Financial Reporting Threshold Modernization Act
Summary
The Financial Reporting Threshold Modernization Act would update financial reporting requirements that have remained largely unchanged since the 1970s. Specifically, the bill would raise the threshold for reporting cash transactions to the Financial Crimes Enforcement Network from $10,000 to $30,000 and increase suspicious activity reporting thresholds from $5,000 to $10,000. The bill would also require these thresholds to be automatically adjusted for inflation every five years going forward.
Proponents argue that the current thresholds capture routine transactions like used car purchases and small business deposits that were not the original intent of the Bank Secrecy Act of 1970. If enacted, the bill would reduce compliance reporting burdens on banks, credit unions, and money service businesses. The Congressional Budget Office estimates the bill would have minimal fiscal impact, with costs less than $500,000 annually. The bill has passed the House Committee on Financial Services and is eligible for a floor vote, though it would still need Senate approval and presidential signature to become law.