H.R. 2514 — what changed

Section 5312(a) of title 31, United States Code, is amended by adding at the end the following:

changed “(6) “(7) Bank Secrecy Act—The term Bank Secrecy act means—

“(A) section 21 of the Federal Deposit Insurance Act;

“(B) chapter 2 of title I of Public Law 91–508; and

“(C) this subchapter.”

removed Section 310 of title 31, United States Code, is amended—

added “(d) Special hiring authority

added “(1) In general—The Secretary of the Treasury may appoint, without regard to the provisions of sections 3309 through 3318 of title 5, candidates directly to positions in the competitive service (as defined in section 2102 of that title) in FinCEN.

added “(2) Primary responsibilities—The primary responsibility of candidates appointed pursuant to paragraph (1) shall be to provide substantive support in support of the duties described in subparagraphs (A), (B), (E), and (F) of subsection (b)(2).”

removed “(d) Employee compensation—In fixing the compensation for employees of FinCEN, the Secretary shall—

removed “(1) fix such compensation without regard to the provisions of chapter 51 or subchapter III of chapter 53 of title 5, United States Code; and

removed “(2) ensure that such compensation is comparable to the compensation provided by the Board of Governors of the Federal Reserve System, the Bureau of Consumer Financial Protection, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency.”

added “1629. Support for capacity of the International Monetary Fund to prevent money laundering and financing of terrorism

added “The Secretary of the Treasury shall instruct the United States Executive Director at the International Monetary Fund to support the increased use of the administrative budget of the Fund for technical assistance that strengthens the capacity of Fund members to prevent money laundering and the financing of terrorism.”

removed The Secretary of the Treasury shall work with the Secretary’s foreign counterparts, including through the Financial Action Task Force, the International Monetary Fund, the World Bank, and the United Nations, to promote stronger anti-money laundering frameworks and enforcement of anti-money laundering laws.

changed “316. Treasury Attaché Attachés Program

changed “(a) In general—There is established the Treasury Attaché Attachés Program, under which the Secretary of the Treasury shall appoint employees of the Department of the Treasury Treasury, after nomination by the Director of the Financial Crimes Enforcement Network (“FinCEN”), as a Treasury attaché, who shall—

changed “(1) have expertise in be knowledgeable about the Bank Secrecy Act and anti-money laundering issues;

“(2) be co-located in a United States embassy;

“(3) perform outreach with respect to Bank Secrecy Act and anti-money laundering issues;

“(4) establish and maintain relationships with foreign counterparts, including employees of ministries of finance, central banks, and other relevant official entities;

“(5) conduct outreach to local and foreign financial institutions and other commercial actors, including—

changed “(A) information exchanges; exchanges through FinCEN and FinCEN programs; and

“(B) soliciting buy-in and cooperation for the implementation of—

“(i) United States and multilateral sanctions; and

“(ii) international standards on anti-money laundering and the countering of the financing of terrorism; and

“(6) perform such other actions as the Secretary determines appropriate.

“(b) Number of attachés—The number of Treasury attachés appointed under this section at any one time shall be not fewer than 6 more employees than the number of employees of the Department of the Treasury serving as Treasury attachés on March 1, 2019.

“(c) Compensation—Each Treasury attaché appointed under this section and located at a United States embassy shall receive compensation at the higher of—

changed “(1) the rate of compensation provided to a Foreign Service officer at a comparable career level serving at the same embassy; or

“(2) the rate of compensation the Treasury attaché would otherwise have received, absent the application of this subsection.

“(d) Bank Secrecy Act defined—In this section, the term Bank Secrecy Act has the meaning given that term under section 5312.”

removed There is authorized to be appropriated for fiscal year 2020 to the Secretary of the Treasury for purposes of providing technical assistance for international cooperation an amount equal to twice the amount authorized for such purpose for fiscal year 2019.

Section 310 of title 31, United States Code, as amended by section 102, is further amended by inserting after subsection (d) the following:

“(e) FinCEN Domestic Liaisons

“(1) In general—The Director of FinCEN shall appoint at least 6 senior FinCEN employees as FinCEN Domestic Liaisons, who shall—

“(A) each be assigned to focus on a specific region of the United States;

changed “(B) be located at an office in such region (or co-located at an office of another the Board of Governors of the Federal agency Reserve System in such region);region); and

changed “(C) provide education to, and coordination with, both public- perform outreach to BSA officers at financial institutions (including non-bank financial institutions) and private-sector entities persons who are not financial institutions, especially with respect to FinCEN; andactions taken by FinCEN that require specific actions by, or have specific effects on, such institutions or persons, as determined by the Director.

