Section 1 Short title
This Act may be cited as the “Financial Crimes Enforcement Network Improvements Act”.
Financial Crimes Enforcement Network Improvements Act
A BILL
To increase the effectiveness and accountability of the Financial Crimes Enforcement Network of the Department of the Treasury and to protect the freedom and privacy of Americans, and for other purposes.
Sec. 2 Bank Secrecy Act defined
In this Act, the term “Bank Secrecy Act” means—
section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b);
chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.); and
subchapter II of chapter 53 of title 31, United States Code.
Sec. 3 Director of the Financial Crimes Enforcement Network
Appointment of Director— Section 310(b)(1) of title 31, United States Code, is amended by striking “who shall be appointed by the Secretary of the Treasury” and inserting “who shall be appointed by the President, by and with the advice and consent of the Senate”.
Pay of Director— Section 310(b)(1) of title 31, United States Code, is amended by adding at the end the following: “The Director shall be compensated at the rate provided under level IV of the Executive Schedule under section 5315 of title 5”.
Sec. 4 Inspector general functions
Establishment of office— There is established within the Office of the Inspector General of the Department of the Treasury an Office of Audit and Investigations for the Financial Crimes Enforcement Network.
Deputy Inspector General— The Inspector General of the Department of the Treasury shall designate a member of the Senior Executive Service to head the Office of Audit and Investigations for the Financial Crimes Enforcement Network. Such member shall be known as the Deputy Inspector General for the Financial Crimes Enforcement Network.
Supervision, authority, and resources— The Inspector General of the Department of the Treasury shall supervise the Deputy Inspector General for the Financial Crimes Enforcement Network and shall ensure that the Deputy Inspector General has the authority and resources necessary and appropriate to perform inspector general functions with respect to the Financial Crimes Enforcement Network.
Priorities— The Inspector General of the Department of the Treasury shall ensure that the Office of Audit and Investigations for the Financial Crimes Enforcement Network gives substantial priority in conducting audits and investigations to protection of the civil liberties and privacy of American citizens by the Financial Crimes Enforcement Network, including in the implementation of the Bank Secrecy Act and subsections (b), (c), and (d) of section 310 of title 31, United States Code, by the Financial Crimes Enforcement Network.
Annual report— The Inspector General of the Department 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 on or about October 31 of each calendar year on—
the activities of the Office of Audit and Investigations for the Financial Crimes Enforcement Network during the preceding fiscal year;
the planned activities of that Office for the current fiscal year;
an overview of reports submitted to the Financial Crimes Enforcement Network, including the number of reports that—
have been received by the Financial Crimes Enforcement Network;
have been reviewed by the Financial Crimes Enforcement Network;
have been requested by other governmental agencies;
led to a secondary investigation by the Financial Crimes Enforcement Network; and
resulted in a conviction, settlement, or additional charges in other ongoing investigations; and
such other information relating to that Office as the Inspector General determines appropriate.
Sec. 5 Civil Liberties Protection Officer for the Financial Crimes Enforcement Network
Section 301 of title 31, United States Code, is amended by adding at the end the following:
“(h) Civil Liberties Protection Officer for the Financial Crimes Enforcement Network
“(1) In general—Within the Office of the Secretary of the Treasury, there shall be a Civil Liberties Protection Officer for the Financial Crimes Enforcement Network who shall—
“(A) be designated by the Secretary of the Treasury from among members of the Senior Executive Service; and
“(B) report directly to and be supervised directly by the Secretary of the Treasury or, if so assigned by the Secretary, the Deputy Secretary of the Treasury.
“(2) Duties—The Civil Liberties Protection Officer for the Financial Crimes Enforcement Network shall—
“(A) ensure that protection of civil liberties and privacy is appropriately incorporated in the activities conducted by the Financial Crimes Enforcement Network;
“(B) oversee compliance by the Financial Crimes Enforcement Network with requirements under the Constitution and all laws, regulations, and implementing guidelines relating to civil liberties and privacy;
“(C) review and assess complaints and other information indicating possible abuses of civil liberties and privacy in the administration of the programs and operations of the Financial Crimes Enforcement Network and, as appropriate, refer such complaints or information for investigation to the Office of Audit and Investigations for the Financial Crimes Enforcement Network;
“(D) ensure that the use by the Financial Crimes Enforcement Network of technologies sustains, and does not erode, privacy protections relating to the use, collection, and disclosure of personal information;
“(E) ensure that personal information contained in a system of records subject to section 552a of title 5 (commonly referred to as the “Privacy Act”) is handled by the Financial Crimes Enforcement Network in compliance with that section;
“(F) conduct privacy impact assessments of the Financial Crimes Enforcement Network when appropriate, directed, or required by law; and
“(G) perform such other duties relating directly to protection of civil liberties and privacy by the Financial Crimes Enforcement Network as may be prescribed by the Secretary of the Treasury.
