IIB 
110TH CONGRESS 
1ST SESSION 
H. R. 323 
IN THE SENATE OF THE UNITED STATES 
JANUARY 24, 2007 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
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, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Seasoned Customer 
CTR Exemption Act of 2007’’. 
SEC. 2. EXCEPTION FROM CURRENCY TRANSACTION RE-
PORTS FOR SEASONED CUSTOMERS. 
(a) FINDINGS.—The Congress finds as follows: 
(1) The completion of and filing of currency 
transaction reports under section 5313 of title 31, 
United States Code, poses a compliance burden on 
the financial industry. 
(2) Due to the nature of the transactions or the 
persons and entities conducting such transactions, 
some reports as currently filed may not be relevant 
to the detection, deterrence, or investigation of fi-
nancial crimes, including money laundering and the 
financing of terrorism. 
(3) However, the data contained in such reports 
can provide valuable context for the analysis of other 
data derived pursuant to subchapter II of chapter 
53 of title 31, United States Code, as well as inves-
tigative data, which provide invaluable and indispen-
sable information supporting efforts to combat 
money laundering and other financial crimes. 
(4) An appropriate exemption process from the 
reporting requirements for certain currency trans-
actions that are of little or no value to ongoing ef-
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forts of law enforcement agencies, financial regu-
latory agencies, and the financial services industry 
to investigate, detect, or deter financial crimes would 
continue to fulfill the compelling need to produce 
and provide meaningful information to policy-mak-
ers, financial regulators, law enforcement, and intel-
ligence agencies, while potentially lowering the com-
pliance burden placed on financial institutions by the 
need to file such reports. 
(5) The Secretary of the Treasury has by regu-
lation, and in accordance with section 5313 of title 
31, United States Code, implemented a process by 
which institutions may seek exemptions from filing 
certain currency transaction reports based on appro-
priate circumstances; however, the financial industry 
has not taken full advantage of these provisions and 
has contended that they are unduly burdensome. 
(6) The act of providing notice to the Secretary 
of the Treasury of designations of exemption— 
(A) provides meaningful information to law 
enforcement officials on exempt customers and 
enables law enforcement to obtain account in-
formation through appropriate legal process; 
and 
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(B) complements other sections of title 31, 
United States Code, whereby law enforcement 
can locate financial institutions with relevant 
records relating to a person of investigative in-
terest, such as information requests made pur-
suant 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 required 
under subchapter II of chapter 53 of title 31, United 
States Code, and related provisions of law, including 
the requirement to apply the customer identification 
program pursuant to section 5326 of such title, and 
the requirement to identify, monitor, and, if appro-
priate, report suspicious activity in accordance with 
section 5318(g) of such title. 
(8) The Federal banking agencies and the Fi-
nancial Crimes Enforcement Network have recently 
provided guidance through the Federal Financial In-
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-
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sive businesses that generally will be subject to ex-
emption. 
(b) SEASONED
CUSTOMER
EXEMPTION.—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 
2007, the Secretary of the Treasury shall prescribe 
regulations that exempt any depository institution 
from filing a report pursuant to this section in a 
transaction for the payment, receipt, or transfer of 
United States coins or currency (or other monetary 
instruments the Secretary of the Treasury pre-
scribes) with a qualified customer of the depository 
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— 
‘‘(A) is incorporated or organized under 
the laws of the United States or any State, in-
cluding a sole proprietorship (as defined in 31 
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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; 
‘‘(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 one-time notice 
of designation of exemption for each qualified 
customer 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 
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-
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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.’’. 
(c) THREE-YEAR REVIEW AND REPORT.—Before the 
end of the 3-year period beginning on the date of the en-
actment of this Act, the Secretary of the Treasury, in con-
sultation with the Attorney General, the Secretary of 
Homeland Security, the Federal banking agencies, the 
banking industry, and such other persons as the Secretary 
deems appropriate, shall evaluate the operations and effect 
of the provisions of the amendment made by subsection 
(a) and make recommendations to Congress as to any leg-
islative action with respect to such provision as the Sec-
retary may determine to be appropriate. 
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SEC. 3. PERIODIC REVIEW OF REPORTING THRESHOLD 
AND ADJUSTMENT FOR INFLATION. 
Section 5318 of title 31, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(o) PERIODIC REVIEW OF REPORTING THRESHOLD 
AND ADJUSTMENT FOR INFLATION.— 
‘‘(1) IN GENERAL.—Before the end of the 90- 
day period beginning on the date of the enactment 
of the Seasoned Customer CTR Exemption Act of 
2007 and at least every 5 years after the end of 
such period, the Secretary of the Treasury shall— 
‘‘(A) review the continuing appropriate-
ness, relevance, and utility of each threshold 
amount or denomination established by the Sec-
retary, in the Secretary’s discretion, for any re-
port required by the Secretary under this sub-
chapter; and 
‘‘(B) adjust each such amount, at such 
time and in such manner as the Secretary con-
siders appropriate, for any inflation that the 
Secretary determines has occurred since the 
date any such amount was established or last 
adjusted, as the case may be. 
‘‘(2) REPORT.—Before the end of the 60-day 
period beginning upon the completion of any review 
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