To provide requirements for the appropriate Federal banking agencies when requesting or ordering a depository institution to terminate a specific customer account, to provide for additional requirements related to subpoenas issued under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and for other purposes.
Financial Institution Customer Protection Act of 2016
(Sec. 2) This bill prohibits a federal banking agency from formally or informally suggesting, requesting, or ordering a depository institution to terminate either a specific customer account, or group of customer accounts, or otherwise restrict or discourage it from entering into or maintaining a banking relationship with a specific customer or group of customers, unless: (1) the agency has a material reason to do so, and (2) the reason is not based solely on reputation risk.
The "material reason" criterion shall be satisfied if an agency believes that a specific customer or group of customers poses a threat to national security, including any belief that they are involved in terrorist financing.
Unless the appropriate agency determines that the customer or group of customers has used due diligence to avoid doing business with any entity described below, the bill deems the criteria addressing "material reason" to be met if the agency believes a customer or group of customers is, or is acting as, a conduit for an entity which:
If an appropriate federal banking agency orders a depository institution to terminate a specific customer account or a group of customer accounts, the depository institution shall inform the customer or customers of the justification for the termination.
No notice may be given to the customer, however, if the agency requests or orders a depository institution to terminate a customer account (or a group of customer accounts) based upon a belief that customer or those customers pose a threat to national security or are otherwise described above.
(Sec. 3) The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 is amended to revise requirements for summoning witnesses and requiring production of books or other records the Attorney General deems relevant or material to a civil investigation in contemplation of a civil proceeding which may result in civil penalties for specified violations.
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Placed on the Union Calendar, Calendar No. 693.
Rules Committee Resolution H. Res. 595 Reported to House. Resolution provides for consideration of H.R. 1675 and H.R. 766.
Rule H. Res. 595 passed House.
Considered under the provisions of rule H. Res. 595. (consideration: CR H570-583; text of amendment in the nature of a substitute: CR H578)
Resolution provides for consideration of H.R. 1675 and H.R. 766.
House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 595 and Rule XVIII.
The Speaker designated the Honorable Alexander X. Mooney to act as Chairman of the Committee.
GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate on H.R. 766.
DEBATE - Pursuant to the provisions of H. Res. 595, the Committee of the Whole proceeded with 10 minutes of debate on the Sherman amendment No. 1.
DEBATE - Pursuant to the provisions of H. Res. 595, the Committee of the Whole proceeded with 10 minutes of debate on the Gosar amendment No. 2.
The House rose from the Committee of the Whole House on the state of the Union to report H.R. 766.
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The previous question was ordered pursuant to the rule. (consideration: CR H580)
Ms. Castor (FL) moved to recommit with instructions to the Committee on Financial Services. (consideration: CR H581-582; text: CR H581)
DEBATE - The House proceeded with 10 minutes of debate on the Castor (FL) motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment to add at the end of the bill the following to ensure financial institutions must prove to federal banking regulatory agencies that in the preceding 5 years they have not been subjected to a consent order, settlement, deferred prosecution agreement, or civil or criminal penalty for unfair or deceptive acts and practices relating to the sale of a mortgage product.
The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H582)
On motion to recommit with instructions Failed by the Yeas and Nays: 177 - 240 (Roll no. 62).
Roll Call #62 (House)MOMENT OF SILENCE - The House observed a moment of silence in memory of 12 Marines who lost their lives in a January 14 training accident in Hawaii.
Passed/agreed to in House: On passage Passed by the Yeas and Nays: 250 - 169 (Roll no. 63).
Roll Call #63 (House)On passage Passed by the Yeas and Nays: 250 - 169 (Roll no. 63).
Roll Call #63 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.