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#1193806 - 06/01/09 06:17 PM BSA Exemptions
Newbie06 Offline
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I wanted to clarify the second part of the BSA exemption rule. When it says that there has to be 5 transactions with in a calendar year, does this suggest that a transaction in April of 08' drops off the tally on March 31st of 09'? Or does one keep a running tab until the customer hits 5 transactions?

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#1193816 - 06/01/09 06:25 PM Re: BSA Exemptions Newbie06
Skittles Offline
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No, it has to be within one year - like your April of '08 through March 31st of '09.
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#1193968 - 06/01/09 08:10 PM Re: BSA Exemptions Skittles
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So, Skittles do you have the understanding then that reviewing bi-annual renewals a whole 2 years has to pass before that can be completed? Let's say that we do an exemption in September of 09', do we do a biannual renewal in March of 2012 so that a full 2 years has passed or do we wait until March of 2011?

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#1193971 - 06/01/09 08:12 PM Re: BSA Exemptions Newbie06
Skittles Offline
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Biennial renewals are no longer required. All accounts need to be reviewed on an annual basis to see if they are still qualified. That hasn't changed.
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#1193999 - 06/01/09 08:27 PM Re: BSA Exemptions Skittles
Newbie06 Offline
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I know the biannual renewals are not required anymore but in the process of seeing if the customer still qualifies would one check from September of 09' til March of 2012 or March of 2011?

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#1194012 - 06/01/09 08:34 PM Re: BSA Exemptions Newbie06
Kelsey D Offline
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A bank must annually review the eligibility of its exempt persons, so you would want to see that there were 5 or more transaction in the preceding 12 months.
Last edited by Kelsey D; 06/01/09 08:35 PM.
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#1194029 - 06/01/09 08:43 PM Re: BSA Exemptions Kelsey D
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So, then the exemption done in September of 09' would actually go until August 31 of 2011?--having done 5 transactions within a 12 month period. Then, if they don't meet the requirements the revoke be done in March of 2012. Correct?

I think all the timeliness of Reg Z and timeframes for BSA are driving me crazy.

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#1194032 - 06/01/09 08:45 PM Re: BSA Exemptions Newbie06
Skittles Offline
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No, it would go to September 2010. If they weren't qualified the exemption should be revoked at that time.
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#1194038 - 06/01/09 08:50 PM Re: BSA Exemptions Newbie06
Kelsey D Offline
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There's no requirement on when the annual review must be done, so technically you could wait until September 2010 and review the last 12 months. If there were less than 5 reportable transactions, you would revoke the exemption right then (no need to send in revocation anymore).

I like to review all of my exemptions during the same time each year around March. So if I exempted a customer in September '09, I would look at them again in March '10, looking at the past 12 months, and if they don't meet the eligibility requirements, I would revoke them right then.

No matter when you do your annual review, just make sure that you do it at least annually, you're looking at the most recent 12 months, and you're revoking them right away if necessary. I'm not sure about your reference to waiting until March to revoke. You can and should do that any time. Again, you don't have to send anything in anymore. Just update your internal lists and start filing CTR's.
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#1194044 - 06/01/09 08:55 PM Re: BSA Exemptions Skittles
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So, even though we no longer have to file biennial renewals anymore, it sounds like to whole "bi" is out the window. Now we should be reviewing them every year to see if they qualify or not.

I see where you are getting that from now, "Depository institutions will no longer be required to biennially renew a designation of ecempt person filing for otherwise eligible Phase II customers, but an annual review of these customers must still be conducted."

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#1194050 - 06/01/09 08:58 PM Re: BSA Exemptions Newbie06
Kelsey D Offline
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The annual review has always been a requirement, and you are correct that there is nothing that needs to be done bi-annually anymore.
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#1194059 - 06/01/09 09:10 PM Re: BSA Exemptions Kelsey D
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So, how does this all become less work when every month customers have to be reviewed instead of once a year before March 15? Because that is what we are going to have to do. Before this change came about FinCEN's told us to make sure all of our bi's were done in March and now we have to check every month back a full 12 months.

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#1194133 - 06/02/09 02:40 AM Re: BSA Exemptions Newbie06
rlcarey Online
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See Kelsey D's post #1194038 above. There is no requirement to look at anything every month. You can do all of your annual reviews at one time by following the example given in that post.
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