This report examines the Financial Reporting Threshold Modernization Act, which would update the dollar amounts that trigger financial disclosure requirements for banks and other financial institutions. The changes aim to adjust these thresholds to reflect current economic conditions and reduce unnecessary reporting burdens while maintaining appropriate oversight of financial transactions. The Financial Services Committee reviewed how these modernized thresholds would affect banks' compliance costs and the government's ability to monitor financial activity.
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House Report 119-556 - FINANCIAL REPORTING THRESHOLD MODERNIZATION ACT
[House Report 119-556]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 119-556
=======================================================================
FINANCIAL REPORTING THRESHOLD
MODERNIZATION ACT
----------------
March 19, 2026.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
----------------
Mr. Hill of Arkansas, from the Committee on Financial Services,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 1799]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 1799) to update thresholds for certain currency
transaction reports and suspicious activity reports, and for
other purposes, having considered the same, reports favorably
thereon with an amendment and recommends that the bill as
amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 3
Background and Need for Legislation.............................. 3
Committee Consideration.......................................... 4
Related Hearings................................................. 5
Committee Votes.................................................. 6
Committee Oversight Findings..................................... 10
Performance Goals and Objectives................................. 10
Committee Cost Estimate.......................................... 10
New Budget Authority and CBO Cost Estimate....................... 10
Unfunded Mandates Statement...................................... 12
Earmark Statement................................................ 13
Federal Advisory Committee Act Statement......................... 13
Applicability to the Legislative Branch.......................... 13
Duplication of Federal Programs.................................. 13
Section-by-Section Analysis of the Legislation................... 13
Changes in Existing Law Made by the Bill, as Reported............ 14
Documents Included by Unanimous Consent.......................... 35
Minority Views................................................... 69
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Financial Reporting Threshold
Modernization Act''.
SEC. 2. UPDATING THRESHOLDS FOR CERTAIN CURRENCY TRANSACTION REPORTS
AND SUSPICIOUS ACTIVITY REPORTS.
(a) Thresholds for Certain Currency Transaction Reports.--
(1) Currency transaction reports.--The Secretary of the
Treasury shall--
(A) not later than the end of the 180-day period
beginning on the date of the enactment of this Act,
revise regulations issued with respect to sections 5313
and 5315 of title 31, United States Code, to update
each $10,000 threshold amount in such regulations to
$30,000; and
(B) every 5 years, update each such threshold amount
to reflect the change in the Consumer Price Index for
All Urban Consumers published by the Bureau of Labor
Statistics of the Department of Labor, which shall be
rounded to the nearest $500.
(2) Threshold for reports relating to coins and currency
received in nonfinancial trade or business.--Section 5331 of
title 31, United States Code, is amended--
(A) by striking ``$10,000'' each place such term
appears in heading or text and inserting ``$30,000'';
and
(B) by adding at the end the following:
``(e) Updates for Inflation.--Every 5 years, the Secretary of the
Treasury shall update each dollar figure under this section to reflect
the change in the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics of the Department of Labor,
which shall be rounded to the nearest $500.''.
(b) Thresholds for Suspicious Activity Reports.--Each Federal
department or agency that issues regulations with respect to reports on
suspicious transactions described under section 5318(g) of title 31,
United States Code, shall--
(1) not later than the end of the 180-day period beginning on
the date of the enactment of this Act, update each $5,000
threshold amount in such regulations to $10,000 and each $2,000
threshold amount in such regulation to $3,000; and
(2) every 5 years, update each such threshold amount to
reflect the change in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics of the
Department of Labor, which shall be rounded to the nearest
$500.
(c) Updating the Money Services Business Definition Thresholds.--The
Secretary of the Treasury shall--
(1) not later than the end of the 180-day period beginning on
the date of the enactment of this Act, revise section
1010.100(ff) of title 31, Code of Federal Regulations, to
update each $1,000 threshold amount in such regulations to
$3,000; and
(2) every 5 years, update each such threshold amount to
reflect the change in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics of the
Department of Labor, which shall be rounded to the nearest
$500.
(d) Review and Report.--Not later than 360 days after the date of
enactment of this Act, the Secretary of the Treasury shall, in
consultation with private sector stakeholders and law enforcement--
(1) review the forms and reporting and recordkeeping
requirements issued pursuant to sections 5313, 5315, and 5318
of title 31, United States Code, which shall include an
analysis on the aggregation, prioritization, and automation of
those forms and requirements, to ensure that such forms and
reporting requirements are effective and efficient in
identifying illicit finance activity;
(2) update the forms and requirements described in paragraph
(1) as the Secretary of the Treasury determines necessary and
consistent with section 5318(g)(5) of title 31, United States
Code;
(3) conduct the reviews and submit the reports required under
sections 6204, 6205, and 6216 of the Anti-Money Laundering Act
of 2020 (division F of the William M. (Mac) Thornberry National
Defense Authorization Act for Fiscal Year 2021; 134 Stat. 4569;
31 U.S.C. 5313 note, 31 U.S.C. 5311 note); and
(4) submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a report that--
(A) summarizes the results of the review conducted
under paragraph (1); and
(B) includes recommendations for updating the forms
and requirements described in paragraph (1).
SEC. 3. TESTIMONY BY THE DIRECTOR OF FINCEN.
Section 5336(c)(11)(A) of title 31, United States Code, is amended by
striking ``5 years'' and inserting ``10 years''.
Purpose and Summary
H.R. 1799, the Financial Reporting Threshold Modernization
Act, was introduced on March 3, 2025, by Republican
Representative Barry Loudermilk (GA-11). H.R. 1799 updates the
threshold for automatic domestic currency transaction reports
(CTRs) from $10,000 to $30,000. It would also update certain
thresholds for suspicious activity reports (SARs) where such
thresholds exist. The bill would require Treasury to review and
submit a report to Congress on Bank Secrecy Act (BSA) forms,
reporting, and record-keeping requirements to ensure these
forms remain effective and efficient. Finally, it would
permanently index the CTR threshold to inflation every five
years.
Background and Need for Legislation
On January 1, 2021, Congress enacted the William M.
Thornberry National Defense Authorization Act for Fiscal Year
2021 (FY21 NDAA). Division F of the FY21 NDAA, also known as
the Anti-Money Laundering Act of 2020 (AMLA), made significant
reforms to the U.S. anti-money laundering regime. AMLA directed
the Financial Crimes Enforcement Network (FinCEN) to assess the
appropriateness of BSA thresholds, including SARs and CTRs, and
report its findings to Congress, including potential
recommendations to raise them. FinCEN has yet to fulfill this
requirement even though the report was due on January 1, 2022.
Since its enactment in 1970, the BSA has served as the
cornerstone of the U.S. anti-money laundering and counter-
terrorism finance regime. By requiring financial institutions
to maintain records and file reports such as CTRs and SARs, the
BSA, as amended over the years, has created an extensive
framework for detecting and deterring financial crime. While
the BSA has generated copious amounts of financial intelligence
to support law enforcement investigations and international
cooperation, questions around its effectiveness persist.
The $10,000 threshold for CTRs was established by the
Treasury Department after the BSA was enacted. In 1972, $10,000
represented a substantially different level of value for
consumers than it does today. According to the U.S. Bureau of
Labor Statistics' CPI Inflation Calculator, $10,000 in 1972 has
the same purchasing power as approximately $77,000 in December
2025.
SARs were formally established in 1996 through regulation,
pursuant to the Annunzio-Wylie Anti-Money Laundering Act of
1992. In 1996, FinCEN implemented the SAR framework, creating a
standardized, confidential system for reporting potentially
illicit activity based on risk and behavior rather than any
given transaction size alone.
In 2025, FinCEN reported that approximately 4.7 million
SARs and 20.5 million CTRs were filed for FY24, with roughly
12,850 SARs and 56,000 CTRs filed daily from 324,000 registered
financial institutions and other e-filers.\1\ In a notice from
February 2024, FinCEN reaffirmed, from analysis and
calculations performed in 2020, that the estimated burden for
financial institutions equated to 1.98 hours per SAR.\2\
However, the Bank Policy Institute (BPI) conducted a survey
amongst 15 of its member institutions, all with at least $100
billion in assets, and found that the average burden estimate
of a SAR filing was actually 21.41 hours per SAR.\3\
---------------------------------------------------------------------------
\1\Financial Crimes Enforcement Network, FinCEN Year in Review for
Fiscal Year 2024, 3 (2025).
\2\Financial Crimes Enforcement Network, 89 Fed. Reg. 9913
(February 12, 2024) (proposed rule).
\3\Letter from Greg Rozansky, Senior Vice President, Senior
Associate, General Counsel, Regulatory Affairs, Bank Policy Institute,
to the Policy Division, Financial Crimes Enforcement Network (April 12,
2024).
---------------------------------------------------------------------------
CTRs are the reports that would be most affected by
threshold changes as they are instruments that capture single
cash transactions over a fixed amount ($10,000 currently),
regardless of any risk associated with that transaction. For
example, if you were to pay $11,000 in cash for a new HVAC
system at your home, a CTR would be filed despite the
transaction being entirely lawful and routine. While a single
CTR does not imply wrongdoing, the accumulation and retention
of such records within your financial institution's systems
could negatively contribute to broader customer risk
assessments over time. Reducing low-value CTR noise by
increasing the threshold to $30,000 would improve FinCEN's
ability to detect small-dollar schemes and surface meaningful
transaction patterns.
Committee Consideration
119TH CONGRESS
On March 3, 2025, Representative Loudermilk introduced H.R.
1799, the Financial Reporting Threshold Modernization Act, with
Representatives Andy Barr (R-KY), Troy Downing (R-MT), and Tim
Moore (R-NC) as original cosponsors. Representatives John Rose
(R-TN), Gus Bilirakis (R-FL), Mike Collins (R-GA), Buddy Carter
(R-GA), Russ Fulcher (R-ID), Thomas Massie (R-KY), Nicholas
Begich (R-AK), Darren Soto (D-FL), Chuck Fleischmann (R-TN),
Zach Nunn (R-IA), Sheri Biggs (R-SC), Mike Rogers (R-AL) Mike
Ezell (R-MS), Richard Hudson (R-NC), Diana Harshbarger (R-TN),
Celeste Maloy (R-UT), and Pat Harrigan (R-NC) were added
subsequently as cosponsors.
