Building Community Financial Institutions' Capacity to Combat Money Laundering Act - Establishes the BSA Compliance Fund.
Requires deposit into the Fund of: (1) 25% of all civil money penalties imposed upon domestic financial institutions for violations related to mandatory reports and recordkeeping on monetary instruments transactions, and (2) 25% of any civil fine paid by a domestic financial institution for violations of other federal law with respect to actions for which a civil money penalty is also imposed for prohibited monetary transactions.
Instructs the Secretary of the Treasury to: (1) use the Fund to make grants to community financial institutions with under $10 billion in assets to improve their compliance with statutory requirements governing reports and recordkeeping on monetary instruments transactions, and (2) give grant priority to institutions located in counties that have 20% or more of residents living below the federal poverty line.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3700 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 3700
To instruct the Secretary of the Treasury to use 25 percent of civil
fines collected for violations of the Bank Secrecy Act to make grants
to community financial institutions to improve compliance with the
provisions of that Act, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 11, 2013
Mr. Hinojosa (for himself, Ms. Shea-Porter, and Mr. Vela) introduced
the following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To instruct the Secretary of the Treasury to use 25 percent of civil
fines collected for violations of the Bank Secrecy Act to make grants
to community financial institutions to improve compliance with the
provisions of that Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Building Community Financial
Institutions' Capacity to Combat Money Laundering Act''.
SEC. 2. BSA COMPLIANCE IMPROVEMENT GRANTS.
(a) In General.--Subchapter II of chapter 53 of title 31, United
States Code, is amended--
(1) in section 5321, by adding at the end the following:
``(f) Civil Fines Used for Compliance Improvements.--
``(1) In general.--For each year, 25 percent of all civil
money penalties imposed on domestic financial institutions
pursuant to this section shall be deposited into the BSA
Compliance Fund established under section 5333.
``(2) Fines under other law for actions that violate this
section.--If a domestic financial institution pays a civil fine
under any other provision of Federal law with respect to an
action for which a civil money penalty is imposed under this
section, 25 percent of such civil fine shall be deposited into
the BSA Compliance Fund established under section 5333.''; and
(2) by adding at the end the following:
``Sec. 5333. Compliance improvement grants
``(a) BSA Compliance Fund.--There is established a fund in the
Treasury to be known as the `BSA Compliance Fund' (the `Fund'), which
shall be used to carry out the grant program under this section.
``(b) Compliance Grants.--
``(1) In general.--Subject to the availability of funds in
the Fund, the Secretary of the Treasury shall make grants to
community financial institutions to improve compliance with the
requirements of this subchapter.
``(2) Application.--A community financial institution that
wishes to receive a grant under this section shall submit an
application to the Secretary, in such form and manner as the
Secretary determines appropriate, that contains--
``(A) a compliance improvement plan that details
how the grant will be used to improve compliance with
the requirements of this subchapter;
``(B) the estimated cost of implementing such plan;
and
``(C) such other information as the Secretary
determines appropriate.
``(3) Competitive selection; priority for certain areas.--
The Secretary shall select which community financial
institutions receive a grant under this section on a
competitive basis based on the plans submitted under paragraph
(2), and shall give priority to institutions located in
counties that have 20 percent or more of residents living below
the Federal poverty line.
``(4) Amount of grant.--A grant made under this section may
not exceed the lesser of--
``(A) $200,000; or
``(B) 75 percent of the estimated cost of
implementing the proposed compliance improvement plan.
``(c) Administrative Costs.--Not more than 4 percent of the funds
in the Fund may be used to pay for the administrative costs of carrying
out this section.
``(d) Community Financial Institution Defined.--For purposes of
this section, the term `community financial institution' means a
domestic financial institution with less than $10,000,000,000 in
assets.''.
(b) Clerical Amendment.--The table of analysis for chapter 53 of
title 31, United States Code, is amended by inserting after the item
relating to section 5332 the following:
``5333. Compliance improvement grants.''.
SEC. 3. SUNSET.
(a) In General.--Effective October 1, 2018, title 31, United States
Code, is amended--
(1) in section 5321, by striking subsection (f);
(2) by striking section 5333; and
(3) in the table of analysis for chapter 53, by striking
the item relating to section 5333.
(b) Amounts Remaining in BSA Compliance Fund.--Effective October 1,
2018, the Secretary of the Treasury shall deposit any funds in the BSA
Compliance Fund into the general fund of the Treasury.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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