional regulators1 in consultation with ,state bank supervisors1 shall jointly promulgate regulations and guidance to establish a process for the issuance of a no-action letter by ,fin,c,e,n and the relevant ,federal functional regulators in response to an inquiry from a person described in paragraph 7#b7 concerning the application of the ,bank ,secrecy ,act1 the ,,usa ,,patriot ,act 7,public ,law #ajg-ef2 #aae ,stat4 #bgb71 section #h7s7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7s771 or any other anti-money-laundering or counter-terrorism financing law 7including regulations7 to specific conduct1 which shall include a statement as to whether ,fin,c,e,n or any relevant ,federal functional regulator intends to take an enforcement action against the person with respect to such conduct4 7#b7 ,persons covered ,a person described in this paragraph is-- 7,a7 any person involved in the specific conduct that is the subject of the no-action letter2 or 7,b7 any person involved in conduct that is indistinguishable in all material aspects from the specific conduct that is the subject of the no-action letter4 7#c7 ,reliance ,a no-action letter issued under paragraph 7#a7 shall not bind ,fin,c,e,n or any ,federal functional regulator if the person making the inquiry provided incomplete1 misleading or false information1 if subsequent changes are made to relevant statutes1 regulations1 or guidance1 or if a penalty was assessed or enforcement action taken before the date on which the no-action letter was issued4 7#d7 ,contents ,the regulations issued under paragraph 7#a7 shall contain a timeline for the process used to reach a final determination by ,fin,c,e,n and the relevant ,federal functional regulators in response to a request by a person for a no-action letter4 7h7 ,definitions ,in this section3 7#a7 ,bank ,secrecy ,act the term ,bank ,secrecy ,act has the meaning given the term in section #c of the ,,illicit ,,cash ,act4 7#b7 ,federal functional regulator ,the term ,federal functional regulator hast the meaning given the term in section #eji of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fhji74 7#c7 ,financial institution ,the term financial institution has the meaning given the term in section #ecab4 7#d7 ,state bank supervisor ,the term ,state bank supervisor has the meaning given the term in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 4 #cje4 ,,oecd 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 as amended by section #cja1 is amended by adding at the end the following3 7#f7 ,,oecd pilot program on sharing with foreign branches1 subsidiaries1 and affiliates 7,a7 ,in general ,not later than #ahj days after the date of enactment of this paragraph1 the ,secretary of the ,treasury shall issue rules1 subject to such controls and restrictions as the ,director of the ,financial ,crimes ,enforcement ,network determines appropriate1 establishing the pilot program described under subparagraph 7,b74 ,in prescribing such rules1 the ,secretary shall ensure that the sharing of information described under 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 any 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 subparagraph 7,c71 but only if such foreign branch1 subsidiary1 or affiliate is located in a jurisdiction that is a member of the ,organisation for ,economic ,co-operation and ,development2 7ii7 terminate on the date that is #e years after the date of enactment of this paragraph1 except that the ,secretary of the ,treasury 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 of the ,treasury 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 of the ,treasury 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 ,secretary has determined cannot reasonably protect the privacy and confidentiality of such information4 7,d7 ,implementation updates ,not later than #cfj days after the date on which rules are issued under subparagraph 7,a71 and annually thereafter for #c years1 the ,secretary of the ,treasury1 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 program1 or to include specific non-,organisation for ,economic ,co-operation and ,development jurisdictions in the program4 7#g7 ,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 7#h7 ,definition ,in this subsection1 the term affiliate means an entity that controls1 is controlled by1 or is under common control with another entity4 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 #a-year period beginning on the date of enactment of this ,act1 the ,secretary shall issue regulations to carry out the amendments made by this section4 #cjf4 ,foreign evidentiary requests 7a7 ,foreign evidentiary requests ,section #ecah7k77#c77;,a7 of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7iii7 ,use as evidence ,if required by a summons or subpoena referred to in clause 7i71 the foreign bank on which the summons or subpoena was served shall produce the records described in the summons or subpoena in a manner that would establish their authenticity and reliability under the ,federal ,rules of ,evidence4 7iv7 ,anti-tip-off ,any foreign bank upon which a summons or subpoena referred to in clause 7i7 has been served1 and any director1 officer1 employee1 or agent of such foreign bank1 shall not voluntarily disclose to a person not employed by the foreign bank the fact that it received a summons or subpoena or any of the information contained in that summons or subpoena4 4 7b7 ,foreign evidentiary requests ,section #ecah7k77#c7 of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 7,d7 ,court orders and contempt 7i7 ,court orders ,if the ,secretary of the ,treasury or the ,attorney ,general 7in each case1 in consultation with the other7 determines that a foreign bank has failed to comply with a summons or subpoena issued under subparagraph 7,a71 the ,secretary or the ,attorney ,general 7in each case1 in consultation with the other7 may initiate proceedings in a ,united ,states court seeking a court order to compel compliance with such summons or subpoena4 7ii7 ,contempt ,if the ,secretary of the ,treasury or the ,attorney ,general 7in each case1 in consultation with the other7 determines that a foreign bank has failed to comply with a court order described in clause 7i71 the ,secretary or the ,attorney ,general 7in each case1 in consultation with the other7 may petition the ,united ,states court that issued the court order to levy a civil or criminal contempt fine on the foreign bank4 4 #cjg4 ,updating whistleblower incentives and protection 7a7 ,whistleblower incentives and protection 7#a7 ,in general ,section #ecbc of title #ca1 ,united ,states ,code1 is amended to read as follows3 #ecbc4 ,whistleblower incentives and protections 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 the ,treasury or the ,department of ,justice under subchapters ,,ii and ,,iii of this title that results in monetary sanctions exceeding #a1jjj1jjj4 7#b7 ,fund ,the term ,fund means the ,anti-,money ,laundering and ,counter-,terrorism ,financing ,fund4 7#c7 ,monetary sanctions ,the term monetary sanctions1 when used with respect to any judicial or administrative action1 means any monies1 including penalties and interest1 ordered to be paid4 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 the ,treasury1 the ,department of ,justice1 or an appropriate regulator1 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 the ,treasury or the ,department of ,justice under subchapters ,,ii and ,,iii of this title1 means any judicial action brought by an entity that is based upon the original information provided by a whistleblower pursuant to subsection 7a7 that led to the successful enforcement of the ,treasury or ,department of ,justice action4 7#f7 ,whistleblower ,the term whistleblower means any individual who provides1 or #b or more individuals acting jointly who provide1 information relating to a violation of the laws under subchapters ,,ii and ,,iii of this title to the ,treasury1 in a manner established1 by rule or regulation1 by the ,treasury4 7b7 ,awards 7#a7 ,in general ,in any covered judicial action1 or related action1 the ,treasury1 under regulations prescribed by the ,treasury and subject to subsection 7c71 may pay an award or awards to #a or more whistleblowers who voluntarily provided original information to the ,treasury 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 ,payment of awards ,any amount paid under paragraph 7#a7 shall be paid from the ,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 ,treasury4 7,b7 ,criteria ,in determining the amount of an award made under subsection 7b71 the ,treasury-- 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 programmatic interest of the ,treasury in deterring violations of the laws under subchapters ,,ii and ,,iii of this title by making awards to whistleblowers who provide information that leads to the successful enforcement of such laws2 and 7,,iv7 such additional relevant factors as the ,treasury may establish by rule or regulation2 and 7ii7 shall not take into consideration the balance of the ,fund4 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 the ,treasury1 a member1 officer1 or employee of-- 7i7 an appropriate regulatory agency2 7ii7 the ,department of ,justice or the ,treasury2 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 or 7,c7 to any whistleblower who fails to submit information to the ,treasury in such form as the ,treasury may1 by rule1 require4 7d7 ,representation 7#a7 ,permitted representation ,any whistleblower who makes a claim for an award under subsection 7c7 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 the identity of the whistleblower and provide such other information as the ,treasury may require1 directly or through counsel for the whistleblower4 7e7 ,no contract necessary ,no contract with the ,treasury is necessary for any whistleblower to receive an award under subsection 7b71 unless otherwise required by the ,treasury by rule or regulation4 7f7 ,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 ,treasury4 ,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 ,treasury4 ,the court shall review the determination made by the ,treasury in accordance with section #gjf of title #e4 7g7 ,anti-,money ,laundering and ,counter-,terrorism ,financing ,fund 7#a7 ,fund established ,there is established in the ,treasury of the ,united ,states a fund to be known as the ,anti-,money ,laundering and ,counter-,terrorism ,financing ,fund4 7#b7 ,use of fund ,the ,fund shall be available to the ,treasury1 without further appropriation or fiscal year limitation1 for paying awards to whistleblowers as provided in subsection 7b74 7#c7 ,deposits and credits 7,a7 ,in general ,there shall be deposited into or credited to the ,fund an amount equal to any monetary sanction collected by the ,treasury or the ,department of ,justice in any judicial or administrative action for violations of the law under subchapters ,,ii and ,,iii of this title and all income from investments made under paragraph 7#d74 7,b7 ,additional amounts ,if the amounts deposited into or credited to the ,fund under subparagraph 7,a7 are not sufficient to satisfy an award made under subsection 7b71 there shall be deposited into or credited to the ,fund an amount equal to the unsatisfied portion of the award from any monetary sanction collected by the ,treasury or the ,department of ,justice in the covered judicial or administrative action on which the award is based4 7#d7 ,investments 7,a7 ,amounts in fund may be invested ,the ,secretary of the ,treasury may invest the portion of the ,fund that is not1 in the discretion of the ,secretary of the ,treasury1 required to meet the current needs of the ,fund4 7,b7 ,eligible investments ,investments shall be made by the ,secretary of the ,treasury in obligations of the ,united ,states or obligations that are guaranteed as to principal and interest by the ,united ,states1 with maturities suitable to the needs of the ,fund as determined by the ,treasury4 7,c7 ,interest and proceeds credited ,the interest on1 and the proceeds from the sale or redemption of1 any obligations held in the ,fund shall be credited to the ,fund4 7#e7 ,reports to congress ,not later than ,october #cj of each fiscal year1 the ,treasury shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report on-- 7,a7 the whistleblower award program established under this section1 including-- 7i7 a description of the number of awards granted2 and 7ii7 the types of cases in which awards were granted during the preceding fiscal year2 7,b7 the balance of the ,fund at the beginning of the preceding fiscal year2 7,c7 the amounts deposited into or credited to the ,fund during the preceding fiscal year2 7,d7 the amount of earnings on investments made under paragraph 7#d7 during the preceding fiscal year2 7,e7 the amount paid from the ,fund during the preceding fiscal year to whistleblowers pursuant to subsection 7b72 7,f7 the balance of the ,fund at the end of the preceding fiscal year2 and 7,g7 a complete set of audited financial statements1 including-- 7i7 a balance sheet2 7ii7 an income statement2 and 7iii7 a cash flow analysis4 7h7 ,confidentiality 7#a7 ,in general ,except as provided in paragraphs 7#b7 and 7#c71 the ,treasury and any officer or employee of the ,treasury shall not disclose any information1 including information provided by a whistleblower to the ,treasury1 which could reasonably be expected to reveal the identity of a whistleblower1 except in accordance with the provisions of section #eeb;a of title #e1 unless and until required to be disclosed to a defendant or respondent in connection with a public proceeding instituted by the ,treasury or any entity described in paragraph 7#c74 7#b7 ,exempted statute ,for purposes of section #eeb of title #e1 paragraph 7#a7 shall be considered a statute described in subsection 7b77#c77;,b7 of such section #eeb4 7#c7 ,rule of construction ,nothing in this section is intended to limit1 or shall be construed to limit1 the ability of the ,attorney ,general to present such evidence to a grand jury or to share such evidence with potential witnesses or defendants in the course of an ongoing criminal investigation4 7#d7 ,availability to government agencies 7,a7 ,in general ,without the loss of its status as confidential in the hands of the ,treasury1 all information referred to in paragraph 7#a7 may1 in the discretion of the ,treasury1 when determined by the ,treasury to be necessary to accomplish the purposes of this chapter and to protect investors1 be made available