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#1149734 - 03/23/09 05:17 PM CTR Exemption clarification
DorothyC Offline
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Joined: Apr 2003
Posts: 23
With the new exemption rules, as we are no longer required to submit a DOEP form for Phase I entities and the form needed to be filed within 30 days after the first transaction in currency that the bank wished to exempt, do we still have to file the initial CTR for a new qualified exemption? OR is it is truly automatically exempt?

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#1150065 - 03/23/09 10:43 PM Re: CTR Exemption clarification DorothyC
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Joined: Feb 2008
Posts: 219
It depends on whether the customer is (depository institution, state, local, Fed government) OR a (publicly traded company).

Under the final rule, institutions may exempt Phase I customers who are depository institutions; federal, state, or local governments; or entities exercising government authority without filing a FinCEN Form 110, Designation of Exempt Person. In addition, the annual review requirement for Phase I exempted customers has been removed.

However, FinCEN encourages institutions to take the same steps to ensure the customer’s initial eligibility and to document the basis of their conclusions. This documentation may be included as a notation in other BSA documentation the institution retains, such as the customer identification program (CIP).

The requirements for listed public companies and their subsidiaries have not changed. A one-time designation of exemption must still be filed and an annual review must be performed and documented.

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