“(3) Coordination—The Civil Liberties Protection Officer for the Financial Crimes Enforcement Network shall keep the following individuals appropriately informed of the Officer’s activities:
“(A) The Department of the Treasury’s Chief Privacy Officer (as described under section 522 of division H of the Consolidated Appropriations Act, 2005 (42 U.S.C. 2000ee–2)).
“(B) The Department of the Treasury’s Privacy and Civil Liberties Officer (as designated pursuant to section 1062 of the National Security Intelligence Reform Act of 2004 (42 U.S.C. 2000ee–1)).”
Sec. 6 Transparency in rulemaking and secretarial exceptions
Reservation to the Secretary of authority To make exceptions— No officer or employee of the Department of the Treasury, except the Secretary of the Treasury or the person performing the duties of the Secretary of the Treasury when that office is vacant or the Secretary is unable to perform the duties of that office, shall, with respect to a proposed or final rule relating to activities of the Financial Crimes Enforcement Network, including implementation of the Bank Secrecy Act—
make findings of good cause under subsection (b) or (d) of section 553 of title 5, United States Code;
exercise authority to certify, delay, or waive under section 605 or 608 of title 5, United States Code; or
make findings of good cause under section 808(2) of title 5, United States Code.
Covered agency status for regulatory flexibility— Section 310 of title 31, United States Code, is amended by adding at the end thereof the following new subsection:
“(m) The Financial Crimes Enforcement Network shall be a “covered agency” for purposes of section 609(d) of title 5.”
Sec. 7 Transparency with controlling documents
Definition of controlling document— As used in this section, the term “controlling document” refers to any record (as defined in section 3301 of title 44, United States Code) issued by or under the authority of the Secretary, Deputy Secretary, Under Secretary for Enforcement, or any other officer or employee of the Department of the Treasury, that delegates authority to the Financial Crimes Enforcement Network or its Director, or contains direction binding upon the Financial Crimes Enforcement Network or its Director, in the implementation of section 310 of title 31, United States Code, or the Bank Secrecy Act, including delegations, prescriptions, regulations, protocols, priorities, policies, standards, guidelines, and requirements issued in accordance with subsections (b)(2)(C), (b)(2)(E), (b)(2)(I), (b)(2)(J), (b)(2)(O), (c), and (i)(2)(C)(ii) of section 310 of such title 31 and subsections (b)(1), (b)(2), (b)(4), (c)(2)(A), (c)(2)(C), (c)(3), (c)(5), (d)(3), and (h)(3)(C)(i)(I)(bb) of section 5336 of such title 31.
Disclosure to Congress— The Secretary of the Treasury shall promptly provide to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate—
controlling documents in force as of the enactment of this Act;
any controlling documents issued thereafter; and
any changes to controlling documents described in paragraphs (1) and (2) made thereafter, including any revocations thereof.
Disclosure to the public— The Secretary of the Treasury shall make available promptly to the public the controlling documents and changes that the Secretary is required to provide to the committees listed in subsection (b), excluding such reasonably segregable portions of controlling documents or changes as would fall within an exemption in section 552(b) of title 5, United States Code.
Sec. 8 Information for constitutional functions of Congress
Keeping Congress informed— The Secretary of the Treasury shall keep the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate fully and currently informed of the activities of the Financial Crimes Enforcement Network, including any significant anticipated activity of such Network.
Report of unlawful activity and corrective action— The Secretary of the Treasury shall report promptly to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs any unlawful activity of the Financial Crimes Enforcement Network and any corrective action taken or planned to address that activity and prevent such activity in the future.
Appearances before Congress—
In general— The Director of the Financial Crimes Enforcement Network shall appear before the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs at semiannual hearings, as specified in paragraph (2), regarding the activities of the Financial Crimes Enforcement Network, including protection of the civil liberties and privacy of, and minimization of burdens on, American citizens.
Timing of appearances— The Director shall appear—
before the Committee on Financial Services of the House of Representatives on or about February 20 of even numbered calendar years and on or about July 20 of odd numbered calendar years;
before the Committee on Banking, Housing, and Urban Affairs of the Senate on or about July 20 of even numbered calendar years and on or about February 20 of odd numbered calendar years; and
before either Committee referred to in subparagraph (A) or (B), upon request, following the scheduled appearance of the Director before the other Committee under subparagraph (A) or (B).
Requirements in addition— The requirements of this section are in addition to the requirements of section 5336(c)(11) of title 31, United States Code.