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H.R. 2219 (115th): End Banking for Human Traffickers Act of 2018


The text of the bill below is as of Feb 23, 2018 (Reported by House Committee).

Summary of this bill

Update: Shortly after this bill passed the House by 405–2, GovTrack Insider wrote in our summary that we could not find any public statements of opposition to the legislation. After publication, we were subsequently informed of opposition by an advocacy group. The article has been updated to reflect their statement.

There aren’t many bills co-sponsored by both Marco Rubio and Elizabeth Warren, but one is the End Banking for Human Traffickers Act, which recently passed the House.

Context

Though great strides have already been made to combat it, the human trafficking industry still generates $150 billion in illegal profits per year, according to the FACT Coalition. That makes ...


IB

Union Calendar No. 439

115th CONGRESS

2d Session

H. R. 2219

[Report No. 115–569, Parts I and II]

IN THE HOUSE OF REPRESENTATIVES

April 27, 2017

(for himself, Mr. Keating, Mrs. Carolyn B. Maloney of New York, and Mrs. Love) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

February 20, 2018

Reported from the Committee on Financial Services with amendments

Omit the part struck through and insert the part printed in italic

February 23, 2018

Additional sponsors: Mr. Meehan, Mr. Fitzpatrick, Ms. Sinema, Mr. Delaney, Mr. Meeks, Mrs. Beatty, Mr. Lynch, Mr. Messer, Mr. Sires, Mr. Hultgren, Mr. Poe of Texas, and Mr. Gottheimer

February 23, 2018

Reported from the Committee on Foreign Affairs with an amendment; committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Strike out all after the enacting clause and insert the part printed in boldface roman

For text of introduced bill, see copy of bill as introduced on April 27, 2017


A BILL

To increase the role of the financial industry in combating human trafficking.


1.

Short title

This Act may be cited as the End Banking for Human Traffickers Act of 2017.

2.

Increasing the role of the financial industry in combating human trafficking

(a)

Treasury as a member of the President's Interagency Task Force To Monitor and Combat Trafficking

Section 105(b) of the Victims of Trafficking and Violence Protection Act of 2000 (22 U.S.C. 7103(b)) is amended by inserting the Secretary of the Treasury, after the Secretary of Education,.

(b)

Required review of procedures

Not later than 180 days after the date of enactment of this Act, the Financial Institutions Examination Council shall, in consultation with the Secretary of the Treasury and other appropriate law enforcement agencies, take the following actions:

(1)

Review and enhance, where necessary, training and examinations procedures to improve the ability of anti-money laundering programs to target human trafficking operations.

(2)

Review and enhance, where necessary, procedures for referring potential human trafficking cases to the appropriate law enforcement agency.

(c)

Interagency task force recommendations targeting money laundering related to human trafficking

(1)

In general

Not later than 180 days after the date of enactment of this Act, the Interagency Task Force to Monitor and Combat Trafficking shall prepare and submit to Congress, the Secretary of the Treasury, and each appropriate Federal banking agency a series of legislative, administrative, and regulatory recommendations, if necessary, to revise anti-money laundering programs of financial institutions in order to specifically target money laundering related to human trafficking, as described in paragraph (2).

(2)

Required recommendations

The recommendations required under paragraph (1) shall, at a minimum, include the following:

(A)

Successful anti-human trafficking programs currently in place at financial institutions that are suitable for broader adoption.

(B)

Recommended changes, if necessary, to the internal policies, procedures, and controls at financial institutions so that such institutions can better deter and detect money laundering related to human trafficking.

(C)

Recommended changes, if necessary, to ongoing employee training programs at financial institutions so that those institutions can better equip employees to deter and detect money laundering related to human trafficking, including the training of legal counsel, risk managers, and compliance officers.

(D)

Recommended revisions, if necessary, to existing regulatory requirements and guidelines for the reporting of suspicious transactions by financial institutions, as required pursuant to section 5318(g) of title 31, United States Code, in order to facilitate the collection of data on instances of suspected human trafficking.

(d)

Additional reporting requirement

Section 110(b) of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7107(b)) is amended by adding at the end the following:

(4)

Description of efforts of United States to eliminate money laundering related to human trafficking

In addition to the information required in the annual report under paragraph (1) and the interim report under paragraph (2), the Secretary of State, in consultation with the Attorney General and the Secretary of the Treasury, shall include in each such report a description of efforts of the United States to eliminate money laundering related to human trafficking and the number of investigations, arrests, indictments and convictions in money laundering cases with a nexus to human trafficking.

.

