Financial Institution Security Act
This bill amends the USA PATRIOT Act to allow financial institutions to share information with one another regarding individuals, entities, organizations, and countries suspected of a broader range of unlawful activities. Under current law, such sharing is limited to information regarding terrorist acts or money laundering.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3439 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 3439
To facilitate better information sharing to assist in the fight against
the funding of terrorist activities, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 26, 2017
Mr. Pittenger introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To facilitate better information sharing to assist in the fight against
the funding of terrorist activities, 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 ``Financial Institution Security
Act''.
SEC. 2. INFORMATION SHARING.
(a) In General.--Section 314 of the USA PATRIOT Act (31 U.S.C. 5311
note) is amended--
(1) in subsection (b)--
(A) by striking ``terrorist or money laundering
activities'' and inserting ``terrorist acts, money
laundering activities, or a specified unlawful activity
(as defined under section 1956(c)(7) of title 18,
United States Code)''; and
(B) by striking ``activities that may involve
terrorist acts or money laundering activities'' and
inserting ``activities that may involve terrorist acts,
money laundering activities, or a specified unlawful
activity''; and
(2) in subsection (c), by inserting ``or a specified
unlawful activity (as defined under section 1956(c)(7) of title
18, United States Code)'' after ``terrorist acts or money
laundering activities''.
(b) Update to Regulations.--Section 314(a) of the USA PATRIOT Act
(31 U.S.C. 5311 note) is amended by striking ``or money laundering
activities'' each place such term appears and inserting ``, money
laundering activities, or a specified unlawful activity (as defined
under section 1956(c)(7) of title 18, United States Code)''.
(c) Sense of Congress.--Section 314 of the USA PATRIOT Act (31
U.S.C. 5311 note) is amended by adding at the end the following:
``(e) Sense of Congress.--It is the sense of the Congress that, in
furtherance of efforts to stop the financing of terror and other forms
of illicit financing through increased sharing of information, and
consistent with the need to prevent inappropriate dissemination of such
information--
``(1) Federal law enforcement agencies and regulators
should share information about terrorist activities, money
laundering activities, and other specified unlawful activities
(as defined under section 1956(c)(7) of title 18, United States
Code) to the fullest extent possible and in a timely fashion;
and
``(2) financial institutions, including nonbank financial
institutions, should share information about such acts and
activities with each other to the fullest extent possible and
in a timely fashion.''.
SEC. 3. DISCLOSURE LIABILITY.
Section 5318(g)(3)(B) of title 31, United States Code, is amended--
(1) in clause (i), by striking ``or'' at the end;
(2) in clause (ii), by striking the period and inserting
``; or''; and
(3) by adding at the end the following:
``(iii) any duty or requirement of a
financial institution or any director, officer,
employee, or agent of such institution to
demonstrate to any person, as used in such
subparagraph, that a disclosure referenced in
such subparagraph is made in good faith.''.
SEC. 4. REPORT TO CONGRESS.
(a) In General.--Not later than the end of the 120-day period
beginning on the date of the enactment of this Act, the Secretary of
the Treasury shall report to the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate regarding--
(1) the Department of the Treasury's assessment of the
risks and benefits of allowing sharing of information,
consistent with appropriate privacy protections--
(A) between United States financial institutions
and foreign financial institutions;
(B) between United States financial institutions
and their foreign subsidiaries; and
(C) between United States subsidiaries of foreign
financial institutions and their parent financial
institutions; and
(2) whether a financial institution defined under section
5312(a)(2) of title 31, United States Code, that is not
required under Treasury regulations on the date of the
enactment of this Act to maintain an anti-money laundering
program, should be authorized to appropriately share
information pursuant to subsection (b) of section 314 of the
USA PATRIOT Act, if--
(A) the financial institution voluntarily
establishes and maintains such an anti-money laundering
program;
(B) such program is subject to examination, and has
been examined, by the appropriate regulator; and
(C) the Secretary determines such program to be
adequately operating.
(b) Separate Presentation of Classified Material.--Any part of the
report described under subsection (a) that involves information which
is properly classified under criteria established by the President
shall be submitted to the committees described under subsection (a)
separately in a classified annex and, if requested by the chairman or
ranking Member of one of such committees, as a briefing at an
appropriate level of security.
SEC. 5. RULEMAKING.
Not later than the end of the 180-day period beginning on the date
of the enactment of this Act, the Secretary of the Treasury shall issue
regulations to be consistent with the amendments made by this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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