changed “(D) perform outreach to financial institutions (including non-bank financial institutions) and persons who are not financial institutions, especially with respect to actions taken by FinCEN that require specific actions by, or have specific effects on, such institutions or persons, as determined by the Director.“(2) Definitions—In this subsection:

changed “(2) Financial institution defined—In this subsection, the “(A) BSA officer—The term “BSA officer” means an employee of a financial institution has whose primary job responsibility involves compliance with the meaning given that Bank Secrecy Act, as such term is defined under section 5312.”5312.

added “(B) Financial institution—The term financial institution has the meaning given that term under section 5312.”

added Section 310 of title 31, United States Code, as amended by section 108, is further amended by inserting after subsection (e) the following:

added “(f) FinCEN Exchange

added “(1) Establishment—The FinCEN Exchange is hereby established within FinCEN, which shall consist of the FinCEN Exchange program of FinCEN in existence on the day before the date of enactment of this paragraph.

added “(2) Purpose—The FinCEN Exchange shall facilitate a voluntary public-private information sharing partnership among law enforcement, financial institutions, and FinCEN to—

added “(A) effectively and efficiently combat money laundering, terrorism financing, organized crime, and other financial crimes;

added “(B) protect the financial system from illicit use; and

added “(C) promote national security.

added “(3) Report

added “(A) In general—Not later than one year after the date of enactment of this subsection, and annually thereafter for the next five years, the Secretary of the Treasury shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report containing—

added “(i) an analysis of the efforts undertaken by the FinCEN Exchange and the results of such efforts;

added “(ii) an analysis of the extent and effectiveness of the FinCEN Exchange, including any benefits realized by law enforcement from partnership with financial institutions; and

added “(iii) any legislative, administrative, or other recommendations the Secretary may have to strengthen FinCEN Exchange efforts.

added “(B) Classified annex—Each report under subparagraph (A) may include a classified annex.

added “(4) Information sharing requirement—Information shared pursuant to this subsection shall be shared in compliance with all other applicable Federal laws and regulations.

added “(5) Rule of construction—Nothing under this subsection may be construed to create new information sharing authorities related to the Bank Secrecy Act (as such term is defined under section 5312 of title 31, United States Code).

added “(6) Financial institution defined—In this subsection, the term “financial institution” has the meaning given that term under section 5312.”

removed “(6) FinCEN Exchange

removed “(A) Establishment—The FinCEN Exchange is hereby established within FinCEN, which shall consist of the FinCEN Exchange program of FinCEN in existence on the day before the date of enactment of this paragraph.

removed “(B) Purpose—The FinCEN Exchange shall further the purpose described under paragraph (1) by facilitating a voluntary public-private information sharing partnership among law enforcement, financial institutions, and FinCEN to—

removed “(i) effectively and efficiently combat money laundering, terrorism financing, organized crime, and other financial crimes;

removed “(ii) protect the financial system from illicit use; and

removed “(iii) promote national security.

removed “(C) FinCEN defined—In this paragraph, the term FinCEN means the Financial Crimes Enforcement Network of the Department of the Treasury.”

changed “(5) Sharing OECD pilot program on sharing with foreign branches, subsidiaries, and affiliates

changed “(A) In general—Not later than 180 days after the date of the enactment of this paragraph, the Secretary of the Treasury shall issue rules permitting any financial institution with a reporting obligation under this subsection rules, subject to share information on reports under this subsection with the institution’s foreign branches, subsidiaries, such controls and affiliates for restrictions as the purposes Director of combating illicit finance risks, notwithstanding any other provision the Financial Crimes Enforcement Network determines appropriate, establishing the pilot program described under subparagraph (B). In prescribing such rules, the Secretary shall ensure that the sharing of law except information described under such subparagraph (B).(B) is subject to appropriate standards and requirements regarding data security and the confidentiality of personally identifiable information.

