What are the exemptions for CTR reporting?
What are the exemptions for CTR reporting?
The Money Laundering Suppression Act of 1994 established a two-phase exemption criteria. Under Phase 1, transactions conducted by banks, government departments or agencies, and listed public companies and their subsidiaries are exempt from CTR reporting.
Who is exempt from FinCEN?
The customers that the bank may exempt are called “exempt persons.” An exempt person may be a bank, government agency/government authority, listed company, listed company subsidiary, eligible non-listed business, or payroll customer.
How do I revoke CTR exemptions?
If the bank has improperly exempted accounts or ceases to treat a customer as exempt, it must begin filing CTRs on reportable transactions and may revoke the exemption by filing a DOEP report and checking the “Exemption Revoked” box.
How long must covered financial institutions maintain CTRs?
five years
After submitting a report via the BSA E-Filing System, filers are required to save a printed or electronic copy of the report in accordance with applicable record retention policies and procedures. Filers are reminded that they are generally required to keep copies of their filings for five years.
What is Section 314 of the USA Patriot Act?
Section 314 of the USA PATRIOT Act (Sec 314) was drafted by Congress in 2001 to allow financial institutions to work with law enforcement agencies and with each other to support the common goal of deterring money laundering and terrorist financing.
How long must CTRs and SARs be kept on file?
5 years
All CTRs and SARs must be retained 5 years after filing. Records of every cashier and other official check of $3,000 or more must be stored for 5 years after issuance.
What is insider abuse?
Insider abuse, according to the Special Assessment Regulations (SAR), is when employees and top officials use insider knowledge to commit fraud.
What is the penalty for violating BSA?
For example, a person, including a bank employee, willfully violating the BSA or its implementing regulations is subject to a criminal fine of up to $250,000 or five years in prison, or both. 31 USC 5322(a).
Does a CTR trigger an audit?
Although having a CTR on your IRS file may cause you to be audited, structuring your transactions to avoid the CTR is illegal, and it will cause you even more headaches.
Is 314 a mandatory?
In BSA, information requests are commonly referred to as sections 314(a) and 314(b) of the USA Patriot Act….314(a) and 314(b) Information Sharing: Is there a Difference?
| Key Elements | Section 314(a) | Section 314(b) |
|---|---|---|
| Participation | Mandatory | Voluntary |
What do the final CTR exemption rules mean for banks?
The final CTR exemption rules do not relieve banks of their separate obligation to conduct suspicious activity monitoring and reporting for both Phase I and Phase II exempt customers. 10 II. Frequently asked questions: Since the publication of the final rules, FinCEN has received questions regarding various provisions.
What are the Phase II CTR exemptions?
Phase II CTR Exemptions4 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.
Can a unincorporated business be exempt from a CTR?
In the example used in the question, an unincorporated business that incorporates would likely need reevaluation for the purposes of CTR exemption eligibility. 15 Accordingly, after verifying that the newly restructured business was eligible for exemption, a bank wishing to treat that customer as exempt would need to file a new DOEP form.
What does elimination of designation of Exempt Person mean?
Elimination of designation and annual review for most Phase I customers.7 Banks are no longer required to file a designation of exempt person (“DOEP”) form for, or conduct an annual review of, customers who are other depository institutions operating in the United States, U.S. or State governments, or entities acting with governmental authority.
