H.R.1602 - Financial Privacy Act of 2025 (119th Congress)
Summary
H.R. 1602, the Financial Privacy Act of 2025, aims to increase transparency and protection regarding Bank Secrecy Act (BSA) reports. The bill requires the Secretary of the Treasury to provide annual reports to Congress on the number and type of BSA reports filed, as well as protocols for agency access to this information. It also mandates a review and revision of these protocols to better tailor information collection to authorized objectives and protect individual rights.
Expected Effects
The likely effect of this bill is increased congressional oversight of FinCEN's data collection activities under the Bank Secrecy Act. This could lead to greater scrutiny of how the government uses financial data and potentially limit the scope of data collection. A sunset provision repeals the reporting requirements after seven years, providing a built-in review period.
Potential Benefits
- Increased transparency in government data collection practices.
- Enhanced protection of individual privacy rights.
- Improved tailoring of data collection to legitimate law enforcement and national security objectives.
- Greater congressional oversight of FinCEN activities.
- Potential for reduced burden on individuals and businesses from overbroad reporting requirements.
Potential Disadvantages
- Potential hindrance to law enforcement and intelligence agencies in combating illicit finance.
- Increased administrative burden on the Treasury Department to produce the required reports.
- Possible reduction in the effectiveness of the Bank Secrecy Act in preventing money laundering and terrorist financing.
- The sunset provision could lead to a lapse in oversight if not renewed.
- The definition of 'legitimate law enforcement' is not defined, which could lead to abuse.
Constitutional Alignment
The bill aligns with constitutional principles related to privacy and government transparency. By requiring reports to Congress and review of agency protocols, it supports the principle of checks and balances, as outlined in Article I, Section 1 of the Constitution, which vests legislative powers in Congress. The emphasis on protecting the legal rights of United States persons, including freedoms, civil liberties, and privacy rights, reinforces the protections afforded by the Bill of Rights, particularly the Fourth Amendment regarding unreasonable searches and seizures.
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).