Important Note: Effective 12/17/2009, official FinCEN Administrative Rulings with precedential value are published on the agency's website at www.fincen.gov. This Appendix is official removed from Part 103 effective 12/17/2009.
No. 88-4 -- Listing multiple locations on exemption list
No. 88-5 -- CTRs if bank used armored car service and never receives cash
No. 89-1 -- Exempting multiple accounts of one customer
No. 89-2 -- Aggregating currency transactions of multiple accounts
No. 89-5 -- Furnishing information about person on whose behalf a reportable currency transaction is being conducted
No. 92-1 -- Identification of elderly or disabled patrons conducting large currency transactions
No. 92-2 -- Completing CTR involving multiple transactions when information for completion is unknown
#88-1 (6/22/1988)
Issue
What action should a financial institution take when it believes
that it is being misused by persons who are intentionally structuring
transactions to evade the reporting requirement or engaging in
transactions that may involve illegal activity such as drug trafficking,
tax evasion or money laundering?
Facts
A teller at X State Bank notices that the same person comes into the
bank each day and purchases, with cash, between $9,000 and $9,900 in
cashier's checks. Even when aggregated, these purchases never exceed
$10,000 during any one business day. The teller also notices that this
person tries to go to different tellers for each transaction and is very
reluctant to provide information about his frequent transactions or
other information such as name, address, etc. Likewise, the payees on
these cashier's checks all have common names such as ``John Smith'' or
``Mary Jones.'' The teller informs the bank's compliance officer that
she believes that this person is structuring his transactions in order
to evade the reporting requirements under the Bank Secrecy Act. X State
Bank wants to know what actions it should take in this situation or in
any other situation where a transaction or a person conducting a
transaction appears suspicious.
Law and Analysis
As it appears that the person may be intentionally structuring the
transactions to evade the Bank Secrecy Act reporting requirements, X
State Bank should immediately telephone the local office of the Internal
Revenue Service (``IRS'') and speak to a Special Agent in the IRS
Criminal Investigation Division, or should call 1-800-BSA-CTRS, where
his call will be referred to a Special Agent.
Any information provided to the IRS should be given within the
confines of Sec. 1103(c) of the Right to Financial Privacy Act. 12
U.S.C. 3401-3422. Section 1103(c) of that Act permits a financial
instituiton to notify a government authority of information relevant to
a possible violation of any statute or regulation. Such information may
consist of the names of any individuals or corporate entities involved
in the suspicious transactions; account numbers; home and business
addresses; social security numbers; type of account; interest paid on
account; location of the branch or office where the suspicious
transaction occurred; a specification of the offense that the financial
institution believes has been committed; and a description of the
activities giving rise to the bank's suspicion. S. Rep. 99-433, 99th
Cong., 2d Sess., pp. 15-16.
Additionally, the bank may be required, by the Federal regulatory
agency which supervises it, to submit a criminal referral form. Thus,
the bank should check with its regulatory agency to determine whether a
referral form should be submitted.
Lastly, under the facts as described above, X State Bank is not
required to file a Currency Transaction Report (``CTR'') because the
currency transaction (i.e. purchase of cashier's checks) did not exceed
$10,000 during one business day. If the bank had found that on a
particular day the person had in fact used a total of more than $10,000
in currency to purchase cashier's checks, but had each individual
cashier's check made out in amounts of less than $10,000, the bank is
obligated to file a CTR, and should follow the other steps described
above.
Holding
If X State Bank notices that a person may be misusing it by
intentionally structuring transactions to evade the BSA reporting
requirements or engaging in transactions that may involve other illegal
activity, the bank should telephone the local office of the Internal
Revenue Service, Criminal Investigation Division, and report that
information to a Special Agent, or should call 1-800-BSA-CTRS. In
addition, the Federal regulatory agency which supervises X State Bank
may require the bank to submit a criminal referral form. All disclosures
to the Government should be made in accordance with the provisions of the Right to
Financial Privacy Act.
88-2 (June 22, 1988)
Issue
When, if ever, should a bank file a CMIR on behalf of its customer,
when the customer is importing or exporting more than $10,000 in
currency or monetary instruments?
Facts
A customer walks into B National Bank (``B'') with $15,000 in cash
for deposit into her account. As is required, the bank teller begins to
fill out a Currency Transaction Report (``CTR'', IRS Form 4789) in order
to report a transaction in currency of more than $10,000. While the
teller is filling out the CTR, the customer mentions to the teller that
she has just received the money in a letter from a relative in France.
Should the teller also file a CMIR, either on the customer's behalf or
on the bank's behalf?
Law and Analysis
B National Bank should not file a CMIR when a customer deposits
currency in excess of $10,000 into her account, even if the bank has
knowledge that the customer received the currency from a place outside
the United States. 31 CFR 103.23 requires that a CMIR be filed by anyone
who transports, mails, ships or receives, or attempts, causes or
attempts to cause the transportation, mailing, shipping or receiving of
currency or monetary instruments in excess of $10,000, from or to a
place outside the United States. The term ``monetary instruments''
includes currency and instruments such as negotiable instruments
endorsed without restriction. See 31 CFR 103.11(k).
The obligation to file the CMIR is solely on the person who
transports, mails, ships or receives, or causes or attempts to
transport, mail, ship or receive. No other person is under any
obligation to file a CMIR. Thus, if a customer walks into the bank and
declares that he or she has received or transported currency in an
aggregate amount exceeding $10,000 from a place outside the United
States and wishes to deposit the currency into his or her account, the
bank is under no obligation to file a CMIR on the customer's behalf.
Likewise, because the bank itself did not receive the money from a
customer outside the United States, it has no obligation to file a CMIR
on its own behalf. The same holds true if a customer declares his intent
to transport currency or monetary instruments in excess of $10,000 to a
place outside the United States.
However, the bank is strongly encouraged to inform the customer of
the CMIR reporting requirement. If the bank has knowledge that the
customer is aware of the CMIR reporting requirement, but is nevertheless
disregarding the requirement or if information about the transaction is
otherwise suspicious, the bank should contact the local office of the
U.S. Customs Service or 1-800-BE ALERT. The United States Customs
Service has been delegated authority by the Assistant Secretary
(Enforcement) to investigate criminal violations of 31 CFR 103.23. See
31 CFR 103.36(c)(1).
Any information provided to Customs should be given within the
confines of section 1103(c) of the Right to Financial Privacy Act, 12
U.S.C. 3401-3422. Section 1103(c) permits a financial institution to
notify a Government authority of information relevant to a possible
violation of any statute or regulation. Such information may consist of
the name (including those of corporate entities) of any individual
involved in the suspicious transaction; account numbers; home and
business addresses; social security numbers; type of account; interest
paid on account; location of branch where the suspicious transaction
occurred; a specification of the offense that the financial institution
believes has been committed; and a description of the activities giving
rise to the bank's suspicions. See S. Rep. 99-433, 99th Cong., 2nd
Sess., pp. 15-16. Therefore, under the facts above, the teller need only
file a CTR for the deposit of the customer's $15,000 in currency.
