Sec. 10. Requirements for deposit accounts
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It is the sense of Congress that— appropriate Federal banking agencies have a duty to ensure that the depository institutions supervised by those agencies— are operating in a safe and sound manner; and have processes and procedures in place to identify fraudulent or illegal activity, whether activity occurs at a depository institution or through vendors or customers with which a depository institution has a relationship; the duty described in paragraph
(1)rests on laws and regulations, not on personal beliefs or political motivations; undue pressure and coercion designed to restrict access to financial services for lawful businesses have no place at any appropriate Federal banking agency; depository institutions should provide banking services in the communities in which those institutions serve while carrying out customer identification, risk-based customer diligence, and suspicious activity monitoring and reporting obligations under subchapter II of chapter 53 of title 31, United States Code (referred to in this section as the Bank Secrecy Act ), with respect to the customers of those institutions; despite the fact that individual customers of depository institutions within broader customer categories present varying degrees of risk, all depository institutions should take a risk-based approach in assessing individual customer relationships rather than decline to provide banking services to categories of customers without regard to the risks presented by an individual customer or the ability of the depository institution to manage the risk; depository institutions that properly manage customer relationships and risks are neither prohibited nor discouraged from providing services to customers that are operating in compliance with applicable Federal and State law; and each depository institution is responsible for determining whether providing services to any particular customer is consistent with the business plan, risk profile, and management capabilities of the depository institution. An appropriate Federal banking agency may not request or require a depository institution to terminate a specific deposit account or group of deposit accounts (including, but not limited to, any deposit account of any customer that is a State-sanctioned marijuana business or service provider), unless— there is a valid reason for that request or requirement, as described in paragraph (2); and reputational risk is not the dispositive factor for that request or requirement. To establish a valid reason for a request or requirement under paragraph (1), the appropriate Federal banking agency shall document that the agency— has reasonable cause to believe that the applicable depository institution or any institution-affiliated party has engaged, is engaged, or is about to engage in— an unsafe or unsound practice in conducting business; a violation of an applicable law, rule, regulation, order, condition imposed in writing, formal or informal enforcement action, or written agency formal or informal guidance, which shall include the priorities for anti-money laundering and countering the financing of terrorism policy established by the Secretary of the Treasury under section 5318(h)(4) of title 31, United States Code, or otherwise operating in a manner that is inconsistent with requirements of the Bank Secrecy Act; or any activity, conduct, or condition that could lead to, or has led to, the issuance of a matter requiring attention, a matter requiring immediate attention, a matter requiring board attention, a document of resolution, or a supervisory recommendation; or has another reason, determined to be valid in the discretion of the agency, for making that request or imposing that requirement. If an appropriate Federal banking agency has reasonable cause to believe that a specific customer or group of customers is, or is acting for or on behalf of, an entity that— poses a threat to national security; is involved in terrorist or other illicit financing; is an agent of the Government of Iran, North Korea, Syria, or any country listed on the State Sponsors of Terrorism list; is in, or is subject to the jurisdiction of, any country described in clause (iii); does business with any entity described in clause
(iii)or (iv), unless the appropriate Federal banking agency determines that the customer or group of customers has conducted due diligence to avoid doing business with any entity described in clause
(iii)or (iv); or is engaged in— any other illicit conduct directly or indirectly supporting a transnational criminal organization, drug trafficking organization, or money laundering organization; or any other criminal activity, such belief shall satisfy the conditions permitting action by the appropriate Federal banking agency under paragraph (1). If an appropriate Federal banking agency requests or requires a depository institution to terminate a specific deposit account or a group of deposit accounts under subsection (b), the agency shall— provide such request or requirement to the institution in writing; and accompany such request or requirement with the valid reason for the request or requirement, as described in subsection (b)(2). Except as provided in paragraph (2), or as otherwise prohibited from disclosure by law, if an appropriate Federal banking agency requests or requires a depository institution to terminate a deposit account under subsection (b), the depository institution shall notify in writing the specific customer or group of customers, the deposit account of which is being terminated, of the valid reason for that termination, as determined under subsection (b)(2). Neither a depository institution nor an appropriate Federal banking agency may provide the applicable customer or group of customers with the notice required under paragraph
