; and (2) applies to a purchase made, at least in part, using an in-kind transaction to the same extent as the Order applies to a purchase made, at least in part, using currency or a cashier’s check, a certified check, a traveler’s check, a personal check, a business check, a money order in any form, a funds transfer, or virtual currency. III Modernizing the AML System 301. Encouraging innovation in BSA compliance Section 5318 of title 31, United States Code, as amended by section 203, is further amended by adding at the end the following: (p) Encouraging innovation in compliance (1) In general The financial agencies shall encourage financial institutions to consider, evaluate, and, where appropriate, responsibly implement innovative approaches to meet the requirements of this subchapter, including through the use of innovation pilot programs. (2) Exemptive relief The Secretary, pursuant to subsection (a), may provide exemptions from the requirements of this subchapter if the Secretary determines such exemptions are necessary to facilitate the testing and potential use of new technologies and other innovations. (3) Financial agency defined In this subsection, the term financial agency means the Department of the Treasury, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission. . 302. Innovation Labs (a) In general Title 31, United States Code, is amended by inserting after section 5326 the following: 5327. Innovation Labs (a) Establishment There is established within each financial agency an Innovation Lab. (b) Director The head of each Innovation Lab shall be a Director, to be appointed by the head of the applicable financial agency. (c) Duties The duties of the Innovation Lab shall be— (1) to provide outreach to law enforcement agencies, financial institutions, and other persons (including vendors and technology companies) with respect to