Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, H.R. 6729 is a well-intentioned bill aimed at countering human trafficking. My first concern with the bill, however, is the lack of a deliberative process surrounding the…
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, H.R. 6729 is a well-intentioned bill aimed at countering human trafficking. My first concern with the bill, however, is the lack of a deliberative process surrounding the measure, which could lead to a number of serious unintended consequences as currently drafted.
The bill will give a sweeping safe harbor to nonprofits that share information with financial institutions regarding the involuntary trafficking of children, women, and men that will nullify all State and local defamation, libel, and privacy laws.
This means eligible nonprofits could share personally identifiable information about any person the nonprofit merely suspects of human trafficking with any financial institution, even if their information is false or misleading. Such sharing of information could, in turn, lead financial institutions to close an individual's account and deny them access to the financial system, even if the individual has not been arrested or indicted for a crime.
Importantly, this bill also explicitly states that the Treasury Department may not impose a requirement that the nonprofits share the information in good faith. Therefore, this bill doesn't protect against malicious or negligent reporting. In fact, the Due Process Institute has stated: `` . . . Surely not every suspicion or accusation that would come through a nonprofit will be accurate or truthful. Some suspicions or accusations might even be motivated by personal, political, ethnic, racial, cultural, or religious animus.''
Finally, Mr. Speaker, I include in the Record two letters of opposition to the bill from two coalitions of civil liberty and privacy advocates, including the American Civil Liberties Union, the Due Process Institute, Freedom Works, the National Association of Criminal Defense Lawyers, the Project On Government Oversight, Defending Rights and Dissent, and New America's Open Technology Institute, among others.
September 25, 2018.
Dear Representatives: We urge you to vote against H.R. 6729
when the measure is considered later this week. The
legislation would allow the Treasury Department to expand the
surveillance and sharing of Americans' financial records
beyond what is provided for by the USA PATRIOT Act. The
government has previously sought and Congress has rightly
voted to reject such an expansion. Similar legislation in the
114th Congress, H.R. 5606, drew opposition from 177 members
and failed on a suspension vote.
The legislation has broad applicability and significantly
harmful effects that go far beyond its stated purpose of
allowing financial institutions to combat human trafficking.
H.R. 6729 contains an overly broad provision that prohibits
Treasury from requiring nonprofit organizations to show that
they are sharing information in good faith and preempts
liability for organizations under privacy laws. While the
measure is described as allowing nonprofits to report
suspicions of human trafficking or money laundering to
financial institutions, it risks our privacy and raises
concerns about the misuse of information.
In addition, H.R. 6729 allows a wide range of institutions
to communicate with each other about ``suspicious''
activities regardless of the basis for the suspicion and
despite other applicable laws and consumer agreements. The
concerns need not be rooted in reality. Moreover, the safe
harbor provision does not merely encompass traditional
financial institutions like banks and financial services
providers, but extends more broadly. This legislation also
fails to establish any legal recourse for negligent or
malicious acts.
H.R. 6729 would create the risk of financial institutions
closing accounts of people they deem too risky to do business
with on the basis of meritless or otherwise unsupported
claims from nonprofit organizations. Every financial
institution already has a legal obligation to file a
``Suspicious Activity Report'' with the government whenever
it ``knows, suspects, or has reason to suspect that an
individual, entity, or organization is involved in or may be
involved in terrorist activity or money laundering.'' It is
an unfortunate fact that suspicions and accusations can be
based on or motivated by personal, political, ethnic, racial,
cultural, or religious animus. It is unacceptable to expand
the scope of entities that can submit this information in a
process that is broadly immunized from legal recourse.
This legislation goes far beyond the goal of combating
human trafficking and significantly expands governmental
surveillance, the impact of which falls most heavily and
relentlessly on those who are the least able to defend
themselves. Now is not the time to rush this legislation,
introduced a mere two weeks ago, through a legislative
procedure intended for uncontroversial bills.
Sincerely yours,
American Civil Liberties Union, American-Arab Anti-
Discrimination Committee, Color Of Change, Defending Rights &
Dissent, Demand Progress Action, Free Press Action, Freedom
of the Press Foundation, Government Information Watch, New
America's Open Technology Institute, Project On Government
Oversight, X-Lab.
Mr. Speaker, I remain committed to fighting against human trafficking, but this bill may result in serious unintended consequences for innocent people, including losing access to their money and to the financial system based on the mere accusation from a nonprofit. For this reason, I oppose this bill.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield as much time as she may consume to the gentlewoman from New York (Mrs. Carolyn B. Maloney).
Mr. Speaker, I yield such time as she may consume to the gentlewoman from Arizona (Ms. Sinema).
Mr. Speaker, I have no further speakers, and I yield back the balance of my time.