A previous interpretation of Sec. 103.23(b) by Treasury held that if
a bank received currency or monetary instruments over the counter from a
person who may have transported them into the United States, and knows
that such items have been transported into the country, it must file a
report on Form 4790 if a complete and truthful report has not been filed
by the customer. See 31 CFR 103 appendix, Sec. 103.23, interpretation 2,
at 364 (1987). This ruling hereby supersedes that interpretation.
Holding
A bank should not file a CMIR when a customer deposits currency or
monetary instruments in excess of $10,000 into her account even if the
bank has knowledge that the currency or monetary instruments were
received or transported from a place outside the United States. 31 CFR
103.23. The same is true if the bank has knowledge that the customer
intends to transport the currency or monetary instruments to a place
outside the United States. However, the bank is required to file a CTR
if it receives in excess of $10,000 in cash from its customer, and is
strongly encouraged to inform the customer of the CMIR requirements. In
addition, if the bank has knowledge that the customer is aware of the
CMIR reporting requirement and is nevertheless planning to disregard it
or if the transaction is otherwise suspicious, the bank should notify
the local office of the United States Customs Service (or 1-800-Be Alert) of the suspicious transaction. Such notice should be made within the confines of the Right
to Financial Privacy Act, 12 U.S.C. 3403(c).
88-3 (June 22, 1988)
Issue
Whether a bank may exempt ``cash-back'' transactions of a customer
whose primary business is of a type that may be exempted either
unilaterally by the bank or pursuant to additional authority granted by
the IRS.
Facts
The ABC Grocery (``ABC''), a retail grocery store, has an account at
the X State Bank for its daily deposits of currency. Because ABC
regularly and frequently deposits amounts ranging from $20,000 to
$30,000, the bank has properly granted ABC an exemption for daily
deposits up to a limit of $30,000.
Recently, ABC began providing its customers with a check-cashing
service as an adjunct to its primary business of selling groceries.
ABC's primary business still consists of the sale of groceries. However,
the unexpectedly heavy demand for ABC's check-cashing service has
required ABC to maintain a substantially greater quantity of cash in the
store than was necessary for the grocery business in the past. To
facilitate the operations of its check-cashing service, ABC is
presenting the bank with large numbers of checks in ``cash-back''
transactions, rather than depositing the checks into its account and
withdrawing cash from that account. X State Bank has just been presented
with a ``cash-back'' transaction wherein an employee of ABC is
exchanging $15,000 worth of checks for cash. How should the bank treat
this transaction?
Law and Analysis
A cash back transaction is one where one or more checks or other
monetary instruments are presented in exchange for cash or a portion of
the checks or monetary instruments are deposited while the remainder is
exchanged for cash. ``Cash back'' transactions can never be exempted
from the Bank Secrecy Act reporting requirements. Thus, the bank must
file a Currency Transaction Report on IRS Form 4789 reporting this
$15,000 ``cash back'' transaction, even though the customer's account
has been granted an exemption for daily deposits of up to $30,000. This
is because Sec. 103.22(b)(i) permits a bank to exempt only ``(d)eposits
or withdrawals of currency from an existing account by an established
depositor who is a United States resident and operates a retail type of
business in the United States'' (emphasis added). As ``cash-back''
transactions do not constitute either a ``deposit or withdrawal of
currency'' within the meaning of the regulations, the bank must report
on a CTR any ``cash-back'' transaction that results in the transfer of
more than $10,000 in currency to a customer during a single banking day,
regardless of whether the customer has properly been granted an
exemption for its deposits or withdrawals.
Moreover, because ``cash back'' transactions are never exemptible,
the bank may not unilaterally exempt ``cash-back'' transactions by ABC,
or seek additional authority from the IRS to grant a special exemption
for ABC's ``cash-back'' transactions. Instead, the bank must report
ABC's ``cash back'' transaction on a CTR, listing it as a $15,000
``check cashed'' transaction.
Holding
A bank may never grant a unilateral exemption, or obtain additional
authority from the IRS to grant a special exemption to the ``cash-back''
transactions of a customer. A ``cash back'' transaction is one where one
or more checks or other monetary instruments are presented in exchange
for cash or a portion of the checks or monetary instruments are
deposited while the remainder is exchanged for cash. If a bank handles a
``cash-back'' transaction that results in the transfer of more than
$10,000 to a customer during a single banking day, it must report that
transaction on IRS Form 4789, the Currency Transaction Report, as a
``check cashed'' transaction, regardless of whether the customer has
been properly granted an exemption for daily deposits or withdrawals.
88-4 (August 2, 1988)
Issue
If a bank has exempted a single account of a customer into which
multiple establishments of that customer make deposits, must the bank
list all of the establishments on its exemption list or may the bank
list only the Sec. 103.22(f) information of the customer's headquarters
or its principal business establishment on its exemption list?
Facts
A fast food company operates a chain of fast-food restaurants in
several states. In New York, the company has established a single
deposit account at Bank A, into which all of the company's
establishments in that area make deposits. In Connecticut, the company
has established ten bank accounts at Bank B; each of the company's ten
establishments in Connecticut have been assigned a separate account into
which it makes deposits. Banks A and B have properly exempted the
company's accounts, but now seek guidance on the manner in which they
should add these accounts to their exemption lists. All
of the company's establishments use the same taxpayer identification
number (``TIN'').
Law and Analysis
Under the regulations, the bank must keep ``in a centralized list,''
Sec. 103.22(f) information for ``each depositor that has engaged in
currency transactions which have not been reported because of (an)
exemption * * *'' However, where all of the company's establishments
deposit into one exempt account as at Bank A, above, the bank need only
maintain Sec. 103.22(f) information on its list for the customer's
corporate headquarters or the principal establishment that obtained the
exemption. The bank may, but is not required to, list identifying
information for all of the customers' establishments depositing into the
one account. If the bank chooses to list only the information for the
customer's headquarters or principal establishment, it should briefly
note that on the exemption list and should ensure that the individual
addresses for each establishment are readily available upon request.
Where each of the company's establishments deposit into separate exempt
accounts as at Bank B, the bank must maintain separate Sec. 103.22(f)
information on the exemption list for each establishment.
