[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7623 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 7623
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 28, 2022
Mr. Davidson introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
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.
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 Crimes Enforcement Network
Improvements Act''.
SEC. 2. BANK SECRECY ACT DEFINED.
In this Act, the term ``Bank Secrecy Act'' means--
(1) section 21 of the Federal Deposit Insurance Act (12
U.S.C. 1829b);
(2) chapter 2 of title I of Public Law 91-508 (12 U.S.C.
1951 et seq.); and
(3) subchapter II of chapter 53 of title 31, United States
Code.
SEC. 3. DIRECTOR OF THE FINANCIAL CRIMES ENFORCEMENT NETWORK.
(a) 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''.
(b) 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.
(a) 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.
(b) 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.
(c) 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.
(d) 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.
(e) 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--
(1) the activities of the Office of Audit and
Investigations for the Financial Crimes Enforcement Network
during the preceding fiscal year;
(2) the planned activities of that Office for the current
fiscal year;
(3) an overview of reports submitted to the Financial
Crimes Enforcement Network, including the number of reports
that--
(A) have been received by the Financial Crimes
Enforcement Network;
(B) have been reviewed by the Financial Crimes
Enforcement Network;
(C) have been requested by other governmental
agencies;
(D) led to a secondary investigation by the
Financial Crimes Enforcement Network; and
(E) resulted in a conviction, settlement, or
additional charges in other ongoing investigations; and
(4) 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.
(a) 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--
(1) make findings of good cause under subsection (b) or (d)
of section 553 of title 5, United States Code;
(2) exercise authority to certify, delay, or waive under
section 605 or 608 of title 5, United States Code; or
(3) make findings of good cause under section 808(2) of
title 5, United States Code.
(b) 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.
(a) 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.
(b) 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--
(1) controlling documents in force as of the enactment of
this Act;
(2) any controlling documents issued thereafter; and
(3) any changes to controlling documents described in
paragraphs (1) and (2) made thereafter, including any
revocations thereof.
(c) 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.
(a) 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.
(b) 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.
(c) Appearances Before Congress.--
(1) 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.
(2) Timing of appearances.--The Director shall appear--
(A) 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;
(B) 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
(C) 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).
(d) 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.
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