H.R. 1602 — Financial Privacy Act of 2025

This section states congressional findings on the volume of data collected by the Financial Crimes Enforcement Network (FinCEN) under the Bank Secrecy Act (BSA), including over 322 million Currency Transaction Reports, more than 36 million Suspicious Activity Reports, and nearly 5 million Form 8300 Reports since 2001, as well as anticipated beneficial ownership information from 32 million companies initially and 5 million additional companies annually thereafter. It further finds that much of this data may lack a nexus to law enforcement or intelligence purposes despite containing sensitive details on Americans' lives, and that the Secretary of the Treasury must ensure its security and confidentiality.

This section establishes a new section 5327 of title 31, United States Code, in subchapter II of chapter 53 (i.e., Bank Secrecy Act requirements for financial institutions to file reports with the Financial Crimes Enforcement Network (FinCEN) on suspicious activities and currency transactions to combat money laundering and illicit finance). Section 5327(a) requires the Secretary of the Treasury to submit to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs, within 180 days of enactment and annually thereafter, a report on (1) the number of reports by type filed with FinCEN under subchapter II since January 1, 2022; (2) the total number of such reports retained by FinCEN; and (3) protocols or guidance governing national security, law enforcement, or intelligence agency access to, retention, or dissemination of that information—including updates, query numbers, and denials or revocations of access. Section 5327(b) requires the Secretary, in consultation with the Director of National Intelligence and the Attorney General, to annually review and revise those protocols as needed to tailor information handling to authorized objectives, enforce disclosure prohibitions, and protect U.S. persons' rights. Section 5327(c) requires the Secretary to provide protocols to specified committee leaders upon request and revised protocols to the committees within 30 days. The section sunsets (i.e., is repealed), along with its table of contents entry, at the end of the 7-year period beginning on the date of enactment.