FinCEN Improvement Act of 2019

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1414) to amend the duties of the Financial Crimes Enforcement Network (FinCEN) to ensure FinCEN works with Tribal law enforcement agencies, protects against all forms of terrorism, and focuses on virtual currencies.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on this legislation and to insert extraneous material thereon.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, the FinCEN Improvement Act is a bill that will strengthen the Financial Crimes Enforcement Network, FinCEN, our national security, and our financial system. A form of this bipartisan bill was introduced last year with the exact same language, and it unanimously passed the House on suspension by voice vote.

Currently, FinCEN works with Federal, State, local, and foreign law enforcement authorities in its anti-money laundering/counter terror financing objectives. Although Tribal law enforcement is a strong partner in fighting crime and safeguarding our country's national security, they are not yet listed in the FinCEN statute alongside their law enforcement partners.

Though FinCEN voluntarily works with Tribal law enforcement in these objectives, this legislation will make FinCEN's assistance to Tribal law enforcement mandatory. This bill will also amend FinCEN's statute to protect against all forms of terrorism. As written, the underlying statute only requires the protection against international terrorism.

While the United States faces a serious threat from foreign terrorist organizations, the threat from both homegrown violent extremists and domestic terrorists has sharply increased within the past several years. Although this type of terrorism has been less discussed in the news cycle, these terrorists are equally as dangerous as international terrorist organizations, if not more.

In fact, a survey of 382 law enforcement agencies, conducted with the Police Executive Research Forum with funding from the National Institute of Justice, found that 74 percent of the law enforcement agencies reported antigovernment extremism, such as sovereign citizen extremism, as one of the top terrorist threats in their jurisdictions. This part of the bill will ensure that a proper focus be paid to all forms of terrorism.

Additionally, this bill will require FinCEN to work with foreign financial intelligence units on anti-money laundering and counter terror financing initiatives with respect to emerging technologies such as cryptocurrencies, which are increasingly used by terrorists and transnational criminals.

As the threat environment has changed with the birth and prominence of cryptocurrencies, online marketplaces, and the dark web, FinCEN needs to coordinate with and support our international partners that share our common anti-money laundering/counter terror financing goals.

For these reasons, I am proud to support this legislation, and I congratulate Congresswoman Wexton and Congressman Riggleman for introducing this bill.

Mr. Speaker, I urge all Members to vote ``yes'' on this important legislation, and I reserve the balance of my time.

Mr. Speaker, I yield 3 minutes to the gentlewoman from Virginia (Ms. Wexton).

Mr. Speaker, I have no further speakers, and I am prepared to close. I reserve the balance of my time.

Mr. Speaker, I am pleased that Ms. Wexton and Mr. Riggleman have brought this issue to the full House. It addresses key gaps in our efforts to fight financial crime, something we all should support.

I urge my colleagues to join me in supporting this important piece of legislation, and I yield back the balance of my time.

Mr. Speaker, today, I am proud to rise in support as the lead Republican sponsor of H.R. 1414, the FinCEN Improvement Act of 2019.

I thank my colleague and fellow Member from the Commonwealth of Virginia, Representative Jennifer Wexton, for her work on this legislation. This bill is a tangible example of what Congress can accomplish when we put aside our differences and work together.

FinCEN, or the Financial Crimes Enforcement Network, is a critical component of law enforcement, as the agency is charged with promoting national security by safeguarding our financial system.

Terrorists, drug smugglers, human traffickers, and other criminal actors are constantly innovating and creating new ways to exploit the system. Bad actors know the current limitations of law enforcement and how to profit immensely from our weaknesses as they are constantly developing their tactics, techniques, and procedures, or TTPs, based on our security posture.

It is FinCEN's mission to cut the head off the snake and combat illicit financing of these activities. This bill will strengthen FinCEN in three key areas.

First, it strengthens FinCEN by codifying the domestic responsibilities of combating illicit finance. We know all too well the danger international terrorists pose, but it is equally important that we police criminal financial activity domestically as well. By reinforcing FinCEN's domestic mandate, we are sending a message to all Americans that we will not tolerate criminal activity either at home or abroad.

Second, this bill adds Tribal law enforcement to the list of FinCEN partners. By ensuring robust and comprehensive law enforcement partners, we are equipping the agencies charged with safeguarding our financial system with the necessary tools and information to execute their mission. Partnering with Tribal law enforcement closes a potential loophole that terrorists can use to inject illicit money into the system.

