Saving Privacy Act
Bill: S.4869 | Sponsor: Sen. Lee, Mike (R-UT)
Policy area: Finance and Financial Sector

Summary:
Saving Privacy Act
This bill adjusts certain amounts for inflation, including reporting thresholds applicable to financial transactions, the threshold for the criminal offense of cash smuggling, and tax return thresholds for cash receipts.

To index certain thresholds for inflation.

    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 ``Saving Privacy Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Public Law 91-508 (referred to in this section as the 
        ``Bank Secrecy Act'') authorized the Secretary of the Treasury 
        to establish recording and reporting requirements for financial 
        institutions, including the prescription of thresholds for such 
        requirements.
            (2) In 1972, the Department of the Treasury published the 
        final rule implementing the Bank Secrecy Act, which required 
        filing a report on each ``transaction in currency of more than 
        $10,000''.
            (3) While the Supreme Court of the United States issued a 
        ruling in California Bankers Association v. Shultz, 416 U.S. 21 
        (1974) that the Bank Secrecy Act did not violate the Fourth 
        Amendment to the Constitution of the United States, the 
        controlling opinion cautioned that ``a significant extension of 
        the regulations' reporting requirements . . . would pose 
        substantial and difficult constitutional questions''.
            (4) Inflation has risen to almost 600 percent since the 
        1974 decision described in paragraph (3) and the threshold has 
        not been adjusted accordingly.
            (5) While $10,000 was sufficient to buy a modest multi-
        bedroom home in the 1970s, today that amount cannot even cover 
        the purchase of many lightly used cars.
            (6) This development represents a significant extension of 
        the reporting requirements under the applicable regulations and 
        could render the Bank Secrecy Act reporting requirement 
        unconstitutional unless redressed.

SEC. 3. RECORDS AND REPORTS ON MONETARY INSTRUMENT TRANSACTIONS.

    Title 31, United States Code, is amended--
            (1) in section 5313(a), in the first sentence, by striking 
        ``, or under circumstances the Secretary prescribes by 
        regulation'' and inserting ``not less than $10,000 (as adjusted 
        for each fiscal year beginning after September 30, 2022 to 
        reflect the percentage change in the Consumer Price Index for 
        such fiscal year compared to the Consumer Price Index for the 
        year ending September 30, 1974)'';
            (2) in section 5316(a), by striking ``more than $10,000'' 
        each place the term appears and inserting ``not less than 
        $10,000 (as adjusted for each fiscal year beginning after 
        September 30, 2022 to reflect the percentage change in the 
        Consumer Price Index for such fiscal year compared to the 
        Consumer Price Index for the year ending September 30, 1974)'';
            (3) in section 5318--
                    (A) in subsection (a)(2), by striking ``as the 
                Secretary may prescribe by regulation'' and inserting 
                ``relating to transactions of not less than $10,000 (as 
                adjusted for each fiscal year beginning after September 
                30, 2022 to reflect the percentage change in the 
                Consumer Price Index for such fiscal year compared to 
                the Consumer Price Index for the year ending September 
                30, 1974)''; and
                    (B) in subsection (g)--
                            (i) in paragraph (1), by inserting ``of not 
                        less than $10,000 (as adjusted for each fiscal 
                        year beginning after September 30, 2022 to 
                        reflect the percentage change in the Consumer 
                        Price Index for such fiscal year compared to 
                        the Consumer Price Index for the year ending 
                        September 30, 1974)'' after ``report any 
                        suspicious transaction''; and
                            (ii) in paragraph (5)(D)(ii)(II), by 
                        inserting ``of not less than $10,000 (as 
                        adjusted for each fiscal year beginning after 
                        September 30, 2022 to reflect the percentage 
                        change in the Consumer Price Index for such 
                        fiscal year compared to the Consumer Price 
                        Index for the year ending September 30, 1974)'' 
                        after ``any other transaction'';
            (4) in section 5331, in subsections (a)(1)(B) and 
        (d)(1)(B), by striking ``$10,000'' each place the term appears 
        and inserting ``$10,000 (as adjusted for each fiscal year 
        beginning after September 30, 2022 to reflect the percentage 
        change in the Consumer Price Index for such fiscal year 
        compared to the Consumer Price Index for the year ending 
        September 30, 1974)''; and
            (5) in section 5332(a)(1), by striking ``$10,000'' and 
        inserting ``$10,000 (as adjusted for each fiscal year beginning 
        after September 30, 2022 to reflect the percentage change in 
        the Consumer Price Index for such fiscal year compared to the 
        Consumer Price Index for the year ending September 30, 1974)''.

SEC. 4. RETURNS RELATING TO CASH RECEIVED IN TRADE OR BUSINESS.

    Section 6050I of the Internal Revenue Code of 1986 is amended--
     (a) in subsections (a)(2), (d)(2), and (g)(1), by striking 
``$10,000'' each place the term appears and inserting ``$10,000 (as 
adjusted for each fiscal year beginning after September 30, 2022 to 
reflect the percentage change in the Consumer Price Index for such 
fiscal year compared to the Consumer Price Index for the year ending 
September 30, 1974)''; and
    (b) in subsection (d)(1), by inserting ``of not more than $10,000 
(as adjusted for each fiscal year beginning after September 30, 2022 to 
reflect the percentage change in the Consumer Price Index for such 
fiscal year compared to the Consumer Price Index for the year ending 
September 30, 1974)'' after ``currency''.

SEC. 5. RECORDKEEPING REGULATIONS FOR INSURED DEPOSITORY INSTITUTIONS.

    Section 21(b) of the Federal Deposit Insurance Act (12 U.S.C. 
1829b(b)) is amended by adding at the end the following:
            ``(4) Thresholds.--The regulations prescribed under this 
        subsection shall apply to transactions of not less than $10,000 
        (as adjusted for each fiscal year beginning after September 30, 
        2022 to reflect the percentage change in the Consumer Price 
        Index for such fiscal year compared to the Consumer Price Index 
        for the year ending September 30, 1974).''.
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