Waters Statement on Bill to Strengthen Financial System and National Security

As Prepared for Delivery

Mr. Speaker, the FinCEN Improvement Act is a bill that will strengthen the Financial Crimes Enforcement Network (FinCEN), our national security, and our financial system. A form of this bipartisan bill was introduced last year, with the exact same language, and it unanimously passed the House on suspension by voice vote.

Currently, FinCEN works with Federal, State, local, and foreign law enforcement authorities in its anti-money laundering/counter terror financing objectives. Although Tribal law enforcement is a strong partner in fighting crime and safeguarding our country’s national security, they are not yet listed in the FinCEN statute alongside their law enforcement partners. Though FinCEN voluntarily works with Tribal law enforcement in these objectives, this legislation would make FinCEN’s assistance to Tribal law enforcement mandatory.

The bill will also amend FinCEN’s statute to protect against all forms of terrorism. As written, the underlying statute only requires the protection against international terrorism. While the United States faces a serious threat from foreign terrorist organizations, the threat from both “homegrown violent extremists” and domestic terrorists has sharply increased within the past several years. Although this type of terrorism has been less discussed in the news cycle, these terrorists are equally as dangerous as international terrorist organizations, if not more. In fact, a survey of 382 law enforcement agencies, conducted with the Police Executive Research Forum with funding from the National Institute of Justice, found that 74% of the law enforcement agencies reported anti-government extremism, such as sovereign citizen extremism, as one of the top terrorist threats in their jurisdictions. This part of the bill will ensure that a proper focus be paid to all forms of terrorism.

Additionally, this bill will require FinCEN to work with foreign financial intelligence units on anti-money laundering and counter terror financing initiatives with respect to emerging technologies such as cryptocurrencies, which are increasingly used by terrorists and transnational criminals. As the threat environment has changed with the birth and prominence of cryptocurrencies, online marketplaces, and the dark web, FinCEN needs to coordinate with and support our international partners who share our common anti-money laundering/counter terror financing goals. 

For these reasons, I am proud to support this legislation, and I congratulate Congresswoman Wexton and Congressman Riggleman for introducing this bill.

I urge all members to vote yes on this important legislation.

H.R. 1414 was introduced by Congresswoman Jennifer Wexton (D-VA) and Congressman Denver Riggleman (R-VA), Members of the House Financial Services Committee. The bill passed by a voice vote.

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