Saving Privacy Act
Saving Privacy Act
Plain Language Summary
# Saving Privacy Act (S. 809) Summary **What the Bill Would Do** The Saving Privacy Act would significantly restrict how federal government agencies can access and collect financial information. Currently, banks and financial institutions must report certain transactions—like transfers over $10,000—to federal agencies to help detect money laundering and terrorism financing. This bill would eliminate most of these automatic reporting requirements and instead require law enforcement to obtain a search warrant based on probable cause before accessing anyone's financial records.
The bill would also make it illegal for the government to access financial information without a warrant and establish criminal penalties for violations. **Who It Affects and Key Provisions** This legislation would impact financial institutions (banks, credit unions), federal law enforcement agencies, and everyday Americans' financial privacy. In addition to the warrant requirement, the bill requires Congress to approve major new regulations from financial regulatory agencies before they take effect, giving lawmakers more direct control over financial rules. The bill essentially shifts the balance toward individual privacy by making it harder for the government to monitor financial activity without specific legal authorization. **Current Status** The bill is currently in committee and has not yet been voted on by the full Senate. It was introduced by Senator Mike Lee (R-UT) in the 119th Congress.
CRS Official Summary
Saving Privacy ActThis bill eliminates or restricts various financial reporting requirements and requires congressional approval for new and existing regulations issued by specified financial regulatory agencies.Specifically, the bill eliminates provisions that require financial institutions to report certain financial information to federal agencies. Currently, financial institutions are required to report certain financial transactions (e.g., transfers of over $10,000) for the purpose of detecting illicit activity, such as money laundering or the financing of terrorism. Under the bill, such records are only obtainable through a search warrant. Further, the bill generally prohibits the federal government from accessing an individual’s financial records without a warrant based on probable cause and establishes criminal penalties for violations.Additionally, the bill requires congressional approval for major rules issued by specified financial regulatory agencies, including rules currently in effect. The bill also eliminates or reduces reporting requirements applicable to (1) the beneficial ownership of certain corporate entities; (2) third-party settlement organizations (e.g., certain online platforms, apps, and card payment processors); and (3) the Consolidated Audit Trail (i.e., data collected by national securities exchanges to track securities market activity).The bill generally prohibits federal agencies from issuing or using a central bank digital currency.The bill prohibits federal agencies from restricting a person's use of convertible virtual currency for their own purposes or to conduct transactions through a self-hosted wallet.
Latest Action
Read twice and referred to the Committee on Finance.