Kennedy and Tim Scott Introduce Bill to Cut Red Tape and Update 1970s Financial Reporting Standards – Press Releases

WASHINGTON – Senators John Kennedy (R-La.), Ranking Member of the Senate Banking Committee, and Tim Scott (R-S.C.), Chairman of the Senate Banking Committee, introduced the STREAMLINE Act, which would modernize the Bank Secrecy Act’s reporting requirements for Foreign Currency Transaction Reports (CTRs) and Suspicious Activity Reports (SAR).

Kennedy and Scott’s bill would update the law’s outdated financial reporting thresholds to account for more than 50 years of inflation, cutting unnecessary paperwork and protecting more Americans from bank withdrawal.

“Washington’s financial reporting requirements may have made sense in the 1970s, but in today’s economy they only burden our financial institutions. My STREAMLINE Act cuts red tape and modernizes these requirements, so law enforcement can focus on the real criminals, without depriving hard-working Americans or drowning our financial institutions in burdensome paperwork. It’s time to bring the law on banking secrecy into the 21st century and to use a little common sense.” Kennedy said.

“For decades, banks and credit unions have been burdened by outdated reporting requirements and layers of unnecessary paperwork that make it harder for them to serve consumers and small businesses. By increasing the reporting thresholds for foreign currency transaction reports and suspicious activity reports, we are providing a much-needed modernization to a law that should eradicate crimes financial, not inconvenience ordinary Americans. “ Scott said.

Background:

• The Bank Secrecy Act, signed in 1970, requires financial institutions to help government agencies detect and prevent financial crimes.

• Under the law, financial institutions must submit a Currency Transaction Report (CTR) for cash transactions exceeding $10,000 and a Suspicious Activity Report (SAR) for transactions exceeding $2,000 or $5,000 depending on the circumstances. For more than 50 years, Congress has not updated these thresholds.

• Kennedy and Scott’s STREAMLINE Act would increase these thresholds from $10,000 to $30,000, $2,000 to $3,000, and $5,000 to $10,000 respectively, and require the Treasury Department to adjust these amounts every five years to account for inflation.

Senators Cynthia Lummis (R-Wyo.), Katie Britt (R-Ala.), Mike Crapo (R-Idaho), Bill Hagerty (R-Tenn.), Bernie Moreno (R-Ohio), Mike Rounds (RS.D.) and Pete Ricketts (R-Neb.) co-sponsored the STREAMLINE Act.

“When banks and credit unions get bogged down in red tape and outdated reporting rules, it’s small businesses and everyday Americans who pay the price. The STREAMLINE Act modernizes reporting to reflect today’s economy, raising the threshold for reporting foreign currency transactions and suspicious activity, without compromising security. I’m proud to join my colleagues in ensuring that Americans have access to efficient, modern financial services that meet the needs of the 21st century. ” Lummis said.

“This is important legislation that simply updates outdated reporting thresholds that place unnecessary burdens on small banks and credit unions, allowing them to focus on their customers rather than complying with onerous reporting requirements. These financial institutions play a pivotal role serving countless communities across the country, and I am proud to support legislation to do just that,” » Britt said.

“Financial institutions face unnecessary burdens from outdated reporting requirements that hinder service to customers and small businesses. The STREAMLINE Act provides a long-overdue modernization, helping to ensure that the Bank Secrecy Act targets actual financial crime instead of generating excessive paperwork,” Crapo said.

“For too long, America’s banks have been forced to comply with outdated and burdensome reporting rules that do little to stop crime. The STREAMLINE Act eliminates bureaucratic red tape and empowers our financial institutions to detect and disrupt illicit activity. Americans deserve a modern regulatory system that works for them,” Moreno said.

“For decades, our banks and credit unions have been burdened by reporting requirements that have not kept pace with modern risks. I am proud to partner with Chairman Scott and Senator Kennedy on legislation to update these standards for today’s financial system and prevent us from ending up with the same inefficiencies 55 years from now. Financial institutions should invest in tools that stop crime, not in outdated compliance exercises that don’t improve safety. “ » said Rondes.

“After more than 50 years of inflation, the Bank Secrecy Act’s reporting thresholds are far exceeded. They need to be modernized. The STREAMLINE Act cuts red tape for banks and credit unions. It ensures that law enforcement always has the tools they need to do their jobs. It focuses enforcement where it matters and respects the privacy of law-abiding American consumers.” Ricketts said.

The Independent Community Bankers Association, American Bankers Association and America’s Credit Unions support Kennedy and Scott’s bill.

The full text of the STREAMLINE Act is available here.