to-- 7i7 the ,attorney ,general of the ,united ,states or the ,secretary of the ,treasury2 7ii7 an appropriate regulatory authority2 7iii7 a self-regulatory organization2 7iv7 a ,state attorney general in connection with any criminal investigation2 7v7 any appropriate ,state regulatory authority2 7vi7 the ,public ,company ,accounting ,oversight ,board2 7vii7 a foreign securities authority2 and 7viii7 a foreign law enforcement authority4 7,b7 ,confidentiality 7i7 ,in general ,each of the entities described in clauses 7i7 through 7vi7 of subparagraph 7,a7 shall maintain such information as confidential in accordance with the requirements established under paragraph 7#a74 7ii7 ,foreign authorities ,each of the entities described in clauses 7vii7 and 7viii7 of subparagraph 7,a7 shall maintain such information in accordance with such assurances of confidentiality as the ,treasury determines appropriate4 7iii7 ,rights retained ,nothing in this section shall be deemed to diminish the rights1 privileges1 or remedies of any whistleblower under any ,federal or ,state law1 or under any collective bargaining agreement4 7i7 ,provision of false information ,a whistleblower shall not be entitled to an award under this section if the whistleblower-- 7#a7 knowingly and willfully makes any false1 fictitious1 or fraudulent statement or representation2 or 7#b7 uses any false writing or document knowing the writing or document contains any false1 fictitious1 or fraudulent statement or entry4 7j7 ,rulemaking authority ,the ,treasury shall have the authority to issue such rules and regulations as may be necessary or appropriate to implement the provisions of this section consistent with the purposes of this section4 4 7#b7 ,technical and conforming amendment ,the table of sections for chapter #ec of title #ca1 ,united ,states ,code1 is amended by striking the item relating to section #ecbc and inserting the following3 #ecbc4 ,whistleblower incentives and protections4 4 #cjh4 ,value that substitutes currency or funds 7a7 ,definitions ,section #ecab7;a77#b7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in subparagraph 7,j71 by inserting 1 or a business engaged in the exchange of currency1 funds1 or value that substitutes for currency or funds before the semicolon at the end2 and 7#b7 in subparagraph 7,r71 by striking funds1 and inserting currency1 funds1 or value that substitutes for currency or funds14 7b7 ,registration of money transmitting businesses ,section #eccj7;d7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#a77;,a71 by striking funds1 and inserting currency1 funds1 or value that substitutes for currency or funds12 and 7#b7 in paragraph 7#b7-- 7,a7 by striking currency or funds denominated in the currency of any country and inserting currency1 funds1 or value that substitutes for currency or funds2 and 7,b7 by inserting 1 including after means4 #cji4 ,fight illicit networks and detect trafficking 7a7 ,findings ,congress finds the following3 7#a7 ,according to the ,drug ,enforcement ,administration #bjag ,national ,drug ,threat ,assessment1 transnational criminal organizations are increasingly using virtual currencies4 7#b7 ,the ,department of the ,treasury has recognized that the development of virtual currencies is an attempt to meet a legitimate market demand4 ,according to a ,federal ,reserve ,bank of ,chicago economist1 ,united ,states consumers want payment options that are versatile and that provide immediate finality4 ,no ,united ,states payment method meets that description1 although cash may come closest4 ,virtual currencies can mimic cash's immediate finality and anonymity and are more versatile than cash for online and cross-border transactions1 making virtual currencies vulnerable for illicit transactions44 7#c7 ,virtual currencies have become a prominent method to pay for goods and services associated with illegal human trafficking and drug trafficking1 which are two of the most detrimental and troubling illegal activities facilitated by online marketplaces4 7#d7 ,online marketplaces1 including the dark web1 have become a prominent platform to buy1 sell1 and advertise for illicit goods and services associated with human trafficking and drug trafficking4 7#e7 ,according to the ,international ,labour ,organization1 in #bjaf1 #d1hjj1jjj people in the world were victims of forced sexual exploitation1 and in #bjad1 the global profit from commercial sexual exploitation was #ii1jjj1jjj1jjj4 7#f7 ,in #bjaf1 within the ,united ,states1 the ,centers for ,disease ,control and ,prevention estimated that there were #fd1jjj deaths related to drug overdose1 and the most severe increase in drug overdoses were those associated with fentanyl and fentanyl analogs 7synthetic opioids71 which amounted to over #bj1jjj overdose deaths4 7#g7 ,according to the ,department of the ,treasury's #bjae ,national ,money ,laundering ,risk ,assessment1 an estimated #fd1jjj1jjj1jjj is generated annually from ,united ,states drug trafficking sales4 7#h7 ,illegal fentanyl in the ,united ,states originates primarily from ,china1 and it is readily available to purchase through online marketplaces4 7b7 ,definition ,in this section1 the term human trafficking has the meaning given the term severe forms of trafficking in persons in section #ajc of the ,trafficking ,victims ,protection ,act of #bjjj 7#bb ,u4,s4,c4 #gajb74 7c7 ,,gao ,study ,the ,comptroller ,general of the ,united ,states shall conduct a study on how virtual currencies and online marketplaces are used to facilitate human and drug trafficking4 ,the study shall consider-- 7#a7 how online marketplaces1 including the dark web1 are being used as platforms to buy1 sell1 or facilitate the financing of goods or services associated with human trafficking or drug trafficking 7specifically1 opioids and synthetic opioids1 including fentanyl1 fentanyl analogs1 and any precursor chemicals associated with manufacturing fentanyl or fentanyl analogs7 destined for1 originating from1 or within the ,united ,states2 7#b7 how financial payment methods1 including virtual currencies and peer-to-peer mobile payment services1 are being utilized by online marketplaces to facilitate the buying1 selling1 or financing of goods and services associated with human or drug trafficking destined for1 originating from1 or within the ,united ,states2 7#c7 how virtual currencies are being used to facilitate the buying1 selling1 or financing of goods and services associated with human or drug trafficking1 destined for1 originating from1 or within the ,united ,states1 when an online platform is not otherwise involved2 7#d7 how illicit funds that have been transmitted online and through virtual currencies are repatriated into the formal banking system of the ,united ,states through money laundering or other means2 7#e7 the participants 7state and non-state actors7 throughout the entire supply chain that participate in or benefit from the buying1 selling1 or financing of goods and services associated with human or drug trafficking 7either through online marketplaces or virtual currencies7 destined for1 originating from1 or within the ,united ,states2 7#f7 ,federal and ,state agency efforts to impede the buying1 selling1 or financing of goods and services associated with human or