January 10, 2007

ABA APPLAUDS INTRODUCTION OF Seasoned Customer Exemption Act

by Floyd Stoner, executive director of congressional relations

“The American Bankers Association strongly supports legislation introduced by Chairman Barney Frank and Ranking Member Spencer Bachus that would improve the currency transaction report system by eliminating filings for seasoned customers.  The Seasoned Customer Exemption Act will cut most of the more than 13 million CTRs filed annually, enabling banks to redirect resources to fight financial crime more effectively, rather than filling out unnecessary forms."  

“Seasoned customers would remain covered by suspicious activity monitoring and reporting procedures in the event of unusual or inappropriate activity.  Suspicious activity reports provide precise account and related transaction information as well as narrative detail not available in CTRs. 

“Law enforcement will still be able to locate transaction data and other relevant information on a broad range of accounts of suspects though the USA Patriot Act’s 314(a) process.  This targeted approach is working and producing tangible results today.”

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The American Bankers Association, on behalf of the more than two million men and women

who work in the nation's banks, brings together all categories of banking institutions to

best represent the interests of this rapidly changing industry.  Its membership-which i

ncludes community, regional and money center banks and holding companies, as well as

savings associations, trust companies and savings banks-makes ABA the largest banking

trade association in the country.