Sponsors (2)
The bill makes it easier for nonprofits to accept reward-related payments and lowers banks' reporting burden, but it reduces reporting that aids detection of illicit finance, potentially enabling misuse and creating compliance uncertainty for banks.
Financial institutions (banks) will no longer have to file certain bank-reporting forms for nonprofit reward-related payments, reducing compliance burden and paperwork for banks.
Nonprofit organizations will be able to receive and process tip- or reward-related payments without those transactions automatically triggering bank-reporting requirements, simplifying how nonprofits handle reward payments.
Banks, law enforcement, and the public will lose a reporting pathway that helps detect money laundering or illicit activity tied to reward payments, increasing the risk that illicit funds go undetected and hindering investigations.
Nonprofit organizations and law enforcement may see increased opportunities for criminals to obscure illicit payments by routing them through nonprofit reward mechanisms, raising the risk of misuse of the exemption.
Financial institutions will face greater regulatory uncertainty about when the exemption applies, which could increase legal and compliance risk for banks trying to decide whether to apply the rule.
Based on analysis of 2 sections of legislative text.
Exempts banks from certain federal transaction-reporting requirements for transactions tied to nonprofits offering cash rewards for information about crimes.
Introduced November 12, 2025 by Michael Guest · Last progress November 12, 2025
Creates a narrow exemption in federal bank reporting rules so that banks do not have to file certain transaction reports for deposits or transactions involving nonprofit organizations when the transaction is connected to the nonprofit offering a cash reward for information about a crime. It changes federal reporting law by adding a new paragraph to 31 U.S.C. § 5313(d) to require the Treasury Secretary to exempt these transactions from the subsection (a) reporting requirements. The change is limited in scope: it targets specific transactions tied to crime-tip reward payments by nonprofits and relieves depository institutions of a reporting duty for those transactions. It does not itself create funding, change tax law, or broadly alter anti-money‑laundering obligations beyond this narrow exemption.