Under Sec. 103.22(b)(2) (i), (ii), and (iv) and Sec. 103.22(e) of
the regulation, a bank can only grant an exemption for ``an existing
account (of) an established depositor who is a United States resident.''
Under these provisions, therefore, the bank can only grant an exemption
for an existing individual account, not for an individual customer or
group of accounts. Thus, if a customer has a separate account for each
of its business establishments, the bank must consider each account for
a separate exemption. If the bank grants exemptions for more than one
account, it should prepare a separate exemption statement and establish
a separate dollar limit for each account.
Once an exemption has been granted for an account, Sec. 103.22(f)
requires the bank to maintain a centralized exemption list that includes
the name, address, business, types of transactions exempted, the dollar
limit of the exemption, taxpayer identification number, and account
number of the customers whose accounts have been exempted.
Holding
Under 31 CFR 103.22, when a bank has exempted a single account of a
customer into which more than one of the customer's establishments make
deposits, the bank may include the name, address, business, type of
transactions exempted, the dollar limit of the exemption, taxpayer
identification number, and account number (``Sec. 103.22(f)
information'') of either the customer's headquarters or the principal
business establishment, or it may separately list Sec. 103.22(f)
information for each of the establishments using that account. If the
bank chooses to list only the information for the customer's
headquarters or principal establishment, it should briefly note that
fact on the exemption list, and it should ensure that the individual
addresses of those establishments not on the list are readily available
upon request. If a bank has granted separate exemptions to several
accounts, each of which is used by a single establishment of the same
customer, the bank must include on its exemption list Sec. 103.22(f)
information for each of those establishments. Previous Treasury
correspondence or interpretations contrary to this policy are hereby
rescinded.
88-5 (August 2, 1988)
Issue
Does a financial institution have a duty to file a CTR on currency
transactions where the financial institution never physically receives
the cash because it uses an armored car service to collect, transport
and process its customer's cash receipts?
Facts
X State Bank (the ``Bank'') and Acme Armored Car Service (``Acme'')
have entered into a contract which provides for Acme to collect,
transport and process revenues received from Bank customers:
Each day, Acme picks up cash, checks, and deposit tickets from
Little Z, a non-exempt customer of the Bank. Recently, receipts of cash
from Little Z have exceeded $10,000. Acme delivers the checks and
deposit tickets to the Bank where they are processed and Little Z's
account is credited. All cash collected, however, is taken by Acme to
its central office where it is counted and processed. The cash is then
delivered by Acme to the Federal Reserve Bank for deposit into the
Bank's account. Must the Bank file a CTR to report a receipt of cash in
excess of $10,000 by Acme from Little Z?
Law and Anaylsis
Yes. Since Acme is receiving cash in excess of $10,000 on behalf of
the Bank, the Bank must file a CTR in order to report these
transactions.
Section 103.22(a)(1) requires ``(e)ach financial institution * * *
[to] file a report of each deposit, withdrawal, exchange of currency or
other payment or transfer, by, through or to such financial institution
which involves a transaction in currency of more than $10,000.'' Section
103.11 (a) and (g) defines ``Bank'' and ``Financial Institution'' to
include agents of those banks and financial institutions.
Under the facts presented, Acme is acting as an agent of the Bank.
This is because Acme and the Bank have a contractual relationship
whereby the Bank has authorized Acme to pick up, transport and process
Little Z's receipts on behalf of the Bank. The Federal Reserve Bank's
acceptance of deposits from Acme into the Bank's account at the Fed, is
additional evidence of the agency relationship between the Bank and
Acme.
Therefore, when Acme receives currency in excess of $10,000 from
Little Z, the Bank must report that transaction on Form 4789. Likewise,
if Acme receives currency from Little Z in multiple transactions,
Sec. 103.22(a)(1) requires the Bank to aggregate these transactions and
file a single CTR for the total amount of currency received by Acme, if
the Bank has knowledge of these multiple transactions. Knowledge by the
Bank's agent, i.e., Acme, that the currency was received in multiple
transactions, is attributable to the Bank. The Bank must assure that
Acme, as its agent, obtains all the information and identification
necessary to complete the CTR.
Holding
Financial institutions must file a CTR for the currency received by
an armored car service from the financial institution's customer when
the armored car service physically receives the cash from the customer,
transports it and processes the receipts, even though the currency may
never physically be received by the financial institution. This is
because the armored car service is acting as an agent of the financial
institution.
89-1 (January 12, 1989)
Issue
[Editor's note: Although this ruling continues to appear in the official version of this Appendix, we believe that all or part of the ruling was made moot and therefore outdated under revisions to the exemptions regulations that created Phase I and Phase II exemptions.]
Under Sec. 103.22 of the BSA regulations, may a bank unilaterally
grant one exemption or establish a single dollar exemption limit for a
group of existing accounts of the same customer? If not, may a bank
obtain additional authority from the IRS to grant a single exemption for
a group of exemptible accounts belonging to the same customer?
Facts
ABC Inc. (``ABC''), with TIN 12-3456789, owns five fast food
restaurants. Each restaurant has its own account at the X State Bank and
each restaurant routinely deposits less than $10,000 into its individual
account. However, when the deposits into these five accounts are
aggregated they regularly and frequently exceed $10,000. Accordingly,
the bank prepares and files one CTR for ABC Inc., on each business day
that ABC's aggregated currency transactions exceed $10,000. X State Bank
wants to know whether it can unilaterally exempt these five accounts
having the same TIN, and, if not, whether it can obtain additional
authority from the IRS to grant a single exemption to the group of five
accounts belonging to ABC.
Law and Analysis
Under Sec. 103.22(b)(2) (i) and (ii) of the Bank Secrecy Act
(``BSA'') regulations, 31 CFR part 103, only an individual account of a
customer may be unilaterally exempted from the currency transaction
reporting provisions. The bank may not unilaterally grant one exemption
or establish a single dollar exemption limit for multiple accounts of
the same customer. This is because Secs. 103.22(b)(2)(i) and
103.22(b)(2)(ii) of the BSA regulations only permit a bank to
unilaterally exempt ``[d]eposits or withdrawals of currency from an
existing account by an established depositor who is a United States
resident and operates a retail type of business in the United States.''
31 CFR 103.22(b)(2) (i) and (ii).
Section 103.22(e) of the BSA regulations provides, however, that
``[a] bank may apply to the * * * [IRS] for additional authority to
grant exemptions to the reporting requirements not otherwise permitted
under paragraph (b) of this section * * *'' 31 CFR 103.22(e). Therefore,
under this authority, and at the request of a bank, the IRS may, in its
discretion, grant the requesting bank additional authority to exempt a
group of accounts when the following conditions are met:
(1) Each of the accounts in the group is owned by the same person
and has the same taxpayer identification number.
