HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 587 Pub. Rec./Access to Financial Institution Customer Accounts
SPONSOR(S): Commerce Committee, Rommel and others
TIED BILLS: CS/CS/HB 585 IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 18 Y, 0 N Fletcher Lloyd
2) Ethics, Elections & Open Government 14 Y, 0 N Rando Toliver
Subcommittee
3) Commerce Committee 17 Y, 0 N, As CS Fletcher Hamon
SUMMARY ANALYSIS
The federal Bank Secrecy Act (BSA) establishes reporting, recordkeeping, and related requirements for federal
and state-chartered financial institutions to help detect and prevent money laundering. Under the BSA,
financial institutions are required to report suspicious activity that might signify money laundering, tax evasion,
or other criminal activities. These types of reports are known as “suspicious activity reports” (SARs) and are
filed with the Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury.
Florida’s codification of the BSA is the Florida Control of Money-Laundering and Terrorist Financing in
Financial Institutions Act (Act). The Act requires financial institutions to submit to the Office of Financial
Regulation (OFR) certain reports and maintain certain records of customers, accounts, and transactions
involving currency or monetary instruments or suspicious activities in accordance with the policies of the BSA.
CS/CS/HB 585, to which this bill is linked, allows a customer or member of a financial institution who
reasonably believes a financial institution has terminated, suspended, or taken similar action restricting access
to the customer’s or member’s account in bad faith to file a complaint with OFR. CS/CS/HB 585 also requires
OFR to investigate the termination-of-access report to determine whether the financial institution’s action was
made in bad faith, and report a bad faith determination to the Chief Financial Officer, the Attorney General, and
the customer or member.
The bill, which is linked to the passage of CS/CS/HB 585, creates a public record exemption for certain
information received by OFR in complaints filed by customers and members, termination-of-access reports
filed by financial institutions, and determinations of bad faith issued by OFR, including information received by
OFR as part of its investigations or examinations of such reports.
The bill provides that the public record exemption is subject to the Open Government Sunset Review Act and
will repeal on October 2, 2029, unless reviewed and saved from repeal by the Legislature. It also provides a
statement of public necessity as required by the Florida Constitution.
The bill is effective upon the same date that CS/CS/HB 585 or similar legislation takes effect, if such legislation
is adopted in the same legislative session or an extension thereof and becomes a law.
Article I, s. 24(c) of the Florida Constitution requires a two-thirds vote of the members present and
voting for final passage of a newly created public record exemption. The bill creates a public record
exemption; thus, it requires a two-thirds vote for final passage.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Public Records
The Florida Constitution sets forth the state’s public policy regarding access to government records,
guaranteeing every person a right to inspect or copy any public record of the legislative, executive, and
judicial branches of government.1 The Legislature, however, may provide by general law an exemption2
from public record requirements provided that the exemption passes by a two-thirds vote of each
chamber, states with specificity the public necessity justifying the exemption, and is no broader than
necessary to meet its public purpose.3
Current law also addresses the public policy regarding access to government records by guaranteeing
every person a right to inspect and copy any state, county, or municipal record, unless the record is
exempt.4 Furthermore, the Open Government Sunset Review (OGSR) Act 5 provides that a public
record exemption may be created, revised, or maintained only if it serves an identifiable public purpose
and the “Legislature finds that the purpose is sufficiently compelling to override the strong public policy
of open government and cannot be accomplished without the exemption.” 6 An identifiable public
purpose is served if the exemption meets one of the following purposes:
 Allow the state or its political subdivisions to effectively and efficiently administer a
governmental program, which administration would be significantly impaired without the
exemption;
 Protect sensitive personal information that, if released, would be defamatory or would
jeopardize an individual’s safety; however, only the identity of an individual may be exempted
under this provision; or
 Protect trade or business secrets.7
Pursuant to the OGSR Act, a new public record exemption, or the substantial amendment of an existing
public record exemption, is repealed on October 2nd of the fifth year following enactment, unless the
Legislature reenacts the exemption.8
Financial Institutions Codes
Florida’s Financial Institutions Codes are codified under Title XXXVIII of the Florida Statutes. 9 The
Financial Institutions Codes apply to all state-authorized and state-chartered financial institutions and to
the enforcement of all laws relating to state-authorized and state-chartered financial institutions.10 The
Financial Institutions Codes define the term “financial institution” as a state or federal savings or thrift
association, bank, savings bank, trust company, international bank agency, international banking
corporation, international branch, international representative office, international administrative office,
international trust entity, international trust company representative office, qualified limited service
1 Art. I, s. 24(a), FLA . CONST.
2 A “public record exemption” means a provision of general law which provides that a specified record, or portion thereof,
is not subject to the access requirements of s. 119.07(1), F.S., or s. 24, Art. I of the Florida Constitution. See s.