Finally, and perhaps most importantly, this bill clearly incorporates cryptocurrencies and other emerging technologies that substitute for currency.

As financial technology, or fintech, evolves, so do the opportunities for criminals to take advantage of the financial system. We must ensure that our law enforcement agencies have a clear directive from Congress to take on all challenges and risks facing our financial system.

Mr. Speaker, today, I ask all my colleagues in the people's House to join me and Ms. Wexton by voting in favor of this legislation.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in strong support of H.R. 1414, the FinCEN Improvement Act.

This bipartisan piece of legislation passed the House by a voice vote last Congress. I am happy to see that my colleague, Congressman Riggleman of Virginia, has joined Congresswoman Wexton in reintroducing it this Congress.

This is the first piece of cosponsored legislation Congressman Riggleman had on the floor, and the fact that it focuses on terrorism speaks directly to his past service in the Air Force and his continued effort to protect the American people from bad actors. Mr. Speaker, I thank him and Congresswoman Wexton for leading this fight to protect the American people.

H.R. 1414 outlines how the terror landscape in our post-9/11 world has expanded.

Now, we are tasked with protecting the American people not only from traditional threats posed by groups like al-Qaida abroad, but also domestic terrorism, where crimes are committed on U.S. soil by both foreign and U.S. persons.

H.R. 1414 mandates that FinCEN focus on all forms of terror, not just foreign terror campaigns. This is a commonsense update to the statute that would bring added clarity to our antiterrorism laws.

H.R. 1414 also strengthens FinCEN by ensuring cooperation with Tribal law enforcement agencies and the prioritization of virtual currencies.

Illicit actors have been found to be using virtual currencies because of their ability to provide anonymity. Some virtual currencies have been shown to frustrate law enforcement's efforts to link transactions to people or IP addresses.

It is for this exact reason that FinCEN needs to be able to allocate resources and manpower to investigate and thwart instances of terrorism that involve all forms of virtual currencies.

Mr. Speaker, it is our sworn duty to protect the American people, and H.R. 1414 allows FinCEN to adapt its investigative abilities to prevent terrorism in our digital age.

Again, I thank Ms. Wexton and Mr. Riggleman for their leadership, and I urge my colleagues to support this bipartisan legislation.

I reserve the balance of my time.

Mr. Speaker, I yield 3 minutes to the gentleman from Virginia (Mr. Riggleman), one of our outstanding freshmen from the freshman class of this past fall.

Mr. Speaker, I reiterate my support for H.R. 1414, the FinCEN Improvement Act, and I yield back the balance of my time.

Mr. Speaker, I thank the chairwoman for yielding me the time.

Mr. Speaker, I rise in support of H.R. 1414, the FinCEN Improvement Act, bipartisan legislation I introduced with my Financial Services Committee colleague and fellow Virginian, Congressman Denver Riggleman.

This is a practical bill that will help modernize the duties of the Financial Crimes Enforcement Network, otherwise known as FinCEN. The mission of FinCEN is to safeguard the financial system from crimes or illicit use, such as terrorist financing; combat money laundering; and promote national security through the collection, analysis, and dissemination of financial information and intelligence.

H.R. 1414 would do three things to further their important mission.

First is in the area of investigation into terror financing. FinCEN is currently authorized to combat international terrorism but fails to mention domestic terror activities. While international terror threats remain present and relevant, the threat landscape has expanded considerably and also includes domestic terror groups that commit crimes to further their agendas.

H.R. 1414 will amend the FinCEN authorizing legislation to clarify its role in investigating and combating terror threats, be they foreign or domestic. FinCEN is already doing important work to combat domestic terrorism, but the bill will clarify its role and correct this oversight in the statute.

Second, the virtual currency landscape is rapidly evolving and many of these technologies did not exist when previous laws and regulations were written. H.R. 1414 will help FinCEN combat emerging methods of financing illicit activity, including the use of cryptocurrency.

Finally, the FinCEN Improvement Act builds on existing relationships with law enforcement partners by ensuring that FinCEN has the authority to work not only with Federal, State, and local law enforcement, but also with Tribal law enforcement across the country.

I am proud to cosponsor this bill, Mr. Speaker, and I urge our colleagues to support it.