drug trafficking destined for1 originating from1 or within the ,united ,states1 including efforts to prevent the proceeds from human or drug trafficking from entering the ,united ,states banking system2 7#g7 how virtual currencies and their underlying technologies can be used to detect and deter these illicit activities2 and 7#h7 to what extent the immutable and traceable nature of virtual currencies can contribute to the tracking and prosecution of illicit funding4 7d7 ,report to ,congress ,not later than #a year after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report summarizing the results of the study required under subsection 7c71 together with any recommendations for legislative or regulatory action that would improve the efforts of ,federal agencies to impede the use of virtual currencies and online marketplaces in facilitating human and drug trafficking4 #caj4 ,study and strategy on ,chinese money laundering 7a7 ,study ,the ,secretary shall carry out a study on-- 7#a7 the extent and effect of illicit finance risk relating to the ,government of the ,people's ,republic of ,china and ,chinese firms2 and 7#b7 the ways in which the increasing amount of global trade and investment by the ,government of the ,people's ,republic of ,china and ,chinese firms expose the international financial system to increased risk relating to illicit finance4 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 #a year after the date of enactment of this ,act1 the ,secretary shall submit to ,congress a report 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 #caa4 ,financial technology task force 7a7 ,in general ,the ,secretary shall convene a task force1 comprised of financial regulators1 technology experts1 national security experts1 law enforcement1 and any other group the ,secretary determines is appropriate1 to analyze the impact of financial technology on financial crimes compliance1 including countering proliferation finance1 human trafficking1 and sanctions evasion4 7b7 ,report ,not later than #b years after the date of enactment of this ,act1 the ,secretary shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs and the ,committee on ,foreign ,relations of the ,senate and the ,committee on ,financial ,services and the ,committee on ,foreign ,affairs of the ,house of ,representatives a report containing any findings of the task force convened under subsection 7a74 #cab4 ,study on the efforts of authoritarian regimes to exploit the financial system of the ,united ,states 7a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,secretary and the ,attorney ,general1 in consultation with the heads of other relevant national security1 intelligence1 and law enforcement agencies1 shall conduct a study and submit to ,congress a report that considers how authoritarian regimes in foreign countries and their proxies use the financial system of the ,united ,states to-- 7#a7 conduct political influence operations2 7#b7 sustain kleptocratic methods of maintaining power2 7#c7 export corruption2 7#d7 fund nongovernmental organizations1 media organizations1 or academic initiatives in the ,united ,states to advance the interests of those persons2 and 7#e7 otherwise undermine democratic governance in the ,united ,states and the partners and allies of the ,united ,states4 7b7 ,report ,not later than #b years after the date of enactment of this ,act1 the ,secretary shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report that contains-- 7#a7 the results of the study required under subsection 7a72 and 7#b7 any recommendations for legislative or regulatory action that would address exploitation of the financial system of the ,united ,states by foreign authoritarian regimes4 #cac4 ,additional studies ,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 ,congress a report-- 7#a7 evaluating the effect of anti-money-laundering and counter-terrorism-financing requirements on individuals and entities1 including charities1 embassy accounts1 money-service businesses1 and correspondent banks1 that have been subject to categorical de-risking by financial institutions operating in the ,united ,states1 or otherwise have difficulty accessing or maintaining-- 7,a7 relationships in the ,united ,states financial system2 or 7,b7 certain financial services in the ,united ,states1 including opening and keeping open an account2 7#b7 evaluating consequences of financial institutions de-risking entire categories of relationships with the persons identified in paragraph 7#a72 and 7#c7 identifying options for financial institutions handling transactions or accounts for high-risk categories of clients1 and options for minimizing the negative effects of anti-money-laundering and counter-terrorism-financing requirements on the persons described in paragraph 7#a7 without compromising the effectiveness of ,federal anti-money-laundering and counter-terrorism requirements4 ,,iv ,beneficial ownership disclosure requirements #dja4 ,beneficial ownership 7a7 ,in general ,chapter #ec of title #ca1 ,united ,states ,code1 as amended by section #bjg of this ,act1 is amended by adding at the end the following3 #eccd4 ,transparent incorporation practices 7a7 ,definitions ,in this section3 7#a7 ,acceptable identification document ,a natural person has an acceptable identification document if that person has a nonexpired passport issued by the ,united ,states1 a nonexpired identification document issued by a ,state1 local government1 or ,federally recognized ,indian ,tribe to an individual acting for the purpose of identification of that individual1 or a nonexpired driver's license issued by a ,state1 or1 if the natural person does not have any such document1 a nonexpired passport issued by a foreign government4 7#b7 ,beneficial owner ,the term beneficial owner-- 7,a7 means1 with respect to an entity1 a natural person who directly or indirectly1 through any contract1 arrangement1 understanding1 relationship1 or otherwise-- 7i7 exercises substantial control over such entity2 or 7ii7 owns #be percent or more of the equity interests of such entity or receives substantial economic benefits from the assets of such entity2 and 7,b7 does not include-- 7i7 a minor child1 as defined in the ,state 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 meets the requirements of subparagraph 7,a74 7#c7 ,director ,the term ,director means the ,director of ,fin,c,e,n4 7#d7 ,fin,c,e,n ,the term ,fin,c,e,n means the ,financial ,crimes ,enforcement ,network of the ,department of the ,treasury4 7#e7 ,fin,c,e,n identifier ,the term ,fin,c,e,n identifier means the unique identifying number assigned by ,fin,c,e,n to a person under this section4 7#f7 ,reporting company ,the term reporting company-- 7,a7 means a corporation1 limited liability company1 or other similar entity that is-- 7i7 created by the filing of a document with a secretary of state or a similar office under the law of a ,state or ,indian tribe2 or 7ii7 formed under the law of a foreign country and registered to do business in a ,state by the filing of a document with a secretary of state or a similar office under the law of the ,state2 and 7,b7 does not include-- 7i7 an issuer-- 7,i7 of a class of securities registered under section #ab of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gha72 