The bill was referred solely to the Committee on Financial
Services. This bill was attached to the April 1, 2025,
Subcommittee on National Security, Illicit Finance, and
International Financial Institutions hearing titled ``Following
the Money: Tools and Techniques to Combat Fraud.''
On January 22, 2026, the Committee on Financial Services
met in open session to consider, among others, H.R. 1799. The
Committee ordered H.R. 1799, as amended, to be reported with a
favorable recommendation to the House of Representatives.
118TH CONGRESS
On June 11, 2024, Representative Loudermilk introduced H.R.
8686, the Financial Reporting Threshold Modernization Act with
Representatives Dan Meuser (R-PA), and Byron Donalds (R-FL) as
original cosponsors. Representative Barr was added subsequently
as a cosponsor. This bill is an earlier iteration of H.R. 1799.
The bill was referred solely to the Committee on Financial
Services. There was no further action on H.R. 8686 in the 118th
Congress.
117TH CONGRESS
On March 18, 2021, Representative Loudermilk introduced
H.R. 2040, the Financial Reporting Threshold Modernization Act
with Representatives Barr, Tom Emmer (R-MN), and Anthony
Gonzalez (R-OH) as original cosponsors. Representatives Ralph
Norman (R-SC) and Scott Fitzgerald (R-WI) were added
subsequently as cosponsors. This bill is an earlier iteration
of H.R. 1799. The bill was referred solely to the Committee on
Financial Services. There was no further action on H.R. 2040 in
the 117th Congress.
116TH CONGRESS
On January 9, 2019, Representative Loudermilk introduced
H.R. 388, the Financial Reporting Threshold Modernization Act
with Representatives Scott Tipton (R-CO) and Emmer as original
cosponsors. Representatives French Hill (R-AR), Barr, Greg
Gianforte (R-MT), Steve Stivers (R-OH), Clay Higgins (R-LA),
Gonzalez, and Larry Bucshon (R-IN) were added subsequently as
cosponsors. This bill is an earlier iteration of H.R. 1799. The
bill was referred solely to the Committee on Financial
Services. There was no further action on H.R. 388 in the 116th
Congress.
115TH CONGRESS
On September 20, 2018, Representative Loudermilk introduced
H.R. 6850, the Financial Reporting Threshold Modernization Act.
Representatives Massie, Emmer, and Tipton were subsequently
added as cosponsors. This bill is an earlier iteration of H.R.
1799. The bill was referred solely to the Committee on
Financial Services. There was no further action on H.R. 6850 in
the 115th Congress.
Related Hearings
Pursuant to clause 3(c)(6) of rule XIII of the Rules of the
House of Representatives, the following hearing was used to
develop H.R. 1799:
On April 1, 2025, the Subcommittee on National Security,
Illicit Finance, and International Financial Institutions held
a hearing titled ``Following the Money: Tools and Techniques to
Combat Fraud.'' The Subcommittee heard testimony from: Mr.
Darrin McLaughlin, Executive Vice President-Chief BSA/AML &
Sanctions Officer, Flagstar Bank on behalf of the American
Bankers Association (ABA); Ms. Jacqueline Burns Koven, Head of
Cyber Threat Intelligence, Chainalysis; Mr. Jeff Brabant, Vice
President, Federal Government Relations, National Federation of
Independent Business (NFIB); and Ms. Kathy Stokes, Director,
Fraud Prevention Programs, AARP.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee Report to include record
votes on the motion to report legislation and amendments
thereto.
On January 22, 2026, the Committee ordered H.R. 1799, as
amended, to be reported with a favorable recommendation to the
House by a recorded vote of 30 yeas and 24 nays, a quorum being
present. (Record Vote No. FC-240).
The Committee considered the following amendments to H.R.
1799:
Representative Loudermilk offered an
amendment in the nature of a substitute that added new
provisions to the introduced version of H.R. 1799. The
amendment incorporated inflation-based threshold
updates for Suspicious Activity Reports and Money
Services Businesses and clarified that all inflation
adjustments referenced in the bill require thresholds
to be rounded to the nearest $500. Additionally, the
amendment included a provision requiring the Secretary
of the Treasury to work with private sector
stakeholders and law enforcement to review and update
the CTR and SAR forms that are currently used for
reporting and recordkeeping requirements. Finally, a
third section was added to extend the sunset by five
years the requirement that the Director of FinCEN
testify in front of the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives.
This amendment was adopted by a voice vote.
Representative Stephen Lynch (D-MA) offered
an amendment (No. 6), designated AMEND_HR1799_9. This
amendment exempts certain bill requirements with
respect to scams. This amendment failed by a recorded
vote of 24 yeas and 30 nays, a quorum being present.
(Record Vote No. FC-238).
Representative Rashida Tlaib (D-MI) offered
an amendment (No. 7), designated AMEND_HR1799_15. This
amendment exempts certain bill requirements with
respect to businesses or associates of Jeffrey Epstein.
This amendment failed by a recorded vote of 25 yeas and
29 nays, a quorum being present. (Record Vote No. FC-
239).
Representative Maxine Waters (D-CA) offered
an amendment (No. 8), designated HR1799_001. This
amendment would exempt certain bill requirements with
respect to transnational criminal organizations and
related illicit activities. This amendment was defeated
by a voice vote.
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Committee Oversight Findings
Pursuant to clause 3(c) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee, based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives
are incorporated in the descriptive portions of this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the goal of H.R. 1799 is to modernize
the United States' anti-money laundering framework by updating
the BSA and refocusing it on identifying legitimate illicit
financial activity rather than overwhelming financial
institutions with unnecessary compliance burdens.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 1799. Clause
3(d)(2)(B) of that Rule provides that this requirement does not
apply when, as with the present report, the Committee adopts as
its own the cost estimate for the bill prepared by the Director
of the Congressional Budget Office.
New Budget Authority and CBO Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee adopts as its
own the cost estimate for the bill prepared by the Director of
the Congressional Budget Office.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The bill would:
Raise certain thresholds for reporting
transactions and suspicious activities to the Financial
Crimes Enforcement Network (FinCEN) and adjust those
amounts for inflation
Require the Department of Treasury to report
to the Congress annually on those reporting
requirements
Extend the requirement for the director of
FinCEN to testify annually before the Congress
Impose mandates on financial institutions if
federal financial regulators increase fees to implement
the bill
Estimated budgetary effects would mainly stem from:
Reducing collections of criminal and civil
penalties by raising the threshold for which businesses
are required to report to FinCEN
Administrative costs for FinCEN and other
financial regulators to amend their regulations
Bill summary: H.R. 1799 would raise certain thresholds for
reporting transactions and suspicious activities to the
Financial Crimes Enforcement Network (FinCEN) and adjust those
amounts for inflation every five years. For example, the bill
would increase the threshold for which financial institutions
and businesses are required to report transactions conducted in
cash from $10,000 to $30,000. The bill also would reduce the
number of money service businesses (entities that provide money
transfer services or payment instruments) that are subject to
those reporting requirements.
H.R. 1799 would require the Department of the Treasury, in
consultation with the private sector and law enforcement, to
report to the Congress on the effectiveness of the reporting
requirements for currency transactions and suspicious activity
and would extend through 2031 the requirement for the Director
of FinCEN to testify annually before the Congress.
Estimated Federal cost: The costs of the legislation fall
within budget functions 370 (commerce and housing credit) and
750 (administration of justice).
Basis of estimate: CBO assumes that the bill will be
enacted in fiscal year 2026.
Direct spending and revenues: In total, CBO estimates that
enacting H.R. 1799 would decrease revenues and direct spending
by less than $500,000 over the 2026-2036 period; the net effect
on the deficit would be insignificant.
Enacting H.R. 1799 would require several agencies whose
operating costs are classified as direct spending to amend
their regulations. Because some of those agencies collect fees
from financial institutions to offset their operating costs,
CBO estimates that enacting the bill would, on net, increase
direct spending for those agencies by less than $500,000 in
every year and over the 2026-2036 period.
Additionally, costs incurred by the Federal Reserve reduce
remittances to the Treasury, which are recorded in the budget
as revenues. CBO estimates that enacting the bill would
decrease revenues by less than $500,000 over the 2026-2036
period.
Under current law, businesses that fail to submit reports
about suspicious activity or cash transactions, or structure
transactions to avoid reporting requirements, are subject to
civil and criminal penalties. CBO estimates that, by increasing
the threshold for which businesses are required to report to
FinCEN, the bill would reduce collections of those penalties by
a small amount. Civil penalties are deposited in the Treasury
and recorded in the budget as revenues. Criminal penalties are
recorded as revenues, deposited into the Crime Victims Fund,
and spent without further appropriation. CBO estimates that
enacting H.R. 1799 would reduce revenues and direct spending
from penalty collections by less than $500,000 over the 2026-
2036 period.
Spending subject to appropriation: Based on the costs of
similar activities, CBO estimates that implementing H.R. 1799
would cost less than $500,000 over the 2026-2031 period for
FinCEN and other agencies funded through annual appropriations
to comply with the bill's requirements. Any related spending
would be subject to the availability of appropriated funds.
CBO estimates that the cost to the Securities and Exchange
Commission (SEC) to implement H.R. 1799 would be insignificant.
Because the SEC is authorized to collect fees each year to
offset its annual appropriation, CBO expects that the net
effect on discretionary spending over the 2026-2031 period
would be negligible, assuming appropriation actions consistent
with that authority.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. CBO estimates that enacting the bill would decrease
direct spending and revenues by less than $500,000 in every
year and over the 2026-2036 period.
Increase in long-term net direct spending and deficits: CBO
estimates that enacting H.R. 1799 would not increase net direct
spending in any of the four consecutive 10-year periods
beginning in 2037.
