The U.S. House Financial Services Committee’s National Security, Illicit Finance, and International Financial Institutions Subcommittee held a hearing, “Evaluating the Financial Crimes Network,” to examine the history and impact of the Bank Secrecy Act (BSA), review the Financial Crimes Enforcement Network’s (FinCEN) operations, and assess the status of the Corporate Transparency Act (CTA) beneficial ownership information (BOI) reporting regime. It marked the third hearing with FinCEN Director Gacki under the CTA’s Section 5336(c)(11) requirement. In prepared opening remarks, Subcommittee Chair Warren Davidson argued that the BSA has evolved into an overly broad reporting framework that consumes resources without proportional law enforcement benefit, citing FinCEN data that law enforcement accessed about 5.4% of the millions of currency transaction reports filed from 2014 to 2023. He also criticised FinCEN’s BOI rules as overbroad and raised concerns about privacy, data security, and potential misuse, referencing “Operation Chokepoint 2.0,” while noting that businesses affected by a March delay in CTA BOI enforcement were awaiting clearer guidance. Davidson urged issuance of a final rule focused on higher-risk foreign threats, indexing outdated currency transaction report thresholds for inflation, and codifying a full repeal of CTA BOI mandates for U.S. business owners.
U.S. Financial Services Committee 2025-09-09
U.S. House Financial Services Committee holds FinCEN oversight hearing and presses for Bank Secrecy Act and beneficial ownership reporting reforms
The U.S. House Financial Services Committee's Subcommittee held a hearing to evaluate the Bank Secrecy Act, FinCEN operations, and the Corporate Transparency Act's beneficial ownership information reporting regime. Subcommittee Chair Warren Davidson criticized the BSA's broad reporting framework and FinCEN's BOI rules, highlighting concerns over privacy and data security. Davidson called for a final rule targeting higher-risk foreign threats, inflation-indexed currency transaction report thresholds, and repealing CTA BOI mandates for U.S. business owners.