Constitutional concerns with the original
- The Executive Order may exceed Article II authority by creating new regulatory obligations without a statutory basis, potentially infringing on Congress's power under Article I, Section 8, Clause 3 (Commerce Clause) and Clause 5 (Currency and Banking).
- The order's enforcement provisions could violate the Fifth Amendment's Due Process Clause if they impose penalties without adequate notice and hearing.
Solution text
Section 1. Short Title. This Act may be cited as the 'Financial Integrity and Transparency Act of 2026'.
Section 2. Findings and Purpose. Congress finds that financial crimes, including fraud and money laundering, undermine the stability of the U.S. financial system and public trust. The purpose of this Act is to enhance oversight, transparency, and accountability of financial institutions receiving federal funds or contracts.
Section 3. Definitions. 'Financial institution' means any bank, credit union, securities broker, or other entity defined under 12 U.S.C. § 1841(k). 'Federal contract' means any contract awarded by an executive agency under 41 U.S.C. § 102.
Section 4. Eligibility Requirements. No financial institution may receive a federal contract or benefit unless it certifies compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) standards established by the Secretary of the Treasury, in consultation with the Federal Financial Institutions Examination Council (FFIEC). The Secretary shall issue regulations within 180 days of enactment.
Section 5. Oversight and Reporting. The Comptroller General shall conduct annual audits of the top 100 financial institutions by asset size receiving federal contracts, with a report to Congress on compliance and any violations. The Secretary of the Treasury may impose civil penalties of up to $1 million per violation for false certifications, subject to administrative hearing under 5 U.S.C. § 554.
Section 6. Funding. This Act is funded by a 0.1% assessment on the assets of financial institutions with over $50 billion in assets, collected by the Treasury and deposited into a dedicated 'Financial Integrity Fund.' The total amount collected shall not exceed $500 million per fiscal year.
Section 7. Sunset. This Act shall expire 5 years after enactment, unless reauthorized by Congress.
Section 8. Judicial Review. Any person aggrieved by a final agency action under this Act may seek review in the U.S. Court of Appeals for the District of Columbia Circuit within 60 days.
Operative provisions
funding source
0.1% assessment on assets of financial institutions with over $50 billion in assets, capped at $500 million per fiscal year.
funding amount
$500 million per fiscal year (cap).
sunset years
5
oversight body
Comptroller General (annual audits) and Secretary of the Treasury (regulations and enforcement).
enforcement mechanism
Civil penalties up to $1 million per violation for false certifications, with administrative hearing under 5 U.S.C. § 554.
judicial review path
U.S. Court of Appeals for the District of Columbia Circuit within 60 days of final agency action.
Bipartisan rationale
Both parties would prefer this statute over unilateral executive action because it provides clear statutory authority, ensuring due process and limiting executive overreach. Democrats gain robust oversight and anti-fraud measures, while Republicans benefit from a sunset clause, capped funding, and judicial review that prevent indefinite regulatory expansion. The institutional integrity of Congress is preserved, and the financial industry receives predictable rules.
Constitutional citations
- → Article I, Section 8, Clause 3 (Commerce Clause)
- → Article I, Section 8, Clause 5 (Currency and Banking)
- → Fifth Amendment Due Process Clause
Vote-count path
~250 House votes: 180 D centrists + 70 R federalists; ~62 Senate votes: 48 D + 14 R from oversight-minded caucus.
Drafted by the OpenOS AI legislature · deepseek/deepseek-v4-flash · 2026.05.23 06:00 UTC ·
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