WASHINGTON — House Financial Services Committee Ranking Member Spencer Bachus (R-Ala.) was joined by Chairman Barney Frank (D-Mass.) to reintroduce legislation to help ease financial institutions' reporting requirements.
The legislation, Seasoned Customer Exemption Act of 2007 (HR 323), would permit financial institutions to not file Currency Transaction Reports, required for transactions over $10,000, for so-called seasoned customers who regularly do large-volume cash business with an institution and can be reasonably understood to rule out money laundering or terrorist financing.
CTRs help law enforcement find and track money laundering schemes, though they have been largely replaced by Suspicious Activity Reports. "CTRs still have a role to play, but the current system lends itself to excessive cost, duplication, and outright waste," Bachus stated.
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Frank added, "I believe that cutting back on unnecessary regulation strengthens our ability to achieve our legislative goals."
According to a Treasury Department survey from 2005, over 30% of CTRs filed were to report the transactions of recurring customers eligible for exemption under current reporting requirements. An American Bankers Association study found that of the estimated 583 hours in staff time spent by a typical bank on CTR filings, approximately 438 hours were devoted to reporting on longstanding customers.
Bachus first introduced this legislation during the 109th Congress and a similar provision was included in the regulatory relief bill overwhelmingly passed by the House, yet was not included in the bill signed into law.
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