Sec. 107. Corporate governance and the legal responsibilities
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Chapter 53 of title 31, United States Code, is amended— by inserting after section 5322, the following: The Secretary of the Treasury, in consultation with the appropriate Federal banking agencies, the Securities and Exchange Commission, and the Commodities Futures Trading Commission, shall issue regulations requiring each financial institution that is subject to an anti-money laundering program requirement under chapter X of title 31, Code of Federal Regulations, to ensure compliance with the anti-money laundering program requirements described under section 5318(h) by establishing written policies, procedures, and risk management standards for ensuring compliance with the requirements of this subtitle that— require the head of compliance for each business line of such institution to make regular reports directly to the board of directors and the chief executive officer of such institution on the business line’s compliance activities; require the board to certify each report received pursuant to paragraph (1); ensure adequate staffing and funding for entities within the institution responsible for compliance with the requirements of this subtitle; and periodically test the effectiveness of the institution’s programs for compliance with the requirements of this subtitle.
With respect to any violation of this subtitle by each financial institution that is subject to an anti-money laundering program requirement under chapter X of title 31, Code of Federal Regulations, any officer or other employee who was in a position that would have enabled such officer or employee to materially affect compliance with the requirements of this subtitle shall also be in violation of this subtitle, if such officer or other employee knew, or should have known, that such violation was being committed and did not take meaningful steps to stop such violation.
Each financial institution that is subject to an anti-money laundering program requirement under chapter X of title 31, Code of Federal Regulations, shall, in each employment agreement entered into by such institution, include a provision that gives the institution the right to require the repayment of any bonus or other compensation paid to the employee in any case where such employee was violating a provision of this subchapter and knew, or should have known, of such violation.
For purposes of this section, the term appropriate Federal banking agency has the meaning given such term under section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ). ; and in the table of contents for such chapter, by inserting after the item relating to section 5322 the following new item: 5322A. Corporate governance and the legal responsibility of officers and employees. . The amendments made by subsection
(a)shall apply to a financial institution (as such term is defined under section 5312 of title 31, United States Code) after the end of the 6-month period beginning on the date of the enactment of this Act.
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Sec. 107
Corporate governance and the legal responsibilities
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