Sens. John Kennedy (R-La.) and Tim Scott (R-S.C.) have introduced the STREAMLINE Act, which aims to modernize the reporting requirements under the Bank Secrecy Act for currency transaction reports (CTRs) and suspicious activity reports (SARs). The legislation seeks to update financial reporting thresholds that have not changed in over 50 years, adjusting them for inflation and reducing paperwork for banks and credit unions.
The bill would raise the CTR threshold from $10,000 to $30,000 and increase SAR thresholds from $2,000 to $3,000 and from $5,000 to $10,000 depending on circumstances. Additionally, it requires the Treasury Department to review and adjust these amounts every five years based on inflation.
Kennedy said, “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.”
Scott commented, “For decades, banks and credit unions have been weighed down by outdated reporting requirements and layers of unnecessary paperwork that make it harder for them to serve consumers and small businesses.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.”
The original Bank Secrecy Act was enacted in 1970 with goals including assisting government agencies in detecting and preventing financial crimes by requiring certain cash transactions above specified limits be reported. These thresholds had remained unchanged until now.
Other senators supporting the bill include 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.).
Lummis stated, “When banks and credit unions are bogged down by red tape and outdated reporting rules, it’s small businesses and everyday Americans who pay the price.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.”
Britt added her support: “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.”
Crapo remarked: “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 ensure the Bank Secrecy Act targets true financial crime instead of generating excessive paperwork.”
Moreno said: “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.”
Rounds stated: “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… Financial institutions should be investing in tools that stop crime not outdated compliance exercises that don’t improve safety.”
According to Ricketts: “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 tools they need… It focuses enforcement where it matters respects privacy of law-abiding American consumers.”
Industry groups such as Independent Community Bankers Association, American Bankers Association ,and America’s Credit Unions have expressed support for this proposed legislation.