changed “(B) Exception—In issuing the regulations Pilot program described—The pilot program required under subparagraph (A), the Secretary may not permit a financial institution to share information on reports under this subsection with a foreign branch, subsidiary, or affiliate located in a jurisdiction that—paragraph shall—

added “(i) permit any financial institution with a reporting obligation under this subsection to share reports (and information on such reports) under this subsection with the institution’s foreign branches, subsidiaries, and affiliates for the purpose of combating illicit finance risks, notwithstanding any other provision of law except subparagraph (C), but only if such foreign branch, subsidiary, or affiliate is located in a jurisdiction that is a member of the Organisation for Economic Co-operation and Development;

added “(ii) terminate on the date that is five years after the date of enactment of this paragraph, except that the Secretary may extend the pilot program for up to two years upon submitting a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate that includes—

added “(I) a certification that the extension is in the national interest of the United States, with a detailed explanation of the reasons therefor;

added “(II) an evaluation of the usefulness of the pilot program, including a detailed analysis of any illicit activity identified or prevented as a result of the program; and

added “(III) a detailed legislative proposal providing for a long-term extension of the pilot program activities, including expected budgetary resources for the activities, if the Secretary determines that a long-term extension is appropriate.

added “(C) Prohibition involving certain jurisdictions—In issuing the regulations required under subparagraph (A), the Secretary may not permit a financial institution to share information on reports under this subsection with a foreign branch, subsidiary, or affiliate located in a jurisdiction that—

“(i) is subject to countermeasures imposed by the Federal Government; or

added “(ii) the Secretary has determined cannot reasonably protect the privacy and confidentiality of such information.

added “(D) Implementation updates—Not later than 360 days after the date rules are issued under subparagraph (A), and annually thereafter for three years, the Secretary, or the Secretary’s designee, shall brief the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on—

added “(i) the degree of any information sharing permitted under the pilot program, and a description of criteria used by the Secretary to evaluate the appropriateness of the information sharing;

added “(ii) the effectiveness of the pilot program in identifying or preventing the violation of a United States law or regulation, and mechanisms that may improve such effectiveness; and

added “(iii) any recommendations to amend the design of the pilot program, or to include specific non-OECD jurisdictions in the program.

added “(6) Treatment of foreign jurisdiction-originated reports—A report received by a financial institution from a foreign affiliate with respect to a suspicious transaction relevant to a possible violation of law or regulation shall be subject to the same confidentiality requirements provided under this subsection for a report of a suspicious transaction described under paragraph (1).”

removed “(ii) the Secretary, in consultation with the Civil Liberties and Privacy Officer of the Financial Crimes Enforcement Network, has determined cannot reasonably protect the privacy and confidentiality of such information.”

added “5333. AML/CFT Training

added “(a) Training requirement—Each Federal examiner reviewing compliance with the Bank Secrecy Act shall attend at least 10 hours of annual training on anti-money laundering (AML) and the countering of the financing of terrorism (CFT), including—

removed The Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended—

removed “1009B. AML/CFT Training

removed “(a) Training requirement—Each examiner employed by a Federal financial institutions regulatory agency shall attend at least 10 hours of annual training on anti-money laundering (AML) and the countering of the financing of terrorism (CFT), including—

“(1) potential risk profiles and red flags that may be encountered during examinations;

“(2) financial crime patterns and trends;

“(3) the high-level context for why AML and CFT programs are necessary for law enforcement agencies and other national security agencies, and what risks the programs seek to mitigate; and

“(4) de-risking and its effect on the provision of financial services.

added “(b) Training materials and standards—The Secretary of the Treasury shall, in consultation with the Financial Institutions Examination Council, the Financial Crimes Enforcement Network, and State, Federal, and Tribal law enforcement agencies, establish appropriate training materials and standards for use in the training required under subsection (a).”

removed “(b) Training materials and standards—The Council shall establish uniform training materials and standards for use in the training required under subsection (a).”

“(o) Sharing of compliance resources

changed “(1) Sharing permitted—Two or more financial institutions may enter into collaborative arrangements in order to more efficiency efficiently comply with the requirements of this subchapter.

“(2) Outreach—The Secretary of the Treasury and the appropriate supervising agencies shall carry out an outreach program to provide financial institutions with information, including best practices, with respect to the sharing of resources described under paragraph (1).”

changed Section 314(a) 5318(g) of the USA PATRIOT Act (31 U.S.C. 5311 note), title 31, United States Code, as amended by section 109, 201(a)(1), is further amended by adding at the end the following:

changed “(7) Point Sharing of contact listthreat pattern and trend information

changed “(A) In general—The Secretary SAR Activity Review—The Director of the Financial Crimes Enforcement Network shall maintain restart publication of the “SAR Activity Review – Trends, Tips & Issues”, on not less than a list containing contact information for with respect semi-annual basis, to a law enforcement agency, those individuals who serve as points provide meaningful information about the preparation, use, and value of contact for a Suspicious Activity Report review committee.reports filed under this subsection by financial institutions, as well as other reports filed by financial institutions under the Bank Secrecy Act.

