Press Releases

Rep. Loudermilk Introduces Bill to Increase Consumer Privacy and Modernize Financial Reporting

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Washington, September 27, 2018 | comments
Rep. Loudermilk (R-GA) issued the following statement after he introduced the Financial Reporting Threshold Modernization Act, H.R. 6850:

“The Bank Secrecy Act of 1970 has not been updated in almost five decades and has resulted in massive paperwork burdens on community banks, credit unions, payment processors, and other companies. The law requires these companies to send a report to law enforcement any time there is a single-day cash transaction of $10,000 or more, in an effort to track and combat money laundering and terrorism financing. But the law hasn’t been adjusted for inflation since it was first enacted, and this threshold would be more than $60,000 in today’s dollars. The equivalent buying power of $10,000 today would be $1,500 in 1970, and that has resulted in more than 15 million reports currently going into a black hole at the Treasury Department every year. This captures many routine, legitimate transactions, which provides little to no value to law enforcement.

“My bill simply raises the threshold from $10,000 to $30,000 which, in some instances, will reduce regulatory paperwork on small community banks and credit unions by almost 80 percent. Raising this threshold will also result in increased privacy for banking customers, while not jeopardizing law enforcement’s ability detect and investigate possible crimes.”

Summary of H.R. 6850:

• Currency transaction report threshold raised from $10,000 to $30,000
• Suspicious activity report threshold raised from $5,000 to $10,000 for financial institutions
• Suspicious activity reporting threshold raised from $2,000 to $3,000 for money services businesses (MSBs)
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