(2) The deposits or withdrawals into each account are made by a
customer that operates a business that may be either unilaterally or
specially exemptible and each account meets the other exemption criteria
(except for the dollar amount).
(3) Currency transactions for each account individually do not
exceed $10,000 on a regular and frequent basis.
(4) Aggregated currency transactions for all accounts included in
the group regularly and frequently exceed $10,000.
If a bank determines that an exemption would be appropriate in a
situation involving a group of accounts belonging to a single customer,
it must apply to the IRS for authority to grant one special exemption
covering the accounts in question. As with all requests for special
exemptions, any request for additional authority to grant a special
exemption must be made in writing and accompanied by a statement of the
circumstances that warrant special exemption treatment and a copy of the
statement signed by the customer as required by Sec. 103.22(d). 31 CFR
103.22(d).
Additional authority to grant a special exemption for a group of
accounts must be obtained from the IRS regardless of whether the
businesses may be unilaterally exempted
under Sec. 103.22(b)(2), because the exemption, if granted, would apply
to a group of existing accounts as opposed to an individual existing
account. 31 CFR 103.22(b)(2).
Also, if any one of a given customer's accounts has regular and
frequent currency transactions which exceed $10,000, that account may
not be included in the group exemption. This is because the bank may, as
provided by Sec. 103.22(b)(2), either unilaterally exempt that account
or obtain authority from the IRS to grant a special exemption for that
account if it meets the other criteria for exemption. Thus, only
accounts of exemptible businesses which do not have regular and frequent
(e.g., daily, weekly or twice a month) currency transactions in excess
of $10,000 may be eligible for a group exemption.
The intention of this special exemption is to permit banks to exempt
the accounts of established customers, such as the ABC Inc. restaurants
described above, which are owned by the same person and have the same
TIN but which individually do not have sufficient currency deposit or
withdrawal activity that regularly and frequently exceed $10,000.
Holding
If X State Bank determines that an exemption would be appropriate
for ABC Inc., it must apply to the IRS for authority to grant one
special exemption covering ABC's five separate accounts. As with all
requests for special exemptions, ABC's request for additional authority
to grant a special exemption must be made in writing and accompanied by
a statement of the circumstances that warrant special exemption
treatment and a copy of the statement signed by the customer as required
by Sec. 103.22(d). 31 CFR 103.22(d). The IRS may, in its discretion,
grant additional authority to exempt the ABC accounts if: (1) They have
the same taxpayer identification number; (2) they each are for customers
that operate a business that may be either unilaterally or specially
exemptible and each account meets the other exemption criteria (except
for dollar amount); (3) the currency transactions for each account
individually do not exceed $10,000 on a regular and frequent basis; but
(4) when aggregated the currency transactions for all the accounts
regularly and frequently do exceed $10,000.
89-2 (June 21, 1989)
Issue
[Editor's note: Although this ruling continues to appear in the official version of this Appendix, we believe that all or part of the ruling was made moot and therefore outdated under revisions to the exemptions regulations that created Phase I and Phase II exemptions.]
When a customer has established bank accounts for each of several
establishments that it owns, and the bank has exempted one or more of
those accounts, how does the bank aggregate the customer's currency
transactions?
Facts
X Company (``X'') operates two fast-food restaurants and a wholesale
food business. X has opened separate bank accounts at the A National
Bank (the ``Bank'') for each of its two restaurants, account numbers 1
and 2 respectively. Each of these two accounts has been properly
exempted by the bank. Account number 1 has an exemption limit of $25,000
for deposits, and account number 2 has an exemption limit of $40,000 for
deposits. X also has a third account, account number 3, at the bank for
use in the operation of its wholesale food business. On occasion, cash
deposits of more than $10,000 are made into this third account. Because
these cash deposits are infrequent, the bank cannot obtain additional
authority to grant this account a special exemption.
During the same business day, two $15,000 cash deposits totalling
$30,000 are made into account number 1, a separate cash deposit of
$35,000 is made into account number 2 and a deposit of $9,000 in
currency is made into account number 3 (X's account for its wholesale
food business).
The bank must now determine how to aggregate and report all of these
transactions on a Form 4789, Currency Transaction Report, (``CTR'').
Must they aggregate all of the deposits made into account numbers 1, 2
and 3 and report them on a single CTR?
Law and Analysis
Section 103.22 of the Bank Secrecy Act (``BSA''), 31 CFR part 103,
requires a financial institution to treat multiple currency transactions
``as a single transaction if the financial institution has knowledge
that they are by or on behalf of any person and result in either cash-in
or cash-out totalling more than $10,000 during any one business day.''
This means that a financial institution must file a CTR if it knows that
multiple currency transactions involving two or more accounts have been
conducted by or on behalf of the same person and, those transactions,
when aggregated, exceed $10,000. Knowledge, in this context, means
knowledge on the part of a partner, director, officer or employee of the
institution or on the part of any existing computer or manual system at
the institution that permits it to aggregate transactions.
Thus, if the bank has knowledge of multiple transactions, the bank
should aggregate the transactions in the following manner.
First, the bank should separately review and total all cash-in and
cash-out transactions within each account. Cash-in transactions should
be aggregated with other cash-in transactions and cash-out transactions
should be aggregated with cash-out
transactions. Cash-in and cash-out transactions should not be aggregated
together or offset against each other.
Second, the bank should determine whether the account has an
exemption limit. If the account has an exemption limit, the bank should
determine whether it has been exceeded. If the exemption limit has not
been exceeded, the transactions for the exempted account should not be
aggregated with other transactions.
If the total transactions during the same business day for a
particular account exceed the exemption limit, the total of all of the
transactions for that account should be aggregated with the total amount
of the transactions for other accounts that exceed their respective
exemption limits, with any accounts without exemption limits, and with
transactions conducted by or on behalf of the same person that do not
involve accounts (e.g., purchases of bank checks with cash) of which the
bank has knowledge.
In the example discussed above, all of the transactions have been
conducted ``on behalf of'' X, as X owns the restaurants and the
wholesale food business. The total $30,000 deposit for account 1 exceeds
the $25,000 exemption limit for that account. The $35,000 deposit into
account number 2 is less than the $40,000 exemption limit for that
account. Finally, the $9,000 deposit into account number 3, does not by
itself constitute a reportable transaction.
