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Directs the Treasury Secretary to raise certain currency-transaction and related reporting thresholds (for example, raising a $10,000 reporting threshold to $30,000), require regular inflation indexing of those thresholds, and direct other federal agencies to raise and align their suspicious-activity reporting thresholds. It also requires the Treasury to review and report on the forms and recordkeeping used to detect illicit finance and to update reporting forms as needed. The section sets specific timing and procedural requirements for the threshold increases, inflation adjustments, and the review/reporting process.
Within 180 days after enactment, the Secretary of the Treasury must issue regulations under 31 U.S.C. 5313 and 5315 to change each threshold amount in those regulations that is $10,000 to $30,000.
Not later than 5 years after the Secretary updates regulations under the previous item, and every 5 years thereafter, the Secretary must issue regulations under 31 U.S.C. 5313 and 5315 to adjust those updated threshold amounts to reflect the change in the Consumer Price Index for All Urban Consumers for the applicable 5-year period, rounded to the nearest $1,000.
Each adjustment made under the 5-year inflation update takes effect on the first January 1 after the Secretary publishes the adjustment.
Amend 31 U.S.C. 5331 by replacing each dollar amount in that section with "$30,000" wherever it appears in the heading or text.
Add a new subsection (e) to 31 U.S.C. 5331 requiring the Secretary of the Treasury, not later than 5 years after enactment and every 5 years thereafter, to update each dollar figure in that section to reflect the change in the CPI‑U over the applicable 5-year period, rounded to the nearest $1,000; each adjustment takes effect on the first January 1 after publication.
Who is affected and how:
Depository institutions and financial firms: Will be the most directly affected because they file currency-transaction reports and suspicious-activity reports. Raising thresholds will reduce the number of required filings for smaller transactions, which can lower reporting volume and compliance processing costs, but will require updates to internal monitoring, reporting systems, and staff training.
Businesses and third-party representatives (including nonbank payment firms and other entities subject to reporting rules): Will see changes to when transactions trigger reporting and may face altered compliance obligations and potential software or process changes.
Individuals and consumers: Indirectly affected because fewer small-dollar transactions will be reported to government databases; this may reduce privacy concerns for routine transactions but could also reduce visibility for some types of illicit activity that use many smaller transactions.
Federal agencies and law enforcement: Agencies must change their reporting thresholds and processes and may receive fewer low-value reports. The intent is to improve the quality of reports, but agencies may express concern that higher thresholds could miss some patterns of illicit finance. Agencies will also bear administrative work to implement revised forms and guidance.
Treasury Department: Responsible for implementing threshold increases, establishing inflation-indexing rules, conducting the review of forms and recordkeeping, publishing the required report, and issuing revised forms and guidance. This creates a defined workload and timeline for Treasury.
Net effects and tradeoffs:
Compliance burden for reporting entities is likely to fall in volume (fewer filings) but will require near-term costs to change systems and processes.
Law enforcement and regulators may have fewer routine, low-value data points but potentially clearer, higher-value reporting; some enforcement stakeholders may worry about reduced visibility into financial patterns that cross the new thresholds.
The review and form-updating requirement aims to mitigate data-quality concerns by improving the usefulness of reports, but outcomes will depend on how thoroughly Treasury and agencies redesign forms and guidance.
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Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Introduced October 20, 2025 by John Neely Kennedy · Last progress October 20, 2025
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Introduced in Senate