Sec. 6212. PILOT PROGRAM ON SHARING OF INFORMATION RELATED TO SUSPICIOUS ACTIVITY REPORTS WITHIN A FINANCIAL GROUP

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

## SEC. 6212 PILOT PROGRAM ON SHARING OF INFORMATION RELATED TO SUSPICIOUS ACTIVITY REPORTS WITHIN A FINANCIAL GROUP ###

(a)Sharing With Foreign Branches and Affiliates Section 5318(g) of title 31, United States Code, as amended by sections 6202 and 6206 of this division, is amended by adding at the end the following: > > #### “(8) Pilot program on sharing with foreign branches, subsidiaries, and affiliates > > > ##### “(A) In general > > > ###### “(i) Issuance of rules > > Not later than 1 year after the date of enactment of this paragraph, the Secretary of the Treasury shall issue rules, in coordination with the Director of the Financial Crimes Enforcement Network, establishing the pilot program described in subparagraph (B). > > > ###### “(ii) Considerations > > In issuing the rules required under clause (i), the Secretary shall ensure that the sharing of information described in subparagraph (B)— > > > ###### “(I) > > is limited by the requirements of Federal and State law enforcement operations; > > > ###### “(II) > > takes into account potential concerns of the intelligence community; and > > > ###### “(III) > > is subject to appropriate standards and requirements regarding data security and the confidentiality of personally identifiable information. > > > ##### “(B) Pilot program described > > The pilot program described in this paragraph shall— > > > ###### “(i) > > permit a financial institution with a reporting obligation under this subsection to share information related to reports under this subsection, including that such a report has been filed, with the institution’s foreign branches, subsidiaries, and affiliates for the purpose of combating illicit finance risks, notwithstanding any other provision of law except subparagraph

(A)or (C); > > > ###### “(ii) > > permit the Secretary to consider, implement, and enforce provisions that would hold a foreign affiliate of a United States financial institution liable for the disclosure of information related to reports under this section; > > > ###### “(iii) > > terminate on the date that is 3 years after the date of enactment of this paragraph, except that the Secretary of the Treasury may extend the pilot program for not more than 2 years upon submitting to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that includes— > > > ###### “(I) > > a certification that the extension is in the national interest of the United States, with a detailed explanation of the reasons that the extension is in the national interest of the United States; > > > ###### “(II) > > after appropriate consultation by the Secretary with participants in the pilot program, an evaluation of the usefulness of the pilot program, including a detailed analysis of any illicit activity identified or prevented as a result of the program; and > > > ###### “(III) > > a detailed legislative proposal providing for a long-term extension of activities under the pilot program, measures to ensure data security, and confidentiality of personally identifiable information, including expected budgetary resources for those activities, if the Secretary of the Treasury determines that a long-term extension is appropriate. > > > ##### “(C) Prohibition involving certain jurisdictions > > > ###### “(i) In general > > In issuing the rules required under subparagraph (A), the Secretary of the Treasury may not permit a financial institution to share information on reports under this subsection with a foreign branch, subsidiary, or affiliate located in— > > > ###### “(I) > > the People’s Republic of China; > > > ###### “(II) > > the Russian Federation; or > > > ###### “(III) > > a jurisdiction that— > > > ###### “(aa) > > is a state sponsor of terrorism; > > > ###### “(bb) > > is subject to sanctions imposed by the Federal Government; or > > > ###### “(cc) > > the Secretary has determined cannot reasonably protect the security and confidentiality of such information. > > > ###### “(ii) Exceptions > > The Secretary is authorized to make exceptions, on a case-by-case basis, for a financial institution located in a jurisdiction listed in subclause

(I)or

(II)of clause (i), if the Secretary notifies the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives that such an exception is in the national security interest of the United States. > > > ##### “(D) Implementation updates > > Not later than 360 days after the date on which rules are issued under subparagraph (A), and annually thereafter for 3 years, the Secretary of the Treasury, or the designee of the Secretary, shall brief the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on— > > > ###### “(i) > > the degree of any information sharing permitted under the pilot program and a description of criteria used by the Secretary to evaluate the appropriateness of the information sharing; > > > ###### “(ii) > > the effectiveness of the pilot program in identifying or preventing the violation of a United States law or regulation and mechanisms that may improve that effectiveness; and > > > ###### “(iii) > > any recommendations to amend the design of the pilot program. > > > #### “(9) Treatment of foreign jurisdiction-originated reports > > Information related to a report received by a financial institution from a foreign affiliate with respect to a suspicious transaction relevant to a possible violation of law or regulation shall be subject to the same confidentiality requirements provided under this subsection for a report of a suspicious transaction described in paragraph (1). > > > #### “(10) No offshoring compliance > > No financial institution may establish or maintain any operation located outside of the United States the primary purpose of which is to ensure compliance with the Bank Secrecy Act as a result of the sharing granted under this subsection. > > > #### “(11) Definitions > > In this subsection: > > > ##### “(A) Affiliate > > The term ‘affiliate’ means an entity that controls, is controlled by, or is under common control with another entity. > > > ##### “(B) Bank secrecy act; state bank supervisor; state credit union supervisor > > The terms ‘Bank Secrecy Act’, ‘State bank supervisor’, and ‘State credit union supervisor’ have the meanings given the terms in section 6003 of the Anti-Money Laundering Act of 2020.” > . ###

(b)Notification Prohibitions Section 5318(g)(2)(A) of title 31, United States Code, is amended— ####

(1)in clause (i), by inserting “or otherwise reveal any information that would reveal that the transaction has been reported,” after “transaction has been reported”; and ####

(2)in clause (ii), by inserting “or otherwise reveal any information that would reveal that the transaction has been reported,” after “transaction has been reported,”.