CBO estimates that enacting H.R. 1799 would not
significantly increase on-budget deficits in any of the four
consecutive 10-year periods beginning in 2037.
Mandates: If federal financial regulators increase annual
fees to offset the costs of implementing the bill, H.R. 1799
would increase the costs of an existing private-sector mandate
on entities required to pay those fees. CBO estimates that the
incremental cost of the mandate would be small and would fall
well below the annual threshold established in the Unfunded
Mandates Reform Act (UMRA) for private-sector mandates ($214
million in 2026, adjusted annually for inflation).
The bill contains no intergovernmental mandates as defined
in UMRA.
Estimate prepared by: Federal costs: Jeremy Crimm;
Mandates: Rachel Austin.
Estimate reviewed by: Justin Humphrey, Chief, Finance,
Housing, and Education Cost Estimates Unit; Kathleen
FitzGerald, Chief, Public and Private Mandates Unit; H. Samuel
Papenfuss, Deputy Director of Budget Analysis.
Estimate approved by: Phillip L. Swagel, Director,
Congressional Budget Office.
Unfunded Mandates Statement
Pursuant to Section 423 of the Congressional Budget and
Impoundment Control Act of 1974, Pub. L. No. 93-344 (as amended
by Section 101(a)(2) of the Unfunded Mandates Reform Act of
1995, Pub. L. No. 104-4), the Committee adopts as its own the
cost estimate prepared by the Director of the Congressional
Budget Office (CBO) pursuant to section 402 of the
Congressional Budget and Impoundment Control Act of 1974.
Earmark Statement
In compliance with clause 9 of rule XXI of the Rules of the
House of Representatives, this bill, as reported, contains no
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI.
Federal Advisory Committee Act Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
Federal program, including any program that was included in a
report to Congress pursuant to section 21 of the Public Law
111-139 or the most recent Catalog of Federal Domestic
Assistance.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 provides the short title as the ``Financial
Reporting Threshold Modernization Act''.
Section 2. Inclusion of the Secretary of Agriculture on CFIUS
Section 2 updates and modernizes multiple financial
reporting thresholds under the Bank Secrecy Act to reflect
inflation and changes in financial activity, while preserving
anti-money laundering and counter-illicit finance safeguards.
Specifically, Section 2 directs the Secretary of the
Treasury to revise regulations related to CTRs by increasing
the reporting threshold from $10,000 to $30,000. The section
also amends reporting requirements for non-financial trades or
businesses to reflect the same $30,000 threshold for cash
transaction reporting. This section requires Treasury to adjust
these threshold amounts every five years based on changes in
the Consumer Price Index as a way to ensure that the thresholds
remain current over time.
Section 2 updates SAR thresholds by increasing the
aggregate reporting threshold from $5,000 to $10,000 and the
$2,000 threshold to $3,000. Treasury is required to adjust
these SAR threshold amounts every five years based on changes
in the Consumer Price Index as a way to ensure that the
thresholds remain current over time. Section 2 further
modernizes Money Service Business (MSB) thresholds by directing
Treasury to increase the $1,000 threshold to $3,000. Treasury
is required to adjust this threshold amount every five years
based on changes in the Consumer Price Index as a way to ensure
that the thresholds remain current over time.
Finally, Section 2 requires the Secretary of the Treasury
to work with private sector stakeholders and law enforcement to
review and update the CTR and SAR forms that are currently used
for reporting and recordkeeping requirements. A report
summarizing the results of the review and all subsequent
recommendations will be made available to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services in the House of
Representatives.
Section 3. Testimony by the Director of FinCEN
Section 3 amends Section 5336(c)(11)(A) of title 31 by
striking ``5'' and inserting ``10.'' This extends the sunset by
5 years, the requirement that the Director of the Financial
Crimes Enforcement Network testify before the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives
on the implementation of the Anti-Money Laundering Act of 2020
and the amendments made by that Act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
TITLE 31, UNITED STATES CODE
* * * * * * *
SUBTITLE IV--MONEY
* * * * * * *
CHAPTER 53--MONETARY TRANSACTIONS
* * * * * * *
SUBCHAPTER II--RECORDS AND REPORTS ON MONETARY
INSTRUMENTS TRANSACTIONS
* * * * * * *
Sec. 5331. Reports relating to coins and currency received in
nonfinancial trade or business
(a) Coin and Currency Receipts of More Than [$10,000]
$30,000.--Any person--
(1)(A) who is engaged in a trade or business, and
(B) who, in the course of such trade or business,
receives more than [$10,000] $30,000 in coins or
currency in 1 transaction (or 2 or more related
transactions), or
(2) who is required to file a report under section
6050I(g) of the Internal Revenue Code of 1986,
shall file a report described in subsection (b) with respect to
such transaction (or related transactions) with the Financial
Crimes Enforcement Network at such time and in such manner as
the Secretary may, by regulation, prescribe.
(b) Form and Manner of Reports.--A report is described in
this subsection if such report--
(1) is in such form as the Secretary may prescribe;
(2) contains--
(A) the name and address, and such other
identification information as the Secretary may
require, of the person from whom the coins or
currency was received;
(B) the amount of coins or currency received;
(C) the date and nature of the transaction;
and
(D) such other information, including the
identification of the person filing the report,
as the Secretary may prescribe.
(c) Exceptions.--
(1) Amounts received by financial institutions.--
Subsection (a) shall not apply to amounts received in a
transaction reported under section 5313 and regulations
prescribed under such section.
(2) Transactions occurring outside the united
states.--Except to the extent provided in regulations
prescribed by the Secretary, subsection (a) shall not
apply to any transaction if the entire transaction
occurs outside the United States.
(d) Currency Includes Foreign Currency and Certain Monetary
Instruments.--
(1) In general.--For purposes of this section, the
term ``currency'' includes--
(A) foreign currency; and
(B) to the extent provided in regulations
prescribed by the Secretary, any monetary
instrument (whether or not in bearer form) with
a face amount of not more than [$10,000]
$30,000.
(2) Scope of application.--Paragraph (1)(B) shall not
apply to any check drawn on the account of the writer
in a financial institution referred to in subparagraph
(A), (B), (C), (D), (E), (F), (G), (J), (K), (R), or
(S) of section 5312(a)(2).
(e) Updates for Inflation.--Every 5 years, the Secretary of
the Treasury shall update each dollar figure under this section
to reflect the change in the Consumer Price Index for All Urban
Consumers published by the Bureau of Labor Statistics of the
Department of Labor, which shall be rounded to the nearest
$500.
* * * * * * *
Sec. 5336. Beneficial ownership information reporting requirements
(a) Definitions.--In this section:
(1) Acceptable identification document.--The term
``acceptable identification document'' means, with
respect to an individual--
(A) a nonexpired passport issued by the
United States;
(B) a nonexpired identification document
issued by a State, local government, or Indian
Tribe to the individual acting for the purpose
of identification of that individual;
(C) a nonexpired driver's license issued by a
State; or
(D) if the individual does not have a
document described in subparagraph (A), (B), or
(C), a nonexpired passport issued by a foreign
government.
(2) Applicant.--The term ``applicant'' means any
individual who--
(A) files an application to form a
corporation, limited liability company, or
other similar entity under the laws of a State
or Indian Tribe; or
(B) registers or files an application to
register a corporation, limited liability
company, or other similar entity formed under
the laws of a foreign country to do business in
the United States by filing a document with the
secretary of state or similar office under the
laws of a State or Indian Tribe.
(3) Beneficial owner.--The term ``beneficial
owner''--
(A) means, with respect to an entity, an
individual who, directly or indirectly, through
any contract, arrangement, understanding,
relationship, or otherwise--
(i) exercises substantial control
over the entity; or
(ii) owns or controls not less than
25 percent of the ownership interests
of the entity; and
(B) does not include--
(i) a minor child, as defined in the
State in which the entity is formed, if
the information of the parent or
guardian of the minor child is reported
in accordance with this section;
(ii) an individual acting as a
nominee, intermediary, custodian, or
agent on behalf of another individual;
(iii) an individual acting solely as
an employee of a corporation, limited
liability company, or other similar
entity and whose control over or
economic benefits from such entity is
derived solely from the employment
status of the person;
(iv) an individual whose only
interest in a corporation, limited
liability company, or other similar
entity is through a right of
inheritance; or
(v) a creditor of a corporation,
limited liability company, or other
similar entity, unless the creditor
meets the requirements of subparagraph
(A).
(4) Director.--The term ``Director'' means the
Director of FinCEN.
(5) FinCEN.--The term ``FinCEN'' means the Financial
Crimes Enforcement Network of the Department of the
Treasury.
(6) FinCEN identifier.--The term ``FinCEN
identifier'' means the unique identifying number
assigned by FinCEN to a person under this section.
(7) Foreign person.--The term ``foreign person''
means a person who is not a United States person, as
defined in section 7701(a) of the Internal Revenue Code
of 1986.
(8) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term ``Indian tribe'' in section 102
of the Federally Recognized Indian Tribe List Act of
1994 (25 U.S.C. 5130).
(9) Lawfully admitted for permanent residence.--The
term ``lawfully admitted for permanent residence'' has
the meaning given the term in section 101(a) of the
Immigration and Nationality Act (8 U.S.C. 1101(a)).
(10) Pooled investment vehicle.--The term ``pooled
investment vehicle'' means--
(A) any investment company, as defined in
section 3(a) of the Investment Company Act of
1940 (15 U.S.C. 80a-3(a)); or
(B) any company that--
(i) would be an investment company
under that section but for the
exclusion provided from that definition
by paragraph (1) or (7) of section 3(c)
of that Act (15 U.S.C. 80a-3(c)); and
(ii) is identified by its legal name
by the applicable investment adviser in
its Form ADV (or successor form) filed
with the Securities and Exchange
Commission.
