I 
110TH CONGRESS 
2D SESSION 
H. R. 6688 
To amend section 5313 of title 31, United States Code, to reform certain 
requirements for reporting cash transactions, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 31, 2008 
Mr. FOSTER (for himself, Mr. FRANK of Massachusetts, and Mr. MOORE of 
Kansas) introduced the following bill; which was referred to the Com-
mittee on Financial Services 
A BILL 
To amend section 5313 of title 31, United States Code, 
to reform certain requirements for reporting cash trans-
actions, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Seasoned Customer 
CTR Exemption Act of 2008’’. 
SEC. 2. FINDINGS. 
The Congress finds as follows: 
(1) When it is possible to reduce the regulatory 
burden on depository institutions associated with re-
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porting requirements under chapter 53 of title 31, 
United States Code, while at the same time main-
taining the utility of such reports to law enforcement 
efforts, it is appropriate to do so. 
(2) In February 2008, the Comptroller General 
issued a report titled ‘‘Bank Secrecy Act: Increased 
Use of Exemption Provisions Could Reduce Cur-
rency Transaction Reporting While Maintaining 
Usefulness to Law Enforcement Efforts’’ (GAO–08– 
355). 
(3) The Comptroller General finds that since 
transactions of exempt customers are of little or no 
value to law enforcement efforts, efforts made to in-
crease the use of such exemptions by depository in-
stitutions could reduce the regulatory burden associ-
ated with filing unnecessary cash transaction reports 
and the government’s costs to process them, while 
maintaining the utility of such reports to law en-
forcement efforts. 
(4) The Comptroller General finds that the re-
quirement that depository institutions file biennial 
renewals for Phase II customer exemptions dupli-
cates the required annual review of such exemptions 
and discourages the use of some exemptions. 
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(5) The Comptroller General finds that elimi-
nating the requirement that depository institutions 
file biennial renewals for Phase II customer exemp-
tions could increase the use of such exemptions and 
reduce the burden associated with filing unnecessary 
cash transaction reports. 
(6) The Comptroller General recommends elimi-
nating the requirement that depository institutions 
biennially renew Phase II exemptions. 
(7) The Comptroller General finds that the cash 
transactions of government entities and depository 
institutions are likely of little or no use to law en-
forcement efforts and that cash transaction reports 
related to these entities are unnecessary. 
(8) The Comptroller General finds that, al-
though the amendments made to chapter 53 of title 
31, United States Code, by the Money Laundering 
Suppression Act of 1994 required the Secretary of 
the Treasury to exempt depository institutions from 
filing cash transaction reports on the transactions of 
government entities and depository institutions and 
did not explicitly require the filing of exemption 
forms or annual review of such information with re-
spect to the exempt entities to effectuate any such 
exemption, the regulations prescribed by the Sec-
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(13) The Comptroller General recommends con-
sidering a change in requirements to allow deposi-
tory institutions to exempt otherwise-eligible cus-
tomers with frequent large cash transactions within 
a period of time shorter than 12 months. 
SEC. 3. EXCEPTION FROM CURRENCY TRANSACTION RE-
PORTS FOR SEASONED CUSTOMERS. 
Section 5313(e) of title 31, United States Code, is 
amended to read as follows: 
‘‘(e) QUALIFIED CUSTOMER EXEMPTION.— 
‘‘(1) IN GENERAL.—Before the end of the 270- 
day period beginning on the date of the enactment 
of the Seasoned Customer CTR Exemption Act of 
2008, the Secretary of the Treasury shall prescribe 
regulations that exempt any depository institution 
from filing a report pursuant to this section after 
the effective date of such regulations in connection 
with 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 
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such meaning as the Secretary of the Treasury shall 
prescribe, which shall include any person that— 
‘‘(A) is incorporated or organized under 
the laws of the United States or any State, in-
cluding a sole proprietorship (as defined in 31 
CFR 103.22(d)(6)(vii), as in effect on January 
4, 2007), or is registered as and eligible to do 
business within the United States or a State; 
and 
‘‘(B) has maintained a deposit account 
with the depository institution for at least 2 
months, or has engaged, using such an account, 
in multiple currency transactions that are sub-
ject 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 and 
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such notice shall include information sufficient 
to identify the qualified customer and the ac-
counts of the customer. 
