,,ii #aaf? ,,congress #a/ ,session ,s4 #befc ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,septemb] #bf1 #bjai,mr4 ,w>n] 7= himself1 ,mr4 ,cotton1 ,mr4 ,jones1 ,mr4 ,r\nds1 ,mr4 ,m55dez1 ,mr4 ,k5n$y1 ,ms4 ,cortez ,ma/o1 & ,mr4 ,moran7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to improve laws relat+ to money laund]+1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,improv+ ,laund]+ ,laws & ,increas+ ,compreh5sive ,in=mation ,track+ ( ,crim9al ,activity 9 ,%ell ,hold+s ,act or ! ,,illicit ,,ca% ,act4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,sec4 #b4 ,f9d+s & purposes4 ,sec4 #c4 ,def9itions4 ,sec4 #d4 ,s5se ( ,congress4 ,,title ,i--,anti-money laund]+ programs & ! ,f9ancial ,crimes ,en=cem5t ,network ,sec4 #aja4 ,e/abli%m5t ( national exam & sup]vision priorities4 ,sec4 #ajb4 ,fin,c,e,n comp5sation4 ,sec4 #ajc4 ,subcommittee on ,innovation2 inve/igator rese>* hub4 ,sec4 #ajd4 ,e/abli%m5t ( ,fin,c,e,n f9ancial in/itution liaison4 ,sec4 #aje4 ,int]ag5cy ,,aml-,,cft p]sonnel rotation program4 ,sec4 #ajf4 ,subcommittee on ,privacy & ,civil ,lib]ties4 ,sec4 #ajg4 ,int]national coord9ation4 ,sec4 #ajh4 ,/r5g!n+ ,fin,c,e,n4 ,,title ,,ii--,improv+ ,,aml-,,cft communication1 ov]sight1 & processes ,sec4 #bja4 ,annual report+ requirem5ts4 ,sec4 #bjb4 ,law en=cem5t fe$back on suspici\s activity reports4 ,sec4 #bjc4 ,/reaml9+ requirem5ts = curr5cy transaction reports & suspici\s activity reports4 ,sec4 #bjd4 ,curr5cy transaction report & suspici\s activity report ?re%olds review4 ,sec4 #bje4 ,review ( regulations & guidance4 ,sec4 #bjf4 ,p5alty coord9ation4 ,sec4 #bjg4 ,coop]ation ) law en=cem5t4 ,sec4 #bjh4 ,additional damages = repeat ,bank ,secrecy ,act violators4 ,sec4 #bji4 ,enc\rag+ in=mation %>+ & public-private p>tn]%ips4 ,,title ,,iii--,mod]nization ( ,,aml_/,,cft sy/em ,sec4 #cja4 ,approv$ sy/ems = id5tify+ suspici\s activities4 ,sec4 #cjb4 ,f9ancial crimes te* symposium4 ,sec4 #cjc4 ,deid5tifi$ ,,aml in=mation4 ,sec4 #cjd4 ,no action lett]s4 ,sec4 #cje4 ,,oecd pilot program on %>+ ( suspici\s activity reports )9 a f9ancial gr\p4 ,sec4 #cjf4 ,=eign evid5ti>y reque/s4 ,sec4 #cjg4 ,updat+ :i/lebl[] inc5tives & protection4 ,sec4 #cjh4 ,value t sub/itutes curr5cy or funds4 ,sec4 #cji4 ,fight illicit networks & detect traffick+4 ,sec4 #caj4 ,/udy & /rategy on ,*9ese money laund]+4 ,sec4 #caa4 ,f9ancial te*nology task =ce4 ,sec4 #cab4 ,/udy on ! ef=ts ( au?orit>ian regimes to exploit ! f9ancial sy/em ( ! ,unit$ ,/ates4 ,sec4 #cac4 ,additional /udies4 ,,title ,,iv--,b5eficial own]%ip disclosure requirem5ts ,sec4 #dja4 ,b5eficial own]%ip4 ,sec4 #djb4 ,geographic t>get+ ord]4 ,sec4 #djc4 ,b5eficial own]%ip /udies4 ,,title ,v--,/r5g!n+ ! ability ( ! ,securities & ,ex*ange ,commission to pursue violations ( ! securities laws ,sec4 #eja4 ,%ort title4 ,sec4 #ejb4 ,inve/igations & prosecutions ( violations ( ! securities laws4 #b4 ,f9d+s & purposes 7a7 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,! practice kn[n z bank de-risk+1 :]eby f9ancial in/itutions avoid r ?an manage anti-money-laund]+ & c\nt]+-!-f9anc+-(-t]rorism sanctions compliance risk1 has negatively impact$ ! ability ( nonpr(it organizations to conduct lifesav+ activities ar\nd ! globe4 7#b7 ,two-?irds ( nonpr(it organizations bas$ 9 ! ,unit$ ,/ates ) int]national activities face difficulties ) f9ancial access1 mo/ commonly ! inability to s5d funds int]nationally ?r\gh transp>5t1 regulat$ f9ancial *annels4 7#c7 ,)\t access to timely & pr$ictable bank+ s]vices1 nonpr(it organizations _c c>ry out ess5tial humanit>ian activities t lit]ally c mean life or dea? to affect$ communities4 7#d7 ,de-risk+ ultimately drives money into less transp>5t *annels ?r\gh c>ry+ ( ca% or use ( unlic5s$ or unregi/]$ money s]vice remitt]s1 ?us r$uc+ transp>5cy & traceability1 :i* are critical = f9ancial integrity1 & increases ! risk ( money fall+ into ! wrong h&s4 7#e7 ,f$]al ag5cies mu/ "w to address de-risk+ ?r\gh e/abli%m5t ( guidance enabl+ f9ancial in/itutions to bank nonpr(it organizations & promot+ focus$ & proportionate measures consi/5t ) a risk-bas$ approa*4 7#f7 ,! ,f$]al ,gov]nm5t %\ld "w coop]atively ) o!r donor /ates to promote a multi-/akehold] approa* to risk-%>+ among gov]nm5ts1 f9ancial in/itutions1 & nonpr(it organizations4 7b7 ,purposes ,! purposes ( ?is ,act are-- 7#a7 to improve coord9ation among ! ag5cies task$ ) adm9i/]+ anti-money-laund]+ & c\nt]+-!-f9anc+-(-t]rorism requirem5ts1 ! ag5cies t exam9e f9ancial in/itutions = compliance ) ^? requirem5ts1 ,f$]al law en=cem5t ag5cies1 ! intellig5ce community1 & f9ancial in/itutions2 7#b7 to e/abli% b5eficial own]%ip report+ requirem5ts to improve transp>5cy conc]n+ corporate /ructures & insight into ! fl[ ( illicit funds ?r\gh su* /ructures1 disc\rage ! use ( %ell corporations z a tool to disguise illicit funds1 assi/ law en=cem5t ) ! pursuit ( s]i\s crimes1 & protect ! national security ( ! ,unit$ ,/ates2 7#c7 to mod]nize anti-money-laund]+ & c\nt]-f9anc+-(-t]rorism laws to adapt ! gov]nm5t & private sector response to new ?reats2 7#d7 to enc\rage te*nological innovation & ! adoption ( new te*nology by f9ancial in/itutions to m effectively c\nt] money laund]+ & t]rori/ f9anc+2 & 7#e7 to re9=ce t ! anti-money-laund]+ & c\nt]+-!-f9anc+-(-t]rorism policies1 proc$ures1 & controls ( f9ancial in/itutions %all be risk-bas$4 #c4 ,def9itions ,9 ?is ,act3 7#a7 ,bank ,secrecy ,act ,! t]m ,bank ,secrecy ,act means-- 7,a7 section #ba ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b72 7,b7 *apt] #b ( title ,i ( ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et seq472 & 7,c7 sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code4 7#b7 ,f$]al functional regulator ,! t]m ,f$]al functional regulator has ! mean+ giv5 ! t]m 9 section #eji ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fhji74 7#c7 ,fin,c,e,n ,! t]m ,fin,c,e,n means ! ,f9ancial ,crimes ,en=cem5t ,network ( ! ,dep>tm5t ( ! ,treasury4 7#d7 ,f9ancial in/itution ,! t]m f9ancial in/itution has ! mean+ giv5 ! t]m 9 section #ecab ( title #ca1 ,unit$ ,/ates ,code4 7#e7 ,secret>y ,! t]m ,secret>y means ,secret>y ( ! ,treasury4 7#f7 ,/ate bank sup]visor ,! t]m ,/ate bank sup]visor has ! mean+ giv5 ! t]m 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 #d4 ,s5se ( ,congress ,x is ! s5se ( ,congress t provid+ vital humanit>ian & developm5t assi/ance & protect+ ! integrity ( ! int]national f9ancial sy/em are complem5t>y goals4 ,z su*1 ,congress supports ! foll[+3 7#a7 ,effective measures to /op ! fl[ ( illicit funds & t promote ! goals ( anti-money laund]+ & c\nt]+ ! f9anc+ ( t]rorism & sanctions regimes4 7#b7 ,anti-money laund]+ & c\nt]+ ! f9anc+ ( t]rorism & sanctions policies t d n h9d] or delay ! ef=ts ( legitimate humanit>ian organizations 9 provid+ assi/ance to-- 7,a7 meet ! ne$s ( civilians fac+ humanit>ian crisis1 includ+ access to food1 heal? & m$ical c>e1 %elt]1 & clean dr9k+ wat]2 & 7,b7 prev5t or alleviate human suff]+1 9 keep+ ) requirem5ts ( int]national humanit>ian law4 7#c7 ,policies t ensure t incid5tal1 inadv]t5t b5efits t may indirectly b5efit a designat$ gr\p 9 ! c\rse ( deliv]+ life-sav+ aid to civilian populations1 are n ! focus ( ! ,f$]al ,gov]nm5t en=cem5t ef=ts4 7#d7 ,all laws1 regulations1 policies1 guidance & o!r measures t ensure ! integrity ( ! f9ancial sy/em ?r\gh a risk-bas$ approa*4 ,i ,anti-money laund]+ programs & ! ,f9ancial ,crimes ,en=cem5t ,network #aja4 ,e/abli%m5t ( national exam & sup]vision priorities 7a7 ,decl>ation ( purpose ,sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by /rik+ section #ecaa & ins]t+ ! foll[+3 #ecaa4 ,decl>ation ( purpose ,x is ! purpose ( ?is sub*apt] 7except section #ecae7 to-- 7#a7 prev5t ! laund]+ ( money & ! f9anc+ ( t]rorism ?r\gh ! e/abli%m5t by f9ancial in/itutions ( reasonably design$ risk-bas$ programs to combat money laund]+ & t]rori/ f9anc+2 7#b7 facilitate ! track+ ( money t has be5 s\rc$ ?r\gh crim9al activity or is int5d$ to promote crim9al or t]rori/ activity2 7#c7 protect ! integrity ( ! f9ancial sy/em & ! security ( ! ,unit$ ,/ates2 7#d7 e/abli% appropriate frameworks = in=mation %>+ among f9ancial in/itutions1 _! ag5t & s]vice provid]s1 _! regulatory au?orities1 associations ( f9ancial in/itutions1 ! ,f9ancial ,crimes ,en=cem5t ,network1 & law en=cem5t au?orities to id5tify1 /op1 & appreh5d money laund]]s & ^? :o f9ance t]rori/s2 & 7#e7 require c]ta9 reports or records :]e !y h a high degree ( usefulness 9 crim9al1 tax1 or regulatory inve/igations or proce$+s1 or 9 ! conduct ( intellig5ce or c\nt]9tellig5ce activities1 includ+ analysis1 to protect aga9/ t]rorism4 4 7b7 ,anti-,money laund]+ programs ,section #ecah ( title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subsection 7a77#a71 by /rik+ subsection 7b77#b7 & ins]t+ subsections 7b77#b7 & 7h77#d72 & 7#b7 9 subsection 7h7-- 7,a7 9 p>agraph 7#a7-- 7i7 by ins]t+ & t]rori/ f9anc+ aft] money laund]+2 & 7ii7 by ins]t+ & combat+ ! f9anc+ ( t]rorism aft] anti-money laund]+2 7,b7 9 p>agraph 7#b7-- 7i7 by /rik+ ,! ,secret>y & ins]t+ ! foll[+3 7,a7 ,9 g5]al ,! ,secret>y 2 & 7ii7 by add+ at ! end ! foll[+3 7,b7 ,factors ,9 e/abli%+ rules1 regulations & guidance "u subp>agraph 7,a71 & 9 sup]vis+ & exam9+ compliance ) ^? rules1 ! ,secret>y ( ! ,treasury1 & ! ,f$]al functional regulators 7z def9$ 9 section #eji ( ! ,gramm-,lea*-,bliley ,act 7#ab ,u4,s4,c4 #fhji77 %all take into acc\nt ! foll[+3 7i7 ,f9ancial in/itutions are sp5d+ private doll>s = a public & private b5efit4 7ii7 ,! ext5sion ( f9ancial s]vices to ! und]bank$ 9 ! ,unit$ ,/ates & abroad is a policy goal ( ! ,unit$ ,/ates4 7iii7 ,effective anti-money-laund]+ & combat+-!-f9anc+-(-t]rorism programs g5]ate significant public b5efits by prev5t+ ! fl[ ( illicit funds 9 ! f9ancial sy/em & by assi/+ law en=cem5t ) ! id5tification & prosecution ( p]sons attempt+ to laund] money & o!r illicit activity ?r\gh ! f9ancial sy/em4 7iv7 ,anti-money-laund]+ & combat+-!-f9anc+-(-t]rorism programs describ$ 9 p>agraph 7#a7 %\ld be reasonably design$ to assure & monitor compliance ) ! requirem5ts ( ?is sub*apt] & regulations issu$ h]eund]1 :i* %\ld be risk bas$1 includ+ t m f9ancial in/itution att5tion & res\rces %\ld be direct$ t[>d high] risk cu/om]s & activities1 consi/5t ) ! risk pr(ile ( a f9ancial in/itution1 r ?an l[] risk cu/om]s & activities4 2 & 7,c7 by add+ at ! end ! foll[+3 7#d7 ,priorities 7,a7 ,9 g5]al ,n lat] ?an #bgj days aft] ! date ( enactm5t ( ?is p>agraph1 ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,attorney ,g5]al1 ,f$]al functional regulators 7z def9$ 9 section #eji ( ! ,gramm-,lea*-,bliley ,act 7#ab ,u4,s4,c4 #fhji771 relevant ,/ate f9ancial regulators1 national security ag5cies1 & ! ,secret>y ( ,homel& ,security1 %all e/abli% & make public priorities = anti-money laund]+ & c\nt] t]rori/ f9anc+ policy4 7,b7 ,updates ,once e #d ye>s1 ! ,secret>y ( ! ,treasury %all1 9 consultation ) ! ,attorney ,g5]al1 ,f$]al functional regulators 7z def9$ 9 section #eji ( ! ,gramm-,lea*-,bliley ,act 7#ab ,u4,s4,c4 #fhji771 relevant ,/ate f9ancial regulators1 national security ag5cies1 & ! ,secret>y ( ,homel& ,security update ! priorities e/abli%$ "u subp>agraph 7,a74 7,c7 ,relation to national /rategy ,! ,secret>y ( ! ,treasury %all ensure t ! priorities e/abli%$ "u subp>agraph 7,a7 are consi/5t ) ! national /rategy = combat+ ! f9anc+ ( t]rorism & relat$ =ms ( illicit f9ance develop$ "u section #bfa ( ! ,c\nt]+ ,russian ,influ5ce 9 ,europe & ,eurasia ,act ( #bjag 7,public ,law #aae-dd2 #aca ,/at4 #icd74 7,d7 ,rulemak+ ,n lat] ?an #abj days aft] ! e/abli%m5t ( ! priorities "u subp>agraph 7,a71 ! ,secret>y ( ! ,treasury act+ ?r\gh ! ,(fice ( ,t]rorism & ,f9ancial ,intellig5ce1 9 consultation ) ! ,f$]al functional regulators 7z def9$ 9 section #eji ( ! ,gramm-,lea*-,bliley ,act 7#ab ,u4,s4,c4 #fhji771 & relevant ,/ate f9ancial regulators1 %all issue regulations to c>ry out ?is p>agraph4 7,e7 ,sup]vision & exam9ation ,! review by a f9ancial in/itution ( ! priorities e/abli%$ "u subp>agraph 7,a7 & ! incorporation ( ^? priorities1 z appropriate1 into ! risk-bas$ programs e/abli%$ by a f9ancial in/itution to meet obligations "u ?is sub*apt]1 ! ,,usa ,,patriot ,act 7,public ,law #ajg-ef2 #aae ,/at4 #bgb71 & o!r anti-money-laund]+ & c\nt]-t]rori/-f9anc+ laws & regulations %all be includ$ z a measure on :i* a f9ancial in/itution is sup]vis$ & exam9$ = compliance ) ^? obligations4 4 7c7 ,f9ancial ,crimes ,en=cem5t ,network ,section #caj7;b77#b7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7,k7 ,promulgate regulations "u section #ecah7;h77#d77;,d71 to implem5t ! gov]nm5t-wide anti-money-laund]+ & c\nt]-t]rori/-f9anc+ exam9ation & sup]vision priorities e/abli%$ by ! ,secret>y ( ! ,treasury "u section #ecah7;h77#d77;,a74 7,l7 ,communicate regul>ly ) f9ancial in/itutions & ,f$]al functional regulators t exam9e f9ancial in/itutions = compliance ) sub*apt] ,,ii ( *apt] #ec & regulations issu$ !reund] & law en=cem5t au?orities to expla9 ! ,gov]nm5t's anti-money-laund]+ & c\nt]-t]rori/-f9anc+ exam & sup]vision priorities4 7,m7 ,give & receive fe$back to & f f9ancial in/itutions & ,/ate bank sup]visors reg>d+ ! matt]s address$ 9 sub*apt] ,,ii ( *apt] #ec & regulations issu$ !reund]4 7,n7 ,ma9ta9 a money laund]+ & t]rori/ f9anc+ inve/igations team compris$ ( f9ancial exp]ts capable ( id5tify+1 track+1 & trac+ f9ancial crime networks & id5tify+ em]g+ ?reats to conduct & support ,f$]al civil & crim9al inve/igations4 7,o7 ,ma9ta9 an em]g+ te*nology team compris$ ( te*nology exp]ts to enc\rage ! developm5t ( & id5tify em]g+ te*nologies t c assi/ ! ,unit$ ,/ates ,gov]nm5t or f9ancial in/itutions c\nt] money laund]+ & t]rori/ f9anc+4 4 #ajb4 ,fin,c,e,n comp5sation ,section #caj ( title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 by r$esignat+ subsection 7d7 z subsection 7h72 & 7#b7 by ins]t+ aft] subsection 7c7 ! foll[+3 7d7 ,employee ,comp5sation ,9 fix+ ! comp5sation = employees ( ,fin,c,e,n1 ! ,secret>y %all-- 7#a7 fix su* comp5sation )\t reg>d to ! provisions ( *apt] #ea or sub*apt] ,,iii ( *apt] #ec ( title #e1 ,unit$ ,/ates ,code2 & 7#b7 ensure t su* comp5sation is comp>able to ! comp5sation provid$ by ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 ! ,bureau ( ,consum] ,f9ancial ,protection1 ! ,f$]al ,deposit ,insurance ,corporation1 ! ,national ,cr$it ,union ,adm9i/ration1 & ! ,(fice ( ! ,comptroll] ( ! ,curr5cy4 4 #ajc4 ,subcommittee on ,innovation2 inve/igator rese>* hub 7a7 ,subcommittee on ,innovation ,section #aefd ( ! ,annunzio-,wylie ,anti-,money ,laund]+ ,act 7#ca ,u4,s4,c4 #ecaa note7 is am5d$ by add+ at ! end ! foll[+3 7d7 ,subcommittee on innovation 7#a7 ,9 g5]al ,!re %all be )9 ! ,bank ,secrecy ,act ,advisory ,gr\p a subcommittee to be kn[n z ! ,subcommittee on ,innovation to-- 7,a7 advise ! ,secret>y ( ! ,treasury reg>d+ means by :i* ! ,dep>tm5t ( ! ,treasury1 ,fin,c,e,n1 & ! ,f$]al functional regulators c mo/ effectively enc\rage & support te*nological innovation 9 ! area ( anti-money laund]+2 & 7,b7 r$uce z mu* z is possible ob/acles to innovation t may arise f exi/+ regulations1 guidance1 & exam9ation practices relat$ to compliance ( f9ancial in/itutions ) ! ,bank ,secrecy ,act4 7#b7 ,memb]%ip 7,a7 ,9 g5]al ,! subcommittee e/abli%$ "u p>agraph 7#a7 %all consi/ ( ! repres5tatives ( ! heads ( ! ,f$]al functional regulators1 a repres5tative cross-section ( f9ancial in/itutions subject to ! ,bank ,secrecy ,act1 law en=cem5t1 & ,fin,c,e,n4 7,b7 ,requirem5ts ,ea* ag5cy repres5tative describ$ 9 subp>agraph 7,a7 %all be an individual :o has demon/rat$ k & compet5ce conc]n+ ! application ( ! ,bank ,secrecy ,act4 4 7b7 ,inve/igator rese>* hub ,section #caj ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #ajb ( ?is ,act1 is am5d$ by add+ aft] subsection 7d7 ! foll[+3 7e7 ,inve/igative exp]ts 7#a7 ,9 g5]al ,fin,c,e,n %all hire & ma9ta9 a team ( f9ancial exp]ts capable ( id5tify+1 track+1 & trac+ money laund]+ & t]rori/-f9anc+ networks 9 ord] to conduct & support civil & crim9al anti-money-laund]+ & combat+-!