or 7,,ii7 that is required to file reports under section #ae7;d7 of that ,act 7#ae ,u4,s4,c4 #gho7d772 7ii7 a business concern constituted or sponsored by a ,state1 a political subdivision of a ,state1 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 #ahda772 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 including an investment adviser described in section #bjc7l7 of the ,investment ,advisers ,act of #aidj 7#ae ,u4,s4,c4 #hj;b-#c7l771 if the company or adviser is registered with the ,securities and ,exchange ,commission1 or 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 ,advisers ,act of #aidj 7#ae ,u4,s4,c4 #hj;b-#a et seq472 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 an insurance producer 7as defined in section #ccd of the ,gramm-,leach-,bliley ,act 7#ae ,u4,s4,c4 #fgfd772 7xi7 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 7xii7 a public accounting firm registered in accordance with section #ajb of the ,sarbanes-,oxley ,act 7#ae ,u4,s4,c4 #gbab72 7xiii7 a public utility that provides telecommunications services1 electrical power1 natural gas1 or water and sewer services1 within the ,united ,states2 7xiv7 a church1 charity1 nonprofit entity1 or other organization that is described in section #eja7;c71 #ebg1 #didg7;a77#a71 or #didg7;a77#b7 of the ,internal ,revenue ,code of #aihf1 that has not been denied tax-exempt status1 and that has not failed to file the most recently due annual information return with the ,internal ,revenue ,service pursuant to section #fjcc7;a7 of the ,internal ,revenue ,code of #aihf1 if required to file such a return1 for #c consecutive years1 provided however1 that an entity described in this clause shall not be considered a corporation or limited liability company until the period of time #ahj days immediately following the date of its denial of tax-exempt status or failure to file its annual information return pursuant to section #fjcc7;a7 of the ,internal ,revenue ,code of #aihf for #c consecutive years2 7xv7 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 7xvi7 any corporation or limited liability company formed and owned by an entity described in clause 7i71 7ii71 7iii71 7iv71 7v71 7vi71 7vii71 7viii71 7ix71 7x71 7xi71 7xii71 7xiii71 or 7xiv72 7xvii7 any pooled investment vehicle that is operated or advised by an entity described in clause 7iii71 7iv71 7v71 7vi71 7vii71 7viii71 7ix71 or 7x72 or 7xviii7 any business concern or class of business concerns that the ,secretary of the ,treasury1 with the written concurrence of the ,attorney ,general and the ,secretary of ,homeland ,security1 has determined should be exempt from the requirements of subsection 7a7 because requiring beneficial ownership information from the business concern or class of business concerns would not serve the public interest and would not assist law enforcement efforts to detect1 prevent1 or punish terrorism1 money laundering1 tax evasion1 or other misconduct4 7#g7 ,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 7#h7 ,substantial economic benefits 7,a7 ,in general ,for the purposes of this section1 a person receives substantial economic benefits from an entity if the person has access to #be percent or more of the funds and assets of the entity4 7,b7 ,rulemaking ,the ,secretary of the ,treasury shall seek to provide clarity to entities with respect to the identification and disclosure of an individual who receives substantial economic benefits from the funds and assets of an entity4 7#i7 ,unique identifying number ,the term unique identifying number with respect to a natural person or a limited liability company with a sole member means the unique identifying number from a nonexpired passport issued by the ,united ,states1 a nonexpired personal identification card1 or a nonexpired driver's license issued by a ,state4 7b7 ,beneficial ownership reporting 7#a7 ,reporting 7,a7 ,in general ,in accordance with regulations prescribed by the ,secretary of the ,treasury1 each reporting company shall submit to ,fin,c,e,n a report that contains the information described in paragraph 7#b74 7,b7 ,reporting of existing entities ,in accordance with regulations prescribed by the ,secretary of the ,treasury1 any reporting company that has been formed under the laws of a ,state or ,indian ,tribe prior to the date of enactment of this section1 shall1 in a timely manner1 and not later than #b years after the date of enactment of this section1 submit to ,fin,c,e,n a report that contains the information described in paragraph 7#b74 7,c7 ,reporting at time of incorporation ,in accordance with regulations prescribed by the ,secretary of the ,treasury1 any reporting company that has been formed under the laws of a ,state or ,indian ,tribe after the date of enactment of this section1 shall1 at the time of incorporation1 submit to ,fin,c,e,n a report that contains the information described in paragraph 7#b74 7,d7 ,updated reporting for changes in beneficial owners ,in accordance with regulations prescribed by the ,secretary of the ,treasury1 a reporting company shall1 in a timely manner1 and not later than #ij days after the date on which there is a change with respect to any beneficial owner of the reporting company1 deliver to ,fin,c,e,n a report that includes the information described in paragraph 7#b74 7,e7 ,updated reporting for changes in beneficial ownership information ,in accordance with regulations prescribed by the ,secretary of the ,treasury1 a reporting company shall1 in a timely manner1 and not later than #a year after the date on which there are any changes to the information described in paragraph 7#b71 deliver to ,fin,c,e,n a report that includes the information described in that paragraph4 7,f7 ,other requirements ,in promulgating the regulations prescribed in subparagraphs 7,a7 through 7,e71 the ,secretary of the ,treasury shall endeavor1 to the extent practicable-- 7i7 to collect information through existing ,federal1 ,state1 and local processes and procedures2 7ii7 to minimize burdens on reporting companies associated with the collection of the information described in paragraph 7#b7 in light of the costs placed on legitimate businesses2 7iii7 to collect such information1 including any updates in beneficial ownership1 to ensure the usefulness of beneficial ownership information for law enforcement and national security purposes2 7iv7 to establish partnerships with ,state1 local1 and ,tribal governmental agencies2 and 7v7 to permit any entity that is not a reporting company to demand and receive from ,fin,c,e,n written confirmation that the entity is not subject to the requirements of this subsection4 7#b7 ,required information 7,a7 ,definition ,in this paragraph1 the term applicant means1 with respect to a reporting company1 any individual who files an application to form a corporation or limited liability company under the laws of a ,state or ,indian ,tribe on behalf of the reporting company4 7,b7 ,information ,in accordance with regulations prescribed by the ,secretary of the ,treasury1 a report delivered under paragraph 7#a7 shall identify each beneficial owner of the applicable reporting company and each applicant with respect to that reporting company by-- 7i7 full legal name2 7ii7 date of birth2 