NEW YORK (Dec. 1, 2010) – The following is a statement by AICPA President and CEO Barry Melancon on U.S. Senate passage of a legislative fix to FTC’s Red Flags rule:
On behalf of the U.S. accounting profession, the AICPA is very pleased the Senate last night unanimously passed S. 3987, Red Flag Program Clarification Act of 2010, a bill to amend the Fair Credit Reporting Act. The bill brings common sense to the Federal Trade Commission’s proposed Red Flags rule by clarifying that CPAs and CPA firms are not classified as creditors because they do not offer or maintain accounts that pose a risk of identity theft.
The AICPA and state CPA societies fought tirelessly for this clarification over the past year. This change will relieve CPAs and CPA firms, already subject to confidentiality requirements, of the unwarranted burden of developing and implementing identity theft prevention and detection programs under the FTC rule. We urge the House of Representatives to move quickly to enact this amendment into law before Congress adjourns.