Empowering Financial Institutions to Fight Human Trafficking Act of 2018
(Sec. 2) This bill allows a qualified nonprofit organization to share information with financial institutions and other authorities regarding possible human trafficking or related money laundering activities. The Department of the Treasury must determine which financial institutions are eligible to receive this information. Nonprofit organizations, financial institutions, and other authorities shall not be held liable for sharing this information in compliance with specified regulations.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6729 Introduced in House (IH)]
<DOC>
115th CONGRESS
2d Session
H. R. 6729
To allow nonprofit organizations to register with the Secretary of the
Treasury and share information on activities that may involve human
trafficking or money laundering with financial institutions and
regulatory authorities, under a safe harbor that offers protections
from liability, in order to better identify and report potential human
trafficking or money laundering activities.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 6, 2018
Mrs. Wagner (for herself, Mrs. Carolyn B. Maloney of New York, and Mrs.
Love) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To allow nonprofit organizations to register with the Secretary of the
Treasury and share information on activities that may involve human
trafficking or money laundering with financial institutions and
regulatory authorities, under a safe harbor that offers protections
from liability, in order to better identify and report potential human
trafficking or money laundering activities.
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 ``Empowering Financial Institutions to
Fight Human Trafficking Act of 2018''.
SEC. 2. ANTI-MONEY LAUNDERING INFORMATION PROVIDERS.
(a) In General.--Subchapter II of chapter 53 of title 31, United
States Code, is amended by adding at the end the following:
``Sec. 5333. Anti-money laundering information providers
``(a) Cooperation Among Financial Institutions and Sources of
Information on Human Trafficking and Money Laundering.--
``(1) In general.--Not later than the end of the 120-day
period beginning on the date of enactment of this section, the
Secretary of the Treasury shall issue regulations to allow
nonprofit organizations that the Secretary determines to be
qualified to share information with financial institutions,
associations of financial institutions, their regulatory
authorities, and law enforcement agencies regarding
individuals, entities, organizations, and countries suspected
of possible human trafficking or related money laundering
activities.
``(2) Cooperation and information sharing procedures.--The
regulations required under paragraph (1) may include or create
procedures for cooperation and information sharing focused on--
``(A) matters specifically related to those
benefitting directly and indirectly from human
trafficking, the means by which human traffickers
transfer funds within the United States and around the
world, and the extent to which financial institutions,
including depository institutions, asset managers, and
insurers in the United States, are unwittingly involved
in such matters or transfers and the extent to which
such entities are at risk as a result; and
``(B) means of facilitating the identification of
accounts and transactions involving human traffickers
and facilitating the exchange of information concerning
such accounts and transactions between nonprofit
organizations, financial institutions, regulatory
authorities, and law enforcement agencies.
``(3) Method of regulation.--The regulations required under
paragraph (1) may--
``(A) be made coextensive with the regulations
adopted pursuant to other programs, regulated by the
Secretary, for sharing information on unlawful
activities between financial institutions;
``(B) establish a registration process overseen by
the Secretary that--
``(i) requires a nonprofit organization to
demonstrate that they meet certain
qualifications that the Secretary determines
appropriate, including the establishment of
policies and procedures reasonably designed to
ensure the prompt identification and correction
of inaccurate information shared under
paragraph (1);
``(ii) allows the Secretary to disqualify
nonprofit organizations that do not meet such
qualifications; and
``(iii) allows the Secretary to terminate
the registration of a nonprofit organization at
any point if the Secretary determines such
termination is appropriate and provides
sufficient notice of such termination to the
applicable nonprofit organization;
``(C) require a nonprofit organization to register
with the Secretary before sharing information that will
be subject to the safe harbor provided under subsection
(b); and
``(D) ensure that financial institutions,
associations of financial institutions, their
regulatory authorities, law enforcement authorities,
and any other appropriate entities are made aware of
those nonprofit organizations that are registered with
the Secretary.
``(4) Recipients of information.--
``(A) In general.--The Secretary shall determine
those financial institutions which are eligible to be
recipients of information from nonprofit organizations
made in compliance with the regulations issued under
subsection (a). Such eligible financial institutions
may include those already participating in existing
information sharing programs regulated by the Secretary
regarding unlawful activity.
``(B) No safe harbor for information provided to
other financial institutions.--If a nonprofit
organization shares information with a financial
institution that is not eligible under subparagraph
(A), such sharing of information shall not be subject
to the safe harbor provided under subsection (b).
``(5) Information sharing between financial institutions.--
The regulations adopted pursuant to this section--
``(A) may be coextensive with other regulations
governing the sharing of information between financial
institutions on suspected unlawful activities; and
``(B) shall allow financial institutions that
receive information in compliance with the regulations
issued under subsection (a) to share such information
with other financial institutions through existing
information sharing programs.
``(b) Safe Harbor for Information Providers.--
``(1) In general.--A nonprofit organization, financial
institution, association of financial institutions, regulatory
authority of a financial institution, or law enforcement agency
in compliance with the regulations issued under subsection (a)
that transmits or shares information described under subsection
(a) for the purposes of identifying or reporting activities
that may involve human trafficking acts or related money
laundering activities shall not be liable to any person under
any law or regulation of the United States, any constitution,
law, or regulation of any State or political subdivision
thereof, or under any contract or other legally enforceable
agreement (including any arbitration agreement), for such
disclosure or for any failure to provide notice of such
disclosure to the person who is the subject of such disclosure,
or any other person identified in the disclosure, except where
such transmission or sharing violates this section or
regulations issued pursuant to this section.
``(2) No good faith requirement.--A nonprofit organization,
financial institution, association of financial institutions,
regulatory authority of a financial institution, or law
enforcement agency that transmits or shares information
described under paragraph (1) shall not be required to
demonstrate that such transmission or sharing was made on a
good faith basis in order to receive the benefit of the safe
harbor provided by paragraph (1).
``(c) Non-Mandatory Compliance With This Section.--This section may
not be construed as requiring a nonprofit organization to comply with
the regulations issued under subsection (a) before sharing information
with a financial institution, association of financial institutions,
regulatory authority of a financial institution, or law enforcement
agency.
``(d) Reports to the Financial Services Industry on Suspicious
Financial Activities.--Beginning 10 months after the date of the
enactment of this section, and at least semiannually thereafter, the
Secretary of the Treasury shall--
``(1) publish a report containing a detailed analysis
identifying patterns of suspicious activity and other
investigative insights derived from the regulations issued
under this section and investigations conducted by Federal,
State, local, and Tribal law enforcement agencies to the extent
appropriate;
``(2) distribute such report to financial institutions; and
``(3) provide such report upon publication to the Committee
on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate.
``(e) Nonprofit Organization Defined.--For purposes of this
section, the term `nonprofit organization' means an organization
described in section 501(c)(3) of the Internal Revenue Code of 1986 and
exempt from taxation under section 501(a) of such Code.''.
(b) Clerical Amendment.--The table of contents for chapter 53 of
title 31, United States Code, is amended by inserting after the item
relating to section 5332 the following:
``5333. Anti-money laundering information providers.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported by the Yeas and Nays: 44 - 5.
Reported by the Committee on Financial Services. H. Rept. 115-981.
Reported by the Committee on Financial Services. H. Rept. 115-981.
Placed on the Union Calendar, Calendar No. 766.
Mr. Tipton moved to suspend the rules and pass the bill.
Considered under suspension of the rules. (consideration: CR H9052-9056)
DEBATE - The House proceeded with forty minutes of debate on H.R. 6729.
At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
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Considered as unfinished business. (consideration: CR H9059)
Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 297 - 124 (Roll no. 408).(text: CR H9052-9053)
Roll Call #408 (House)On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 297 - 124 (Roll no. 408). (text: CR H9052-9053)
Roll Call #408 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.