Bill Overview
Title: Special Measures to Fight Modern Threats Act
Description: This bill expands the special measures available to the Financial Crimes Enforcement Network (FinCEN) to combat money laundering regarding a jurisdiction outside of the United States; a financial institution operating outside of the United States; a class of transaction within, or involving, a jurisdiction outside of the United States; or one or more types of accounts. Specifically, FinCEN may prohibit or impose conditions upon the opening or maintaining in the United States of a correspondent account or payable-through account by any domestic financial institution or domestic financial agency without requiring, as under current law, that such account be for or on behalf of a foreign banking institution. Further, FinCEN may prohibit or impose conditions upon certain transmittals of funds to or from any domestic financial institution or domestic financial agency if such transmittal of funds involves any such jurisdiction, institution, class of transaction, or type of account.
Sponsors: Rep. Himes, James A. [D-CT-4]
Target Audience
Population: People using international financial services
Estimated Size: 500000
- This bill impacts financial institutions globally as it deals with international jurisdictions.
- The bill gives FinCEN authority over transactions involving jurisdictions outside the United States.
- U.S. financial institutions and agencies will also be impacted as they have to adhere to new conditions imposed by the bill.
- The bill primarily targets money laundering activities, which are prevalent worldwide.
- Regular individuals using international financial services for legitimate purposes may also experience indirect impacts due to increased scrutiny and regulatory conditions.
Reasoning
- The population who would be primarily affected by this policy includes individuals who engage in international financial transactions. This could range from business professionals, expatriates, individuals with family abroad, or those who utilize international services for personal finance reasons.
- While the policy aims to combat money laundering, it may also add layers of compliance for legitimate transactions, potentially affecting costs, speed, and privacy of international transactions.
- The financial impacts might be more visible among those who are regularly involved in international transactions, and might have limited impact on individuals without such engagements.
- This policy could indirectly affect those who are part of the financial industry within the US, such as bankers, accountants, and financial advisors, as they might have to adapt their operations or advise their clients based on new compliance regulations.
- Given the budget limits, the enforcement will likely be focused, targeting significant institutions and major transaction domains initially until the impact can be comprehensively evaluated and adjusted.
Simulated Interviews
Financial Analyst (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- The policy will increase compliance requirements, which might slow down processes but enhance security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 9 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Software Engineer (San Francisco, CA)
Age: 32 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I'm worried about increased fees and delays in sending money to my family.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 7 | 6 |
Business Owner (Miami, FL)
Age: 55 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Increased scrutiny could complicate logistics and cash flow management.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 8 | 8 |
IT Consultant (Austin, TX)
Age: 40 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 7.0 years
Commonness: 5/20
Statement of Opinion:
- I'm concerned about access to my funds and having to report more financial details.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 8 |
Graduate Student (Boston, MA)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- I just hope my scholarship funds aren't delayed because of increased scrutiny.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Retired (Houston, TX)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- I worry about access delays and higher wire costs impacting my retirement funds.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
NGO Worker (Chicago, IL)
Age: 50 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- Extra obstacles might slow our funding processes, impacting people relying on our aid.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 7 | 7 |
Bank Manager (Seattle, WA)
Age: 37 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- The policy will likely increase our workload and compliance costs but should improve security in the long run.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 8 |
Accountant (Charlotte, NC)
Age: 43 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Compliance will be key, and I expect a learning curve, but it ensures our clients won't have disputes.
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 | 8 | 8 |
Freelance Graphic Designer (Los Angeles, CA)
Age: 34 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I'm worried about delays and higher fees affecting my cash flow and business relationships.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 7 | 8 |
Cost Estimates
Year 1: $50000000 (Low: $40000000, High: $60000000)
Year 2: $55000000 (Low: $45000000, High: $65000000)
Year 3: $57500000 (Low: $47000000, High: $68000000)
Year 5: $60000000 (Low: $50000000, High: $70000000)
Year 10: $65000000 (Low: $55000000, High: $75000000)
Year 100: $80000000 (Low: $70000000, High: $90000000)
Key Considerations
- The bill aims to enhance the global financial system's integrity, potentially reducing systemic risks.
- Balancing stricter financial oversight with the impacts on legitimate international financial activities will be crucial.
- Coordination with international partners will be essential for effective implementation.
- Advanced technological investments for monitoring international transactions will be necessary.