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Code · BILL · 116th Congress · S. 1005 (Introduced in Senate) — To stop financial institution crime, require certain officers of companies to certify that they have conducted due di... · Sec. 3

Sec. 3. Certification

813 words·~4 min read·/bill/116/s/1005/is/section-3

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In this section— the term appropriate entity means— the Special Inspector General for the Troubled Asset Relief Program or any successor entity; or if the Program or entity described in subparagraph
(A)does not exist, the Attorney General; the terms bank holding company and savings and loan holding company have the meanings given those terms in section 10(a) of the Home Owners' Loan Act ( 12 U.S.C. 1467a(a) ); and the term financial institution has the meaning given the term in section 5312(a) of title 31, United States Code. The chief executive officer, chief financial officer, chief operating officer, and chief compliance officer of a financial institution, a bank holding company, or a savings and loan holding company with assets greater than $10,000,000,000, shall submit to the appropriate entity, subject to section 1001 of title 18, United States Code, an annual certification that the officers have conducted due diligence and found that there is no criminal conduct or civil fraud in the financial institution, bank holding company, or savings and loan holding company, as applicable, that has not been disclosed in full to the Department of Justice or the applicable regulator. If a disclosure to the Department of Justice or the applicable regulator has been made, the certification shall explicitly describe all of the details of the conduct that has been disclosed, including but not limited to, the date of disclosure, and the person to whom the disclosure was made. Not later than 1 year after the date of enactment of this Act, the appropriate entity shall promulgate regulations on the process under which certifications made under subsection
(b)shall be submitted. The appropriate entity shall, on the website of the appropriate entity— within 90 calendar days following the promulgation of regulations under subsection (c), and on an annual basis thereafter, publish a list of all financial institutions, bank holding companies, and savings and loan holding companies subject to the upcoming year’s annual certification requirement under subsection (b); and maintain on the homepage a direct link for the public to report alleged misconduct pertaining to any entity listed under paragraph (1). Subsection
(b)shall take effect on the effective date of the regulations promulgated under subsection (c). When the Secretary of the Treasury believes a person has violated, is violating, or will violate this section or a regulation prescribed under this section, the Secretary may bring a civil action in the appropriate district court of the United States or appropriate United States court of a territory or possession of the United States to enjoin the violation or to enforce compliance with the section or regulation. An injunction or temporary restraining order shall be issued without bond. A chief executive officer, chief financial officer, chief operating officer, and chief compliance officer of a financial institution, a bank holding company, or a savings and loan holding company, willfully violating this section or a regulation prescribed under this section is liable to the United States Government for a civil penalty of not more than $25,000. The Secretary of the Treasury may impose a civil money penalty of not more than $500 on any chief executive officer, chief financial officer, chief operating officer, and chief compliance officer of a financial institution, a bank holding company, or a savings and loan holding company who negligently violates any provision of this section or any regulation prescribed under this section. If any chief executive officer, chief financial officer, chief operating officer, and chief compliance officer of a financial institution, a bank holding company, or a savings and loan holding company engages in a pattern of negligent violations of any provision of this section or any regulation prescribed under this section, the Secretary of the Treasury may, in addition to any penalty imposed under clause
(i)with respect to any such violation, impose a civil money penalty of not more than $50,000 on the chief executive officer, chief financial officer, chief operating officer, and chief compliance officer of a financial institution, a bank holding company, or a savings and loan holding company. A chief executive officer, chief financial officer, chief operating officer, and chief compliance officer of a financial institution, a bank holding company, or a savings and loan holding company willfully violating this section or a regulation prescribed under this section shall be fined not more than $250,000, or imprisoned for not more than 5 years, or both. A chief executive officer, chief financial officer, chief operating officer, and chief compliance officer of a financial institution, a bank holding company, or a savings and loan holding company willfully violating this section or a regulation prescribed under this section while violating another law of the United States or as part of a pattern of any illegal activity involving more than $100,000 in a 12-month period, shall be fined not more than $500,000, imprisoned for not more than 10 years, or both.
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Sec. 3
Certification
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