To amend the Bank Secrecy Act to exempt transactions with respect to cash reward payments by crime stopper organizations from certain currency transaction reports.
- Bill Number
- H.R. 6029
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-11-12: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-02-05T09:06:54Z
AI-Generated Summary
Purpose
This bill (H.R. 6029) aims to modify the Bank Secrecy Act—a U.S. law that requires financial institutions to report certain cash transactions to help prevent money laundering and other financial crimes—by creating an exemption for specific payments made by nonprofit crime-fighting organizations.
Key Provisions
- Exemption for Crime Stopper Organizations: The bill adds a new subsection to Section 5313(d) of title 31, United States Code, directing the Secretary of the Treasury to exempt banks (depository institutions) from reporting requirements under subsection (a) for transactions involving nonprofits.
- Scope of Exemption: The exemption applies only to transactions where the nonprofit provides a cash reward in exchange for information about a crime, such as tips submitted to crime stopper programs.
Significant Changes to Existing Law
- Addition to Reporting Rules: Currently, the Bank Secrecy Act requires banks to file Currency Transaction Reports (CTRs) for cash transactions over $10,000. This bill introduces a targeted exemption for reward payments by qualifying nonprofits, which were previously subject to these reports.
- No Broader Alterations: The change is narrow, preserving general reporting obligations while carving out this specific category to reduce administrative hurdles for legitimate crime-reporting activities.
Potential Impacts
- On Government Agencies: The U.S. Department of the Treasury will need to implement and oversee the exemption process, potentially streamlining its review of financial reports related to crime tips without affecting overall anti-money laundering efforts.
- On Citizens: Individuals providing crime tips may receive rewards more efficiently, as banks face fewer reporting requirements, possibly encouraging greater public participation in crime prevention.
- On International Relations: Minimal direct impact, as the bill focuses on domestic financial reporting and nonprofit activities within the U.S.
- Broader Effects: Could indirectly support law enforcement by facilitating faster reward disbursements, though it might slightly reduce visibility into large cash flows for these transactions.
Main Stakeholders Affected
- Nonprofit Crime Stopper Organizations: Benefit from simplified reward payments, reducing paperwork and delays in disbursing cash to tip providers.
- Depository Institutions (Banks): Relieved of filing CTRs for these specific transactions, lowering compliance costs.
- U.S. Department of the Treasury: Responsible for granting and administering the exemptions.
- Law Enforcement and the Public: Indirectly gain from potentially increased crime tips, as easier reward processes may boost community involvement in reporting crimes.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens the Bank Secrecy Act's balance between financial oversight and supporting public safety initiatives by exempting verifiable, non-suspicious transactions. It requires nonprofits to qualify as such, implying some verification process to prevent abuse.
- Constitutional Implications: None apparent; the bill aligns with Congress's authority to regulate financial reporting and does not infringe on privacy rights, as exemptions are limited to transparent crime-related activities.
- Political Implications: Demonstrates bipartisan support for enhancing crime prevention tools, potentially appealing to lawmakers focused on public safety without undermining anti-crime financial safeguards. As an introduced bill referred to the House Committee on Financial Services, its passage could set a precedent for similar exemptions in other nonprofit sectors.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2025-11-12: Referred to the House Committee on Financial Services.
- 2025-11-12: Introduced in House
- 2025-11-12: Introduced in House
Bill Versions
- To amend the Bank Secrecy Act to exempt transactions with respect to cash reward payments by crime stopper organizations from certain currency transaction reports. — issued 2025-11-12 — PDF (2 pages)