FOREIGN BANKS.

SEC. 2214. FOREIGN BANKS. (a) Examination of Branches and Agencies by Board.— Section 7(c) of the International Banking Act of 1978 (12 U.S.C. 3105(c)) is amended— (1) by striking “(c)” and inserting the following: “(c) Foreign Bank Examinations and Reporting.—”; (2) in paragraph (1)(B), by adding at the end the following new clause: “(iii) Avoidance of duplication.— In exercising its authority under this paragraph, the Board shall take all reasonable measures to reduce burden and avoid unnecessary duplication of examinations.”; (3) by striking subparagraph (C) of paragraph (1) and inserting the following: “(C) On-site examination.— Each Federal branch or agency, and each State branch or agency, of a foreign 110 STAT. 3009–412bank shall be subject to on-site examination by an appropriate Federal banking agency or State bank supervisor as frequently as would a national bank or a State bank, respectively, by the appropriate Federal banking agency.”; and (4) in paragraph (1)(D), by inserting before the period at the end the following: “, only to the same extent that fees are collected by the Board for examination of any State member bank”. (b) Establishment of Foreign Bank Offices in the United States.— Section 7(d) of the International Banking Act of 1978 (12 U.S.C. 3105(d)) is amended— (1) in paragraph (2), by striking “The Board” and inserting “Except as provided in paragraph (6), the Board”; (2) in paragraph (5), by striking “Consistent with the standards for approval in paragraph (2), the”; and inserting “The”; and (3) by adding at the end the following new paragraphs: “(6) Exception.— “(A) In general.— If the Board is unable to find, under paragraph (2), that a foreign bank is subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in its home country, the Board may nevertheless approve an application by such foreign bank under paragraph (1) if— “(i) the appropriate authorities in the home country of the foreign bank are actively working to establish arrangements for the consolidated supervision of such bank; and “(ii) all other factors are consistent with approval. “(B) Other considerations.— In deciding whether to use its discretion under subparagraph (A), the Board shall also consider whether the foreign bank has adopted and implements procedures to combat money laundering. The Board may also take into account whether the home country of the foreign bank is developing a legal regime to address money laundering or is participating in multilateral efforts to combat money laundering. “(C) Additional conditions.— In approving an application under this paragraph, the Board, after requesting and taking into consideration the views of the appropriate State bank supervisor or the Comptroller of the Currency, as the case may be, may impose such conditions or restrictions relating to the activities or business operations of the proposed branch, agency, or commercial lending company subsidiary, including restrictions on sources of funding, as are considered appropriate. The Board shall coordinate with the appropriate State bank supervisor or the Comptroller of the Currency, as appropriate, in the implementation of such conditions or restrictions. “(D) Modification of conditions.— Any condition or restriction imposed by the Board in connection with the approval of an application under authority of this paragraph may be modified or withdrawn. “(7) Time period for board action.— “(A) Final action.— The Board shall take final action on any application under paragraph (1) not later than 110 STAT. 3009–413180 days after receipt of the application, except that the Board may extend for an additional 180 days the period within which to take final action on such application after providing notice of, and the reasons for, the extension to the applicant foreign bank and any appropriate State bank supervisor or the Comptroller of the Currency, as appropriate. “(B) Failure to submit information.— The Board may deny any application if it does not receive information requested from the applicant foreign bank or appropriate authorities in the home country of the foreign bank in sufficient time to permit the Board to evaluate such information adequately within the time periods for final action set forth in subparagraph (A). “(C) Waiver.— A foreign bank may waive the applicability of this paragraph with respect to any application under paragraph (1).”. (c) Termination of Foreign Bank Offices in the United States.— Section 7(e)(1)(A) of the International Banking Act of 1978 (12 U.S.C. 3105(e)(1)(A)) is amended— (1) by inserting “(i)” after “(A)”; (2) by striking “or” at the end said inserting “and”; and (3) by adding at the end the following new clause: “(ii) the appropriate authorities in the home country of the foreign bank are not making demonstrable progress in establishing arrangements for the comprehensive supervision or regulation of such foreign bank on a consolidated basis; or”.