What is designation of exempt person?

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. FinCEN encourages banks to use the exemption procedure to the fullest extent.

Can an individuals be exempted from CTR currency transaction report filing requirements?

The CTR Exemptions Rule focuses on the definition of an “exempt person” and allows (but does not require) banks to exempt currency transactions in excess of $10,000 from the reporting process if they involve any of the following “exempt persons”: Another bank in the United States.

What businesses are eligible to be treated as non-listed businesses?

A non-listed business is one that is not publicly traded on a major stock exchange. In order to be eligible for exemption, the company must maintain a transaction account for two months, have at least eight large currency transactions over a year, and must be eligible to do business within the United States.

What must a financial institution file to request a CTR reporting exemption for a customer?

The Bank Secrecy Act and its implementing regulations require financial institutions to file a CTR on any transaction in currency of more than $10,000. The regulations in the Bank Secrecy Act also provide banks with the ability to exempt certain customers from currency transaction reporting.

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.

What is not considered currency for the purpose of the Bank Secrecy Act?

Cash is defined as being currency and coins of the United States and any other country or certain monetary instruments such as cashier’s checks, bank drafts, traveler’s checks or money orders. A personal check is not considered to be cash.

How do you identify a suspicious transaction report?

An STR should include the following details:

personal particulars (name, identity card or passport number, date of birth, address, telephone number, bank account number) of the person(s) or company involved in the suspicious transaction;
details of the suspicious financial activity;

Who must file a CTR?

Filing Obligations A bank must electronically file a Currency Transaction Report (CTR) for each transaction in currency1 (deposit, withdrawal, exchange of currency, or other payment or transfer) of more than $10,000 by, through, or to the bank.

What are the CIP requirements?

The CIP rule requires that a bank retain the identifying information obtained about the customer at the time of account opening for five years after the date the account is closed or, in the case of 7 Page 8 credit card accounts, five years after the account is closed or becomes dormant.

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.