HR1799-119

What This Bill Does

The Financial Reporting Threshold Modernization Act updates several Bank Secrecy Act dollar thresholds that have not kept pace with inflation. Treasury must revise Currency Transaction Report and international transportation-of-currency rules under title 31 so $10,000 thresholds become $30,000, and must update those thresholds every five years using the Consumer Price Index for All Urban Consumers, rounded to the nearest $500. Section 5331 cash-receipt reporting thresholds also move from $10,000 to $30,000 and receive five-year inflation updates. Federal agencies that issue suspicious-activity reporting rules must raise $5,000 thresholds to $10,000 and $2,000 thresholds to $3,000 and update them every five years. Treasury must revise 31 CFR 1010.100(ff) so $1,000 money-services-business threshold references become $3,000 with inflation updates. Within 360 days, Treasury must consult private-sector stakeholders and law enforcement, review BSA forms and reporting and recordkeeping requirements under sections 5313, 5315, and 5318, analyze aggregation, prioritization, and automation, update forms as needed, complete Anti-Money Laundering Act review duties, and report recommendations to Senate Banking and House Financial Services. The bill also extends a FinCEN director testimony interval on beneficial ownership information from five years to ten years.

Who Benefits and How

Banks, credit unions, money services businesses, casinos, dealers, and other BSA-regulated firms benefit from higher reporting thresholds that may reduce low-value filings and compliance workload. Small businesses receiving cash payments benefit from the $30,000 section 5331 threshold if fewer ordinary transactions trigger IRS Form 8300-style reporting. Consumers and businesses conducting lawful cash transactions benefit from reduced reporting at lower transaction amounts. Treasury and FinCEN benefit from a required review focused on making forms more effective and efficient for identifying illicit finance. Law enforcement benefits if revised forms and automation improve prioritization of genuinely suspicious activity.

Who Bears the Burden and How

The Treasury Secretary must revise regulations within 180 days, update thresholds every five years, consult stakeholders, review forms, complete AML Act reports, and submit recommendations to Congress. Federal departments and agencies with suspicious-activity reporting rules must update their thresholds and inflation adjustments. FinCEN must adapt beneficial-ownership testimony timing and support Treasury's review. Law enforcement agencies may receive fewer reports at lower dollar levels and must rely on updated forms and priorities. Anti-money-laundering compliance teams must update policies, systems, training, and monitoring thresholds.

Key Provisions

• Raises title 31 $10,000 currency reporting thresholds to $30,000 within 180 days.
• Requires five-year CPI-U inflation updates rounded to the nearest $500.
• Raises suspicious-activity reporting thresholds from $5,000 to $10,000 and from $2,000 to $3,000.
• Raises specified money-services-business threshold references from $1,000 to $3,000.
• Requires Treasury to review BSA forms, recordkeeping, aggregation, prioritization, and automation within 360 days.
• Requires consultation with private-sector stakeholders and law enforcement.
• Directs Treasury to report recommendations to Senate Banking and House Financial Services.
• Extends FinCEN beneficial-ownership testimony timing from five years to ten years.