If enacted, HB2963 will amend existing statutes to facilitate more rigorous oversight of FinCEN's rule-making processes. The bill mandates that the Secretary of the Treasury provide timely access to controlling documents to both congressional committees and the public, thus fostering an environment of transparency at the regulatory level. This legislative move is anticipated to improve the regulatory framework surrounding financial crimes and enhance compliance among financial institutions, aligning operational realities with legislative intent while reducing ambiguity in regulatory guidance.
Summary
House Bill 2963, also known as the FinCEN Accountability Act of 2023, aims to enhance congressional oversight of the Financial Crimes Enforcement Network (FinCEN). The bill delineates clear requirements for FinCEN to provide transparency regarding its controlling documents, which include regulations, policies, and procedures that dictate its operations under the Bank Secrecy Act. This emphasis on disclosure seeks to hold the agency accountable for its actions and decision-making processes, ensuring that Congress and the public are informed about changes to the regulations that govern financial institutions and their obligations to prevent illicit financial activities.
Contention
Discussions surrounding HB2963 have highlighted divisions among stakeholders. Proponents argue that greater transparency and oversight of FinCEN are crucial for effective regulation and preventing financial crimes. They assert that the bill will empower Congress to better monitor FinCEN's effectiveness and adaptability in addressing emerging financial threats. Conversely, some critics express concerns that too much oversight might hinder FinCEN's ability to respond swiftly to evolving challenges in financial crime. There is apprehension that excessive bureaucratic processes could burden the agency and detract from its fundamental mission of preventing money laundering and financing of terrorism.
FinCEN Oversight and Accountability Act of 2025This bill requires the Department of the Treasury to keep specified congressional committees informed of the activity of the Financial Crimes Enforcement Network (FinCEN), particularly regarding unlawful activity and any resulting corrective action.Further, Treasury must disclose to Congress and to the public (with some exclusions) all controlling documents delegating authority to or providing direction to FinCEN. Such disclosure includes any controlling documents in force upon enactment, any controlling documents issued thereafter, and any changes to controlling documents.The bill extends for an additional five years the time period during which Treasury must testify before Congress regarding FinCEN’s anti-money laundering programs.FinCEN must also hold an annual small business working group to provide guidance on beneficial ownership reporting obligations.
FinCEN Modernization Act of 2023 This bill requires the Financial Crimes Enforcement Network (FinCEN) to establish programs and perform research related to financial technology on topics such as machine learning, data analytics, and cryptocurrency. The bill allows FinCEN to enter into transactions and to accept gifts related to these objectives.
Reforms the organizational structure for the Department of Transportation and Development including its duties, powers, and responsibilities of officers and employees (EN INCREASE SD EX See Note)