Comment on FR Doc # E8-08955

This comment letter is submitted on behalf of Capitol Bancorp Limited, a $5.1 billion national community bank development company, with a network of sixty-two separately chartered banks and bank operations in seventeen states. The proposal of removing the regulatory requirement that depository institutions file exemption forms, and annually review the supporting information for banks, federal, state, and local government agencies, and entities exercising federal, state or local governmental authority will encourage our banks to avail themselves of Phase I exemptions. The proposal of removing the regulatory requirement that depository institutions biennially renew Phase II exemptions will encourage our banks to exempt customers that meet the criteria for exemption. However, we believe that a revocation of exemption should be completed if the bank no longer chooses to exempt an otherwise eligible customer. In addition, we believe that modified and updated change of control information should be filed within 30 days of the depository institution becoming aware of the change. The proposal of permitting depository institutions to exempt otherwise eligible Phase II customers who frequently engage in large cash transactions within a period of time shorter than 12 months will encourage our banks to avail themselves of Phase II exemptions. We believe that it is preferable to adopt a regulatory requirement that depository institutions only conduct a risk-based analysis of an otherwise eligible Phase II customer with no prescribed amount of time before a depository institution would be permitted to file an initial designation of exemption. In addition, we believe eight is still an appropriate number of reportable transactions to deem a customer eligible for exemption. Therefore, our organization fully appreciates and supports the proposed amendments to the Currency Transaction Report exemption process. Furthermore, we commend the agencies’ efforts at reducing the regulatory burden on financial institutions. I may be contacted at 586-412-6592 or at debbie.moser@capitolbancorp.com. Thank you for the opportunity to comment.