(11) Reporting company.--The term ``reporting
company''--
(A) means a corporation, limited liability
company, or other similar entity that is--
(i) created by the filing of a
document with a secretary of state or a
similar office under the law of a State
or Indian Tribe; or
(ii) formed under the law of a
foreign country and registered to do
business in the United States by the
filing of a document with a secretary
of state or a similar office under the
laws of a State or Indian Tribe; and
(B) does not include--
(i) an issuer--
(I) of a class of securities
registered under section 12 of
the Securities Exchange Act of
1934 (15 U.S.C. 78l); or
(II) that is required to file
supplementary and periodic
information under section 15(d)
of the Securities Exchange Act
of 1934 (15 U.S.C. 78o(d));
(ii) an entity--
(I) established under the
laws of the United States, an
Indian Tribe, a State, or a
political subdivision of a
State, or under an interstate
compact between 2 or more
States; and
(II) that exercises
governmental authority on
behalf of the United States or
any such Indian Tribe, State,
or political subdivision;
(iii) a bank, as defined in--
(I) section 3 of the Federal
Deposit Insurance Act (12
U.S.C. 1813);
(II) section 2(a) of the
Investment Company Act of 1940
(15 U.S.C. 80a-2(a)); or
(III) section 202(a) of the
Investment Advisers Act of 1940
(15 U.S.C. 80b-2(a));
(iv) a Federal credit union or a
State credit union (as those terms are
defined in section 101 of the Federal
Credit Union Act (12 U.S.C. 1752));
(v) a bank holding company (as
defined in section 2 of the Bank
Holding Company Act of 1956 (12 U.S.C.
1841)) or a savings and loan holding
company (as defined in section 10(a) of
the Home Owners' Loan Act (12 U.S.C.
1467a(a)));
(vi) a money transmitting business
registered with the Secretary of the
Treasury under section 5330;
(vii) a broker or dealer (as those
terms are defined in section 3 of the
Securities Exchange Act of 1934 (15
U.S.C. 78c)) that is registered under
section 15 of that Act (15 U.S.C. 78o);
(viii) an exchange or clearing agency
(as those terms are defined in section
3 of the Securities Exchange Act of
1934 (15 U.S.C. 78c)) that is
registered under section 6 or 17A of
that Act (15 U.S.C. 78f, 78q-1);
(ix) any other entity not described
in clause (i), (vii), or (viii) that is
registered with the Securities and
Exchange Commission under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.);
(x) an entity that--
(I) is an investment company
(as defined in section 3 of the
Investment Company Act of 1940
(15 U.S.C. 80a-3)) or an
investment adviser (as defined
in section 202 of the
Investment Advisers Act of 1940
(15 U.S.C. 80b-2)); and
(II) is registered with the
Securities and Exchange
Commission under the Investment
Company Act of 1940 (15 U.S.C.
80a-1 et seq.) or the
Investment Advisers Act of 1940
(15 U.S.C. 80b-1 et seq.);
(xi) an investment adviser--
(I) described in section
203(l) of the Investment
Advisers Act of 1940 (15 U.S.C.
80b-3(l)); and
(II) that has filed Item 10,
Schedule A, and Schedule B of
Part 1A of Form ADV, or any
successor thereto, with the
Securities and Exchange
Commission;
(xii) an insurance company (as
defined in section 2 of the Investment
Company Act of 1940 (15 U.S.C. 80a-2));
(xiii) an entity that--
(I) is an insurance producer
that is authorized by a State
and subject to supervision by
the insurance commissioner or a
similar official or agency of a
State; and
(II) has an operating
presence at a physical office
within the United States;
(xiv)(I) a registered entity (as
defined in section 1a of the Commodity
Exchange Act (7 U.S.C. 1a)); or
(II) an entity that is--
(aa)(AA) a futures commission
merchant, introducing broker,
swap dealer, major swap
participant, commodity pool
operator, or commodity trading
advisor (as those terms are
defined in section 1a of the
Commodity Exchange Act (7
U.S.C. 1a)); or
(BB) a retail foreign
exchange dealer, as described
in section 2(c)(2)(B) of that
Act (7 U.S.C. 2(c)(2)(B)); and
(bb) registered with the
Commodity Futures Trading
Commission under the Commodity
Exchange Act (7 U.S.C. 1 et
seq.);
(xv) a public accounting firm
registered in accordance with section
102 of the Sarbanes-Oxley Act of 2002
(15 U.S.C. 7212);
(xvi) a public utility that provides
telecommunications services, electrical
power, natural gas, or water and sewer
services within the United States;
(xvii) a financial market utility
designated by the Financial Stability
Oversight Council under section 804 of
the Payment, Clearing, and Settlement
Supervision Act of 2010 (12 U.S.C.
5463);
(xviii) any pooled investment vehicle
that is operated or advised by a person
described in clause (iii), (iv), (vii),
(x), or (xi);
(xix) any--
(I) organization that is
described in section 501(c) of
the Internal Revenue Code of
1986 (determined without regard
to section 508(a) of such Code)
and exempt from tax under
section 501(a) of such Code,
except that in the case of any
such organization that loses an
exemption from tax, such
organization shall be
considered to be continued to
be described in this subclause
for the 180-day period
beginning on the date of the
loss of such tax-exempt status;
(II) political organization
(as defined in section
527(e)(1) of such Code) that is
exempt from tax under section
527(a) of such Code; or
(III) trust described in
paragraph (1) or (2) of section
4947(a) of such Code;
(xx) any corporation, limited
liability company, or other similar
entity that--
(I) operates exclusively to
provide financial assistance
to, or hold governance rights
over, any entity described in
clause (xix);
(II) is a United States
person;
(III) is beneficially owned
or controlled exclusively by 1
or more United States persons
that are United States citizens
or lawfully admitted for
permanent residence; and
(IV) derives at least a
majority of its funding or
revenue from 1 or more United
States persons that are United
States citizens or lawfully
admitted for permanent
residence;
(xxi) any entity that--
(I) employs more than 20
employees on a full-time basis
in the United States;
(II) filed in the previous
year Federal income tax returns
in the United States
demonstrating more than
$5,000,000 in gross receipts or
sales in the aggregate,
including the receipts or sales
of--
(aa) other entities
owned by the entity;
and
(bb) other entities
through which the
entity operates; and
(III) has an operating
presence at a physical office
within the United States;
(xxii) any corporation, limited
liability company, or other similar
entity of which the ownership interests
are owned or controlled, directly or
indirectly, by 1 or more entities
described in clause (i), (ii), (iii),
(iv), (v), (vii), (viii), (ix), (x),
(xi), (xii), (xiii), (xiv), (xv),
(xvi), (xvii) (xix), or (xxi);
(xxiii) any corporation, limited
liability company, or other similar
entity--
(I) in existence for over 1
year;
(II) that is not engaged in
active business;
(III) that is not owned,
directly or indirectly, by a
foreign person;
(IV) that has not, in the
preceding 12-month period,
experienced a change in
ownership or sent or received
funds in an amount greater than
$1,000 (including all funds
sent to or received from any
source through a financial
account or accounts in which
the entity, or an affiliate of
the entity, maintains an
interest); and
(V) that does not otherwise
hold any kind or type of
assets, including an ownership
interest in any corporation,
limited liability company, or
other similar entity;
(xxiv) any entity or class of
entities that the Secretary of the
Treasury, with the written concurrence
of the Attorney General and the
Secretary of Homeland Security, has, by
regulation, determined should be exempt
from the requirements of subsection (b)
because requiring beneficial ownership
information from the entity or class of
entities--
(I) would not serve the
public interest; and
(II) would not be highly
useful in national security,
intelligence, and law
enforcement agency efforts to
detect, prevent, or prosecute
money laundering, the financing
of terrorism, proliferation
finance, serious tax fraud, or
other crimes.
(12) State.--The term ``State'' means any State of
the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth of the
Northern Mariana Islands, American Samoa, Guam, the
United States Virgin Islands, and any other
commonwealth, territory, or possession of the United
States.
(13) Unique identifying number.--The term ``unique
identifying number'' means, with respect to an
individual or an entity with a sole member, the unique
identifying number from an acceptable identification
document.
(14) United states person.--The term ``United States
person'' has the meaning given the term in section
7701(a) of the Internal Revenue Code of 1986.
(b) Beneficial Ownership Information Reporting.--
(1) Reporting.--
(A) In general.--In accordance with
regulations prescribed by the Secretary of the
Treasury, each reporting company shall submit
to FinCEN a report that contains the
information described in paragraph (2).
(B) Reporting of existing entities.--In
accordance with regulations prescribed by the
Secretary of the Treasury, any reporting
company that has been formed or registered
before the effective date of the regulations
prescribed under this subsection shall, in a
timely manner, and not later than 2 years after
the effective date of the regulations
prescribed under this subsection, submit to
FinCEN a report that contains the information
described in paragraph (2).
(C) Reporting at time of formation or
registration.--In accordance with regulations
prescribed by the Secretary of the Treasury,
any reporting company that has been formed or
registered after the effective date of the
regulations promulgated under this subsection
shall, at the time of formation or
registration, submit to FinCEN a report that
contains the information described in paragraph
(2).
(D) Updated reporting for changes in
beneficial ownership.--In accordance with
regulations prescribed by the Secretary of the
Treasury, a reporting company shall, in a
timely manner, and not later than 1 year after
the date on which there is a change with
respect to any information described in
paragraph (2), submit to FinCEN a report that
updates the information relating to the change.
(E) Treasury review of updated reporting for
changes in beneficial ownership.--The Secretary
of the Treasury, in consultation with the
Attorney General and the Secretary of Homeland
Security, shall conduct a review to evaluate--
(i) the necessity of a requirement
for corporations, limited liability
companies, or other similar entities to
update the report on beneficial
ownership information in paragraph (2),
related to a change in ownership,
within a shorter period of time than
required under subparagraph (D), taking
into account the updating requirements
under subparagraph (D) and the
information contained in the reports;
(ii) the benefit to law enforcement
and national security officials that
might be derived from, and the burden
that a requirement to update the list
of beneficial owners within a shorter
period of time after a change in the
list of beneficial owners would impose
on corporations, limited liability
companies, or other similar entities;
and
(iii) not later than 2 years after
the date of enactment of this section,
incorporate 2 into the
regulations, as appropriate, any
changes necessary to implement the
findings and determinations based on
the review required under this
subparagraph.
