SEC. 110A. STUDY OF FINANCIAL MODERNIZATION'S AFFECT ON THE ACCESSIBILITY OF SMALL BUSINESS AND FARM LOANS

(a) STUDY- The Secretary of the Treasury, in consultation with the Federal banking agencies (as defined in Section 3(z) of the Federal Deposit Insurance Act), shall conduct a study of the extent to which credit is being provided to and for small business and farms, as a result of this Act.

(b) REPORT- Before the end of the 5-year period beginning on the date of the enactment of this Act, the Secretary, in consultation with the Federal banking agencies, shall submit a report to the Congress on the study conducted pursuant to subsection (a) and shall include such recommendations as the Secretary determines to be appropriate for administrative and legislative action.

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3. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE KING OF NEW YORK, OR REPRESENTATIVE VELAQUEZ OF NEW YORK, OR A DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 96, line 12, strike `operations of'.

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4. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE PAUL OF TEXAS, OR REPRESENTATIVE BARR OF GEORGIA, OR A DESIGNEE, DEBATABLE FOR 10 MINUTES

Page 235, after line 23, insert the following new subsections:

(c) PREVENTION OF FUTURE PRIVACY INVASIONS-

(1) IN GENERAL- Section 5318(g) of title 31, United States Code, is amended--

(A) by striking paragraph (1) and inserting the following new paragraph:

`(1) IN GENERAL- Any financial institution, and any director, officer, employee, or agent of any financial institution, may report to the Secretary any transaction relevant to a possible violation of a law or regulation.';

(B) in paragraph (2), by striking `suspicious';

(C) in paragraph (4)(A)--

(i) by striking `requiring' and inserting `receiving'; and

(ii) by striking `suspicious transaction' and inserting `transaction relevant to a possible violation of a law or regulation';

(D) in paragraph (4)(B), by striking `suspicious transaction' and inserting `transaction relevant to a possible violation of a law or regulation'; and

(E) by adding at the end of paragraph (4) the following new subparagraph:

`(D) RECORDKEEPING- The Secretary shall ensure that no report filed under this paragraph is maintained by the Secretary or any Federal or State law enforcement or supervisory agency to whom access to the report (or information therein) has been granted after the earlier of--

`(i) the end of the 4-year period beginning on the date the report was received; or

`(ii) 60 days after the expiration of the longest statute of limitations relating to any possible violation of a law or regulation identified in such report,

unless the report or information contained in the report is being used in an on-going investigation of a possible violation of a law or regulation identified in such report.'.

(2) CLARIFICATION OF PURPOSES OF ANTI-MONEY LAUNDERING PROGRAM- Section 5318(h) of title 31, United States Code, is amended by adding at the end the following new paragraph:

`(3) LIMITATION- Notwithstanding paragraphs (1) and (2), the Secretary may not require or encourage an insured depository institution or any affiliate of an insured depository institution to--

`(A) determine the sources of funds used by any customer of the institution or affiliate in any transaction;

`(B) assess the purpose of any transaction or seek from the customer an explanation for the transaction;

`(C) determine what transactions are normal or expected for a customer;

`(D) monitor customer body language or behavior;

`(E) monitor customer transactions and compare them to historical patterns; or

`(F) report to the Secretary transactions that do not conform to a customer's historical transaction patterns.

(3) CLERICAL AMENDMENTS-

(A) The subsection heading for section 5318(g) is amended to read as follows:

`(g) REPORTING POSSIBLE VIOLATIONS OF LAWS AND REGULATIONS- '.

(B) The paragraph heading for section 5318(g)(4) of title 31, United States Code, is amended to read as follows:

`(4) SINGLE DESIGNEE FOR REPORTING TRANSACTIONS RELEVANT TO A POSSIBLE VIOLATION OF LAW OR REGULATION- '.

(d) INCREASE IN TRIGGER AMOUNT FOR CASH TRANSACTION REPORTS-

(1) DOMESTIC- Section 5313(a) of title 31, United States Code, is amended by adding at the end the following new sentence: `In no event may the Secretary require reports under this section for transactions involving less than $25,000.'.

(2) IMPORTING AND EXPORTING- Section 5316(a) is amended by striking `$10,000' each place such term appears and inserting `$25,000'.

(e) AGENCY REPORTS ON RECONCILING PENALTY AMOUNTS- Before the end of the 1-year period beginning on the date of the enactment of this Act, the Federal banking agencies (as defined in section 3 of the Federal Deposit Insurance Act) shall submit reports to the Congress containing proposed legislation to conform the penalties imposed on depository institutions (as defined in section 3 of the Federal Deposit Insurance Act) for violations of subchapter II of chapter 53 of title 31, United States Code, to the penalties imposed on such institutions under section 8 of the Federal Deposit Insurance Act.

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