Therefore, under the facts above, the bank should aggregate the
entire $30,000 deposit into account number 1 (not just the amount that
exceeds the exemption limit), with the $9,000 deposit into account
number 3, for a total of $39,000. The bank should not include the
$35,000 deposit into account number 2, as that deposit does not exceed
the exemption limit for that account. Accordingly, the bank should
complete and file a single CTR for $39,000.
If the bank does not have knowledge that multiple currency
transactions have been conducted in these accounts on the same business
day (e.g., because it does not have a system that aggregates among
accounts and the deposits were made by three different individuals at
different times) the bank should file one CTR for $30,000 for account
number 1, as the activity into that account exceeds its exemption limit.
Holding
When a customer has more than one account and a bank employee has
knowledge that multiple currency transaction have been conducted in the
accounts or the bank has an existing computer or manual system that
permits it to aggregate transactions for multiple accounts, the bank
should aggregate the transactions in the following manner.
First, the bank should aggregate for each account all cash-in or
cash-out transactions conducted during one business day. If the account
has an exemption limit, the bank should determine whether the exemption
limit of that account has been exceeded. If the exemption limit has not
been exceeded, the total of the transactions for that particular account
does not have to be aggregated with other transactions. If the total
transactions during the same business day for a particular account
exceed the exemption limit, however, the total of all of the
transactions for that account should be aggregated with any total from
other accounts that exceed their respective exemption limits, with any
accounts without exemption limits, and with any reportable transactions
conducted by or on behalf of the customer not involving accounts (e.g.,
purchases of bank checks or ``cash back'' transactions) of which the
bank has knowledge. The bank should then file a CTR for the aggregated
amount.
89-5 (December 21, 1989)
Issue
How does a financial institution fulfill the requirement that it
furnish information about the person on whose behalf a reportable
currency transaction is being conducted?
Facts
No. 1. Linda Scott has had an account relationship with the Bank for
15 years. Ms. Scott enters the bank and deposits $15,000 in cash into
her personal checking account. The bank knows that Ms. Scott is an
artist who on occasions exhibits and sells her art work and that her art
work currently is on exhibit at the local gallery. The bank further
knows that cash deposits in the amount of $15,000 are commensurate with
Ms. Scott's art sales.
No. 2. Dick Wallace has recently opened a personal account at the
Bank. Although the bank verified his identity when the account was
opened, the bank has no additional information about Mr. Wallace. Mr.
Wallace enters the bank with $18,000 in currency and asks that it be
wire transferred to a bank in a foreign country.
No. 3. Dorothy Green, a partner at a law firm, makes a $50,000 cash
deposit into the firm's trust account.\1\ The bank knows that this is a
trust account. The $50,000 represents cash received from three clients.
\1\ This type of account is sometimes called a trust account,
attorney account or special account. It is an account established by an
attorney into which commingled funds of clients may be deposited. It is
not necessarily a ``trust'' in the legal sense of the term.
No. 4. Carlos Gomez enters a Currency Dealer and asks to buy $12,000
in traveler's checks with cash.
No. 5. Gail Julian, a trusted employee of Q-mart, a large retail
chain, enters the bank three times during one business day and makes
three large cash deposits totalling $48,000 into Q-mart's account. The
Bank knows that Ms. Julian is responsible for making the deposits on
behalf of Q-mart. Q-mart has an exemption limit of $45,000.
Law and Analysis
Under Sec. 103.28 of the Bank Secrecy Act (``BSA'') regulations, 31
CFR part 103, a financial institution must report on a Currency
Transaction Report (``CTR'') the name and address of the individual
conducting the transaction, and the identity, account number, and the
social security or taxpayer identification number of any person on whose
behalf the transaction was conducted. See 31 U.S.C. 5313. ``A
participant acting for another person shall make the report as the agent
or bailee of the person and identify the person for whom the transaction
is being made.'' Identifying information about the person on whose
behalf the transaction is conducted must always be furnished if the
transaction is reportable under the BSA, regardless of whether the
transaction involves an account.
Because the BSA requires financial institutions to file complete and
accurate CTR's, it is the financial institution's responsibility to
ascertain the real party in interest. 31 U.S.C. 5313. One way that a
financial institution can obtain information about the identity of the
person on whose behalf the transaction is being conducted is to ask the
person conducting the transaction whether he is acting for himself or on
behalf of another person. Only if as a result of strong ``know your
customer'' or other internal control policies, the financial institution
is satisfied that its records contain information concerning the true
identity of the person on whose behalf the transaction is conducted, may
the financial institution rely on those records to complete the CTR.
No. 1. Linda Scott, an artist, is a known customer of the bank. The
bank is aware that she is exhibiting her work at a local gallery and
that cash deposits in the amount of $15,000 would not be unusual or
inconsistent with Ms. Scott's business practices. Therefore, if the bank
through its stringent ``know your customer'' policies is satisfied that
the money being deposited by Ms. Scott into her personal account is for
her benefit, the bank need not ask Ms. Scott whether she is acting on
behalf of someone else.
No. 2. Because Dick Wallace is a new customer of the bank and
because the bank has no additional information about him or his business
activity, the bank should ask Mr. Wallace whether he is acting on his
own behalf or on behalf of someone else. This is particularly true given
the nature of the transaction--a wire transfer with cash for an
individual to a foreign country.
No. 3. Dorothy Green's cash deposit of $50,000 into the law firm's
trust account clearly is being done on behalf of someone else. The bank
should ask Ms. Green to identify the clients on whose behalf the
transaction is being conducted. Because Ms. Green is acting both on
behalf of her employer and the clients, the names of the three clients
and the law firm should be included on the CTR filed by the bank.
No. 4. The currency dealer, having no account relationship with
Carlos Gomez, should ask Mr. Gomez if he is acting on behalf of someone
else.
No. 5. Gail Julian is known to the bank as a trusted employee of Q-
mart, who often deposits cash into Q-mart's account. If the bank,
through its strong ``know your customer'' policies is satisfied that Ms.
Julian makes these deposits on behalf of Q-mart, the bank need not ask
her if she is acting on behalf of someone other than Q-mart.
Holding
It is the responsibility of a financial institution to file complete
and accurate CTRs. This includes providing identifying information about
the person on whose behalf the transaction is conducted in Part II of
the CTR. One way that a financial institution can obtain information
about the true identity of the person on whose behalf the transaction is
being conducted is to ask the person conducting the transaction whether
he is acting for himself or on behalf of another person. Only if as a
result of strong ``know your customer'' or other internal control
policies, the financial institution is satisfied that its record contain
the necessary information concerning the true identity of the person on
whose behalf the transaction is being conducted, may the financial
institutions rely on those records in completing the CTR.
