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vides meaningful information to law enforcement of-
ficials on exempt customers and enables law enforce-
ment to obtain account information through appro-
priate legal process; the act of providing notice of 
designations of exemption complements other sec-
tions of title 31, United States Code, whereby law 
enforcement can locate financial institutions with 
relevant records relating to a person of investigative 
interest, such as information requests made pursu-
ant to regulations implementing section 314(a) of 
the USA PATRIOT Act of 2001. 
(7) A designation of exemption has no effect on 
requirements for depository institutions to apply the 
full range of anti-money laundering controls as set 
forth in subchapter II of chapter 53 of title 31, 
United States Code, including the requirement to 
apply the customer identification program pursuant 
to Section 5326 of subchapter II of chapter 53 of 
title 31, United States Code, and the requirement to 
identify, monitor, and, if appropriate, report sus-
picious activity in accordance with section 5318(g) 
of title 31, United States Code. 
(8) The Federal banking agencies and the Fi-
nancial Crimes Enforcement Network have recently 
provided guidance through the Federal Financial In-
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HR 3505 RFS 
stitutions Examination Council Bank Secrecy Act/ 
Anti-Money Laundering Examination Manual on ap-
plying appropriate levels of due diligence and identi-
fying suspicious activity by the types of cash-inten-
sive businesses that generally will be subject to ex-
emption. 
(b) SEASONED CUSTOMER EXEMPTION.— 
(1) IN GENERAL.—Section 5313(e) of title 31, 
United States Code, is amended to read as follows: 
‘‘(e) QUALIFIED CUSTOMER EXEMPTION.— 
‘‘(1) IN
GENERAL.—The Secretary of the 
Treasury shall prescribe regulations within 270 days 
of the enactment of the Financial Services Regu-
latory Relief Act of 2005 that exempt any depository 
institution from filing a report pursuant to this sec-
tion in a transaction for the payment, receipt, or 
transfer of United States coins or currency (or other 
monetary instruments the Secretary of the Treasury 
prescribes) with a qualified customer of the deposi-
tory institution. 
‘‘(2) QUALIFIED
CUSTOMER
DEFINED.—For 
purposes of this section, the term ‘qualified cus-
tomer’, with respect to a depository institution, has 
such meaning as the Secretary of the Treasury shall 
prescribe, which shall include any person that— 
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HR 3505 RFS 
‘‘(A) is incorporated or organized under 
the laws of the United States or any State, in-
cluding a sole proprietorship, or is registered as 
and eligible to do business within the United 
States or a State; 
‘‘(B) has maintained a deposit account 
with the depository institution for at least 12 
months; and 
‘‘(C) has engaged, using such account, in 
multiple currency transactions that are subject 
to the reporting requirements of subsection (a). 
‘‘(3) REGULATIONS.— 
‘‘(A) IN GENERAL.—The Secretary of the 
Treasury shall prescribe regulations requiring a 
depository institution to file a 1-time notice of 
designation of exemption for each qualified cus-
tomer of the depository institution. 
‘‘(B) FORM AND CONTENT OF EXEMPTION 
NOTICE.—The Secretary shall by regulation 
prescribe the form, manner, content, and timing 
of the qualified customer exemption notice; such 
notice shall include information sufficient to 
identify the qualified customer and its accounts. 
‘‘(C) AUTHORITY OF SECRETARY.— 
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‘‘(i) IN
GENERAL.—The Secretary 
may suspend, reject or revoke any qualified 
customer exemption notice, in accordance 
with criteria prescribed by the Secretary by 
regulation. 
‘‘(ii) 
CONDITIONS.—The 
Secretary 
may establish conditions, in accordance 
with criteria prescribed by regulation, 
under which exempt qualified customers of 
an insured depository institution that is 
merged with or acquired by another in-
sured depository institution will continue 
to be treated as designated exempt quali-
fied customers of the surviving or acquir-
ing institution.’’. 
(c) 3-YEAR REVIEW AND REPORT.—Before the end 
of the 3-year period beginning on the date of the enact-
ment of this Act, the Secretary of the Treasury, in con-
sultation with the Attorney General, the Secretary of the 
Department of Homeland Security, the Federal banking 
agencies, the banking industry, and such other persons as 
the Secretary deems appropriate, shall evaluate the oper-
ations and effect of this provision and make recommenda-
tions to Congress as to any legislative action with respect 
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HR 3505 RFS 
to this provision as the Secretary may determine to be ap-
propriate. 
SEC. 702. REDUCTION IN INCONSISTENCIES IN MONETARY 
TRANSACTION 
RECORDKEEPING 
AND 
RE-
PORTING ENFORCEMENT AND EXAMINATION 
REQUIREMENTS. 
(a) SENSE OF THE CONGRESS.—It is the sense of the 
Congress that inconsistencies and redundancies among 
regulations implementing monetary transaction record-
keeping and reporting enforcement programs under sec-
tion 8 of the Federal Deposit Insurance Act, section 
206(q) of the Federal Credit Union Act, and chapter II 
of chapter 53 of title 31, United States Code by the Sec-
retary of the Treasury and the Federal banking agen-
cies— 
(1) increase the difficulty depository institutions 
have in complying with congressional intent in cre-
ating such enforcement programs, 
(2) reduce the transparency and clarity of the 
regulatory regime; 
(3) increase the potential for conflict among the 
various regulations in the future; and 
(4) contribute to the perception that various 
agencies involved in the enforcement of the monetary 
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