What This Bill Does
This bill makes changes to the Bank Secrecy Act and the Right to Financial Privacy Act. The bill limits how government authorities can access customer financial records at banks and other financial institutions.
Who It Affects
Financial institutions (banks and similar businesses)
Government authorities (agencies seeking financial records)
Bank customers whose financial records are involved
Key Provisions
Government authorities can only access a customer's financial records if they obtain a search warrant (a court order) that specifically describes which financial records they need. The financial records must be reasonably described in the search warrant. (Sec. 2(a))
Financial institutions must keep transaction records that include information connected to the financial records of particular customers. (Sec. 2(b))
The bill removes several earlier rules that allowed government authorities to access financial records through other methods besides search warrants. (Sec. 2(a) and 2(b))
What Changes
If this becomes law, government authorities would no longer be able to access customer financial records using several previous methods. Instead, they would need a search warrant that specifically describes the financial records they want. Several sections of existing law that outlined alternative ways to obtain financial records would be deleted.
Important Definitions
A "nonfinancial trade or business" means any business that is not a financial institution. (Sec. 2(b))
Effective Date
Not specified in bill text
I
118TH CONGRESS
1ST SESSION H. R. 1220
To make reforms to the Bank Secrecy Act, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 27, 2023
Mr. ROSE (for himself and Mr. SESSIONS) introduced the following bill; which
was referred to the Committee on Financial Services
A BILL
To make reforms to the Bank Secrecy Act, and for other
purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Bank Privacy Reform
4
Act’’.
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SEC. 2. BANK SECRECY ACT REFORMS.
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(a) RIGHT TO FINANCIAL PRIVACY ACT OF 1978.—
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The Right to Financial Privacy Act of 1978 (12 U.S.C.
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3401 et seq.) is amended—
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(1) by amending section 1102 to read as fol-
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lows:
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•HR 1220 IH
‘‘SEC. 1102. CONFIDENTIALITY OF RECORDS—GOVERN-
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MENT AUTHORITIES.
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‘‘Except as provided by subsection (c) or (d) of sec-
3
tion 1103 or section 1113, no Government authority may
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have access to or obtain copies of, or the information con-
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tained in the financial records of any customer from a fi-
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nancial institution unless the financial records are reason-
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ably described and such financial records are disclosed in
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response to a search warrant which meets the require-
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ments of section 1106.’’;
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(2) by striking sections 1104, 1105, 1107,
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1108, and 1114;
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(3) in section 1109(a), by striking ‘‘section
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1104(c), 1105(2), 1106(c), 1107(2), 1108(4),’’ and
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inserting ‘‘section 1106(c)’’; and
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(4) in section 1113, by striking subsections (c)
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through (r).
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(b) TITLE 31.—Chapter 53 of title 31, United States
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Code, is amended—
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(1) by amending section 5311 to read as fol-
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lows:
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‘‘§ 5311. Declaration of purpose
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‘‘It is the purpose of this subchapter to require finan-
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cial institutions to retain transaction records that include
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information identified with or identifiable as being derived
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from the financial records of particular customers.’’;
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(2) in section 5312(a)—
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(A) in paragraph (3)—
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(i) in subparagraph (B), by adding
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‘‘and’’ at the end;
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(ii) by striking subparagraph (C); and
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(iii) by redesignating subparagraph
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(D) as subparagraph (C); and
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(B) by amending paragraph (4) to read as
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follows:
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‘‘(4) ‘nonfinancial trade or business’ means any
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entity engaged in trade or business other than a fi-
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nancial institution.’’;
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(3) by striking sections 5313, 5314, 5315,
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5316, 5317, 5318A, 5324, 5326, 5331, 5332, and
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5336;
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(4) in section 5318—
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(A) in subsection (a)—
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(i) by striking ‘‘(except under section
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5315 of this title and regulations pre-
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scribed under section 5315)’’;
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(ii) by striking paragraph (2); and
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(iii) by redesignating paragraphs (3)
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through (7) as paragraphs (2) through (6),
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respectively; and
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(B) in subsection (k)—
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(i) in paragraph (1)(C), by striking
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‘‘has the same meaning as in section
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5318A(e)(1)(B)’’ and inserting ‘‘means an
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account established to receive deposits
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from, make payments on behalf of a for-
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eign financial institution, or handle other
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financial transactions related to such insti-
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tution’’; and
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(ii) in paragraph (3)(A)(i)—
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(I) in subclause (II), by adding
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‘‘or’’ at the end;
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(II) in subclause (III), by strik-
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ing ‘‘; or’’ and inserting a period; and
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(III) by striking subclause (IV);
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(5) in section 5321—
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(A) in subsection (a)—
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(i) in paragraph (1), by striking ‘‘(ex-
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cept sections 5314, 5315, and 5336 of this
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title or a regulation prescribed under sec-
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tions 5314, 5315, and 5336)’’;
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(ii) by striking paragraphs (2), (3),
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(4), and (5);
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(iii) in paragraph (6), by striking
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‘‘(except section 5336)’’ each place such
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term appears;
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(iv) in paragraph (7), by striking ‘‘or
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any special measures imposed under sec-
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tion 5318A’’; and
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(v) by redesignating paragraphs (6)
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and (7) as paragraphs (2) and (3), respec-
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tively;
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(B) by striking subsection (c); and
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(C)
by
redesignating
subsections
(d)
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through (g) as subsection (c) through (f), re-
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spectively;
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(6) in section 5322—
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(A) by striking ‘‘(except section 5315,
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5324, or 5336 of this title or a regulation pre-
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scribed under section 5315, 5324, or 5336)’’
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each place such term appears; and
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(B) in subsection (d)—
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(i) by striking ‘‘, or any special meas-
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ures imposed under section 5318A,’’; and
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(ii) by striking ‘‘or section 5318A’’;
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(7) in section 5325(a), by inserting after
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‘‘$3,000’’ the following: ‘‘(as such amount is annu-
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ally adjusted by the Secretary to reflect the percent-
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age change in the Consumer Price Index for All
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Urban Consumers published by the Bureau of Labor
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Statistics of the Department of Labor)’’;
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(8) in section 5330(d)(1)—
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(A) in subparagraph (A), by adding ‘‘and’’
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at the end;
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(B) by striking subparagraph (B); and
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(C) by redesignating subparagraph (C) as
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subparagraph (B);
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(9) in section 5335—
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(A) by striking subsection (c); and
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(B) by redesignating subsections (d) and
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(e) as subsections (c) and (d), respectively;
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(10) by striking subchapter III; and
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(11) in the table of contents in chapter 53, by
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striking the items relating to—
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(A) sections 5313, 5314, 5315, 5316,
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5317, 5318A, 5324, 5326, 5331, 5332, and
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5336; and
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(B) subchapter III.
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Æ
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