-f9anc+-(-t]rorism inve/igations conduct$ by ! ,unit$ ,/ates ,gov]nm5t1 except t ! ,inspector ,g5]al ( ! ,dep>tm5t ( ! ,treasury %all be responsible = hir+ & ma9ta9+ ^? exp]ts ) respect to audits & inspections ( ! access & use ( data describ$ 9 sub*apt] ,,ii ( *apt] #ec4 7#b7 ,inve/igative res\rce hub ,fin,c,e,n %all1 ^u a reasonable reque/ f a ,unit$ ,/ates ,gov]nm5t ag5cy1 require f9ancial exp]ts to1 9 collaboration ) ! reque/+ ag5cy1 inve/igate ! pot5tial anti-money-laund]+ & c\nt]+-!-f9anc+-(-t]rorism activity t prompt$ ! reque/4 7#c7 ,/aff+ ,fin,c,e,n %all hire or reta9 full-"t employees1 includ+ tra9$ inve/igative p]sonnel accord$ crim9al au?ority & exp]i5c$ ) sub*apt] ,,ii ( *apt] #ec to p]=m ! functions contemplat$ by ?is subsection1 except z provid$ 9 p>agraph 7#a74 4 #ajd4 ,e/abli%m5t ( ,fin,c,e,n f9ancial in/itution liaison ,section #caj ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by sections #ajb & #ajc ( ?is ,act1 is am5d$ by add+ aft] subsection 7e7 ! foll[+3 7f7 ,(fice ( ! ,f9ancial ,in/itution ,liaison e/abli%$ ,!re is e/abli%$ )9 ,fin,c,e,n ! ,(fice ( ! ,f9ancial ,in/itution ,liaison 79 ?is subsection ref]r$ to z ! ,(fice74 7#a7 ,9 g5]al ,! head ( ! ,(fice %all be ! ,liaison1 :o %all-- 7,a7 report directly to ! ,director2 & 7,b7 be appo9t$ by ! ,director1 f among individuals hav+ exp]i5ce or famili>ity ) anti-money-laund]+-program exam9ations1 sup]vision & en=cem5t1 & prior employm5t ) f9ancial in/itutions h&l+ su* matt]s4 7#b7 ,comp5sation ,! annual rate ( pay = ! ,liaison %all be equal to ! highe/ rate ( annual pay = o!r s5ior executives :o report to ! ,director4 7#c7 ,/aff ( (fice ,! ,liaison1 ) ! concurr5ce ( ! ,director1 may reta9 or employ c\nsel1 rese>* /aff1 & s]vice /aff1 z ! ,liaison deems necess>y to c>ry out ! functions1 p[]s1 & duties ( ! ,(fice4 7#d7 ,functions ( ! liaison 7,a7 ,9 g5]al ,! ,liaison %all-- 7i7 receive fe$back f f9ancial in/itutions & bank exam9]s reg>d+ _! exam9ations "u ! ,bank ,secrecy ,act & communicate t fe$back to ,fin,c,e,n1 ! ,f$]al functional regulators1 & ,/ate bank sup]visors2 7ii7 help promote coord9ation & consi/5cy ( sup]visory guidance f ,fin,c,e,n1 ! ,f$]al functional regulators1 & ,/ate bank sup]visors reg>d+ ! ,bank ,secrecy ,act2 7iii7 act z a liaison betwe5 f9ancial in/itutions & _! ,f$]al functional regulators & ,/ate bank sup]visors ) respect to matt]s involv+ ! ,bank ,secrecy ,act & regulations issu$ !reund]2 7iv7 e/abli% safegu>ds to ma9ta9 ! confid5tiality ( communications betwe5 ! p]sons describ$ 9 subp>agraph 7,b7 & ! ,liaison2 7v7 analyze ! pot5tial impact on f9ancial in/itutions ( propos$ regulations ( ,fin,c,e,n2 & 7vi7 to ! ext5t practicable1 propose to ,fin,c,e,n *anges 9 ! regulations1 guidance1 or ord]s ( ,fin,c,e,n & to ,congress any legislative or adm9i/rative *anges t may be appropriate to mitigate problems id5tifi$ "u ?is p>agraph4 7,b7 ,rule ( con/ruction ,no?+ 9 ?is p>agraph may be con/ru$ to p]mit ! ,liaison to h au?ority ov] sup]vision1 exam9ation1 or en=cem5t processes4 7#e7 ,access to docum5ts ,fin,c,e,n %all1 to ! ext5t practicable & consi/5t ) appropriate safegu>ds = s5sitive en=cem5t-relat$1 pre-decisional1 or delib]ative in=mation1 ensure t ! ,liaison has full access to ! docum5ts ( ,fin,c,e,n1 z necess>y to c>ry out ! functions ( ! ,(fice4 7#f7 ,annual reports 7,a7 ,9 g5]al ,n lat] ?an ,june #cj ( ea* ye> aft] #bjai1 ! ,liaison %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report on ! objectives ( ! ,liaison = ! foll[+ fiscal ye> & ! activities ( ! ,liaison dur+ ! imm$iately prec$+ fiscal ye>4 7,b7 ,cont5ts ,ea* report requir$ "u subp>agraph 7,a7 %all include-- 7i7 appropriate /ati/ical in=mation & full & sub/antive analysis2 7ii7 in=mation on /eps t ! ,liaison has tak5 dur+ ! report+ p]iod to address fe$back receiv$ by f9ancial in/itutions & bank exam9ation p]sonnel relat$ to exam9ations "u ! ,bank ,secrecy ,act2 7iii7 recomm5dations = su* adm9i/rative & legislative actions z may be appropriate to resolve problems enc\nt]$ by f9ancial in/itutions or bank exam9ation p]sonnel2 & 7iv7 any o!r in=mation1 z det]m9$ appropriate by ! ,liaison4 7,c7 ,s5sitive in=mation ,not)/&+ subp>agraph 7,d71 ,fin,c,e,n %all review ! report li/$ 9 subp>agraph 7,a7 to ensure ! report does n disclose s5sitive in=mation4 7,d7 ,indep5d5ce 7i7 ,9 g5]al ,ea* report requir$ "u ?is subsection %all be provid$ directly to ! ,committees li/$ 9 subp>agraph 7,a7 )\t any prior review or comm5t f ,fin,c,e,n1 ! ,director1 any ,f$]al functional regulator1 any ,/ate bank sup]visor1 or ! ,(fice ( ,managem5t & ,budget4 7ii7 ,rule ( con/ruction ,no?+ 9 clause 7i7 may be con/ru$ to preclude ,fin,c,e,n or any o!r dep>tm5t or ag5cy f review+ a report requir$ "u ?is subsection = ! sole purpose ( protect+-- 7,i7 s5sitive in=mation obta9$ by a law en=cem5t ag5cy2 & 7,,ii7 classifi$ in=mation4 7,e7 ,classifi$ in=mation ,no report requir$ "u subp>agraph 7,a7 may conta9 classifi$ in=mation4 4 #aje4 ,int]ag5cy ,,aml-,,cft p]sonnel rotation program 7a7 ,purpose ,! purpose ( ?is section is to increase ! effici5cy & effectiv5ess ( ! ,f$]al ,gov]nm5t by fo/]+ great] int]ag5cy exp]i5ce among ,f$]al ,gov]nm5t p]sonnel on anti-money laund]+ & c\nt]-t]rori/ f9anc+ matt]s4 7b7 ,def9ition ,9 ?is section1 ! t]m ,,aml-,,cft ,int]ag5cy ,community ( ,int]e/ means a set ( positions 9 ! ,f$]al ,gov]nm5t t1 z designat$ by ! ,secret>y1 ! heads ( ! ,f$]al functional regulators1 ! ,attorney ,g5]al1 ! ,director ( ! ,f$]al ,bureau ( ,inve/igation1 ! ,secret>y ( ,homel& ,security1 ! ,director ( ,national ,intellig5ce1 ! ,secret>y ( ,def5se1 & ! heads ( su* o!r ag5cies z ! ,secret>y det]m9es to be appropriate-- 7#a7 spans multiple ag5cies ( ! ,f$]al ,gov]nm5t2 7#b7 has significant responsibility = sub/antive1 functional1 or regional subject areas relat$ to combat+ money laund]+ or f9anc+ ( t]rorism & w\ld b5efit f an integrat$ approa* or activities across multiple ag5cies2 & 7#c7 includes positions )9 ,fin,c,e,n1 ! ,dep>tm5t ( ! ,treasury1 ! ,dep>tm5t ( ,ju/ice1 ! ,f$]al ,bureau ( ,inve/igation1 ! ,dep>tm5t ( ,homel& ,security1 ! ,dep>tm5t ( ,def5se1 &1 if agre$ to by ! heads ( su* ag5cies1 positions )9 any ,f$]al functional regulator4 7c7 ,program e/abli%$ 7#a7 ,9 g5]al ,n lat] ?an #bgj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y & repres5tatives ( ! ,f$]al functional regulators1 ! ,dep>tm5t ( ,ju/ice1 ! ,f$]al ,bureau ( ,inve/igation1 ! ,dep>tm5t ( ,homel& ,security1 ! ,dep>tm5t ( ,def5se1 & su* o!r ag5cies z ! ,secret>y det]m9es to be appropriate1 %all develop & issue an ,,aml-,,cft p]sonnel /rategy provid+ policies1 processes1 & proc$ures = a program enabl+ ! int]ag5cy rotation ( p]sonnel among positions )9 ! ,,aml-,,cft ,int]ag5cy ,community ( ,int]e/4 7#b7 ,requirem5ts ,! /rategy requir$ by p>agraph 7#a7 %all1 at a m9imum-- 7,a7 id5tify a specific ,,aml-,,cft ,int]ag5cy ,community ( ,int]e/ = ! purpose ( c>ry+ out ! program2 7,b7 designate ag5cies to be includ$ or exclud$ f ! program2 7,c7 def9e categories ( positions to be cov]$ by ! program2 7,d7 e/abli% processes by :i* ! heads ( relevant ag5cies may id5tify-- 7i7 positions )9 an ,,aml-,,cft ,int]ag5cy ,community ( ,int]e/ t are available = rotation "u ! program2 & 7ii7 individual employees :o are available to p>ticipate 9 rotational assignm5ts "u ! program2 & 7,e7 e/abli% proc$ures = ! program1 includ+-- 7i7 any m9imum or maximum p]iods ( s]vice = p>ticipation 9 ! program2 7ii7 any tra9+ & educational requirem5ts associat$ ) p>ticipation 9 ! program2 7iii7 any pr]equisites or requirem5ts = p>ticipation 9 ! program2 & 7iv7 appropriate p]=mance measures1 report+ requirem5ts1 & o!r acc\ntability devices = ! evaluation ( ! program4 7d7 ,program requirem5ts ,! policies1 processes1 & proc$ures e/abli%$ pursuant to subsection 7c7 %all1 at a m9imum1 provide t-- 7#a7 dur+ ea* ( ! fir/ #d fiscal ye>s aft] ! fiscal ye> 9 :i* ?is ,act is enact$-- 7,a7 ! int]ag5cy rotation program %all be c>ri$ out 9 at lea/ #d ag5cies p>ticipat+ 9 ! ,,aml-,,cft ,int]ag5cy ,community ( ,int]e/2 & 7,b7 n few] ?an #bj employees 9 ! ,f$]al ,gov]nm5t %all be assign$ to p>ticipate 9 ! int]ag5cy p]sonnel rotation program2 7#b7 ! p>ticipation ( an employee 9 ! int]ag5cy rotation program %all require ! cons5t ( ! head ( ! ag5cy & %all be volunt>y on ! "p ( ! employee2 7#c7 employees select$ to p]=m int]ag5cy rotational s]vice are select$ 9 a fully op5 & competitive mann] t is consi/5t ) ! m]it sy/em pr9ciples set =? 9 p>agraphs 7#a7 & 7#b7 ( section #bcja7;b7 ( title #e1 ,unit$ ,/ates ,code1 unless ! ,,aml-,,cft ,int]ag5cy ,community ( ,int]e/ position is o!rwise exempt "u ano!r provision ( law2 7#d7 an employee p]=m+ s]vice 9 a position 9 ano!r ag5cy pursuant to ! program e/abli%$ "u ?is section %all be entitl$ to return1 )9 a reasonable p]iod ( "t aft] ! end ( ! p]iod ( s]vice1 to ! position held by ! employee1 or a correspond+ or high] position1 9 ! employ+ ag5cy ( ! employee2 7#e7 an employee p]=m+ int]ag5cy rotational s]vice %all h all ! rights t w\ld be available to ! employee if ! employee 7 detail$ or assign$ "u a provision ( law o!r ?an ?is section f ! ag5cy employ+ ! employee to ! ag5cy 9 :i* ! position 9 :i* ! employee is s]v+ is locat$2 & 7#f7 an employee p>ticipat+ 9 ! program %all receive p]=mance evaluations f (ficials ( ! employ+ ag5cy ( ! employee t are bas$ on input f ! sup]visors ( ! employee dur+ ! s]vice ( ! employee 9 ! program t are-- 7,a7 bas$ prim>ily on ! contribution ( ! employee to ! "w ( ! ag5cy 9 :i* ! employee p]=m$ ! s]vice2 & 7,b7 provid$ ! same weight 9 ! receipt ( promotions & o!r rew>ds by ! employee f ! employ+ ag5cy z p]=mance evaluations = s]vice 9 ! employ+ ag5cy4 7e7 ,selection ( individuals ,to fill s5ior positions ,! head ( ea* ag5cy p>ticipat+ 9 ! program e/abli%$ pursuant to subsection 7c7 %all ensure t1 9 select+ individuals to fill s5ior positions )9 ! ,,aml-,,cft ,int]ag5cy ,community ( ,int]e/1 ! ag5cy gives a /rong pref]5ce to individuals :o h p]=m$ int]ag5cy rotational s]vice )9 ! ,,aml-,,cft ,int]ag5cy ,community ( ,int]e/ pursuant to su* program4 #ajf4 ,subcommittee on ,privacy & ,civil ,lib]ties ,section #aefd ( ! ,annunzio-,wylie ,anti-,money ,laund]+ ,act 7#ca ,u4,s4,c4 #ecaa note71 z am5d$ by section #ajc ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 7e7 ,subcommittee on ,privacy & ,civil ,lib]ties 7#a7 ,9 g5]al ,!re %all be )9 ! ,bank ,secrecy ,act ,advisory ,gr\p a subcommittee to be kn[n z ! ,subcommittee on ,privacy & ,civil ,lib]ties1 to advise ! ,secret>y ( ! ,treasury reg>d+ ! civil lib]ties & privacy implications ( regulations1 guidance1 in=mation %>+ programs1 & ! exam9ation = compliance ) & en=cem5t ( ! provisions ( ! ,bank ,secrecy ,act4 7#b7 ,memb]%ip 7,a7 ,9 g5]al ,! subcommittee e/abli%$ "u p>agraph 7#a7 %all consi/ ( ! repres5tatives ( ! heads ( ! ,f$]al functional regulators1 a repres5tative cross-section ( f9ancial in/itutions subject to ! ,bank ,secrecy ,act1 law en=cem5t1 & ,fin,c,e,n4 7,b7 ,requirem5ts ,ea* ag5cy repres5tative describ$ 9 subp>agraph 7,a7 %all be an individual :o has demon/rat$ k & compet5ce conc]n+ ! application ( ! ,bank ,secrecy ,act & famili>ity ) & exp]tise 9 applicable privacy laws4 7f7 ,def9itions ,9 ?is section3 7#a7 ,bank ,secrecy ,act ! t]m ,bank ,secrecy ,act has ! mean+ giv5 ! t]m 9 section #c ( ! ,,illicit ,,ca% ,act4 7#b7 ,f$]al functional regulator ,! t]m ,f$]al functional regulator has ! mean+ giv5 ! t]m 9 section #eji ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fhji74 7#c7 ,fin,c,e,n ,! t]m ,fin,c,e,n means ! ,f9ancial ,crimes ,en=cem5t ,network ( ! ,dep>tm5t ( ! ,treasury4 7#d7 ,f9ancial in/itution ,! t]m f9ancial in/itution has ! mean+ giv5 ! t]m 9 section #ecab ( title #ca1 ,unit$ ,/ates ,code4 4 #ajg4 ,int]national coord9ation ,! ,secret>y %all "w ) ! =eign c\nt]p>ts ( ! ,secret>y1 includ+ ?r\gh ! ,f9ancial ,action ,task ,=ce1 ! ,int]national ,monet>y ,fund1 ! ,_w ,bank1 & ! ,unit$ ,nations1 to promote /rong] anti-money laund]+ frameworks & en=cem5t ( anti-money laund]+ laws4 #ajh4 ,/r5g!n+ ,fin,c,e,n 7a7 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,! mission ( ,fin,c,e,n is to safegu>d ! f9ancial sy/em f illicit use1 combat money laund]+1 & promote national security ?r\gh ! collection1 analysis1 & dissem9ation ( f9ancial intellig5ce & /rategic use ( f9ancial au?orities4 7#b7 ,9 its mission to safegu>d ! f9ancial sy/em f ! abuses ( f9ancial crime1 includ+ t]rori/ f9anc+1 money laund]+1 & o!r illicit activity1 ! ,unit$ ,/ates %\ld prioritize work+ ) p>tn]s 9 ,f$]al1 ,/ate1 local1 ,tribal1 & =eign law en=cem5t au?orities4 7#c7 ,! ,f$]al ,bureau ( ,inve/igation has /at$ t1 s9ce ! t]ror attacks on ,septemb] #aa1 #bjja1 ,! ?reat l&scape has exp&$ consid]ably1 ?\gh x is important to note t ! m traditional ?reat pos$ by al ,qa$a & its affiliates is /ill pres5t & active4 ,! ?reat ( dome/ic t]rorism also rema9s p]si/5t ov]all1 ) actors cross+ ! l9e f ,fir/ ,am5dm5t protect$ rights to committ+ crimes to fur!r _! political ag5da44 7#d7 ,al?