The Digital Chamber (TDC) applauds Congressman Barry Loudermilk (GA-11) for introducing H.R. 1799, the Financial Reporting Threshold Modernization Act, which calls for inflation-based updates to thresholds of Currency Transaction Reports (CTRs) and Suspicious Activity Reports (SARs), as required by the Bank Secrecy Act (BSA).

H.R. 1799 modernizes financial reporting thresholds, updating their regulatory scope to partially reflect inflation. The original CTR transaction reporting threshold of $10,000 was established in 1970 by the BSA and has not been updated for over 55 years. Were this threshold to have tracked inflation, CTRs would only be necessary for transactions above $86,000, today.

H.R. 1799 updates the CTR threshold to $30,000 and requires a readjustment to accommodate inflation every five years. By reducing outdated compliance burdens on financial institutions while maintaining essential reporting to combat illicit finance, this bill ensures that the Treasury Department and law enforcement continue to receive meaningful financial information.

In addition to the larger CTR accommodation threshold adjustments, H.R 1799 would modify SAR thresholds as well. It would adjust the current $5,000 threshold for larger financial institutions to $10,000, and both the $1,000 and $2,000 thresholds for Money Services Businesses (MSBs) to $3,000. It would not amend the $0 threshold for insider abuse, terrorist funding, or structural evasion of BSA requirements.

This bill will assist financial institutions in better allocation of compliance resources and reduce administrative costs for smaller financial institutions, all while ensuring critical AML/CFT provisions are updated for the 21st century. H.R. 1799 encourages responsible financial innovation, aligning regulatory frameworks with the modern economic conditions we find ourselves in today.

TDC urges Congress to advance Rep. Loudermilk’s bill to continue establishing modern, risk-based regulatory frameworks, ensuring that AML tools remain targeted, proportionate, and effective. TDC appreciates Congress’ commitment to national security, countering the financing of terrorism, and anti-money laundering provisions associated with the SAR regime. 

If you have any questions, please reach out to policy@digitalchamber.org.