Published on
June 15, 2026
House subcommittee examines modernization of BSA/AML framework
House subcommittee hearing on modernizing BSA/AML, covering SAR/CTR thresholds, AI, digital identity, and beneficial ownership reporting.
Lawmakers on the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions used a May 21 hearing to examine whether the current BSA/AML framework is equipped for modern financial-crime risks, with discussion ranging from reporting requirements to the role of artificial intelligence and digital identity tools.
The hearing, titled "Modernizing the BSA for Financial Crime in the 21st Century", focused on how Congress could update the Bank Secrecy Act and anti-money laundering regime in light of emerging technologies, a changing illicit-finance landscape, and April proposals from FinCEN and banking regulators to overhaul the framework.
According to materials framing the hearing, the subcommittee reviewed the efficacy, challenges, and costs tied to BSA/AML reporting, regulations, and requirements. A central question was whether existing suspicious activity report and currency transaction report requirements generate more volume than value. Members also examined whether reporting thresholds should be modernized and whether FinCEN and law enforcement should give financial institutions more feedback about how reported information is used.
Technology was another major focus. The subcommittee looked at how AI, digital identity tools, and other technology could help financial institutions detect suspicious activity and assist law enforcement. At the same time, the discussion raised concerns about privacy, oversight, and data use.
Lawmakers also discussed the Small Business Relief Act of 2026, which would require Treasury to establish procedures allowing reporting companies to submit beneficial ownership information to FinCEN in connection with tax filings.
Broader illicit-finance issues also surfaced during the hearing, including digital-asset-related crime, fraud, and transnational repression concerns. Members additionally examined whether beneficial ownership reporting can reduce compliance burdens while preserving information that is useful to law enforcement.
The hearing’s title was "Modernizing the BSA for Financial Crime in the 21st Century."