changed “(B) Availability of list—The Secretary shall make the list Inclusion of contact information typologies—In each publication described under subparagraph (A) available to all (A), the Director shall provide financial institutions with typologies, including data that can be adapted in algorithms (including for artificial intelligence and law enforcement agencies.”machine learning programs) where appropriate, on emerging money laundering and counter terror financing threat patterns and trends.

added “(C) Typology defined—For purposes of this paragraph, the term “typology” means the various techniques used to launder money or finance terrorism.”

added “(d) Source of rewards—For the purposes of paying a reward under this section, the Secretary may use, without further appropriation, criminal fine, civil penalty, or forfeiture amounts recovered based on the original information with respect to which the reward is being paid.”

added “5323A. Whistleblower incentives

added “(a) Definitions—In this section:

added “(1) Covered judicial or administrative action—The term covered judicial or administrative action means any judicial or administrative action brought by FinCEN under the Bank Secrecy Act that results in monetary sanctions exceeding $1,000,000.

added “(2) FinCEN—The term FinCEN means the Financial Crimes Enforcement Network.

added “(3) Monetary sanctions—The term monetary sanctions, when used with respect to any judicial or administrative action, means—

added “(A) any monies, including penalties, disgorgement, and interest, ordered to be paid; and

added “(B) any monies deposited into a disgorgement fund as a result of such action or any settlement of such action.

added “(4) Original information—The term original information means information that—

added “(A) is derived from the independent knowledge or analysis of a whistleblower;

added “(B) is not known to FinCEN from any other source, unless the whistleblower is the original source of the information; and

added “(C) is not exclusively derived from an allegation made in a judicial or administrative hearing, in a governmental report, hearing, audit, or investigation, or from the news media, unless the whistleblower is a source of the information.

added “(5) Related action—The term related action, when used with respect to any judicial or administrative action brought by FinCEN, means any judicial or administrative action that is based upon original information provided by a whistleblower that led to the successful enforcement of the action.

added “(6) Secretary—The term Secretary means the Secretary of the Treasury.

added “(7) Whistleblower—The term whistleblower means any individual who provides, or 2 or more individuals acting jointly who provide, information relating to a violation of laws enforced by FinCEN, in a manner established, by rule or regulation, by FinCEN.

added “(b) Awards

added “(1) In general—In any covered judicial or administrative action, or related action, the Secretary, under such rules as the Secretary may issue and subject to subsection (c), shall pay an award or awards to 1 or more whistleblowers who voluntarily provided original information to FinCEN that led to the successful enforcement of the covered judicial or administrative action, or related action, in an aggregate amount equal to not more than 30 percent, in total, of what has been collected of the monetary sanctions imposed in the action.

added “(2) Source of awards—For the purposes of paying any award under paragraph (1), the Secretary may use, without further appropriation, monetary sanction amounts recovered based on the original information with respect to which the award is being paid.

added “(c) Determination of amount of award; denial of award

added “(1) Determination of amount of award

added “(A) Discretion—The determination of the amount of an award made under subsection (b) shall be in the discretion of the Secretary.

added “(B) Criteria—In responding to a disclosure and determining the amount of an award made, FinCEN staff shall meet with the whistleblower to discuss evidence disclosed and rebuttals to the disclosure, and shall take into consideration—

added “(i) the significance of the information provided by the whistleblower to the success of the covered judicial or administrative action;

added “(ii) the degree of assistance provided by the whistleblower and any legal representative of the whistleblower in a covered judicial or administrative action;

added “(iii) the mission of FinCEN in deterring violations of the law by making awards to whistleblowers who provide information that lead to the successful enforcement of such laws; and

added “(iv) such additional relevant factors as the Secretary may establish by rule.

added “(2) Denial of award—No award under subsection (b) shall be made—

added “(A) to any whistleblower who is, or was at the time the whistleblower acquired the original information submitted to FinCEN, a member, officer, or employee of—

added “(i) an appropriate regulatory agency;

added “(ii) the Department of Justice;

added “(iii) a self-regulatory organization; or

added “(iv) a law enforcement organization;

added “(B) to any whistleblower who is convicted of a criminal violation, or who the Secretary has a reasonable basis to believe committed a criminal violation, related to the judicial or administrative action for which the whistleblower otherwise could receive an award under this section;

added “(C) to any whistleblower who gains the information through the performance of an audit of financial statements required under the Bank Secrecy Act and for whom such submission would be contrary to its requirements; or

added “(D) to any whistleblower who fails to submit information to FinCEN in such form as the Secretary may, by rule, require.

