Us Congress 2025-2026 Regular Session

Us Congress House Bill HB1602 Compare Versions

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Version 2 (New)

Old	New		Differences
1		-	IB
2		-	Union Calendar No. 14
	1	+	I
3	2		119THCONGRESS
4	3		1
5	4		STSESSION H. R. 1602
6		-	[Report No. 119–24]
7	5		To require the Secretary of the Treasury to provide for greater transparency
8	6		and protections with regard to Bank Secrecy Act reports, and for other
9	7		purposes.
10	8		IN THE HOUSE OF REPRESENTATIVES
11	9		FEBRUARY26, 2025
12	10		Mr. D
13	11		AVIDSON(for himself and Mr. HIMES) introduced the following bill;
14	12		which was referred to the Committee on Financial Services
15		-	M
16		-	ARCH21, 2025
17		-	Reported with an amendment, committed to the Committee of the Whole
18		-	House on the State of the Union, and ordered to be printed
19		-	[Strike out all after the enacting clause and insert the part printed in italic]
20		-	[For text of introduced bill, see copy of bill as introduced on February 26, 2025]
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23		-	•HR 1602 RH
24	13		A BILL
25	14		To require the Secretary of the Treasury to provide for
26	15		greater transparency and protections with regard to
27	16		Bank Secrecy Act reports, and for other purposes.
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31	17		Be it enacted by the Senate and House of Representa-1
32	18		tives of the United States of America in Congress assembled, 2
33	19		SECTION 1. SHORT TITLE. 3
34	20		This Act may be cited as the ‘‘Financial Privacy Act 4
35	21		of 2025’’. 5
36	22		SEC. 2. FINDINGS. 6
37	23		The Congress finds the following: 7
38		-	(1) Pursuant to the Bank Secrecy Act (‘‘BSA’’), 8
39		-	the Secretary of the Treasury, acting through the Fi-9
40		-	nancial Crimes Enforcement Network (‘‘FinCEN’’), 10
41		-	collects millions of reports annually on the economic 11
42		-	activity of ordinary Americans. 12
43		-	(2) Since 2001, FinCEN has applied the BSA to 13
44		-	collect over 322,000,000 Currency Transaction Re-14
45		-	ports and more than 36,000,000 Suspicious Activity 15
46		-	Reports, as well as nearly 5,000,000 Form 8300 Re-16
47		-	ports. In addition, FinCEN expects to amass bene-17
48		-	ficial ownership information (‘‘BOI’’) from 18
49		-	32,000,000 companies in its initial year of collection, 19
50		-	plus 5,000,000 additional companies implicated each 20
51		-	year thereafter. 21
52		-	(3) The mass of reporting collected by FinCEN 22
53		-	suggests that, while certain BSA reports might prove 23
54		-	useful to combat illicit finance, the bulk of BSA-re-24
55		-	lated data may possess little to no nexus to legitimate 25
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	24	+	(1) Pursuant to the Bank Secrecy Act 8
	25	+	(‘‘BSA’’), the Secretary of the Treasury, acting 9
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	28	+	•HR 1602 IH
	29	+	through the Financial Crimes Enforcement Network 1
	30	+	(‘‘FinCEN’’), collects millions of reports annually on 2
	31	+	the economic activity of ordinary Americans. 3
	32	+	(2) Since 2001, FinCEN has applied the BSA 4
	33	+	to collect over 322,000,000 Currency Transaction 5
	34	+	Reports and more than 36,000,000 Suspicious Ac-6
	35	+	tivity Reports, as well as nearly 5,000,000 Form 7
	36	+	8300 Reports. In addition, FinCEN expects to 8
	37	+	amass beneficial ownership information (‘‘BOI’’) 9
	38	+	from 32,000,000 companies in its initial year of col-10
	39	+	lection, plus 5,000,000 additional companies impli-11
	40	+	cated each year thereafter. 12
	41	+	(3) The mass of reporting collected by FinCEN 13
	42	+	suggests that, while certain BSA reports might 14
	43	+	prove useful to combat illicit finance, the bulk of 15
	44	+	BSA-related data may possess little to no nexus to 16
