Skip to content
BOL Conferences
Learn More - Click Here!

Thread Options
#1229102 - 08/07/09 01:58 PM CTR Exemptions
newbietoo Offline
100 Club
Joined: Aug 2009
Posts: 201
Hello,

I just recently changed positions in the bank and now work in the Compliance area, which is all new to me. My main responsiblility is BSA related items. I have read so much information, but unable to find definitive answers to a couple questions on CTR exemptions.

1. The rules state that the customer must maintain a transaction account for a certain time period (used to be 12 months). My question is: Are there specific types of accounts that are considered 'transaction' accounts, i.e. can it be a Savings account?

2. We have a customer that is a local ABC Board. Would they fall under a Phase I exemption?

Thank you for any assistance.

Return to Top
#1229157 - 08/07/09 02:42 PM Re: CTR Exemptions newbietoo
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
1. Maybe: The term "transaction account" means a deposit or account on which the depositor or account holder is permitted to make withdrawals by negotiable or transferable instrument, payment orders of withdrawal, telephone transfers, or other similar items for the purpose of making payments or transfers to third persons or others. Such term includes demand deposits, negotiable order of withdrawal accounts, savings deposits subject to automatic transfers, and share draft accounts.

2. What is an "ABC Board"?
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1229289 - 08/07/09 03:56 PM Re: CTR Exemptions rlcarey
newbietoo Offline
100 Club
Joined: Aug 2009
Posts: 201
Thanks!

An ABC Board has the authority and duty to operate one retail ABC store (liquor). The board consists of a chairman and two to six board members that are appointed by the city, town or county governing authority. The board retains authority to set policy and adopt rules in conformity with ABC Laws and Commission Rules.

Return to Top
#1229318 - 08/07/09 04:07 PM Re: CTR Exemptions newbietoo
Lestie G Offline

Power Poster
Joined: May 2002
Posts: 3,608
Near the Land of Enchantment
What does ABC stand for? Is this a government entity, then?
_________________________
Opinions my own.

Return to Top
#1229327 - 08/07/09 04:10 PM Re: CTR Exemptions Lestie G
Rocky P Online
Power Poster
Joined: Jun 2003
Posts: 7,650
Florida
Usually alcoholic beverage control
Last edited by Southern Banker; 08/07/09 07:35 PM. Reason: correct stupid spelling mistake
_________________________
Integrity. With it, nothing else matters. Without it, nothing else matters.

Return to Top
#1229525 - 08/07/09 06:38 PM Re: CTR Exemptions Rocky P
newbietoo Offline
100 Club
Joined: Aug 2009
Posts: 201
Yes, ABC is 'Alcoholic Beverage Control' and I'm trying to get that definitive answer as to whether they are a government entity and thus could be exempt under Phase I.

I appreciate all the responses!

Return to Top
#1229786 - 08/07/09 08:38 PM Re: CTR Exemptions newbietoo
newbietoo Offline
100 Club
Joined: Aug 2009
Posts: 201
Here is our dilemma, we have an exempt customer that has a DDA and a Savings account. Both accts have large cash activity. Can the Savings account transactions be included in the exemption? Or is the exemption limited to certain types of accounts?

Return to Top
#1229801 - 08/07/09 08:46 PM Re: CTR Exemptions newbietoo
Kelsey D Offline
Platinum Poster
Joined: Aug 2006
Posts: 516
Ohio
Yes, the savings account can be exempted as well.
_________________________
Don't make me say, "I told you so!" Sincerely, your friendly Compliance Officer.

Return to Top
#1229979 - 08/08/09 01:12 PM Re: CTR Exemptions Kelsey D
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
They have to have a transaction account to be exempted, but then all deposits and withdrawals from deposit accounts are exempt. On Phase II customer, what is not exempt are currency exchanges, the cashing of third party checks, etc, that are not documented as a deposit or withdrawal from one of their accounts.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1230420 - 08/10/09 08:20 PM Re: CTR Exemptions rlcarey
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Phase I exemptions can apply even if the exempt person does not have any account with your bank (103.22(d)(2)(i) - (v)), and extend to all currency transactions of those exempt persons. You can exempt, for example, a listed company in whose grocery stores you maintain branch offices, to cover the stores' purchases of cashier's checks from you in reportable amounts, even if the stores don't bank with you. Or a law enforcement organization that needs to conduct cash transactions, under the government entity exemption, even if it doesn't bank with you. [The exemption does not, however extend to the recordkeeping requirements relating to cash purchases of monetary instruments.]

Phase II exemptions under 103.22(d)(2)(vi) or (vii) only apply to transactions in exemptible accounts [" ...To the extent of its domestic operations and only with respect to transactions conducted through its exemptible accounts ... "], and are only available to customers who maintain a transaction account with you, and meet certain other requirements.

The exemptible accounts include transaction accounts and money market deposit accounts maintained in connection with a commercial enterprise.
Last edited by John Burnett; 08/10/09 08:28 PM.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#1230422 - 08/10/09 08:23 PM Re: CTR Exemptions Kelsey D
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
I don't believe that a phase II exemption will extend to cash transactions in the customer's savings account unless the savings account is one of the types that Randy enumerates. The cash transactions should take place in the transaction account. Transfers then to the savings account would get the money there.
Last edited by John Burnett; 08/10/09 08:26 PM.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#1230609 - 08/11/09 11:39 AM Re: CTR Exemptions newbietoo
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Quote:
An ABC Board has the authority and duty to operate one retail ABC store (liquor). The board consists of a chairman and two to six board members that are appointed by the city, town or county governing authority. The board retains authority to set policy and adopt rules in conformity with ABC Laws and Commission Rules.


It certainly sounds like a government entity to me, but this is a creature unique to your state. If you contact the state and they confirm that it is, document your research. After you have reached your own conclusions, it might be prudent to also discuss it with the EIC from your last exam because he or she probably already has an opinion on this point regardless of whether the research was done.

If it's a government entity the types of accounts they do or do not have is not relevant. They simply meet the definition of an exempt person and are not subject to CTR filing. It is not necessary for you to file a DOEP form on a government entity.
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#1232187 - 08/13/09 04:39 PM Re: CTR Exemptions Elwood P. Dowd
newbietoo Offline
100 Club
Joined: Aug 2009
Posts: 201
Thanks to all of you! All the responses have trully helped me out. I appreciate it!

Return to Top

Moderator:  Lestie G