The House Financial Services Committee today advanced legislation that would increase congressional oversight of the Financial Crimes Enforcement Network and avoid the Federal Reserve from providing a reserve bank digital currency. In a memo to committee members, the American Bankers Association weighed in on numerous expenses, revealing assistance for more FinCEN oversight and passing on lender issues about a CBDC.
Among the expenses lost consciousness of committee was legislation to need the Treasury Department to keep the House Financial Services Committee and Senate Banking Committee frequently notified about FinCEN activities. The committee likewise advanced an expense to need FinCEN to recognize the variety of Bank Secrecy Act reports submitted by banks with FinCEN. Both gone by bipartisan vote. In its remarks, ABA stated the latter expense, H.R. 5485, would assist banks comprehend the defense and usage of extremely delicate BSA reports by police and intelligence firms. “Overall, it will bring a much-needed measure of accountability to the BSA process,” the association stated.
The committee was divided along partisan lines over expenses looking for to control the Fed’s capability to release a CBDC, with Republicans supporting the steps and Democrats opposed. The committee passed legislation that would avoid the production of a CBDC in addition to need an act of Congress to produce the currency. ABA supported the procedure to avoid the production of a CBDC, H.R. 5403, restating its view that the digital currency is unneeded and would provide undesirable threats and expenses to the monetary system. The committee likewise advanced ABA-supported legislation to extend the due date for the pilot program licensing suspicious activity report showing foreign affiliates from Jan. 1, 2024, to 3 years after the date the program starts.
