Financial Reporting Threshold Modernization Act

Bill Number

H.R. 1799

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2026-03-19: Placed on the Union Calendar, Calendar No. 478.

Last Updated

2026-06-11T20:56:42Z

AI-Generated Summary

Purpose

The Financial Reporting Threshold Modernization Act (H.R. 1799) aims to update outdated monetary thresholds in U.S. financial reporting laws to account for inflation. This modernization seeks to reduce unnecessary reporting burdens on businesses and individuals while maintaining tools to combat money laundering and illicit finance. It also requires reviews to improve the efficiency of reporting forms and processes.

Key Provisions

• Currency Transaction Reports (CTRs): The Secretary of the Treasury must revise regulations under sections 5313 and 5315 of title 31, U.S. Code, to increase the reporting threshold for cash transactions from $10,000 to $30,000 within 180 days of enactment. This threshold must be adjusted every 5 years based on the Consumer Price Index (CPI) for All Urban Consumers, rounded to the nearest $500.
• Nonfinancial Trade or Business Reports: Section 5331 of title 31, U.S. Code, is amended to raise the threshold for reporting cash received by nonfinancial businesses (e.g., retailers) from $10,000 to $30,000, with the same 5-year CPI adjustment requirement.
• Suspicious Activity Reports (SARs): Federal agencies issuing regulations under section 5318(g) of title 31, U.S. Code, must update SAR thresholds within 180 days—increasing the $5,000 threshold to $10,000 and the $2,000 threshold to $3,000—with 5-year CPI adjustments.
• Money Services Business (MSB) Definition: The Treasury Secretary must revise regulations (31 CFR 1010.100(ff)) to increase the MSB threshold from $1,000 to $3,000 within 180 days, with 5-year CPI updates. (MSBs include entities like check cashers or money transmitters.)
• Review and Reporting Requirements: Within 360 days of enactment, the Treasury Secretary, in consultation with private sector stakeholders and law enforcement, must:
• Review CTR, SAR, and related forms and requirements for efficiency, focusing on aggregation, prioritization, and automation to better detect illicit finance.
• Update forms as needed, consistent with existing law.
• Conduct and report on specific reviews mandated by the Anti-Money Laundering Act of 2020.
• Submit a report to congressional committees summarizing the review and recommending further updates.
• FinCEN Director Testimony: Amends section 5336(c)(11)(A) of title 31, U.S. Code, to extend the interval for required testimony by the Director of the Financial Crimes Enforcement Network (FinCEN) from 5 years to 10 years. (FinCEN is a Treasury bureau that collects and analyzes financial reports to fight crime.)

Significant Changes to Existing Law

• Threshold Increases: Raises fixed dollar amounts in laws and regulations from 1970s/1980s levels (e.g., $10,000 for CTRs, established in 1970) to current equivalents ($30,000), addressing inflation without altering the core reporting framework.
• Inflation Indexing: Introduces mandatory, periodic CPI-based adjustments every 5 years for all specified thresholds, a new mechanism to prevent future obsolescence.
• Regulatory Updates and Reviews: Mandates immediate revisions and a comprehensive efficiency review of reporting forms, building on but expanding the Anti-Money Laundering Act of 2020's requirements.
• Testimony Extension: Doubles the time between required FinCEN Director testimonies to Congress, potentially reducing administrative demands.

Potential Impacts

• On Government Agencies: The Treasury Department and FinCEN will face initial workload for revisions and reviews but benefit from automated, streamlined processes long-term, potentially improving focus on high-risk illicit activities. Law enforcement may see fewer low-value reports, allowing better prioritization of threats.
• On Citizens and Businesses: Reduces compliance burdens for individuals and small businesses handling routine cash transactions below the new thresholds (e.g., retailers or service providers), saving time and costs on paperwork. However, it could slightly narrow visibility into smaller suspicious activities.
• On International Relations: Minimal direct impact, but enhanced efficiency in U.S. anti-money laundering (AML) reporting could strengthen global cooperation efforts, as FinCEN data is shared internationally to combat cross-border crime.

Main Stakeholders Affected

• Financial Institutions and MSBs: Banks, money transmitters, and cash-intensive businesses (e.g., casinos, jewelers) will file fewer reports, easing regulatory compliance.
• Nonfinancial Businesses: Retailers and trades receiving cash payments benefit from higher thresholds, reducing reporting for everyday operations.
• Government Entities: Treasury Department, FinCEN, and federal agencies like the IRS or DOJ, which rely on these reports for investigations.
• Law Enforcement and Regulators: Agencies combating money laundering (e.g., FBI) gain from efficiency improvements but must adapt to changed data flows.
• Congressional Committees: Banking and Financial Services committees receive required reports, influencing future oversight.
• Private Sector Stakeholders: Consulted in reviews, including industry groups representing banks and businesses affected by AML rules.

Notable Legal, Constitutional, or Political Implications

• Legal: Aligns with the Bank Secrecy Act's (1970) goal of balancing privacy with financial transparency by modernizing thresholds without weakening core AML tools. The CPI adjustments ensure ongoing relevance, potentially reducing future litigation over outdated regulations.
• Constitutional: No direct challenges; supports Fourth Amendment privacy interests by limiting routine reporting on small transactions, while preserving government authority to regulate financial crimes under commerce clause powers.
• Political: Bipartisan sponsorship (e.g., Republicans and Democrats) suggests broad support for reducing regulatory burdens amid inflation concerns. Could spark debate on AML effectiveness—critics might argue higher thresholds weaken crime detection, while supporters highlight efficiency gains. The bill's focus on automation and stakeholder input promotes evidence-based policymaking.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Loudermilk, Barry [R-GA-11]

Cosponsors (20)

Rep. Barr, Andy [R-KY-6], Rep. Downing, Troy [R-MT-2], Rep. Moore, Tim [R-NC-14], Rep. Rose, John W. [R-TN-6], Rep. Bilirakis, Gus M. [R-FL-12], Rep. Collins, Mike [R-GA-10], Rep. Carter, Earl L. "Buddy" [R-GA-1], Rep. Fulcher, Russ [R-ID-1], Rep. Massie, Thomas [R-KY-4], Rep. Begich, Nicholas J. [R-AK-At Large], Rep. Soto, Darren [D-FL-9], Rep. Fleischmann, Charles J. "Chuck" [R-TN-3], Rep. Nunn, Zachary [R-IA-3], Rep. Biggs, Sheri [R-SC-3], Rep. Rogers, Mike D. [R-AL-3], Rep. Ezell, Mike [R-MS-4], Rep. Hudson, Richard [R-NC-9], Rep. Harshbarger, Diana [R-TN-1], Rep. Maloy, Celeste [R-UT-2], Rep. Harrigan, Pat [R-NC-10]

Recent Actions

• 2026-03-19: Placed on the Union Calendar, Calendar No. 478.
• 2026-03-19: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-556.
• 2026-03-19: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-556.
• 2026-01-22: Ordered to be Reported (Amended) by the Yeas and Nays: 30 - 24.
• 2026-01-22: Committee Consideration and Mark-up Session Held
• 2025-03-03: Referred to the House Committee on Financial Services.
• 2025-03-03: Introduced in House
• 2025-03-03: Introduced in House

Bill Versions

• Financial Reporting Threshold Modernization Act — issued 2025-03-03 — PDF (3 pages)
• Financial Reporting Threshold Modernization Act — issued 2026-03-19 — PDF (8 pages)