Last Thursday the "Advancing Innovation To Assist Law Enforcement Act" passed in the House of Representatives. The bill requires the Financial Crimes Enforcement Network (FinCEN) to conduct a study on the use of blockchain, AI, and other technologies by the agency and provide a report to the House Financial Services Committee and the Senate Banking Committee.
The Senate received the bill from the House on Monday where it was referred to the Senate Banking Committee. Representative Anthony Gonzalez (R-OH) sponsored the bill, with co-sponsors Representative Tom Emmer (R-MN) and Representative Ben McAdams (D-UT).
Bill Details: Study and ReportThe bill will require the Director of FinCEN to conduct a study on the status of implementation and use of blockchain, AI, and other technologies by the agency, how to leverage these technologies to make FinCEN’s data analysis more efficient and effective, and how to utilize the tech to more actively analyze and disseminate the information it collects to provide investigative leads to Federal, State and Tribal law enforcement officials.
FinCEN would be required to provide a report to the House Financial Services Committee and Senate Banking Committee on findings and determinations made in the study, best practices or significant concerns and how blockchain and other technologies could be used to fight financial crimes, and make any policy recommendations to Congress.
“This is a Fintech bill. This is a technology bill. This bill takes the first step to revolutionize the way law enforcement works...using artificial intelligence, blockchain and other emerging technologies.”Representative Patrick McHenry (R-NC) Ranking Member, House Financial Services Committee
Representative Patrick McHenry (R-NC), the House Financial Services Committee Ranking Member, during debate on the House floor noted, “This legislation takes the first step to revolutionize the way law enforcement works to locate and stop criminal activity in the financial services industry including potential terrorist threats, using artificial intelligence blockchain and other emerging technologies.
This is a FinTech bill. This is a technology bill. It drives them to utilize the most advanced computing and the most advanced technology anywhere in the world and the best practices when it comes to data analysis and use.”
The bill’s sponsor, Representative Anthony Gonzalez (R-OH) noted, “This bill takes a stand to block a major tool used by cartels, terrorist organizations, traffickers and the like to finance their illegal activities and put our nation and the people living in it at risk. Money laundering enables the shipment of deadly drugs like opioids and fentanyl into communities like mine in Ohio that have been decimated by the opioid crisis.
Money laundering finances cartels who wreak havoc on our southern border and the communities that surround it … proliferates the horrors of human trafficking which continues to exist across our country despite government and private industry attempts to better identify victims and cut off trafficking routes.”
“This bill is a recognition of that potential and we're happy that FinCEN is being encouraged to solve some of the trickiest problems in finance using this technology."Kristin Smith, Director of the Blockchain Association
Kristin Smith, Director of the Blockchain Association, a leading trade association of industry blockchain leaders advocating for the innovation and collaboration that will unlock the tremendous potential in the blockchain community commented, “The potential of blockchain technology to revolutionize entire sectors of the global economy is just beginning to be understood.
This bill us a recognition of that potential and we're happy that FinCEN is being encouraged to solve some of the trickiest problems in finance using this technology.
"This was Representative Gonzalez’s first bill, which he described as a bi-partisan effort with the help of Democratic co-sponsor, Representative McAdams (D-UT) joining the effort.
The Democrats solidified their support on the as well for this bill and with a Democratic co-sponsorDelegate Mike San Nicolas (D) of Guam noted, “This bill turns the lens onto the Financial Crimes Enforcement Network, or FinCen, look at its use of Artificial Intelligence, digital identity technology, blockchain and other innovative technologies.”
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Jason BrettI am a former U.S. Regulator with the FDIC, compliance examiner for the Making Home Affordable Program (HAMP) with U.S. Treasury, and have been active in bitcoin and bl... Read More 
Last Thursday the "Advancing Innovation To Assist Law Enforcement Act" passed in the House of Representatives. The bill requires the Financial Crimes Enforcement Network (FinCEN) to conduct a study on the use of blockchain, AI, and other technologies by the agency and provide a report to the House Financial Services Committee and the Senate Banking Committee.
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