added “(3) Statement of reasons—For any decision granting or denying an award, the Secretary shall provide to the whistleblower a statement of reasons that includes findings of fact and conclusions of law for all material issues.

added “(d) Representation

added “(1) Permitted representation—Any whistleblower who makes a claim for an award under subsection (b) may be represented by counsel.

added “(2) Required representation

added “(A) In general—Any whistleblower who anonymously makes a claim for an award under subsection (b) shall be represented by counsel if the whistleblower anonymously submits the information upon which the claim is based.

added “(B) Disclosure of identity—Prior to the payment of an award, a whistleblower shall disclose their identity and provide such other information as the Secretary may require, directly or through counsel for the whistleblower.

added “(e) Appeals—Any determination made under this section, including whether, to whom, or in what amount to make awards, shall be in the discretion of the Secretary. Any such determination, except the determination of the amount of an award if the award was made in accordance with subsection (b), may be appealed to the appropriate court of appeals of the United States not more than 30 days after the determination is issued by the Secretary. The court shall review the determination made by the Secretary in accordance with section 706 of title 5.

added “(f) Employee protections—The Secretary of the Treasury shall issue regulations protecting a whistleblower from retaliation, which shall be as close as practicable to the employee protections provided for under section 1057 of the Consumer Financial Protection Act of 2010.”

removed Section 314(a) of the USA PATRIOT Act (31 U.S.C. 5311 note), as amended by section 206, is further amended by adding at the end the following:

removed “(8) Sharing of threat pattern and trend information

removed “(A) In general—Not less than monthly, the Secretary shall provide financial institutions with typologies on emerging money laundering and counter terror financing threat patterns and trends.

removed “(B) Information classification—In providing information pursuant to subparagraph (A), the Secretary may provide public and sensitive information to financial institutions, but may not provide classified information, unless otherwise permitted by law.”

added Section 5321 of title 31, United States Code, is amended by adding at the end the following:

added “(f) Certain violators barred from serving on boards of United States financial institutions

added “(1) In general—An individual found to have committed an egregious violation of a provision of (or rule issued under) the Bank Secrecy Act shall be barred from serving on the board of directors of a United States financial institution for a 10-year period beginning on the date of such finding.

added “(2) Egregious violation defined—With respect to an individual, the term egregious violation means—

added “(A) a felony criminal violation for which the individual was convicted; and

added “(B) a civil violation where the individual willfully committed such violation and the violation facilitated money laundering or the financing of terrorism.”

removed “(d) Source of rewards—For the purposes of paying an award under this section, there are authorized to be appropriated such sums as may be necessary, and the Secretary may also use funds from the Department of the Treasury Forfeiture Fund and the Department of Justice Assets Forfeiture Fund.”

removed “5323A. Whistleblower incentives

removed “(a) Definitions—In this section:

removed “(1) Covered judicial or administrative action—The term covered judicial or administrative action means any judicial or administrative action brought by FinCEN under the Bank Secrecy Act that results in monetary sanctions exceeding $1,000,000.

removed “(2) FinCEN—The term FinCEN means the Financial Crimes Enforcement Network.

removed “(3) Monetary sanctions—The term monetary sanctions, when used with respect to any judicial or administrative action, means—

removed “(A) any monies, including penalties, disgorgement, and interest, ordered to be paid; and

removed “(B) any monies deposited into a disgorgement fund as a result of such action or any settlement of such action.

removed “(4) Original information—The term original information means information that—

removed “(A) is derived from the independent knowledge or analysis of a whistleblower;

removed “(B) is not known to FinCEN from any other source, unless the whistleblower is the original source of the information; and

removed “(C) is not exclusively derived from an allegation made in a judicial or administrative hearing, in a governmental report, hearing, audit, or investigation, or from the news media, unless the whistleblower is a source of the information.

removed “(5) Related action—The term related action, when used with respect to any judicial or administrative action brought by FinCEN, means any judicial or administrative action that is based upon original information provided by a whistleblower that led to the successful enforcement of the action.

removed “(6) Secretary—The term Secretary means the Secretary of the Treasury.

removed “(7) Whistleblower—The term whistleblower means any individual who provides, or 2 or more individuals acting jointly who provide, information relating to a violation of laws enforced by FinCEN, in a manner established, by rule or regulation, by FinCEN.