7iii7 current1 as of the date on which the report is delivered1 residential or business street address2 and 7iv7 the unique identifying number with respect to the beneficial owner from a nonexpired passport issued by the ,united ,states1 a nonexpired personal identification card1 or a nonexpired driver's license issued by a ,state4 7#c7 ,fin,c,e,n ,,id numbers 7,a7 ,issuance of fincen 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 in paragraph 7#b74 7ii7 ,updating of information ,an individual with a ,fin,c,e,n ,,id number shall submit filings with ,fin,c,e,n pursuant to paragraph 7#a7 updating any information described in paragraph 7#b74 7,b7 ,use of ,fin,c,e,n ,,id number in reporting requirements ,any person required to report the information described in paragraph 7#b7 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#d7 ,effective date ,the requirements of this subsection shall take effect on the effective date of the regulations prescribed by the ,secretary of the ,treasury under this subsection1 which effective date shall not be sooner than the date that is #a year after the date of enactment of this section4 7c7 ,retention and disclosure of beneficial ownership information by ,fin,c,e,n 7#a7 ,retention of information ,beneficial ownership information required under subsection 7b77#b7 relating to each corporation or limited liability company formed under the laws of the ,state shall be maintained by ,fin,c,e,n until the end of the #e-year period beginning on the date that the corporation or limited liability company terminates4 7#b7 ,disclosure ,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-- 7,a7 a request1 through appropriate protocols1 by a local1 ,tribal1 ,state1 or ,federal law enforcement1 national security1 or intelligence agency2 7,b7 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 #bh1 issued in response to a request for assistance in an investigation by such foreign country1 subject to the requirement that such other country agrees to prevent the public disclosure of such beneficial ownership information or to use it for any purpose other than the specified investigation1 or1 if upon agreement by the ,federal agency and the foreign country1 in a criminal or civil case2 or 7,c7 a request made by a financial institution or any other entity or person subject to customer due diligence requirements1 with the consent of the reporting company1 to facilitate the compliance of the financial institution or other entity or person with customer due diligence requirements under applicable ,federal law or ,state law4 7#c7 ,appropriate protocols ,the protocols described in paragraph 7#b77;,a7 shall-- 7,a7 protect the privacy of any beneficial ownership information provided by ,fin,c,e,n to a local1 ,tribal1 ,state1 or ,federal law enforcement1 national security1 or intelligence agency2 7,b7 ensure that a local1 ,tribal1 ,state1 or ,federal law enforcement1 national security1 or intelligence agency requesting beneficial ownership information has an existing investigatory basis for requesting such information and that basis is not in violation of a local1 or city ordinance2 7,c7 ensure that access to beneficial ownership information is limited to authorized users at a local1 ,tribal1 ,state1 or ,federal law enforcement1 national security1 or intelligence agency who have undergone appropriate training1 and that the identity of such authorized users is verified through appropriate mechanisms such as #b-;factor authentication2 7,d7 include an audit trail of requests for beneficial ownership information by a local1 ,tribal1 ,state1 or ,federal law enforcement1 national security1 or intelligence agency1 including1 as necessary1 information concerning queries made by authorized users at a local1 ,tribal1 ,state1 or ,federal law enforcement1 national security1 or intelligence agency2 7,e7 require that every local1 ,tribal1 ,state1 or ,federal law enforcement1 national security1 or intelligence 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,f7 require ,fin,c,e,n to conduct an annual audit of every local1 ,tribal1 ,state1 or ,federal law enforcement1 national security1 or intelligence agency that has received beneficial ownership information to ensure that such agency has requested beneficial ownership information and has used any beneficial ownership information received from ,fin,c,e,n appropriately and consistent with this paragraph4 7#d7 ,violation ,a request under paragraph 7#b77;,a7 that violates the protocols described in paragraph 7#c7 shall subject the requesting agency to criminal penalties under subsection 7g77#c74 7#e7 ,scope ,information provided to a local1 ,tribal1 ,state1 or ,federal law enforcement1 national security1 or intelligence agency under this paragraph may only be used for law enforcement1 anti-money laundering1 counter-terrorism-financing1 national security1 or intelligence purposes4 7d7 ,agency coordination 7#a7 ,in general ,the ,secretary of the ,treasury shall endeavor1 to the extent practicable1 to update information described in subsection 7b77#b7 by working collaboratively with other relevant ,federal agencies4 7#b7 ,information from relevant ,federal agencies ,relevant ,federal agencies1 as determined by the ,secretary of the ,treasury1 shall1 to the extent practicable1 and consistent with privacy protections1 provide such required information to ,fin,c,e,n for purposes of maintaining an accurate beneficial ownership database4 7#c7 ,regulations ,the ,secretary of the ,treasury1 in consultation with the heads of other relevant agencies1 may promulgate regulations as necessary to carry out this subsection4 7e7 ,state notification of federal obligations 7#a7 ,in general ,each ,state that receives funding under section #eccd7;c7 shall1 not later than #b years after the date of enactment of this section1 take the following actions3 7,a7 ,the ,secretary of ,state or a similar office in each ,state responsible for the establishment of entities created by the filing of a public document with such office under the law of such ,state shall periodically1 including at the time of any renewal of any license to do business in such ,state and in connection with ,state corporate tax renewals1 notify filers of their requirements as reporting companies under this section1 including the requirement under subparagraph 7b77#a77;,b71 and provide them with a copy of the reporting company form created by the ,secretary under this section or an internet link to such form4 7,b7 ,the ,secretary of ,state or a similar office in each ,state responsible for the establishment of entities created by the filing of a public document with such office under the law of such ,state shall update its websites1 forms relating to incorporation and physical premises to notify filers of their requirements as reporting companies under this section1 including providing an internet link to the reporting company form created by the ,secretary under this section4 7#b7 ,disclosure ,a notification under subparagraph 7,a7 or 7,b7 of paragraph 7#a7 shall explicitly state that the notification is on behalf of the ,department of the ,treasury for the purpose of supporting a nonpublic registry of business entities in the ,united ,states4 7f7 ,no bearer share corporations