Bill Overview
Title: Countering Atrocities through Currency Accountability Act of 2022
Description: This bill requires financial institutions and agencies to take specified special measures regarding foreign financial activity if the Department of the Treasury concludes that the measures are necessary to address human rights violations. These measures are applied upon a finding that a jurisdiction (or a financial institution, transaction, or type of account involving a jurisdiction) is of primary humanitarian concern. The measures include additional recordkeeping and reporting of transactions, beneficial ownership information, and information relating to payable-through accounts and correspondent accounts. If Treasury finds a payable-through or correspondent account involves foreign human rights violations, then Treasury is allowed to prohibit or impose conditions on that account. The bill establishes additional due diligence requirements for financial institutions managing a bank account or a correspondent account of a foreign person. Finally, Treasury must determine if the Xinjiang Uyghur Autonomous Region in China qualifies as a jurisdiction subject to the additional measures established by the bill.
Sponsors: Rep. Buck, Ken [R-CO-4]
Target Audience
Population: People in jurisdictions affected by financial regulations due to human rights concerns
Estimated Size: 20000
- The act affects financial institutions worldwide that handle transactions involving jurisdictions of primary humanitarian concern.
- Human rights violators using financial systems are directly targeted by the bill's accountability measures.
- China's Xinjiang Uyghur Autonomous Region is specifically mentioned, so individuals and organizations there will be directly impacted.
- Globally, individuals and communities experiencing human rights violations stand to be affected indirectly, as the bill aims to mitigate such abuses through financial accountability.
Reasoning
- The policy has a limited direct impact on ordinary US citizens since it targets financial transactions involving jurisdictions of primary humanitarian concern, specifically linked to human rights violations.
- The primary direct impact in the US is on financial institutions, which need to comply with new recordkeeping and due diligence requirements.
- US-based professionals in banking, compliance, and regulation fields are indirectly affected by increased scrutiny and compliance measures, potentially considering it a burden or a necessary step to counter human rights violations.
- US citizens and businesses involved in international trade with regions affected by the legislation may experience indirect effects, such as increased transaction times or compliance costs, but these are expected to be minimal for most everyday citizens.
Simulated Interviews
Compliance Officer at a bank (New York, NY)
Age: 35 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 18/20
Statement of Opinion:
- As a compliance officer, this policy means more work for me as we need to ensure all transactions are compliant with the new regulations.
- I see the value in preventing human rights abuses through financial accountability, but it will require significant resources and changes to current processes.
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 | 8 | 8 |
| Year 20 | 8 | 8 |
Financial Analyst (San Francisco, CA)
Age: 45 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 15/20
Statement of Opinion:
- The policy adds complexity to transactions with certain regions, which might lead to reduced international business dealings.
- However, ensuring ethical financial practices is crucial, and this policy might strengthen global financial integrity.
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 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Import/Export Business Owner (Los Angeles, CA)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- This policy could increase the costs and complexity of importing certain goods, particularly from regions under scrutiny.
- While I understand the intention behind the policy, it might hurt small businesses like mine that rely on quick transactions.
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 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 8 |
University Professor (Chicago, IL)
Age: 39 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 17/20
Statement of Opinion:
- This policy aligns with my research on holding violators accountable, adding an important layer of financial accountability.
- While its direct impact on my personal life is negligible, as a professional, I strongly support such measures.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Small Business Owner (Houston, TX)
Age: 52 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 14/20
Statement of Opinion:
- International compliance shifts could impact how quickly we can execute certain deals.
- Long-term benefits from ethical trading practices could be beneficial for global stability, even if there are short-term hurdles.
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 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Retired Banker (Miami, FL)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- This seems to be a step in the right direction as it gives financial teeth to human rights advocacy.
- Since I am retired, I do not foresee a direct impact on my current lifestyle, but I am glad measures like this are being considered.
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 |
Tech Startup Employee (Austin, TX)
Age: 26 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 13/20
Statement of Opinion:
- This policy could mean a need for new fintech solutions to accommodate the regulatory changes.
- It represents a professional opportunity to innovate in compliance technology, which is exciting but also challenging.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Human Rights Activist (Boston, MA)
Age: 47 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 11/20
Statement of Opinion:
- This bill is a win for the human rights community because it holds powerful financial institutions accountable.
- I believe this policy sets an important precedent and could lead to broader, global consequences for human rights protections.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Software Engineer (Seattle, WA)
Age: 31 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 4.0 years
Commonness: 15/20
Statement of Opinion:
- This policy means potential changes in the way blockchain can interact with global transactions.
- While it poses technical challenges, it could steer innovation towards more secure and compliant systems.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Policy Advisor (Washington, D.C.)
Age: 53 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 16/20
Statement of Opinion:
- The implementation of such a policy is complex and nuanced, but it can lead to significant positive change in international financial responsibility.
- There may be significant pushback from affected regions, requiring careful diplomatic navigation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Cost Estimates
Year 1: $70000000 (Low: $50000000, High: $90000000)
Year 2: $72000000 (Low: $51000000, High: $92000000)
Year 3: $74000000 (Low: $52000000, High: $94000000)
Year 5: $78000000 (Low: $54000000, High: $98000000)
Year 10: $80000000 (Low: $56000000, High: $100000000)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Compliance costs for financial institutions are a major factor in the additional costs incurred by the act.
- The long-term benefits of reduced human rights abuses and improved global financial practices are difficult to quantify but may offset initial costs.
- The requirement for Treasury to assess specific regions, such as Xinjiang, could lead to geopolitical considerations.