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Bill > HR2706


US HR2706

Financial Institution Customer Protection Act of 2017


summary

Introduced
05/25/2017
In Committee
10/12/2017
Crossed Over
12/12/2017
Passed
Dead
12/31/2018

Introduced Session

115th Congress

Bill Summary

Financial Institution Customer Protection Act of 2017 (Sec. 2) This bill specifies that a federal banking agency may not request or order a depository institution to terminate a customer account unless: (1) the agency has a valid reason for doing so, and (2) that reason is not based solely on reputation risk. Valid reasons for terminating an account include threats to national security and involvement in terrorist financing, including state sponsorship of terrorism. A federal banking agency requesting a termination must provide the depository institution with notification and justification.

AI Summary

This bill, the Financial Institution Customer Protection Act of 2017, specifies that a federal banking agency may not request or order a depository institution (such as a bank or credit union) to terminate a customer account unless the agency has a valid reason, such as national security threats or involvement in terrorist financing, and that reason is not based solely on reputation risk. The bill requires the agency to provide the depository institution with written notification and justification for the account termination, except in cases where it would interfere with a criminal investigation or pose a national security threat. The bill also requires federal banking agencies to report annually to Congress on the number of customer accounts they have requested or ordered to be terminated and the legal authority they relied on.

Committee Categories

Business and Industry, Housing and Urban Affairs

Sponsors (20)

Last Action

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (on 12/12/2017)

bill text


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