Bill Summary
The Strengthening Cybersecurity for the Financial Sector Act of 2024 is a bill that aims to amend the Federal Credit Union Act in order to enhance cybersecurity measures for financial institutions. This includes modifying requirements for the regulation and examination of credit union organizations and their service providers. This bill also gives the Director of the Federal Housing Finance Agency the authority to regulate the provision of services to government-sponsored enterprises and Federal Home Loan Banks. Additionally, it requires that any activity performed for a regulated entity by a service provider, whether on or off the entity's premises, must be subject to regulation and examination by the Director. This bill also clarifies that states still have the power to regulate and examine entities under this new regulation.
Possible Impacts
1. The Strengthening Cybersecurity for the Financial Sector Act of 2024 could require credit unions and service providers to undergo stricter regulation and examination processes, potentially increasing costs and bureaucracy for these organizations.
2. The amendment to the Federal Credit Union Act could affect how credit unions are able to provide services to their members, potentially limiting their ability to offer certain products or services.
3. The new section added to the Federal Housing Enterprises Financial Safety and Soundness Act could give the Director of the Federal Housing Finance Agency more control over the regulation of service providers, potentially impacting the way these providers operate and the services they offer.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7036 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 7036
To amend the Federal Credit Union Act to modify requirements relating
to the regulation and examination of credit union organizations and
service providers, to provide the Director of the Federal Housing
Finance Agency with the authority to regulate the provision of services
provided to the Government-sponsored enterprises and Federal Home Loan
Banks, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
January 18, 2024
Mr. Foster introduced the following bill; which was referred to the
Committee on Financial Services
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A BILL
To amend the Federal Credit Union Act to modify requirements relating
to the regulation and examination of credit union organizations and
service providers, to provide the Director of the Federal Housing
Finance Agency with the authority to regulate the provision of services
provided to the Government-sponsored enterprises and Federal Home Loan
Banks, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Strengthening Cybersecurity for the
Financial Sector Act of 2024''.
SEC. 2. REGULATION AND EXAMINATION OF CREDIT UNION ORGANIZATIONS AND
SERVICE PROVIDERS.
Section 206A of the Federal Credit Union Act (12 U.S.C. 1786a) is
amended--
(1) in subsection (a)(1), by striking ``that'' and
inserting ``an'';
(2) in subsection (c)(2), by inserting after ``shall notify
the Board'' the following: ``, in a manner and method
prescribed by the Board,''; and
(3) by striking subsection (f).
SEC. 3. REGULATION OF SERVICE PROVIDERS BY THE FEDERAL HOUSING FINANCE
AGENCY.
Subpart A of part 2 of subtitle A of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4541
et seq.) is amended by adding at the end the following new section:
``SEC. 1329. REGULATION AND EXAMINATION OF CERTAIN SERVICE PROVIDERS.
``(a) In General.--Whenever a regulated entity or the Office of
Finance causes to be performed for itself, by contract or otherwise,
any activity that is permissible for the regulated entity or the Office
of Finance, whether on or off its premises--
``(1) such performance shall be subject to regulation and
examination by the Director to the same extent as if such
activity were being performed by such entity or Office itself
on its own premises; and
``(2) the regulated entity or Office of Finance shall
notify the Director of the existence of the service
relationship within thirty days after the making of such
service contract or the performance of the activity by the
service provider, whichever occurs first.
``(b) Rule of Construction.--Nothing in this subpart may be
construed as preventing a State from exercising any powers or
jurisdiction of the State with respect to persons or entities subject
to regulation and examination by the Director pursuant to this
section.''.
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