(b)

Required review of procedures

Not later than 180 days after the date of the enactment of this Act, the Financial Institutions Examination Council, in consultation with the Secretary of the Treasury, the private sector, and appropriate law enforcement agencies, shall—

(1)

review and enhance training and examinations procedures to improve the capabilities of anti-money laundering and countering the financing of terrorism programs to detect human trafficking-related financial transactions;

(2)

review and enhance procedures for referring potential human trafficking cases to the appropriate law enforcement agency; and

(3)

determine, as appropriate, whether requirements for financial institutions are sufficient to detect and deter money laundering related to human trafficking.

(c)

Interagency task force recommendations targeting money laundering related to human trafficking

(1)

In general

Not later than 270 days after the date of the enactment of this Act, the Interagency Task Force to Monitor and Combat Trafficking shall submit to the Committee on Financial Services and the Committee on the Judiciary of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs and the Committee on the Judiciary of the Senate, and the head of each appropriate Federal banking agency—

(A)

an analysis of anti-money laundering efforts of the United States Government and United States financial institutions related to human trafficking; and

(B)

appropriate legislative, administrative, and other recommendations to strengthen efforts against money laundering relating to human trafficking.

(2)

Required recommendations

The recommendations under paragraph (1) shall include—

(A)

feedback from financial institutions on best practices of successful anti-human trafficking programs currently in place that may be suitable for broader adoption by similarly situated financial institutions;

(B)

feedback from stakeholders, including trafficking victims and financial institutions, on policy proposals derived from the analysis conducted by the task force referred to in paragraph (1) that would enhance the efforts and programs of financial institutions to detect and deter money laundering related to human trafficking, including any recommended changes to internal policies, procedures, and controls related to human trafficking;

(C)

any recommended changes to training programs at financial institutions to better equip employees to deter and detect money laundering related to human trafficking;

(D)

any recommended changes to expand human trafficking-related information sharing among financial institutions and between such financial institutions, appropriate law enforcement agencies, and appropriate Federal agencies; and

(E)

recommended changes, if necessary, to existing statutory law to more effectively detect and deter money laundering related to human trafficking, where such money laundering involves the use of emerging technologies and virtual currencies.

(e) (d)

Limitation

Nothing in this Act shall be construed to grant rulemaking authority to the Interagency Task Force to Monitor and Combat Trafficking.

(f) (e)

Definitions

As used in this section—

(1)

the term anti-money laundering program means any program established by a financial institution pursuant to section 5318(h) of title 31, United States Code;

(2) (1)

the term appropriate Federal banking agency has the meaning given the term in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q));

(3) (2)

the term human trafficking means—

(A)

sex trafficking in which a commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age; or

(B)

the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery;

(4) (3)

the term Interagency Task Force to Monitor and Combat Trafficking means the Interagency Task Force to Monitor and Combat Trafficking established by the President pursuant to section 105 of the Victims of Trafficking and Violence Protection Act of 2000 (22 U.S.C. 7103); and

(5) (4)

the term law enforcement agency means an agency of the United States, a State, or a political subdivision of a State, authorized by law or by a government agency to engage in or supervise the prevention, detection, investigation, or prosecution of any violation of criminal or civil law.

3.

Coordination of human trafficking issues by the Office of Terrorism and Financial Intelligence

(a)

Functions

Section 312(a)(4) of title 31, United States Code, is amended—

(1)

by redesignating subparagraphs (E), (F), and (G) as subparagraphs (F), (G), and (H), respectively; and

(2)

by inserting after subparagraph (D) the following:

(E)

combating illicit financing relating to human trafficking;

.

(b)

Interagency coordination

Section 312(a) of title 31, United States Code, is amended by adding at the end the following:

(8)

Interagency coordination

The Secretary of the Treasury, after consultation with the Undersecretary for Terrorism and Financial Crimes, shall designate an office within the OTFI that shall coordinate efforts to combat the illicit financing of human trafficking with—

(A)

other offices of the Department of the Treasury;

(B)

other Federal agencies, including—

(i)

the Office to Monitor and Combat Trafficking in Persons of the Department of State; and

(ii)

the Interagency Task Force to Monitor and Combat Trafficking;

(C)

State and local law enforcement agencies; and

(D)

foreign governments.

.

4.

Additional reporting requirement under the Trafficking Victims Protection Act of 2000

Section 105(d)(7) of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7103(d)(7)) is amended—

(1)

in the matter preceding subparagraph (A)—

(A)

by inserting the Committee on Financial Services, after the Committee on Foreign Affairs,; and

(B)

by inserting the Committee on Banking, Housing, and Urban Affairs, after the Committee on Foreign Relations,;

(2)

in subparagraph (Q)(vii), by striking ; and and inserting a semicolon;

(3)

in subparagraph (R), by striking the period at the end and inserting ; and; and

(4)

by adding at the end the following:

(S)

the efforts of the United States to eliminate money laundering related to human trafficking and the number of investigations, arrests, indictments, and convictions in money laundering cases with a nexus to human trafficking.

