Amendment clarifies that the bill does not prevent Federal banking regulators from requesting or requiring a financial institution to terminate a relationship with a customer because (1) the customer poses a threat to national security, (2) is engaged in terrorist financing, (3) is doing business with Iran, North Korea, Syria, or another State Sponsor of Terrorism, or (4) is doing business with an entity in any of those countries.

1. 1

   Change 1: Replaces “poses” through “such belief” with new text

   ReplacesPage 2, line 6Printed page

   In H.R. 766 · Reported in House

   (B) such reason is not based solely on reputation risk.

   (2) Treatment of national security threats.--If an appropriate Federal banking agency believes a specific customer or group of customers [struck: poses a threat to national security, including any belief that such customer ][inserted: is, ]or [struck: group of customers ]is [struck: involved in terrorist financing, such belief shall satisfy the materiality requirement under paragraph (1)(A).][inserted: acting as a conduit for, an entity which--]

   Inserted: (A) poses a threat to national security;

   Inserted: (B) is involved in terrorist financing;

   Inserted: (C) is an agency of the government of Iran, North Korea, Syria, or any country listed from time to time on the State Sponsors of Terrorism list;

   Inserted: (D) is located in, or is subject to the jurisdiction of, any country specified in subparagraph (C); or

   Inserted: (E) does business with any entity described in subparagraph (C) or (D), unless the appropriate Federal banking agency determines that the customer or group of customers has used due diligence to avoid doing business with any entity described in subparagraph (C) or (D), such belief shall satisfy the materiality requirement under paragraph (1)(A).

   (b) Notice Requirement.--

   Original wording

   Page 2, line 6, strike “poses” and all that follows through “such belief” and insert the following: “is, or is acting as a conduit for, an entity which--

2. 2

   Change 2: Replaces “materiality requirement under paragraph (1)(A)” with “requirement under paragraph (1)”

   ReplacesPage 2, line 9Printed page

   In H.R. 766 · Reported in House

   (B) such reason is not based solely on reputation risk.

   (2) Treatment of national security threats.--If an appropriate Federal banking agency believes a specific customer or group of customers poses a threat to national security, including any belief that such customer or group of customers is involved in terrorist financing, such belief shall satisfy the [struck: materiality ]requirement under paragraph (1)[struck: (A)].

   (b) Notice Requirement.--

   Original wording

   Page 2, line 9, strike “materiality requirement under paragraph (1)(A)” and insert “requirement under paragraph (1)”.

3. 3

   Change 3: Inserts “, or are otherwise described under subsection (a)(2)” after “security”

   InsertsPage 3, line 16Printed page

   …security[inserted: , or are otherwise described under subsection (a)(2)]…

   Original wording

   Page 3, line 16, after “security” insert the following: “, or are otherwise described under subsection (a)(2)”.

Read automatically from the Congressional Record. Check the original before relying on it.

As printed