Monthly Bank Statements for Commercial Customers

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Question:

What is the requirement on sending monthly bank statements to commercial customers? Isn't there something in Reg E that requires customers to receive statements monthly because if there are electronic transactions that are fraudulent, they only have so much time to dispute them? So many of our transactions are electronic these days but we have a customer who wants to see their activity only quarterly. I feel that is too long to wait. I'm looking for proof that this is a banking requirement to send customers statements.

Answer:

You don't have to agree with that customer's request, and nothing -- other that good business sense and practice -- prevents your customer from ignoring bank statements except on a quarterly basis. If you have language in your business deposit agreement that requires business customers to notify you within 30 or 60 days of any unauthorized or altered items in a statement, you should emphasize that fact when you tell the customer you won't stretch the statement period to three months.