HOUSE REPORT | FBI pressures banks, files 4.6M suspicious activity reports, demands personal details.
The FBI has leveraged the Bank Secrecy Act (BSA) to turn banks into information sources by flagging millions of legal transactions as “suspicious.” The BSA mandates that financial institutions keep detailed records of significant cash transactions and report any activities that could hint at illegal activities like money laundering or tax evasion.
In 2023, banks filed 4.6 million Suspicious Activity Reports (SARs), a notable rise from previous years. These SARs are used by the FBI for monitoring and investigating potentially suspicious activities.
The FBI takes these reports further by “data mining” them and demanding additional personal details from banks, such as emails, phone numbers, and app data. This deep dive into personal data can track everyday activities like grocery purchases and Uber receipts.
Following the events of January 6, 2021, the FBI requested banks to flag individuals who traveled to Washington, D.C., bought firearms, or booked hotels. Bank of America handed over information on 211 customers, and other banks flagged transactions at airports, Bass Pro Shops, and Starbucks. Even purchasing a coffee near D.C. could get someone flagged.
Looking forward, the government is urging banks to use artificial intelligence (AI) to track spending habits. This AI could potentially flag political donations, religious book purchases, and other personal transactions. Currently, about 27,000 government agents access this financial data daily without needing a warrant, raising significant privacy concerns.
https://www.fincen.gov/resources/statutes-and-regulations/bank-secrecy-act
https://www.fincen.gov/answers-frequently-asked-bank-secrecy-act-bsa-questions
https://www.occ.treas.gov/topics/supervision-and-examination/bsa/index-bsa.html