119.011(8), F.S.
3 Art. I, s. 24(c), FLA . CONST.
4 See s. 119.01, F.S.
5 S. 119.15, F.S.
6 S. 119.15(6)(b), F.S.
7 Id.
8 S. 119.15(3), F.S.
9 S. 655.005(1)(k), F.S.
10 S. 655.001(1), F.S.
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 affiliate, credit union, or an agreement corporation operating pursuant to s. 25 of the Federal Reserve
Act, 12 U.S.C. ss. 601 et seq. or Edge Act corporation organized pursuant to s. 25(a) of the Federal
Reserve Act, 12 U.S.C. ss. 611 et seq.11
A primary purpose of the Financial Institutions Codes is to provide for and promote the safe and sound
conduct of the financial services industry in Florida. 12 The specific chapters under the Financial
Institutions Codes are:
 Ch. 655, F.S. – Financial Institutions Generally
 Ch. 657, F.S. – Credit Unions
 Ch. 658, F.S. – Banks and Trust Companies
 Ch. 660, F.S. – Trust Business
 Ch. 662, F.S. – Family Trust Companies
 Ch. 663, F.S. – International Banking
 Ch. 665, F.S. – Capital Stock Associations
 Ch. 667, F.S. – Savings Banks
Office of Financial Regulation
The Office of Financial Regulation (OFR) is the regulatory authority for Florida’s financial services
industry.13 OFR reports to the Financial Services Commission (Commission), which is made up of the
Governor and the members of the Florida Cabinet: the Chief Financial Officer (CFO), Attorney General
(AG), and Agriculture Commissioner.14 OFR enforces and administers the Financial Institutions Codes;
is responsible for supervising banks, credit unions, savings associations, and international bank
agencies; and licenses and regulates non-depository finance companies and the securities industry. 15
Bank Secrecy Act
The federal Bank Secrecy Act (BSA)16 establishes reporting, recordkeeping, and related requirements
for federal and state-chartered17 financial institutions to help detect and prevent money laundering. 18
Specifically, the BSA and other anti-money laundering regulations (BSA/AML) require financial
institutions to, among other things, keep records of cash purchases of negotiable instruments and file
reports of cash transactions exceeding $10,000 (daily aggregate amount). 19
Under the BSA/AML laws, financial institutions must also:
 Establish effective BSA compliance programs;
 Establish effective customer due diligence systems and monitoring programs;
 Screen against Office of Foreign Assets Control lists and other government lists;
 Establish an effective suspicious activity monitoring and reporting process; and
 Develop risk-based anti-money laundering programs.20
11 S. 655.005(i), F.S.
12 S. 655.001(2), F.S.
13 Florida Office of Financial Regulation, About Our Agency, https://flofr.gov/sitePages/AboutOFR.htm (last visited Jan. 20,
2024).
14 Id.
15 Florida Department of Financial Services, Financial Services Commission, https://www.myfloridacfo.com/about/about -
dfs/commission (last visited Jan. 20, 2024). See also, s. 655.012, F.S.
16 31 U.S.C. § 5311 et seq.
17 See, 12 C.F.R. § 326.8 (sets forth requirements for state-chartered banks to establish and maintain procedures to
ensure and monitor their compliance with the BSA). See also, 12 C.F.R. § 353 (establishes requirements for state-
chartered banks to file a suspicious activity report under certain circumstances).
18 U.S. Treasury Financial Crimes Enforcement Network, FinCEN’s Legal Authorities,
https://www.fincen.gov/resources/fincens-legal-authorities (last visited Jan 20, 2024).
19 Id.
20 U.S. Office of the Comptroller of the Currency, Bank Secrecy Act, https://www.occ.treas.gov/topics/supervision-and-
examination/bsa/index-bsa.html (last visited Jan 20, 2024).
