Bill Overview
Title: Banking Transparency for Sanctioned Persons Act of 2021
Description: This bill requires the Department of the Treasury to report semiannually on financial services provided to benefit a state sponsor of terrorism or specified sanctioned persons.
Sponsors: Rep. Steil, Bryan [R-WI-1]
Target Audience
Population: Individuals and entities involved with state sponsors of terrorism and specially sanctioned persons
Estimated Size: 5000
- The bill focuses on banking transparency for state sponsors of terrorism and specified sanctioned persons.
- It specifically requires reports on financial services benefiting these individuals or entities.
- People involved in the financial industry dealing with compliance may need to adjust their practices based on this bill.
- Citizens of countries classified as state sponsors of terrorism might indirectly be affected due to potential changes in financial relations.
- Individuals who have been sanctioned or entities managing funds for them may be directly impacted.
Reasoning
- The policy's direct impact is expected to be on professionals and entities in the financial services industry dealing with compliance, based on increasing transparency requirements.
- U.S. financial institutions may experience changes requiring internal policy updates and staff training to comply with more stringent reporting requirements.
- Individuals or entities sanctioned or potentially linked to state sponsors of terrorism could see direct effects, potentially limiting financial access or scrutinizing transactions, thereby affecting personal or household well-being.
- Overall impact on the general population is expected to be minimal due to the targeted nature of the policy, primarily affecting specific financial niches and sanctioned individuals.
- There may also be indirect effects on citizens from countries designated as state sponsors of terrorism, in terms of international relations and financial dealings.
Simulated Interviews
Compliance Officer at a multinational bank (New York, NY)
Age: 45 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This policy will certainly increase my workload, as we will have new reporting obligations to track financial services linked to sanctioned individuals.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 7 | 8 |
Financial Analyst (Los Angeles, CA)
Age: 32 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- I think this policy adds a level of assurance against illicit financial flow, though it might complicate some of our international dealings.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 9 |
Retired, previously worked in international finance (Miami, FL)
Age: 60 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 3/20
Statement of Opinion:
- The policy continuation strengthens financial security globally; however, it could raise compliance costs affecting investments.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 8 |
| Year 20 | 7 | 8 |
Graduate Student in Economics (Houston, TX)
Age: 24 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 6/20
Statement of Opinion:
- As a researcher, this policy provides valuable data, though its indirect impact on citizens is complex and minimal.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 9 | 9 |
Lawyer specializing in international sanctions (Washington, DC)
Age: 41 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- It's a necessary move to ensure financial integrity, though it raises complexity for legal compliance.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 6 | 8 |
Tech Entrepreneur (San Francisco, CA)
Age: 50 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- This policy might hinder fast-paced fintech innovation due to increased scrutiny, though it's important for national security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 8 | 9 |
| Year 3 | 8 | 9 |
| Year 5 | 7 | 9 |
| Year 10 | 8 | 9 |
| Year 20 | 9 | 10 |
Foreign-exchange trader (Chicago, IL)
Age: 38 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- More transparency might streamline some operations, but there is potential risk of reduced transaction volumes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 9 |
| Year 20 | 8 | 9 |
CEO of a charitable organization (Boston, MA)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 4/20
Statement of Opinion:
- We might need to adapt to ensure funds aren't affected by expanded sanctions, although transparency is a good practice.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 7 | 8 |
Accountant (Newark, NJ)
Age: 29 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- This bill would lead to more audits, ultimately meaning more work, but it's good for maintaining legitimate practices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 9 |
Research analyst for a think tank (Atlanta, GA)
Age: 47 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- It's an important policy for ensuring financial transparency but might also lead to unforeseen diplomatic tensions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 8 | 9 |
| Year 3 | 8 | 9 |
| Year 5 | 8 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 10 |
Cost Estimates
Year 1: $2500000 (Low: $2000000, High: $3000000)
Year 2: $2500000 (Low: $2000000, High: $3000000)
Year 3: $2600000 (Low: $2100000, High: $3100000)
Year 5: $2700000 (Low: $2200000, High: $3200000)
Year 10: $3000000 (Low: $2500000, High: $3500000)
Year 100: $5000000 (Low: $4000000, High: $6000000)
Key Considerations
- The administrative cost of compliance for financial institutions.
- Potential international collaborations for effective enforcement.
- Monitoring and evaluative mechanisms to ensure compliance and effectiveness.
- The need for technological investments to enable efficient data collection and reporting.