A damning report from the House Judiciary Committee and the Select Subcommittee on the Weaponization of the Federal Government alleges that federal agencies under the Biden-Harris administration are exploiting the Bank Secrecy Act (BSA) to conduct warrantless surveillance of Americans’ financial activities. The investigation reveals that federal law enforcement agencies, particularly the FBI, have used financial institutions to bypass constitutional safeguards and obtain sensitive data.
The report claims federal agencies accessed millions of financial records through Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs). In 2023 alone, nearly 4.6 million SARs were filed, and federal agents conducted over 3.3 million searches in the Financial Crimes Enforcement Network (FinCEN) database — averaging 9,000 warrantless searches daily. Additionally, more than 25,000 government officials have access to this data without needing warrants.
The investigation was triggered by whistleblower testimony exposing Bank of America’s cooperation with the FBI following the January 6, 2021, Capitol protest. Bank of America flagged customers who made purchases in Washington, D.C., during that period, including those who booked hotels or bought firearms. Over 200 individuals were reported to authorities without any probable cause, raising significant Fourth Amendment concerns.
Bank of America justified its actions by citing the U.S. Department of the Treasury, but the report contends the FBI initiated the request. Other financial institutions, fintech companies, and cryptocurrency platforms were similarly coerced into compliance under threat of penalties.
Republicans are urging immediate legislative reforms to curb these surveillance powers. Proposals include Senator Mike Lee’s Saving Privacy Act, which would mandate warrants before accessing financial records and strengthen protections under the Right to Financial Privacy Act of 1978. Additional reforms suggest notifying customers when SARs are filed and allowing them to challenge the allegations.
The report underscores the urgent need to balance security with privacy and ensure Americans’ financial information is protected from government overreach.