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 The U.S. Office of the Comptroller of Currency regularly conducts examinations of national banks,
federal branches, federal savings associations, and agencies of foreign banks in the U.S. to determine
compliance with BSA/AML laws.21
SUSPICIOUS ACTIVITY REPORTS
In addition to the other requirements under the BSA/AML laws, financial institutions are also required to
report suspicious activity that might signify money laundering, tax evasion, or other criminal activities. 22
These types of reports are known as “suspicious activity reports” (SAR) and are filed with the Financial
Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, using
FinCEN’s BSA E-filing system.23
Under this requirement, a financial institution is required to file an SAR no later than 30 calendar days
after the date of initial detection of facts that may constitute a basis for filing an SAR. 24 For instances
where no suspect was identified on the date of the incident requiring the filing, a financial institution
may delay filing an SAR for an additional 30 calendar days to identify a suspect. 25 However, in no case
shall reporting be delayed more than 60 calendar days after the date of initial detection of a reportable
transaction.26
Federal Trade Commission Act
Section 5 of the Federal Trade Commission Act (FTC Act), 15 U.S.C. § 45, prohibits “unfair or
deceptive acts or practices in or affecting commerce.” 27 The prohibition applies to all persons engaged
in commerce, including state-chartered banks.28 The Board of Governors of the Federal Reserve
System have authority under federal law 29 to take appropriate action when unfair or deceptive acts or
practices are discovered, regardless of state authorities having primary responsibility for enforcing state
statutes against unfair or deceptive acts or practices. 30
Under the FTC Act, an act or practice is considered unfair if it:
 Causes or is likely to cause substantial injury to consumers;
 Cannot be reasonably avoided by consumers; and
 Is not outweighed by countervailing benefits to consumers or to competition. 31
According to the Board of Governors of the Federal Reserve System, there may be circumstances in
which an act or practice violates section 5 of the FTC Act even though the institution is in technical
compliance with other applicable laws, such as the BSA/AML laws. 32 Moreover, the policies behind the
BSA/AML laws could arguably outweigh a finding that a financial institution committed an unfair act
under section 5 of the FTC Act.
21 Id.
22 U.S. Treasury Financial Crimes Enforcement Network, supra note 18.
23 U.S. Office of the Comptroller of the Currency, Suspicious Activity Report Program,
https://www.occ.treas.gov/publications-and-resources/forms/sar-program/index-sar-program.html (last visited Jan. 20,
2024).
24 Id.
25 Id.
26 Id.
27 Board of Governors of the Federal Reserve System, Division of Consumer and Community Affairs, Federal Trade
Commission Act (last updated Dec. 2016), p. 1, https://www.federalreserve.gov/boarddocs/supmanual/cch/ftca.pdf (last
visited Feb. 6, 2024).
28 Id.
29 Section 8 of the Federal Deposit Insurance Act, 12 U.S.C.A. § 1811, et seq.
30 Board of Governors of the Federal Reserve System, Division of Consumer and Community Affairs, supra note 27, p. 1.
31 Board of Governors of the Federal Reserve System, Division of Consumer and Communit y Affairs, supra note 27, p. 1.
32 Board of Governors of the Federal Reserve System, Division of Consumer and Community Affairs, supra note 27, p. 7.
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 Florida Control of Money-Laundering and Terrorist Financing in Financial Institutions Act
The purpose of the Florida Control of Money-Laundering and Terrorist Financing in Financial
Institutions Act33 (Act), s. 655.50, F.S., is to require submission to OFR of certain reports and the
maintenance of certain records of customers, accounts, and transactions involving currency or
monetary instruments or suspicious activities if:34
 such reports and records deter using financial institutions to conceal, move, or provide proceeds
obtained from or intended for criminal or terrorist activities; or
 such reports and records have a high degree of usefulness in criminal, tax, or regulatory
investigations or proceedings.
The Act requires financial institutions to designate and retain a BSA/AML compliance officer, which is
defined as an officer that is responsible for the development and implementation of the financial
institution’s policies and procedures for complying with the requirements of the Act and BSA/AML
laws.35 Any change in a financial institution’s BSA/AML compliance officer must be reported to OFR. 36
Additionally, the Act requires financial institutions to maintain: 37
 full and complete records of all financial transactions, including all records required by the
BSA/AML laws, for a minimum of 5 years;
 a copy of all reports filed with OFR as required under the Act for a minimum of 5 years after
submission of the report;
 a copy of all records of exemption for each qualified business customer 38 for a minimum of 5
calendar years after termination of exempt status of such customer.
The Act also requires financial institutions to keep a record of each financial transaction which involves
currency or other monetary instrument that has a value greater than $10,000, involves the proceeds of
specified unlawful activity, or is designed to evade the reporting requirements of the Act or other state
or federal laws, or which the financial institution reasonably believes is suspicious activity.39
A financial institution, or officer, employee, or agent thereof, which files a report in good faith pursuant
to the Act is not liable to any person for loss or damage caused in whole or in part by the making, filing,
or governmental use of the report, or any information contained therein. 40
OFR ENFORCEMENT
In addition to any other powers conferred by the Financial Institutions Codes, OFR may bring an action
in court to enforce or administer the Act, as well as issue and serve upon any person an order of
removal if OFR determines such person is violating, has violated, or is about to violate any provisions of
the Act or any similar state or federal law.41
33 S. 655.50, F.S.
34 S. 655.50(2), F.S.
35 S. 655.50(4), F.S.
36 Id.
37 S. 655.50(8), F.S.
38 See, 31 U.S.C. § 5313(e), providing that the U.S. Secretary of Treasury (Secretary) may exempt a depository institution
from BSA/AML reporting requirements for