H.R.3066 - Financial Integrity for National Security Act; FINS Act (119th Congress)
Summary
H.R. 3066, the Financial Integrity for National Security Act (FINS Act), aims to enhance financial oversight of commercial wire transfer companies to prevent illicit money transfers by criminal organizations. The bill mandates that wire transfer service providers be included under Section 5312(a) of Title 31, United States Code, and directs the Secretary of the Treasury to issue rules to implement these amendments within 180 days of enactment.
The Act seeks to address vulnerabilities in financial crime enforcement by aligning non-bank financial institutions with existing anti-money laundering laws and the Bank Secrecy Act. The changes will take effect one year after the enactment of the bill.
This legislation directly targets the exploitation of wire transfer services by international criminal organizations, including cartels and terrorist groups.
Expected Effects
The FINS Act will likely increase regulatory compliance costs for wire transfer companies. It will also enhance the ability of law enforcement to track and prevent illicit financial activities.
This could lead to a reduction in the use of these services for illegal purposes. Consumers may experience increased scrutiny and potential delays in wire transfers.
Potential Benefits
- Enhanced National Security: Reduces the ability of terrorist groups and criminal organizations to finance their operations.
- Combating Financial Crime: Strengthens anti-money laundering efforts by closing regulatory gaps in wire transfer services.
- Increased Transparency: Provides greater oversight of financial transactions, making it harder to conceal illicit activities.
- Alignment with Existing Laws: Integrates non-bank financial institutions into the existing framework of anti-money laundering regulations.
- Protection of Vulnerable Populations: Helps to combat human trafficking and drug trade by disrupting financial flows.
Potential Disadvantages
- Increased Costs for Consumers: Wire transfer companies may pass compliance costs onto consumers through higher fees.
- Potential Delays in Transfers: Enhanced scrutiny could lead to delays in processing legitimate wire transfers.
- Reduced Accessibility for Some Users: More stringent requirements might make it harder for some individuals, particularly those in underserved communities, to access wire transfer services.
- Compliance Burden for Businesses: Wire transfer companies will face increased regulatory burdens and compliance costs.
- Potential for Overreach: There is a risk that increased oversight could lead to unwarranted scrutiny of legitimate transactions.
Most Disadvantaged Areas:
Constitutional Alignment
The FINS Act appears to align with the US Constitution, particularly with the implied powers granted to Congress under Article I, Section 8, which allows Congress to regulate commerce and provide for the general welfare and national defense. The Act does not appear to infringe upon any specific constitutional rights, such as those protected by the First, Second, or Fourth Amendments.
By targeting financial activities that support criminal organizations and terrorism, the Act indirectly supports the government's responsibility to "provide for the common defence" and "insure domestic Tranquility," as stated in the Preamble of the Constitution.
However, implementation must be carefully monitored to ensure that regulations do not unduly burden individual liberties or create unreasonable barriers to legitimate 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).