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(c) RULEMAKING.—Not later than the end of the 
180-day period beginning on the date the Secretary issues 
the report required under subsection (b)(2), the Secretary 
shall issue regulations to carry out the amendments made 
by subsection (a). 
SEC. 212. GEOGRAPHIC TARGETING ORDER. 
The Secretary of the Treasury shall issue a geo-
graphic targeting order, similar to the order issued by the 
Financial Crimes Enforcement Network on November 15, 
2018, that— 
(1) applies to commercial real estate to the 
same extent, with the exception of having the same 
thresholds, as the order issued by FinCEN on No-
vember 15, 2018, applies to residential real estate; 
and 
(2) establishes a specific threshold for commer-
cial real estate. 
SEC. 213. STUDY AND REVISIONS TO CURRENCY TRANS-
ACTION REPORTS AND SUSPICIOUS ACTIVITY 
REPORTS. 
(a) CURRENCY TRANSACTION REPORTS.— 
(1) CTR INDEXED FOR INFLATION.— 
(A) IN GENERAL.—Every 5 years after the 
date of enactment of this Act, the Secretary of 
the Treasury shall revise regulations issued 
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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 pur-
poses of calculating the change described in the 
previous sentence, the Secretary shall use 
$10,000 as the base amount and the date of en-
actment of this Act as the base date. 
(B) EXCEPTION.—Notwithstanding sub-
paragraph (A), the Secretary may make appro-
priate 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 demon-
strable evidence that shows a threshold raise 
would increase serious crimes, such as traf-
ficking, or endanger national security. 
(2) GAO CTR STUDY.— 
(A) STUDY.—The Comptroller General of 
the United States shall carry out a study of 
currency transaction reports. Such study shall 
include— 
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(i) a review (carried out in consulta-
tion with the Secretary of the Treasury, 
the Financial Crimes Enforcement Net-
work, the United States Attorney General, 
the State Attorneys General, and State, 
Tribal, and local law enforcement) of the 
effectiveness of the current currency trans-
action reporting regime; 
(ii) an analysis of the importance of 
currency transaction reports to law en-
forcement; and 
(iii) an analysis of the effects of rais-
ing the currency transaction report thresh-
old. 
(B) REPORT.—Not later than the end of 
the 1-year period beginning on the date of en-
actment of this Act, the Comptroller General 
shall issue a report to the Secretary of the 
Treasury and the Congress containing— 
(i) all findings and determinations 
made in carrying out the study required 
under subparagraph (A); and 
(ii) recommendations for improving 
the current currency transaction reporting 
regime. 
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(b) MODIFIED SARS STUDY AND DESIGN.— 
(1) STUDY.—The Director of the Financial 
Crimes Enforcement Network shall carry out a 
study, in consultation with industry stakeholders (in-
cluding 
money 
services 
businesses, 
community 
banks, and credit unions), regulators, and law en-
forcement, of the design of a modified suspicious ac-
tivity report form for certain customers and activi-
ties. Such study shall include— 
(A) an examination of appropriate optimal 
SARs thresholds to determine the level at which 
a modified SARs form could be employed; 
(B) an evaluation of which customers or 
transactions would be appropriate for a modi-
fied SAR, including— 
(i) seasoned business customers; 
(ii) financial technology (Fintech) 
firms; 
(iii) structuring transactions; and 
(iv) any other customer or transaction 
that may be appropriate for a modified 
SAR; and 
(C) an analysis of the most effective meth-
ods to reduce the regulatory burden imposed on 
financial institutions in complying with the 
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Bank Secrecy Act, including an analysis of the 
effect of— 
(i) modifying thresholds; 
(ii) shortening forms; 
(iii) combining Bank Secrecy Act 
forms; 
(iv) filing reports in periodic batches; 
and 
(v) any other method that may reduce 
the regulatory burden. 
(2) STUDY CONSIDERATIONS.—In carrying out 
the study required under paragraph (1), the Direc-
tor shall seek to balance law enforcement priorities, 
regulatory burdens experienced by financial institu-
tions, and the requirement for reports to have a 
‘‘high degree of usefulness to law enforcement’’ 
under the Bank Secrecy Act. 
(3) REPORT.—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 Con-
gress containing— 
(A) all findings and determinations made 
in carrying out the study required under sub-
section (a); and 
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(B) sample designs of modified SARs 
forms based on the study results. 
(4) CONTRACTING AUTHORITY.—The Director 
may contract with a private third-party to carry out 
the study required under this subsection. The au-
thority 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 pro-
vided in advance in appropriations Acts. 
(c) DEFINITIONS.—For purposes of this section: 
(1) BANK SECRECY ACT.—The term ‘‘Bank Se-
crecy Act’’ has the meaning given that term under 
section 5312 of title 31, United States Code. 
(2) REGULATORY BURDEN.—The term ‘‘regu-
latory burden’’ means the man-hours to complete fil-
ings, cost of data collection and analysis, and other 
considerations of chapter 35 of title 44, United 
States Code (commonly referred to as the Paper-
work Reduction Act). 
(3) SAR; SUSPICIOUS ACTIVITY REPORT.—The 
term ‘‘SAR’’ and ‘‘suspicious activity report’’ mean 
a report of a suspicious transaction under section 
5318(g) of title 31, United States Code. 
