Bill Summary
The "OFAC Licensure for Investigators Act" is legislation aimed at enhancing the capabilities of private sector firms to conduct investigations related to financial transactions. Under this Act, the Office of Foreign Assets Control (OFAC) is required to establish a pilot program within one year of its enactment. This program will allow private sector firms to obtain a license to carry out nominal financial transactions that aid in their investigative efforts.
Key components of the Act include:
1. **Pilot Program Creation**: OFAC must develop a pilot program facilitating the licensing of private firms for specific financial activities related to investigations.
2. **Coordination with Financial Crimes Enforcement Network**: The program will be coordinated with the Financial Crimes Enforcement Network (FinCEN) to support the exchange of information regarding financial crimes.
3. **Reporting Requirements**: Participating firms must submit detailed monthly reports on their activities under the license to OFAC. Additionally, OFAC is mandated to report annually to Congress on the program's operations, including the number of licenses requested and granted, and an evaluation of the program's effectiveness.
4. **Classified Briefing**: Following each report to Congress, OFAC will provide a classified briefing containing more sensitive details about the program's operation and findings.
5. **Program Duration**: The pilot program is set to run for five years, after which it will be evaluated for potential continuation or improvements.
Overall, the Act is designed to enhance investigative efforts in the private sector while ensuring oversight and accountability through reporting and coordination with federal agencies.
Possible Impacts
Here are three examples of how the OFAC Licensure for Investigators Act could affect people:
1. **Enhanced Investigative Capabilities for Private Sector Firms**: By allowing private sector firms to conduct nominal financial transactions as part of their investigations, the Act enables these firms to gather and analyze financial data more effectively. This could lead to improved capabilities in tracking illicit financial activities, such as money laundering or fraud, ultimately benefiting consumers and society by promoting transparency and accountability in financial systems.
2. **Increased Regulatory Oversight and Compliance Burden**: Private sector firms that obtain licenses under this Act will be required to submit detailed monthly reports to the Office of Foreign Assets Control (OFAC) regarding their activities. This reporting requirement may increase the compliance burden on these firms, potentially leading to additional administrative costs and resource allocation. Smaller firms, in particular, may find it challenging to manage these reporting obligations, possibly affecting their operational efficiency.
3. **Greater Scrutiny of Financial Transactions**: The establishment of a pilot program could lead to heightened scrutiny of financial transactions, both for the firms involved and for the individuals or entities they investigate. As firms report on the transactions they conduct, there may be an increased awareness and monitoring of financial activities, which could deter potential wrongdoers but might also raise privacy concerns for individuals whose transactions are scrutinized as part of these investigations.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1450 Referred in Senate (RFS)]
<DOC>
119th CONGRESS
1st Session
H. R. 1450
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 22, 2025
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
To require the Office of Foreign Assets Control to develop a program
under which private sector firms may receive a license to conduct
nominal financial transactions in furtherance of the firms'
investigations, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``OFAC Licensure for Investigators
Act''.
SEC. 2. SENDING AND RECEIVING OF NOMINAL AMOUNTS.
(a) In General.--The Director of the Office of Foreign Assets
Control shall, not later than 1 year after the date of the enactment of
this section, establish a pilot program under which a private sector
firm may receive a license to conduct nominal financial transactions in
furtherance of the firm's investigations.
(b) Coordination.--When establishing and carrying out the pilot
program required under subsection (a), the Director of the Office of
Foreign Assets Control shall coordinate with the Director of the
Financial Crimes Enforcement Network for the purposes of supporting
activities of the Financial Crimes Enforcement Network Exchange, as
described in section 310(d) of title 31 of the United States Code.
(c) Reporting on Activities.--Each private sector firm that
receives a license described under subsection (a) shall submit a
detailed monthly report to the Director of the Office of Foreign Assets
Control on the activities of the firm conducted under such license.
(d) Report to Congress.--
(1) In general.--On the date that is 1 year after the date
on which the pilot program is established under this section,
and annually thereafter until the end of the 1-year period
beginning on the date the pilot program is terminated, the
Director of the Office of Foreign Assets Control shall submit a
report to the Committees on Financial Services and Foreign
Affairs of the House of Representatives and the Committees on
Banking, Housing, and Urban Affairs and Foreign Relations of
the Senate containing--
(A) the number of licenses requested under the
pilot program;
(B) the number of licenses granted under the pilot
program; and
(C) a broad discussion of the utility of the pilot
program.
(2) Classified briefing.--After submission of each report
required under paragraph (1), the Director of the Office of
Foreign Assets Control shall provide the Committees on
Financial Services and Foreign Affairs of the House of
Representatives and the Committees on Banking, Housing, and
Urban Affairs and Foreign Relations of the Senate with a
classified briefing containing--
(A) additional detail on the applicants for a
license under the pilot program;
(B) identification of the firms granted a license;
(C) information on the operation of the pilot
program, including how long each license lasted and the
personnel needed to manage the pilot program;
(D) information gleaned by the Office of Foreign
Assets Control from running the pilot program;
(E) the utility of that information;
(F) any obstacles to the operation or utility of
the pilot program; and
(G) any recommendations for improving or extending
the pilot program.
(e) Termination.--The pilot program established by the Director of
the Office of Foreign Assets Control under subsection (a) shall
terminate on the date that is 5 years after the date on which the
Director of the Office of Foreign Assets Control establishes such
program.
Passed the House of Representatives July 21, 2025.
Attest:
KEVIN F. MCCUMBER,
Clerk.