S-5242 : Still Just a Bill

The "Saving Privacy Act" (S. 5242) is a bill introduced in the Senate with the primary goal of amending the Right to Financial Privacy Act of 1978 and related laws. The bill contains six titles focusing on different aspects of financial privacy and regulatory oversight.

• Title I: Bank Privacy Reform
  • Amends the Right to Financial Privacy Act to require government authorities to obtain a search warrant to access an individual's financial records.
  • Modifies Title 31 of the U.S. Code to narrow the scope of financial institutions required to retain transaction records.
  • Repeals several sections related to reporting requirements, such as currency transaction reports and international currency transactions.
• Title II: Amendments to the Right to Financial Privacy Act of 1978
  • Eliminates exceptions allowing government access to financial records without a warrant.
  • Adds a provision stating the Federal Government cannot access financial records in a manner violating the Fourth Amendment.
• Title III: Consolidated Audit Trail
  • Requires the Securities and Exchange Commission (SEC) to terminate the Consolidated Audit Trail (CAT).
  • Prohibits federal agencies from establishing centralized databases collecting personally identifiable information without explicit legal authority.
  • Requires reimbursement of fees collected for the Consolidated Audit Trail.
• Title IV: No Central Bank Digital Currency
  • Amends the Federal Reserve Act to prohibit the issuance of a central bank digital currency directly to individuals.
  • Prevents Federal Reserve Banks from holding digital currencies as assets or liabilities.
• Title V: Regulations From The Executive In Need of Scrutiny
  • Amends Chapter 8 of Title 5, United States Code, regarding congressional review of agency rulemaking, and would require congressional approval for major rules.
  • Mandates that any rule subject to the congressional approval procedure affecting budget authority, outlays, or receipts shall be assumed to be effective unless it is not approved.
  • Requires the Comptroller General to conduct a study on the number and cost of rules in effect.
• Title VI: Suspicious Activity
  • Establishes criminal penalties for agencies or financial institutions that knowingly obtain or disclose financial records in violation of the Right to Financial Privacy Act.
  • Increases civil penalties for violations to not less than $1,000 per violation per day, plus attorney's fees, litigation costs, and compensatory damages.
  • Provides for writs of mandamus and other relief to enforce compliance with the Right to Financial Privacy Act.

In summary, the "Saving Privacy Act" aims to strengthen financial privacy protections for individuals, curb regulatory overreach, and prevent the creation of a central bank digital currency.