	45	+	legitimate law enforcement or intelligence purposes, 17
	46	+	even as it encompasses highly sensitive details on the 18
	47	+	everyday lives of Americans. 19
	48	+	(4) By law, the Secretary of the Treasury must 20
	49	+	ensure the security and confidentiality of BSA data. 21
	50	+	In a Notice of Proposed Rulemaking from December 22
	51	+	2022, FinCEN acknowledged that ‘‘BOI is highly 23
	52	+	sensitive information. FinCEN therefore views it as 24
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	55	+	•HR 1602 IH
	56	+	critical to mitigate the risk of unauthorized disclo-1
	57	+	sure of BOI as much as possible.’’. 2
	58	+	SEC. 3. REPORTS TO CONGRESS; REVIEW OF PROTOCOLS 3
	59	+	FOR AGENCY ACCESS TO REPORTS. 4
	60	+	(a) I
	61	+	NGENERAL.—Chapter 53 of title 31, United 5
	62	+	States Code, is amended— 6
	63	+	(1) in subchapter II, by inserting after section 7
	64	+	5326 the following: 8
	65	+	‘‘§ 5327. Reports to Congress; Review of protocols for 9
	66	+	agency access to reports 10
	67	+	‘‘(a) R
	68	+	EPORTS TOCONGRESS.—Not later than 180 11
	69	+	days following the date of the enactment of this section, 12
	70	+	and annually thereafter, the Secretary of the Treasury 13
	71	+	shall submit to the Committee on Financial Services of 14
	72	+	the House of Representatives and the Committee on 15
	73	+	Banking, Housing, and Urban Affairs of the Senate a re-16
	74	+	port containing the following: 17
	75	+	‘‘(1) The number of reports, by type, filed each 18
	76	+	year with the Financial Crimes Enforcement Net-19
	77	+	work (‘FinCEN’) under this subchapter since Janu-20
	78	+	ary 1, 2022. 21
	79	+	‘‘(2) The total number of reports filed under 22
	80	+	this subchapter retained by FinCEN. 23
	81	+	‘‘(3) A description of any written protocols or 24
	82	+	guidance from the Secretary to national security, 25
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58		-	•HR 1602 RH
59		-	law enforcement or intelligence purposes, even as it 1
60		-	encompasses highly sensitive details on the everyday 2
61		-	lives of Americans. 3
62		-	(4) By law, the Secretary of the Treasury must 4
63		-	ensure the security and confidentiality of BSA data. 5
64		-	In a Notice of Proposed Rulemaking from December 6
65		-	2022, FinCEN acknowledged that ‘‘BOI is highly sen-7
66		-	sitive information. FinCEN therefore views it as crit-8
67		-	ical to mitigate the risk of unauthorized disclosure of 9
68		-	BOI as much as possible.’’. 10
69		-	SEC. 3. REPORTS TO CONGRESS; REVIEW OF PROTOCOLS 11
70		-	FOR AGENCY ACCESS TO REPORTS. 12
71		-	(a) I
72		-	NGENERAL.—Chapter 53 of title 31, United 13
73		-	States Code, is amended— 14
74		-	(1) in subchapter II, by inserting after section 15
75		-	5326 the following: 16
76		-	‘‘§ 5327. Reports to Congress; Review of protocols for 17
77		-	agency access to reports 18
78		-	‘‘(a) R
79		-	EPORTS TOCONGRESS.—Not later than 180 19
80		-	days following the date of the enactment of this section, and 20
81		-	annually thereafter, the Secretary of the Treasury shall sub-21
82		-	mit to the Committee on Financial Services of the House 22
83		-	of Representatives and the Committee on Banking, Hous-23
84		-	ing, and Urban Affairs of the Senate a report containing 24
85		-	the following: 25
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	85	+	•HR 1602 IH
	86	+	law enforcement, or intelligence agencies regarding 1
	87	+	agency access to, and retention or dissemination of, 2
	88	+	information held by FinCEN from reports filed 3
	89	+	under this subchapter, including— 4
	90	+	‘‘(A) a description of any updates to the 5
	91	+	protocols or guidance during the reporting pe-6
	92	+	riod; 7
	93	+	‘‘(B) the number of queries by such agen-8
	94	+	cies to access the information during the report-9
	95	+	ing period; and 10