\gh ! use & trad+ ( virtual curr5cies are legal practices1 "s t]rori/s & crim9als1 includ+ int]national crim9al organizations1 seek to exploit vuln]abilities 9 ! global f9ancial sy/em & are increas+ly us+ em]g+ paym5t me?ods su* z virtual curr5cies to move illicit funds4 7#e7 ,9 c>ry+ out its mission1 ,fin,c,e,n %\ld prioritize all =ms ( t]rorism & em]g+ me?ods ( t]rorism & illicit f9ance4 7b7 ,/r5g!n+ ,fin,c,e,n ,section #caj7;b77#b7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subp>agraphs 7,c71 7,e71 & 7,f71 by ins]t+ ,tribal1 aft] local1 ea* place ! t]m appe>s2 & 7#b7 9 subp>agraph 7,c77vi71 by /rik+ int]national4 ,,ii ,improv+ ,,aml-,,cft communication1 ov]sight1 & processes #bja4 ,annual report+ requirem5ts 7a7 ,annual report ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 & annually !reaft]1 ! ,attorney ,g5]al1 9 consultation ) ,f$]al law en=cem5t ag5cies & ! ,director ( ,national ,intellig5ce1 %all1 to ! ext5t practicable at ! discretion ( ! ,attorney ,g5]al1 provide to ! ,secret>y /ati/ics1 metrics1 & o!r in=mation on ! use ( data d]iv$ f f9ancial in/itutions report+ "u ?is title1 includ+-- 7#a7 ! frequ5cy ) :i* su* data conta9s actionable in=mation t leads to fur!r law en=cem5t proc$ures1 includ+ ! use ( a subpo5a1 w>rant1 or o!r legal process1 or to actions tak5 by intellig5ce1 def5se1 or homel& security ag5cies2 7#b7 calculations ( ! "t betwe5 :5 data is report$ by a f9ancial in/itution & :5 x is us$ by law en=cem5t1 intellig5ce1 def5se1 or homel& security ag5cies1 :e!r ?r\gh ! use ( a subpo5a1 w>rant or o!r legal process1 or actions2 7#c7 ! value ( ! transactions associat$ ) su* data1 includ+ :e!r ! suspici\s acc\nts 7 held by legal entities or natural p]sons1 & :e!r !re are tr5ds & patt]ns 9 cross-bord] transactions to c]ta9 c\ntries2 7#d7 ! numb] ( legal & natural p]sons id5tifi$ by su* data2 7#e7 in=mation on ! ext5t to :i* arre/s1 indictm5ts1 convictions1 or crim9al pleas1 civil en=cem5t or =feiture actions1 or actions by intellig5ce1 def5se1 or homel& security ag5cies result f ! use ( su* data2 & 7#f7 data on ! inve/igations c>ri$ out by ,/ate & ,f$]al au?orities4 7b7 ,qu9qu5nial report ,e #e ye>s aft] ! date ( enactm5t ( ?is ,act1 ! report describ$ 9 subsection 7a7 %all include a section describ+ ! use ( data d]iv$ f f9ancial in/itution report+ "u ?is sub*apt] ov] ! previ\s #e ye>s1 includ+ describ+ long-t]m tr5ds & provid+ long-t]m /ati/ics1 metrics1 & o!r in=mation4 7c7 ,tr5ds1 patt]ns1 & ?reats ,! report describ$ 9 subsection 7a7 & ! section describ$ 9 subsection 7b7 %all conta9 a description ( retrospective tr5ds & em]g+ patt]ns & ?reats 9 money laund]+ & t]rori/ f9anc+1 includ+ national & regional tr5ds1 patt]ns1 & ?reats relevant to su* classes ( f9ancial in/itutions t ! ,attorney ,g5]al det]m9es appropriate4 7d7 ,use ( report in=mation ,! ,secret>y %all use ! in=mation report$ "u subsections 7a71 7b71 & 7c7-- 7#a7 to help assess ! usefulness ( ,bank ,secrecy ,act report+ to crim9al & civil law en=cem5t & to intellig5ce1 def5se1 & homel& security ag5cies2 7#b7 to enhance fe$back & communications ) f9ancial in/itutions & o!r entities subject to ,bank ,secrecy ,act requirem5ts1 includ+ ?r\gh provid+ m detail 9 ! reports produc$ "u section #cad7;d7 ( ! ,,usa ,,patriot ,act 7#ca ,u4,s4,c4 #ecaa note72 7#c7 to assi/ ,fin,c,e,n 9 consid]+ revisions to ! report+ requirem5ts promulgat$ "u section #cad7;d7 ( ! ,,usa ,,patriot ,act 7#ca ,u4,s4,c4 #ecaa note72 & 7#d7 = any o!r purpose ! ,secret>y det]m9es is appropriate4 #bjb4 ,law en=cem5t fe$back on suspici\s activity reports 7a7 ,fe$back ,! /aff ( ,fin,c,e,n %all1 to ! ext5t practicable1 p]iodically solicit fe$back f individuals designat$ "u section #ecah7;h77#a7 ( title #ca1 ,unit$ ,/ates ,code1 f a v>iety ( f9ancial in/itutions repres5t+ a cross-section ( ! report+ indu/ry to review ! suspici\s activity reports fil$ by ! f9ancial in/itutions & discuss tr5ds 9 suspici\s activity obs]v$ by ,fin,c,e,n4 7#a7 ,fe$back requir$ ,! /aff ( ,fin,c,e,n %all disclose to ! p]sons designat$ "u section #ecah7;h77#a7 ( title #ca1 ,unit$ ,/ates ,code1 :at actions h be5 tak51 if any1 by ,f$]al or ,/ate crim9al or civil law en=cem5t or by def5se or homel& security ag5cies ) respect to ! suspici\s activity reports fil$ by ! f9ancial in/itution dur+ ! previ\s p]iod4 7#b7 ,exception = ongo+ inve/igations ,fin,c,e,n %all n be requir$ to disclose to ! f9ancial in/itution any in=mation "u subsection 7a77#a7 t c\ld jeop>dize an ongo+ inve/igation or national security4 7#c7 ,ma9t5ance ( /ati/ics ,fin,c,e,n %all keep records ( all su* actions tak5 "u p>agraph 7#a7 to assi/ ) ! production ( ! reports describ$ 9 section #bja & = o!r purposes4 7b7 ,coord9ation ) ,f$]al functional regulators & ,/ate bank sup]visors ,any meet+ describ$ 9 subsection 7a7 %all be conduct$ 9 ! pres5ce ( ! ,f$]al functional regulators or ! ,/ate bank sup]visor ( ! f9ancial in/itution &1 if applicable1 dur+ ! regul>ly s*$ul$ exam9ation ( ! f9ancial in/itution by ! ,f$]al functional regulator or ,/ate bank sup]visor4 7c7 ,coord9ation ) dep>tm5t ( ju/ice ,! in=mation disclos$ by ,fin,c,e,n "u subsection 7a7 %all include in=mation f ! ,dep>tm5t ( ,ju/ice reg>d+ its review & use ( suspici\s activity reports fil$ by ! f9ancial in/itutions dur+ ! previ\s p]iod & any tr5ds 9 suspici\s activity obs]v$ by ! ,dep>tm5t ( ,ju/ice1 & su* in=mation %all include in=mation specifically relevant to reports fil$ by su* f9ancial in/itution 9 ! previ\s p]iod & o!r in=mation tailor$ to su* f9ancial in/itution4 #bjc4 ,/reaml9+ requirem5ts = curr5cy transaction reports & suspici\s activity reports 7a7 ,review ,! ,secret>y1 9 consultation ) ! ,attorney ,g5]al1 ,f$]al law en=cem5t ag5cies1 ! ,director ( ,national ,intellig5ce1 ! ,secret>y ( ,def5se1 ! ,secret>y ( ,homel& ,security1 ! ,f$]al functional regulators1 ,/ate bank sup]visors1 & o!r relevant /akehold]s1 %all und]take a =mal review ( ! curr5t f9ancial in/itution report+ requirem5ts1 includ+ ! processes us$ to submit reports1 "u ! ,bank ,secrecy ,act1 regulations implem5t+ t ,act1 & relat$ guidance1 & make *anges to !m to r$uce unnecess>ily burd5some regulatory requirem5ts & ensure t ! in=mation provid$ is highly useful to law en=cem5t1 intellig5ce1 or national security matt]s1 z set =? 9 section #ecaa ( title #ca1 ,unit$ ,/ates ,code4 7b7 ,cont5ts ,! review requir$ "u subsection 7a7 %all include a /udy (-- 7#a7 :e!r ! circum/ances "u :i* a f9ancial in/itution det]m9es :e!r to file a cont9u+ suspici\s activity report1 includ+ insid] abuse1 or ! processes foll[$ by a f9ancial in/itution 9 det]m9+ :e!r to file a cont9u+ suspici\s activity report1 or bo?1 %\ld be adju/$2 7#b7 :e!r diff]5t ?re%olds %\ld apply to diff]5t categories ( activities2 7#c7 ! fields designat$ z critical on ! suspici\s activity report =m & :e!r ! numb] or nature ( ! fields %\ld be adju/$2 7#d7 ! categories1 types1 & *>act]i/ics ( suspici\s activity reports & curr5cy transaction reports t are ( ! greate/ value to1 & t be/ support1 inve/igative priorities ( law en=cem5t & national security p]sonnel2 7#e7 ! increas$ use or expansion ( exemption provisions to r$uce curr5cy transaction reports t are ( little or no value to law en=cem5t ef=ts2 7#f7 ! mo/ appropriate ways to promote f9ancial inclusion & address ! adv]se consequ5ces ( f9ancial in/itutions de-risk+ entire categories ( high-risk relation%ips1 includ+ *>ities1 embassy acc\nts1 & money s]vice bus9esses1 z def9$ 9 section #ajaj4ajj7;ff7 ( title #ca1 ,code ( ,f$]al ,regulations1 & c]ta9 gr\ps ( correspond5t banks2 7#g7 ! curr5t f9ancial in/itution report+ requirem5ts "u ! ,bank ,secrecy ,act & regulations & guidance implem5t+ t ,act2 7#h7 :e!r ! process = ! electronic submission ( reports c\ld be improv$ = bo? f9ancial in/itutions & law en=cem5t1 includ+ by all[+ great] integration betwe5 f9ancial in/itution sy/ems & ! electronic fil+ sy/em to all[ = automatic population ( report fields & ! automatic submission ( transaction data = suspici\s transactions2 7#i7 ! appropriate confid5tiality ( p]sonal in=mation2 7#aj7 h[ to improve ! cross-ref]5c+ ( individuals or entities op]at+ at multiple f9ancial in/itutions & across int]national bord]s2 & 7#aa7 any o!r item ! ,secret>y det]m9es is appropriate4 7c7 ,public comm5t ,! ,secret>y %all solicit public comm5t z "p ( ! review contemplat$ 9 subsection 7a74 7d7 ,report ,n lat] ?an ! end ( ! #a-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y1 9 consultation ) law en=cem5t1 %all submit to ,congress a report t conta9s all f9d+s & det]m9ations made 9 c>ry+ out ! review requir$ "u subsection 7a7 & propose rulemak+s to implem5t _! f9d+s4 #bjd4 ,curr5cy transaction report & suspici\s activity report ?re%olds review 7a7 ,review ( ?re%olds = c]ta9 curr5cy transaction & suspici\s activity reports ,! ,secret>y1 9 consultation ) ! ,attorney ,g5]al & ! ,director ( ,national ,intellig5ce1 ! ,secret>y ( ,def5se1 & ! ,secret>y ( ,homel& ,security1 %all /udy & det]m9e :e!r ! doll> ?re%olds1 includ+ aggregate ?re%olds1 conta9$ 9 sections #ecac1 #ecca1 & #ecah7;g7 ( title #ca1 ,unit$ ,/ates ,code1 includ+ regulations issu$ !reund]1 %\ld be adju/$4 7b7 ,consid]ations ,9 mak+ ! det]m9ations describ$ 9 subsection 7a71 ! ,secret>y & ! ,attorney ,g5]al %all consid]-- 7#a7 ! effects on law en=cem5t1 intellig5ce1 def5se1 & homel& security1 f adju/+ ! ?re%olds2 7#b7 ! co/s likely to be incurr$ or sav$ by f9ancial in/itutions2 7#c7 ! con=mance ( ! ,unit$ ,/ates ) int]national norms & /&>ds to c\nt] money laund]+ & ! f9anc+ ( t]rorism2 & 7#d7 any o!r factor ! ,secret>y1 ,director ( ,national ,intellig5ce1 & ! ,attorney ,g5]al consid]s relevant4 7c7 ,public comm5t ,! ,secret>y %all solicit public comm5t z "p ( ! review contemplat$ 9 subsection 7a74 7d7 ,report & rulemak+s ,n lat] ?an ! end ( ! #a-ye> p]iod beg9n+ on ! date ( enactm5t ( ?is ,act1 ! ,secret>y1 9 consultation ) ! ,attorney ,g5]al1 ! intellig5ce community1 ! ,secret>y ( ,def5se1 & ! ,secret>y ( ,homel& ,security1 %all publi% a report ( ! f9d+s f ! review describ$ 9 subsection 7a7 & recomm5d rulemak+s to implem5t ! f9d+s4 #bje4 ,review ( regulations & guidance 7a7 ,9 g5]al ,! ,secret>y & ! ,f$]al functional regulators1 9 consultation ) ,f$]al f9ancial regulators1 ! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil1 ! ,attorney ,g5]al1 ,f$]al law en=cem5t ag5cies1 ! ,director ( ,national ,intellig5ce1 ! ,secret>y ( ,def5se1 ! ,secret>y ( ,homel& ,security1 & ! ,commission] ( ! ,int]nal ,rev5ue ,s]vice1 %all ea* und]take a =mal review ( ! regulations implem5t+ ! ,bank ,secrecy ,act1 & guidance relat$ to t ,act1 to id5tify ^? regulations & guidance t may be outdat$1 r$undant1 unnecess>ily burd5some1 or o!rwise d n promote a risk-bas$ anti-money-laund]+ compliance & c\nt]+-!-f9anc+-(-t]rorism regime = f9ancial in/itutions1 or t d n con=m ) ! commitm5ts ( ! ,unit$ ,/ates to meet int]national /&>ds to combat money laund]+1 f9anc+ ( t]rorism1 or tax evasion1 & make appropriate *anges to ^? regulations & guidance4 7b7 ,public comm5t ,! ,secret>y %all solicit public comm5t z "p ( ! review requir$ "u subsection 7a74 7c7 ,report ,n lat] ?an ! end ( ! #a-ye> p]iod beg9n+ on ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y1 ! ,f$]al functional regulators1 ! ,f$]al ,f9ancial ,in/itutions ,exam9ation ,c\ncil1 & ! ,int]nal ,rev5ue ,s]vice %all submit to ,congress "o or m reports t conta9 all f9d+s & det]m9ations made 9 c>ry+ out ! review requir$ "u subsection 7a74 #bjf4 ,p5alty coord9ation 7a7 ,coord9ation on p5alties ,prior to any ,f$]al functional regulator1 ,fin,c,e,n1 or ! ,dep>tm5t ( ,ju/ice1 includ+ any organizational unit !re(1 issu+ a f9e or civil money p5alty1 ) respect to an entity to address any actual or alleg$ violation ( any provision ( ! ,bank ,secrecy ,act or section #h7s7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7s77 or any unsafe or uns\nd practice t result$ 9 any su* actual or alleg$ violation1 su* ,f$]al dep>tm5t or ag5cy %all endeavor to coord9ate its p5alty ) all relevant ,f$]al dep>tm5ts & ag5cies & ,/ate law en=cem5t & f9ancial regulators contemplat+ a p5alty ) respect to ! same or simil> conduct & attempt to develop a compreh5sive or coord9at$ p5alty or set ( p5alties to avoid duplicative f9es1 p5alties1 & o!r ord]s or actions4 7b7 ,exception ,subsection 7a7 %all n apply if-- 7#a7 a ,f$]al or ,/ate f9ancial regulator det]m9es t comply+ ) subsection 7a7 is impractical = safety or s\ndness reasons2 or 7#b7 a ,f$]al law en=cem5t or a national security ag5cy det]m9es t comply+ ) subsection 7a7 is impractical = ,f$]al law en=cem5t or national security reasons or = purposes relat$ to ! adm9i/ration ( ! ,bank ,secrecy ,act4 7c7 ,rule ( con/ruction ,no?+ 9 ?is section %all be con/ru$ z limit+ ! am\nt ( a f9e or ! type ( p5alty t may be issu$ by any ,f$]al or ,/ate entity ) au?ority to issue a f9e or p5alty4 7d7 ,no rights ,no?+ 9 ?is section provides p]sons ) any rights or privileges1 includ+ a private "r ( action or an affirmative def5se1 & no det]m9ation or failure to make a det]m9ation by any ,f$]al entity or (fic] "u ?is section %all be reviewable by a c\rt ( law4 #bjg4 ,coop]ation ) law en=cem5t 7a7 ,safe h>bor ) respect to keep op5 directives 7#a7 ,9 g5]al 7,a7 ,am5dm5t to title #ca ,sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 #eccc4 ,safe h>bor ) respect to keep op5 directives 7a7 ,9 g5]al ,) respect to a cu/om] acc\nt or cu/om] transaction ( a f9ancial in/itution1 if a ,f$]al1 ,/ate1 ,tribal1 or local law en=cem5t ag5cy reque/s1 9 writ+1 t ! f9ancial in/itution keep t acc\nt or transaction op5-- 7#a7 ! f9ancial in/itution %all n be liable "u ?is sub*apt] = ma9ta9+ t acc\nt or transaction consi/5t ) ! p>amet]s ( ! reque/2 & 7#b7 no ,f$]al or ,/ate dep>tm5t or ag5cy may take any adv]se sup]visory action "u ?is sub*apt] ) respect to ! f9ancial in/itution = ma9ta9+ t acc\nt or transaction consi/5t ) ! p>amet]s ( ! reque/4 7b7 ,rule ( con/ruction ,no?+ 9 ?is section may be con/ru$-- 7#a7 to prev5t a ,f$]al or ,/ate dep>tm5t or ag5cy f v]ify+ ! validity ( a writt5 reque/ describ$ 9 subsection 7a7 ) ! ,f$]al1 ,/ate1 ,tribal1 or local law en=cem5t ag5cy mak+ t writt5 reque/2 or 7#b7 to relieve a f9ancial in/itution f comply+ ) any report+ requirem5ts1 includ+ ! report+ ( suspici\s transactions "u section #ecah7;g74 7c7 ,lett] t]m9ation date ,= ! purposes ( ?is section1 any writt5 reque/ describ$ 9 subsection 7a7 %all include a t]m9ation date aft] :i* t reque/ %all no long] apply4 4 7,b7 ,am5dm5t to ,public ,law #ia-ejh ,*apt] #b ( title ,i ( ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et seq47 is am5d$ by add+ at ! end ! foll[+3 #acj4 ,safe h>bor ) respect to keep op5 directives 7a7 ,def9ition ,9 ?is section1 ! t]m f9ancial in/itution has ! mean+ giv5 ! t]m 9 section #abc7;b74 7b7 ,safe h>bor ,) respect to a cu/om] acc\nt or cu/om] transaction ( a f9ancial in/itution1 if a ,f$]al1 ,/ate1 ,tribal1 or local law en=cem5t ag5cy reque/s1 9 writ+1 ! f9ancial in/itution to keep t acc\nt or transaction op5-- 7#a7 ! f9ancial in/itution %all n be liable "u ?is *apt] = ma9ta9+ t acc\nt or transaction consi/5t ) ! p>amet]s ( ! reque/2 & 7#b7 no ,f$]al or ,/ate dep>tm5t or ag5cy may take any adv]se sup]visory action "u ?is *apt] ) respect to ! f9ancial in/itution = ma9ta9+ t acc\nt or transaction consi/5t ) ! p>amet]s ( ! reque/4 7c7 ,rule ( con/ruction ,no?