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 related to Bank Secrecy Act (BSA) reports collected by the Treasury Department's Financial Crimes Enforcement Network (FinCEN). The bill mandates regular reports to Congress on the number and type of BSA reports filed, protocols for agency access to this information, and any revisions to these protocols. It also includes a sunset provision, repealing the reporting requirements after seven years.
The bill addresses concerns that the vast amount of data collected under the BSA may not be directly related to legitimate law enforcement or intelligence purposes, potentially infringing on the privacy of ordinary Americans. It seeks to balance the need to combat illicit finance with the protection of individual liberties.
The Act emphasizes the need for secure handling of sensitive financial data and requires the Secretary of the Treasury to consult with the Director of National Intelligence and the Attorney General to refine protocols for data access and dissemination.
Expected Effects
The likely effect of this bill is increased oversight of FinCEN's data collection and usage practices related to the Bank Secrecy Act. This includes greater congressional awareness of the types and volume of financial data being collected on American citizens.
It will also lead to a review and potential revision of protocols governing agency access to this data, with a focus on protecting individual privacy rights. The sunset provision ensures that these enhanced reporting requirements are subject to future review and potential termination.
Potential Benefits
- Increased Transparency: Regular reports to Congress will provide greater insight into FinCEN's activities and the use of BSA data.
- Enhanced Privacy Protections: Review and revision of access protocols aim to better protect the privacy rights of individuals.
- Improved Oversight: Congressional oversight will ensure that data collection is appropriately tailored to legitimate law enforcement and intelligence objectives.
- Accountability: The sunset provision ensures that the reporting requirements are periodically re-evaluated.
- Focus on Legitimate Use: The bill emphasizes the need to tailor data collection to authorized national security, law enforcement, or intelligence objectives.
Potential Disadvantages
- Potential for Reduced Law Enforcement Effectiveness: Increased scrutiny and restrictions on data access could hinder law enforcement efforts to combat financial crimes.
- Administrative Burden: The reporting requirements may create an additional administrative burden for the Treasury Department and FinCEN.
- Sunset Provision: The sunset provision could lead to a lapse in transparency and oversight if not reauthorized.
- Limited Scope: The bill focuses primarily on reporting and access protocols, and may not address other potential privacy concerns related to BSA data.
- Potential for Delayed Investigations: The need to adhere to stricter protocols may slow down investigations.
Constitutional Alignment
The bill aligns with the Fourth Amendment's protection against unreasonable searches and seizures by emphasizing the need to protect the privacy of financial data. It also aligns with the principles of due process and individual liberty, as it seeks to ensure that data collection is appropriately tailored to legitimate law enforcement and intelligence objectives.
Article I, Section 8, grants Congress the power to regulate commerce and enact laws necessary and proper for carrying out its enumerated powers. The Bank Secrecy Act, which this bill amends, falls under this authority. The reporting requirements imposed by the bill are within Congress's power to oversee the executive branch and ensure accountability.
Amendment I, protecting freedom of speech and assembly, is indirectly supported by ensuring financial privacy, as it prevents potential chilling effects on these rights due to unwarranted surveillance of financial transactions.
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).