2000 
[DOCID: f:h2273ih.txt]


107th CONGRESS
  1st Session
                                H. R. 2273

To amend banking laws with respect to offshore activities, investments, 
      and affiliations of national banks, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 21, 2001

 Mr. Conyers introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend banking laws with respect to offshore activities, investments, 
      and affiliations of national banks, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Bank Offshore Activities 
Act of 2001''.

SEC. 2. CLARIFICATION OF TERRITORIAL APPLICATION.

    Section 14 of the Act entitled ``An Act to amend the national 
banking laws to clarify or eliminate ambiguities, to repeal certain 
laws which have become obsolete, and for other purposes'' and approved 
September 8, 1959 (12 U.S.C. 42) is amended by inserting before the 
period at the end ``, except that sections 5156B and 5211(d) of the 
Revised Statutes of the United States shall apply with respect to 
activities, investments, and affiliations of national banks without 
regard to any territorial limitation.''.

SEC. 3. REPORTS ON OFFSHORE INTERESTS REQUIRED.

    Section 5211 of the Revised Statutes of the United States (12 
U.S.C. 161) is amended by adding at the end the following new 
subsection:
    ``(d) Reports on Offshore Interests Required.--
            ``(1) In general.--If a national bank acquires, directly or 
        indirectly, a beneficial interest in any offshore company, the 
        national bank shall submit a written report on such acquisition 
        to the Comptroller of the Currency before the end of the 30-day 
        period beginning on the date the acquisition is consummated.
            ``(2) Contents of report.--A report submitted under 
        paragraph (1) shall contain the following information:
                    ``(A) The names of all the shareholders, 
                principals, or holders of a beneficial interest in the 
                offshore company.
                    ``(B) The names of any directors, officers, or 
                managing agent of the offshore company.
                    ``(C) The purpose and business of the offshore 
                company.
                    ``(D) The identity and value of any assets held or 
                owned by the offshore company.
                    ``(E) All criminal convictions, indictments or 
                similar formal legal accusations of criminal offenses, 
                and government or regulatory investigations of, and any 
                complaints concerning, any person identified in 
                subparagraph (A) or (B).
                    ``(F) Such other information as the Comptroller of 
                the Currency may require by regulation or order.
            ``(3) Update of report.--A national bank which submits a 
        report under paragraph (1) shall submit a supplemental report 
        whenever any change occurs with regard to any information 
        previously submitted to the Comptroller of the Currency under 
        this subsection.
            ``(4) Offshore company defined.--
                    ``(A) In general.--The term `offshore company' 
                means any company (as defined in section 2(b) of the 
                Bank Holding Company Act of 1956) which is a person of 
                a foreign country (as defined in section 3502(d) of the 
                Primary Dealers Act of 1988).
                    ``(B) Edge act and agreement corporations not 
                included.--The term `offshore company' shall not 
                include a company or corporation in which a national 
                bank holds an interest pursuant to section 25 or 25A of 
                the Federal Reserve Act.''.

SEC. 4. PROHIBITION ON RELATIONS BETWEEN NATIONAL BANKS AND CERTAIN 
              VIOLATORS.

    (a) In General.--Chapter one of title LXII of the Revised Statutes 
of the United States (12 U.S.C. 21 et seq.) is amended by adding at the 
end the following new section:

``SEC. 5156B. PROHIBITION ON RELATIONS BETWEEN NATIONAL BANKS AND 
              CERTAIN VIOLATORS.

    ``(a) Notice of Certain Violations Required.--A national bank shall 
submit a written notice in a timely manner with the Comptroller of the 
Currency disclosing any violation of any Federal, State, or foreign 
criminal law, banking or financial services law, or labor law, or 
any regulation prescribed under any such law, by any agent or affiliate 
of the national bank, or any other entity with which the national bank 
maintains a correspondent banking relationship, which has been finally 
adjudicated or determined by any adjudicative, regulatory, or other 
governmental authority.
    ``(b) Notice and Petition by Others.--In addition to a national 
bank, any other person or entity (including any Federal or State 
official, department, or agency) may--
            ``(1) file a notice with the Comptroller of the Currency 
        under subsection (a) of any violation described in such 
        subsection; and
            ``(2) petition the Comptroller to prohibit any further 
        relationship between the national bank and the person with 
        respect to whom such notice is filed.
    ``(c) Prohibition on Relationship.--
            ``(1) In general.--Upon receiving any notice under 
        subsection (a) or (b)(1) of any violation described in 
        subsection (a) by any agent or affiliate of the national bank, 
        or any other entity with which the national bank maintains a 
        correspondent banking relationship, the Comptroller of the 
        Currency shall serve on the national bank a written notice to 
        show cause why the Comptroller should not issue an order 
        prohibiting any further relationship between the national bank 
        and any such agent, affiliate, or other entity.
            ``(2) Contents of show cause notice.--Any notice served on 
        a national bank by the Comptroller of the Currency under 
        paragraph (1) shall--
                    ``(A) contain a statement of the facts constituting 
                grounds for the prohibition order; and
                    ``(B) fix the time and place for a hearing to 
                determine whether a prohibition order shall be issued 
                against the national bank.
            ``(3) Notice and opportunity for hearing by 3rd party.--If 
        any person or entity filed a petition with the Comptroller of 
        the Currency under subsection (b)(2) concerning the 
        relationship at issue in the notice served by the Comptroller 
        on the national bank, the Comptroller shall--
                    ``(A) provide, to such person or entity, a copy of 
                such notice; and
                    ``(B) provide such person or entity an opportunity 
                to be heard on the record at the hearing referred to in 
                such notice.
            ``(4) Cease and desist order.--If the Comptroller of the 
        Currency determines that--
                    ``(A) any violation of any Federal, State, or 
                foreign criminal law, banking or financial services 
                law, or labor law, or any regulation prescribed under 
                any such law, by any agent or affiliate of the national 
                bank, or any other entity with which the national bank 
                maintains a correspondent banking relationship, has 
                been finally adjudicated or determined by any 
                appropriate adjudicative, regulatory, or other 
                governmental authority; 
710
and
                    ``(B) good cause does not exist for continuing any 
                relationship between the national bank and such agent, 
                affiliate, or other entity,
        the Comptroller of the Currency may issue a cease and desist 
        order prohibiting the national bank from any further 
        involvement or relationship with such agent, affiliate, or 
        other entity, and requiring the national bank to dispose of any 
        direct or indirect ownership interest of the national bank in 
        any such agent, affiliate, or other entity.
            ``(5) Applicability of section 8 of federal deposit 
        insurance act.--The provisions and requirements of section 8 of 
        the Federal Deposit Insurance Act relating to any determination 
        concerning the issuance of a cease and desist order under such 
        section (except the standard), the scope and content of any 
        such order, any judicial review of any such determination, the 
        enforcement of any such order, and the penalties for violating 
        any such order shall apply with respect to any cease and desist 
        order issued under this section.
    ``(d) Foreign Banks.--Any foreign bank having a Federal branch or 
agency (as such terms are defined in section 1(b) of the International 
Banking Act of 1978) shall be treated as a national bank for purposes 
of this section.''.
    (b) Clerical Amendment.--The table of sections for chapter one of 
title LXII of the Revised Statutes of the United States is amended by 
inserting after the item relating to section 5156A the following new 
item:

``5156B. Prohibition on relations between national banks and certain 
                            violators.''.
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