+ 9 ?is section may be con/ru$-- 7#a7 z prev5t+ a ,f$]al or ,/ate dep>tm5t or ag5cy f v]ify+ ! validity ( a writt5 reque/ describ$ 9 subsection 7b7 ) ! ,f$]al1 ,/ate1 ,tribal1 or local law en=cem5t ag5cy mak+ t writt5 reque/2 or 7#b7 to relieve a f9ancial in/itution f comply+ ) any report+ requirem5ts1 includ+ ! report+ ( suspici\s transactions "u section #ecah7;g7 ( title #ca1 ,unit$ ,/ates ,code4 7d7 ,lett] t]m9ation date ,= ! purposes ( ?is section1 any writt5 reque/ describ$ 9 subsection 7b7 %all include a t]m9ation date aft] :i* t reque/ %all no long] apply4 4 7#b7 ,cl]ical am5dm5ts 7,a7 ,title #ca ,! table ( cont5ts = *apt] #ec ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ aft] ! item relat+ to section #eccb ! foll[+3 #eccc4 ,safe h>bor ) respect to keep op5 directives4 4 7,b7 ,public ,law #ia-ejh ,! table ( cont5ts = *apt] #b ( title ,i ( ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et seq47 is am5d$ by add+ at ! end ! foll[+3 #acj4 ,safe h>bor ) respect to keep op5 directives4 4 7b7 ,det]m9ation ( ,budget>y ,effects ,! budget>y effects ( ?is section1 = ! purpose ( comply+ ) ! ,/atutory ,pay-,z-,y-,g ,act ( #bjaj1 %all be det]m9$ by ref]5ce to ! late/ /atem5t titl$ ,budget>y ,effects ( ,,paygo ,legislation = ?is ,act1 submitt$ = pr9t+ 9 ! ,congressional ,record by ! ,*airman ( ! ,h\se ,budget ,committee1 provid$ t su* /atem5t has be5 submitt$ prior to ! vote on passage4 #bjh4 ,additional damages = repeat ,bank ,secrecy ,act violators ,section #ecba ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7f7 ,additional damages = repeat violators ,9 addition to any o!r f9es p]mitt$ by ?is section & section #ecbb1 ) respect to a p]son :o has previ\sly violat$ a provision ( 7or rule issu$ "u7 ?is sub*apt]1 section #ba ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b71 or section #abc ( ,public ,law #ia-ejh1 ! ,secret>y ( ! ,treasury may impose an additional civil p5alty aga9/ su* p]son = ea* additional su* violation 9 an am\nt equal to up to ?ree times ! pr(it ga9$ or loss avoid$ by su* p]son z a result ( ! violation4 4 #bji4 ,enc\rag+ in=mation %>+ & public-private p>tn]%ips 7a7 ,9 g5]al ,fin,c,e,n %all conv5e a sup]visory team ( relevant ,f$]al ag5cies1 private sector exp]ts 9 bank+1 national security & law en=cem5t1 & o!r /akehold]s z ,fin,c,e,n deems appropriate to exam9e /rategies to increase public-private sector coop]ation = purposes ( c\nt]+ prolif]ation f9ance & sanctions evasion4 7b7 ,meet+s ,! sup]visory team %all meet p]iodically to advise on /rategies to combat prolif]ation f9anc+ risk4 ,,iii ,mod]nization ( ,,aml_/,,cft sy/em #cja4 ,approv$ sy/ems = id5tify+ suspici\s activities ,section #ecah7;g7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7#e7 ,consid]ations 9 impos+ report+ requirem5ts 7,a7 ,9 g5]al ,9 impos+ any requirem5t to report any suspici\s transaction "u ?is subsection1 ! ,secret>y ( ! ,treasury1 9 consultation ) appropriate repres5tatives ( ,/ate bank sup]visors & ! ,f$]al functional regulators 7z def9$ 9 #eji ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fhji771 %all address1 consid]1 & include-- 7i7 ! national priorities e/abli%$ by ! ,secret>y2 7ii7 :e!r ! report+ is likely to h a high degree ( usefulness to ! ,f$]al law en=cem5t community1 national security1 & ! intellig5ce community 9 combat+ f9ancial crime1 includ+ ! f9anc+ ( t]rorism2 & 7iii7 ! means by or =m 9 :i* ! ,secret>y %all receive su* report+1 includ+ ! burd5s impos$ by su* means or =m ( report+ on p]sons requir$ to provide su* report+1 ! effici5cy ( ! means by or =m ( report+1 & ! b5efits d]iv$ by su* means or =m ( report+ by ! ,f$]al law en=cem5t community & ! intellig5ce community 9 combat+ f9ancial crime1 includ+ ! f9anc+ ( t]rorism4 7,b7 ,int]nal controls ,reports fil$ "u ?is subsection %all be guid$ by ! int]nal controls ( ! compliance program ( a cov]$ in/itution ) respect to ! ,bank ,secrecy ,act1 includ+ ! risk assessm5t processes ( ! cov]$ in/itution t %\ld include a consid]ation ( priority areas z e/abli%$ by ! ,secret>y ( ! ,treasury pursuant to section #ecaa4 7,c7 ,exam9ations ,exam9ations ( sy/ems = id5tify+ & report+ ( suspici\s activities %all consid]1 among o!r ?+s1 ! quality ( in=mation provid$ "u ?is section & ! in/itution's consid]ation ( priority areas z e/abli%$ by ! ,secret>y ( ! ,treasury pursuant to section #ecaa4 7,d7 ,bulk-=m data & real-"t report+ 7i7 ,requirem5t to e/abli% sy/em ,9 consid]+ ! means by or =m 9 :i* ! ,secret>y ( ! ,treasury %all receive report+ pursuant to subp>agraph 7,a77iii7 ! ,secret>y ( ! ,treasury1 ?r\gh ! ,f9ancial ,crimes ,en=cem5t ,network1 & 9 consultation ) appropriate repres5tatives ( ! ,/ate bank sup]visors & ,f$]al functional regulators 7z def9$ 9 #eji ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fhji77 %all-- 7,i7 e/abli% /reaml9$ processes to p]mit ! fil+ ( non-complex categories ( reports t-- 7aa7 r$uce burd5s impos$ on p]sons requir$ to report2 & 7bb7 d n dim9i% ! usefulness ( ! report+ to ,f$]al law en=cem5t ag5cies & ! intellig5ce community 9 combat+ f9ancial crime1 includ+ ! f9anc+ ( t]rorism2 7,,ii7 subject to clause 7ii71 p]mit bulk data report+ = su* categories ( reports & e/abli% ! conditions "u :i* bulk data report+ is p]mitt$2 & 7,,iii7 e/abli% additional sy/ems & processes t all[ = su* report+4 7ii7 ,/&>ds ,! ,secret>y ( ! ,treasury-- 7,i7 9 c>ry+ out clause 7i71 %all e/abli% /&>ds to ensure t bulk data reports relate to suspici\s transactions relevant to pot5tial violations ( law or regulation2 & 7,,ii7 9 e/abli%+ ! /&>ds "u subclause 7,i71 may consid] transactions design$ to evade any regulation promulgat$ "u ?is sub*apt]1 c]ta9 fund & asset transf]s ) no app>5t economic1 bus9ess1 or lawful purpose1 & any o!r transaction t ! ,secret>y det]m9es to be appropriate4 7iii7 ,rule ( con/ruction ,no?+ 9 ?is subp>agraph may be con/ru$ z preclud+ ! ,secret>y ( ! ,treasury f requir+ report+ z provid$ = 9 subp>agraphs 7,a7 & 7,b7 or notify+ ,f$]al law en=cem5t ) respect to any transaction t ! ,secret>y has det]m9$ directly implicates a national priority e/abli%$ by ! ,secret>y4 7#f7 ,,aml te*nology rulemak+ ,! ,secret>y ( ! ,treasury %all1 9 consultation ) appropriate repres5tatives ( ,/ate bank sup]visors & ,f$]al functional regulators 7z def9$ 9 section #eji ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fhji771 promulgate regulations to-- 7,a7 specify an optional regime :]eby a f9ancial in/itution may submit = approval by ! ,f9ancial ,crimes ,en=cem5t ,network1 9 consultation ) ! ,f$]al bank+ ag5cies1 a tailor$ compreh5sive approa* to monitor+ transactions = ! recordkeep+ & report+ requirem5ts e/abli%$ by ?is sub*apt] & o!r relevant laws2 7,b7 /&>ds t su* an optional regime mu/ meet = approval1 ) ^? /&>ds hav+ ! prim>y goal ( address+ anti-money-laund]+-regime priorities & o!r significant ,bank ,secrecy ,act & anti-money-laund]+ risks id5tifi$ 9 a p>ticul> f9ancial in/itution's 7or association ( f9ancial in/itutions7 risk assessm5t2 7,c7 include 9 ! /&>ds describ$ 9 subp>agraph 7,b7-- 7i7 an emphasis on us+ innovative approa*es = transaction monitor+ su* z ma*9e le>n+ r ?an rules-bas$ sy/ems2 7ii7 requirem5ts = te/+1 audit1 p>allel runs1 & ongo+ quality assurance processes to ensure t ^! sy/ems are work+ effectively1 includ+ risk-bas$ back-te/+ ( ! regime to facilitate calibration ( relevant sy/ems2 7iii7 requirem5ts = appropriate data privacy & security2 & 7iv7 requirem5ts = exam9ation ( ^! sy/ems by ! appropriate ,f$]al or ,/ate f9ancial regulators2 & 7,d7 ) respect to te*nology & processes design$ to facilitate compliance ) ! ,bank ,secrecy ,act requirem5ts t are n cov]$ by subp>agraph 7,a71 specify t f9ancial in/itutions may n be requir$ to te/ new te*nology & processes alongside legacy te*nology & processes1 kn[n z p>allel runs1 9 all cases1 b in/ead-- 7i7 %\ld develop a risk-bas$ implem5tation & te/+ plan1 9 consultation ) ,/ate & ,f$]al f9ancial regulators z appropriate1 t acc\nts = legal1 data privacy1 & security conc]ns t includes a reasonable te/+ timel9e2 7ii7 %\ld id5tify processes & proc$ures = replac+ or t]m9at+ any legacy te*nology & process = any exam9able te*nology or process2 & 7iii7 aft] adequately te/+ compliance te*nology1 may replace or t]m9ate any legacy te*nology & processes = any exam9able te*nology or process4 7#g7 ,rule ( con/ruction ,no?+ 9 ?is subsection may be con/ru$ to require a f9ancial in/itution to alt] its risk-bas$ approa* to monitor+ suspici\s activities4 7#h7 ,def9itions ,9 ?is subsection3 7,a7 ,bank ,secrecy ,act ,! t]m ,bank ,secrecy ,act has ! mean+ giv5 ! t]m 9 section #c ( ! ,,illicit ,,ca% ,act4 7,b7 ,/ate bank sup]visor ,! t]m ,/ate bank sup]visor has ! mean+ giv5 ! t]m 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 4 #cjb4 ,f9ancial crimes te* symposium 7a7 ,purpose ,! purpose ( ?is section is to-- 7#a7 promote great] int]national collaboration 9 ! ef=t to prev5t & detect f9ancial crimes & suspici\s activities2 & 7#b7 facilitate ! inve/igation & adoption ( new te*nologies aim$ at prev5t+ & detect+ f9ancial crimes & o!r illicit activities4 7b7 ,p]iodic meet+s ,! ,secret>y %all1 9 coord9ation ) ! ,subcommittee on ,innovation e/abli%$ "u subsection 7d7 ( section #aefd ( ! ,annunzio-,wylie ,anti-,money ,laund]+ ,act1 z add$ by section #ajc ( ?is ,act1 p]iodically1 b n less ?an once e #c ye>s1 conv5e a global anti-money laund]+ & f9ancial crime symposium focus$ on h[ new te*nology c be us$ to m effectively combat f9ancial crimes & o!r illicit activities4 7c7 ,att5dees ,att5dees at ! symposium conv5$ "u ?is section %all include dome/ic & int]national f9ancial regulators1 s5ior executives f regulat$ firms1 te*nology provid]s1 law en=cem5t repres5tatives1 />t ups1 academic in/itutions1 & o!r repres5tatives z ! ,secret>y det]m9es are appropriate4 7d7 ,panels ,! ,secret>y %all conv5e panels 9 ord] to review new te*nologies & p]mit att5dees to demon/rate pro( ( concept4 7e7 ,implem5tation & reports ,! ,secret>y %all to ! ext5t practicable "w to provide regulatory guidance reg>d+ innovative te*nologies & practices pres5t$ at ! symposium1 to ! ext5t su* te*nologies & practices fur!r ! goals ( ?is section4 #cjc4 ,deid5tifi$ ,,aml in=mation 7a7 ,am5dm5t to ! ,gramm-,lea*-,bliley ,act ,title ,v ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fhja et seq47 is am5d$ by ins]t+ aft] section #eji 7#ae ,u4,s4,c4 #fhji7 ! foll[+3 #eji;,a4 ,deid5tifi$ ,,aml in=mation 7a7 ,def9itions ,9 ?is section3 7#a7 ,cyb]security purpose ,! t]m cyb]security purpose has ! mean+ giv5 ! t]m 9 section #ajb ( ! ,cyb]security ,in=mation ,%>+ ,act ( #bjae 7#f ,u4,s4,c4 #aeja74 7#b7 ,deid5tifi$ in=mation ,! t]m deid5tifi$ in=mation means in=mation obta9$ by a f9ancial in/itution f :i* any in=mation t may be us$ to id5tify a p]son has be5 remov$ & ) respect to :i* !re is no reasonable basis to believe t ! in=mation is nonpublic p]sonal in=mation4 7#c7 ,f9ancial in/itution ,! t]m f9ancial in/itution-- 7,a7 has ! mean+ giv5 ! t]m 9 section #eji2 & 7,b7 includes-- 7i7 a subsidi>y1 affiliate1 or o!r entity )9 ! corporate organizational /ructure ( a f9ancial in/itution2 7ii7 a p]son repres5t+ or o!rwise act+ z ag5t = a f9ancial in/itution2 & 7iii7 a gr\p or organization ! memb]%ip ( :i* is compris$ entirely ( f9ancial in/itutions4 7#d7 ,exceptions ,! ,secret>y ( ! ,treasury by rule %all e/abli% exceptions to p>agraph 7#b71 includ+ sett+ m9imum /&>ds = in=mation t is ineligible = consid]ation z deid5tifi$ in=mation4 7b7 ,process ,a f9ancial in/itution may det]m9e t f9ancial in/itution in=mation is deid5tifi$ in=mation only if-- 7#a7 a p]son ) appropriate k ( & exp]i5ce ) g5]ally accept$ /ati/ical & sci5tific pr9ciples & me?ods = r5d]+ in=mation n individually id5tifiable-- 7,a7 apply+ su* pr9ciples & me?ods1 det]m9es t ! risk is v small t ! in=mation c\ld be us$1 alone or 9 comb9ation ) o!r reasonably available in=mation1 by an anticipat$ recipi5t to id5tify a p]son :o is a subject ( ! in=mation2 & 7,b7 docum5ts ! me?ods & results ( ! analysis t ju/ify su* det]m9ation2 or 7#b7 7,a7 appropriate id5tifi]s ( ! p]son or ( relatives1 employ]s1 or h\sehold memb]s ( ! p]son1 are remov$2 & 7,b7 ! f9ancial in/itution does n h actual k t ! in=mation c\ld be us$ alone or 9 comb9ation ) o!r in=mation to id5tify a p]son :o is a subject ( ! in=mation4 7c7 ,reid5tification ,a f9ancial in/itution may assign a code or o!r means ( record id5tification to all[ in=mation deid5tifi$ "u ?is section to be reid5tifi$ by ! f9ancial in/itution1 provid$ t-- 7#a7 ! code or o!r means ( record id5tification is n d]iv$ f or relat$ to in=mation ab\t ! p]son & is n o!rwise capable ( be+ translat$ s z to id5tify ! p]son2 & 7#b7 ! f9ancial in/itution does n use or disclose ! code or o!r means ( record id5tification = any o!r purpose1 & does n disclose ! me*anism = reid5tification4 7d7 ,p]missible use 7#a7 ,limit$ use ( data ,deid5tifi$ in=mation s5t or receiv$ by a f9ancial in/itution %all only be us$-- 7,a7 to id5tify suspici\s activity t may m]it ! fil+ ( a suspici\s activity report "u section #ecah7;g7 ( title #ca1 ,unit$ ,/ates ,code2 7,b7 = ! purpose /at$ 9 section #ecaa ( title #ca1 ,unit$ ,/ates ,code2 or 7,c7 = a cyb]security purpose4 7#b7 ,no fur!r communication ,a f9ancial in/itution may n transmit or %>e any deid5tifi$ in=mation except )-- 7,a7 a f9ancial in/itution 9 accordance ) ?is section2 7,b7 ! ,secret>y ( ! ,treasury2 7,c7 an ag5cy or au?ority ref]5c$ 9 section #eje7;a7 9 accordance ) applicable law2 & 7,d7 a law en=cem5t ag5cy4 7e7 ,en=cem5t ,! own] ( an approv$ telecommunications sy/em %all be a cov]$ p]son = purposes ( section #eje7;a77#h74 7f7 ,rulemak+ ,no lat] ?an #a ye> aft] ! date ( enactm5t ( ?is section1 ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,secret>y ( ,homel& ,security & ea* ag5cy ref]5c$ 9 section #eje7;a71 %all issue regulations to c>ry out ! am5dm5ts made by ?is section4 7g7 ,relation to suspici\s activity reports ,no?