BSA, NFIP Reform Measures Advance from Financial Services Committee

The House Financial Services Committee Wednesday advanced credit union-supported bills that would reform aspects of the Bank Secrecy Act (BSA) and National Flood Insurance Program (NFIP) and encourage homebuyers to participate in financial education programs.

The committee mark-up included eight bills which now await consideration by the full House.

The Corporate Transparency Act (H.R. 2513) would help financial institutions comply with the new customer due diligence rule by requiring companies to disclose their true "beneficial owners" to the Financial Crimes Enforcement Network. This information would then be used to create a database of beneficial ownership information that would be available to law enforcement agencies and financial institutions.

The committee previously advanced a bill related to thresholds for suspicious activity (SAR) and currency transaction (CTR) reports. A bipartisan group of senators is also working on draft legislation related to BSA issues.

The National Flood Insurance Program Reauthorization Act (H.R. 3167) would reauthorize the program for five years. It also includes improvements and takes steps to continue the financial solvency of the program to maintain market stability.

The Financial Literacy Act (H.R. 2162) would give first-time homebuyers who participate in a financial literacy program a discount on Federal Housing Administration mortgage insurance premium payments.