WASHINGTON – Sens. John Kennedy (R-La.), a member of the Senate Banking Committee, and Tim Scott (R-S.C.), chairman of the Senate Banking Committee, introduced the Streamlining Transaction Reporting and Ensuring Anti-Money Laundering Improvements for a New Era (STREAMLINE) Act, which would modernize the Bank Secrecy Act’s reporting requirements for currency transaction reports (CTRs) and suspicious activity reports (SARs).
Kennedy and Scott’s bill would update the law’s outdated financial reporting thresholds to account for more than 50 years of inflation, reducing unnecessary paperwork and protecting more Americans from debanking.
“Washington’s financial reporting requirements may have made sense in the seventies, but in today’s economy, they simply weigh down our financial institutions. My STREAMLINE Act cuts red tape and modernizes these requirements, so law enforcement can focus on real criminals—not debanking hardworking Americans or drowning our financial institutions in burdensome paperwork. It’s time to bring the Bank Secrecy Act into the 21st century and use a little common sense,” said Kennedy.
“For decades, banks and credit unions have been weighed down by outdated reporting requirements and layers of unnecessary paperwork that make it harder for them to serve consumers and small businesses. By increasing the reporting thresholds for currency transaction reports and suspicious activity reports, we are bringing much needed modernization to a law that should root out financial crimes, not get in the way of everyday Americans,” said Scott.
Background:
- The Bank Secrecy Act, a law signed in 1970, requires financial institutions to assist government agencies with detecting and preventing financial crimes.
- Under the law, financial institutions must submit a currency transaction report (CTR) for cash transactions exceeding $10,000 and a suspicious activity report (SAR) for transactions exceeding $2,000 or $5,000 depending on the circumstances. For more than 50 years, Congress has not updated these thresholds.
- Kennedy and Scott’s STREAMLINE Act would raise these thresholds from $10,000 to $30,000, $2,000 to $3,000, and $5,000 to $10,000 respectively, and require the Treasury Department to adjust these amounts every five years to account for inflation.
Sens. Cynthia Lummis (R-Wyo.), Katie Britt (R-Ala.), Mike Crapo (R-Idaho), Bill Hagerty (R-Tenn.), Bernie Moreno (R-Ohio), Mike Rounds (R-S.D.) and Pete Ricketts (R-Neb.) cosponsored the STREAMLINE Act.
“When banks and credit unions are bogged down by red tape and outdated reporting rules, it’s small businesses and everyday Americans who pay the price. The STREAMLINE Act modernizes reporting to reflect today’s economy, raising the threshold for currency transaction and suspicious activity reports, without compromising security. I’m proud to join my colleagues in ensuring Americans have access to efficient, modern financial services that meet the needs of the 21st century,” said Lummis.
“This is important legislation that simply updates outdated reporting thresholds that place unnecessary burdens on small banks and credit unions, allowing them to focus on their customers rather than on navigating onerous reporting requirements. These financial institutions play a central role in serving countless communities across the nation, and I’m proud to support legislation to help accomplish that,” said Britt.
“Financial institutions face unnecessary burdens from outdated reporting requirements that impede service to customers and small businesses. The STREAMLINE Act delivers long overdue modernization, helping to ensure the Bank Secrecy Act targets true financial crime instead of generating excessive paperwork,” said Crapo.
“For too long, American banks have been forced to comply with outdated, burdensome reporting rules that do very little to stop crime. The STREAMLINE Act cuts through bureaucratic red tape and allows our financial institutions to detect and disrupt illicit activities. Americans deserve a modern regulation system that works for them,” said Moreno.
“For decades, our banks and credit unions have been burdened by reporting requirements that haven’t kept pace with modern risks. I’m proud to partner with Chairman Scott and Senator Kennedy on legislation to update these standards for today’s financial system and prevent us from being stuck with the same inefficiencies another 55 years from now. Financial institutions should be investing in tools that stop crime, not outdated compliance exercises that don’t improve safety,” said Rounds.
“After more than 50 years of inflation, the Bank Secrecy Act’s reporting thresholds are badly outdated. They must be modernized. The STREAMLINE Act cuts red tape for banks and credit unions. It ensures law enforcement still has the tools they need to do their job. It focuses enforcement where it matters and respects the privacy of law-abiding American consumers,” said Ricketts.
The Independent Community Bankers Association, American Bankers Association and America’s Credit Unions support Kennedy and Scott’s bill.
Full text of the STREAMLINE Act is available here.
Source link