+ 9 ?is section %all be con/ru$ to modify1 limit1 alt]1 or sup]s$e section #ecah7;g7 ( title #ca1 ,unit$ ,/ates ,code1 or any regulation promulgat$ !reund]4 7h7 ,rule ( con/ruction 7#a7 ,9 g5]al ,compliance ) ! provisions ( ?is section %all n con/itute a violation ( o!r provisions ( ?is title4 7#b7 ,transmission1 receipt1 & %>+ ( in=mation ,a f9ancial in/itution t transmits1 receives1 or %>es in=mation "u ?is section %all n be liable to any p]son "u any law1 or regulation ( any ,/ate or political subdivision !re(1 or "u any contract or o!r legally en=ceable agreem5t 7includ+ any arbitration agreem5t71 = su* disclosure or = any failure to provide notice ( su* disclosure1 or any o!r p]son id5tifi$ 9 ! disclosure1 except :]e su* transmission1 receipt1 or %>+ violates ?is section or regulations promulgat$ "u ?is section4 4 #cjd4 ,no action lett]s ,section #caj ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by sections #ajb1 #ajc1 & #ajd ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 7g7 ,no-,action lett]s ) respect to specific conduct 7#a7 ,9 g5]al ,! ,director & ! ,f$]al functional regulators1 9 consultation ) ,/ate bank sup]visors1 %all jo9tly promulgate regulations & guidance to e/abli% a process = ! issuance ( a no-action lett] by ,fin,c,e,n & ! relevant ,f$]al functional regulators 9 response to an inquiry f a p]son describ$ 9 p>agraph 7#b7 conc]n+ ! application ( ! ,bank ,secrecy ,act1 ! ,,usa ,,patriot ,act 7,public ,law #ajg-ef2 #aae ,/at4 #bgb71 section #h7s7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7s771 or any o!r anti-money-laund]+ or c\nt]-t]rorism f9anc+ law 7includ+ regulations7 to specific conduct1 :i* %all include a /atem5t z to :e!r ,fin,c,e,n or any relevant ,f$]al functional regulator int5ds to take an en=cem5t action aga9/ ! p]son ) respect to su* conduct4 7#b7 ,p]sons cov]$ ,a p]son describ$ 9 ?is p>agraph is-- 7,a7 any p]son involv$ 9 ! specific conduct t is ! subject ( ! no-action lett]2 or 7,b7 any p]son involv$ 9 conduct t is indi/+ui%able 9 all mat]ial aspects f ! specific conduct t is ! subject ( ! no-action lett]4 7#c7 ,reliance ,a no-action lett] issu$ "u p>agraph 7#a7 %all n b9d ,fin,c,e,n or any ,f$]al functional regulator if ! p]son mak+ ! inquiry provid$ incomplete1 mislead+ or false in=mation1 if subsequ5t *anges are made to relevant /atutes1 regulations1 or guidance1 or if a p5alty 0 assess$ or en=cem5t action tak5 be=e ! date on :i* ! no-action lett] 0 issu$4 7#d7 ,cont5ts ,! regulations issu$ "u p>agraph 7#a7 %all conta9 a timel9e = ! process us$ to rea* a f9al det]m9ation by ,fin,c,e,n & ! relevant ,f$]al functional regulators 9 response to a reque/ by a p]son = a no-action lett]4 7h7 ,def9itions ,9 ?is section3 7#a7 ,bank ,secrecy ,act ! t]m ,bank ,secrecy ,act has ! mean+ giv5 ! t]m 9 section #c ( ! ,,illicit ,,ca% ,act4 7#b7 ,f$]al functional regulator ,! t]m ,f$]al functional regulator ha/ ! mean+ giv5 ! t]m 9 section #eji ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fhji74 7#c7 ,f9ancial in/itution ,! t]m f9ancial in/itution has ! mean+ giv5 ! t]m 9 section #ecab4 7#d7 ,/ate bank sup]visor ,! t]m ,/ate bank sup]visor has ! mean+ giv5 ! t]m 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 4 #cje4 ,,oecd pilot program on %>+ ( suspici\s activity reports )9 a f9ancial gr\p 7a7 ,9 g5]al 7#a7 ,%>+ ) =eign bran*es & affiliates ,section #ecah7;g7 ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #cja1 is am5d$ by add+ at ! end ! foll[+3 7#f7 ,,oecd pilot program on %>+ ) =eign bran*es1 subsidi>ies1 & affiliates 7,a7 ,9 g5]al ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is p>agraph1 ! ,secret>y ( ! ,treasury %all issue rules1 subject to su* controls & re/rictions z ! ,director ( ! ,f9ancial ,crimes ,en=cem5t ,network det]m9es appropriate1 e/abli%+ ! pilot program describ$ "u subp>agraph 7,b74 ,9 prescrib+ su* rules1 ! ,secret>y %all ensure t ! %>+ ( in=mation describ$ "u subp>agraph 7,b7 is subject to appropriate /&>ds & requirem5ts reg>d+ data security & ! confid5tiality ( p]sonally id5tifiable in=mation4 7,b7 ,pilot program describ$ ,! pilot program requir$ "u ?is p>agraph %all-- 7i7 p]mit any f9ancial in/itution ) a report+ obligation "u ?is subsection to %>e reports 7& in=mation on su* reports7 "u ?is subsection ) ! in/itution's =eign bran*es1 subsidi>ies1 & affiliates = ! purpose ( combat+ illicit f9ance risks1 not)/&+ any o!r provision ( law except subp>agraph 7,c71 b only if su* =eign bran*1 subsidi>y1 or affiliate is locat$ 9 a jurisdiction t is a memb] ( ! ,organisation = ,economic ,co-op]ation & ,developm5t2 7ii7 t]m9ate on ! date t is #e ye>s aft] ! date ( enactm5t ( ?is p>agraph1 except t ! ,secret>y ( ! ,treasury may ext5d ! pilot program = up to two ye>s ^u submitt+ a report to ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives & ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate t includes-- 7,i7 a c]tification t ! ext5sion is 9 ! national int]e/ ( ! ,unit$ ,/ates1 ) a detail$ explanation ( ! reasons !re=2 7,,ii7 an evaluation ( ! usefulness ( ! pilot program1 includ+ a detail$ analysis ( any illicit activity id5tifi$ or prev5t$ z a result ( ! program2 & 7,,iii7 a detail$ legislative proposal provid+ = a long-t]m ext5sion ( ! pilot program activities1 includ+ expect$ budget>y res\rces = ! activities1 if ! ,secret>y ( ! ,treasury det]m9es t a long-t]m ext5sion is appropriate4 7,c7 ,prohibition involv+ c]ta9 jurisdictions ,9 issu+ ! regulations requir$ "u subp>agraph 7,a71 ! ,secret>y ( ! ,treasury may n p]mit a f9ancial in/itution to %>e in=mation on reports "u ?is subsection ) a =eign bran*1 subsidi>y1 or affiliate locat$ 9 a jurisdiction t-- 7i7 is subject to c\nt]measures impos$ by ! ,f$]al ,gov]nm5t2 or 7ii7 ! ,secret>y has det]m9$ _c reasonably protect ! privacy & confid5tiality ( su* in=mation4 7,d7 ,implem5tation updates ,n lat] ?an #cfj days aft] ! date on :i* rules are issu$ "u subp>agraph 7,a71 & annually !reaft] = #c ye>s1 ! ,secret>y ( ! ,treasury1 or ! ,secret>y's designee1 %all brief ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives & ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate on-- 7i7 ! degree ( any in=mation %>+ p]mitt$ "u ! pilot program1 & a description ( crit]ia us$ by ! ,secret>y to evaluate ! appropriat5ess ( ! in=mation %>+2 7ii7 ! effectiv5ess ( ! pilot program 9 id5tify+ or prev5t+ ! violation ( a ,unit$ ,/ates law or regulation1 & me*anisms t may improve su* effectiv5ess2 & 7iii7 any recomm5dations to am5d ! design ( ! pilot program1 or to include specific non-,organisation = ,economic ,co-op]ation & ,developm5t jurisdictions 9 ! program4 7#g7 ,treatm5t ( =eign jurisdiction-orig9at$ reports ,a report receiv$ by a f9ancial in/itution f a =eign affiliate ) respect to a suspici\s transaction relevant to a possible violation ( law or regulation %all be subject to ! same confid5tiality requirem5ts provid$ "u ?is subsection = a report ( a suspici\s transaction describ$ "u p>agraph 7#a74 7#h7 ,def9ition ,9 ?is subsection1 ! t]m affiliate means an entity t controls1 is controll$ by1 or is "u common control ) ano!r entity4 4 7#b7 ,notification prohibitions ,section #ecah7;g77#b77;,a7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7,a7 9 clause 7i71 by ins]t+ aft] transaction has be5 report$ ! foll[+3 or o!rwise reveal any in=mation t w\ld reveal t ! transaction has be5 report$1 includ+ mat]ials prep>$ or us$ by ! f9ancial in/itution = ! purpose ( id5tify+ & detect+ pot5tially suspici\s activity2 & 7,b7 9 clause 7ii71 by ins]t+ aft] transaction has be5 report$1 ! foll[+3 or o!rwise reveal any in=mation t w\ld reveal t ! transaction has be5 report$1 includ+ mat]ials prep>$ or us$ by ! f9ancial in/itution = ! purpose ( id5tify+ & detect+ pot5tially suspici\s activity14 7b7 ,rulemak+ ,n lat] ?an ! end ( ! #a-ye> p]iod beg9n+ on ! date ( enactm5t ( ?is ,act1 ! ,secret>y %all issue regulations to c>ry out ! am5dm5ts made by ?is section4 #cjf4 ,=eign evid5ti>y reque/s 7a7 ,=eign evid5ti>y reque/s ,section #ecah7k77#c77;,a7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7iii7 ,use z evid5ce ,if requir$ by a summons or subpo5a ref]r$ to 9 clause 7i71 ! =eign bank on :i* ! summons or subpo5a 0 s]v$ %all produce ! records describ$ 9 ! summons or subpo5a 9 a mann] t w\ld e/abli% _! au!nticity & reliability "u ! ,f$]al ,rules ( ,evid5ce4 7iv7 ,anti-tip-(f ,any =eign bank ^u :i* a summons or subpo5a ref]r$ to 9 clause 7i7 has be5 s]v$1 & any director1 (fic]1 employee1 or ag5t ( su* =eign bank1 %all n volunt>ily disclose to a p]son n employ$ by ! =eign bank ! fact t x receiv$ a summons or subpo5a or any ( ! in=mation conta9$ 9 t summons or subpo5a4 4 7b7 ,=eign evid5ti>y reque/s ,section #ecah7k77#c7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7,d7 ,c\rt ord]s & contempt 7i7 ,c\rt ord]s ,if ! ,secret>y ( ! ,treasury or ! ,attorney ,g5]al 79 ea* case1 9 consultation ) ! o!r7 det]m9es t a =eign bank has fail$ to comply ) a summons or subpo5a issu$ "u subp>agraph 7,a71 ! ,secret>y or ! ,attorney ,g5]al 79 ea* case1 9 consultation ) ! o!r7 may initiate proce$+s 9 a ,unit$ ,/ates c\rt seek+ a c\rt ord] to compel compliance ) su* summons or subpo5a4 7ii7 ,contempt ,if ! ,secret>y ( ! ,treasury or ! ,attorney ,g5]al 79 ea* case1 9 consultation ) ! o!r7 det]m9es t a =eign bank has fail$ to comply ) a c\rt ord] describ$ 9 clause 7i71 ! ,secret>y or ! ,attorney ,g5]al 79 ea* case1 9 consultation ) ! o!r7 may petition ! ,unit$ ,/ates c\rt t issu$ ! c\rt ord] to levy a civil or crim9al contempt f9e on ! =eign bank4 4 #cjg4 ,updat+ :i/lebl[] inc5tives & protection 7a7 ,:i/lebl[] inc5tives & protection 7#a7 ,9 g5]al ,section #ecbc ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ to read z foll[s3 #ecbc4 ,:i/lebl[] inc5tives & protections 7a7 ,def9itions ,9 ?is section3 7#a7 ,cov]$ judicial or adm9i/rative action ,! t]m cov]$ judicial or adm9i/rative action means any judicial or adm9i/rative action br\ght by ! ,treasury or ! ,dep>tm5t ( ,ju/ice "u sub*apt]s ,,ii & ,,iii ( ?is title t results 9 monet>y sanctions exce$+ #a1jjj1jjj4 7#b7 ,fund ,! t]m ,fund means ! ,anti-,money ,laund]+ & ,c\nt]-,t]rorism ,f9anc+ ,fund4 7#c7 ,monet>y sanctions ,! t]m monet>y sanctions1 :5 us$ ) respect to any judicial or adm9i/rative action1 means any monies1 includ+ p5alties & int]e/1 ord]$ to be paid4 7#d7 ,orig9al in=mation ,! t]m orig9al in=mation means in=mation t-- 7,a7 is d]iv$ f ! indep5d5t k or analysis ( a :i/lebl[]2 7,b7 is n kn[n to ! ,treasury1 ! ,dep>tm5t ( ,ju/ice1 or an appropriate regulator1 unless ! :i/lebl[] is ! orig9al s\rce ( ! in=mation2 & 7,c7 is n exclusively d]iv$ f an allegation made 9 a judicial or adm9i/rative he>+1 9 a gov]nm5tal report1 he>+1 audit1 or inve/igation1 or f ! news m$ia1 unless ! :i/lebl[] is a s\rce ( ! in=mation4 7#e7 ,relat$ action ,! t]m relat$ action1 :5 us$ ) respect to any judicial or adm9i/rative action br\ght by ! ,treasury or ! ,dep>tm5t ( ,ju/ice "u sub*apt]s ,,ii & ,,iii ( ?is title1 means any judicial action br\ght by an entity t is bas$ ^u ! orig9al in=mation provid$ by a :i/lebl[] pursuant to subsection 7a7 t l$ to ! successful en=cem5t ( ! ,treasury or ,dep>tm5t ( ,ju/ice action4 7#f7 ,:i/lebl[] ,! t]m :i/lebl[] means any individual :o provides1 or #b or m individuals act+ jo9tly :o provide1 in=mation relat+ to a violation ( ! laws "u sub*apt]s ,,ii & ,,iii ( ?is title to ! ,treasury1 9 a mann] e/abli%$1 by rule or regulation1 by ! ,treasury4 7b7 ,aw>ds 7#a7 ,9 g5]al ,9 any cov]$ judicial action1 or relat$ action1 ! ,treasury1 "u regulations prescrib$ by ! ,treasury & subject to subsection 7c71 may pay an aw>d or aw>ds to #a or m :i/lebl[]s :o volunt>ily provid$ orig9al in=mation to ! ,treasury t l$ to ! successful en=cem5t ( ! cov]$ judicial or adm9i/rative action1 or relat$ action1 9 an aggregate am\nt equal to-- 7,a7 n less ?an #aj p]c5t1 9 total1 ( :at has be5 collect$ ( ! monet>y sanctions impos$ 9 ! action or relat$ actions2 & 7,b7 n m ?an #cj p]c5t1 9 total1 ( :at has be5 collect$ ( ! monet>y sanctions impos$ 9 ! action or relat$ actions4 7#b7 ,paym5t ( aw>ds ,any am\nt paid "u p>agraph 7#a7 %all be paid f ! ,fund4 7c7 ,det]m9ation ( am\nt ( aw>d2 d5ial ( aw>d 7#a7 ,det]m9ation ( am\nt ( aw>d 7,a7 ,discretion ,! det]m9ation ( ! am\nt ( an aw>d made "u subsection 7b7 %all be 9 ! discretion ( ! ,treasury4 7,b7 ,crit]ia ,9 det]m9+ ! am\nt ( an aw>d made "u subsection 7b71 ! ,treasury-- 7i7 %all take into consid]ation-- 7,i7 ! significance ( ! in=mation provid$ by ! :i/lebl[] to ! success ( ! cov]$ judicial or adm9i/rative action2 7,,ii7 ! degree ( assi/ance provid$ by ! :i/lebl[] & any legal repres5tative ( ! :i/lebl[] 9 a cov]$ judicial or adm9i/rative action2 7,,iii7 ! programmatic int]e/ ( ! ,treasury 9 det]r+ violations ( ! laws "u sub*apt]s ,,ii & ,,iii ( ?is title by mak+ aw>ds to :i/lebl[]s :o provide in=mation t leads to ! successful en=cem5t ( su* laws2 & 7,,iv7 su* additional relevant factors z ! ,treasury may e/abli% by rule or regulation2 & 7ii7 %all n take into consid]ation ! balance ( ! ,fund4 7#b7 ,d5ial ( aw>d ,no aw>d "u subsection 7b7 %all be made-- 7,a7 to any :i/lebl[] :o is1 or 0 at ! "t ! :i/lebl[] acquir$ ! orig9al in=mation submitt$ to ! ,treasury1 a memb]1 (fic]1 or employee (-- 7i7 an appropriate regulatory ag5cy2 7ii7 ! ,dep>tm5t ( ,ju/ice or ! ,treasury2 7iii7 a self-regulatory organization2 or 7iv7 a law en=cem5t organization2 7,b7 to any :i/lebl[] :o is convict$ ( a crim9al violation relat$ to ! judicial or adm9i/rative action = :i* ! :i/lebl[] o!rwise c\ld receive an aw>d "u ?is section2 or 7,c7 to any :i/lebl[] :o fails to submit in=mation to ! ,treasury 9 su* =m z ! ,treasury may1 by rule1 require4 7d7 ,repres5tation 7#a7 ,p]mitt$ repres5tation ,any :i/lebl[] :o makes a claim = an aw>d "u subsection 7c7 may be repres5t$ by c\nsel4 7#b7 ,requir$ repres5tation 7,a7 ,9 g5]al ,any :i/lebl[] :o anonym\sly makes a claim = an aw>d "u subsection 7b7 %all be repres5t$ by c\nsel if ! :i/lebl[] anonym\sly submits ! in=mation ^u :i* ! claim is bas$4 7,b7 ,disclosure ( id5tity ,prior to ! paym5t ( an aw>d1 a :i/lebl[] %all disclose ! id5tity ( ! :i/lebl[] & provide su* o!r in=mation z ! ,treasury may require1 directly or ?r\gh c\nsel = ! :i/lebl[]4 7e7 ,no contract necess>y ,no contract ) ! ,treasury is necess>y = any :i/lebl[] to receive an aw>d "u subsection 7b71 unless o!rwise requir$ by ! ,treasury by rule or regulation4 7f7 ,appeals ,any det]m9ation made "u ?is section1 includ+ :e!r1 to :om1 or 9 :at am\nt to make aw>ds1 %all be 9 ! discretion ( ! ,treasury4 ,any su* det]m9ation1 except ! det]m9ation ( ! am\nt ( an aw>d if ! aw>d 0 made 9 accordance ) subsection 7b71 may be appeal$ to ! appropriate c\rt ( appeals ( ! ,unit$ ,/ates n m ?an #cj days aft] ! det]m9ation is issu$ by ! ,treasury4 ,! c\rt %all review ! det]m9ation made by ! ,treasury 9 accordance ) section #gjf ( title #e4 7g7 ,anti-,money ,laund]+ & ,c\nt]-,t]rorism ,f9anc+ ,fund 7#a7 ,fund e/abli%$ ,!re is e/abli%$ 9 ! ,treasury ( ! ,unit$ ,/ates a fund to be kn[n z ! ,anti-,money ,laund]+ & ,c\nt]-,t]rorism ,f9anc+ ,fund4 7#b7 ,use ( fund ,! ,fund %all be available to ! ,treasury1 )\t fur!r appropriation or fiscal ye> limitation1 = pay+ aw>ds to :i/lebl[]s z provid$ 9 subsection 7b74 7#c7 ,deposits & cr$its 7,a7 ,9 g5]al ,!re %all be deposit$ into or cr$it$ to ! ,fund an am\nt equal to any monet>y sanction collect$ by ! ,treasury or ! ,dep>tm5t ( ,ju/ice 9 any judicial or adm9i/rative action = violations ( ! law "u sub*apt]s ,,ii & ,,iii ( ?is title & all income f inve/m5ts made "u p>agraph 7#d74 7,b7 ,additional am\nts ,if ! am\nts deposit$ into or cr$it$ to ! ,fund "u subp>agraph 7,a7 are n suffici5t to satisfy an aw>d made "u subsection 7b71 !re %all be deposit$ into or cr$it$ to ! ,fund an am\nt equal to ! unsatisfi$ portion ( ! aw>d f any monet>y sanction collect$ by ! ,treasury or ! ,dep>tm5t ( ,ju/ice 9 ! cov]$ judicial or adm9i/rative action on :i* ! aw>d is bas$4 7#d7 ,inve/m5ts 7,a7 ,am\nts 9 fund may be inve/$ ,! ,secret>y ( ! ,treasury may inve/ ! portion ( ! ,fund t is n1 9 ! discretion ( ! ,secret>y ( ! ,treasury1 requir$ to meet ! curr5t ne$s ( ! ,fund4 7,b7 ,eligible inve/m5ts ,inve/m5ts %all be made by ! ,secret>y ( ! ,treasury 9 obligations ( ! ,unit$ ,/ates or obligations t are gu>ante$ z to pr9cipal & int]e/ by ! ,unit$ ,/ates1 ) maturities suitable to ! ne$s ( ! ,fund z det]m9$ by ! ,treasury4 7,c7 ,int]e/ & proce$s cr$it$ ,! int]e/ on1 & ! proce$s f ! sale or r$emption (1 any obligations held 9 ! ,fund %all be cr$it$ to ! ,fund4 7#e7 ,reports to congress ,n lat] ?an ,octob] #cj ( ea* fiscal ye>1 ! ,treasury %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report on-- 7,a7 ! :i/lebl[] aw>d program e/abli%$ "u ?is section1 includ+-- 7i7 a description ( ! numb] ( aw>ds grant$2 & 7ii7 ! types ( cases 9 :i* aw>ds 7 grant$ dur+ ! prec$+ fiscal ye>2 7,b7 ! balance ( ! ,fund at ! beg9n+ ( ! prec$+ fiscal ye>2 7,c7 ! am\nts deposit$ into or cr$it$ to ! ,fund dur+ ! prec$+ fiscal ye>2 7,d7 ! am\nt ( e>n+s on inve/m5ts made "u p>agraph 7#d7 dur+ ! prec$+ fiscal ye>2 7,e7 ! am\nt paid f ! ,fund dur+ ! prec$+ fiscal ye> to :i/lebl[]s pursuant to subsection 7b72 7,f7 ! balance ( ! ,fund at ! end ( ! prec$+ fiscal ye>2 & 7,g7 a complete set ( audit$ f9ancial /atem5ts1 includ+-- 7i7 a balance %eet2 7ii7 an income /atem5t2 & 7iii7 a ca% fl[ analysis4 7h7 ,confid5tiality 7#a7 ,9 g5]al ,except z provid$ 9 p>agraphs 7#b7 & 7#c71 ! ,treasury & any (fic] or employee ( ! ,treasury %all n disclose any in=mation1 includ+ in=mation provid$ by a :i/lebl[] to ! ,treasury1 :i* c\ld reasonably be expect$ to reveal ! id5tity ( a :i/lebl[]1 except 9 accordance ) ! provisions ( section #eeb;a ( title #e1 unless & until requir$ to be disclos$ to a def5dant or respond5t 9 connection ) a public proce$+ in/itut$ by ! ,treasury or any entity describ$ 9 p>agraph 7#c74 7#b7 ,exempt$ /atute ,= purposes ( section #eeb ( title #e1 p>agraph 7#a7 %all be consid]$ a /atute describ$ 9 subsection 7b77#c77;,b7 ( su* section #eeb4 7#c7 ,rule ( con/ruction ,no?