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#356872 - 05/06/05 09:31 PM Phase 2 Exemption for Savings Account
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Can a Savings Account be exempted under Phase 2 rules?

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BSA/AML/CIP/OFAC Forum
#356873 - 05/06/05 09:49 PM Re: Phase 2 Exemption for Savings Account
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Sure. Actually you exempt the TIN and all of their accounts are automatically exempt.
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#356874 - 05/09/05 05:15 PM Re: Phase 2 Exemption for Savings Account
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
The exemptible accounts of a non-listed business or payroll customer include transaction accounts and money market deposit accounts.
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#356875 - 05/09/05 08:25 PM Re: Phase 2 Exemption for Savings Account
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Quote:

The exemptible accounts of a non-listed business or payroll customer include transaction accounts and money market deposit accounts.


Be careful how you interpret "transaction accounts and money market deposit accounts". The Phase II exemption rules [see 31 CFR 103.22(d)(6)(v)] indicate "a bank may treat all exemptible accounts of the customer as a single account." When FinCEN wrote this, there was some confusion of what a "transaction account" means, since we bankers think of the Reg D definitions. I talked to Peter Djinis (then Assistant Director of FinCEN) about this and was told that this means any account that can have a transaction.

Please read this this prior BOL thread

Savings accounts are also included in the definition of "transaction account" as well as MMDA's, NOW's, and checking accounts.

Here's how we address this issue in our Advanced Deposit Operations Manual:
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When exempting a business customer under this rule, the bank may aggregate all of the accounts the customer has at the bank (checking, savings, MMDA’s, etc.) and apply the exemption to all of the accounts. For instance, if a business customer has four accounts at the bank and each account shows a $4,000 deposit on the same banking day, the bank does not need to file a Currency Transaction Report even though a cash transaction in excess of $10,000 for the same customer has occurred.
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David Dickinson
http://www.bankerscompliance.com

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#356876 - 05/10/05 01:20 PM Re: Phase 2 Exemption for Savings Account
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
In reading the definition of "Transaction Account", I didn't think that it included savings accounts because you can't withdraw by check or negotiable order. I recently had to meet with a regulator to explain that it could include a money market account (it was a finding in our of our regulatory exams that only a checking account could be exempt). No wonder we stay so confused!

(hh) Transaction account. Transaction accounts include those accounts described in 12 U.S.C. 461(b)(1)(C), money market accounts and similar accounts that take deposits and are subject to withdrawal by check or other negotiable order.
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