Cybercrime Bill Gives Secret Service More Authority Over Digital Finance Investigations

This bill, the "Combatting Money Laundering in Cyber Crime Act of 2025," significantly expands the U.S. Secret Service's authority to investigate financial crimes, particularly those linked to digital assets and cyber activities. It specifically adds violations related to operating unlicensed money transmitting businesses (under 18 U.S.C. 1960) to the Secret Service's duties. The agency also gains explicit power to investigate money laundering and "structured transactions" – that's when someone deliberately breaks up large financial transactions into smaller chunks to avoid triggering reporting requirements.

Wider Net for Financial Investigations

A key change here is broadening where the Secret Service can investigate fraud. By removing the term "federally insured" in relation to financial institutions (amending 18 U.S.C. 3056(b)), the bill extends the agency's reach beyond traditional banks. This could potentially include fintech companies, crypto exchanges, and other financial players not covered by federal deposit insurance. The bill uses the broad definition of "financial institution" from the Bank Secrecy Act (31 U.S.C. 5312), covering a wide range of entities. So, if you're using newer financial platforms or dealing in digital assets, these changes could mean more federal scrutiny of those transactions if they raise red flags for illicit activity.

Extended Timelines and Effectiveness Review

The legislation also tweaks timelines in existing financial regulations. It extends a specific period related to the Financial Crimes Enforcement Network (FinCEN) from 5 to 10 years (amending 31 U.S.C. 310(d)(3)(A)), possibly relating to data retention or information sharing protocols used in investigations. Similarly, it extends a timeframe from 6 to 10 years in the Otto Warmbier North Korea Nuclear Sanctions and Enforcement Act, likely impacting how long certain international financial measures or reporting requirements last. Finally, the bill orders the Government Accountability Office (GAO) to report within a year on how well parts of the Anti-Money Laundering Act of 2020 are actually working to help law enforcement tackle money laundering tied to cybercrimes. This signals a push to evaluate and potentially enhance existing tools against evolving digital threats.