Kennedy and Scott Launch Bill to Modernize 1970s Financial Reporting Standards
Senators John Kennedy (R-La.) and Tim Scott (R-S.C.) have introduced the STREAMLINE Act, aimed at modernizing financial reporting standards set by the Bank Secrecy Act (BSA) of 1970. This new legislation seeks to update reporting requirements for currency transaction reports (CTRs) and suspicious activity reports (SARs), reflecting over five decades of economic changes.
Key Features of the STREAMLINE Act
The STREAMLINE Act proposes significant increases in the financial reporting thresholds:
- Raise the CTR threshold from $10,000 to $30,000
- Increase the SAR threshold from $2,000 to $3,000 and from $5,000 to $10,000
Additionally, the Act mandates that the Treasury Department adjust these amounts every five years to accommodate inflation. The aim is to alleviate the burden of excessive paperwork that currently detracts from the focus on genuine criminal activity.
Background of the Bank Secrecy Act
Enacted in 1970, the Bank Secrecy Act obligates financial institutions to aid in the detection and prevention of financial crimes. With rules that have not been updated in over 50 years, the existing thresholds have become increasingly outdated.
Support for the Legislation
The STREAMLINE Act has gained bipartisan support, with several senators co-sponsoring the bill:
- Cynthia Lummis (R-Wyo.)
- Katie Britt (R-Ala.)
- Mike Crapo (R-Idaho)
- Bill Hagerty (R-Tenn.)
- Bernie Moreno (R-Ohio)
- Mike Rounds (R-S.D.)
- Pete Ricketts (R-Neb.)
Supporters emphasize that the current reporting requirements hinder the ability of banks and credit unions to efficiently serve their customers. They argue that the legislation would streamline procedures without compromising security.
Comments from Co-Sponsors
Senator Kennedy highlighted the importance of adapting to modern economic realities, stating, “It’s time to bring the Bank Secrecy Act into the 21st century.” Senator Scott echoed these sentiments, noting that the bill is crucial for enabling financial institutions to effectively combat crime while better serving their customers.
Industry Support
Major financial organizations, including the Independent Community Bankers Association, American Bankers Association, and America’s Credit Unions, have expressed support for the STREAMLINE Act. They share the belief that the updates will provide more efficient, modern financial services tailored to today’s needs.
As the legislative process moves forward, the focus remains on modernizing financial reporting standards to better reflect the realities of the current economy while ensuring that law enforcement has the necessary tools to address financial crimes effectively.
