AFFM Applauds Chairman Scott’s Introduction of the STREAMLINE Act

Washington, D.C. – Today, Senate Banking Committee Chairman Tim Scott (R-SC) announced the introduction of the “Streamlining Transaction Reporting and Ensuring Anti-Money Laundering Improvements for a New Era” (STREAMLINE) Act to modernize the Bank Secrecy Act (BSA) and update the reporting thresholds for currency transaction reports (CTRs) and suspicious activity reports (SARs).

Americans for Free Markets (AFFM) Executive Director David Ibsen issued the following statement in response:

“AFFM applauds Chairman Tim Scott and his colleagues on the introduction of the STREAMLINE Act to modernize the Banking Secrecy Act (BSA). The BSA’s reporting rules, which haven’t been updated in decades, force banks to process millions of low-value transactions that pose no real risk or represent illicit activity. Raising these reporting thresholds and refocusing compliance on legitimate risk will help banks focus on real threats like money laundering and terrorism financing.

“For too long, these outdated and vague rules have created a regulatory climate that compels banks to file countless SARs even when there is little likelihood of criminal activity. Financial institutions shouldn’t have to scrutinize or cut ties with low-risk and lawful individuals just to avoid steep penalties and regulatory second-guessing.

“This bill is yet another important step taken by Congress, along with the FIRM Act, to restore balance and fairness in the American financial system. The STREAMLINE Act ensures that banks can focus on genuine higher-risk activities and customers instead of a catch all approach that only results in unnecessary reports and excess costs, while maintaining the core objectives of the BSA: detecting money laundering, terrorism financing and other financial crimes.

“To allow banks, credit unions and other institutions to serve more customers fairly and freely, I strongly support this legislation and encourage its swift passage into law.”

Read David’s recent op-eds in the Washington Examiner and The Hill.