removed “(b) Awards

removed “(1) In general—In any covered judicial or administrative action, or related action, the Secretary, under such rules as the Secretary may issue and subject to subsection (c), shall pay an award or awards to 1 or more whistleblowers who voluntarily provided original information to FinCEN that led to the successful enforcement of the covered judicial or administrative action, or related action, in an aggregate amount equal to—

removed “(A) not less than 10 percent, in total, of what has been collected of the monetary sanctions imposed in the action or related actions; and

removed “(B) not more than 30 percent, in total, of what has been collected of the monetary sanctions imposed in the action or related actions.

removed “(2) Source of awards—For the purposes of paying any award under paragraph (1) there are authorized to be appropriated such sums as may be necessary, and the Secretary may also use funds from the Department of the Treasury Forfeiture Fund and the Department of Justice Assets Forfeiture Fund.

removed “(c) Determination of amount of award; denial of award

removed “(1) Determination of amount of award

removed “(A) Discretion—The determination of the amount of an award made under subsection (b) shall be in the discretion of the Secretary.

removed “(B) Criteria—In responding to a disclosure and determining the amount of an award made, FinCEN staff shall meet with the whistleblower to discuss evidence disclosed and rebuttals to the disclosure, and—

removed “(i) shall take into consideration—

removed “(I) the significance of the information provided by the whistleblower to the success of the covered judicial or administrative action;

removed “(II) the degree of assistance provided by the whistleblower and any legal representative of the whistleblower in a covered judicial or administrative action;

removed “(III) the mission of FinCEN in deterring violations of the law by making awards to whistleblowers who provide information that lead to the successful enforcement of such laws; and

removed “(IV) such additional relevant factors as the Secretary may establish by rule; and

removed “(ii) shall not take into consideration the balance of any fund described under section 5323(d).

removed “(2) Denial of award—No award under subsection (b) shall be made—

removed “(A) to any whistleblower who is, or was at the time the whistleblower acquired the original information submitted to FinCEN, a member, officer, or employee of—

removed “(i) an appropriate regulatory agency;

removed “(ii) the Department of Justice;

removed “(iii) a self-regulatory organization; or

removed “(iv) a law enforcement organization;

removed “(B) to any whistleblower who is convicted of a criminal violation related to the judicial or administrative action for which the whistleblower otherwise could receive an award under this section;

removed “(C) to any whistleblower who gains the information through the performance of an audit of financial statements required under the Bank Secrecy Act and for whom such submission would be contrary to its requirements; or

removed “(D) to any whistleblower who fails to submit information to FinCEN in such form as the Secretary may, by rule, require.

removed “(3) Statement of reasons—For any decision granting or denying an award, the Secretary shall provide to the whistleblower a statement of reasons that includes findings of fact and conclusions of law for all material issues.

removed “(d) Representation

removed “(1) Permitted representation—Any whistleblower who makes a claim for an award under subsection (b) may be represented by counsel.

removed “(2) Required representation

removed “(A) In general—Any whistleblower who anonymously makes a claim for an award under subsection (b) shall be represented by counsel if the whistleblower anonymously submits the information upon which the claim is based.

removed “(B) Disclosure of identity—Prior to the payment of an award, a whistleblower shall disclose their identity and provide such other information as the Secretary may require, directly or through counsel for the whistleblower.

removed “(e) Appeals—Any determination made under this section, including whether, to whom, or in what amount to make awards, shall be in the discretion of the Secretary. Any such determination, except the determination of the amount of an award if the award was made in accordance with subsection (b), may be appealed to the appropriate court of appeals of the United States not more than 30 days after the determination is issued by the Secretary. The court shall review the determination made by the Secretary in accordance with section 706 of title 5.”

added “(g) Additional damages for repeat violators—In addition to any other fines permitted by this section and section 5322, with respect to a person who has previously been convicted of a criminal provision of (or rule issued under) the Bank Secrecy Act or who has admitted, as part of a deferred- or non-prosecution agreement, to having previously committed a violation of a criminal provision of (or rule issued under) the Bank Secrecy Act, the Secretary may impose an additional civil penalty against such person for each additional such violation in an amount equal to up three times the profit gained or loss avoided by such person as a result of the violation.”

removed Section 5321 of title 31, United States Code, is amended by adding at the end the following:

removed “(f) Certain violators barred from serving on public company boards

removed “(1) In general—An individual found to have committed an egregious violation of a provision of (or rule issued under) this subchapter, section 21 of the Federal Deposit Insurance Act, or section 123 of Public Law 91–508 shall be barred from serving on the board of directors of a public company for a 10-year period beginning on the date of such finding.

