H-8158

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

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THOMSON of Floyd