(F) Regulation requirements.--In promulgating
the regulations required under subparagraphs
(A) through (D), the Secretary of the Treasury
shall, to the greatest extent practicable--
(i) establish partnerships with
State, local, and Tribal governmental
agencies;
(ii) collect information described in
paragraph (2) through existing Federal,
State, and local processes and
procedures;
(iii) minimize burdens on reporting
companies associated with the
collection of the information described
in paragraph (2), in light of the
private compliance costs placed on
legitimate businesses, including by
identifying any steps taken to mitigate
the costs relating to compliance with
the collection of information; and
(iv) collect information described in
paragraph (2) in a form and manner that
ensures the information is highly
useful in--
(I) facilitating important
national security,
intelligence, and law
enforcement activities; and
(II) confirming beneficial
ownership information provided
to financial institutions to
facilitate the compliance of
the financial institutions with
anti-money laundering,
countering the financing of
terrorism, and customer due
diligence requirements under
applicable law.
(G) Regulatory simplification.--To simplify
compliance with this section for reporting
companies and financial institutions, the
Secretary of the Treasury shall ensure that the
regulations prescribed by the Secretary under
this subsection are added to part 1010 of title
31, Code of Federal Regulations, or any
successor thereto.
(2) Required information.--
(A) In general.--In accordance with
regulations prescribed by the Secretary of the
Treasury, a report delivered under paragraph
(1) shall, except as provided in subparagraph
(B), identify each beneficial owner of the
applicable reporting company and each applicant
with respect to that reporting company by--
(i) full legal name;
(ii) date of birth;
(iii) current, as of the date on
which the report is delivered,
residential or business street address;
and
(iv)(I) unique identifying number
from an acceptable identification
document; or
(II) FinCEN identifier in accordance
with requirements in paragraph (3).
(B) Reporting requirement for exempt entities
having an ownership interest.--If an exempt
entity described in subsection (a)(11)(B) has
or will have a direct or indirect ownership
interest in a reporting company, the reporting
company or the applicant--
(i) shall, with respect to the exempt
entity, only list the name of the
exempt entity; and
(ii) shall not be required to report
the information with respect to the
exempt entity otherwise required under
subparagraph (A).
(C) Reporting requirement for certain pooled
investment vehicles.--Any corporation, limited
liability company, or other similar entity that
is an exempt entity described in subsection
(a)(11)(B)(xviii) and is formed under the laws
of a foreign country shall file with FinCEN a
written certification that provides
identification information of an individual
that exercises substantial control over the
pooled investment vehicle in the same manner as
required under this subsection.
(D) Reporting requirement for exempt
subsidiaries.--In accordance with the
regulations promulgated by the Secretary, any
corporation, limited liability company, or
other similar entity that is an exempt entity
described in subsection (a)(11)(B)(xxii),
shall, at the time such entity no longer meets
the criteria described in subsection
(a)(11)(B)(xxii), submit to FinCEN a report
containing the information required under
subparagraph (A).
(E) Reporting requirement for exempt
grandfathered entities.--In accordance with the
regulations promulgated by the Secretary, any
corporation, limited liability company, or
other similar entity that is an exempt entity
described in subsection (a)(11)(B)(xxiii),
shall, at the time such entity no longer meets
the criteria described in subsection
(a)(11)(B)(xxiii), submit to FinCEN a report
containing the information required under
subparagraph (A).
(3) FinCEN identifier.--
(A) Issuance of fincen identifier.--
(i) In general.--Upon request by an
individual who has provided FinCEN with
the information described in paragraph
(2)(A) pertaining to the individual, or
by an entity that has reported its
beneficial ownership information to
FinCEN in accordance with this section,
FinCEN shall issue a FinCEN identifier
to such individual or entity.
(ii) Updating of information.--An
individual or entity with a FinCEN
identifier shall submit filings with
FinCEN pursuant to paragraph (1)
updating any information described in
paragraph (2) in a timely manner
consistent with paragraph (1)(D).
(iii) Exclusive identifier.--FinCEN
shall not issue more than 1 FinCEN
identifier to the same individual or to
the same entity (including any
successor entity).
(B) Use of fincen identifier for
individuals.--Any person required to report the
information described in paragraph (2) with
respect to an individual may instead report the
FinCEN identifier of the individual.
(C) Use of fincen identifier for entities.--
If an individual is or may be a beneficial
owner of a reporting company by an interest
held by the individual in an entity that,
directly or indirectly, holds an interest in
the reporting company, the reporting company
may report the FinCEN identifier of the entity
in lieu of providing the information required
by paragraph (2)(A) with respect to the
individual.
(4) Regulations.--The Secretary of the Treasury
shall--
(A) by regulation prescribe procedures and
standards governing any report under paragraph
(2) and any FinCEN identifier under paragraph
(3); and
(B) in promulgating the regulations under
subparagraph (A) to the extent practicable,
consistent with the purposes of this section--
(i) minimize burdens on reporting
companies associated with the
collection of beneficial ownership
information, including by eliminating
duplicative requirements; and
(ii) ensure the beneficial ownership
information reported to FinCEN is
accurate, complete, and highly useful.
(5) Effective date.--The requirements of this
subsection shall take effect on the effective date of
the regulations prescribed by the Secretary of the
Treasury under this subsection, which shall be
promulgated not later than 1 year after the date of
enactment of this section.
(6) Report.--Not later than 1 year after the
effective date described in paragraph (5), and annually
thereafter for 2 years, the Secretary of the Treasury
shall submit to Congress a report describing the
procedures and standards prescribed to carry out
paragraph (2), which shall include an assessment of--
(A) the effectiveness of those procedures and
standards in minimizing reporting burdens
(including through the elimination of
duplicative requirements) and strengthening the
accuracy of reports submitted under paragraph
(2); and
(B) any alternative procedures and standards
prescribed to carry out paragraph (2).
(c) Retention and Disclosure of Beneficial Ownership
Information by FinCEN.--
(1) Retention of information.--Beneficial ownership
information required under subsection (b) relating to
each reporting company shall be maintained by FinCEN
for not fewer than 5 years after the date on which the
reporting company terminates.
(2) Disclosure.--
(A) Prohibition.--Except as authorized by
this subsection and the protocols promulgated
under this subsection, beneficial ownership
information reported under this section shall
be confidential and may not be disclosed by--
(i) an officer or employee of the
United States;
(ii) an officer or employee of any
State, local, or Tribal agency; or
(iii) an officer or employee of any
financial institution or regulatory
agency receiving information under this
subsection.
(B) Scope of disclosure by fincen.--FinCEN
may disclose beneficial ownership information
reported pursuant to this section only upon
receipt of--
(i) a request, through appropriate
protocols--
(I) from a Federal agency
engaged in national security,
intelligence, or law
enforcement activity, for use
in furtherance of such
activity; or
(II) from a State, local, or
Tribal law enforcement agency,
if a court of competent
jurisdiction, including any
officer of such a court, has
authorized the law enforcement
agency to seek the information
in a criminal or civil
investigation;
(ii) a request from a Federal agency
on behalf of a law enforcement agency,
prosecutor, or judge of another
country, including a foreign central
authority or competent authority (or
like designation), under an
international treaty, agreement,
convention, or official request made by
law enforcement, judicial, or
prosecutorial authorities in trusted
foreign countries when no treaty,
agreement, or convention is available--
(I) issued in response to a
request for assistance in an
investigation or prosecution by
such foreign country; and
(II) that--
(aa) requires
compliance with the
disclosure and use
provisions of the
treaty, agreement, or
convention, publicly
disclosing any
beneficial ownership
information received;
or
(bb) limits the use
of the information for
any purpose other than
the authorized
investigation or
national security or
intelligence activity;
(iii) a request made by a financial
institution subject to customer due
diligence requirements, with the
consent of the reporting company, to
facilitate the compliance of the
financial institution with customer due
diligence requirements under applicable
law; or
(iv) a request made by a Federal
functional regulator or other
appropriate regulatory agency
consistent with the requirements of
subparagraph (C).
(C) Form and manner of disclosure to
financial institutions and regulatory
agencies.--The Secretary of the Treasury shall,
by regulation, prescribe the form and manner in
which information shall be provided to a
financial institution under subparagraph
(B)(iii), which regulation shall include that
the information shall also be available to a
Federal functional regulator or other
appropriate regulatory agency, as determined by
the Secretary, if the agency--
(i) is authorized by law to assess,
supervise, enforce, or otherwise
determine the compliance of the
financial institution with the
requirements described in that
subparagraph;
(ii) uses the information solely for
the purpose of conducting the
assessment, supervision, or authorized
investigation or activity described in
clause (i); and
(iii) enters into an agreement with
the Secretary providing for appropriate
protocols governing the safekeeping of
the information.