removed “(2) Definitions—In this subsection:

removed “(A) Egregious violation—With respect to an individual, the term egregious violation means—

removed “(i) a felony criminal violation for which the individual was convicted; and

removed “(ii) a civil violation where the individual knowingly committed such violation and the violation facilitated money laundering or the financing of terrorism.

removed “(B) Public company—The term public company means an issuer the securities of which are traded on a national securities exchange.

removed “(C) Other securities terms—The terms issuer and national securities exchange have the meaning given those terms, respectively, under section 3 of the Securities Exchange Act of 1934.”

removed Section 5321 of title 31, United States Code, as amended by section 209, is further amended by adding at the end the following:

removed “(g) Additional damages for repeat violators—In addition to any other fines permitted by this section and section 5322, with respect to a person who has previously violated a provision of (or rule issued under) this subchapter, section 21 of the Federal Deposit Insurance Act, or section 123 of Public Law 91–508, the Secretary may impose an additional civil penalty against such person for each additional such violation in an amount equal to up to three times the profit gained or loss avoided by such person as a result of the violation.”

added “(e) Return of profits and bonuses—A person convicted of violating a provision of (or rule issued under) the Bank Secrecy Act shall—

added “(1) in addition to any other fine under this section, be fined in an amount equal to the profit gained by such person by reason of such violation, as determined by the court; and

added “(2) if such person is an individual who was a partner, director, officer, or employee of a financial institution at the time the violation occurred, repay to such financial institution any bonus paid to such individual during the Federal fiscal year in which the violation occurred or the Federal fiscal year after which the violation occurred.”

changed Section 5322 162(f) of title 31, United States Code, the Internal Revenue Code of 1986 is amended by adding at the end the following:

changed “(e) Return “(7) Violations of profits and bonuses—A person convicted the Bank Secrecy Act—In the case of violating a provision of (or rule issued under) this subchapter, section 21 payment described in paragraph (1) that is in relation to any violation of the Federal Deposit Insurance Act, or Bank Secrecy Act (as defined under section 123 5312 of Public Law 91–508 shall—title 31, United States Code), no deduction shall be allowed under this chapter for attorney’s fees related to such payment.”

removed “(1) in addition to any other fine under this section, be fined in an amount equal to the profit gained by such person by reason of such violation, as determined by the court; and

removed “(2) if such person is an individual who was a partner, director, officer, or employee of a domestic financial institution or nonfinancial trade or business at the time the violation occurred, repay to such domestic financial institution or nonfinancial trade or business any bonus paid to such individual during the Federal fiscal year in which the violation occurred.”

added “(Z) a person trading or acting as an intermediary in the trade of antiquities, including an advisor, consultant or any other person who engages as a business in the solicitation of the sale of antiquities; or”

removed Section 162(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following:

removed “(6) Violations of the Bank Secrecy Act—In the case of a payment described in paragraph (1) that is in relation to any violation of the Bank Secrecy Act (as defined under section 5312 of title 31, United States Code), no deduction shall be allowed under this chapter for attorney’s fees related to such payment.”

added The Secretary of the Treasury shall issue a geographic targeting order, similar to the order issued by the Financial Crimes Enforcement Network on November 15, 2018, that—

removed “(Z) dealers in art or antiquities; or”

removed The Secretary of the Treasury shall revise the geographic targeting order issued by the Financial Crimes Enforcement Network on November 15, 2018 (the “Order”), so that the Order—

Section 5318 of title 31, United States Code, as amended by section 203, is further amended by adding at the end the following:

“(p) Encouraging innovation in compliance

changed “(1) In general—The financial agencies Federal functional regulators shall encourage financial institutions to consider, evaluate, and, where appropriate, responsibly implement innovative approaches to meet the requirements of this subchapter, including through the use of innovation pilot programs.

“(2) Exemptive relief—The Secretary, pursuant to subsection (a), may provide exemptions from the requirements of this subchapter if the Secretary determines such exemptions are necessary to facilitate the testing and potential use of new technologies and other innovations.

changed “(3) Financial agency defined—In this subsection, the term financial agency means the Department of the Treasury, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office Rule of construction—This subsection may not be construed to require financial institutions to consider, evaluate, or implement innovative approaches to meet the Comptroller requirements of the Currency, and the Securities and Exchange Commission.”Bank Secrecy Act.

added “(4) Federal functional regulator defined—In this subsection, the term Federal functional regulator means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Securities and Exchange Commission, and the Commodity Futures Trading Commission.”

changed “5327. “5334. Innovation Labs

changed “(a) Establishment—There is established within the Department of the Treasury and each financial agency Federal functional regulator an Innovation Lab.

changed “(b) Director—The head of each Innovation Lab shall be a Director, to be appointed by the Secretary of the Treasury or the head of the applicable financial agency.Federal functional regulator, as applicable.

