Bank Privacy Reform Act

Summary

Prohibits government authorities from obtaining customer financial records from financial institutions except in a narrow set of circumstances, and repeals or restructures many provisions of the Bank Secrecy Act. The bill revises the purpose and definitions in the BSA framework to emphasize retention of transaction records tied to particular customers while removing a number of reporting, access, and enforcement provisions that previously enabled regulatory and law enforcement use of bank records.

• Prohibits government access to customer financial records from financial institutions except in narrowly defined statutory exceptions or pursuant to a qualifying search warrant.
• Rewrites the stated purpose of the BSA to emphasize retention of transaction records identifiable to particular customers.
• Strikes numerous sections across chapter 53 of title 31 and removes a BSA subchapter, substantially restructuring the BSA statutory framework.
• Revises definitions, renames certain nonbank entities, and makes technical and renumbering changes across multiple provisions.
• Narrows investigative and administrative routes previously used by law enforcement and regulators to obtain bank records.
• Amends core sections such as 31 U.S.C. §5318, §5321, and §5322, altering exceptions, penalties, and cross-references.
• Leaves record-retention obligations while removing or altering many reporting and special-measures authorities.
• Will require agencies, financial institutions, and courts to interpret and operationalize a significantly changed statutory regime.
• Increases privacy protections for account holders but may reduce tools used to combat money laundering, terrorism financing, and other financial crimes.
• Creates potential for transitional regulatory guidance, compliance changes, and litigation over the scope of remaining authorities.