U.S. Senators Katie Britt, Tim Scott, John Kennedy Seek Modernization to Law Targeting Illicit Financial Activity 

WASHINGTON, DC — U.S. Senator Katie Britt (R-Ala.) joined Banking Committee Chairman Tim Scott (R-S.C.), Senator John Kennedy (R-La.), and several Republican colleagues in introducing the Streamlining Transaction Reporting and Ensuring Anti-Money Laundering Improvements for a New Era (STREAMLINE) Act, which would bring much needed modernization to a law that is intended to identify legitimate illicit financial activity rather than overwhelm financial institutions with excessive paperwork. It would increase thresholds for currency transactions reports (CTRs) and suspicious activity reports (SARs) under the Bank Secrecy Act (BSA). These reporting thresholds were established under the Bank Secrecy Act and have not been adjusted since its enaction in 1970. 

“This is important legislation that simply updates outdated reporting thresholds that place unnecessary burdens on small banks and credit unions, allowing them to focus on their customers rather than on navigating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 Senator Britt.

The Bank Secrecy Act serves as a cornerstone of the United States’ anti-money laundering (AML) framework, requiring banks, credit unions, and other financial institutions to assist government agencies with detecting and preventing financial crimes such as money laundering, terrorism financing, and other criminal abuse. The Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) is tasked with oversight and collects detailed records and relevant reports from financial institutions.

“For decades, banks and credit unions have been weighed down by outdated reporting requirements and layers of unnecessary paperwork that make it harder for them to serve consumers and small businesses.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 Chairman Scott.

Under current law, financial institutions are required to report certain financial transactions. The Streamlining Transaction Reporting and Ensuring Anti-Money Laundering Improvements for a New Era Act raises previously held thresholds from $10,000 to $30,000, $2,000 to $3,000, and $5,000 to $10,000 respectively, and requires the Treasury Department to adjust these amounts every five years to account for inflation.

“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 Senator Kennedy.

Senators Mike Crapo (R-Idaho), Mike Rounds (R-S.D.), Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.), Pete Ricketts (R-Neb.), and Bernie Moreno (R-Ohio) also joined Senators Britt, Scott, and Kennedy.  

The American Bankers Association, America’s Credit Unions, and the Independent Community Bankers of America have all voiced support for the legislation.

You can read the full text of the bill here.

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