“(c) Duties—The duties of the Innovation Lab shall be—

changed “(1) to provide outreach to law enforcement agencies, financial institutions, and other persons (including vendors and technology companies) with respect to innovation and new technologies that may be used to comply with the requirements of the Bank Secrecy Act; andAct;

changed “(2) to support the implementation of responsible innovation and new technology, in a manner that complies with the requirements of the Bank Secrecy Act.Act;

added “(3) to explore opportunities for public-private partnerships; and

added “(4) to develop metrics of success.

“(d) FinCEN lab—The Innovation Lab established under subsection (a) within the Department of the Treasury shall be a lab within the Financial Crimes Enforcement Network.

added “(e) Federal functional regulator defined—In this subsection, the term Federal functional regulator means the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Securities and Exchange Commission, and the Commodity Futures Trading Commission.”

removed “(e) Financial agency defined—In this section, the term financial agency means the Department of the Treasury, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission.”

added “5335. Innovation Council

added “(a) Establishment—There is established the Innovation Council (hereinafter in this section referred to as the “Council”), which shall consist of each Director of an Innovation Lab established under section 5334 and the Director of the Financial Crimes Enforcement Network.

added “(b) Chair—The Director of the Innovation Lab of the Department of the Treasury shall serve as the Chair of the Council.

added “(c) Duty—The members of the Council shall coordinate on activities related to innovation under the Bank Secrecy Act, but may not supplant individual agency determinations on innovation.

added “(d) Meetings—The meetings of the Council—

added “(1) shall be at the call of the Chair, but in no case may the Council meet less than semi-annually;

added “(2) may include open and closed sessions, as determined necessary by the Council; and

added “(3) shall include participation by public and private entities and law enforcement agencies.

added “(e) Report—The Council shall issue an annual report, for each of the 7 years beginning on the date of enactment of this section, to the Secretary of the Treasury on the activities of the Council during the previous year, including the success of programs as measured by metrics of success developed pursuant to section 5334(c)(4), and any regulatory or legislative recommendations that the Council may have.”

added “(q) Parallel runs rulemaking

added “(1) In general—The Secretary of the Treasury, in consultation with the head of each agency to which the Secretary has delegated duties or powers under subsection (a), shall issue a rule to specify—

added “(A) with respect to technology and processes designed to facilitate compliance with the Bank Secrecy Act requirements, under what circumstances it is necessary for a financial institution to test new technology and processes alongside legacy technology and processes (“parallel runs”);

added “(B) if parallel runs are required, what standards must be met; and

added “(C) in what instances or under what circumstance and criteria a financial institution may replace or terminate such legacy technology and processes for any examinable technology or process without the replacement or termination being determined an examination deficiency.

added “(2) Standards—The standards described under paragraph (1)(B) may include—

added “(A) an emphasis on using innovative approaches, such as machine learning, rather than rules-based systems;

added “(B) risk-based back-testing of the regime to facilitate calibration of relevant systems;

added “(C) requirements for appropriate data privacy and security; and

added “(D) a requirement that the algorithms used by the regime be disclosed to the Financial Crimes Enforcement Network.

added “(3) Confidentiality of algorithms—If a financial institution or any director, officer, employee, or agent of any financial institution, voluntarily or pursuant to this subsection or any other authority, discloses the institution’s algorithms to a Government agency, such algorithms and any materials associated with the creation of such algorithms shall be considered confidential and not subject to public disclosure.”

removed Section 5318 of title 31, United States Code, as amended by section 301, is further amended by adding at the end the following:

removed “(q) Parallel runs rulemaking—The Secretary of the Treasury, in consultation with the Director of the Financial Crimes Enforcement Network and the head of each agency to which the Secretary has delegated duties or powers under subsection (a), shall issue a rule to specify—

removed “(1) with respect to technology and processes designed to facilitate compliance with the Bank Secrecy Act requirements, under what circumstances it is necessary for a financial institution to test new technology and processes alongside legacy technology and processes (“parallel runs”);

removed “(2) if parallel runs are required, what tests must be completed; and

removed “(3) in what instances or under what circumstances a financial institution may replace or terminate such legacy technology and processes for any examinable technology or process.”