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Raises several low-dollar Bank Secrecy Act reporting and recordkeeping thresholds and requires the Treasury to update forms, consult stakeholders, and report back to Congress. It also indexes those thresholds for inflation every five years and doubles a FinCEN record/testimony retention period from 5 to 10 years. The bill aims to reduce outdated low-dollar reporting burdens on banks and money services businesses by increasing specified dollar triggers, set a process for regular inflation adjustments, and require Treasury to review and modernize relevant reporting forms and related reviews within a year.
The bill reduces routine reporting and paperwork for many Americans and businesses by raising thresholds and modernizing forms, but it trades off by shrinking available transaction data for investigators and extending record retention—creating privacy, cost, and enforcement risks.
All people (including small businesses and customers of money services businesses) will face fewer routine bank and MSB reports and less paperwork because currency transaction and suspicious-activity thresholds are raised (e.g., CTR from $10,000→$30,000; SAR and MSB thresholds increased).
Investigators, regulators, and victims of financial crime will have longer access to FinCEN testimony and records (retained 10 years instead of 5), improving the ability to detect, prosecute, and pursue restitution for long-running financial crimes and supporting congressional oversight.
Financial institutions, businesses, and the public should face fewer future increases in reporting burdens because thresholds will be indexed to inflation every five years and Treasury must review/update BSA forms with stakeholder consultation, which can modernize and simplify reporting requirements.
All people and taxpayers may face reduced detection of illicit finance because higher CTR and SAR thresholds will leave fewer routine transaction records available to law enforcement, potentially making money laundering, tax evasion, and other crimes harder to detect and prosecute.
All persons with financial records face greater privacy and data-breach risk because sensitive FinCEN testimony/records will be retained for a longer period (10 years), increasing the window for potential exposure.
Financial institutions, MSBs, and businesses may incur higher compliance and analytics costs—due to periodic CPI indexing, system updates every five years, and the need for more sophisticated analytics to compensate for reduced routine reporting—which could be passed on to consumers.
Banks, MSBs, and other reporting entities will face transition uncertainty and administrative burden while Treasury updates rules/forms (statutory review and regulatory update timelines), complicating near-term compliance.
Designates the official short title of the Act as the "Financial Reporting Threshold Modernization Act."
Require the Secretary of the Treasury to revise regulations under 31 U.S.C. §§5313 and 5315 within 180 days to change each $10,000 currency transaction report threshold to $30,000.
Require the Secretary of the Treasury to update every 5 years each such $30,000 threshold to reflect changes in the CPI-U, rounded to the nearest $500.
Amend 31 U.S.C. §5331 to replace occurrences of the prior dollar figure with "$30,000" for reporting on coins and currency received in a nonfinancial trade or business.
Require the Secretary of the Treasury to update every 5 years each dollar figure in 31 U.S.C. §5331 for inflation using the CPI-U, rounded to the nearest $500.
Strikes each place the specified term appears in the heading or text of 31 U.S.C. 5331 and inserts "$30,000"; adds a new subsection (e) requiring the Secretary of the Treasury to update each dollar figure under this section every 5 years to reflect changes in the Consumer Price Index for All Urban Consumers (CPI-U) published by the Bureau of Labor Statistics.
Strikes "5 years" and inserts "10 years" in the specified provision.
Who is affected and how:
Financial Institutions: Banks and other reporting entities will face fewer low-dollar reporting obligations, reducing time and cost to file and process low-value currency transaction reports and related filings. They will need to update internal policies and systems to reflect new thresholds and periodic indexing.
Financial Institutions (Money Services Businesses and MSBs specifically): MSBs will see the $1,000 threshold rise to $3,000, which reduces the number of small-value reports they must file; they still must change compliance systems and training.
Law Enforcement and Regulators: May receive fewer low-value reports and alerts, which can reduce noise and administrative burden but could also remove some small-value leads; agencies will need to adapt analytic processes to the new reporting landscape.
Treasury / FinCEN and Federal Agencies: Must conduct reviews, consult stakeholders, update forms, complete AML Act reviews, and produce a report to Congress within 360 days—creating short-term administrative work but intended to modernize long-term reporting.
Individuals and Small Cash Businesses: People and small cash-heavy businesses may face fewer routine currency-reporting interactions and less paperwork; potential trade-off is that certain small transactions will no longer be automatically reported for downstream analysis.
Overall effect: The bill reduces low-dollar reporting burdens and creates a predictable inflation-adjustment schedule, while increasing record retention for certain FinCEN materials to support oversight and investigations. Short-term costs arise from agency reviews and system changes; long-term effects include fewer low-value filings and more stable thresholds tied to inflation.
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Referred to the House Committee on Financial Services.
Introduced March 3, 2025 by Barry D. Loudermilk · Last progress March 3, 2025
Placed on the Union Calendar, Calendar No. 478.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-556.
Ordered to be Reported (Amended) by the Yeas and Nays: 30 - 24.
Committee Consideration and Mark-up Session Held