	96	+	‘‘(C) any denials of requests for, or revoca-11
	97	+	tions of, access by a national security, law en-12
	98	+	forcement, or intelligence agency, or by any em-13
	99	+	ployee thereof, with a description of the reasons 14
	100	+	for the denial or revocation, as the case may be. 15
	101	+	‘‘(b) R
	102	+	EVIEW ANDREVISION OFPROTOCOLS.—In 16
	103	+	consultation with the Director of National Intelligence and 17
	104	+	the Attorney General, the Secretary of the Treasury shall 18
	105	+	annually review and, as appropriate, revise any written 19
	106	+	protocols or guidance described under subsection (a) for 20
	107	+	the purposes of— 21
	108	+	‘‘(1) better tailoring the collection, retention, 22
	109	+	and dissemination of information filed under this 23
	110	+	subchapter to authorized national security, law en-24
	111	+	forcement, or intelligence objectives; 25
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88		-	•HR 1602 RH
89		-	‘‘(1) The number of reports, by type, filed each 1
90		-	year with the Financial Crimes Enforcement Network 2
91		-	(‘FinCEN’) under this subchapter since January 1, 3
92		-	2022. 4
93		-	‘‘(2) The total number of reports filed under this 5
94		-	subchapter retained by FinCEN. 6
95		-	‘‘(3) A description of any written protocols or 7
96		-	guidance from the Secretary to national security, law 8
97		-	enforcement, or intelligence agencies regarding agency 9
98		-	access to, and retention or dissemination of, informa-10
99		-	tion held by FinCEN from reports filed under this 11
100		-	subchapter, including— 12
101		-	‘‘(A) a description of any updates to the 13
102		-	protocols or guidance during the reporting pe-14
103		-	riod; 15
104		-	‘‘(B) the number of queries by such agencies 16
105		-	to access the information during the reporting 17
106		-	period; and 18
107		-	‘‘(C) any denials of requests for, or revoca-19
108		-	tions of, access by a national security, law en-20
109		-	forcement, or intelligence agency, or by any em-21
110		-	ployee thereof, with a description of the reasons 22
111		-	for the denial or revocation, as the case may be. 23
112		-	‘‘(b) R
113		-	EVIEW ANDREVISION OFPROTOCOLS.—In con-24
114		-	sultation with the Director of National Intelligence and the 25
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	114	+	•HR 1602 IH
	115	+	‘‘(2) enforcing prohibitions against unauthor-1
	116	+	ized disclosure of such information; and 2
	117	+	‘‘(3) protecting fully the legal rights of all 3
	118	+	United States persons, including freedoms, civil lib-4
	119	+	erties, and privacy rights guaranteed by Federal law. 5
	120	+	‘‘(c) C
	121	+	ONGRESSIONAL REQUESTS; NOTICE OF 6
	122	+	C
	123	+	HANGES.— 7
	124	+	‘‘(1) R
	125	+	EQUESTS FOR INFORMATION .—Upon re-8
	126	+	quest of the chair or ranking member of the Com-9
	127	+	mittee on Financial Services of the House of Rep-10
	128	+	resentatives or the Committee on Banking, Housing, 11
	129	+	and Urban Affairs of the Senate, the Secretary shall 12
	130	+	provide a copy of any written protocols or guidance 13
	131	+	described in subsection (a)(3). 14
	132	+	‘‘(2) N
	133	+	OTICE OF CHANGES.—Not later than 30 15
	134	+	days after revising any written protocols or guidance 16
	135	+	described in subsection (a)(3), the Secretary shall 17
	136	+	provide a copy of such revised written protocols or 18
	137	+	guidance to the Committee on Financial Services of 19
	138	+	the House of Representatives and the Committee on 20
	139	+	Banking, Housing, and Urban Affairs of the Sen-21
	140	+	ate.’’; and 22
	141	+	(2) in the table of contents for such chapter, by 23
	142	+	inserting after the item relating to section 5326 the 24
	143	+	following: 25
	144	+	‘‘5327. Reports to Congress; Review of protocols for agency access to reports.’’.
