U.S. lawmakers try again to reduce bank reporting

WASHINGTON, Jan 9 (Reuters)

Key U.S. lawmakers said on Tuesday they reintroduced legislation aimed at reducing the amount of currency transaction reports (CTR) financial institutions must file with law enforcement authorities.

Banks and credit unions have complained about the cost, work-hours and staff needed to file CTR documents required by an anti-money laundering law for transactions of at least $10,000.

The bill, called the "Seasoned Customer Exemption Act," creates a mechanism that would exempt customers who routinely deal with large volumes of cash and are well-known customers of the financial institutions.

Spencer Bachus, the ranking Republican on the U.S. House Financial Services Committee, said identifying a seasoned customer would help rule out the possibility of money laundering or terror financing.

"CTRs still have a role to play, but the current system lends itself to excessive cost, duplication, and outright waste," Bachus said.

The committee's new chairman, Barney Frank, a Massachusetts Democrat, said he believes the bill would help reduce "unnecessary regulation."

"This bill is a good example of this," Frank said in a joint statement with Bachus.

The move represents another attempt by House lawmakers to reduce CTRs. Last year a similar provision was stripped out of a bank regulatory relief bill that both the Senate and House approved and was later signed into law.

The latest legislation has 21 sponsors, Bachus said.

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