Coordinating Oversight, Upgrading and Innovating Technology, and Examiner Reform Act of 2019

Floor Speech

I appreciate the majority moving H.R. 2514, the COUNTER Act of 2019, again, this week, as a standalone piece of legislation.

Both Republicans and Democrats agree, protecting the financial system from bad actors is a priority. We must give financial institutions the tools and resources they need to fight these bad actors.

According to a 2016 report by the U.S. Government Accountability Office, from January 2009 to December 2015, Federal agencies assessed roughly $5.1 billion in fines, forfeitures, and penalties for violations of the Bank Secrecy Act and anti-money laundering regulations, often referred to as BSA/AML.

A separate 2016 analysis of anti-money laundering enforcement found that penalties and fines for BSA violations significantly increased since the 2008 financial crisis. This report concluded that regulators had become more aggressive in pursuing BSA violations in the wake of the crisis.

However, this data is from 2016. We know that the current enforcement regime is outdated. Technology has outpaced the tools and resources available to Federal agencies to pursue these bad actors.

H.R. 2514 makes important changes to strengthen BSA and AML enforcement. The bill includes key aspects of the BSA/AML reform package from last Congress, including a provision that allows for tailored information-sharing by financial institutions with their foreign branches to better identify suspicious activity.

The bill also includes important updates to the reporting thresholds for Suspicious Activities Reports, or SARs.

H.R. 2514 reforms the SAR framework by requiring the Financial Crimes Enforcement Network to carry out a study examining whether the current SAR thresholds are adequate.

This study will provide the necessary data to alter the current SAR filing regime in the future. There is clearly a recognition on both sides of the aisle that the status quo is unacceptable.

The bill also encourages greater innovation, ensures efficiency, and requires treasury to play a prominent role in coordinating AML policy. These measures will help ensure that the most effective AML policies are being used to stop terrorists and bad actors.

I want to thank the gentleman from Missouri (Mr. Cleaver) and the gentleman from Ohio (Mr. Stivers) for all their hard work and effort on this bill.

Additionally, I want to thank the gentleman from Missouri (Mr. Luetkemeyer), the gentleman from Virginia (Mr. Riggleman), and the gentleman from Ohio (Mr. Gonzalez).

Mr. Speaker, their priorities have made the bill stronger, and more focused, which will enable the Treasury Department and other Federal agencies to carry out critical anti-money laundering processes.

I encourage my colleagues to support H.R. 2514, and I yield back the balance of my time.

Mr. DAVID SCOTT of Georgia.

This is a very critical piece of legislation for our financial services industry that will help close loopholes in existing law, and prevent criminals, prevent terrorists, and other bad state actors from escaping the United States Anti-Money Laundering and Counter-Threat Finance laws; it is badly needed, and that is why this is so important.

I am proud to stand up to support small businesses here today, while we are making important and necessary updates to these regimes.

I would especially like to congratulate my colleague from Missouri, Mr. Cleaver, the chairman of the House Committee on Financial Services, National Security, International Development, and Monetary Policy Subcommittee for introducing this bill.

A champion of small business himself, Mr. Cleaver has diligently engaged stakeholders, including government, industry, nongovernmental organizations, and Members from across the political spectrum on the text that we vote on here today. The result is this comprehensive bill with broad bipartisan support.

I urge my colleagues to join me in supporting this important piece of legislation.

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