House
File
922
H-8158
Amend
House
File
922
as
follows:
1
1.
Page
4,
after
line
22
by
inserting:
2
<
Sec.
___.
NEW
SECTION
.
529A.4
Federal
law
——
preemption
3
and
safe
harbor.
4
1.
A
financial
institution
shall
not
be
deemed
to
have
5
violated
this
chapter
for
refusing
to
provide,
restricting,
or
6
terminating
financial
services
to
a
person
if
the
financial
7
institution
demonstrates,
by
a
preponderance
of
the
evidence,
8
that
such
refusal,
restriction,
or
termination
was
for
any
of
9
the
following
reasons:
10
a.
To
comply
with
a
specific
requirement
of
federal
law
11
including
but
not
limited
to
any
of
the
following:
12
(1)
The
federal
Bank
Secrecy
Act,
31
U.S.C.
§5311
et
seq.,
13
or
any
regulation,
guidance,
or
order
issued
thereunder
by
14
the
financial
crimes
enforcement
network
of
the
United
States
15
department
of
the
treasury,
including
those
related
to
the
16
reporting
of
suspicious
activity,
anti-money
laundering
program
17
obligations,
or
customer
due
diligence.
18
(2)
A
regulation,
directive,
or
order
issued
by
the
office
19
of
foreign
assets
control
of
the
United
States
department
of
20
the
treasury,
including
a
requirement
to
block,
freeze,
or
21
refuse
a
transaction
involving
sanctioned
persons,
entities,
22
or
jurisdictions.
23
(3)
A
formal
or
informal
directive,
supervisory
action,
24
safety-and-soundness
order,
consent
order,
or
memorandum
of
25
understanding
issued
by
a
federal
banking
regulator
with
26
jurisdiction
over
the
financial
institution,
including
the
27
office
of
the
comptroller
of
the
currency
of
the
United
28
States,
the
federal
deposit
insurance
corporation,
the
board
of
29
governors
of
the
federal
reserve
system,
or
the
national
credit
30
union
administration.
31
(4)
Any
applicable
know-your-customer
or
customer
due
32
diligence
regulation
promulgated
under
the
federal
Uniting
and
33
Strengthening
America
by
Providing
Appropriate
Tools
Required
34
to
Intercept
and
Obstruct
Terrorism
Act
of
2001,
Pub.
L.
No.
35
-1-
HF
922.3204
(2)
91
nls/ko
1/
2
#1.
107-56,
or
the
federal
Bank
Secrecy
Act,
Pub.
L.
No.
91-508.
1
b.
To
avoid
a
specific
and
articulable
risk
of
violating
2
federal
law,
provided
that
the
financial
institution
documents
3
the
basis
for
such
risk
determination
at
or
before
the
time
the
4
action
is
taken
and
retains
the
documentation
for
a
period
of
5
not
less
than
five
years.
6
2.
This
chapter
shall
not
be
construed
to
require
a
7
financial
institution
to
disclose
information
that
is
8
prohibited
from
disclosure
under
31
U.S.C.
§5318(g)(2)
or
any
9
other
provision
of
federal
law.
When
federal
law
prohibits
a
10
financial
institution
from
disclosing
the
specific
basis
for
a
11
refusal,
restriction,
or
termination
of
financial
services,
a
12
written
statement
by
the
financial
institution
indicating
that
13
the
financial
institution
is
unable
to
provide
information
due
14
to
federal
law
shall
satisfy
the
written
statement
requirement
15
under
section
529A.2,
subsection
2.
16
3.
This
chapter
shall
not
be
construed
to
limit,
supersede,
17
or
conflict
with
any
requirement
of
federal
law
applicable
to
18
financial
institutions.
In
any
case
of
irreconcilable
conflict
19
between
this
chapter
and
federal
law,
federal
law
shall
control
20
to
the
extent
of
the
conflict.
21
4.
The
safe
harbor
under
subsection
1
shall
be
construed
22
narrowly.
A
financial
institution
may
not
invoke
subsection
23
1
as
a
defense
based
solely
on
a
general
compliance
program,
24
enterprise-wide
risk
policy,
or
generalized
assessment
of
25
reputational
risk.
Subsection
1
applies
only
when
a
financial
26
institution
identifies
a
specific,
applicable
federal
27
requirement,
regulation,
or
order
that
directly
necessitated
28
the
action
taken.
>
29
______________________________
THOMSON
of
Floyd
-2-
HF
922.3204
(2)
91
nls/ko
2/
2