(1)if— a Federal law enforcement agency or an element of the intelligence community advises the depository institution or the appropriate Federal banking agency that the notice— may interfere with a matter of national security; involves a matter described in subsection (b)(2)(B); or may interfere with a law enforcement investigation, criminal prosecution, or civil action brought by a government agency; or the depository institution or appropriate Federal banking agency knows or should know that, with respect to that customer or group of customers, a criminal prosecution or a law enforcement investigation is pending. An appropriate Federal banking agency and depository institution shall consult with, and follow the recommendations of, a Federal law enforcement agency or element of the intelligence community, as applicable, regarding whether the notice described in paragraph
(1)is required under that paragraph or prohibited under clause
(i)of this subparagraph. If an appropriate Federal banking agency requests or requires a depository institution to terminate a specific deposit account or a group of deposit accounts under subsection (b), neither the depository institution nor the appropriate Federal banking agency may notify the customer or group of customers of the justification for that action, if— that notice may— disclose the existence of a report on suspicious transactions filed under section 5318(g) of title 31, United States Code; or reveal confidential supervisory information or a concern of an appropriate Federal banking agency relating to an internal control of a depository institution; or the appropriate Federal banking agency has reasonable cause to believe that the depository institution or any institution-affiliated party has engaged, is engaged, or is about to engage in— a violation of an applicable law, rule, regulation, order, enforcement action, condition imposed in writing, or formal or informal written agency guidance; or an unsafe or unsound banking practice relating to that customer or group of customers. Each appropriate Federal banking agency shall— submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives an annual report stating— the aggregate number of specific deposit accounts that the agency requested that a depository institution terminate, or required a depository institution to terminate, during the previous year; and the legal authority on which the agency relied in making each request and requirement under subparagraph
(A)and the frequency on which the agency relied on each such authority; and before submitting each report required under paragraph (1), provide the Inspector General of the agency with an opportunity to conduct an evaluation or review of the activity described in that report, which the Inspector General shall submit to the committees described in paragraph
(1)concurrently with the submission of the report under paragraph (1). Not later than 2 years after the date of enactment of this Act, the appropriate Federal banking agencies, in consultation with applicable State bank supervisors, the Secretary of Commerce, and the Secretary of the Treasury, shall collectively promulgate rules or guidance to increase access to deposit accounts for businesses and consumers. The rules or guidance promulgated under paragraph
(1)shall include standards for— entering into and maintaining individual consumer relationships and relationships with categories of consumers; increasing access to deposit accounts— in the communities in which depository institutions serve, including rural communities and low- and moderate-income communities, which may be tailored to account for the business models of community banks and credit unions; and for Tribal communities, including by overcoming historical barriers to authenticating the identities of individuals and other challenges to obtaining deposit accounts; depository institutions to use innovative technologies to increase access to deposit accounts while maintaining appropriate third-party risk management and oversight; and features of a deposit account that are responsive to the needs of an unbanked business or consumer. The Federal Deposit Insurance Corporation shall conduct a biennial survey on the efforts of depository institutions to provide greater access to deposit accounts to small and medium-sized businesses that may have encountered difficulties in accessing or maintaining deposit accounts. In conducting each survey required under paragraph (1), the Federal Deposit Insurance Corporation shall consider what issues and barriers most frequently prevent small and medium-sized businesses from accessing or maintaining deposit accounts that are necessary to operate those businesses. Nothing in this section may be construed to limit or restrict the authority of an appropriate Federal banking agency to— identify or discuss potential supervisory findings with the staff or management of a depository institution, including findings involving financial condition, governance, consumer protection, internal controls, or unsafe or unsound conditions; or identify or discuss deficiencies in compliance or risks associated with the Bank Secrecy Act, including anti-money laundering or countering the financing of terrorism practices. In this section: The term appropriate Federal banking agency means— the appropriate Federal banking agency, as defined in 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 in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and an insured credit union. The term intelligence community has the meaning given the term in section 3 of the National Security Act of 1947 (50 U.S.C. 3003).
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