Sec. 111. Study and strategy on de-risking
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The Secretary of the Treasury, in consultation with appropriate private sector stakeholders, examiners, the Federal functional regulators (as defined under section 103), State bank supervisors, and other relevant stakeholders, shall undertake a formal review of— any adverse consequences of financial institutions de-risking entire categories of relationships, including charities, embassy accounts, money services businesses (as defined under section 1010.100(ff) of title 31, Code of Federal Regulations) and their agents, countries, international and domestic regions, and respondent banks; the reasons why financial institutions are engaging in de-risking; the association with and effects of de-risking on money laundering and financial crime actors and activities; the most appropriate ways to promote financial inclusion, particularly with respect to developing countries, while maintaining compliance with the Bank Secrecy Act, including an assessment of policy options to— more effectively tailor Federal actions and penalties to the size of foreign financial institutions and any capacity limitations of foreign governments; and reduce compliance costs that may lead to the adverse consequences described in paragraph (1); formal and informal feedback provided by examiners that may have led to de-risking; the relationship between resources dedicated to compliance and overall sophistication of compliance efforts at entities that may be experiencing de-risking versus those that have not experienced de-risking; and any best practices from the private sector that facilitate correspondent bank relationships.
The Secretary shall develop a strategy to reduce de-risking and adverse consequences related to de-risking. Not later than the end of the 1-year period beginning on the date of the enactment of this Act, the Secretary, in consultation with the Federal functional regulators, State bank supervisors, and other relevant stakeholders, shall issue a report to the Congress containing— all findings and determinations made in carrying out the study required under subsection (a); and the strategy developed pursuant to subsection (b).
In this section: The term de-risking means the wholesale closing of accounts or limiting of financial services for a category of customer due to unsubstantiated risk as it relates to compliance with the Bank Secrecy Act. The terms Bank Secrecy Act and financial institution have the meaning given those terms, respectively, under section 5312 off title 31, United States Code. The term State bank supervisor has the meaning given that term under section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ).
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Sec. 111
Study and strategy on de-risking
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