Bill Overview
Title: Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2022
Description: This bill makes changes to anti-money laundering requirements under federal criminal and banking laws. Among the changes, the bill specifies that a blank check that is drawn on an account containing more than $10,000 and that is possessed by the bearer to avoid reporting requirements is a monetary instrument subject to international transport reporting requirements, increases the maximum criminal penalties for bulk cash smuggling, and permits the government to charge a defendant with a single count of money laundering for multiple violations that are part of the same scheme or continuing course of conduct.
Sponsors: Sen. Grassley, Chuck [R-IA]
Target Audience
Population: People involved in or benefiting from money laundering and terrorist financing activities
Estimated Size: 500000
- Money laundering and terrorist financing are global issues affecting countries worldwide.
- The legislation targets financial activities that involve the movement of significant sums of money, often exploiting cross-border transactions.
- Countering money laundering and terrorist financing benefits governments and financial institutions globally by safeguarding financial systems.
- Individuals involved in criminal activities, particularly financial crimes, are directly impacted.
- Legitimate businesses and individuals may face stricter financial scrutiny to ensure compliance.
- Law enforcement agencies globally will have expanded authorities and responsibilities.
Reasoning
- The target population includes individuals who may be impacted directly by stricter financial scrutiny due to their involvement or potential involvement in money laundering or related illegal activities.
- The budget constraints limit the scope of enforcement and monitoring activities, potentially affecting the breadth of direct impact.
- The policy may indirectly affect individuals and businesses in adjacent sectors due to increased regulatory compliance requirements.
- The long-term financial wellbeing impacts may vary widely based on individuals' initial involvement in or reliance on activities related to money laundering and their ability to transition to legitimate financial activities.
Simulated Interviews
Financial Advisor (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- The new policy increases compliance workload.
- Could potentially lose clients who are worried about additional government scrutiny.
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 | 8 | 8 |
| Year 20 | 8 | 9 |
Bank Compliance Officer (Miami, FL)
Age: 32 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- The policy strengthens our framework for combating illicit activities.
- A wider scope of action may improve career opportunities in compliance roles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 8 | 8 |
Small Business Owner (Los Angeles, CA)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 12/20
Statement of Opinion:
- Worried about increased scrutiny on international transactions affecting speed of business.
- The need to comply with extra regulations may increase operational costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 7 | 8 |
Law Enforcement Officer (Houston, TX)
Age: 28 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- Expect more resources to tackle financial crimes effectively.
- The policy aligns with initiatives to enhance national security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 9 | 7 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 8 |
Unemployed (Chicago, IL)
Age: 39 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Hoping for job opportunities in new initiatives as a result of the policy.
- Previous involvement with unverified cash sources raises personal concerns.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Casino Manager (Las Vegas, NV)
Age: 52 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 8.0 years
Commonness: 9/20
Statement of Opinion:
- Enhanced regulations might affect casino cash flow operations.
- Increased regulatory paperwork could lead to higher operational workload.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 9 |
Tech Entrepreneur (San Francisco, CA)
Age: 50 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 11/20
Statement of Opinion:
- New monitoring policies may complicate investment operations.
- The policy could prevent cross-border financial partnerships.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 8 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
NGO Financial Officer (Seattle, WA)
Age: 35 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- Increased risk of funds being flagged due to stringent checks.
- Policy could lead to delays in critical fund transfers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 8 |
| Year 20 | 7 | 8 |
Illegal Money Transfer Operator (Atlanta, GA)
Age: 40 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- Expect significant negative impact due to stricter regulations.
- Concerns about increased legal risks and business viability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 2 | 4 |
| Year 2 | 3 | 4 |
| Year 3 | 3 | 5 |
| Year 5 | 4 | 5 |
| Year 10 | 5 | 6 |
| Year 20 | 5 | 6 |
Corporate Lawyer (Boston, MA)
Age: 55 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 16/20
Statement of Opinion:
- The policy presents new business opportunities to advise on compliance.
- May increase workload but also revenue.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 8 | 9 |
Cost Estimates
Year 1: $500000000 (Low: $400000000, High: $600000000)
Year 2: $450000000 (Low: $350000000, High: $550000000)
Year 3: $350000000 (Low: $300000000, High: $450000000)
Year 5: $200000000 (Low: $150000000, High: $300000000)
Year 10: $100000000 (Low: $50000000, High: $200000000)
Year 100: $10000000 (Low: $5000000, High: $15000000)
Key Considerations
- Long-term benefits from reduced criminal activities may not be immediately visible but have significant value.
- Financial institutions will face costs and responsibilities which may affect service price structures.