Sec. 702. Requirements for filing suspicious activity reports
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/bill/117/s/4591/is/section-702A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 5318(g) of title 31, United States Code, is amended— by redesignating paragraph
(11)as paragraph (12); and by inserting after paragraph
(10)the following: In this paragraph: The term cannabis has the meaning given the term in section 3 of the Cannabis Administration and Opportunity Act. The terms cannabis-related legitimate business and cannabis-related service provider have the meanings given the terms in section 3 of the Small Business Act ( 15 U.S.C. 632 ). The term financial service — means— a financial product or service, as defined in section 1002 of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5481 ), regardless if the customer receiving the product or service is a consumer or commercial entity; and a financial product or service, or any combination of products and services, permitted to be provided by— a national bank or a financial subsidiary pursuant to the authority provided under the paragraph designated as the Seventh of section 5136 of the Revised Statutes ( 12 U.S.C. 24 ) or section 5136A of the Revised Statutes ( 12 U.S.C. 24a ); or a Federal credit union, pursuant to the authority provided under the Federal Credit Union Act ( 12 U.S.C. 1751 et seq. ); and includes— the business of insurance; whether performed directly or indirectly, the authorizing, processing, clearing, settling, billing, transferring for deposit, transmitting, delivering, instructing to be delivered, reconciling, collecting, or otherwise effectuating or facilitating of payments or funds, if such payments or funds are made or transferred by any means, including by the use of credit cards, debit cards, other payment cards, or other access devices, accounts, original or substitute checks, or electronic funds transfers; acting as a money transmitting business that directly or indirectly makes use of a depository institution in connection with effectuating or facilitating a payment for a cannabis-related legitimate business or cannabis-related service provider in compliance with section 5330 of title 31, United States Code, and any applicable State law; and acting as an armored car service for processing and depositing with a depository institution or a Federal reserve bank with respect to any monetary instruments, as defined in section 1956(c) of title 18, United States Code. With respect to a financial institution or any director, officer, employee, or agent of a financial institution that reports a suspicious transaction pursuant to this subsection, if the reason for the report relates to a cannabis-related legitimate business or cannabis-related service provider, the report shall comply with appropriate guidance issued by the Financial Crimes Enforcement Network. Not later than the end of the 180-day period beginning on the date of enactment of this paragraph, the Secretary shall update the February 14, 2014, guidance titled BSA Expectations Regarding Marijuana-Related Businesses (FIN–2014–G001) or issue new regulations to ensure that the guidance— is consistent with the purpose and intent of the Cannabis Administration and Opportunity Act; addresses the deposit and movement of cash held by cannabis-legitimate business or cannabis-related service provider as of the date of enactment of this paragraph; and does not significantly inhibit the provision of financial services to a cannabis-related legitimate business or cannabis-related service provider in the United States. Any guidance or regulation required under this section shall ensure that a financial institution and any director, employee, officer, or agent of a financial institution continues to report suspicious activities related to cannabis-related legitimate businesses and preserve the ability of the Financial Crimes Enforcement Network and law enforcement to prevent and combat illicit activity. The Financial Crimes Enforcement Network shall promulgate regulations or issue guidance as necessary on financial institutions that provide financial services to cannabis-related legitimate businesses, cannabis-related service providers, or employees, owners, or operators, regarding obligations related to anti-money laundering and under this subchapter, including addressing the filing of suspicious activity reports consistent with this section, customer due diligence requirements, indirect relationships with cannabis-related legitimate businesses, and verification and documentation requirements for financial institutions intending to handle funds from cannabis-related legitimate businesses to ensure such funds are clearly linked with law, other lawful activity, and regulations. The Secretary shall ensure that such regulations are consistent with the purpose and intent of the Cannabis Administration and Opportunity Act while ensuring the Financial Crimes Enforcement Network has sufficient resources to prevent and combat illicit activity. .
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Sec. 702
Requirements for filing suspicious activity reports
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