119-hr1602

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1602 Reported in House

    (RH) ]

<DOC>

 Union Calendar No. 14
119th CONGRESS
 1st Session
 H. R. 1602

 [Report No. 119-24]

 To require the Secretary of the Treasury to provide for greater 
 transparency and protections with regard to Bank Secrecy Act reports, 
 and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 February 26, 2025

Mr. Davidson (for himself and Mr. Himes) introduced the following bill; 
 which was referred to the Committee on Financial Services

 March 21, 2025

 Reported with an amendment, committed to the Committee of the Whole 
 House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
 in italic]
 [For text of introduced bill, see copy of bill as introduced on 
 February 26, 2025]

_______________________________________________________________________

 A BILL

 To require the Secretary of the Treasury to provide for greater 
 transparency and protections with regard to Bank Secrecy Act reports, 
 and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Financial Privacy Act of 2025''.

SEC. 2. FINDINGS.

 The Congress finds the following:

    (1) Pursuant to the Bank Secrecy Act (``BSA''), the 
 Secretary of the Treasury, acting through the Financial Crimes 
 Enforcement Network (``FinCEN''), collects millions of reports 
 annually on the economic activity of ordinary Americans.

    (2) Since 2001, FinCEN has applied the BSA to collect over 
 322,000,000 Currency Transaction Reports and more than 
 36,000,000 Suspicious Activity Reports, as well as nearly 
 5,000,000 Form 8300 Reports. In addition, FinCEN expects to 
 amass beneficial ownership information (``BOI'') from 
 32,000,000 companies in its initial year of collection, plus 
 5,000,000 additional companies implicated each year thereafter.

    (3) The mass of reporting collected by FinCEN suggests 
 that, while certain BSA reports might prove useful to combat 
 illicit finance, the bulk of BSA-related data may possess 
 little to no nexus to legitimate law enforcement or 
 intelligence purposes, even as it encompasses highly sensitive 
 details on the everyday lives of Americans.

    (4) By law, the Secretary of the Treasury must ensure the 
 security and confidentiality of BSA data. In a Notice of 
 Proposed Rulemaking from December 2022, FinCEN acknowledged 
 that ``BOI is highly sensitive information. FinCEN therefore 
 views it as critical to mitigate the risk of unauthorized 
 disclosure of BOI as much as possible.''.

SEC. 3. REPORTS TO CONGRESS; REVIEW OF PROTOCOLS FOR AGENCY ACCESS TO 
 REPORTS.

    (a) In General.--Chapter 53 of title 31, United States Code, is 
amended--

    (1) in subchapter II, by inserting after 

section 5326 the 
 following:
``

Sec. 5327. Reports to Congress; Review of protocols for agency access 
 to reports
 ``

    (a) Reports to Congress.--Not later than 180 days following the 
date of the enactment of this section, and annually thereafter, the 
Secretary of the Treasury shall submit to the Committee on Financial 
Services of the House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate a report containing the 
following:
 ``

    (1) The number of reports, by type, filed each year with 
 the Financial Crimes Enforcement Network (`FinCEN') under this 
 subchapter since January 1, 2022.
 ``

    (2) The total number of reports filed under this 
 subchapter retained by FinCEN.
 ``

    (3) A description of any written protocols or guidance 
 from the Secretary to national security, law enforcement, or 
 intelligence agencies regarding agency access to, and retention 
 or dissemination of, information held by FinCEN from reports 
 filed under this subchapter, including--
 ``
        (A) a description of any updates to the protocols 
 or guidance during the reporting period;
 ``
        (B) the number of queries by such agencies to 
 access the information during the reporting period; and
 ``
            (C) any denials of requests for, or revocations 
 of, access by a national security, law enforcement, or 
 intelligence agency, or by any employee thereof, with a 
 description of the reasons for the denial or 
 revocation, as the case may be.
 ``

    (b) Review and Revision of Protocols.--In consultation with the 
Director of National Intelligence and the Attorney General, the 
Secretary of the Treasury shall annually review and, as appropriate, 
revise any written protocols or guidance described under subsection

    (a) for the purposes of--
 ``

    (1) better tailoring the collection, retention, and 
 dissemination of information filed under this subchapter to 
 authorized national security, law enforcement, or intelligence 
 objectives;
 ``

    (2) enforcing prohibitions against unauthorized 
 disclosure of such information; and
 ``

    (3) protecting fully the legal rights of all United 
 States persons, including freedoms, civil liberties, and 
 privacy rights guaranteed by Federal law.
 ``
            (c) Congressional Requests; Notice of Changes.--
 ``

    (1) Requests for information.--Upon request of the chair 
 or ranking member of the Committee on Financial Services of the 
 House of Representatives or the Committee on Banking, Housing, 
 and Urban Affairs of the Senate, the Secretary shall provide a 
 copy of any written protocols or guidance described in 
 subsection

    (a)

    (3) .
 ``

    (2) Notice of revisions.--Not later than 30 days after 
 revising any written protocols or guidance described in 
 subsection

    (a)

    (3) , the Secretary shall provide a copy of such 
 revised written protocols or guidance to the Committee on 
 Financial Services of the House of Representatives and the 
 Committee on Banking, Housing, and Urban Affairs of the 
 Senate.''; and

    (2) in the table of contents for such chapter, by inserting 
 after the item relating to 

section 5326 the following:

``5327. Reports to Congress; Review of protocols for agency access to 
 reports.''.

    (b) Sunset.--On the date that is the end of the 7-year period 
beginning on the date of enactment of this Act--

    (1) section 5327 of title 31, United States Code, is 
 repealed; and

    (2) the table of contents for chapter 53 of title 31, 
 United States Code, is amended by striking the item relating to 
 

section 5327.
 Union Calendar No. 14

119th CONGRESS

 1st Session

 H. R. 1602

 [Report No. 119-24]

_______________________________________________________________________

 A BILL

 To require the Secretary of the Treasury to provide for greater 
 transparency and protections with regard to Bank Secrecy Act reports, 
 and for other purposes.

_______________________________________________________________________

 March 21, 2025

 Reported with an amendment, committed to the Committee of the Whole 
 House on the State of the Union, and ordered to be printed