During a recent internal audt, we were cited as being in violation of the reg because there were 5 CTRs that were filed, but had errors. These errors were: Wrong amounts reported, first name spelled incorrectly, incorrect physical address and wrong branch of transaction.

I think I'm in violation if I fail to file, and think these types of errors are technical exceptions, but am curious what others think. All comments most welcome!! Thanks in advance!

5 out of how many? This may be a control issue and someone is not checking their work. Examiners don't like sloppy forms sent to them. We have all had some snafus. We sometimes have had to correct addresses, name spellings, TINS where numbers were inadvertently reversed, amounts may have been $100. off and we sent in a correction as soon as discovered. make sure you correct these with an amendment to the CTRs. More importantly, find out why this is happening. If its 5 out of 100 per month that is one thing. if its 5 out of 20, you have the type of problem that will crank up their interests. Fix it and audit should do another look through in a few months so they can state the problem has been dealt with.

The FFIEC manual testing section refers to the accuracy of the the CTR forms and MIS that may feed into form completion. I think these would be violations and require an amended CTR. The CTRs filed with incorrect amounts are clear violations in my mind and the other discrepancies seem equal to that.

From the manual:
On the basis of a risk assessment, prior examination reports, and a review of the bank’s audit findings, select a sample of filed CTRs (hard copy or from computer-generated filings) to determine whether:

**CTRs are filed accurately and completely within 15 calendar days after the date of the transaction (25 days if filed magnetically or electronically).
**The bank’s independent testing confirms the integrity and accuracy of the management information systems (MIS) used for aggregating currency transactions. If not, the examiner should confirm the integrity and accuracy of the MIS. The examiner’s review should confirm that tellers do not have the capability to override currency aggregation systems.

I have really heard of a technial exception on a CTR. It is either completed accurately or it is not. You catching the errors and correcting them puts you in the strongest position to argue that it is not a pattern but a mistake that was corrected.

I used to believe that all bank's on occasion make CTR mistakes, and that was not a huge deal, but if the examiner believes that your errors are excessive, then whether they try to cite you on that situation, or decide that your training is inadequate, you have a problem.

I've heard the term "technical exception" used before; it was one of my former bosses' favorite modifiers for examination criticisms! However, I have never heard it in connection with BSA/AML compliance. A search of the BSA/AML Examination Handbook using that term does not generate any hits.

The bank's obligation is to file the form completely, correctly, and in a timely fashion. As suggested, the error rate is critical; i.e. 5 out of how many?