12 U.S.C. § 3422 — Applicability to Securities and Exchange

Page 1551 TITLE 12—BANKS AND BANKING § 3422 1 So in original. § 3420. Grand jury information; notification of certain persons prohibited (a) Financial records about a customer ob- tained from a financial institution pursuant to a subpena issued under the authority of a Federal grand jury— (1) shall be returned and actually presented to the grand jury unless the volume of such records makes such return and actual presen- tation impractical in which case the grand jury shall be provided with a description of the contents of the records.; 1 (2) shall be used only for the purpose of con- sidering whether to issue an indictment or presentment by that grand jury, or of pros- ecuting a crime for which that indictment or presentment is issued, or for a purpose author- ized by rule 6(e) of the Federal Rules of Crimi- nal Procedure, or for a purpose authorized by section 3412(a) of this title; (3) shall be destroyed or returned to the fi- nancial institution if not used for one of the purposes specified in paragraph (2); and (4) shall not be maintained, or a description of the contents of such records shall not be maintained by any Government authority other than in the sealed records of the grand jury, unless such record has been used in the prosecution of a crime for which the grand jury issued an indictment or presentment or for a purpose authorized by rule 6(e) of the Federal Rules of Criminal Procedure. (b)(1) No officer, director, partner, employee, or shareholder of, or agent or attorney for, a fi- nancial institution shall, directly or indirectly, notify any person named in a grand jury sub- poena served on such institution in connection with an investigation relating to a possible— (A) crime against any financial institution or supervisory agency or crime involving a violation of the Controlled Substance Act [21 U.S.C. 801 et seq.], the Controlled Substances Import and Export Act [21 U.S.C. 951 et seq.], section 1956, 1957, or 1960 of title 18, sections 5313, 5316, 5322, 5324, 5331, and 5332 of title 31, or section 6050I of title 26; or (B) conspiracy to commit such a crime, about the existence or contents of such sub- poena, or information that has been furnished to the grand jury in response to such subpoena. (2) Section 1818 of this title and section 1786(k)(2) of this title shall apply to any viola- tion of this subsection. (Pub. L. 95–630, title XI, § 1120, Nov. 10, 1978, 92 Stat. 3709; Pub. L. 100–690, title VI, § 6186(e), Nov. 18, 1988, 102 Stat. 4358; Pub. L. 101–73, title IX, § 943, Aug. 9, 1989, 103 Stat. 497; Pub. L. 102–550, title XV, § 1532, Oct. 28, 1992, 106 Stat. 4066; Pub. L. 107–56, title III, § 358(f)(3), Oct. 26, 2001, 115 Stat. 327; Pub. L. 116–283, div. F, title LXIII, § 6308(d), Jan. 1, 2021, 134 Stat. 4594.) Editorial Notes REFERENCES IN TEXT Rule 6(e) of the Federal Rules of Criminal Procedure, referred to in subsec. (a)(2), (4), is set out in the Appen- dix to Title 18, Crimes and Criminal Procedure. The Controlled Substance Act, referred to in subsec. (b)(1)(A), probably means the Controlled Substances Act, which is title II of Pub. L. 91–513, Oct. 27, 1970, 84 Stat. 1242, and which is classified principally to sub- chapter I (§ 801 et seq.) of chapter 13 of Title 21, Food and Drugs. For complete classification of this Act to the Code, see Short Title note set out under section 801 of Title 21 and Tables. The Controlled Substances Import and Export Act, referred to in subsec. (b)(1)(A), is title III of Pub. L. 91–513, Oct. 27, 1970, 84 Stat. 1285, as amended, which is classified principally to subchapter II (§ 951 et seq.) of chapter 13 of Title 21. For complete classification of this Act to the Code, see Short Title note set out under section 951 of Title 21 and Tables. AMENDMENTS 2021—Subsec. (b)(1)(A). Pub. L. 116–283 substituted ‘‘, 1957, or 1960 of title 18’’ for ‘‘or 1957 of title 18’’ and ‘‘, 5322, 5324, 5331, and 5332 of title 31’’ for ‘‘and 5324 of title 31’’. 2001—Subsec. (a)(2). Pub. L. 107–56 inserted ‘‘, or for a purpose authorized by section 3412(a) of this title’’ be- fore semicolon at end. 1992—Subsec. (b)(1)(A). Pub. L. 102–550 inserted before semicolon ‘‘or crime involving a violation of the Con- trolled Substance Act, the Controlled Substances Im- port and Export Act, section 1956 or 1957 of title 18, sec- tions 5313, 5316 and 5324 of title 31, or section 6050I of title 26’’. 1989—Pub. L. 101–73 designated existing provisions as subsec. (a) and added subsec. (b). 1988—Par. (1). Pub. L. 100–690 inserted ‘‘unless the vol- ume of such records makes such return and actual pres- entation impractical in which case the grand jury shall be provided with a description of the contents of the records.’’ before semicolon at end. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2001 AMENDMENT Amendment by Pub. L. 107–56 applicable with respect to reports filed or records maintained on, before, or after Oct. 26, 2001, see section 358(h) of Pub. L. 107–56, set out as a note under section 1829b of this title. EFFECTIVE DATE Section effective upon the expiration of 120 days after Nov. 10, 1978, see section 2101 of Pub. L. 95–630, set out as a note under section 375b of this title. § 3421. Repealed. Pub. L. 104–66, title III, § 3001(d), Dec. 21, 1995, 109 Stat. 734 Section, Pub. L. 95–630, title XI, § 1121, Nov. 10, 1978, 92 Stat. 3710, related to reporting requirements. § 3422. Applicability to Securities and Exchange Commission Except as provided in the Securities Exchange Act of 1934 [15 U.S.C. 78a et seq.], this chapter shall apply with respect to the Securities and Exchange Commission. (Pub. L. 95–630, title XI, § 1122, Nov. 10, 1978, 92 Stat. 3710; Pub. L. 96–433, § 2, Oct. 10, 1980, 94 Stat. 1855.) Editorial Notes REFERENCES IN TEXT The Securities Exchange Act of 1934, referred to in text, is act June 6, 1934, ch. 404, 48 Stat. 881, which is classified principally to chapter 2B (§ 78a et seq.) of Title 15, Commerce and Trade. For complete classifica- tion of this Act to the Code, see section 78a of Title 15 and Tables. Page 1552 TITLE 12—BANKS AND BANKING § 3423 AMENDMENTS 1980—Pub. L. 96–433 substituted provision making this chapter applicable with respect to the Commission, ex- cept as provided in the Securities Exchange Act of 1934, for provision exempting the Commission from this chapter for a period of two years from November 10, 1978. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–433 effective Nov. 10, 1980, see section 5(b) of Pub. L. 96–433, set out as a note under section 78u of Title 15, Commerce and Trade. EFFECTIVE DATE Section effective upon the expiration of 120 days after Nov. 10, 1978, see section 2101 of Pub. L. 95–630, set out as a note under section 375b of this title. § 3423. Immunity from suit for disclosure of fi- nancial exploitation of senior citizens (a) Immunity (1) Definitions In this section— (A) the term ‘‘Bank Secrecy Act officer’’ means an individual responsible for ensuring compliance with the requirements mandated by subchapter II of chapter 53 of title 31 (commonly known as the ‘‘Bank Secrecy Act’’); (B) the term ‘‘broker-dealer’’ means a broker and a dealer, as those terms are de- fined in section 78c(a) of title 15; (C) the term ‘‘covered agency’’ means— (i) a State financial regulatory agency, including a State securities or law enforce- ment authority and a State insurance reg- ulator; (ii) each of the Federal agencies rep- resented in the membership of the Finan- cial Institutions Examination Council es- tablished under section 3303 of this title; (iii) a securities association registered under section 78o–3 of title 15; (iv) the Securities and Exchange Com- mission; (v) a law enforcement agency; or (vi) a State or local agency responsible for administering adult protective service laws; (D) the term ‘‘covered financial institu- tion’’ means— (i) a credit union; (ii) a depository institution; (iii) an investment adviser; (iv) a broker-dealer; (v) an insurance company; (vi) an insurance agency; or (vii) a transfer agent; (E) the term ‘‘credit union’’ has the mean- ing given the term in section 5301 of this title; (F) the term ‘‘depository institution’’ has the meaning given the term in section 1813(c) of this title; (G) the term ‘‘exploitation’’ means the fraudulent or otherwise illegal, unauthor- ized, or improper act or process of an indi- vidual, including a caregiver or a fiduciary, that— (i) uses the resources of a senior citizen for monetary or personal benefit, profit, or gain; or (ii) results in depriving a senior citizen of rightful access to or use of benefits, re- sources, belongings, or assets; (H) the term ‘‘insurance agency’’ means any business entity that sells, solicits, or ne- gotiates insurance coverage; (I) the term ‘‘insurance company’’ has the meaning given the term in section 80a–2(a) of title 15; (J) the term ‘‘insurance producer’’ means an individual who is required under State law to be licensed in order to sell, solicit, or negotiate insurance coverage; (K) the term ‘‘investment adviser’’ has the meaning given the term in section 80b–2(a) of this title; (L) the term ‘‘investment adviser rep- resentative’’ means an individual who— (i) is employed by, or associated with, an investment adviser; and (ii) does not perform solely clerical or ministerial acts; (M) the term ‘‘registered representative’’ means an individual who represents a broker-dealer in effecting or attempting to effect a purchase or sale of securities; (N) the term ‘‘senior citizen’’ means an in- dividual who is not younger than 65 years of age; (O) the term ‘‘State’’ means each of the several States, the District of Columbia, and any territory or possession of the United States; (P) the term ‘‘State insurance regulator’’ has the meaning given the term in section 6735 of title 15; (Q) the term ‘‘State securities or law en- forcement authority’’ has the meaning given the term in section 78x(f)(4) of title 15; and (R) the term ‘‘transfer agent’’ has the meaning given the term in section 78c(a) of title 15. (2) Immunity from suit (A) Immunity for individuals An individual who has received the train- ing described in subsection (b) shall not be liable, including in any civil or administra- tive proceeding, for disclosing the suspected exploitation of a senior citizen to a covered agency if the individual, at the time of the disclosure— (i) served as a supervisor or in a compli- ance or legal function (including as a Bank Secrecy Act officer) for, or, in the case of a registered representative, investment ad- viser representative, or insurance pro- ducer, was affiliated or associated with, a covered financial institution; and (ii) made the disclosure— (I) in good faith; and (II) with reasonable care. (B) Immunity for covered financial institu- tions A covered financial institution shall not be liable, including in any civil or adminis-