; and (4) the Financial Crimes Enforcement Network (FinCEN) should consider issuing more guidance and facilitating the establishment of institutions pursuant to sections 314(a) and 314(b) of the USA PATRIOT Act to facilitate greater information flow within and among global banks. 4. Report The President, acting through the Secretary of the Treasury and the Director of National Intelligence, shall report on the possible exploitation of virtual currencies by terrorist actors. Such report shall include the following elements: (1) Recommendations to update the regulatory oversight structure regarding virtual currencies to address transactions that bypass financial institutions, including banks, Money Services Businesses (MSB), and other financial institutions subject to regulation. (2) Assessment of current efforts by Federal departments and agencies to study and collect intelligence against the terror finance threat and money laundering methodologies. (3) Identification of gaps between Federal and State regulations which could be exploited for illicit funding. 5. Innovation competition (a) Authorization In order to facilitate public-private partnership to develop and enhance illicit finance prevention systems, the Secretary of the Treasury may establish a program (referred to in this section as the competition ) to be known as the Competition for Innovation in Combating Illicit Terrorist Financing . (b) Activities supported The Competition may carry out, through the provision of grants or an annual reward, the following activities: (1) Collaborative research Provide grants, for not more than two years, to engage students, entrepreneurs, and financial experts to identify regulatory solutions with respect to the exploitation of VCs by terrorists and other criminals. (2) Competition Establish an annual competition for a reward of not more than $500,000 to any individual, team, or nongovernmental entity that develops technologies to facilitate counter terror threat financing, particularly that addresses the use of VCs