92-1 (November 16, 1992)
31 U.S.C. 5313--Reports on Domestic Coins and Currency Transactions
31 U.S.C. 5325--Identification Required to Purchase Certain Monetary
Instruments
31 CFR 103.28--Identification Required
31 CFR 103.29--Purchases of Bank Checks and Drafts, Cashier's Checks,
Money Orders and Traveler's Checks
Identification of elderly or disabled patrons conducting large
currency transactions. Financial institutions must file a form 4789,
Currency Transaction Report (CTR) on transactions in currency in excess
of $10,000, and must verify and record information about the identity of
the person(s) who conduct(s) the transaction in Part I of
the CTR. Financial institutions also must record on a chronological log
sales of, and verify the identity of individuals who purchase, certain
monetary instruments with currency in amounts between $3,000 and
$10,000, inclusive. Many financial institutions have asked Treasury how
they can meet the requirement to examine an identifying document that
contains the person's name and address when s/he does not possess such a
document (e.g., a driver's license). Financial institutions have
indicated that this question arises almost exclusively with their
elderly and/or disabled patrons. This Administrative Ruling answers
those inquiries.
Issue
How does a financial institution fulfill the requirement to verify
and record the name and address of an elderly or disabled individual who
conducts a currency transaction in excess of $10,000 or who purchases
certain monetary instruments with currency valued between $3,000 and
$10,000 when he/she does not possess a passport, alien identification
card or other official document, or other document that is normally
acceptable within the banking community as a means of identification
when cashing checks for nondepositors?
Holding
It is the responsibility of a financial institution to file complete
and accurate CTRs and to maintain complete and accurate monetary
instrument logs pursuant to 31 CFR Secs. 103.27(d) and 103.29 of the BSA
regulations. It is also the responsibility of a financial institution to
verify and to record the identity of individuals conducting reportable
currency transactions and/or cash purchases of certain monetary
instruments as required by BSA regulations Secs. 103.28 and 103.29. Only
if the financial institution is confident that an elderly or disabled
patron is who s/he says s/he is may it complete these transactions. A
financial institution shall use whatever information it has available,
in accordance with its established policies and procedures, to determine
its patron's identity. This includes review of its internal records for
any information on file, and asking for other forms of identification,
including a social security or medicare/medicaid card along with another
document which contains both the patron's name and address such as an
organizational membership card, voter registration card, utility bill or
real estate tax bill. These forms of identification shall also be
identified as acceptable in the bank's formal written policy and
operating procedures as identification for transactions involving the
elderly or the disabled. Once implemented, the financial institution
should permit no exception to its policy and procedures. In these cases,
the financial institution should record the word ``Elderly'' or
``Disabled'' on the CTR and/or chronological log and the method used to
identify the elderly, or disabled patron such as ``Social Security and
(organization) Membership Card only ID.''
Law and Analysis
Before concluding a transaction for which a Currency Transaction
Report is required pursuant to 31 CFR 103.22, a financial institution
must verify and record the name and address of the individual conducting
the transaction. 31 CFR 103.28. Verification of the individual's
identity must be made by examination of a document, other than a bank
signature card, that is normally acceptable within the banking community
as a means of identification when cashing checks for nondepositors
(e.g., a driver's license). A bank signature card may be relied upon
only if it was issued after documents establishing the identity of the
individual were examined and a notation of the method and specific
information regarding identification (e.g., state of issuance and
driver's license number) was made on the signature card. In each
instance, the specific identifying information noted above and used to
verify the identity of the individual must be recorded on the CTR. The
notation of ``known customer'' or ``bank signature card on file'' on the
CTR is prohibited. 31 CFR 103.28.
Before issuing or selling bank checks or drafts, cashier's checks,
traveler's checks or money orders to an individual(s), for currency
between $3,000 and $10,000, a financial institution must verify whether
the individual has a deposit account or verify the individual's
identity. 31 CFR 103.29. Verification may be made by examination of a
signature card or other account record at the financial institution if
the deposit accountholder's name and address were verified at the time
the account was opened, or at any subsequent time, and that information
was recorded on the signature card or record being examined.
Verification may also be made by examination of a document that
contains the name and address of the purchaser and which is normally
acceptable within the banking community as a means of identification
when cashing checks for nondepositors. In the case of a deposit
accountholder whose identity has not been previously verified, the
financial institution shall record the specific identifying information
on its chronological log (e.g. state of issuance and driver's license
number). In all situations, the financial institution must record all
the appropriate information required by Sec. 103.29(a)(1)(i) for deposit
account holders or 103.29(a)(2)(i) for nondeposit account holders.
Certain elderly or disabled patrons do not possess identification
documents that would normally be considered acceptable within
the banking community (e.g., driver's licenses, passports, or state-
issued identification cards). Accordingly, the procedure set forth below
should be followed to fulfill the identification verification
requirements of Secs. 103.28 and 103.29.
Financial institutions may accept as appropriate identification a
social security, medicare, medicaid or other insurance card presented
along with another document that contains both the name and address of
the patron (e.g. an organization membership or voter registration card,
utility or real estate tax bill). Such forms of identification shall be
specified in the bank's formal written policy and operating procedures
as acceptable identification for transactions involving elderly or
disabled patrons who do not possess identification documents normally
considered acceptable within the banking community for cashing checks
for nondepositors.
This procedure may only be applied if the following circumstances
exist. First, the financial institution must establish that the
identification the elderly or disabled patron has is limited to a social
security or medicare/medicaid card plus another document which contains
the patron's name and address. Second, the financial institution must
use whatever information it has available, or policies and procedures it
has in place, to determine the patron's identity. If the patron is a
deposit accountholder, the financial institution should review its
internal records to determine if there is information on file to verify
his/her identity. Only if the financial institution is confident that
the elderly or disabled patron is who s/he says s/he is, may the
transaction be concluded. Failure to identify an elderly or a disabled
customer's identity as required by 31 CFR Sec. 103.28 and as described
herein may result in the imposition of civil and or criminal penalties.
Finally, the financial institution shall establish a formal written
policy and implement operating procedures for processing reportable
currency transactions or recording cash sales of certain monetary
instruments to elderly or disabled patrons who do not have forms of
identification ordinarily considered ``acceptable.'' Once implemented,
the financial institution shall permit no exceptions to its policy and
procedures. In addition, financial institutions are encouraged to record
the elderly or disabled patron's identity and address as well as the
method of identification on a signature card or other record when it is
obtained and verified.