(4) SEASONED
BUSINESS
CUSTOMER.—The 
term ‘‘seasoned business customer’’, shall have such 
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meaning as the Secretary of the Treasury shall pre-
scribe, which shall include any person that— 
(A) 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; 
(B) has maintained an account with a fi-
nancial institution for a length of time as deter-
mined by the Secretary; and 
(C) meet such other requirements as the 
Secretary may determine necessary or appro-
priate. 
SEC. 214. STREAMLINING REQUIREMENTS FOR CURRENCY 
TRANSACTION REPORTS AND SUSPICIOUS 
ACTIVITY REPORTS. 
(a) REVIEW.—The Secretary of the Treasury (in con-
sultation with Federal law enforcement agencies, the Di-
rector of National Intelligence, and the Federal functional 
regulators and in consultation with other relevant stake-
holders) shall undertake a formal review of the current 
financial institution reporting requirements under the 
Bank Secrecy Act and its implementing regulations and 
propose changes to further reduce regulatory burdens, and 
ensure that the information provided is of a ‘‘high degree 
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of usefulness’’ to law enforcement, as set forth under sec-
tion 5311 of title 31, United States Code. 
(b) CONTENTS.—The review required under sub-
section (a) shall include a study of— 
(1) whether the timeframe for filing a sus-
picious activity report should be increased from 30 
days; 
(2) whether or not currency transaction report 
and suspicious activity report thresholds should be 
tied to inflation or otherwise periodically be ad-
justed; 
(3) whether the circumstances under which a fi-
nancial institution determines whether to file a ‘‘con-
tinuing suspicious activity report’’, or the processes 
followed by a financial institution in determining 
whether to file a ‘‘continuing suspicious activity re-
port’’ (or both) can be narrowed; 
(4) analyzing the fields designated as ‘‘critical’’ 
on the suspicious activity report form and whether 
the number of fields should be reduced; 
(5) the increased use of exemption provisions to 
reduce currency transaction reports that are of little 
or no value to law enforcement efforts; 
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(6) the current financial institution reporting 
requirements under the Bank Secrecy Act and its 
implementing regulations and guidance; and 
(7) such other items as the Secretary deter-
mines appropriate. 
(c) REPORT.—Not later than the end of the one year 
period beginning on the date of the enactment of this Act, 
the Secretary of the Treasury, in consultation with law 
enforcement and persons subject to Bank Secrecy Act re-
quirements, shall issue a report to the Congress containing 
all findings and determinations made in carrying out the 
review required under subsection (a). 
(d) DEFINITIONS.—For purposes of this section: 
(1) FEDERAL FUNCTIONAL REGULATOR.—The 
term ‘‘Federal functional regulator’’ has the mean-
ing given that term under section 103. 
(2) OTHER TERMS.—The terms ‘‘Bank Secrecy 
Act’’ and ‘‘financial institution’’ have the meaning 
given those terms, respectively, under section 5312 
of title 31, United States Code. 
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TITLE III—MODERNIZING THE 
AML SYSTEM 
SEC. 301. ENCOURAGING INNOVATION IN BSA COMPLI-
ANCE. 
Section 5318 of title 31, United States Code, as 
amended by section 202, is further amended by adding 
at the end the following: 
‘‘(p) ENCOURAGING INNOVATION IN COMPLIANCE.— 
‘‘(1) IN GENERAL.—The Federal functional reg-
ulators shall encourage financial institutions to con-
sider, evaluate, and, where appropriate, responsibly 
implement innovative approaches to meet the re-
quirements of this subchapter, including through the 
use of innovation pilot programs. 
‘‘(2) EXEMPTIVE RELIEF.—The Secretary, pur-
suant to subsection (a), may provide exemptions 
from the requirements of this subchapter if the Sec-
retary determines such exemptions are necessary to 
facilitate the testing and potential use of new tech-
nologies and other innovations. 
‘‘(3) RULE
OF
CONSTRUCTION.—This sub-
section may not be construed to require financial in-
stitutions to consider, evaluate, or implement innova-
tive approaches to meet the requirements of the 
Bank Secrecy Act. 
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‘‘(4) FEDERAL
FUNCTIONAL
REGULATOR
DE-
FINED.—In this subsection, the term ‘Federal func-
tional regulator’ means the Board of Governors of 
the Federal Reserve System, the Comptroller of the 
Currency, the Federal Deposit Insurance Corpora-
tion, the National Credit Union Administration, the 
Securities and Exchange Commission, and the Com-
modity Futures Trading Commission.’’. 
SEC. 302. INNOVATION LABS. 
(a) IN GENERAL.—Subchapter II of chapter 53 of 
title 31, United States Code, is amended by adding at the 
end the following: 
‘‘§ 5333. Innovation Labs 
‘‘(a) ESTABLISHMENT.—There is established within 
the Department of the Treasury and each Federal func-
tional regulator an Innovation Lab. 
‘‘(b) DIRECTOR.—The head of each Innovation Lab 
shall be a Director, to be appointed by the Secretary of 
the Treasury or the head of the Federal functional regu-
lator, as applicable. 
‘‘(c) DUTIES.—The duties of the Innovation Lab 
shall be— 
‘‘(1) to provide outreach to law enforcement 
agencies, financial institutions, and other persons 
(including vendors and technology companies) with 
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