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Financial Reporting Threshold Modernization Act
3/24/2026, 8:06 PM
Summary of Bill HR 1799
Specifically, the bill proposes increasing the threshold for CTRs from $10,000 to $20,000, meaning that financial institutions would only be required to report cash transactions exceeding $20,000 to the Financial Crimes Enforcement Network (FinCEN). This adjustment is intended to reduce the reporting burden on financial institutions while still allowing for the detection of suspicious financial activities.
Additionally, the bill includes provisions to update the thresholds for SARs, which are reports filed by financial institutions to alert authorities to potentially suspicious transactions. The bill aims to ensure that SAR thresholds are set at appropriate levels to effectively identify and report suspicious activities without overwhelming financial institutions with unnecessary reporting requirements. Overall, the Threshold Updating Act of 2021 seeks to strike a balance between combating financial crimes and reducing regulatory burdens on financial institutions. By updating and modernizing the thresholds for CTRs and SARs, the bill aims to enhance the effectiveness of anti-money laundering efforts while promoting efficiency and compliance within the financial industry.
Congressional Summary of HR 1799
Financial Reporting Threshold Modernization Act
This bill increases the threshold amounts for certain reporting by financial institutions, adjusts these amounts periodically for inflation, and requires a review of specified financial forms and reporting requirements.
The bill increases the threshold dollar amounts above which financial institutions are required to file currency-transaction and suspicious-activity reports with the Financial Crimes Enforcement Network (FinCEN). The bill also increases the transaction threshold above which an entity must register with FinCEN as a money services business. Further, these amounts must be updated every five years to reflect the change in the consumer price index.
Treasury must review and report on the effectiveness and efficiency of the forms and requirements regarding domestic coin and currency transactions, foreign currency transactions, and anti-money laundering and combating the financing of terrorism measures, among other matters. Treasury must also make appropriate updates to such forms.
The bill also extends through 2031 the requirement that the director of FinCEN must be made annually available for testimony before congressional committees regarding certain FinCEN issues, including resources needed to implement beneficial ownership reporting requirements.