In completing a CTR, if all of the above conditions are satisfied,
the financial institution should enter the words ``Elderly'' or
``Disabled'' and the method used to verify the patron's identity, such
as ``Social Security and (organization) Membership Cards Only ID,'' in
Item 15a.
Similarly, when logging the cash purchase of a monetary
instrument(s), the financial institution shall enter on its
chronological log the words, ``Elderly'' or ``Disabled,'' and the method
used to verify such patron's identity.
Example
Jesse Fleming, a 75 year old retiree, has been saving $10 bills for
twenty years in order to help pay for his granddaughter's college
education. He enters the Trustworthy National Bank where he has no
account but his granddaughter has a savings account, and presents
$13,000 in $10 bills to the teller. He instructs the teller to deposit
$9,000 into his granddaughter's savings account, and requests a
cashier's check for $4,000 made payable to State University.
Because of poor eyesight, Mr. Fleming no longer drives and does not
possess a valid driver's license. When asked for identification by the
teller he presents a social security card and his retirement
organization membership card that contains his name and address.
Application of Law to Example
In this example, the Trustworthy National Bank must check to
determine if Mr. Fleming's social security and organizational membership
cards are acceptable forms of identification as defined in the bank's
policy and procedures. If so, and the bank is confident that Mr. Fleming
is who he says he is, it may complete the transaction. Because Mr.
Fleming conducted a transaction in currency which exceeded $10,000
(deposit of $9,000 and purchase of $4,000 monetary instrument), First
National Bank must complete a CTR. It should record information about
Mr. Fleming in Part I of the CTR and in Item 15a record the words
``Elderly--Social Security and (organization) Membership Cards Only
ID.'' The balance of the CTR must be appropriately completed as required
by Secs. 103.22 and 103.27(d). First National Bank must also record the
transaction in its monetary instrument sales log because it issued to
Mr. Fleming a cashier's check for $4,000 in currency. Mr. Fleming must
be listed as the purchaser and the bank should record on the log the
words ``Elderly--Social Security and (organization) Membership Cards
Only ID'' as the method used to verify his identity. In addition,
because Mr. Fleming is not a deposit accountholder at First National
Bank, the bank is required to record on the log all the information
required under Sec. 103.29(a)(2)(i) for cash purchases of monetary
instruments by nondeposit accountholders.
92-2 (November 16, 1992)
31 U.S.C. 5313--Reports on Domestic Coins and Currency Transactions
31 CFR 103.22--Reporting of Currency Transactions
31 CFR 103.28--Identification Required
Proper completion of the Currency Transaction Report (CTR), IRS Form
4789, when reporting multiple transactions. Financial institutions must
report transactions in currency that exceed $10,000 or an exempted
account's established exemption limit and provide certain information
including verified identifying information about the individual
conducting the transaction. Multiple currency transactions must be
treated as a single transaction, aggregated, and reported on a single
Form 4789, if the financial institution has knowledge that the
transactions are by or on behalf of any person and result in either cash
in or cash out totalling more than $10,000, or the exemption limit,
during any one business day. All CTRs must be fully and accurately
completed. Some or all of the individual transactions which comprise an
aggregated CTR are frequently below the $10,000 reporting or applicable
exemption threshold and, as such, are not reportable and financial
institutions do not gather the information required to complete a CTR.
Issue
How should a financial institution complete a CTR when multiple
transactions are aggregated and reported on a single form and all or
part of the information called for in the form may not be known?
Holding
Multiple transactions that total in excess of $10,000, or an
established exemption limit, when aggregated must be reported on a CTR
if the financial institution has knowledge that the transactions have
occurred. In many cases, the individual transactions being reported are
each under $10,000, or the exemption limit, and the institution was not
aware at the time of any one of the transactions that a CTR would be
required. Therefore, the identifying information on the person
conducting the transaction was not required to be obtained at the time
the transaction was conducted.
If after a reasonable effort to obtain the information required to
complete items 4 through 15 of the CTR, all or part of such information
is not available, the institution must check item 3d to indicate that
the information is not being provided because the report involves
multiple transactions for which complete information is not available.
The institution must, however, provide as much of the information as is
reasonably available.
All subsections of item 48 on the CTR must be completed to report
the number of transactions involved and the number of locations of the
financial institution and zip codes of those locations where the
transactions were conducted.
Law and Analysis
Sections 103.22(a)(1) and (c) of the Bank Secrecy Act (BSA)
regulations, 31 CFR part 103, require a financial institution to file a
CTR for each deposit, withdrawal, exchange of currency, or other payment
or transfer, by, through, or to the financial institution, which
involves a transaction in currency of more than $10,000 or the
established exemption limit for an exempt account. Multiple transactions
must be treated as a single transaction if the financial institution has
knowledge that they are by, or on behalf of, any person and result in
either cash in or cash out of the financial institution totalling more
than $10,000 or the exemption limit during any one business day.
Knowledge, in this context, means knowledge on the part of a partner,
director, officer or employee of the financial institution or on the
part of any existing automated or manual system at the financial
institution that permits it to aggregate transactions.
The purpose of item 3 on the CTR is to indicate why all or part of
the information required in items 4 through 15 is not being provided on
the form. If the reason information is missing is solely because the
transaction(s) occurred through an armored car service, a mail deposit
or shipment, or a night deposit or Automated Teller Machine (ATM), the
financial institution must check either box a, b, or c, as appropriate,
in item 3. CTR instructions state that item 3d is to be checked for
multiple transactions where none of the individual transactions exceeds
$10,000 or the exemption limit and all of the required information might
not be available.
As described in Example No. 5 below, there may be situations where
one transaction among several exceeds the applicable threshold. Item 3d
should be checked whenever multiple transactions are being reported and
all or part of the information necessary to complete items 4 through 15
is not available because at the time of any one of the individual
transactions, a CTR was not required and the financial institution did
not obtain the appropriate information.
When reporting multiple transactions, the financial institution must
complete as many of items 4 through 15 as possible. In the event the
institution learns that more than one person conducted the multiple
transactions being reported, it must check item 2 on the CTR and is
encouraged to make reasonable efforts to obtain and report any
appropriate information on each of the persons in items 4 through 15 on
the front and back of the CTR form, and if necessary, on additional
sheets of paper attached to the report.
The purpose of item 48 is to indicate that multiple transactions are
involved in the CTR being filed. Items 48 a, b, and c require
information about the number of transactions being reported and the
number of
bank branches and the zip code of each branch where the transactions
took place. If multiple transactions exceeding $10,000 or an account
exemption limit occur at the same time, the financial institution should
treat the transactions in a manner consistent with its internal
transaction posting procedures. For example, if a customer presents four
separate deposits, at the same time, totalling over $10,000, the
institution may report the transactions in item 48a to be one or four
separate transactions. If the transactions are posted as four separate
transactions the financial institution should enter the number 4 in item
48a and the number 1 in item 48b. If the transactions are posted as one
transaction the institution should enter the 1 in both 48a and 48b.