‘‘(C) AUTHORITY OF SECRETARY.— 
‘‘(i) IN
GENERAL.—The Secretary 
may suspend, reject, or revoke any quali-
fied customer exemption notice, in accord-
ance with criteria prescribed by the Sec-
retary 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.’’. 
SEC. 4. EXCEPTION FROM CURRENCY TRANSACTION RE-
PORTS FOR GOVERNMENT ENTITIES, DEPOSI-
TORY INSTITUTIONS, AND CERTAIN OTHER 
FINANCIAL INSTITUTIONS. 
(a) IN GENERAL.—Section 5313(d) of title 31, 
United States Code, is amended to read as follows: 
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‘‘(d) MANDATORY EXEMPTIONS FROM REPORTING 
REQUIREMENTS.— 
‘‘(1) IN
GENERAL.—Upon enactment of the 
Seasoned Customer CTR Exemption Act of 2008, 
the Secretary of the Treasury shall exempt, pursu-
ant to section 5318(a)(6), a depository institution 
from the reporting requirements of subsection (a), 
without requiring the depository institution to file a 
notice of designation of exemption or to annually re-
view the information supporting the exemption, with 
respect to transactions between the depository insti-
tution and the following categories of entities: 
‘‘(A) Another depository institution. 
‘‘(B) A department or agency of the 
United States, any State, or any political sub-
division of any State. 
‘‘(C) Any entity established under the laws 
of the United States, any State, or any political 
subdivision of any State, or under an interstate 
compact between 2 or more States, which exer-
cises governmental authority on behalf of the 
United States, the State, or the political sub-
division. 
‘‘(D) Any entity, other than a bank, whose 
common stock or analogous equity interests are 
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listed on the New York Stock Exchange or the 
American Stock Exchange or whose common 
stock or analogous equity interests have been 
designated as a Nasdaq National Market Secu-
rity listed on the Nasdaq Stock Market (except 
stocks or interests listed under the separate 
‘Nasdaq Small-Cap Issues’ heading), except 
that, for purposes of this subparagraph, a per-
son that is a financial institution, other than a 
bank, is an exempt person only to the extent of 
such institution’s domestic operations. 
‘‘(E) Any subsidiary, other than a bank, of 
any entity described in subparagraph (D) that 
is organized under the laws of the United 
States or of any State and at least 51 percent 
of whose common stock or analogous equity in-
terest is owned by the listed entity, except that, 
for purposes of this subparagraph, a person 
that is a financial institution, other than a 
bank, is an exempt person only to the extent of 
such institution’s domestic operations. 
‘‘(F) Any business or category of business 
the reports on which have little or no value for 
law enforcement purposes. 
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‘‘(2) NOTICE OF EXEMPTION.—The Secretary 
of the Treasury shall publish in the Federal Register 
at such times as the Secretary determines to be ap-
propriate (but not less frequently than once each 
year) a list of all the entities whose transactions 
with a depository institution are exempt under this 
subsection from the reporting requirements of sub-
section (a).’’. 
(b) ELECTION TO REPORT NOTWITHSTANDING EX-
EMPTION.—Section 5313(f) of title 31, United States 
Code, is amended by adding at the end the following new 
paragraph: 
‘‘(3) DEPOSITORY INSTITUTION ELECTIONS.—A 
depository institution may elect to report a trans-
action that would otherwise qualify for an exemption 
under subsection (d) or (e), and a depository institu-
tion that makes such an election shall not be subject 
to any penalty, liability, enforcement remedy, or su-
pervisory criticism for such reporting.’’. 
(c) TECHNICAL AND CONFORMING AMENDMENT.— 
The heading for subsection (f) of section 5313 of title, 
United States Code, is amended by striking ‘‘MANDATORY 
AND DISCRETIONARY’’. 
Æ 
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