31 U.S.C. § 312 — Terrorism and financial intelligence

Page 20 TITLE 31—MONEY AND FINANCE § 312 Subsec. (b). Pub. L. 108–447, § 222(b)(1)(B), substituted ‘‘Terrorism and Financial Crimes’’ for ‘‘Enforcement’’. Statutory Notes and Related Subsidiaries CONSTRUCTION Pub. L. 108–177, title I, § 105(b), Dec. 13, 2003, 117 Stat. 2603, as amended by Pub. L. 111–259, title VIII, § 808, Oct. 7, 2010, 124 Stat. 2749, provided that: ‘‘Nothing in sec- tion 311 of title 31, United States Code (as amended by subsection (a)), or in section 313 of such title, shall be construed to alter the authorities and responsibilities of the Director of National Intelligence with respect to the Office of Intelligence and Analysis of the Depart- ment of the Treasury as an element of the intelligence community.’’ PILOT PROGRAM ON RECRUITMENT AND RETENTION IN OFFICE OF INTELLIGENCE AND ANALYSIS OF THE DE- PARTMENT OF THE TREASURY Pub. L. 117–103, div. X, title IV, § 416, Mar. 15, 2022, 136 Stat. 979, provided that: ‘‘(a) PILOT PROGRAM REQUIRED.—The Assistant Sec- retary for Intelligence and Analysis of the Department of the Treasury shall carry out a pilot program to as- sess the feasibility and advisability of using adjust- ments of rates of pay to recruit and retain staff for high-demand positions in the Office of Intelligence and Analysis of the Department of the Treasury. ‘‘(b) DURATION.—The Assistant Secretary shall carry out the pilot program required by subsection (a) during the 4-year period beginning on the date of the enact- ment of this Act [Mar. 15, 2022]. ‘‘(c) ADDITIONAL PAY.—Under the pilot program re- quired by subsection (a), the Assistant Secretary shall, notwithstanding any provision of title 5, United States Code, governing the rates of pay or classification of employees in the executive branch, prescribe the rate of basic pay for financial and cyber intelligence analyst positions designated under subsection (d) at rates— ‘‘(1) not greater than 130 percent of the maximum basic rate of pay and locality pay for which such posi- tions would otherwise be eligible; and ‘‘(2) not greater than the rate of basic pay payable for level II of the Executive Schedule under section 5313 of title 5, United States Code. ‘‘(d) DESIGNATED POSITIONS.— ‘‘(1) IN GENERAL.—Subject to paragraph (2), under the pilot program required by subsection (a), the As- sistant Secretary shall designate not fewer than 5 percent of the total number of positions in the Office, including positions to be filled by new hires, as finan- cial or cyber intelligence analyst positions eligible for the additional pay under subsection (c). ‘‘(2) CURRENT EMPLOYEES.—The Assistant Secretary may designate under paragraph (1) a position filled by an employee who was employed in that position on the day before the date of the enactment of this Act only if the employee was in the top one-third of per- formance rankings for the position within the Office for the duration of the 2-year period ending on the date of the enactment of this Act. ‘‘(e) BRIEFING ON THE PILOT PROGRAM.—Not later than 180 days after the date of the enactment of this Act and not less frequently than once each year thereafter for the duration of the period specified in subsection (b), the Assistant Secretary shall provide to the appro- priate congressional committees and the Director of National Intelligence a briefing on the pilot program required by subsection (a). ‘‘(f) REPORT ON THE PILOT PROGRAM.—Not later than 180 days before the last day of the period specified in subsection (b), the Assistant Secretary shall submit to the appropriate congressional committees, the Com- mittee on Homeland Security and Governmental Af- fairs of the Senate, the Committee on Oversight and Reform [now Committee on Oversight and Account- ability] of the House of Representatives, and the Direc- tor of National Intelligence a report on the effective- ness of the pilot program required by subsection (a) and recommendations as to whether such pilot program should be extended, modified, or ended. ‘‘(g) RECOMMENDATIONS OF DIRECTOR OF NATIONAL IN- TELLIGENCE.—Not later than 3 years after the date of the enactment of this Act, the Director of National In- telligence shall submit to the appropriate congres- sional committees recommendations as to— ‘‘(1) which, if any, other elements of the intel- ligence community would benefit from a program similar to the pilot program required by subsection (a); and ‘‘(2) what, if any, modifications the Director would recommend for such elements. ‘‘(h) RETENTION OF PRESCRIBED RATES OF PAY AFTER TERMINATION OF PILOT PROGRAM.