Frequently engages in transactions in currency with the bank in excess of $10,000 6 FinCEN has noted that, for purposes of.If prior to the passing of two months’ time, the bank conducts and documents a risk-based assessment of the customer and forms a reasonable belief that the customer has a legitimate business purpose for conducting frequent transactions in currency 5.Has maintained a transaction account at the exempting bank for at least two months, or To the extent of their domestic operations and only with respect to transactions conducted through their exemptible accounts, any other commercial enterprise (referred to as “non-listed businesses”) that:.Under Phase II exemptions, there are two other categories of customers (certain non-listed businesses and payroll customers) whose currency transactions that meet specific criteria may be exempted from reporting requirements. law and at least 51 percent of whose common stock or analogous equity interest is owned by the listed entity. The domestic operations of any subsidiary (other than a bank) of any listed entity that is organized under U.S.The domestic operations of any entity (other than a bank) whose common stock or analogous equity interests are listed on the New York Stock Exchange or the NYSE American or have been designated as a NASDAQ National Market Security listed on the NASDAQ Stock Market, with some exceptions (“listed entity”).Any entity established under federal, state, or local laws and exercising governmental authority on behalf of the United States or a state or local government.A federal, state, or local government agency or department.A bank, to the extent of its domestic operations.Exempt PersonsįinCEN’s regulation identifies five categories of Phase I exempt persons: ![]() See also FinCEN (June 11, 2012), FIN-2012-G003 “ Guidance on Determining Eligibility for Exemption from Currency Transaction Reporting Requirements.” Pursuant to the Money Laundering Suppression Act of 1994, FinCEN established a process for banks to designate certain customers (referred to as Phase I and Phase II exempt persons) as exempt from the requirement to report currency transactions. However, banks may exempt certain types of customers from currency transaction reporting. Forms to be used in making reports of currency transactions may be obtained from BSA E-Filing System (. Effective July 1, 2012, FinCEN mandated electronic filing of certain BSA reports, including the CTR. 100(m) defines currency as coin and paper money of the United States or any other country that is designated as legal tender and that circulates and is customarily used and accepted as a medium of exchange in the country of issuance. Specifically, this section covers:Ī bank must electronically file a Currency Transaction Report (CTR) for each transaction in currency (deposit, withdrawal, exchange of currency, or other payment or transfer) of more than $10,000 by, through, or to the bank. This section outlines the regulatory requirements for banks in 31 CFR Chapter X regarding transactions of exempt persons. ![]() ![]() Regulatory Requirements for Transactions of Exempt Persons ![]() Objective: Assess the bank’s compliance with the BSA regulatory requirements for exemptions from the currency transaction reporting requirements.
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