Section 1 Short title
This Act may be cited as the “Financial Institution Security Act”.
Financial Institution Security Act
A BILL
To facilitate better information sharing to assist in the fight against the funding of terrorist activities, and for other purposes.
Sec. 2 Information sharing
in subsection (b)—
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
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
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”.
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)”.
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—
in clause (i), by striking “or” at the end;
in clause (ii), by striking the period and inserting “; or”; and
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
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—
the Department of the Treasury's assessment of the risks and benefits of allowing sharing of information, consistent with appropriate privacy protections—
between United States financial institutions and foreign financial institutions;
between United States financial institutions and their foreign subsidiaries; and
between United States subsidiaries of foreign financial institutions and their parent financial institutions; and
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—
the financial institution voluntarily establishes and maintains such an anti-money laundering program;
such program is subject to examination, and has been examined, by the appropriate regulator; and
the Secretary determines such program to be adequately operating.
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.