—After the conclusion of the period specified in subsection (b), the Assistant Secretary may continue to pay a person, who received pay during such period pursuant to a rate of basic pay prescribed under subsection (c), at a rate of basic pay not to exceed the rate of basic pay that was in effect for the person pursuant to such subsection on the day before the last day of such period, until such time as the applicable rate of basic pay for the person under the General Schedule exceeds the rate of basic pay that was so in effect under subsection (c). ‘‘(i) APPROPRIATE CONGRESSIONAL COMMITTEES DE- FINED.—In this section, the term ‘appropriate congres- sional committees’ means— ‘‘(1) the congressional intelligence committees; and ‘‘(2) the Subcommittees on Financial Services and General Government of the Committees on Appro- priations of the House of Representatives and the Senate.’’ [For definitions of ‘‘congressional intelligence com- mittees’’ and ‘‘intelligence community’’ as used in sec- tion 416 of div. X of Pub. L. 117–103, set out above, see section 2 of div. X of Pub. L. 117–103, set out as a note under section 3003 of Title 50, War and National De- fense.] § 312. Terrorism and financial intelligence (a) OFFICE OF TERRORISM AND FINANCIAL INTEL- LIGENCE.— (1) ESTABLISHMENT.—There is established within the Department of the Treasury the Of- fice of Terrorism and Financial Intelligence (in this section referred to as ‘‘OTFI’’), which shall be the successor to any such office in ex- istence on the date of enactment of this sec- tion. (2) LEADERSHIP.— (A) UNDERSECRETARY.—There is estab- lished within the Department of the Treas- ury, the Office of the Undersecretary for Terrorism and Financial Crimes, who shall serve as the head of the OTFI, and shall re- port to the Secretary of the Treasury through the Deputy Secretary of the Treas- ury. The Office of the Undersecretary for Terrorism and Financial Crimes shall be the successor to the Office of the Undersecretary for Enforcement. (B) APPOINTMENT.—The Undersecretary for Terrorism and Financial Crimes shall be ap- pointed by the President, by and with the advice and consent of the Senate. (3) ASSISTANT SECRETARY FOR TERRORIST FI- NANCING.— (A) ESTABLISHMENT.—There is established within the OTFI the position of Assistant Secretary for Terrorist Financing. (B) APPOINTMENT.—The Assistant Sec- retary for Terrorist Financing shall be ap- pointed by the President, by and with the advice and consent of the Senate. Page 21 TITLE 31—MONEY AND FINANCE § 312 (C) DUTIES.—The Assistant Secretary for Terrorist Financing shall be responsible for formulating and coordinating the counter terrorist financing and anti-money laun- dering efforts of the Department of the Treasury, and shall report directly to the Undersecretary for Terrorism and Financial Crimes. (4) FUNCTIONS.—The functions of the OTFI include providing policy, strategic, and oper- ational direction to the Department on issues relating to— (A) implementation of titles I and II of the Bank Secrecy Act; (B) United States economic sanctions pro- grams; (C) combating terrorist financing; (D) combating financial crimes, including money laundering, counterfeiting, and other offenses threatening the integrity of the banking and financial systems; (E) combating illicit financing relating to human trafficking; (F) other enforcement matters; (G) those intelligence analysis and coordi- nation functions described in subsection (b); and (H) the security functions and programs of the Department of the Treasury. (5) REPORTS TO CONGRESS ON PROPOSED MEAS- URES.—The Undersecretary for Terrorism and Financial Crimes and the Assistant Secretary for Terrorist Financing shall report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representa- tives not later than 72 hours after proposing by rule, regulation, order, or otherwise, any measure to reorganize the structure of the De- partment for combatting money laundering and terrorist financing, before any such pro- posal becomes effective. (6) OTHER OFFICES WITHIN OTFI.