WASHINGTON D.C. — Today, by a vote of 404-7, the House passed bipartisan legislation introduced by Congressman French Hill (AR-02), H.R. 758, the Cooperate with Law Enforcement Agencies and Watch Act. This legislation provides protections for financial institutions against regulatory agency backlash due to cooperation with a federal or state law enforcement agency. Following passage of the bill, Congressman Hill issued the following statement:
“As a former community banker, I have dealt with the conflict of wanting to help law enforcement agencies but also needing to comply with the requirements set forth by a regulator. Additionally, I’ve recently heard from banks that are seeing an increase in the number of requests from law enforcement to cooperate with a criminal investigation, which can include money laundering, terrorism financing, and human trafficking.
“Allowing banks to keep accounts open that are involved in criminal investigations will help combat these horrific crimes. My commonsense bill supports our law enforcement by allowing financial institutions to comply with such a request to maintain a suspicious account without being penalized by regulators. I appreciate the support of my colleagues in the House to pass this important legislation and I look forward to working with the Senate to get it across the finish line.”
Background:
The full text of H.R. 758 can be found
HERE.
Under the Bank Secrecy Act (BSA) and anti-money laundering regulations, banks face strict rules for managing accounts so that they cannot facilitate money laundering, terrorism financing, drug running, and other illegal activities. Sometimes banks receive notices from law enforcement agencies, known as “keep open” letters, requesting them to keep an account open so that they can track payments and better monitor criminals.
The Cooperate with Law Enforcement Agencies and Watch Act would provide protections for financial institutions against regulatory agency backlash due to cooperation with a federal or state law enforcement agency. Similar legislation was introduced by Rep. Hill in the 115th Congress that was overwhelmingly passed in the House by a vote of 379-4.
