“The American Fintech Council (AFC) supports modernizing the Bank Secrecy Act (BSA) to create a more transparent and efficient anti-money laundering (AML) reporting system. The Financial Privacy Act of 2025 introduced by Reps. Warren Davidson and Jim Himes, with Rep. Davidson’s proposed amendment, is an important step toward strengthening the effectiveness of the BSA/AML framework by shifting from a reporting regime based solely on data collection to one that provides actionable insights for regulators and the industry.

“For too long, the BSA/AML reporting model has functioned as a one-way system, placing significant reporting requirements on institutions without providing sufficient feedback or clarity on how these reports contribute to enforcement efforts. A modernized approach—enabling FinCEN to analyze and provide structured feedback on reported data—would allow regulated entities to better understand evolving risks and achieve more effective compliance.

“Furthermore, AFC believes that BSA modernization should be paired with greater adoption of regulatory technology and supervisory technology tools. The integration of advanced analytics and automation in AML compliance would significantly enhance detection capabilities, reduce inefficiency, and ultimately create stronger protections against illicit financial activity.

“AFC appreciates Reps. Davidson and Himes for their leadership on this issue and looks forward to continuing our work with Congress, FinCEN, and other stakeholders to build a smarter and more responsive financial regulatory framework.”

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