Some customers have requested not to receive a statement either electronically or by mail. Is not sending a notification/statement permissable if the statements are available upon request and the customer has signed a contract? From what I have read I don't believe so, does anyone have any input and/or resources? In addition does it make a difference as to whether it is a business or consumer account?

Rather than rehash, I know there have been prior conversations on this. Do a quick search on the phrase "Do Not Mail" or "Hold Mail" to find them.

I thought we were required under either TISA or another Reg. to provide a statement. They don't have to be mailed (they can be emailed, or sent on disk), but I believe we have to provide it.

TISA does not require statements. It requires that any statements that are sent conform to Reg. DD. Reg. E, however, does require that statements be made available. There may be state law requirements, too.

Reg. E requirements for statements kick in whenever a consumer account is accessed (or is enrolled to be accessed) by EFT.

Printed statements can be mailed or held for pickup (see numerous discussions on that topic).

Statements can also be delivered (or held for pickup) electronically, if the bank complies with e-Sign requirements for authorizating e-statements.

But Reg E doesn't allow you not to prepare a statement if one is called for by section 205.9(b).

We do have some customers who we hold statements for. Our internal policy requires that the statements be sent out if the customers do not come in to claim the statement within 3 months.
However, what the operational staff is purposing is that no notification be sent of electronic statement, no statement sent by mail and no statement placed in hold mail. The statement would cycle but not be printed. However, if the customer came to the bank and requested to see the statement then it could be printed and provided.
The customer's that would like to do this are business customers that Reg E, Reg DD and Reg Z do not apply to. Would this be an okay practice? I don't personally like it because I think it opens the bank up for more fraud risk internally and externally.
They are also considering doing this for consumer customers. Reading through the posts on electronic statements, my conclusion is that a notification must be sent that the statement is available. How then based on this logic could the bank say that we don't need to send anything.

I can only repeat what I said with regard to consumer accounts. I will also second your opinion that failure to issue statements on business accounts is an open invitation to fraud, that is mitigated only somewhat by customer access to online banking information.