By Gina Ellis, CRCM
H.R. 6068 was introduced June 12, 2018 by Representatives Steve Pearce (R-N.M.) and Blaine Luetkemeyer (R-Mo.) to update several sections of the Bank Secrecy Act (BSA) and other anti-money laundering laws and regulations. The proposed Counter Terrorism and Illicit Finance Act includes provisions to increase the threshold for reporting currency transactions from $10,000 to $30,000. Suspicious activity reporting thresholds would also be increased from $5,000 to $10,000. Thresholds for determining designations of money service businesses (MSBs) would be increased from $1,000 to $3,000. This proposed legislation also includes an 18-month enforcement safe harbor for financial institutions that have made a good faith effort to comply with the new customer due diligence and beneficial ownership rules beginning May 11, 2018.
If enacted as proposed, other changes include increasing time frames for reporting suspicious activity, periodic review of reporting thresholds and enhanced sharing of suspicious activity information with foreign branches, subsidiaries and affiliates. The Treasury Department would be required to take a more prominent role in coordinating anti-money laundering policy and be required to assess the usefulness of BSA reporting.
These reforms have the potential to significantly impact community banks in a positive way. We encourage you to track the progress of this proposed legislation here: https://www.govtrack.us/congress/bills/115/hr6068
As always, we are here to help solve your compliance dilemmas. Contact us at www.americanbanksystems.com or call (405) 607-7000.