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117		-	•HR 1602 RH
118		-	Attorney General, the Secretary of the Treasury shall annu-1
119		-	ally review and, as appropriate, revise any written proto-2
120		-	cols or guidance described under subsection (a) for the pur-3
121		-	poses of— 4
122		-	‘‘(1) better tailoring the collection, retention, and 5
123		-	dissemination of information filed under this sub-6
124		-	chapter to authorized national security, law enforce-7
125		-	ment, or intelligence objectives; 8
126		-	‘‘(2) enforcing prohibitions against unauthorized 9
127		-	disclosure of such information; and 10
128		-	‘‘(3) protecting fully the legal rights of all United 11
129		-	States persons, including freedoms, civil liberties, and 12
130		-	privacy rights guaranteed by Federal law. 13
131		-	‘‘(c) C
132		-	ONGRESSIONAL REQUESTS; NOTICE OF 14
133		-	C
134		-	HANGES.— 15
135		-	‘‘(1) R
136		-	EQUESTS FOR INFORMATION .—Upon re-16
137		-	quest of the chair or ranking member of the Com-17
138		-	mittee on Financial Services of the House of Rep-18
139		-	resentatives or the Committee on Banking, Housing, 19
140		-	and Urban Affairs of the Senate, the Secretary shall 20
141		-	provide a copy of any written protocols or guidance 21
142		-	described in subsection (a)(3). 22
143		-	‘‘(2) N
144		-	OTICE OF REVISIONS.—Not later than 30 23
145		-	days after revising any written protocols or guidance 24
146		-	described in subsection (a)(3), the Secretary shall pro-25
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149		-	•HR 1602 RH
150		-	vide a copy of such revised written protocols or guid-1
151		-	ance to the Committee on Financial Services of the 2
152		-	House of Representatives and the Committee on 3
153		-	Banking, Housing, and Urban Affairs of the Senate.’’; 4
154		-	and 5
155		-	(2) in the table of contents for such chapter, by 6
156		-	inserting after the item relating to section 5326 the 7
157		-	following: 8
158		-	‘‘5327. Reports to Congress; Review of protocols for agency access to reports.’’.
159		-	(b) SUNSET.—On the date that is the end of the 7- 9
160		-	year period beginning on the date of enactment of this 10
161		-	Act— 11
162		-	(1) section 5327 of title 31, United States Code, 12
163		-	is repealed; and 13
164		-	(2) the table of contents for chapter 53 of title 31, 14
165		-	United States Code, is amended by striking the item 15
166		-	relating to section 5327. 16
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169		-	14
170		-	119
171		-	TH
172		-	CONGRESS
173		-	1
174		-	ST
175		-	S
176		-	ESSION
177		-
178		-	H. R. 1602
179		-	[Report No. 119–24]
180		-	A BILL
181		-	To require the Secretary of the Treasury to provide
182		-	for greater transparency and protections with re-
183		-	gard to Bank Secrecy Act reports, and for other
184		-	purposes.
185		-	M
186		-	ARCH
187		-	21, 2025
188		-	Reported with an amendment, committed to the Com-
189		-	mittee of the Whole House on the State of the Union,
190		-	and ordered to be printed
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	147	+	•HR 1602 IH
	148	+	(b) SUNSET.—On the date that is the end of the 7- 1
	149	+	year period beginning on the date of enactment of this 2
	150	+	Act— 3
	151	+	(1) section 5327 of title 31, United States 4
	152	+	Code, is repealed; and 5
	153	+	(2) the table of contents for chapter 53 of title 6
	154	+	31, United States Code, is amended by striking the 7
	155	+	item relating to section 5327. 8
	156	+	Æ
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