or limited liability companies ,a corporation or limited liability company formed under the laws of a ,state may not issue a certificate in bearer form evidencing either a whole or fractional interest in the corporation or limited liability company4 7g7 ,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 subsection 7b72 7,b7 willfully failing to provide complete or updated beneficial ownership information to ,fin,c,e,n in accordance with subsection 7b72 7,c7 knowingly disclosing the contents of any report filed with ,fin,c,e,n pursuant to subsection 7b71 except to the extent necessary to fulfill an authorized request for beneficial ownership information2 or 7,d7 knowingly using1 for an unauthorized purpose1 the contents of any report filed with ,fin,c,e,n pursuant to subsection 7b74 7#b7 ,civil and criminal penalties 7,a7 ,in general ,any person who violates subparagraph 7,a7 or 7,b7 of paragraph 7#a7 shall be liable to the ,united ,states for a civil penalty of not more than #ejj for each day that the violation continues or has not been remedied1 and the person may be fined not more than #aj1jjj1 imprisoned for not more than four years1 or both4 7,b7 ,other violations ,any person who violates subparagraph 7,c7 or 7,d7 of paragraph 7#a7 shall be liable to the ,united ,states for a civil penalty of not more than #ejj for each violation1 and the criminal penalties provided for in section #ecbb will apply to the same extent as such criminal penalties would apply to a violation described in section #ecbb4 7,c7 ,limitations ,any person who negligently violates paragraph 7#a7 shall not be subject to civil or criminal penalties under this paragraph4 7,d7 ,waiver of de minimis violations 7i7 ,definitions 7,i7 ,in general ,for purposes of this subsection1 a de minimis violation includes any change to the information described in paragraph 7#b77;,b7 of subsection 7b7 that is due to-- 7aa7 a change in an address provided under clause 7iii7 of such paragraph 7#b77;,b72 or 7bb7 the expiration of an identification document provided under clause 7iv7 of such paragraph 7#b77;,b74 7,,ii7 ,assistance ,fin,c,e,n shall provide assistance to1 and may not impose any penalty upon1 any person seeking to remedy a de minimis violation of paragraph 7#a7 and come into compliance with this section4 7ii7 ,waiver ,the ,secretary of the ,treasury shall waive the penalty for violating paragraph 7#a7 if the ,secretary determines that the violation was de minimis and the reporting company took reasonable steps to update the information4 7iii7 ,repeated violations ,in determining whether a violation is de minimis1 the ,secretary of the ,treasury may treat repeated violations as #a violation4 7#c7 ,treasury ,office of ,inspector ,general investigation in the event of a cybersecurity breach 7,a7 ,in general ,in the event of a cybersecurity breach that results in substantial unauthorized access and disclosure of sensitive beneficial ownership information1 the ,inspector ,general of the ,department of the ,treasury shall conduct an investigation into ,fin,c,e,n cybersecurity practices that1 to the extent possible1 determines any vulnerabilities within ,fin,c,e,n privacy security protocols and provides recommendations for fixing such deficiencies4 7,b7 ,report ,the ,inspector ,general of the ,department of the ,treasury shall submit to the ,secretary of the ,treasury a report on the investigation required under this paragraph4 7,c7 ,actions of the ,secretary ,upon receiving a report submitted under subparagraph 7,b71 the ,secretary of the ,treasury shall-- 7i7 determine whether the ,director had any responsibility for the cybersecurity breach or whether policies1 practices1 or procedures implemented at the direction of the ,director led to the cybersecurity breach2 and 7ii7 submit to ,congress a written report outlining the findings of the ,secretary1 including a determination by the ,secretary on whether to retain or dismiss the individual serving as the ,director4 7#d7 ,user complaint process 7,a7 ,in general ,the ,inspector ,general of the ,department of the ,treasury1 in coordination with the ,secretary of the ,treasury1 shall provide contact information to receive external comments or complaints regarding the beneficial ownership information collection process4 7,b7 ,report ,the ,inspector ,general shall submit to ,congress a periodic report summarizing external complaints and related investigations by the ,inspector ,general related to the collection of beneficial ownership information4 4 7b7 ,conforming amendments ,title #ca1 ,united ,states ,code1 is amended-- 7#a7 in section #ecba7;a7-- 7,a7 in paragraph 7#a71 by striking sections #ecad and #ecae each place it appears and inserting sections #ecad1 #ecae1 and #eccd2 and 7,b7 in paragraph 7#f71 by inserting 7except section #eccd7 after subchapter each place it appears2 7#b7 in section #ecbb1 by striking section #ecae or #ecbd each place it appears and inserting section #ecae1 #ecbd1 or #eccd2 and 7#c7 in the table of contents of chapter #ec of title #ca1 ,united ,states ,code1 as amended by section #ajf of this ,act1 by adding at the end the following3 #eccd4 ,transparent incorporation practices4 4 7c7 ,funding authorization 7#a7 ,in general ,to carry out section #eccd of title #ca1 ,united ,states ,code1 as added by subsection 7a7 of this section1 during the #c-year period beginning on the date of enactment of this ,act1 funds shall be made available to ,fin,c,e,n and the ,states to pay reasonable costs relating to compliance with the requirements of such section4 7#b7 ,funding sources ,funds shall be provided to ,fin,c,e,n and the ,states to carry out the purposes described in paragraph 7#a7 from one or more of the following sources3 7,a7 ,upon application by ,fin,c,e,n or a ,state1 and without further appropriation1 the ,secretary shall make available to ,fin,c,e,n or such ,state unobligated balances described in section #igjc7;g77#d77;,b7 of title #ca1 ,united ,states ,code1 in the ,department of the ,treasury ,forfeiture ,fund established under section #igjc7;a7 of title #ca1 ,united ,states ,code4 7,b7 ,upon application by ,fin,c,e,n or a ,state1 after consultation with the ,secretary1 and without further appropriation1 the ,attorney ,general of the ,united ,states shall make available to ,fin,c,e,n or such ,state excess unobligated balances 7as defined in section #ebd7;c77#h77;,d7 of title #bh1 ,united ,states ,code7 in the ,department of ,justice ,assets ,forfeiture ,fund established under section #ebd7;c7 of title #bh1 ,united ,states ,code4 7#c7 ,maximum amounts 7,a7 ,department of the treasury ,the ,secretary may not make available to ,fin,c,e,n a total of more than #cj1jjj1jjj and to the ,states a total of not more than #e1jjj1jjj under paragraph 7#b77;,a74 7,b7 ,department of justice ,the ,attorney ,general of the ,united ,states may not make available to ,fin,c,e,n a total of more than #aj1jjj1jjj and to the ,states a total of not more than #e1jjj1jjj under paragraph 7#b77;,b74 7d7 ,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 who is subject to the requirement to disclose beneficial ownership information under section #eccd of title #ca1 ,united ,states ,code1 as added by subsection 7a7 of this section1 