—Notwith- standing any other provision of law, the fol- lowing offices of the Department of the Treas- ury shall be within the OTFI: (A) The Office of the Assistant Secretary for Intelligence and Analysis, which shall re- port directly to the Undersecretary for Ter- rorism and Financial Crimes. (B) The Office of the Assistant Secretary for Terrorist Financing, which shall report directly to the Undersecretary for Terrorism and Financial Crimes. (C) The Office of Foreign Assets Control (in this section referred to as the ‘‘OFAC’’), which shall report directly to the Undersec- retary for Terrorism and Financial Crimes. (D) The Executive Office for Asset For- feiture, which shall report to the Undersec- retary for Terrorism and Financial Crimes. (E) The Office of Intelligence and Analysis (in this section referred to as the ‘‘OIA’’), which shall report to the Assistant Sec- retary for Intelligence and Analysis. (F) The Office of Terrorist Financing, which shall report to the Assistant Sec- retary for Terrorist Financing. (7) FINCEN.— (A) REPORTING TO UNDERSECRETARY.—The Financial Crimes Enforcement Network (in this section referred to as ‘‘FinCEN’’), a bu- reau of the Department of the Treasury, shall report to the Undersecretary for Ter- rorism and Financial Crimes. The Undersec- retary for Terrorism and Financial Crimes may not redelegate its reporting authority over FinCEN. (B) OFFICE OF COMPLIANCE.—There is estab- lished within FinCEN, an Office of Compli- ance. (8) INTERAGENCY COORDINATION.—The Sec- retary of the Treasury, after consultation with the Undersecretary for Terrorism and Finan- cial Crimes, shall designate an office within the OTFI that shall coordinate efforts to com- bat the illicit financing of human trafficking with— (A) other offices of the Department of the Treasury; (B) other Federal agencies, including— (i) the Office to Monitor and Combat Trafficking in Persons of the Department of State; and (ii) the Interagency Task Force to Mon- itor and Combat Trafficking; (C) State and local law enforcement agen- cies; and (D) foreign governments. (b) OFFICE OF INTELLIGENCE AND ANALYSIS.— (1) ASSISTANT SECRETARY FOR INTELLIGENCE AND ANALYSIS.—The Assistant Secretary for Intelligence and Analysis shall head the OIA. (2) RESPONSIBILITIES.—The OIA shall be re- sponsible for the receipt, analysis, collation, and dissemination of intelligence and counter- intelligence information related to the oper- ations and responsibilities of the entire De- partment of the Treasury, including all com- ponents and bureaus of the Department. (3) PRIMARY FUNCTIONS.—The primary func- tions of the OIA are— (A) to build a robust analytical capability on terrorist finance by coordinating and overseeing work involving intelligence ana- lysts in all components of the Department of the Treasury, focusing on the highest prior- ities of the Department, as well as ensuring that the existing intelligence needs of the OFAC and FinCEN are met; and (B) to provide intelligence support to sen- ior officials of the Department on a wide range of international economic and other relevant issues. (4) OTHER FUNCTIONS AND DUTIES.—The OIA shall— (A) carry out the intelligence support functions that are assigned, to the Office of Intelligence Support under section 311 (pur- suant to section 105 of the Intelligence Au- thorization Act for Fiscal Year 2004); (B) serve in a liaison capacity with the in- telligence community; and (C) represent the Department in various intelligence related activities. (5) DUTIES OF THE ASSISTANT SECRETARY.— The Assistant Secretary for Intelligence and Analysis shall serve as the Senior Officer In- telligence Community, and shall represent the Department in intelligence community fora, Page 22 TITLE 31—MONEY AND FINANCE § 313 including the National Foreign Intelligence Board committees and the Intelligence Com- munity Management Staff. (c) DELEGATION.—To the extent that any au- thorities, powers, and responsibilities over en- forcement matters delegated to the Undersecre- tary for Terrorism and Financial Crimes, or the positions of Assistant Secretary for Terrorism and Financial Crimes, Assistant Secretary for Enforcement and Operations, or Deputy Assist- ant Secretary for Terrorist Financing and Fi- nancial Crimes, have not been transferred to the Department of Homeland Security, the Depart- ment of Justice, or the Assistant Secretary for Tax Policy (related to the customs revenue functions of the Bureau of Alcohol and Tobacco Tax and Trade), those remaining authorities, powers, and responsibilities are delegated to the Undersecretary for Terrorism and Financial Crimes. (d) DESIGNATION AS ENFORCEMENT ORGANIZA- TION.