More Guidance on Exemptions

FinCEN has released guidance on the interim exemption procedures in the form of Q&As. The document clarifies that the interim procedures are in effect, and took effect upon publication. FinCEN has not yet reached a final decision on the rule. That will depend on the comments it receives.

FinCEN also clarified that the new procedure for exemptions is optional. However, if a bank chooses to continue under the old exemption list procedure, the bank must comply with all of those requirements and risks being subject to those penalties.

The document also explains that the exemption procedure is exclusively for the purpose of determining whether to file currency transaction reports on a customer. The procedure does not affect other BSA requirements. FinCEN specifically points out that the exemption procedure does not affect compliance with suspicious activity reporting requirements. Any suspicious activity by a customer on the exempt list must still be reported using the SAR.

Copyright © 1996 Compliance Action. Originally appeared in Compliance Action, Vol. 1, No. 12, 7/96