Foreign Affiliates Sharing Pilot Program Extension Act

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

Mr. Speaker, I rise in support of my bill, H.R. 5524, the Foreign Affiliates Sharing Pilot Program Extension Act. In January 2021, Congress successfully overrode Trump's veto to pass the National Defense Authorization Act, also known as NDAA, which is our Nation's annual Defense bill. This included the enactment of the Anti-Money Laundering Act of 2020, the first significant change to America's anti- money laundering and financial-based terrorism policy since 9/11.

Our bipartisan goal in passing the Anti-Money Laundering Act of 2020 was to improve the deterrence and detection of financial crime by promoting innovation, regulatory reform, and industry engagement.

In doing so, the U.S. anti-money laundering and financial counterterrorism efforts would be strengthened, modernized, and streamlined. One provision of the act established the Foreign Affiliates Sharing Pilot Program, which would permit U.S.-regulated financial institutions to share selected Bank Secrecy Act information with foreign branches and affiliates to help detect and deter illicit finance.

Currently, the sharing of these suspicious activity reports information with foreign branches of U.S. institution is not permitted because they are not subject to our Nation's Bank Secrecy Act regulations.

By allowing financial institutions to share information with foreign affiliates, the pilot program would improve multinational compliance and detection while still ensuring that safeguards are in place to protect the confidentiality of such reports.

My bill moves the expiration date from January 1, 2024, to 3 years after the pilot begins. This is a necessary extension to give the agency sufficient time to implement the pilot program.

The rulemaking to design the pilot was noticed back in January 2022, but Treasury has not yet issued a final rule to launch the program, so obviously an extension is needed.

The new timeframe proposed here will enable the Department to complete its rulemaking process and finally implement the vital national security program as Congress originally intended.

Again, I would stress the importance of passing this bill to give the Treasury sufficient time to implement this very bipartisan pilot program to bolster our ability to combat money laundering and protect our national security.

The pilot program would provide institutions with a pathway to better manage the risk of financial crimes. The bill received a unanimous vote at the committee markup.

Now, more than ever, Americans should feel confident that the proceeds of their transactions are not being siphoned off and stowed away in the coffers of criminals. I thank my colleagues on the committee for supporting this bill, and I urge all Members to support it.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5524) to amend the start date of the pilot program on sharing with foreign branches, subsidiaries and affiliates, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the bill.

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

Mr. Speaker, first established in the Anti-Money Laundering Act, the Foreign Affiliates Sharing Pilot Program allows financial institutions to share Suspicious Activity Reports and related information with the institution's foreign branches, subsidiaries, and affiliates to help combat illicit finance risks.

Sharing financial intelligence is the bedrock of thwarting terrorists' financial activity and the movement of dangerous drugs like fentanyl across our southern border here in the United States. It ensures that terrorists and

other criminals are not able to infiltrate the U.S. financial system.

In October of this year, an unlicensed money transmitting business admitted in court that they are illegally helping to fund foreign gamblers laundering money through the U.S. financial system to avoid scrutiny or investigation by U.S. or foreign law enforcement.

From 2012 to 2020, the business helped move money through at least 15 countries, including ones the State Department has identified as major money laundering countries like Mexico, Argentina, Switzerland, and the

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

Mr. Speaker, I thank the members of the Financial Services Committee, particularly the incredible staff that have helped to lead this effort and recognize that this is a continuation of a program that has shown remarkable success.

As a 20-year intelligence officer serving in both the military and the intelligence community, we know firsthand that the illicit use of financing is the blood that keeps terrorist, criminal, and foreign entities active on our own soil and a threat to us overseas.

We must continue to march forward not only to hold them accountable, but to be able to work with our subsidiary and overseas partners to truly combat this threat on a global scale. The leadership shown on this committee as well as within the subcommittee are a direct measure to be able to empower our team, both in the administration, but particularly at our frontline levels, our banks and financial institutions, with the tools they need to be successful.

Mr. Speaker, I thank my colleague on the other side of the aisle and recognize that together this is a bill that truly helps protect our national security.

Mr. Speaker, I would urge my colleagues to support H.R. 5224, and I yield back the balance of my time.