Sec. 213. Study and revisions to currency transaction reports and suspicious activity reports
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Every 5 years after the date of enactment of this Act, the Secretary of the Treasury shall revise regulations issued with respect to section 5313 of title 31, United States Code, to update each $10,000 threshold amount in such regulation to reflect the change in the Consumer Price Index for All Urban Consumers published by the Department of Labor, rounded to the nearest $100. For purposes of calculating the change described in the previous sentence, the Secretary shall use $10,000 as the base amount and the date of enactment of this Act as the base date. Notwithstanding subparagraph (A), the Secretary may make appropriate adjustments to the threshold amounts described under subparagraph
(A)in high-risk areas (e.g., High Intensity Financial Crime Areas or HIFCAs), if the Secretary has demonstrable evidence that shows a threshold raise would increase serious crimes, such as trafficking, or endanger national security. The Comptroller General of the United States shall carry out a study of currency transaction reports. Such study shall include— a review (carried out in consultation with the Secretary of the Treasury, the Financial Crimes Enforcement Network, the United States Attorney General, the State Attorneys General, and State, Tribal, and local law enforcement) of the effectiveness of the current currency transaction reporting regime; an analysis of the importance of currency transaction reports to law enforcement; and an analysis of the effects of raising the currency transaction report threshold. Not later than the end of the 1-year period beginning on the date of enactment of this Act, the Comptroller General shall issue a report to the Secretary of the Treasury and the Congress containing— all findings and determinations made in carrying out the study required under subparagraph (A); and recommendations for improving the current currency transaction reporting regime. The Director of the Financial Crimes Enforcement Network shall carry out a study, in consultation with industry stakeholders (including money services businesses, community banks, and credit unions), regulators, and law enforcement, of the design of a modified suspicious activity report form for certain customers and activities. Such study shall include— an examination of appropriate optimal SARs thresholds to determine the level at which a modified SARs form could be employed; an evaluation of which customers or transactions would be appropriate for a modified SAR, including— seasoned business customers; financial technology (Fintech) firms; structuring transactions; and any other customer or transaction that may be appropriate for a modified SAR; and an analysis of the most effective methods to reduce the regulatory burden imposed on financial institutions in complying with the Bank Secrecy Act, including an analysis of the effect of— modifying thresholds; shortening forms; combining Bank Secrecy Act forms; filing reports in periodic batches; and any other method that may reduce the regulatory burden. In carrying out the study required under paragraph (1), the Director shall seek to balance law enforcement priorities, regulatory burdens experienced by financial institutions, and the requirement for reports to have a high degree of usefulness to law enforcement under the Bank Secrecy Act. Not later than the end of the 1-year period beginning on the date of enactment of this Act, the Director shall issue a report to Congress containing— all findings and determinations made in carrying out the study required under subsection (a); and sample designs of modified SARs forms based on the study results. The Director may contract with a private third-party to carry out the study required under this subsection. The authority of the Director to enter into contracts under this paragraph shall be in effect for each fiscal year only to the extent and in the amounts as are provided in advance in appropriations Acts. For purposes of this section: The term Bank Secrecy Act has the meaning given that term under section 5312 of title 31, United States Code. The term regulatory burden means the man-hours to complete filings, cost of data collection and analysis, and other considerations of chapter 35 of title 44, United States Code (commonly referred to as the Paperwork Reduction Act). The term SAR and suspicious activity report mean a report of a suspicious transaction under section 5318(g) of title 31, United States Code. The term seasoned business customer , shall have such meaning as the Secretary of the Treasury shall prescribe, which shall include any person that— is incorporated or organized under the laws of the United States or any State, or is registered as, licensed by, or otherwise eligible to do business within the United States, a State, or political subdivision of a State; has maintained an account with a financial institution for a length of time as determined by the Secretary; and meet such other requirements as the Secretary may determine necessary or appropriate.