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Bill114th CongressFiled Feb 5, 2015Finance and Financial Sector
H.R. 766

Financial Institution Customer Protection Act of 2016

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What it doesSummary passed house amended (Feb 4, 2016)

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:

  • poses a threat to national security;
  • is involved in terrorist financing;
  • 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;
  • is either located in, or subject to the jurisdiction of, any of such countries; or
  • does business with any entity located in such countries.

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.

What just happenedFeb 8, 2016

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Who’s behind it

Rep. Luetkemeyer, Blaine [R-MO-3](R-MO)Sponsor
30 cosponsors3 D27 R
Read on Congress.gov
30cosponsors2committees30actions2amendments3related bills19subjects
  1. Feb 8, 2016IntroReferral

    Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

    Banking, Housing, and Urban Affairs Committee
  2. Feb 4, 2016FloorH38310

    Motion to reconsider laid on the table Agreed to without objection.

  3. Feb 4, 2016FloorH37100

    On passage Passed by the Yeas and Nays: 250 - 169 (Roll no. 63).

  4. Feb 4, 2016Floor8000

    Passed/agreed to in House: On passage Passed by the Yeas and Nays: 250 - 169 (Roll no. 63).

  5. Feb 4, 2016FloorH8D000

    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.

  6. Feb 4, 2016FloorH36110

    On motion to recommit with instructions Failed by the Yeas and Nays: 177 - 240 (Roll no. 62).

    Financial Services Committee
  7. Feb 4, 2016FloorH8A000

    The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H582)

  8. Feb 4, 2016FloorH8D000

    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.

  9. Feb 4, 2016FloorH36100

    Ms. Castor (FL) moved to recommit with instructions to the Committee on Financial Services. (consideration: CR H581-582; text: CR H581)

    Financial Services Committee
  10. Feb 4, 2016FloorH35000

    The previous question was ordered pursuant to the rule. (consideration: CR H580)

  11. Feb 4, 2016FloorH32600

    The House rose from the Committee of the Whole House on the state of the Union to report H.R. 766.

  12. Feb 4, 2016FloorH8D000

    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.

  13. Feb 4, 2016FloorH8D000

    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.

  14. Feb 4, 2016FloorH8D000

    GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate on H.R. 766.

  15. Feb 4, 2016FloorH32400

    The Speaker designated the Honorable Alexander X. Mooney to act as Chairman of the Committee.

  16. Feb 4, 2016FloorH32020

    House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 595 and Rule XVIII.

  17. Feb 4, 2016FloorH8D000

    Resolution provides for consideration of H.R. 1675 and H.R. 766.

  18. Feb 4, 2016FloorH30000

    Considered under the provisions of rule H. Res. 595. (consideration: CR H570-583; text of amendment in the nature of a substitute: CR H578)

  19. Feb 3, 2016FloorH1L220

    Rule H. Res. 595 passed House.

  20. Feb 2, 2016FloorH1L210

    Rules Committee Resolution H. Res. 595 Reported to House. Resolution provides for consideration of H.R. 1675 and H.R. 766.

  21. Jan 28, 2016CalendarsH12410

    Placed on the Union Calendar, Calendar No. 305.

  22. Jan 28, 2016CommitteeH12200

    Reported by the Committee on Financial Services. H. Rept. 114-402.

    Financial Services Committee
  23. Jan 28, 2016Committee5000

    Reported by the Committee on Financial Services. H. Rept. 114-402.

    Financial Services Committee
  24. Jul 29, 2015Committee

    Ordered to be Reported by the Yeas and Nays: 35 - 19.

    Financial Services Committee
  25. Jul 29, 2015Committee

    Committee Consideration and Mark-up Session Held.

    Financial Services Committee
  26. Jul 28, 2015Committee

    Committee Consideration and Mark-up Session Held.

    Financial Services Committee
  27. Jun 11, 2015Committee

    Hearings Held by the Subcommittee on Financial Institutions and Consumer Credit Prior to Referral.

    Consumer Protection and Financial Institutions Subcommittee
  28. Feb 5, 2015IntroReferralH11100

    Referred to the House Committee on Financial Services.

    Financial Services Committee
  29. Feb 5, 2015IntroReferralIntro-H

    Introduced in House

  30. Feb 5, 2015IntroReferral1000

    Introduced in House

Passed House amendedFeb 4, 201636

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:

  • poses a threat to national security;
  • is involved in terrorist financing;
  • 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;
  • is either located in, or subject to the jurisdiction of, any of such countries; or
  • does business with any entity located in such countries.

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.

Reported to House without amendmentJan 28, 201679

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

Financial Institution Customer Protection Act of 2015

(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 a federal banking 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.

Nothing shall be construed as requiring a depository institution or an appropriate federal banking agency to inform a customer or customers of the justification for the customer's account termination.

No notice may be given to the customer, furthermore, if the federal banking 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.

(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.

Introduced in HouseFeb 5, 2015

Financial Institution Customer Protection Act of 2015

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.

Deems the "material reason" criterion satisfied if a federal banking 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.

Prescribes notice requirements incumbent upon the federal banking agency to the depository institution regarding customer account restriction or termination, but states that the agency's notice to the customer is not required.

Prohibits any notice to the customer if the federal banking 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.

Amends the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 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.

Financial Institution Customer Protection Act of 2016 — Informed