The American Bankers Association and 52 state bankers associations yesterday expressed support for two bills that would raise Bank Secrecy Act reporting thresholds for currency transaction reports and suspicious activity reports, and they urged federal officials to explore further reforms.
The Streamline Act (S. 3017), introduced by Senate Banking Committee Chairman Tim Scott (R-S.C.), Sen. John Kennedy (R-La.) and seven senators, would raise the CTR reporting threshold from $10,000 to $30,000, and raise certain SAR thresholds, including from $5,000 to $10,000. It would also require the Treasury Department to adjust the amounts for inflation every five years.
In the House, the Financial Reporting Threshold Modernization Act (H.R. 1799), led by Rep. Barry Loudermilk (R-Ga.), would make the same changes.
Both bills are welcomed “as part of the Treasury Department’s broader initiative to thoughtfully revise and simplify complex BSA reporting requirements to allow banks to more effectively focus resources on targeted, risk-based efforts to combat financial crime,” the associations said in a joint letter.
The associations also urged the Treasury Department and banking agencies to “continue to advance comprehensive BSA reform that would collectively allow banks to focus on real threats instead of process-focused examinations.” Possible reforms include revising BSA program rules to allow banks to focus on higher-risk customers and activity, and ensuring that nonbanks are required to comply with equivalent BSA regulations.
