Bill Overview
Title: Timely Delivery of Bank Secrecy Act Reports Act
Description: This bill requires the Department of the Treasury to provide Bank Secrecy Act (BSA) reports to a congressional committee or subcommittee not later than 30 days after a request. Under the BSA, financial institutions must keep records of certain transactions and report suspicious activity indicative of money laundering or other criminal activity. Additionally, when subpoenaed, a financial institution must provide such reports to a congressional committee or subcommittee.
Sponsors: Rep. Waters, Maxine [D-CA-43]
Target Audience
Population: People subject to and supported by Bank Secrecy Act reporting processes
Estimated Size: 300000000
- This bill affects financial institutions that are required to comply with the Bank Secrecy Act (BSA).
- Financial regulatory bodies and compliance departments in banks will have to ensure timely reporting to Congress.
- The bill indirectly impacts consumers engaged in transactions being monitored under the BSA.
- Legal and compliance professionals handling subpoenas and reports will also be involved, both domestically and internationally.
Reasoning
- The policy predominantly affects financial institutions and their compliance and legal teams. Its direct impact on the general public is minimal, but the indirect effects may touch consumers’ trust and experience in financial transactions.
- Compliance departments within banks and other financial institutions may see increased workload and costs related to expedited reporting requests to Congress, impacting employee well-being in those sectors. These impacts are indirect and secondary.
- Legal professionals might experience changes in workload due to handling increased subpoenas. Their well-being might be affected positively due to job security or negatively due to increased stress.
- Consumers, who are indirectly affected, might experience changes in banking service satisfaction, though this is expected to be minimal unless they are directly involved in transactions being specifically monitored.
- Since the policy budget is restrictive, impacts visible in the initial years should level off as systems adapt and compliance becomes routine.
Simulated Interviews
Bank Compliance Officer (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- This policy might increase the workload temporarily but nothing we haven't managed before.
- We might need to hire additional staff or implement software upgrades using part of the policy's budget.
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 | 7 |
Legal Advisor (San Francisco, CA)
Age: 38 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Expect some increase in legal consultations and workload.
- This policy reinforces the importance of compliance, so it could be beneficial for job security.
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 |
Software Developer (Austin, TX)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 6/20
Statement of Opinion:
- Might need to update software systems to accommodate faster reporting.
- Could lead to more work contracts in the short-term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Small Business Owner (Chicago, IL)
Age: 55 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- I don't expect this policy to impact my business directly.
- I hope banks don't pass any increased operational costs onto small business services.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Bank Teller (Miami, FL)
Age: 31 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- I'm worried we might see operational changes that affect our workflow.
- Reduced detail in reports could complicate financial transactions at a local level.
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 |
Finance Consultant (Columbus, OH)
Age: 40 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 4.0 years
Commonness: 6/20
Statement of Opinion:
- This policy is likely to add complexity in the short-term.
- Could result in more strategic audit opportunities.
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 |
CEO of a Mid-sized Financial Institution (Los Angeles, CA)
Age: 47 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 3/20
Statement of Opinion:
- This could lead to significant reshuffling of compliance resources.
- We will need to look into automation solutions to manage additional reporting volumes.
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 | 6 | 6 |
Retired Bank Executive (Boston, MA)
Age: 62 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- Likely no direct personal impact aside from observing changes in compliance trends.
- Interested to see how smaller institutions handle new requirements.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Customer Service Representative for a Bank (Portland, OR)
Age: 28 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- This might lead to more customer queries if they feel impacted.
- We will likely receive extra training on new processes.
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 |
Entrepreneur (Denver, CO)
Age: 35 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- This policy reminds startups to consider compliance carefully when scaling.
- Could be advantageous if it levels the playing field against big banks.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $50000000 (Low: $30000000, High: $80000000)
Year 2: $50000000 (Low: $30000000, High: $80000000)
Year 3: $50000000 (Low: $30000000, High: $80000000)
Year 5: $50000000 (Low: $30000000, High: $80000000)
Year 10: $50000000 (Low: $30000000, High: $80000000)
Year 100: $50000000 (Low: $30000000, High: $80000000)
Key Considerations
- While the operational costs for financial institutions and the Department of Treasury are considered, there is a potential indirect benefit in increased detection of illicit activities, which could have broader economic and social benefits.
- The capacity of financial institutions and the Department of Treasury to upgrade their systems and processes to meet new compliance timelines will be crucial for timely implementation.
- Stakeholders may need to invest in training and technological systems to handle the increased volume and speed of information requests.