Sec. 6215. FINANCIAL SERVICES DE-RISKING
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## SEC. 6215 FINANCIAL SERVICES DE-RISKING ###
(a)Sense of Congress It is the sense of Congress that— ####
(1)providing vital humanitarian and development assistance and protecting the integrity of the international financial system are complementary goals; ####
(2)nonprofit organizations based in the United States with international activities often face difficulties with financial access, most commonly the inability to send funds internationally through transparent, regulated financial channels; ####
(3)without access to timely and predictable banking services, nonprofit organizations, including international development organizations, cannot carry out essential humanitarian activities critical to the survival of those in affected communities; ####
(4)similar access issues are a concern for other underserved individuals and entities such as those sending remittances from the United States to their families overseas and certain domestic and overseas jurisdictions that have experienced curtailed access to cross-border financial services due, in part, to de-risking; ####
(5)the financial exclusion caused by de-risking can ultimately drive money into less transparent, shadow channels through the carrying of cash or use of unlicensed or unregistered money service remitters, thus reducing transparency and traceability, which are critical for financial integrity, and can increase the risk of money falling into the wrong hands; ####
(6)effective measures are needed to stop the flow of illicit funds and promote the goals of anti-money laundering and countering the financing of terrorism and sanctions regimes; ####
(7)anti-money laundering, countering the financing of terrorism, and sanctions policies are needed that do not unduly hinder or delay the efforts of legitimate humanitarian organizations in providing assistance to— #####
(A)meet the needs of civilians facing a humanitarian crisis, including enabling governments and humanitarian organizations to provide them with timely access to food, health, and medical care, shelter, and clean drinking water; and #####
(B)prevent or alleviate human suffering, in keeping with requirements of international humanitarian law; ####
(8)anti-money laundering, countering the financing of terrorism, and sanctions policies must ensure that the policies do not unduly hinder or delay legitimate access to the international financial system for underserved individuals, entities, and geographic areas; ####
(9)policies that ensure that incidental, inadvertent benefits that may indirectly benefit a designated group in the course of delivering life-saving aid to civilian populations are not the primary focus of Federal Government enforcement efforts; ####
(10)policies that encourage financial inclusion, particularly of underserved populations, must remain a priority; and ####
(11)laws, regulations, policies, guidance, and other measures that ensure the integrity of the financial system through a risk-based approach should be prioritized. ###
(b)GAO De-risking Analysis ####
(1)In general Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall conduct an analysis and submit to Congress a report on financial services de-risking. ####
(2)Contents The analysis required under paragraph
(1)shall— #####
(A)rely substantially on information obtained through prior de-risking analyses conducted by the Comptroller General of the United States; #####
(B)consider the many drivers of de-risking as identified by the Financial Action Task Force, including profitability, reputational risk, lower risk appetites of banks, regulatory burdens and unclear expectations, and sanctions regimes; and #####
(C)identify options for financial institutions handling transactions or accounts for high-risk categories of clients and for minimizing the negative effects of anti-money laundering and countering the financing of terrorism requirements on such individuals and entities and on certain high-risk geographic jurisdictions, without compromising the effectiveness of Federal anti-money laundering and countering the financing of terrorism requirements. ###
(c)Review of De-risking ####
(1)Definition In this subsection, the term “de-risking” means actions taken by a financial institution to terminate, fail to initiate, or restrict a business relationship with a customer, or a category of customers, rather than manage the risk associated with that relationship consistent with risk-based supervisory or regulatory requirements, due to drivers such as profitability, reputational risk, lower risk appetites of banks, regulatory burdens or unclear expectations, and sanctions regimes. ####
(2)Review Upon completion of the analysis required under subsection (b), the Secretary, in consultation with the Federal functional regulators, State bank supervisors, State credit union supervisors, and appropriate public- and private-sector stakeholders shall— #####
(A)undertake a formal review of the financial institution reporting requirements, as in effect on the date of enactment of this Act, including the processes used to submit reports under the Bank Secrecy Act, regulations implementing the Bank Secrecy Act, examination standards related to the Bank Secrecy Act, and related guidance; and #####
(B)propose changes, as appropriate, to those requirements and examination standards described in paragraph
(1)to reduce any unnecessarily burdensome regulatory requirements and ensure that the information provided fulfills the purpose described in section 5311 of title 31, United States Code, as amended by this division. ####
(3)Contents The review required under paragraph
(2)shall— #####
(A)rely substantially on information obtained through the de-risking analyses conducted by the Comptroller General of the United States; and #####
(B)consider— ######
(i)any adverse consequence of financial institutions de-risking entire categories of relationships, including charities, embassy accounts, money services businesses, as defined in section 1010.100 of title 31, Code of Federal Regulations, or a successor regulation, agents of the financial institutions, countries, international and domestic regions, and respondent banks; ######
(ii)the reasons why financial institutions are engaging in de-risking, including the role of domestic and international regulations, standards, and examinations; ######
(iii)the association with and effects of de-risking on money laundering and financial crime actors and activities; ######
(iv)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— ######
(I)more effectively tailor Federal actions and penalties to the size of foreign financial institutions and any capacity limitations of foreign governments; and ######
(II)reduce compliance costs that may lead to the adverse consequences described in clause (i); ######
(v)formal and informal feedback provided by examiners that may have led to de-risking; ######
(vi)the relationship between resources dedicated to compliance and overall sophistication of compliance efforts at entities that may be experiencing de-risking, especially compared to those that have not experienced de-risking; ######
(vii)best practices from the private sector that facilitate correspondent banking relationships; and ######
(viii)other matters that the Secretary determines are appropriate. ####
(4)Strategy on de-risking Upon the completion of the review required under this subsection, the Secretary of the Treasury, in consultation with the Federal functional regulators, State bank supervisors, State credit union supervisors, and appropriate public- and private-sector stakeholders, shall develop a strategy to reduce de-risking and adverse consequences related to de-risking. ####
(5)Report Not later than 1 year after the completion of the analysis required under subsection (b), the Secretary shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report containing— #####
(A)all findings and determinations made in carrying out the review required under this subsection; and #####
(B)the strategy developed under paragraph (4).