Alabama House Bill HB297

Alabama 2025 Regular Session

• Introduced: 2/18/25
• Refer: 2/18/25
• Report Pass: 3/19/25
• Refer: 3/20/25
• Refer: 3/19/25
• Report Pass: 4/23/25
• Engrossed: 4/29/25
• Refer: 5/1/25

Caption

Cash transactions; report certain cash transactions to Alabama Securities Commission required

Impact

The passage of HB 297 is expected to have a significant impact on how money transmission businesses operate within Alabama. By instituting mandatory reporting requirements, the bill aims to combat money laundering and other illicit activities that often involve significant cash transactions. Amendments include civil and criminal penalties for non-compliance, with offenders facing substantial fines or felony charges upon repeated violations. This will likely lead to increased administrative burdens for businesses, as they adapt to the new compliance standards while also promoting greater transparency in cash transactions.

Summary

House Bill 297 seeks to amend the Code of Alabama 1975, introducing stricter reporting requirements for certain cash transactions related to money transmission businesses. Specifically, the bill will require businesses to monitor, report, and maintain records of cash transactions exceeding one thousand dollars, which must be kept for a minimum of five years. Additionally, suspicious cash transactions must also be reported within a set timeframe, thereby enhancing oversight and accountability within the sector. The legislation is timed to go into effect on October 1, 2025, aiming to strengthen financial regulatory measures in Alabama.

Sentiment

General sentiment towards HB 297 appears to be supportive among legislators who emphasize the necessity of stricter regulations as a means of protecting the financial system from abuse. Proponents argue that these measures are crucial for fostering integrity in financial transactions and ensuring consumer trust. However, there may also be concerns about the logistical implications for businesses required to implement these reporting systems, which could be perceived as burdensome and costly, leading to a mixed reaction among the business community.

Contention

Notable points of contention surrounding HB 297 include the potential unintended consequences of heightened regulatory scrutiny on smaller money transmission services. Critics may argue that such stringent requirements could disproportionately affect smaller operators, forcing some out of the market due to compliance costs. Additionally, there are concerns about privacy implications and how the regulation will be enforced, with opponents advocating for a balanced approach that protects both public interests and the operational viability of businesses in the sector.