First, you aren't requiring anything. You are telling them what the regulation requires.
Second, the penalties of Reg. DD are the points of initial compliance risk. Then there is managements willful desire to potentially knowingly violate the regulation. Should your next examiner ask "What else have they done this with?" Perhaps your examiners who see this would be more likely to stay an extra few days or a week to look. "If they'd do this on Reg. DD, what about BSA and flood?"
You are being restrictive. You are trying to keep them within the legal boundaries so that they, the bank, and the board are not cited for violations of law or the need to discuss civil money penalties.
Altogether now, "once we practice to deceive..."
My opinions are not necessarily my employers.
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell