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Washington, DC - Today, the U.S. House of Representatives overwhelming passed H.R.323, the "Seasoned Customer CTR Exemption Act." Led by House Financial Services Committee Ranking Member Rep. Spencer Bachus (R-6th, AL) and House Financial Services Committee Chairman Rep. Barney Frank, (D-4th, MA), the bill will help to relieve financial institutions from having to file Currency Transaction Reports (CTRs) for so-called "seasoned customers."
"I'm grateful to Chairman Frank for prioritizing this issue, and for getting it done early in the 110th Congress," stated Ranking Member Rep. Spencer Bachus (R-AL). "By eliminating superfluous reports, CTR reform will reduce unnecessary costs borne by financial institutions, while making it easier for law enforcement professionals to pinpoint suspicious activity."
"Over regulation and under regulation are both unwise, and excessive regulations can hinder the ability of law enforcement to do its job by hampering resources and overburdening personnel," said Chairman Rep. Barney Frank (D-MA).
Under current federal law, financial institutions are required to file CTRs for currency transactions in excess of $10,000 as a means of identifying activity indicative of money laundering. While Suspicious Activity Reports (SARs) have largely replaced CTRs as a law enforcement tool, the filing of CTRs is still required. This bill creates a mechanism by which financial institutions may be exempted from filing CTRs for its "seasoned customers" - those that routinely deal with large volumes of cash, but whose business dealings are well-enough understood to rule out the possibility of money laundering or the financing of terror.
According to a survey conducted by the Treasury Department, in 2005 over 30 percent of CTRs filed were to report the transactions of recurring customers eligible for exemption under current reporting requirements. Congressman Bachus first introduced this legislation during the 109th Congress. A similar provision was included in the regulatory relief bill passed by the House by a margin of 415-2, yet was not included in the Senate's version of the bill. A bill identical to H.R. 323 also passed the House last June but was not acted on by the Senate.
H.R. 323 is co-sponsored by Reps. Judy Biggert, Judy (R- IL), John Campbell, John (R-CA), Michael Castle, Michael (R-DE), Willam Lacy Clay (D-MO), Artur Davis (D-AL), Geoff Davis (R-FL), Tom Feeney (R-FL), Scott Garrett (R-NJ), Paul E. Gillmor (R-OH), Jeb Hensarling (R-TX), Ruben Hinojosa (D-TX), Darlene Hooley (D-OR), Walter B. Jones, Jr. (R-NC), Carolyn Maloney (D-NY), Jim Matheson (D-UT), Carolyn McCarthy (D-NY), Patrick T. McHenry (R-NC), Gary Miller (R-CA), Dennis Moore (D-KS), Randy Neugebauer (R-TX), Paul Ron (R-TX), Rick Renzi (R-AZ), Christopher Shays (R-CT) and Debbie Wasserman Schultz (D-FL). |
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