SUSPICIOUS ACTIVITY REPORTS H.B. 4997-5000: COMMITTEE SUMMARY
House Bills 4997 through 5000 (as passed by the House)
Sponsor: Representative Tupac Hunter (H.B. 4997)
Representative Ed Clemente (H.B. 4998)
Representative Joe Hune (H.B. 4999)
Representative Kevin Green (H.B. 5000)
House Committee: Banking and Financial Services
Senate Committee: Banking and Financial Institutions
Date Completed: 10-11-05
CONTENT
House Bills 4997 through 5000 would amend various statutes to repeal sections that require banks, domestic credit unions, savings banks, and savings and loan associations that file a suspicious activity report with an agency of the Federal government to file a copy of the report with the Department of State Police within 24 hours.
House Bill 4997 would amend the Savings Bank Act; House Bill 4998 would amend the Savings and Loan Act; House Bill 4999 would amend the Credit Union Act; and House Bill 5000 would amend the Banking Code.
MCL 487.3514 (H.B. 4997)
491.1135 (H.B. 4998)
490.307 (H.B. 4999)
487.14406 (H.B. 5000)
BACKGROUND
Shortly after the September 11, 2001, terrorist attacks on the World Trade Center in New York City and the Pentagon in suburban Washington, D.C., Congress passed and President George W. Bush signed into law the USA Patriot Act. Among other things, the Patriot Act enacted Federal banking law amendments relating to all of the following:
-- Relationships between foreign people and foreign business entities and U.S. financial institutions.
-- Verification of the identity of account customers.
-- Establishment of anti-money laundering programs (including mandatory reporting requirements) for financial institutions.
-- Penalty increases for financial crimes.
Under those provisions, financial institutions are required to file certain suspicious activity reports with the Federal government. In 2002, Michigan legislation was enacted to require financial institutions to file with the Department of State Police, within 24 hours, a copy of a suspicious activity report that the financial institutions were required to file under Federal law.
Legislative Analyst: Patrick Affholter
FISCAL IMPACT
The bill would have no fiscal impact on State or local government.
Fiscal Analyst: Bruce Baker
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb4997-5000/0506