(3) Appropriate protocols.--The Secretary of the
Treasury shall establish by regulation protocols
described in paragraph (2)(A) that--
(A) protect the security and confidentiality
of any beneficial ownership information
provided directly by the Secretary;
(B) require the head of any requesting
agency, on a non-delegable basis, to approve
the standards and procedures utilized by the
requesting agency and certify to the Secretary
semi-annually that such standards and
procedures are in compliance with the
requirements of this paragraph;
(C) require the requesting agency to
establish and maintain, to the satisfaction of
the Secretary, a secure system in which such
beneficial ownership information provided
directly by the Secretary shall be stored;
(D) require the requesting agency to furnish
a report to the Secretary, at such time and
containing such information as the Secretary
may prescribe, that describes the procedures
established and utilized by such agency to
ensure the confidentiality of the beneficial
ownership information provided directly by the
Secretary;
(E) require a written certification for each
authorized investigation or other activity
described in paragraph (2) from the head of an
agency described in paragraph (2)(B)(i)(I), or
their designees, that--
(i) states that applicable
requirements have been met, in such
form and manner as the Secretary may
prescribe; and
(ii) at a minimum, sets forth the
specific reason or reasons why the
beneficial ownership information is
relevant to an authorized investigation
or other activity described in
paragraph (2);
(F) require the requesting agency to limit,
to the greatest extent practicable, the scope
of information sought, consistent with the
purposes for seeking beneficial ownership
information;
(G) restrict, to the satisfaction of the
Secretary, access to beneficial ownership
information to whom disclosure may be made
under the provisions of this section to only
users at the requesting agency--
(i) who are directly engaged in the
authorized investigation or activity
described in paragraph (2);
(ii) whose duties or responsibilities
require such access;
(iii) who--
(I) have undergone
appropriate training; or
(II) use staff to access the
database who have undergone
appropriate training;
(iv) who use appropriate identity
verification mechanisms to obtain
access to the information; and
(v) who are authorized by agreement
with the Secretary to access the
information;
(H) require the requesting agency to
establish and maintain, to the satisfaction of
the Secretary, a permanent system of
standardized records with respect to an
auditable trail of each request for beneficial
ownership information submitted to the
Secretary by the agency, including the reason
for the request, the name of the individual who
made the request, the date of the request, any
disclosure of beneficial ownership information
made by or to the agency, and any other
information the Secretary of the Treasury
determines is appropriate;
(I) require that the requesting agency
receiving beneficial ownership information from
the Secretary conduct an annual audit to verify
that the beneficial ownership information
received from the Secretary has been accessed
and used appropriately, and in a manner
consistent with this paragraph and provide the
results of that audit to the Secretary upon
request;
(J) require the Secretary to conduct an
annual audit of the adherence of the agencies
to the protocols established under this
paragraph to ensure that agencies are
requesting and using beneficial ownership
information appropriately; and
(K) provide such other safeguards which the
Secretary determines (and which the Secretary
prescribes in regulations) to be necessary or
appropriate to protect the confidentiality of
the beneficial ownership information.
(4) Violation of protocols.--Any employee or officer
of a requesting agency under paragraph (2)(B) that
violates the protocols described in paragraph (3),
including unauthorized disclosure or use, shall be
subject to criminal and civil penalties under
subsection (h)(3)(B).
(5) Department of the treasury access.--
(A) In general.--Beneficial ownership
information shall be accessible for inspection
or disclosure to officers and employees of the
Department of the Treasury whose official
duties require such inspection or disclosure
subject to procedures and safeguards prescribed
by the Secretary of the Treasury.
(B) Tax administration purposes.--Officers
and employees of the Department of the Treasury
may obtain access to beneficial ownership
information for tax administration purposes in
accordance with this subsection.
(6) Rejection of request.--The Secretary of the
Treasury--
(A) shall reject a request not submitted in
the form and manner prescribed by the Secretary
under paragraph (2)(C); and
(B) may decline to provide information
requested under this subsection upon finding
that--
(i) the requesting agency has failed
to meet any other requirement of this
subsection;
(ii) the information is being
requested for an unlawful purpose; or
(iii) other good cause exists to deny
the request.
(7) Suspension.--The Secretary of the Treasury may
suspend or debar a requesting agency from access for
any of the grounds set forth in paragraph (6),
including for repeated or serious violations of any
requirement under paragraph (2).
(8) Security protections.--The Secretary of the
Treasury shall maintain information security
protections, including encryption, for information
reported to FinCEN under subsection (b) and ensure that
the protections--
(A) are consistent with standards and
guidelines developed under subchapter II of
chapter 35 of title 44; and
(B) incorporate Federal information system
security controls for high-impact systems,
excluding national security systems, consistent
with applicable law to prevent the loss of
confidentiality, integrity, or availability of
information that may have a severe or
catastrophic adverse effect.
(9) Report by the secretary.--Not later than 1 year
after the effective date of the regulations prescribed
under this subsection, and annually thereafter for 5
years, the Secretary of the Treasury shall submit to
the Committee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on Financial Services of
the House of Representatives a report, which--
(A) may include a classified annex; and
(B) shall, with respect to each request
submitted under paragraph (2)(B)(i)(II) during
the period covered by the report, and
consistent with protocols established by the
Secretary that are necessary to protect law
enforcement sensitive, tax-related, or
classified information, include--
(i) the date on which the request was
submitted;
(ii) the source of the request;
(iii) whether the request was
accepted or rejected or is pending; and
(iv) a general description of the
basis for rejecting the such request,
if applicable.
(10) Audit by the comptroller general.--Not later
than 1 year after the effective date of the regulations
prescribed under this subsection, and annually
thereafter for 6 years, the Comptroller General of the
United States shall--
(A) audit the procedures and safeguards
established by the Secretary of the Treasury
under those regulations, including duties for
verification of requesting agencies systems and
adherence to the protocols established under
this subsection, to determine whether such
safeguards and procedures meet the requirements
of this subsection and that the Department of
the Treasury is using beneficial ownership
information appropriately in a manner
consistent with this subsection; and
(B) submit to the Secretary of the Treasury,
the Committee on Banking, Housing, and Urban
Affairs of the Senate, and the Committee on
Financial Services of the House of
Representatives a report that contains the
findings and determinations with respect to any
audit conducted under this paragraph.
(11) Department of the treasury testimony.--
(A) In general.--Not later than March 31 of
each year for [5 years] 10 years beginning in
2022, the Director shall be made available to
testify before the Committee on Banking,
Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the
House of Representatives, or an appropriate
subcommittee thereof, regarding FinCEN issues,
including, specifically, issues relating to--
(i) anticipated plans, goals, and
resources necessary for operations of
FinCEN in implementing the requirements
of the Anti-Money Laundering Act of
2020 and the amendments made by that
Act;
(ii) the adequacy of appropriations
for FinCEN in the current and the
previous fiscal year to--
(I) ensure that the
requirements and obligations
imposed upon FinCEN by the
Anti-Money Laundering Act of
2020 and the amendments made by
that Act are completed as
efficiently, effectively, and
expeditiously as possible; and
(II) provide for robust and
effective implementation and
enforcement of the provisions
of the Anti-Money Laundering
Act of 2020 and the amendments
made by that Act;
(iii) strengthen 2 FinCEN
management efforts, as necessary and as
identified by the Director, to meet the
requirements of the Anti-Money
Laundering Act of 2020 and the
amendments made by that Act;
(iv) provide 2 for the
necessary public outreach to ensure the
broad dissemination of information
regarding any new program requirements
provided for in the Anti-Money
Laundering Act of 2020 and the
amendments made by that Act,
including--
(I) educating the business
community on the goals and
operations of the new
beneficial ownership database;
and
(II) disseminating to the
governments of countries that
are allies or partners of the
United States information on
best practices developed by
FinCEN related to beneficial
ownership information retention
and use;
(v) any policy recommendations that
could facilitate and improve
communication and coordination between
the private sector, FinCEN, and the
Federal, State, and local agencies and
entities involved in implementing
innovative approaches to meet their
obligations under the Anti-Money
Laundering Act of 2020 and the
amendments made by that Act, the Bank
Secrecy Act (as defined in section 6003
of the Anti-Money Laundering Act of
2020), and other anti-money laundering
compliance laws; and
(vi) any other matter that the
Director determines is appropriate.
(B) Testimony classification.--The testimony
required under subparagraph (A)--
(i) shall be submitted in
unclassified form; and
(ii) may include a classified
portion.
(d) Agency Coordination.--
(1) In general.--The Secretary of the Treasury shall,
to the greatest extent practicable, update the
information described in subsection (b) by working
collaboratively with other relevant Federal, State, and
Tribal agencies.
(2) Information from relevant federal, state, and
tribal agencies.--Relevant Federal, State, and Tribal
agencies, as determined by the Secretary of the
Treasury, shall, to the extent practicable, and
consistent with applicable legal protections, cooperate
with and provide information requested by FinCEN for
purposes of maintaining an accurate, complete, and
highly useful database for beneficial ownership
information.
(3) Regulations.--The Secretary of the Treasury, in
consultation with the heads of other relevant Federal
agencies, may promulgate regulations as necessary to
carry out this subsection.
(e) Notification of Federal Obligations.--
(1) Federal.--The Secretary of the Treasury shall
take reasonable steps to provide notice to persons of
their obligations to report beneficial ownership
information under this section, including by causing
appropriate informational materials describing such
obligations to be included in 1 or more forms or other
informational materials regularly distributed by the
Internal Revenue Service and FinCEN.
(2) States and indian tribes.--
(A) In general.--As a condition of the funds
made available under this section, each State
and Indian Tribe shall, not later than 2 years
after the effective date of the regulations
promulgated under subsection (b)(4), take the
following actions:
(i) The secretary of a State or a
similar office in each State or Indian
Tribe responsible for the formation or
registration of entities created by the
filing of a public document with the
office under the law of the State or
Indian Tribe shall periodically,
including at the time of any initial
formation or registration of an entity,
assessment of an annual fee, or renewal
of any license to do business in the
United States and in connection with
State or Indian Tribe corporate tax
assessments or renewals--
(I) notify filers of their
requirements as reporting
companies under this section,
including the requirements to
file and update reports under
paragraphs (1) and (2) of
subsection (b); and
(II) provide the filers with
a copy of the reporting company
form created by the Secretary
of the Treasury under this
subsection or an internet link
to that form.
(ii) The secretary of a State or a
similar office in each State or Indian
Tribe responsible for the formation or
registration of entities created by the
filing of a public document with the
office under the law of the State or
Indian Tribes shall update the
websites, forms relating to
incorporation, and physical premises of
the office to notify filers of their
requirements as reporting companies
under this section, including providing
an internet link to the reporting
company form created by the Secretary
of the Treasury under this section.
(B) Notification from the department of the
treasury.--A notification under clause (i) or
(ii) of subparagraph (A) shall explicitly state
that the notification is on behalf of the
Department of the Treasury for the purpose of
preventing money laundering, the financing of
terrorism, proliferation financing, serious tax
fraud, and other financial crime by requiring
nonpublic registration of business entities
formed or registered to do business in the
United States.
(f) No Bearer Share Corporations or Limited Liability
Companies.--A corporation, limited liability company, or other
similar entity formed under the laws of a State or Indian Tribe
may not issue a certificate in bearer form evidencing either a
whole or fractional interest in the entity.
