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#1224283 - 07/29/09 07:51 PM This Confused Me...
Tesla Offline
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Q: Today, an employee of ABC Inc. made a deposit of $6,000 in currency to the corporation's account. A different person made a deposit of $11,000 in currency to XYZ Limited Partners. We understand a CTR is necessary, but our confusion comes from the fact that we know one of the general partners in XYZ is also a major shareholder in ABC Inc. Does that knowledge require us to aggregate these transactions and file a CTR for $17,000?

A: No, the CTR filing regulations require your institution to aggregate transactions that are "by" or "on behalf of" the same person. ABC Inc. and XYZ Limited are two different persons under the law. The two transactions were conducted by different people and they are not on behalf of the same person; it would be wrong to aggregate the amounts. File the CTR for $11,000.

An employee comes in with $50,000 cash and deposits it into three separate entity accounts. Wouldn't I file a CTR with the Transactor being the employee and the benefactors being the three separate entities?
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#1224289 - 07/29/09 07:55 PM Re: This Confused Me... Tesla
Big Dog Offline
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Yes, based on the fact that One Transactor did all 3 transactions. This would fall under the "by" option in the Answer section you stated.
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#1224293 - 07/29/09 07:57 PM Re: This Confused Me... Tesla
WonderWoman Offline
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Originally Posted By: SkiDoo
the CTR filing regulations require your institution to aggregate transactions that are "by" or "on behalf of" the same person.


In your situation the transactions were conducted "by" the same person over the $10K threshold. Doesn't matter where the money went, same person brought it in. Therefore a CTR would be required with the Transactor being the employee and the benefactors being the three separate entities.

The original Q&A you posted was two seperate individuals depositing into two different entities. In which case I believe: http://www.fincen.gov/news_room/rp/rulings/html/fincenruling2001-2.html is the correct way to handle that situation.
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#1224294 - 07/29/09 07:57 PM Re: This Confused Me... Tesla
Kelsey D Offline
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Yes. In your scenario, one person is doing all three transactions. Even though three different entities are benefitting, the transactions were conducted "by" one person, triggering the reporting requirement.

In the Q&A sample you gave before your question, the two different transactions are benefitting two different entities and are conducted by two different people. These transactions would not be aggregated because they were not conducted "by" or "on behalf" of one person.
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#1224303 - 07/29/09 08:08 PM Re: This Confused Me... Kelsey D
Tesla Offline
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So, would it be impossible to have Section B blank and multiple transactions or conducted on own behalf checked? For example, transactor is a d/b/a who owns two corporations. She brings in her deposits all combined. We file CTR with her name in Part 1, Section A, check multiple transactions and conducted on own behalf and then put the corporation's names on the Multiple Persons page.

Have I been doing this wrong?
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#1224314 - 07/29/09 08:18 PM Re: This Confused Me... Tesla
Elwood P. Dowd Offline
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Quote:
...our confusion comes from the fact that we know one of the general partners in XYZ is also a major shareholder in ABC Inc. Does that knowledge require us to aggregate these transactions and file a CTR for $17,000?


The example is intended to illustrate that common ownership of different entities does not require aggregation. Each entity is a separate "person."

Quote:
Have I been doing this wrong?


No. You are aggregating because the transactions were carried out by the same person. I do not understand how you are completing the form, but you should have two Section A's on the corporations and one Section B on the individual conducting the transactions.
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#1224332 - 07/29/09 08:38 PM Re: This Confused Me... Elwood P. Dowd
Tesla Offline
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Thanks! Maybe I read the Q&A too fast or maybe my brain is just fried from training on Reg Z/MDIA all day.

Thanks for setting me straight everyone!
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#1226156 - 08/03/09 01:35 PM Re: This Confused Me... Tesla
John Burnett Offline
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It's never a good idea to wrestle with MDIA and CTR filings during the same business day.

If you deal with MDIA on Monday, you should postpone any dealings with CTRs until the second business day (precise rule) following the banking day of MDIA involvement.

crazy wink laugh
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#1226160 - 08/03/09 01:40 PM Re: This Confused Me... John Burnett
Elwood P. Dowd Offline
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...nor should you operate heavy machinery. Call your doctor if you cannot keep your acronyms straight for more than four hours.
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#1226295 - 08/03/09 03:59 PM Re: This Confused Me... Elwood P. Dowd
rlcarey Online
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Ken,

You are too funny sometimes!!!! Here all this time I thought you had to call the the doctor if you kept things straight for more than four hours wink
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#1226298 - 08/03/09 04:01 PM Re: This Confused Me... Elwood P. Dowd
rlcarey Online
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Ken,

You are soo funny sometimes!!!! Here all this time I thought you had to call the the doctor if you kept things staight for more than four hours wink
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#1227467 - 08/05/09 02:34 PM Re: This Confused Me... rlcarey
ComplianceGurl, CRCM Offline
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Thanks all! This post definitely made my day!!

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