Under the leadership of Scott Bessent, the US Treasury Department announced plans on September 15 to raise reporting thresholds for banks under anti-money laundering (AML) rules. Bessent noted that the existing thresholds have not been updated for decades, and the report on their update is five years overdue. He stated that the department aims to ensure a more effective approach to reporting, taking into account the time financial institutions know their customers. In response to lawmakers' questions, Bessent confirmed that the department is actively working on raising the thresholds to reduce the burden on local banks. For example, current thresholds for suspicious activity reports (SAR) range from no minimum to $5,000 or $25,000 depending on the type of violation, while the threshold for cash transactions (CTR) is over $10,000. Bessent did not specify new thresholds or provide a timeline for their change – he only stated that the Treasury is "in the middle of it" and is considering "a combination of possibly raising thresholds and giving credit to institutions for the duration of their relationships with clients."
Cybersecurity threats were also discussed: Bessent emphasized the strong resilience of large banks and noted that the department is working to enhance this resilience among smaller banks and financial institutions – "down the capitalization chain from super-regional to regional, to small and local banks, and then among service providers." The department has been coordinating with other government agencies for over six months.
Lawmakers expressed concerns about stablecoins and their impact on bank deposits. Congressman Brad Sherman emphasized that interest in stablecoins could reduce the level of bank deposits, which in turn would affect small business lending capabilities. Bessent responded that dollar-backed stablecoins increase demand for US Treasury bonds and strengthen the dollar. Separately, Congressman Al Green asked whether meme coins are a Ponzi scheme; Bessent replied that, in his opinion, they do not meet the criteria for such a scheme, adding that "every market system relies on increasing value, whether it's selling a house, stocks, or bonds."
Separately, Bessent confirmed support for the repeal of beneficial ownership information (BOI) reporting requirements for 33 million small US businesses: "100%. State-level insurance regulation is robust. Repealing BOI reporting for 33 million small domestic businesses while maintaining it for foreign entities is a great achievement of common sense." During the discussion, the minister emphasized the importance of the right balance: "We believe we have to get this right."
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