HR-5877-119
Placed on the Union Calendar, Calendar No. 530.
Sponsored by Scott Fitzgerald (R-WI)
What it does
This bill would expand the U.S. Secret Service's investigative authority to include money laundering and structured financial transactions (i.e., breaking up currency transactions to avoid reporting thresholds). It would extend the requirement for the Financial Crimes Enforcement Network (FinCEN) to report on its public-private information-sharing partnership (the FinCEN Exchange) and extend a requirement for the U.S. executive director at the International Monetary Fund to support anti-money laundering efforts. It would also direct the Government Accountability Office to evaluate how well existing anti-money laundering laws — particularly those expanded under the Anti-Money Laundering Act of 2020 — are working to combat cybercrime.
Who benefits
Financial institutions that participate in the FinCEN Exchange and benefit from better law enforcement coordination. Cybercrime victims — individuals and businesses — whose cases may be more effectively investigated. Tribal authorities who gained expanded information-sharing rights under the 2020 law and whose implementation will be evaluated. Law enforcement agencies that would gain a new investigative partner in the Secret Service. The broader public that benefits from reduced financial crime and terrorism financing.
Who is hurt
Financial institutions that may face increased compliance burdens from expanded reporting requirements or Secret Service investigations. Individuals and businesses engaged in legitimate high-volume cash transactions who may face greater scrutiny under expanded structuring investigations. Privacy advocates concerned about broader federal financial surveillance. Countries or entities subject to increased IMF-driven anti-money laundering pressure. Potentially, small financial institutions with fewer resources to absorb compliance costs.
Supporters argue
Supporters argue that cybercrime-related money laundering is a rapidly growing threat — the FBI's 2023 Internet Crime Report recorded over $12.5 billion in losses — and that the Secret Service's existing expertise in financial crimes makes it a natural fit for expanded jurisdiction. They contend that extending FinCEN Exchange reporting and the IMF directive ensures continuity of proven public-private partnerships that would otherwise lapse, and that the GAO review will produce data-driven accountability for laws already on the books.
Opponents argue
Opponents argue that expanding Secret Service investigative authority into money laundering duplicates jurisdiction already held by the FBI, DEA, and IRS Criminal Investigation division, potentially creating inter-agency conflicts and inefficiencies rather than closing enforcement gaps. They contend that broader structuring investigations risk ensnaring law-abiding individuals and small businesses in costly federal scrutiny, and that the bill's GAO study and reporting extensions are largely administrative measures that do not meaningfully address the underlying resource and coordination gaps in cybercrime enforcement.
Constitutional context
Congress has broad authority to regulate financial crimes under the Commerce Clause and the Necessary and Proper Clause. The bill's expansion of federal investigative authority into financial transactions may implicate the Fourth Amendment's protections against unreasonable searches and seizures; under Carpenter v. United States (2018), comprehensive digital financial records could require a warrant, depending on how the Secret Service exercises its new investigative powers.
Checks and balances
The executive branch — specifically the Secret Service and FinCEN — gains expanded investigative and reporting authority; checks include congressional oversight through the GAO review mandate, existing judicial warrant requirements for searches, and the voluntary nature of the FinCEN Exchange partnership.
Historical precedent
The Anti-Money Laundering Act of 2020 previously expanded federal information-sharing and reporting requirements in this space, and this bill directly extends and evaluates provisions of that law.