America's Credit Unions called on federal regulators to update long-standing transaction reporting thresholds, arguing current requirements create unnecessary burdens for credit unions while providing limited value for law enforcement.
In a letter to the Financial Crimes Enforcement Network, the organization urged regulators to raise both Currency Transaction Report (CTR) and Suspicious Activity Report (SAR) thresholds to better reflect inflation and modern financial activity.
The group noted that the CTR threshold has remained at $10,000 since 1972, despite decades of inflation, resulting in a large volume of routine, low-risk transactions being reported. Similarly, the SAR threshold, set at $5,000 for many transactions, has not kept pace with economic changes, capturing activity that may not warrant federal attention.
America's Credit Unions argued that raising these thresholds would allow institutions to focus more resources on identifying high-risk and suspicious activity, improving the effectiveness of anti-money laundering efforts.
The letter also highlighted the operational strain on smaller credit unions, where staff often spend significant time preparing reports on transactions that provide limited investigative value.
The organization said updating thresholds would align regulatory requirements with their intended purpose while reducing compliance costs and improving efficiency across the financial system.
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