(g) Regulations.--In promulgating regulations carrying out
this section, the Director shall reach out to members of the
small business community and other appropriate parties to
ensure efficiency and effectiveness of the process for the
entities subject to the requirements of this section.
(h) Penalties.--
(1) Reporting violations.--It shall be unlawful for
any person to--
(A) willfully provide, or attempt to provide,
false or fraudulent beneficial ownership
information, including a false or fraudulent
identifying photograph or document, to FinCEN
in accordance with subsection (b); or
(B) willfully fail to report complete or
updated beneficial ownership information to
FinCEN in accordance with subsection (b).
(2) Unauthorized disclosure or use.--Except as
authorized by this section, it shall be unlawful for
any person to knowingly disclose or knowingly use the
beneficial ownership information obtained by the person
through--
(A) a report submitted to FinCEN under
subsection (b); or
(B) a disclosure made by FinCEN under
subsection (c).
(3) Criminal and civil penalties.--
(A) Reporting violations.--Any person that
violates subparagraph (A) or (B) of paragraph
(1)--
(i) shall be liable to the United
States for a civil penalty of not more
than $500 for each day that the
violation continues or has not been
remedied; and
(ii) may be fined not more than
$10,000, imprisoned for not more than 2
years, or both.
(B) Unauthorized disclosure or use
violations.--Any person that violates paragraph
(2)--
(i) shall be liable to the United
States for a civil penalty of not more
than $500 for each day that the
violation continues or has not been
remedied; and
(ii)(I) shall be fined not more than
$250,000, or imprisoned for not more
than 5 years, or both; or
(II) while violating another law of
the United States or as part of a
pattern of any illegal activity
involving more than $100,000 in a 12-
month period, shall be fined not more
than $500,000, imprisoned for not more
than 10 years, or both.
(C) Safe harbor.--
(i) Safe harbor.--
(I) In general.--Except as
provided in subclause (II), a
person shall not be subject to
civil or criminal penalty under
subparagraph (A) if the
person--
(aa) has reason to
believe that any report
submitted by the person
in accordance with
subsection (b) contains
inaccurate information;
and
(bb) in accordance
with regulations issued
by the Secretary,
voluntarily and
promptly, and in no
case later than 90 days
after the date on which
the person submitted
the report, submits a
report containing
corrected information.
(II) Exceptions.--A person
shall not be exempt from
penalty under clause (i) if, at
the time the person submits the
report required by subsection
(b), the person--
(aa) acts for the
purpose of evading the
reporting requirements
under subsection (b);
and
(bb) has actual
knowledge that any
information contained
in the report is
inaccurate.
(ii) Assistance.--FinCEN shall
provide assistance to any person
seeking to submit a corrected report in
accordance with clause (i)(I).
(4) User complaint process.--
(A) In general.--The Inspector General of the
Department of the Treasury, in coordination
with the Secretary of the Treasury, shall
provide public contact information to receive
external comments or complaints regarding the
beneficial ownership information notification
and collection process or regarding the
accuracy, completeness, or timeliness of such
information.
(B) Report.--The Inspector General of the
Department of the Treasury shall submit to
Congress a periodic report that--
(i) summarizes external comments or
complaints and related investigations
conducted by the Inspector General
related to the collection of beneficial
ownership information; and
(ii) includes recommendations, in
coordination with FinCEN, to improve
the form and manner of the
notification, collection and updating
processes of the beneficial ownership
information reporting requirements to
ensure the beneficial ownership
information reported to FinCEN is
accurate, complete, and highly useful.
(5) Treasury office of inspector general
investigation in the event of a cybersecurity breach.--
(A) In general.--In the event of a
cybersecurity breach that results in
substantial unauthorized access and disclosure
of sensitive beneficial ownership information,
the Inspector General of the Department of the
Treasury shall conduct an investigation into
FinCEN cybersecurity practices that, to the
extent possible, determines any vulnerabilities
within FinCEN information security and
confidentiality protocols and provides
recommendations for fixing those deficiencies.
(B) Report.--The Inspector General of the
Department of the Treasury shall submit to the
Secretary of the Treasury a report on each
investigation conducted under subparagraph (A).
(C) Actions of the secretary.--Upon receiving
a report submitted under subparagraph (B), the
Secretary of the Treasury shall--
(i) determine whether the Director
had any responsibility for the
cybersecurity breach or whether
policies, practices, or procedures
implemented at the direction of the
Director led to the cybersecurity
breach; and
(ii) submit to Congress a written
report outlining the findings of the
Secretary, including a determination by
the Secretary on whether to retain or
dismiss the individual serving as the
Director.
(6) Definition.--In this subsection, the term
``willfully'' means the voluntary, intentional
violation of a known legal duty.
(i) Continuous Review of Exempt Entities.--
(1) In general.--On and after the effective date of
the regulations promulgated under subsection (b)(4), if
the Secretary of the Treasury makes a determination,
which may be based on information contained in the
report required under section 6502(c) of the Anti-Money
Laundering Act of 2020 or on any other information
available to the Secretary, that an entity or class of
entities described in subsection (a)(11)(B) has been
involved in significant abuse relating to money
laundering, the financing of terrorism, proliferation
finance, serious tax fraud, or any other financial
crime, not later than 90 days after the date on which
the Secretary makes the determination, the Secretary
shall submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives a
report that explains the reasons for the determination
and any administrative or legislative recommendations
to prevent such abuse.
(2) Classified annex.--The report required by
paragraph (1)--
(A) shall be submitted in unclassified form;
and
(B) may include a classified annex.
(j) Authorization of Appropriations.--There are authorized to
be appropriated to FinCEN for each of the 3 fiscal years
beginning on the effective date of the regulations promulgated
under subsection (b)(4), such sums as may be necessary to carry
out this section, including allocating funds to the States to
pay reasonable costs relating to compliance with the
requirements of such section.
* * * * * * *
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
MINORITY VIEWS
This bill would increase Bank Secrecy Act (BSA) reporting
thresholds for Currency Transaction Reports (CTRs) from $10,000
to $30,000 and increase the threshold for Suspicious Activity
Reports (SARs) from $5,000 to $10,000. There is also an
inflation provision, by which the Secretary of the Treasury
would increase the thresholds every five years according to the
Consumer Price Index for All Urban Consumers published by the
Bureau of Labor Statistics of the Department of Labor. We
strongly oppose this bill, which passed over the objection of
all Democrats on the committee.
The Bank Secrecy Act (BSA)\1\ is America's law to combat
money laundering, terrorist finance, and proliferation
financing. At its heart, it is a recordkeeping and reporting
statute, establishing requirements for those entities defined
as ``financial institutions'' (Fis) under the law,\2\ in order
to provide ``highly useful'' information to agencies that
conduct criminal, tax, regulatory, intelligence, and
counterintelligence investigations and other activities. These
records, collectively called ``BSA data,'' are also designed to
facilitate the tracking of funds related to illicit activity,
to protect the U.S. financial system from criminal abuse, and
to safeguard American national security.
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\1\12 U.S.C. 1829b, 12 U.S.C. 1951-1960, 31 U.S.C. 5311-5314, 5316-
5336, and notes thereto.
\2\The full list of those entities, e.g., banks, casinos, and money
transmitters, is found at 31 U.S.C. 5312.
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To accomplish these goals, the BSA requires Fis to report
to FinCEN currency (cash or coin) transactions over $10,000
conducted by, or on behalf of, a single customer. CTRs are also
required to be filed for multiple transactions that total over
$10,000 in a single day (compiled through a process called
``aggregation''). These tend to be physical cash payments, such
as deposits or withdrawals, the purchase of gambling chips or
the redemption of one's gaming winnings, and funds sent
overseas through money transmitters. The reason that these
transactions are of specific interest is that cash, especially
from cash-intensive businesses (e.g., convenience stores,
restaurants, salons, car washes, independent automatic teller
machines), presents a higher risk for money laundering due to
it being a reliable way for bad actors to hide the illicit
source of the funds by comingling licit and illicit funds
within a cash transaction (among other
reasons).\3\}\4\ Exemptions (i.e., that will not
require a CTR), which represent the vast majority of financial
transactions, include transactions between financial
institutions, transactions involving government entities, and
certain business relationships with individual FI's established
customers. Approximately 21 million CTRs were filed in 2023,\5\
largely using automated computer systems\6\ that are used
almost uniformly by Fis to identify when transactions or
aggregated transactions require a report via FinCEN's mandated
electronic filing system.
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\3\FFIEC, BSA/AML Examination Manual: Risks Associated with Money
Laundering and Terrorist Financing (Accessed Jan. 19, 2026).
\4\DOJ, Large-Scale Law Enforcement Effort Targets Downtown Los
Angeles Businesses Linked To Money Laundering For Drug Cartels (Sep.
10, 2024).
\5\FinCEN, FinCEN Year in Review for Fiscal Year 2023 (Jun. 7,
2024).
\6\As a lead example of one of these widely used systems, NASDAQ's
Verafin offers FIs automated report generation, direct FinCEN e-filing,
CTR workflow dashboards, and the ability to auto-submit complete CTRs:
Solution: Currency Transaction Reporting (CTR) (Accessed Jan. 19,
2026).
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A SAR is also required in a number of situations, but
notably, Fis will report to FinCEN when they identify
transactions of $5000 or more that indicate potential money
laundering, terror finance, or proliferation financing.\7\ They
must also file a SAR when a customer appears to have attempted
to evade the CTR filing requirements, for example by reducing
the transaction total to a number just below the $10,000 CTR
threshold or by executing multiple transactions within a 24-
hour period, seemingly to avoid reporting requirements; FinCEN
and the other federal functional regulators issued guidance in
October 2025 that significantly lowers the burden associated
with investigating and drafting such ``structuring'' SARs, by
affirming that, ``Absent this knowledge, suspicion, or reason
to suspect [that the transaction or series of transactions are
designed to evade CTR reporting requirements (emphasis
included)], financial institutions are not required to file a
SAR.''\8\ SARs typically require more staff training,
investigatory effort, and time to draft (including detailed
narratives) than the automated CTRs, and thus, are more costly
for the Fis to produce. They are also more fraught for
potential regulatory enforcement action, which is why Fis are
said to file ``defensively'' to avoid examiner scrutiny
regarding SAR-filing deficiencies.\9\
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\7\Id.
