Reported by ABA Banking Journal

(Excerpt featured below. To read full report, go to: https://bankingjournal.aba.com/2025/06/treasury-official-outlines-principles-for-bank-secrecy-act-modernization/)

The Treasury Department is exploring ways to streamline the filing process for suspicious activity reports and currency transaction reports as part of a broader effort to modernize Bank Secrecy Act enforcement, Deputy Secretary of the Treasury Michael Faulkender said today.

During a speech at the Financial Crime Enforcement Network’s BSA Advisory Group meeting, Faulkender outlined the Trump administration’s approach to BSA modernization. As part of that effort, Treasury is working to change the anti-money laundering/countering the financing of terrorism framework so it “focuses on our national security priorities and highest risk areas and explicitly permits financial institutions to de-prioritize lower risks.”

“In line with the AML Act’s directive, this includes an acknowledgment that financial institutions must be permitted to direct more attention and resources toward higher-risk customers and activities, consistent with an institution’s risk profile, rather than toward lower-risk customers and activities,” Faulkender said.