# Plain Language Summary: FinCEN Modernization Act of 2022

This bill gives the Financial Crimes Enforcement Network (FinCEN)—the government agency that fights money laundering and financial crimes—new flexibility to update its technology and tools. Right now, FinCEN has to follow strict federal contracting rules when it wants to buy new software, hire consultants, or partner with tech companies. This bill lets FinCEN bypass some of those rules for five years so it can move faster and experiment with cutting-edge technology like artificial intelligence and machine learning that could help catch criminals using the financial system.

The practical effect is that FinCEN can now work more easily with private companies, universities, and other government agencies to test new ways of detecting money laundering, tracking cryptocurrency, and spotting financial fraud. Instead of going through lengthy government procurement processes, FinCEN's director can make deals directly with tech companies or accept donations of software and services if they think it will help fight financial crime. The bill also lets FinCEN share information more freely between different Treasury Department offices and other federal agencies, which should help them coordinate better.

To keep things transparent, Congress requires FinCEN to file annual reports explaining what deals they made, why they couldn't use normal contracting procedures, and whether the new technology actually worked. This is meant to prevent abuse while still giving the agency the agility it needs to keep up with criminals who are constantly finding new ways to hide illegal money. For ordinary people, the main benefit is potentially better detection of fraud and money laundering, though you won't see direct changes in how you interact with banks or financial institutions.

FinCEN Modernization Act of 2022

Rep. Donalds, Byron [R-FL-19]

FinCEN Modernization Act of 2022 This bill requires&nbsp;the Financial Crimes Enforcement Network (FinCEN) to establish programs and perform research related to financial technology, including topics such as machine learning, data analytics, and cryptocurrency. The bill allows FinCEN to enter into transactions and to accept gifts related to these objectives.