Reporting the transactions in this manner will guarantee the integrity
of the paper trail being created, that is, the number of transactions
reported on the CTR will be the same as the number of transactions
showing in the institution's records.
These situations should be differentiated from those cases where
separate transactions occur at different times during the same business
day, and which, when aggregated, exceed $10,000 or the exemption limit.
For instance, if the same or another individual conducts two of the same
type of transactions at different times during the same business day at
two different branches of the financial institution on behalf of the
same person, and the institution has knowledge that the transactions
occurred and exceed $10,000 or the exemption limit, then the financial
institution must enter the number 2 in items 48a and 48b.
Examples and Application of Law to Examples
Example No. 1
Dorothy Fishback presents a teller with three cash deposits to the
same account, at the same time, in amounts of $5,000, $6,000, and $8,500
requesting that the deposits be posted to the account separately. It is
the bank's procedure to post the transactions separately. A CTR is
completed while the customer is at the teller window.
Application of Law to Example No. 1
A CTR is completed based upon the information obtained at the time
Dorothy Fishback presents the multiple transactions. Item 3d would not
be checked on the CTR because all of the information in items 4 through
15 is being provided contemporaneously with the transaction. As it is
the bank's procedure to post the transactions separately, the number of
transactions reported in item 48a would be 3 and the number of branches
reported in item 48b would be 1. The zip code for the location where the
transactions were conducted would be entered in item 48c.
Example No. 2
Andrew Weiner makes a $7,000 cash deposit to his account at ABC
Federal Savings Bank. Later the same day, Mr. Weiner returns to the same
teller and deposits $5,000 in cash to a different account. At the time
Mr. Weiner makes the second deposit, the teller realizes that the two
deposits exceed $10,000 and prepares a CTR obtaining all of the
necessary identifying information directly from Mr. Weiner.
Application of Law to Example No. 2
Even though the two transactions were conducted at different times
during the same business day, Mr. Weiner conducted both transactions at
the same place and the appropriate identifying information was obtained
by the teller at the time of the second transaction. Item 3d would not
be checked on the CTR. The number of transactions reported in item 48a
must be 2 and the number of branches reported in item 48b would be 1.
The zip code for the location where the transactions took place would be
entered in item 48c.
Example No. 3
Internal auditor Mike Pelzer is reviewing the daily cash
transactions report for People's Bank and notices that five cash
deposits were made the previous day to account 12345. The total
of the deposits is $25,000 and they were made at three different offices
of the bank. Mike researches the account data base and finds that the
account belongs to a department store and that the account is exempted
for deposits up to $17,000 per day. Each of the five transactions was
under $17,000.
Application of Law to Example No. 3
Having reviewed the report of aggregated transactions, Mike Pelzer
has knowledge that transactions exceeding the account exemption limit
have occurred during a single business day. A CTR must be filed.
People's Bank is encouraged to make a reasonable effort to provide the
information for items 4 through 15 on the CTR. Such efforts could
include a search of the institution's records or a phone call to the
department store to identify the persons that conducted the
transactions. If all of the information is not contained in the
institution's records or otherwise obtained, item 3d must be checked.
The number of transactions reported in item 48a must be 5 and the number
of branches reported in 48b would be 3. The zip codes for the three
locations where the transactions occurred must be entered in item 48c.
Example No. 4
Mrs. Saunders makes a cash withdrawal, for $4,000, from a joint
savings account she owns with her husband. That day her husband, Mr.
Saunders, withdraws $7,000 cash using the same teller. Realizing that
the withdrawals exceed $10,000, the teller obtains identifying
information on Mr. Saunders required to complete a CTR.
Application of Law to Example No. 4
In this case, item 2 on the CTR must be checked because the teller
knows that more than one person conducted the transactions. Information
on Mr. Saunders would appear in Part I and the bank is encouraged to ask
him for, or to check its records for the required identifying
information on Mrs. Saunders. If after taking reasonable efforts to
locate the desired information, all of the required information is not
found on file in the institution's records or is not otherwise obtained,
box 3d must be checked to indicate that all information is not being
provided because multiple transactions are being reported. Whatever
information on Mrs. Saunders is contained in the records of the
institution must be reported in the continuation of Part I on the back
of Form 4789. The number of transactions reported in item 48a must be 2
and the number of branches reported in item 48b would be 1. The zip code
for the branch where the transactions took place would be entered in
item 48c.
Example No. 5
On another day, Mrs. Saunders makes a deposit of $3,000 cash and no
information required for Part I of the CTR is requested of her. She is
followed later the same day by her husband, Mr. Saunders, who deposits
$12,000 in currency and who provides all data required to complete Part
I for himself.
Application of Law to Example No. 5
Item 2 on the CTR must be checked because the teller knows that more
than one person conducted the transactions. Information on Mr. Saunders
would appear in Part I and the bank is encouraged to ask him for, or to
check its records for the required identifying information on Mrs.
Saunders. If after taking reasonable efforts to locate the desired
information, all of the required information is not found on file in the
institution's records or is not otherwise obtained, box 3d must be
checked to indicate that all information is not being provided because
multiple transactions are being reported. Whatever information on Mrs.
Saunders is contained in the records of the institution must be reported
in the continuation of Part I on the back of Form 4789. The number of
transactions reported in item 48a must be 2 and the number of branches
reported in item 48b would be 1. The zip code for the branch where the
transactions took place would be entered in item 48c.
Example No. 6
A review of First Federal Bank's daily cash transactions report for
a given day indicates several cash deposits to a single account totaling
more than $10,000. Two separate deposits were made in the night
depository at the institution's main office, and two deposits were
conducted at the teller windows of two other branch locations. Each
deposit was under $10,000.
Application of Law to Example No. 6
Item 3c should be checked to indicate that identifying information
is not provided because transactions were received through the night
deposit box. If the tellers involved with the two face to face deposits
remember who conducted the transactions, institution records can be
checked for identifying information. If the records contain some of the
information required by items 4 through 15, that information must be
provided, and item 3d must be checked to indicate that some information
is missing because multiple transactions are being reported and the
information was not obtained at the time the transactions were
conducted. Item 48a must indicate 4 transactions and item 48b must
indicate 3 locations. The zip code of those locations would be provided
in item 48c.
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