Jeb Hensarling: “Madam Speaker, current Federal regulations require financial institutions to file a currency transaction report with the…”

“Madam Speaker, current Federal regulations require financial institutions to file a currency transaction report with the IRS for any customer transaction over $10,000 during a business day. We all know that these CTRs, as they are called, are designed to help our Federal law enforcement thwart money laundering and other illegal activities; but the problem is that this $10,000 threshold which was set in 1970 is so low in the existing exemption process, so cumbersome and costly that it is causing banks to repeatedly file CTRs for many of their known and expected regular business transactions for their well-known customers. And it doesn't matter if that business has been a so-called 'seasoned customer' for the financial institution for 5, 10, 15 or even 20 years. Right now it is simply too difficult for our financial institutions to apply for exemptions for our customers that they know are not a risk. So this forces, Madam Speaker, our financial institutions to file CTRs when they know the customer is not a risk just to protect themselves from legal liability or potential large fines.”