.

1.

Short title

This Act may be cited as the End Banking for Human Traffickers Act of 2017.

2.

Increasing the role of the financial industry in combating human trafficking

(a)

Treasury as a member of the President's Interagency Task Force To Monitor and Combat Trafficking

Section 105(b) of the Victims of Trafficking and Violence Protection Act of 2000 (22 U.S.C. 7103(b)) is amended by inserting the Secretary of the Treasury, after the Secretary of Education,.

(b)

Required review of procedures

Not later than 180 days after the date of enactment of this Act, the Financial Institutions Examination Council shall, in consultation with the Secretary of the Treasury and other appropriate law enforcement agencies, take the following actions:

(1)

Review and enhance, where necessary, training and examinations procedures to improve the ability of anti-money laundering programs to target human trafficking operations.

(2)

Review and enhance, where necessary, procedures for referring potential human trafficking cases to the appropriate law enforcement agency.

(c)

Interagency task force recommendations targeting money laundering related to human trafficking

(1)

In general

Not later than 180 days after the date of enactment of this Act, the Interagency Task Force to Monitor and Combat Trafficking shall prepare and submit to Congress, the Secretary of the Treasury, and each appropriate Federal banking agency a series of legislative, administrative, and regulatory recommendations, if necessary, to revise anti-money laundering programs of financial institutions in order to specifically target money laundering related to human trafficking, as described in paragraph (2).

(2)

Required recommendations

The recommendations required under paragraph (1) shall, at a minimum, include the following:

(A)

Successful anti-human trafficking programs currently in place at financial institutions that are suitable for broader adoption.

(B)

Recommended changes, if necessary, to the internal policies, procedures, and controls at financial institutions so that such institutions can better deter and detect money laundering related to human trafficking.

(C)

Recommended changes, if necessary, to ongoing employee training programs at financial institutions so that those institutions can better equip employees to deter and detect money laundering related to human trafficking, including the training of legal counsel, risk managers, and compliance officers.

(D)

Recommended revisions, if necessary, to existing regulatory requirements and guidelines for the reporting of suspicious transactions by financial institutions, as required pursuant to section 5318(g) of title 31, United States Code, in order to facilitate the collection of data on instances of suspected human trafficking.

(d)

Additional reporting requirement

Section 110(b) of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7107(b)) is amended by adding at the end the following:

(4)

Description of efforts of United States to eliminate money laundering related to human trafficking

In addition to the information required in the annual report under paragraph (1) and the interim report under paragraph (2), the Secretary of State, in consultation with the Attorney General and the Secretary of the Treasury, shall include in each such report a description of efforts of the United States to eliminate money laundering related to human trafficking and the number of investigations, arrests, indictments and convictions in money laundering cases with a nexus to human trafficking.

.

(e)

Limitation

Nothing in this Act shall be construed to grant rulemaking authority to the Interagency Task Force to Monitor and Combat Trafficking.

(f)

Definitions

As used in this section—

(1)

the term anti-money laundering program means any program established by a financial institution pursuant to section 5318(h) of title 31, United States Code;

(2)

the term appropriate Federal banking agency has the meaning given the term in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q));

(3)

the term human trafficking means—

(A)

sex trafficking in which a commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age; or

(B)

the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery;

(4)

the term Interagency Task Force to Monitor and Combat Trafficking means the Interagency Task Force to Monitor and Combat Trafficking established by the President pursuant to section 105 of the Victims of Trafficking and Violence Protection Act of 2000 (22 U.S.C. 7103); and

(5)

the term law enforcement agency means an agency of the United States, a State, or a political subdivision of a State, authorized by law or by a government agency to engage in or supervise the prevention, detection, investigation, or prosecution of any violation of criminal or civil law.

3.

Minimum standards for the elimination of trafficking

Section 108(b) of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7106(b)) is amended by adding at the end the following new paragraph:

(13)

Whether the government of the country, consistent with the capacity of the country, has in effect a framework to prevent financial transactions involving the proceeds of severe forms of trafficking in persons, and is taking steps to implement such a framework, including by investigating, prosecuting, convicting, and sentencing individuals who attempt or conduct such transactions.

.

February 23, 2018

Reported from the Committee on Foreign Affairs with an amendment; committed to the Committee of the Whole House on the State of the Union and ordered to be printed