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#340169 - 03/30/05 12:46 AM To file or not to file(?)
Wyogirl Offline
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Wyogirl
Joined: Nov 2001
Posts: 713
Laramie, WY. USA
I'm having a heck of a time thinking this one through and need the help of my esteemed, web-land, cohorts.

I have a phase II exempt person, which is a corporation, (Corp 1). The owners of this corporation, the Smith's, (not the real name), own another corporation called Smith, Inc. The Smith's own another business, which we have listed as Smith, Inc., dba "the other business".

Last week, Mrs. Smith deposited over $10K into her personal money market(We do know the source of the funds and it is not suspicious). She at the same time deposited $3K into Corp 1 and $5K into Smith, Inc.

Are all of the above transactions exempt from CTR reporting? It just doesn't feel right. Should I file a CTR on Mrs. Smith, then not worry about the other two, as the deposits fall under the exemption and don't total >$10K?

Thank you for your support,
Deb

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#340170 - 03/30/05 12:01 PM Re: To file or not to file(?)
MagicCity Offline

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MagicCity
Joined: Apr 2003
Posts: 3,003
Fort Lauderdale, Florida
Only Corp 1 is exempt, correct?
So I would file for $15M in the personal account and Smith Inc.

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#340171 - 03/30/05 04:03 PM Re: To file or not to file(?)
Cathy P Offline
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Cathy P
Joined: Jan 2003
Posts: 318
NE
I agree. Since Smith Inc is a separate entity from Corp 1, it is not exempt from CTR filing.
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#340172 - 03/30/05 04:06 PM Re: To file or not to file(?)
Wyogirl Offline
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Wyogirl
Joined: Nov 2001
Posts: 713
Laramie, WY. USA
Yes, only Corp. 1 has been designated exempt. I guess this is where my confusion lies, the differences between the old rules (exempt account) and post 1998 rules, (exempt person).

So, in other words you are saying, report the deposits of Smith, Inc. and Mrs. Smith? Smith, Inc. was for less than $10K. If it is correct to combine the deposits of Smith, Inc. and Mrs. Smith, why is it incorrect to not combine the deposits under the exemption?

I don't mean to question you, I just need complete understanding. Thank you for your thoughts.

Deb

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#340173 - 03/30/05 05:03 PM Re: To file or not to file(?)
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
The way you described these customers, we are led to believe that Corp. 1 is one entity, Smith Inc. is another entity. Each is a separate "person" under the law and under the BSA regulations.

When you exempt a person, you exempt all of that person's exemptible accounts, but you don't exempt related persons. You have two persons here (Corp. 1 and Smith, Inc.) Only Corp. 1 is exempt.
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#340174 - 03/30/05 06:25 PM Re: To file or not to file(?)
Wyogirl Offline
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Wyogirl
Joined: Nov 2001
Posts: 713
Laramie, WY. USA
Thank you John, I get it. Thank you also for understanding my question, which I was having a hard time explaining.

Deb

Go Spartans!

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#340175 - 03/30/05 10:48 PM Re: To file or not to file(?)
Anonymous
Unregistered

My bank had a similar situation in which a person deposited over $10,000 split into a personal account and their business account. Instead of filing two different CTR's, we filed only one and indicated that multiple transactions took place and multiple accounts were affected. We listed every account number that was affected and both the persons name and the person's business. Was this acceptable?

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#340176 - 03/30/05 11:12 PM Re: To file or not to file(?)
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Yes. When one individual brings in several cash deposits for multiple accounts, you should file one CTR that combines all the transactions.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

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