+ 9 ?is section is int5d$ to limit1 or %all be con/ru$ to limit1 ! ability ( ! ,attorney ,g5]al to pres5t su* evid5ce to a gr& jury or to %>e su* evid5ce ) pot5tial witnesses or def5dants 9 ! c\rse ( an ongo+ crim9al inve/igation4 7#d7 ,availability to gov]nm5t ag5cies 7,a7 ,9 g5]al ,)\t ! loss ( its /atus z confid5tial 9 ! h&s ( ! ,treasury1 all in=mation ref]r$ to 9 p>agraph 7#a7 may1 9 ! discretion ( ! ,treasury1 :5 det]m9$ by ! ,treasury to be necess>y to accompli% ! purposes ( ?is *apt] & to protect inve/ors1 be made available to-- 7i7 ! ,attorney ,g5]al ( ! ,unit$ ,/ates or ! ,secret>y ( ! ,treasury2 7ii7 an appropriate regulatory au?ority2 7iii7 a self-regulatory organization2 7iv7 a ,/ate attorney g5]al 9 connection ) any crim9al inve/igation2 7v7 any appropriate ,/ate regulatory au?ority2 7vi7 ! ,public ,company ,acc\nt+ ,ov]sight ,bo>d2 7vii7 a =eign securities au?ority2 & 7viii7 a =eign law en=cem5t au?ority4 7,b7 ,confid5tiality 7i7 ,9 g5]al ,ea* ( ! entities describ$ 9 clauses 7i7 ?r\gh 7vi7 ( subp>agraph 7,a7 %all ma9ta9 su* in=mation z confid5tial 9 accordance ) ! requirem5ts e/abli%$ "u p>agraph 7#a74 7ii7 ,=eign au?orities ,ea* ( ! entities describ$ 9 clauses 7vii7 & 7viii7 ( subp>agraph 7,a7 %all ma9ta9 su* in=mation 9 accordance ) su* assurances ( confid5tiality z ! ,treasury det]m9es appropriate4 7iii7 ,rights reta9$ ,no?+ 9 ?is section %all be deem$ to dim9i% ! rights1 privileges1 or rem$ies ( any :i/lebl[] "u any ,f$]al or ,/ate law1 or "u any collective b>ga9+ agreem5t4 7i7 ,provision ( false in=mation ,a :i/lebl[] %all n be entitl$ to an aw>d "u ?is section if ! :i/lebl[]-- 7#a7 kn[+ly & willfully makes any false1 fictiti\s1 or fraudul5t /atem5t or repres5tation2 or 7#b7 uses any false writ+ or docum5t kn[+ ! writ+ or docum5t conta9s any false1 fictiti\s1 or fraudul5t /atem5t or entry4 7j7 ,rulemak+ au?ority ,! ,treasury %all h ! au?ority to issue su* rules & regulations z may be necess>y or appropriate to implem5t ! provisions ( ?is section consi/5t ) ! purposes ( ?is section4 4 7#b7 ,te*nical & con=m+ am5dm5t ,! table ( sections = *apt] #ec ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by /rik+ ! item relat+ to section #ecbc & ins]t+ ! foll[+3 #ecbc4 ,:i/lebl[] inc5tives & protections4 4 #cjh4 ,value t sub/itutes curr5cy or funds 7a7 ,def9itions ,section #ecab7;a77#b7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subp>agraph 7,j71 by ins]t+ 1 or a bus9ess engag$ 9 ! ex*ange ( curr5cy1 funds1 or value t sub/itutes = curr5cy or funds be=e ! semicolon at ! end2 & 7#b7 9 subp>agraph 7,r71 by /rik+ funds1 & ins]t+ curr5cy1 funds1 or value t sub/itutes = curr5cy or funds14 7b7 ,regi/ration ( money transmitt+ bus9esses ,section #eccj7;d7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 p>agraph 7#a77;,a71 by /rik+ funds1 & ins]t+ curr5cy1 funds1 or value t sub/itutes = curr5cy or funds12 & 7#b7 9 p>agraph 7#b7-- 7,a7 by /rik+ curr5cy or funds d5om9at$ 9 ! curr5cy ( any c\ntry & ins]t+ curr5cy1 funds1 or value t sub/itutes = curr5cy or funds2 & 7,b7 by ins]t+ 1 includ+ aft] means4 #cji4 ,fight illicit networks & detect traffick+ 7a7 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,accord+ to ! ,drug ,en=cem5t ,adm9i/ration #bjag ,national ,drug ,?reat ,assessm5t1 transnational crim9al organizations are increas+ly us+ virtual curr5cies4 7#b7 ,! ,dep>tm5t ( ! ,treasury has recogniz$ t the developm5t ( virtual curr5cies is an attempt to meet a legitimate m>ket dem&4 ,accord+ to a ,f$]al ,res]ve ,bank ( ,*icago economi/1 ,unit$ ,/ates consum]s want paym5t options t are v]satile & t provide imm$iate f9ality4 ,no ,unit$ ,/ates paym5t me?od meets t description1 al?\gh ca% may come close/4 ,virtual curr5cies c mimic ca%'s imm$iate f9ality & anonymity & are m v]satile ?an ca% = onl9e & cross-bord] transactions1 mak+ virtual curr5cies vuln]able = illicit transactions44 7#c7 ,virtual curr5cies h become a prom95t me?od to pay = goods & s]vices associat$ ) illegal human traffick+ & drug traffick+1 :i* are two ( ! mo/ detrim5tal & tr\bl+ illegal activities facilitat$ by onl9e m>ketplaces4 7#d7 ,onl9e m>ketplaces1 includ+ ! d>k web1 h become a prom95t plat=m to buy1 sell1 & adv]tise = illicit goods & s]vices associat$ ) human traffick+ & drug traffick+4 7#e7 ,accord+ to ! ,int]national ,lab\r ,organization1 9 #bjaf1 #d1hjj1jjj p 9 ! _w 7 victims ( =c$ sexual exploitation1 & 9 #bjad1 ! global pr(it f comm]cial sexual exploitation 0 #ii1jjj1jjj1jjj4 7#f7 ,9 #bjaf1 )9 ! ,unit$ ,/ates1 ! ,c5t]s = ,disease ,control & ,prev5tion e/imat$ t !re 7 #fd1jjj dea?s relat$ to drug ov]dose1 & ! mo/ sev]e increase 9 drug ov]doses 7 ^? associat$ ) f5tanyl & f5tanyl analogs 7syn!tic opioids71 :i* am\nt$ to ov] #bj1jjj ov]dose dea?s4 7#g7 ,accord+ to ! ,dep>tm5t ( ! ,treasury's #bjae ,national ,money ,laund]+ ,risk ,assessm5t1 an e/imat$ #fd1jjj1jjj1jjj is g5]at$ annually f ,unit$ ,/ates drug traffick+ sales4 7#h7 ,illegal f5tanyl 9 ! ,unit$ ,/ates orig9ates prim>ily f ,*9a1 & x is readily available to pur*ase ?r\gh onl9e m>ketplaces4 7b7 ,def9ition ,9 ?is section1 ! t]m human traffick+ has ! mean+ giv5 ! t]m sev]e =ms ( traffick+ 9 p]sons 9 section #ajc ( ! ,traffick+ ,victims ,protection ,act ( #bjjj 7#bb ,u4,s4,c4 #gajb74 7c7 ,,gao ,/udy ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all conduct a /udy on h[ virtual curr5cies & onl9e m>ketplaces are us$ to facilitate human & drug traffick+4 ,! /udy %all consid]-- 7#a7 h[ onl9e m>ketplaces1 includ+ ! d>k web1 are be+ us$ z plat=ms to buy1 sell1 or facilitate ! f9anc+ ( goods or s]vices associat$ ) human traffick+ or drug traffick+ 7specifically1 opioids & syn!tic opioids1 includ+ f5tanyl1 f5tanyl analogs1 & any precursor *emicals associat$ ) manufactur+ f5tanyl or f5tanyl analogs7 de/9$ =1 orig9at+ f1 or )9 ! ,unit$ ,/ates2 7#b7 h[ f9ancial paym5t me?ods1 includ+ virtual curr5cies & pe]-to-pe] mobile paym5t s]vices1 are be+ utiliz$ by onl9e m>ketplaces to facilitate ! buy+1 sell+1 or f9anc+ ( goods & s]vices associat$ ) human or drug traffick+ de/9$ =1 orig9at+ f1 or )9 ! ,unit$ ,/ates2 7#c7 h[ virtual curr5cies are be+ us$ to facilitate ! buy+1 sell+1 or f9anc+ ( goods & s]vices associat$ ) human or drug traffick+1 de/9$ =1 orig9at+ f1 or )9 ! ,unit$ ,/ates1 :5 an onl9e plat=m is n o!rwise involv$2 7#d7 h[ illicit funds t h be5 transmitt$ onl9e & ?r\gh virtual curr5cies are repatriat$ into ! =mal bank+ sy/em ( ! ,unit$ ,/ates ?r\gh money laund]+ or o!r means2 7#e7 ! p>ticipants 7/ate & non-/ate actors7 ?r\gh\t ! entire supply *a9 t p>ticipate 9 or b5efit f ! buy+1 sell+1 or f9anc+ ( goods & s]vices associat$ ) human or drug traffick+ 7ei!r ?r\gh onl9e m>ketplaces or virtual curr5cies7 de/9$ =1 orig9at+ f1 or )9 ! ,unit$ ,/ates2 7#f7 ,f$]al & ,/ate ag5cy ef=ts to imp$e ! buy+1 sell+1 or f9anc+ ( goods & s]vices associat$ ) human or drug traffick+ de/9$ =1 orig9at+ f1 or )9 ! ,unit$ ,/ates1 includ+ ef=ts to prev5t ! proce$s f human or drug traffick+ f ent]+ ! ,unit$ ,/ates bank+ sy/em2 7#g7 h[ virtual curr5cies & _! und]ly+ te*nologies c be us$ to detect & det] ^! illicit activities2 & 7#h7 to :at ext5t ! immutable & traceable nature ( virtual curr5cies c contribute to ! track+ & prosecution ( illicit fund+4 7d7 ,report to ,congress ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report summ>iz+ ! results ( ! /udy requir$ "u subsection 7c71 toge!r ) any recomm5dations = legislative or regulatory action t w\ld improve ! ef=ts ( ,f$]al ag5cies to imp$e ! use ( virtual curr5cies & onl9e m>ketplaces 9 facilitat+ human & drug traffick+4 #caj4 ,/udy & /rategy on ,*9ese money laund]+ 7a7 ,/udy ,! ,secret>y %all c>ry out a /udy on-- 7#a7 ! ext5t & effect ( illicit f9ance risk relat+ to ! ,gov]nm5t ( ! ,p's ,republic ( ,*9a & ,*9ese firms2 & 7#b7 ! ways 9 :i* ! increas+ am\nt ( global trade & inve/m5t by ! ,gov]nm5t ( ! ,p's ,republic ( ,*9a & ,*9ese firms expose ! int]national f9ancial sy/em to increas$ risk relat+ to illicit f9ance4 7b7 ,/rategy ,to combat ,*9ese money laund]+ ,^u ! completion ( ! /udy requir$ "u subsection 7a71 ! ,secret>y %all1 9 consultation ) su* o!r ,f$]al dep>tm5ts & ag5cies z ! ,secret>y det]m9es appropriate1 develop a /rategy to combat ,*9ese money-laund]+ activities4 7c7 ,report ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y %all submit to ,congress a report conta9+-- 7#a7 all f9d+s & det]m9ations made 9 c>ry+ out ! /udy requir$ "u subsection 7a72 & 7#b7 ! /rategy develop$ "u subsection 7b74 #caa4 ,f9ancial te*nology task =ce 7a7 ,9 g5]al ,! ,secret>y %all conv5e a task =ce1 compris$ ( f9ancial regulators1 te*nology exp]ts1 national security exp]ts1 law en=cem5t1 & any o!r gr\p ! ,secret>y det]m9es is appropriate1 to analyze ! impact ( f9ancial te*nology on f9ancial crimes compliance1 includ+ c\nt]+ prolif]ation f9ance1 human traffick+1 & sanctions evasion4 7b7 ,report ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs & ! ,committee on ,=eign ,relations ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices & ! ,committee on ,=eign ,affairs ( ! ,h\se ( ,repres5tatives a report conta9+ any f9d+s ( ! task =ce conv5$ "u subsection 7a74 #cab4 ,/udy on ! ef=ts ( au?orit>ian regimes to exploit ! f9ancial sy/em ( ! ,unit$ ,/ates 7a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y & ! ,attorney ,g5]al1 9 consultation ) ! heads ( o!r relevant national security1 intellig5ce1 & law en=cem5t ag5cies1 %all conduct a /udy & submit to ,congress a report t consid]s h[ au?orit>ian regimes 9 =eign c\ntries & _! proxies use ! f9ancial sy/em ( ! ,unit$ ,/ates to-- 7#a7 conduct political influ5ce op]ations2 7#b7 su/a9 kleptocratic me?ods ( ma9ta9+ p[]2 7#c7 export corruption2 7#d7 fund nongov]nm5tal organizations1 m$ia organizations1 or academic initiatives 9 ! ,unit$ ,/ates to advance ! int]e/s ( ^? p]sons2 & 7#e7 o!rwise und]m9e democratic gov]nance 9 ! ,unit$ ,/ates & ! p>tn]s & allies ( ! ,unit$ ,/ates4 7b7 ,report ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y %all submit to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives a report t conta9s-- 7#a7 ! results ( ! /udy requir$ "u subsection 7a72 & 7#b7 any recomm5dations = legislative or regulatory action t w\ld address exploitation ( ! f9ancial sy/em ( ! ,unit$ ,/ates by =eign au?orit>ian regimes4 #cac4 ,additional /udies ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all conduct a /udy & submit to ,congress a report-- 7#a7 evaluat+ ! effect ( anti-money-laund]+ & c\nt]-t]rorism-f9anc+ requirem5ts on individuals & entities1 includ+ *>ities1 embassy acc\nts1 money-s]vice bus9esses1 & correspond5t banks1 t h be5 subject to categorical de-risk+ by f9ancial in/itutions op]at+ 9 ! ,unit$ ,/ates1 or o!rwise h difficulty access+ or ma9ta9+-- 7,a7 relation%ips 9 ! ,unit$ ,/ates f9ancial sy/em2 or 7,b7 c]ta9 f9ancial s]vices 9 ! ,unit$ ,/ates1 includ+ op5+ & keep+ op5 an acc\nt2 7#b7 evaluat+ consequ5ces ( f9ancial in/itutions de-risk+ entire categories ( relation%ips ) ! p]sons id5tifi$ 9 p>agraph 7#a72 & 7#c7 id5tify+ options = f9ancial in/itutions h&l+ transactions or acc\nts = high-risk categories ( cli5ts1 & options = m9imiz+ ! negative effects ( anti-money-laund]+ & c\nt]-t]rorism-f9anc+ requirem5ts on ! p]sons describ$ 9 p>agraph 7#a7 )\t compromis+ ! effectiv5ess ( ,f$]al anti-money-laund]+ & c\nt]-t]rorism requirem5ts4 ,,iv ,b5eficial own]%ip disclosure requirem5ts #dja4 ,b5eficial own]%ip 7a7 ,9 g5]al ,*apt] #ec ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #bjg ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 #eccd4 ,transp>5t incorporation practices 7a7 ,def9itions ,9 ?is section3 7#a7 ,acceptable id5tification docum5t ,a natural p]son has an acceptable id5tification docum5t if t p]son has a nonexpir$ passport issu$ by ! ,unit$ ,/ates1 a nonexpir$ id5tification docum5t issu$ by a ,/ate1 local gov]nm5t1 or ,f$]ally recogniz$ ,indian ,tribe to an individual act+ = ! purpose ( id5tification ( t individual1 or a nonexpir$ driv]'s lic5se issu$ by a ,/ate1 or1 if ! natural p]son does n h any su* docum5t1 a nonexpir$ passport issu$ by a =eign gov]nm5t4 7#b7 ,b5eficial own] ,! t]m b5eficial own]-- 7,a7 means1 ) respect to an entity1 a natural p]son :o directly or indirectly1 ?r\gh any contract1 arrangem5t1 und]/&+1 relation%ip1 or o!rwise-- 7i7 ex]cises sub/antial control ov] su* entity2 or 7ii7 owns #be p]c5t or m ( ! equity int]e/s ( su* entity or receives sub/antial economic b5efits f ! assets ( su* entity2 & 7,b7 does n include-- 7i7 a m9or *ild1 z def9$ 9 ! ,/ate 9 :i* ! entity is =m$2 7ii7 a p]son act+ z a nom9ee1 int]m$i>y1 cu/odian1 or ag5t on behalf ( ano!r p]son2 7iii7 a p]son act+ solely z an employee ( a corporation or limit$ liability company & ^: control ov] or economic b5efits f ! corporation or limit$ liability company d]ives solely f ! employm5t /atus ( ! p]son2 7iv7 a p]son ^: only int]e/ 9 a corporation or limit$ liability company is ?r\gh a "r ( inh]itance2 or 7v7 a cr$itor ( a corporation or limit$ liability company1 unless ! cr$itor meets ! requirem5ts ( subp>agraph 7,a74 7#c7 ,director ,! t]m ,director means ! ,director ( ,fin,c,e,n4 7#d7 ,fin,c,e,n ,! t]m ,fin,c,e,n means ! ,f9ancial ,crimes ,en=cem5t ,network ( ! ,dep>tm5t ( ! ,treasury4 7#e7 ,fin,c,e,n id5tifi] ,! t]m ,fin,c,e,n id5tifi] means ! unique id5tify+ numb] assign$ by ,fin,c,e,n to a p]son "u ?is section4 7#f7 ,report+ company ,! t]m report+ company-- 7,a7 means a corporation1 limit$ liability company1 or o!r simil> entity t is-- 7i7 creat$ by ! fil+ ( a docum5t ) a secret>y ( /ate or a simil> (fice "u ! law ( a ,/ate or ,indian tribe2 or 7ii7 =m$ "u ! law ( a =eign c\ntry & regi/]$ to d bus9ess 9 a ,/ate by ! fil+ ( a docum5t ) a secret>y ( /ate or a simil> (fice "u ! law ( ! ,/ate2 & 7,b7 does n include-- 7i7 an issu]-- 7,i7 ( a class ( securities regi/]$ "u section #ab ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gha72 or 7,,ii7 t is requir$ to file reports "u section #ae7;d7 ( t ,act 7#ae ,u4,s4,c4 #gho7d772 7ii7 a bus9ess conc]n con/itut$ or sponsor$ by a ,/ate1 a political subdivision ( a ,/ate1 "u an int]/ate compact betwe5 two or m ,/ates1 by a dep>tm5t or ag5cy ( ! ,unit$ ,/ates1 or "u ! laws ( ! ,unit$ ,/ates2 7iii7 a depository in/itution 7z def9$ 9 section #c ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac772 7iv7 a cr$it union 7z def9$ 9 section #aja ( ! ,f$]al ,cr$it ,union ,act 7#ab ,u4,s4,c4 #ageb772 7v7 a bank hold+ company 7z def9$ 9 section #b ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahda772 7vi7 a brok] or deal] 7z def9$ 9 section #c ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c77 t is regi/]$ "u section #ae ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gho72 7vii7 an ex*ange or cle>+ ag5cy 7z def9$ 9 section #c ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;c77 t is regi/]$ "u section #f or #ag;,a ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;f & #ghq-#a72 7viii7 an inve/m5t company 7z def9$ 9 section #c ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c77 or an inve/m5t advis] 7z def9$ 9 section #bjb7aa7 ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#b7aa7771 includ+ an inve/m5t advis] describ$ 9 section #bjc7l7 ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#c7l771 if ! company or advis] is regi/]$ ) ! ,securities & ,ex*ange ,commission1 or has fil$ an application = regi/ration :i* has n be5 d5i$1 "u ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#a et seq47 or ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#a et seq472 7ix7 an insurance company 7z def9$ 9 section #b ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#b772 7x7 an insurance produc] 7z def9$ 9 section #ccd ( ! ,gramm-,lea*-,bliley ,act 7#ae ,u4,s4,c4 #fgfd772 7xi7 a regi/]$ entity 7z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a771 or a futures commission m]*ant1 introduc+ brok]1 commodity pool op]ator1 or commodity trad+ advisor 7z def9$ 9 section #a;a ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a;a77 t is regi/]$ ) ! ,commodity ,futures ,trad+ ,commission2 7xii7 a public acc\nt+ firm regi/]$ 9 accordance ) section #ajb ( ! ,s>banes-,oxley ,act 7#ae ,u4,s4,c4 #gbab72 7xiii7 a public utility t provides telecommunications s]vices1 electrical p[]1 natural gas1 or wat] & sew] s]vices1 )9 ! ,unit$ ,/ates2 7xiv7 a *ur*1 *>ity1 nonpr(it entity1 or o!r organization t is describ$ 9 section #eja7;c71 #ebg1 #didg7;a77#a71 or #didg7;a77#b7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 t has n be5 d5i$ tax-exempt /atus1 & t has n fail$ to file ! mo/ rec5tly due annual in=mation return ) ! ,int]nal ,rev5ue ,s]vice pursuant to section #fjcc7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 if requir$ to file su* a return1 = #c consecutive ye>s1 provid$ h[ev]1 t an entity describ$ 9 ?is clause %all n be consid]$ a corporation or limit$ liability company until ! p]iod ( "t #ahj days imm$iately foll[+ ! date ( its d5ial ( tax-exempt /atus or failure to file its annual in=mation return pursuant to section #fjcc7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf = #c consecutive ye>s2 7xv7 any bus9ess conc]n t-- 7,i7 employs m ?an #bj employees on a full-"t basis 9 ! ,unit$ ,/ates2 7,,ii7 files income tax returns 9 ! ,unit$ ,/ates demon/rat+ m ?an #e1jjj1jjj 9 gross receipts or sales2 & 7,,iii7 has an op]at+ pres5ce at a physical (fice )9 ! ,unit$ ,/ates2 7xvi7 any corporation or limit$ liability company =m$ & own$ by an entity describ$ 9 clause 7i71 7ii71 7iii71 7iv71 7v71 7vi71 7vii71 7viii71 7ix71 7x71 7xi71 7xii71 7xiii71 or 7xiv72 7xvii7 any pool$ inve/m5t vehicle t is op]at$ or advis$ by an entity describ$ 9 clause 7iii71 7iv71 7v71 7vi71 7vii71 7viii71 7ix71 or 7x72 or 7xviii7 any bus9ess conc]n or class ( bus9ess conc]ns t ! ,secret>y ( ! ,treasury1 ) ! writt5 concurr5ce ( ! ,attorney ,g5]al & ! ,secret>y ( ,homel& ,security1 has det]m9$ %\ld be exempt f ! requirem5ts ( subsection 7a7 because requir+ b5eficial own]%ip in=mation f ! bus9ess conc]n or class ( bus9ess conc]ns w\ld n s]ve ! public int]e/ & w\ld n assi/ law en=cem5t ef=ts to detect1 prev5t1 or puni% t]rorism1 money laund]+1 tax evasion1 or o!r misconduct4 7#g7 ,/ate ,! t]m ,/ate means any ,/ate1 commonweal?1 t]ritory1 or possession ( ! ,unit$ ,/ates1 ! ,di/rict ( ,columbia1 ! ,commonweal? ( ,pu]to ,rico1 ! ,commonweal? ( ! ,nor!rn ,m>iana ,isl&s1 ,am]ican ,samoa1 ,guam1 or ! ,unit$ ,/ates ,virg9 ,isl&s4 7#h7 ,sub/antial economic b5efits 7,a7 ,9 g5]al ,= ! purposes ( ?is section1 a p]son receives sub/antial economic b5efits f an entity if ! p]son has access to #be p]c5t or m ( ! funds & assets ( ! entity4 7,b7 ,rulemak+ ,! ,secret>y ( ! ,treasury %all seek to provide cl>ity to entities ) respect to ! id5tification & disclosure ( an individual :o receives sub/antial economic b5efits f ! funds & assets ( an entity4 7#i7 ,unique id5tify+ numb] ,! t]m unique id5tify+ numb] ) respect to a natural p]son or a limit$ liability company ) a sole memb] means ! unique id5tify+ numb] f a nonexpir$ passport issu$ by ! ,unit$ ,/ates1 a nonexpir$ p]sonal id5tification c>d1 or a nonexpir$ driv]'s lic5se issu$ by a ,/ate4 7b7 ,b5eficial own]%ip report+ 7#a7 ,report+ 7,a7 ,9 g5]al ,9 accordance ) regulations prescrib$ by ! ,secret>y ( ! ,treasury1 ea* report+ company %all submit to ,fin,c,e,n a report t conta9s ! in=mation describ$ 9 p>agraph 7#b74 7,b7 ,report+ ( exi/+ entities ,9 accordance ) regulations prescrib$ by ! ,secret>y ( ! ,treasury1 any report+ company t has be5 =m$ "u ! laws ( a ,/ate or ,indian ,tribe prior to ! date ( enactm5t ( ?is section1 %all1 9 a timely mann]1 & n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is section1 submit to ,fin,c,e,n a report t conta9s ! in=mation describ$ 9 p>agraph 7#b74 7,c7 ,report+ at "t ( incorporation ,9 accordance ) regulations prescrib$ by ! ,secret>y ( ! ,treasury1 any report+ company t has be5 =m$ "u ! laws ( a ,/ate or ,indian ,tribe aft] ! date ( enactm5t ( ?is section1 %all1 at ! "t ( incorporation1 submit to ,fin,c,e,n a report t conta9s ! in=mation describ$ 9 p>agraph 7#b74 7,d7 ,updat$ report+ = *anges 9 b5eficial own]s ,9 accordance ) regulations prescrib$ by ! ,secret>y ( ! ,treasury1 a report+ company %all1 9 a timely mann]1 & n lat] ?an #ij days aft] ! date on :i* !re is a *ange ) respect to any b5eficial own] ( ! report+ company1 deliv] to ,fin,c,e,n a report t includes ! in=mation describ$ 9 p>agraph 7#b74 7,e7 ,updat$ report+ = *anges 9 b5eficial own]%ip in=mation ,9 accordance ) regulations prescrib$ by ! ,secret>y ( ! ,treasury1 a report+ company %all1 9 a timely mann]1 & n lat] ?an #a ye> aft] ! date on :i* !re are any *anges to ! in=mation describ$ 9 p>agraph 7#b71 deliv] to ,fin,c,e,n a report t includes ! in=mation describ$ 9 t p>agraph4 7,f7 ,o!r requirem5ts ,9 promulgat+ ! regulations prescrib$ 9 subp>agraphs 7,a7 ?r\gh 7,e71 ! ,secret>y ( ! ,treasury %all endeavor1 to ! ext5t practicable-- 7i7 to collect in=mation ?r\gh exi/+ ,f$]al1 ,/ate1 & local processes & proc$ures2 7ii7 to m9imize burd5s on report+ companies associat$ ) ! collection ( ! in=mation describ$ 9 p>agraph 7#b7 9 light ( ! co/s plac$ on legitimate bus9esses2 7iii7 to collect su* in=mation1 includ+ any updates 9 b5eficial own]%ip1 to ensure ! usefulness ( b5eficial own]%ip in=mation = law en=cem5t & national security purposes2 7iv7 to e/abli% p>tn]%ips ) ,/ate1 local1 & ,tribal gov]nm5tal ag5cies2 & 7v7 to p]mit any entity t is n a report+ company to dem& & receive f ,fin,c,e,n writt5 confirmation t ! entity is n subject to ! requirem5ts ( ?is subsection4 7#b7 ,requir$ in=mation 7,a7 ,def9ition ,9 ?is p>agraph1 ! t]m applicant means1 ) respect to a report+ company1 any individual :o files an application to =m a corporation or limit$ liability company "u ! laws ( a ,/ate or ,indian ,tribe on behalf ( ! report+ company4 7,b7 ,in=mation ,9 accordance ) regulations prescrib$ by ! ,secret>y ( ! ,treasury1 a report deliv]$ "u p>agraph 7#a7 %all id5tify ea* b5eficial own] ( ! applicable report+ company & ea* applicant ) respect to t report+ company by-- 7i7 full legal "n2 7ii7 date ( bir?2 7iii7 curr5t1 z ( ! date on :i* ! report is deliv]$1 resid5tial or bus9ess /reet address2 & 7iv7 ! unique id5tify+ numb] ) respect to ! b5eficial own] f a nonexpir$ passport issu$ by ! ,unit$ ,/ates1 a nonexpir$ p]sonal id5tification c>d1 or a nonexpir$ driv]'s lic5se issu$ by a ,/ate4 7#c7 ,fin,c,e,n ,,id numb]s 7,a7 ,issuance ( f9c5 id numb] 7i7 ,9 g5]al ,fin,c,e,n %all issue a ,fin,c,e,n ,,id numb] to any individual :o reque/s su* a numb] & provides ,fin,c,e,n ) ! in=mation describ$ 9 p>agraph 7#b74 7ii7 ,updat+ ( in=mation ,an individual ) a ,fin,c,e,n ,,id numb] %all submit fil+s ) ,fin,c,e,n pursuant to p>agraph 7#a7 updat+ any in=mation describ$ 9 p>agraph 7#b74 7,b7 ,use ( ,fin,c,e,n ,,id numb] 9 report+ requirem5ts ,any p]son requir$ to report ! in=mation describ$ 9 p>agraph 7#b7 ) respect to an individual may in/ead report ! ,fin,c,e,n ,,id numb] ( ! individual4 7,c7 ,treatm5t ( in=mation submitt$ = ,fin,c,e,n id numb] ,= purposes ( ?is section1 any in=mation submitt$ "u subp>agraph 7,a7 %all be deem$ to be b5eficial own]%ip in=mation4 7#d7 ,effective date ,! requirem5ts ( ?is subsection %all take effect on ! effective date ( ! regulations prescrib$ by ! ,secret>y ( ! ,treasury "u ?is subsection1 :i* effective date %all n be soon] ?an ! date t is #a ye> aft] ! date ( enactm5t ( ?is section4 7c7 ,ret5tion & disclosure ( b5eficial own]%ip in=mation by ,fin,c,e,n 7#a7 ,ret5tion ( in=mation ,b5eficial own]%ip in=mation requir$ "u subsection 7b77#b7 relat+ to ea* corporation or limit$ liability company =m$ "u ! laws ( ! ,/ate %all be ma9ta9$ by ,fin,c,e,n until ! end ( ! #e-ye> p]iod beg9n+ on ! date t ! corporation or limit$ liability company t]m9ates4 7#b7 ,disclosure ,b5eficial own]%ip in=mation report$ to ,fin,c,e,n pursuant to ?is section %all be provid$ by ,fin,c,e,n only ^u receipt (-- 7,a7 a reque/1 ?r\gh appropriate protocols1 by a local1 ,tribal1 ,/ate1 or ,f$]al law en=cem5t1 national security1 or intellig5ce ag5cy2 7,b7 a reque/ made by a ,f$]al ag5cy on behalf ( a law en=cem5t ag5cy ( ano!r c\ntry "u an int]national treaty1 agreem5t1 or conv5tion1 or an ord] "u section #ceab ( title #ah or section #aghb ( title #bh1 issu$ 9 response to a reque/ = assi/ance 9 an inve/igation by su* =eign c\ntry1 subject to ! requirem5t t su* o!r c\ntry agrees to prev5t ! public disclosure ( su* b5eficial own]%ip in=mation or to use x = any purpose o!r ?an ! specifi$ inve/igation1 or1 if ^u agreem5t by ! ,f$]al ag5cy & ! =eign c\ntry1 9 a crim9al or civil case2 or 7,c7 a reque/ made by a f9ancial in/itution or any o!r entity or p]son subject to cu/om] due dilig5ce requirem5ts1 ) ! cons5t ( ! report+ company1 to facilitate ! compliance ( ! f9ancial in/itution or o!r entity or p]son ) cu/om] due dilig5ce requirem5ts "u applicable ,f$]al law or ,/ate law4 7#c7 ,appropriate protocols ,! protocols describ$ 9 p>agraph 7#b77;,a7 %all-- 7,a7 protect ! privacy ( any b5eficial own]%ip in=mation provid$ by ,fin,c,e,n to a local1 ,tribal1 ,/ate1 or ,f$]al law en=cem5t1 national security1 or intellig5ce ag5cy2 7,b7 ensure t a local1 ,tribal1 ,/ate1 or ,f$]al law en=cem5t1 national security1 or intellig5ce ag5cy reque/+ b5eficial own]%ip in=mation has an exi/+ inve/igatory basis = reque/+ su* in=mation & t basis is n 9 violation ( a local1 or city ord9ance2 7,c7 ensure t access to b5eficial own]%ip in=mation is limit$ to au?oriz$ us]s at a local1 ,tribal1 ,/ate1 or ,f$]al law en=cem5t1 national security1 or intellig5ce ag5cy :o h und]gone appropriate tra9+1 & t ! id5tity ( su* au?oriz$ us]s is v]ifi$ ?r\gh appropriate me*anisms su* z #b-;factor au!ntication2 7,d7 include an audit trail ( reque/s = b5eficial own]%ip in=mation by a local1 ,tribal1 ,/ate1 or ,f$]al law en=cem5t1 national security1 or intellig5ce ag5cy1 includ+1 z necess>y1 in=mation conc]n+ qu]ies made by au?oriz$ us]s at a local1 ,tribal1 ,/ate1 or ,f$]al law en=cem5t1 national security1 or intellig5ce ag5cy2 7,e7 require t e local1 ,tribal1 ,/ate1 or ,f$]al law en=cem5t1 national security1 or intellig5ce ag5cy t receives b5eficial own]%ip in=mation f ,fin,c,e,n conducts an annual audit to v]ify t ! b5eficial own]%ip in=mation receiv$ f ,fin,c,e,n has be5 access$ & us$ appropriately1 & consi/5t ) ?is p>agraph2 & 7,f7 require ,fin,c,e,n to conduct an annual audit ( e local1 ,tribal1 ,/ate1 or ,f$]al law en=cem5t1 national security1 or intellig5ce ag5cy t has receiv$ b5eficial own]%ip in=mation to ensure t su* ag5cy has reque/$ b5eficial own]%ip in=mation & has us$ any b5eficial own]%ip in=mation receiv$ f ,fin,c,e,n appropriately & consi/5t ) ?is p>agraph4 7#d7 ,violation ,a reque/ "u p>agraph 7#b77;,a7 t violates ! protocols describ$ 9 p>agraph 7#c7 %all subject ! reque/+ ag5cy to crim9al p5alties "u subsection 7g77#c74 7#e7 ,scope ,in=mation provid$ to a local1 ,tribal1 ,/ate1 or ,f$]al law en=cem5t1 national security1 or intellig5ce ag5cy "u ?is p>agraph may only be us$ = law en=cem5t1 anti-money laund]+1 c\nt]-t]rorism-f9anc+1 national security1 or intellig5ce purposes4 7d7 ,ag5cy coord9ation 7#a7 ,9 g5]al ,! ,secret>y ( ! ,treasury %all endeavor1 to ! ext5t practicable1 to update in=mation describ$ 9 subsection 7b77#b7 by work+ collaboratively ) o!r relevant ,f$]al ag5cies4 7#b7 ,in=mation f relevant ,f$]al ag5cies ,relevant ,f$]al ag5cies1 z det]m9$ by ! ,secret>y ( ! ,treasury1 %all1 to ! ext5t practicable1 & consi/5t ) privacy protections1 provide su* requir$ in=mation to ,fin,c,e,n = purposes ( ma9ta9+ an accurate b5eficial own]%ip database4 7#c7 ,regulations ,! ,secret>y ( ! ,treasury1 9 consultation ) ! heads ( o!r relevant ag5cies1 may promulgate regulations z necess>y to c>ry out ?is subsection4 7e7 ,/ate notification ( f$]al obligations 7#a7 ,9 g5]al ,ea* ,/ate t receives fund+ "u section #eccd7;c7 %all1 n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is section1 take ! foll[+ actions3 7,a7 ,! ,secret>y ( ,/ate or a simil> (fice 9 ea* ,/ate responsible = ! e/abli%m5t ( entities creat$ by ! fil+ ( a public docum5t ) su* (fice "u ! law ( su* ,/ate %all p]iodically1 includ+ at ! "t ( any r5ewal ( any lic5se to d bus9ess 9 su* ,/ate & 9 connection ) ,/ate corporate tax r5ewals1 notify fil]s ( _! requirem5ts z report+ companies "u ?is section1 includ+ ! requirem5t "u subp>agraph 7b77#a77;,b71 & provide !m ) a copy ( ! report+ company =m creat$ by ! ,secret>y "u ?is section or an int]net l9k to su* =m4 7,b7 ,! ,secret>y ( ,/ate or a simil> (fice 9 ea* ,/ate responsible = ! e/abli%m5t ( entities creat$ by ! fil+ ( a public docum5t ) su* (fice "u ! law ( su* ,/ate %all update its websites1 =ms relat+ to incorporation & physical premises to notify fil]s ( _! requirem5ts z report+ companies "u ?is section1 includ+ provid+ an int]net l9k to ! report+ company =m creat$ by ! ,secret>y "u ?is section4 7#b7 ,disclosure ,a notification "u subp>agraph 7,a7 or 7,b7 ( p>agraph 7#a7 %all explicitly /ate t ! notification is on behalf ( ! ,dep>tm5t ( ! ,treasury = ! purpose ( support+ a nonpublic regi/ry ( bus9ess entities 9 ! ,unit$ ,/ates4 7f7 ,no be>] %>e corporations or limit$ liability companies ,a corporation or limit$ liability company =m$ "u ! laws ( a ,/ate may n issue a c]tificate 9 be>] =m evid5c+ ei!r a :ole or fractional int]e/ 9 ! corporation or limit$ liability company4 7g7 ,p5alties 7#a7 ,9 g5]al ,x %all be unlawful = any p]son to affect int]/ate or =eign comm]ce by-- 7,a7 kn[+ly provid+1 or attempt+ to provide1 false or fraudul5t b5eficial own]%ip in=mation1 includ+ a false or fraudul5t id5tify+ photograph1 to ,fin,c,e,n 9 accordance ) subsection 7b72 7,b7 willfully fail+ to provide complete or updat$ b5eficial own]%ip in=mation to ,fin,c,e,n 9 accordance ) subsection 7b72 7,c7 kn[+ly disclos+ ! cont5ts ( any report fil$ ) ,fin,c,e,n pursuant to subsection 7b71 except to ! ext5t necess>y to fulfill an au?oriz$ reque/ = b5eficial own]%ip in=mation2 or 7,d7 kn[+ly us+1 = an unau?oriz$ purpose1 ! cont5ts ( any report fil$ ) ,fin,c,e,n pursuant to subsection 7b74 7#b7 ,civil & crim9al p5alties 7,a7 ,9 g5]al ,any p]son :o violates subp>agraph 7,a7 or 7,b7 ( p>agraph 7#a7 %all be liable to ! ,unit$ ,/ates = a civil p5alty ( n m ?an #ejj = ea* day t ! violation cont9ues or has n be5 rem$i$1 & ! p]son may be f9$ n m ?an #aj1jjj1 imprison$ = n m ?an f\r ye>s1 or bo?4 7,b7 ,o!r violations ,any p]son :o violates subp>agraph 7,c7 or 7,d7 ( p>agraph 7#a7 %all be liable to ! ,unit$ ,/ates = a civil p5alty ( n m ?an #ejj = ea* violation1 & ! crim9al p5alties provid$ = 9 section #ecbb w apply to ! same ext5t z su* crim9al p5alties w\ld apply to a violation describ$ 9 section #ecbb4 7,c7 ,limitations ,any p]son :o neglig5tly violates p>agraph 7#a7 %all n be subject to civil or crim9al p5alties "u ?is p>agraph4 7,d7 ,waiv] ( de m9imis violations 7i7 ,def9itions 7,i7 ,9 g5]al ,= purposes ( ?is subsection1 a de m9imis violation includes any *ange to ! in=mation describ$ 9 p>agraph 7#b77;,b7 ( subsection 7b7 t is due to-- 7aa7 a *ange 9 an address provid$ "u clause 7iii7 ( su* p>agraph 7#b77;,b72 or 7bb7 ! expiration ( an id5tification docum5t provid$ "u clause 7iv7 ( su* p>agraph 7#b77;,b74 7,,ii7 ,assi/ance ,fin,c,e,n %all provide assi/ance to1 & may n impose any p5alty ^u1 any p]son seek+ to rem$y a de m9imis violation ( p>agraph 7#a7 & come into compliance ) ?is section4 7ii7 ,waiv] ,! ,secret>y ( ! ,treasury %all waive ! p5alty = violat+ p>agraph 7#a7 if ! ,secret>y det]m9es t ! violation 0 de m9imis & ! report+ company took reasonable /eps to update ! in=mation4 7iii7 ,repeat$ violations ,9 det]m9+ :e!r a violation is de m9imis1 ! ,secret>y ( ! ,treasury may treat repeat$ violations z #a violation4 7#c7 ,treasury ,(fice ( ,inspector ,g5]al inve/igation 9 ! ev5t ( a cyb]security brea* 7,a7 ,9 g5]al ,9 ! ev5t ( a cyb]security brea* t results 9 sub/antial unau?oriz$ access & disclosure ( s5sitive b5eficial own]%ip in=mation1 ! ,inspector ,g5]al ( ! ,dep>tm5t ( ! ,treasury %all conduct an inve/igation into ,fin,c,e,n cyb]security practices t1 to ! ext5t possible1 det]m9es any vuln]abilities )9 ,fin,c,e,n privacy security protocols & provides recomm5dations = fix+ su* defici5cies4 7,b7 ,report ,! ,inspector ,g5]al ( ! ,dep>tm5t ( ! ,treasury %all submit to ! ,secret>y ( ! ,treasury a report on ! inve/igation requir$ "u ?is p>agraph4 7,c7 ,actions ( ! ,secret>y ,^u receiv+ a report submitt$ "u subp>agraph 7,b71 ! ,secret>y ( ! ,treasury %all-- 7i7 det]m9e :e!r ! ,director _h any responsibility = ! cyb]security brea* or :e!r policies1 practices1 or proc$ures implem5t$ at ! direction ( ! ,director l$ to ! cyb]security brea*2 & 7ii7 submit to ,congress a writt5 report outl9+ ! f9d+s ( ! ,secret>y1 includ+ a det]m9ation by ! ,secret>y on :e!r to reta9 or dismiss ! individual s]v+ z ! ,director4 7#d7 ,us] compla9t process 7,a7 ,9 g5]al ,! ,inspector ,g5]al ( ! ,dep>tm5t ( ! ,treasury1 9 coord9ation ) ! ,secret>y ( ! ,treasury1 %all provide contact in=mation to receive ext]nal comm5ts or compla9ts reg>d+ ! b5eficial own]%ip in=mation collection process4 7,b7 ,report ,! ,inspector ,g5]al %all submit to ,congress a p]iodic report summ>iz+ ext]nal compla9ts & relat$ inve/igations by ! ,inspector ,g5]al relat$ to ! collection ( b5eficial own]%ip in=mation4 4 7b7 ,con=m+ am5dm5ts ,title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 section #ecba7;a7-- 7,a7 9 p>agraph 7#a71 by /rik+ sections #ecad & #ecae ea* place x appe>s & ins]t+ sections #ecad1 #ecae1 & #eccd2 & 7,b7 9 p>agraph 7#f71 by ins]t+ 7except section #eccd7 aft] sub*apt] ea* place x appe>s2 7#b7 9 section #ecbb1 by /rik+ section #ecae or #ecbd ea* place x appe>s & ins]t+ section #ecae1 #ecbd1 or #eccd2 & 7#c7 9 ! table ( cont5ts ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code1 z am5d$ by section #ajf ( ?is ,act1 by add+ at ! end ! foll[+3 #eccd4 ,transp>5t incorporation practices4 4 7c7 ,fund+ au?orization 7#a7 ,9 g5]al ,to c>ry out section #eccd ( title #ca1 ,unit$ ,/ates ,code1 z add$ by subsection 7a7 ( ?is section1 dur+ ! #c-ye> p]iod beg9n+ on ! date ( enactm5t ( ?is ,act1 funds %all be made available to ,fin,c,e,n & ! ,/ates to pay reasonable co/s relat+ to compliance ) ! requirem5ts ( su* section4 7#b7 ,fund+ s\rces ,funds %all be provid$ to ,fin,c,e,n & ! ,/ates to c>ry out ! purposes describ$ 9 p>agraph 7#a7 f "o or m ( ! foll[+ s\rces3 7,a7 ,^u application by ,fin,c,e,n or a ,/ate1 & )\t fur!r appropriation1 ! ,secret>y %all make available to ,fin,c,e,n or su* ,/ate unobligat$ balances describ$ 9 section #igjc7;g77#d77;,b7 ( title #ca1 ,unit$ ,/ates ,code1 9 ! ,dep>tm5t ( ! ,treasury ,=feiture ,fund e/abli%$ "u section #igjc7;a7 ( title #ca1 ,unit$ ,/ates ,code4 7,b7 ,^u application by ,fin,c,e,n or a ,/ate1 aft] consultation ) ! ,secret>y1 & )\t fur!r appropriation1 ! ,attorney ,g5]al ( ! ,unit$ ,/ates %all make available to ,fin,c,e,n or su* ,/ate excess unobligat$ balances 7z def9$ 9 section #ebd7;c77#h77;,d7 ( title #bh1 ,unit$ ,/ates ,code7 9 ! ,dep>tm5t ( ,ju/ice ,assets ,=feiture ,fund e/abli%$ "u section #ebd7;c7 ( title #bh1 ,unit$ ,/ates ,code4 7#c7 ,maximum am\nts 7,a7 ,dep>tm5t ( ! treasury ,! ,secret>y may n make available to ,fin,c,e,n a total ( m ?an #cj1jjj1jjj & to ! ,/ates a total ( n m ?an #e1jjj1jjj "u p>agraph 7#b77;,a74 7,b7 ,dep>tm5t ( ju/ice ,! ,attorney ,g5]al ( ! ,unit$ ,/ates may n make available to ,fin,c,e,n a total ( m ?an #aj1jjj1jjj & to ! ,/ates a total ( n m ?an #e1jjj1jjj "u p>agraph 7#b77;,b74 7d7 ,f$]al contractors ,n lat] ?an ! fir/ day ( ! fir/ full fiscal ye> beg9n+ at lea/ #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,adm9i/rator = ,f$]al ,procurem5t ,policy %all revise ! ,f$]al ,acquisition ,regulation ma9ta9$ "u section #acjc7;a77#a7 ( title #da1 ,unit$ ,/ates ,code1 to require any contractor :o is subject to ! requirem5t to disclose b5eficial own]%ip in=mation "u section #eccd ( title #ca1 ,unit$ ,/ates ,code1 z add$ by subsection 7a7 ( ?is section1 to provide ! in=mation requir$ to be disclos$ "u su* section to ! ,f$]al ,gov]nm5t z "p ( any bid or proposal = a contract ) a value ?re%old 9 excess ( ! simplifi$ acquisition ?re%old "u section #acd ( title #da1 ,unit$ ,/ates ,code4 7e7 ,revis$ due dilig5ce rulemak+ ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y %all revise ! f9al rule titl$ ,cu/om] ,due ,dilig5ce ,requirem5ts = ,f9ancial ,in/itutions 7,may #aa1 #bjaf2 #ha ,f$4 ,reg4 #bicig7 to-- 7#a7 br+ ! rule into con=mance ) ?is ,act & ! am5dm5ts made by ?is ,act2 7#b7 acc\nt = f9ancial in/itutions' access to compreh5sive b5eficial own]%ip in=mation fil$ by corporations & limit$ liability companies1 "u ?reat ( civil & crim9al p5alties1 "u ?is ,act1 & ! am5dm5ts made by ?is ,act2 & 7#c7 r$uce any burd5s on f9ancial in/itutions t are1 9 light ( ! enactm5t ( ?is ,act & ! am5dm5ts made by ?is ,act1 unnecess>y or duplicative4 #djb4 ,geographic t>get+ ord] ,! ,secret>y %all issue a geographic t>get+ ord]1 simil> to ! ord] issu$ by ! ,fin,c,e,n on ,novemb] #ae1 #bjah1 t-- 7#a7 applies to comm]cial real e/ate to ! same ext5t1 ) ! exception ( n hav+ ! same ?re%olds1 z ! ord] issu$ by ,fin,c,e,n on ,novemb] #ae1 #bjah1 applies to resid5tial real e/ate2 & 7#b7 e/abli%es a specific ?re%old = comm]cial real e/ate4 #djc4 ,b5eficial own]%ip /udies 7a7 ,o!r legal entities /udy ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all conduct a /udy & submit to ,congress a report-- 7#a7 id5tify+ ea* ,/ate t has proc$ures t enable p]sons to =m or regi/] "u ! laws ( ! ,/ate p>tn]%ips1 tru/s1 or o!r legal entities1 & ! nature ( ^? proc$ures2 7#b7 id5tify+ ea* ,/ate t requires p]sons seek+ to =m or regi/] p>tn]%ips1 tru/s1 or o!r legal entities "u ! laws ( ! ,/ate to provide b5eficial own]s 7z t t]m is def9$ 9 section #eccd7;a7 ( title #ca1 ,unit$ ,/ates ,code1 z add$ by section #dja ( ?is ,act7 or b5efici>ies ( su* entities1 & ! nature ( ! requir$ in=mation2 7#c7 evaluat+ :e!r ! lack ( available b5eficial own]%ip in=mation = p>tn]%ips1 tru/s1 or o!r legal entities-- 7,a7 raises conc]ns ab\t ! involvem5t ( su* entities 9 t]rorism1 money laund]+1 tax evasion1 securities fraud1 or o!r misconduct2 & 7,b7 has imp$$ inve/igations into entities suspect$ ( su* misconduct2 & 7#d7 evaluat+ :e!r ! failure ( ! ,unit$ ,/ates to require b5eficial own]%ip in=mation = p>tn]%ips & tru/s =m$ or regi/]$ 9 ! ,unit$ ,/ates has elicit$ int]national criticism & :at /eps1 if any1 ! ,unit$ ,/ates has tak5 or is plann+ to take 9 response4 7b7 ,effectiv5ess ( incorporation practices /udy ,n lat] ?an #e ye>s aft] ! date ( enactm5t ( ?is ,act1 ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all conduct a /udy & submit to ! ,congress a report assess+ ! effectiv5ess ( incorporation practices implem5t$ "u ?is ,act1 & ! am5dm5ts made by ?is ,act1 9-- 7#a7 provid+ law en=cem5t ag5cies ) prompt access to reliable1 useful1 & complete b5eficial own]%ip in=mation2 & 7#b7 /r5g!n+ ! capability ( law en=cem5t ag5cies to-- 7,a7 combat incorporation abuses & civil & crim9al misconduct2 & 7,b7 detect1 prev5t1 or puni% t]rorism1 money laund]+1 tax evasion1 or o!r misconduct4 7c7 ,us+ te*nology ,to avoid duplicative lay]s ( report+ obligations & increase accuracy ( b5eficial own]%ip in=mation 7#a7 ,9 g5]al ,! ,secret>y1 9 consultation ) ! ,attorney ,g5]al ( ! ,unit$ ,/ates %all conduct a /udy to evaluate-- 7,a7 ! feasibility ( adopt+ ,fin,c,e,n id5tify+ numb]s or o!r simplifi$ report+ me?ods 9 ord] to facilitate a simplifi$ b5eficial own]%ip regime = report+ companies2 7,b7 :e!r a report+ regime :]eby only company %>ehold]s are report$ )9 ! own]%ip *a9 ( a report+ company c\ld effectively track b5eficial own]%ip in=mation & increase in=mation to law en=cem5t2 7,c7 ! co/s associat$ ) impos+ any new v]ification requirem5ts on ,fin,c,e,n2 & 7,d7 ! res\rces necess>y to implem5t any su* *anges4 7#b7 ,f9d+s ,! ,secret>y %all pres5t f9d+s to ! relevant committees ( jurisdiction & provide recomm5dations = c>ry+ out ^! f9d+s4 ,v ,/r5g!n+ ! ability ( ! ,securities & ,ex*ange ,commission to pursue violations ( ! securities laws #eja4 ,%ort title ,?is title may be cit$ z ! ,securities ,fraud ,en=cem5t & ,inve/or ,comp5sation ,act ( #bjai4 #ejb4 ,inve/igations & prosecutions ( violations ( ! securities laws 7a7 ,9 g5]al ,section #ba7;d7 ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #ghu7d77 is am5d$-- 7#a7 9 p>agraph 7#c7-- 7,a7 9 ! p>agraph head+-- 7i7 by ins]t+ ,civil be=e ,money p5alties2 & 7ii7 by /rik+ 9 civil actions & ins]t+ & au?ority to seek disgorgem5t2 7,b7 9 subp>agraph 7,a71 by /rik+ jurisdiction to impose & all t foll[s ?r\gh ! p]iod at ! end & ins]t+ ! foll[+3 8jurisdiction to-- 7i7 impose1 ^u a prop] %[+1 a civil p5alty to be paid by ! p]son :o committ$ su* violation2 & 7ii7 require disgorgem5t "u p>agraph 7#g7 by ! p]son :o receiv$ any unju/ enri*m5t z a result ( su* violation4 2 & 7,c7 9 subp>agraph 7,b7-- 7i7 9 clause 7i71 9 ! fir/ s5t5ce1 by /rik+ ! p5alty & ins]t+ a civil p5alty impos$ "u subp>agraph 7,a77i72 7ii7 9 clause 7ii71 by /rik+ am\nt ( p5alty & ins]t+ am\nt ( a civil p5alty impos$ "u subp>agraph 7,a77i72 & 7iii7 9 clause 7iii71 9 ! matt] prec$+ item 7aa71 by /rik+ am\nt ( p5alty = ea* su* violation & ins]t+ am\nt ( a civil p5alty impos$ "u subp>agraph 7,a77i7 = ea* violation describ$ 9 t subp>agraph2 7#b7 9 p>agraph 7#d71 by ins]t+ "u p>agraph 7#g7 aft] funds disgorg$2 & 7#c7 by add+ at ! end ! foll[+3 7#g7 ,disgorgem5t 7,a7 ,9 g5]al ,9 any action or proce$+ br\ght by ! ,commission "u any provision ( ! securities laws1 ! ,commission may seek1 & any ,f$]al c\rt may ord]1 disgorgem5t ( any unju/ enri*m5t t a p]son obta9$ z a result ( a violation ( t provision4 7,b7 ,calculation ,any disgorgem5t t is ord]$ ) respect to a p]son "u subp>agraph 7,a7 %all be (fset by any am\nt ( re/itution t ! p]son is ord]$ to pay "u p>agraph 7#h74 7#h7 ,re/itution ,9 any proce$+ br\ght or in/itut$ by ! ,commission "u any provision ( ! securities laws1 ! ,commission may seek1 & any ,f$]al c\rt1 or1 ) respect to a proce$+ in/itut$ by ! ,commission1 ! ,commission1 may ord] re/itution to an inve/or 9 ! am\nt ( ! loss t ! inve/or su/a9$ z a result ( a violation ( t provision by a p]son t is-- 7,a7 regi/]$ z1 or requir$ to be regi/]$ z1 a brok]1 deal]1 inve/m5t advis]1 municipal securities deal]1 municipal advisor1 or transf] ag5t2 or 7,b7 associat$ )1 or1 z ( ! date on :i* ! violation occurs1 seek+ to become associat$ )1 an entity describ$ 9 subp>agraph 7,a74 7#i7 ,limitations p]iods 7,a7 ,disgorgem5t ,! ,commission may br+ a claim = disgorgem5t "u p>agraph 7#g7 n lat] ?an #e ye>s aft] ! date on :i* ! p]son aga9/ :i* ! claim is br\ght receives any unju/ enri*m5t z a result ( ! violation t gives rise to ! action or proce$+ 9 :i* ! ,commission seeks ! claim4 7,b7 ,equitable rem$ies ,! ,commission may seek a claim = any equitable rem$y1 includ+ = re/itution "u p>agraph 7#h71 an injunction1 or a b>1 susp5sion1 or cease & desi/ ord]1 n lat] ?an #ab ye>s aft] ! late/ date on :i* a violation t gives rise to ! claim occurs4 7,c7 ,calculation ,= ! purposes ( calculat+ any limitations p]iod "u ?is p>agraph ) respect to an action or claim1 any "t 9 :i* ! p]son aga9/ :i* ! action or claim1 z applicable1 is br\ght is outside ( ! ,unit$ ,/ates %all n c\nt t[>ds ! accrual ( t p]iod4 7#aj7 ,rule ( con/ruction ,no?+ 9 p>agraph 7#g7 or 7#h7 may be con/ru$ z alt]+ any "r t any private p>ty may h to ma9ta9 a suit = a violation ( ?is ,act4 4 7b7 ,applicability ,! am5dm5ts made by subsection 7a7 %all apply ) respect to any action or proce$+ t is comm5c$ on or aft] ! date ( enactm5t ( ?is ,act4