—The Office of Terrorism and Financial In- telligence (including any components thereof) is designated as a law enforcement organization of the Department of the Treasury for purposes of section 9705 of title 31, United States Code, and other relevant authorities. (e) USE OF EXISTING RESOURCES.—The Sec- retary may employ personnel, facilities, and other Department of the Treasury resources available to the Secretary on the date of enact- ment of this section in carrying out this section, except as otherwise prohibited by law. (f) REFERENCES.—References in this section to the ‘‘Secretary’’, ‘‘Undersecretary’’, ‘‘Deputy Secretary’’, ‘‘Deputy Assistant Secretary’’, ‘‘Of- fice’’, ‘‘Assistant Secretary’’, and ‘‘Department’’ are references to positions and offices of the De- partment of the Treasury, unless otherwise specified. (g) SPECIAL HIRING AUTHORITY.— (1) IN GENERAL.—The Secretary of the Treas- ury may appoint, without regard to the provi- sions of sections 3309 through 3318 of title 5, candidates directly to positions in the com- petitive service, as defined in section 2102 of that title, in the OTFI. (2) PRIMARY RESPONSIBILITIES.—The primary responsibility of candidates appointed under paragraph (1) shall be to provide substantive support in support of the duties described in subparagraphs (A) through (G) of subsection (a)(4). (h) DEPLOYMENT OF STAFF.—The Secretary of the Treasury may detail, without regard to the provisions of section 300.301 of title 5, Code of Federal Regulations, any employee in the OTFI to any position in the OTFI for which the Sec- retary has determined there is a need. (Added Pub. L. 108–447, div. H, title II, § 222(a), Dec. 8, 2004, 118 Stat. 3242, § 313; renumbered § 312, Pub. L. 111–203, title V, § 502(a)(2), July 21, 2010, 124 Stat. 1580; amended Pub. L. 114–22, title I, § 105(c)(2)(A)(ii)(I), May 29, 2015, 129 Stat. 237; Pub. L. 116–92, div. F, title LXXI, § 7153, Dec. 20, 2019, 133 Stat. 2259; Pub. L. 116–283, div. F, title LXI, § 6105(b), Jan. 1, 2021, 134 Stat. 4555.) Editorial Notes REFERENCES IN TEXT The date of enactment of this section, referred to in subsecs. (a)(1) and (e), is the date of the enactment of Pub. L. 108–447, which was approved Dec. 8, 2004. For the Bank Secrecy Act, referred to in subsec. (a)(4)(A), see Short Title note set out under section 1951 of Title 12, Banks and Banking, and Tables. Section 105 of the Intelligence Authorization Act for Fiscal Year 2004, referred to in subsec. (b)(4)(A), is sec- tion 105 of Pub. L. 108–177, title I, Dec. 13, 2003, 117 Stat. 2603, which enacted section 311 of this title. For com- plete classification of section 105 to the Code, see Ta- bles. PRIOR PROVISIONS A prior section 312 was renumbered section 315 of this title. AMENDMENTS 2021—Subsecs. (g), (h). Pub. L. 116–283 added subsecs. (g) and (h). 2019—Subsec. (a)(4)(E) to (H). Pub. L. 116–92, § 7153(a), added subpar. (E) and redesignated former subpars. (E) to (G) as (F) to (H), respectively. Subsec. (a)(8). Pub. L. 116–92, § 7153(b), added par. (8). 2015—Subsec. (d). Pub. L. 114–22 substituted ‘‘section 9705’’ for ‘‘section 9703’’. 2010—Pub. L. 111–203 renumbered section 313 of this title as this section. Statutory Notes and Related Subsidiaries CHANGE OF NAME Reference to Community Management Staff deemed to be a reference to the staff of the Office of the Direc- tor of National Intelligence, see section 1081(c) of Pub. L. 108–458, set out as a note under section 3001 of Title 50, War and National Defense. EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking. § 313. Federal Insurance Office (a) ESTABLISHMENT.—There is established within the Department of the Treasury the Fed- eral Insurance Office. (b) LEADERSHIP.—The Office shall be headed by a Director, who shall be appointed by the Sec- retary of the Treasury. The position of Director shall be a career reserved position in the Senior Executive Service, as that position is defined under section 3132 of title 5, United States Code. (c) FUNCTIONS.— (1) AUTHORITY PURSUANT TO DIRECTION OF SECRETARY.—The Office, pursuant to the direc- tion of the Secretary, shall have the author- ity— (A) to monitor all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis in the insur- ance industry or the United States financial system; (B) to monitor the extent to which tradi- tionally underserved communities and con- sumers, minorities (as such term is defined in section 1204(c) of the Financial Institu- tions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note)), and low-