H.R.1450 - OFAC Licensure for Investigators Act (119th Congress)
Summary
H.R.1450, the OFAC Licensure for Investigators Act, directs the Office of Foreign Assets Control (OFAC) to establish a pilot program allowing private sector firms to obtain licenses for conducting nominal financial transactions related to their investigations. This program aims to support the activities of the Financial Crimes Enforcement Network (FinCEN) Exchange. The bill mandates regular reporting to OFAC and Congress on the program's activities, including classified briefings.
Expected Effects
The bill will likely lead to increased collaboration between OFAC, FinCEN, and private sector firms in investigating financial crimes. It could also enhance the effectiveness of financial crime investigations by allowing firms to conduct small-scale transactions to gather evidence. The pilot program is set to terminate after five years, after which its utility will be assessed.
Potential Benefits
- Enhanced ability for private firms to investigate financial crimes.
- Improved coordination between OFAC, FinCEN, and the private sector.
- Increased information gathering on financial crime activities.
- Potential for more effective enforcement of financial regulations.
- Provides oversight through required reporting to Congress.
Potential Disadvantages
- Potential for misuse of licenses by private firms.
- Increased administrative burden on OFAC.
- Risk of exposing sensitive information during nominal financial transactions.
- Possible unintended consequences from allowing private firms to conduct transactions typically reserved for law enforcement.
- Costs associated with establishing and managing the pilot program.
Constitutional Alignment
The bill appears to align with the constitutional powers of Congress to regulate commerce with foreign nations (Article I, Section 8). It also supports the necessary and proper clause (Article I, Section 8) by enabling the government to effectively enforce financial regulations. The reporting requirements to Congress ensure accountability and oversight, consistent with the principle of checks and balances.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).