H.R.1799 - Financial Reporting Threshold Modernization Act (119th Congress)
Summary
H.R.1799, the Financial Reporting Threshold Modernization Act, aims to update the thresholds for certain currency transaction reports (CTRs) and suspicious activity reports (SARs). The bill proposes increasing the threshold for CTRs from $10,000 to $30,000 and adjusting it every five years based on the Consumer Price Index (CPI). It also raises the threshold for reports related to coins and currency received in nonfinancial trades or businesses to $30,000, with similar CPI-based adjustments every five years.
Expected Effects
The primary effect of this bill would be to reduce the number of currency transaction reports and suspicious activity reports filed with the Treasury Department and other federal agencies. This could ease the burden on financial institutions and businesses, allowing them to focus resources elsewhere. The periodic adjustments based on the CPI aim to maintain the real value of the thresholds over time, preventing inflation from eroding their effectiveness.
Potential Benefits
- Reduces the reporting burden on financial institutions and businesses by increasing the threshold for currency transaction reports and suspicious activity reports.
- Adjusts thresholds periodically based on the Consumer Price Index (CPI), maintaining the real value of the thresholds over time.
- Frees up resources for financial institutions and regulatory agencies, potentially allowing them to focus on more significant financial crimes.
- Simplifies compliance for businesses that handle large amounts of cash.
- May reduce the number of false positives in suspicious activity reports, leading to more efficient investigations.
Most Benefited Areas:
Potential Disadvantages
- Could potentially make it easier to launder money or finance illicit activities by reducing the number of transactions that are reported.
- May require additional resources for regulatory agencies to monitor compliance with the new thresholds.
- Could lead to a decrease in the amount of information available to law enforcement for investigating financial crimes.
- The increased thresholds might not keep pace with sophisticated money laundering techniques.
- There is a risk that the updated thresholds could be exploited by individuals or entities seeking to evade detection.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with Congress's power to regulate commerce and coin money, as outlined in Article I, Section 8 of the Constitution. Specifically, the regulation of financial transactions and reporting requirements falls under the purview of Congress's authority to regulate interstate and foreign commerce. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).