S.Amdt. 3930

SA 3930, submitted by Mr. Reed and Ms. Warren, aims to change bill S. 875, which intends to stop the political weaponization of Federal banking agencies by removing reputational risk from the supervision of depository institutions.

This amendment adds exceptions to that prohibition. It allows Federal banking agencies to continue using reputational risk as a component of supervision if there is reasonable cause to believe a depository institution or an institution-affiliated party is involved in activities related to:

• Terrorist groups, such as Hamas, Hizbollah, Palestinian Islamic Jihad, the Al-Aqsa Martyrs Brigade, and Ansarallah.
• Criminal organizations, including Tren de Aragua, MS-13, and various cartels like Sinaloa, Jalisco Nueva Generacion, del Noreste, La Nueva Familia Michoacana, Golfo, and Carteles Unidos.
• Designated organizations, specifically foreign terrorist organizations or specially designated global terrorist organizations.
• State sponsors of terrorism, such as the governments of Iran, North Korea, Syria, and the Russian Federation.
• Agents or business partners of the organizations mentioned in the lists of cartels, terrorist organizations, or state sponsors of terrorism.
• Sex trafficking or soliciting sex from minors.
• Illicit conduct involving money laundering, drug trafficking, or transnational criminal organizations.
• Other threats, including criminal activity, illicit finance, or threats to the national security of the United States.