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 7e7 ,revised due diligence rulemaking ,not later than #a year after the date of the enactment of this ,act1 the ,secretary shall revise the final rule titled ,customer ,due ,diligence ,requirements for ,financial ,institutions 7,may #aa1 #bjaf2 #ha ,fed4 ,reg4 #bicig7 to-- 7#a7 bring the rule into conformance with this ,act and the amendments made by this ,act2 7#b7 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 ,act1 and the amendments made by this ,act2 and 7#c7 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 #djb4 ,geographic targeting order ,the ,secretary shall issue a geographic targeting order1 similar to the order issued by the ,fin,c,e,n on ,november #ae1 #bjah1 that-- 7#a7 applies to commercial real estate to the same extent1 with the exception of not 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 #djc4 ,beneficial ownership studies 7a7 ,other legal entities study ,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 ,congress a report-- 7#a7 identifying each ,state that has procedures that enable persons to form or register under the laws of the ,state partnerships1 trusts1 or other legal entities1 and the nature of those procedures2 7#b7 identifying each ,state that requires persons seeking to form or register partnerships1 trusts1 or other legal entities under the laws of the ,state to provide beneficial owners 7as that term is defined in section #eccd7;a7 of title #ca1 ,united ,states ,code1 as added by section #dja of 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 and 7,b7 has impeded investigations into entities suspected of such misconduct2 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 7b7 ,effectiveness of incorporation practices study ,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 ,act1 and the amendments made by this ,act1 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-- 7,a7 combat incorporation abuses and civil and criminal misconduct2 and 7,b7 detect1 prevent1 or punish terrorism1 money laundering1 tax evasion1 or other misconduct4 7c7 ,using technology ,to avoid duplicative layers of reporting obligations and increase accuracy of beneficial ownership information 7#a7 ,in general ,the ,secretary1 in consultation with the ,attorney ,general of the ,united ,states shall conduct a study to evaluate-- 7,a7 the feasibility of adopting ,fin,c,e,n identifying numbers or other simplified reporting methods in order to facilitate a simplified beneficial ownership regime for reporting companies2 7,b7 whether a reporting regime whereby only company shareholders are reported within the ownership chain of a reporting company could effectively track beneficial ownership information and increase information to law enforcement2 7,c7 the costs associated with imposing any new verification requirements on ,fin,c,e,n2 and 7,d7 the resources necessary to implement any such changes4 7#b7 ,findings ,the ,secretary shall present findings to the relevant committees of jurisdiction and provide recommendations for carrying out these findings4 ,v ,strengthening the ability of the ,securities and ,exchange ,commission to pursue violations of the securities laws #eja4 ,short title ,this title may be cited as the ,securities ,fraud ,enforcement and ,investor ,compensation ,act of #bjai4 #ejb4 ,investigations and prosecutions of violations of the securities laws 7a7 ,in general ,section #ba7;d7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghu7d77 is amended-- 7#a7 in paragraph 7#c7-- 7,a7 in the paragraph heading-- 7i7 by inserting ,civil before ,money penalties2 and 7ii7 by striking in civil actions and inserting and authority to seek disgorgement2 7,b7 in subparagraph 7,a71 by striking jurisdiction to impose and all that follows through the period at the end and inserting the following3 8jurisdiction to-- 7i7 impose1 upon a proper showing1 a civil penalty to be paid by the person who committed such violation2 and 7ii7 require disgorgement under paragraph 7#g7 by the person who received any unjust enrichment as a result of such violation4 2 and 7,c7 in subparagraph 7,b7-- 7i7 in clause 7i71 in the first sentence1 by striking the penalty and inserting a civil penalty imposed under subparagraph 7,a77i72 7ii7 in clause 7ii71 by striking amount of penalty and inserting amount of a civil penalty imposed under subparagraph 7,a77i72 and 7iii7 in clause 7iii71 in the matter preceding item 7aa71 by striking amount of penalty for each such violation and inserting amount of a civil penalty imposed under subparagraph 7,a77i7 for each violation described in that subparagraph2 7#b7 in paragraph 7#d71 by inserting under paragraph 7#g7 after funds disgorged2 and 7#c7 by adding at the end the following3 7#g7 ,disgorgement 7,a7 ,in general ,in any action or proceeding brought by the ,commission under any provision of the securities laws1 the ,commission may seek1 and any ,federal court may order1 disgorgement of any unjust enrichment that a person obtained as a result of a violation of that provision4 7,b7 ,calculation ,any disgorgement that is ordered with respect to a person under subparagraph 7,a7 shall be offset by any amount of restitution that the person is ordered to pay under paragraph 7#h74 7#h7 ,restitution ,in any proceeding brought or instituted by the ,commission under any provision of the securities laws1 the ,commission may seek1 and any ,federal court1 or1 with respect to a proceeding instituted by the ,commission1 the ,commission1 may order restitution to an investor in the amount of the loss that the investor sustained as a result of a violation of that provision by a person that is-- 7,a7 registered as1 or required to be registered as1 a broker1 dealer1 investment adviser1 municipal securities dealer1 municipal advisor1 or transfer agent2 or 7,b7 associated with1 or1 as of the date on which the violation occurs1 seeking to become associated with1 an entity described in subparagraph 7,a74 7#i7 ,limitations periods 7,a7 ,disgorgement ,the ,commission may bring a claim for disgorgement under paragraph 7#g7 not later than #e years after the date on which the person against which the claim is brought receives any unjust enrichment as a result of the violation that gives rise to the action or proceeding in which the ,commission seeks the claim4 7,b7 ,equitable remedies ,the ,commission may seek a claim for any equitable remedy1 including for restitution under paragraph 7#h71 an injunction1 or a bar1 suspension1 or cease and desist order1 not later than #ab years after the latest date on which a violation that gives rise to the claim occurs4 7,c7 ,calculation ,for the purposes of calculating any limitations period under this paragraph with respect to an action or claim1 any time in which the person against which the action or claim1 as applicable1 is brought is outside of the ,united ,states shall not count towards the accrual of that period4 7#aj7 ,rule of construction ,nothing in paragraph 7#g7 or 7#h7 may be construed as altering any right that any private party may have to maintain a suit for a violation of this ,act4 4 7b7 ,applicability ,the amendments made by subsection 7a7 shall apply with respect to any action or proceeding that is commenced on or after the date of enactment of this ,act4