Sec. 2. Requirements for deposit account termination requests and orders
437 words·~2 min read·
/bill/113/hr/5758/ih/section-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
An appropriate Federal banking agency may not suggest, request, or order a depository institution to terminate a specific customer account or to otherwise restrict or discourage a depository institution from entering into or maintaining a banking relationship with a specific customer unless— the agency has a material reason for such suggestion, request, or order; and such reason is not based solely on reputation risk. If an appropriate Federal banking agency believes a specific customer poses a threat to national security, including any belief that such customer is involved in terrorist financing, such belief shall satisfy the materiality requirement under paragraph (1)(A).
Not later than the end of the 60-day period beginning on the date of the enactment of this Act, the appropriate Federal banking agencies shall, jointly, issue regulations defining the term reputation risk for purposes of this section. If an appropriate Federal banking agency suggests, requests, or orders a depository institution to terminate a specific customer account, the agency shall— provide such suggestion, request, or order to the institution in writing; and accompany such suggestion, request, or order with a justification for why such termination is needed, including any specific laws or regulations the agency believes are being violated by the customer, if any.
A justification described under paragraph (1)(B) may not be based solely on the reputation risk to the depository institution. Nothing in this section shall be construed as requiring a depository institution or an appropriate Federal banking agency to inform a customer of the justification for the customer’s account termination described under subsection (b). If an appropriate Federal banking agency suggests, requests, or orders a depository institution to terminate a specific customer account based on a belief that the customer poses a threat to national security, neither the depository institution nor the appropriate Federal banking agency may inform the customer of the justification for the customer’s account termination.
Each appropriate Federal banking agency shall issue an annual report to the Congress stating— the aggregate number of specific customer accounts that the agency suggested, requested, or ordered a depository institution to terminate during the previous year; and the legal authority under which the agency made such suggestions, requests, and orders. For purposes of this section: The term appropriate Federal banking agency means— the appropriate Federal banking agency, as defined under section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ); and the National Credit Union Administration, in the case of an insured credit union.
The term depository institution means— a depository institution, as defined under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and an insured credit union.
Connectionstraces to 1
Traces to 1 document
U.S. Code
Citation graph
cites case law
Sec. 2
Requirements for deposit account termination requests and orders
Cites 1Cited by 0 across 0 sources