\8\FinCEN, Frequently Asked Questions Regarding Suspicious Activity
Reporting Requirements (Oct. 9, 2025).
\9\ACAMS, Z. Teng, Defensive SAR Filing: An Unnecessarily Heavy
Burden on the AML Field (Feb. 14, 2018).
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These reports, along with other BSA data, are collectively
used by 472 law enforcement, regulatory, and national security
agencies\10\ with approved access to FinCEN's BSA Database.
Congressional Committees have also used SARs to aid their
mission-based activities.\11\ These agencies may start an
investigation through queries to the system or, more
frequently, they use the FinCEN database to verify illicit
financial activity, map criminal networks, and build cases for
prosecution. The database is also useful for asset recovery
efforts, supporting victims of crime and terror. Further, the
BSA data allows FinCEN to identify trends and patterns of
illicit activity that it conveys to Fis and other interested
parties, such as the alerts, bulletins, guidance, advisories,
and threat pattern and analyses that it has published touching
on cybercrime, elder financial exploitation, and fentanyl
trafficking;\12\}\13\ Fis use this information to
retrain employees and systems to better refine their ability to
discern illicit activity that may be directed at or through
their institutions.
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\10\FinCEN, FinCEN Year in Review for FY 2023 (Infographic) (Jun.
7, 2024).
\11\Senate Finance Committee, Continuing Epstein Investigation,
Wyden Releases New Analysis Detailing How Top JPMorgan Chase Executives
Enabled Epstein's Trafficking Operation (Nov. 20, 2025).
\12\FinCEN, Financial Trend Analyses (Accessed Jan. 19, 2026).
\13\FinCEN, Alerts/Advisories/Notices/Bulletins/Fact Sheets
(Accessed Jan. 19, 2026).
---------------------------------------------------------------------------
This bill is highly concerning in several ways. This bill
would eliminate a significant portion of the BSA data used by
law enforcement and other government officials to combat fraud,
terrorist finance, money laundering, and other financial crime.
It would mean that banks and other financial institutions with
reporting requirements would not be required to report
applicable currency transactions under $30,000 and would not be
required to investigate and report, for example, scams against
their customers unless the victim's loss exceeds $10,000. This
$20,000 difference for CTRs is projected to eliminate
approximately 80% of all CTRs filed\14\ and would also
significantly impact the filing of SARs, due to both the higher
SARs threshold but also because approximately 50% of SARs are
related to CTR structuring activities. The average American
cannot afford to lose $5,000, let alone $10,000, even
considering inflation, and while a single CTR may not stand out
from the millions of CTRs, when put together with other BSA
data and investigatory information, it may help to establish
connections and patterns that lead to the discovery of more
significant illicit financial activity. Structuring will always
occur, as well, with bad actors simply choosing to move money
at a level just below any new thresholds.
---------------------------------------------------------------------------
\14\FinCEN, FinCEN Year in Review for Fiscal Year 2023 (Jun. 7,
2024).
---------------------------------------------------------------------------
Underscoring this point, the IRS's law enforcement arm,
IRS-CI,\15\ was so concerned about the introduction of this
bill that it issued a fact sheet to demonstrate the
significance of BSA data to its operations. (See Annex 1). In a
press release, IRS-CI Chief Guy Ficco stated that ``BSA data is
often the first signal that something isn't right. These
filings become essential puzzle pieces in identifying patterns,
following financial trails and building cases that protect
taxpayers.''\16\ In the same press release, IRS shares that,
``94% of IRS-CI cases were searched against BSA data in FY 25--
resulting in more than 3.9 million searches of BSA filings--
underscoring the integral role of BSA data has in uncovering
and prosecuting financial crimes across the country.''\17\
Metrics further showed that in FY25, almost 89% of
investigations conducted by IRS-CI had BSA filings associated
with the primary subject,\18\ most of which had at least one
SAR.\19\ IRS also notes that, ``IRS-CI special agents ran an
average of 866,178 searches annually against currency
transaction reports during the last three fiscal years. The
data also indicates that for FY 25 67% of investigations based
solely on a CTR filing had a primary subject associated with
one or more aggregated CTRs below $20,000. For FY23-25, 74% of
investigations based solely on a CTR filing had a primary
subject associated with one or more aggregated CTRs below
$20,000.''\20\ These are cases that would disappear with the
changes proposed by this bill. This tangible connection between
BSA data and law enforcement investigations and prosecutions
directly counters the narrative supported by a December 2024
GAO study that looked at the access to--but not the use of--BSA
data by major law enforcement agencies.\21\
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\15\IRS is one of the few federal law enforcement agencies that
keeps data on its use of BSA data. Its law enforcement arm investigates
not only tax crimes, but it is an integral partner to other law
enforcement agencies on cases involving scams, money laundering, and
other financial crimes. IRS, Program and emphasis areas for IRS
Criminal Investigation (Accessed Mar. 10, 2026).
\16\IRS-CI, IRS-CI date shows BSA filings are used in nearly all
its investigations (Feb. 24, 2026).
\17\Id.
\18\A primary subject is the individual or entity that is believed
to be involved in the suspected illicit financial activity. Id.
\19\Id.
\20\IRS-CI, Bank Secrecy Act Metrics FY25 (last accessed Mar. 10,
2025).
\21\Anti-Money Laundering--WTF?, J. Richards, It's Time to Simplify
Large Cash Transaction Reports (CTRs) (Dec. 15, 2024).
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Treasury has made recent, desirable clarifications to the
guidance around filing of BSA reports that should reduce the
number of SARS that an FI needs to file. Artificial
intelligence, when used responsibly, is also playing a
transformative role in reducing cost and increasing accuracy by
allowing Fis to use compliance-focused AI systems to better
detect suspicious activity. Further, banks are already being
rewarded by deregulation through the Trump Administrations'
rollbacks on every aspect of America's anti-money laundering
regime: the gutting of the Corporate Transparency Act
(CTA);\22\ the delay of the investment advisers' rule;\23\ the
delay of the residential real estate rule;\24\ the announcement
that regulatory enforcement actions would be significantly
diminished;\25\}\26\ the firing and re-assignment of
investigators and prosecutors, especially away from complex
financial crime investigations;\27\ the firing of bank
examiners;\28\ the pardons of fraudsters and money
launderers;\29\}\30\}\31\}\32\ and much more.
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\22\Treasury Department, Treasury Department Announces Suspension
of Enforcement of Corporate Transparency Act Against U.S. Citizens and
Domestic Reporting Companies (Mar. 2, 2025).
\23\FinCEN, FinCEN Issues Final Rule to Postpone Effective Date of
Investment Adviser Rule to 2028 (Dec. 31, 2025).
\24\FinCEN, FinCEN Announces Postponement of Residential Real
Estate Reporting Until March 1, 2026 (Sept. 30, 2025).
\25\Marlon Paz, et. al, Deputy Attorney General Memorandum:
``Ending Regulation by Prosecution'', Steptoe (Apr. 11, 2025).
\26\Public Citizen, R. Claypool, Canceled Corporate Enforcement:
During the First Year of Trump's Second Term, Federal Agencies Canceled
and Froze Enforcement Against 166 Alleged Corporate Lawbreakers (Jan.
15, 2026).
\27\International Consortium of Investigative Journalists, S.
Woodman, After mass firings, the IRS is poised to close audits of
wealthy taxpayers, agents say (Mar. 3, 2025). See also, Reuters, B.
Heath, J. Schneyer, M. Taylor, S. Lynch, M. Spector, Exclusive:
Thousands of agents diverted to Trump immigration crackdown (Mar. 22,
2025) and NYTimes, N. Nehamas, M. Keller, A. Berzon, H. Aleaziz, Z.
Kanno-Youngs, Homeland Security Missions Falter Amid Focus on
Deportations: Under President Trump, an agency intended to keep
Americans safe has diverted resources from combating child abuse,
trafficking and terrorism (Nov. 16, 2025).
\28\NPR, M. Aspan, The FDIC's goal is to prevent another banking
crisis. It's now also a Trump target (Feb 27, 2025).
\29\Governor Gavin Newsom, Newsom launches website tracking Trump's
top 10 criminal cronies as new data shows California crime continues to
drop (Dec. 16, 2025).
\30\BBC, L. McMahon, Trump pardons Binance founder Changpeng Zhao
(Oct. 23, 2025).
\31\NY Times, K. Vogel, S. Craig, Trump Sets Fraudster Free From
Prison for a Second Time (Jan. 16, 2026).
\32\In fact, fraud and financial crime are a prevailing theme among
those pardoned by President Trump: DOJ, Clemency Grants by President
Donald J. Trump (2025-Present) (Accessed Jan. 20, 2026).
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There is no question that the BSA reporting process needs
reform, but the elimination of requirements is not the best way
to tackle this issue. Aggregation could be eliminated or
streamlined, lowering effort and cost for Fis. It would also
eliminate the need for structuring SARs, removing 50% of all
SARs currently filed. The forms for CTRs and SARs could be
updated, with certain fields removed, including the narratives
in some limited, but significant, cases, markedly reducing bank
burden. Some have even proposed setting the threshold lower,
potentially to zero, making the entire process automated. With
the increasing use of AI, not to mention the decreasing use of
cash for financial transactions, cost savings should be
realized over time, as well.
Group Opposition: Previously, groups that expressed concern
about increasing the thresholds included the National Fraternal
Order of Police, the National District Attorneys Association,
and the Society of Former Special Agents of the FBI.
For all of these reasons, we oppose H.R. 1799.
Sincerely,
Maxine Waters,
Ranking Member.
Stephen F. Lynch,
Al Green,
Bill Foster,
Joyce Beatty,
Rashida Tlaib,
Sylvia R. Garcia,
Nikema Williams,
Members of Congress.
[all]