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#1317762 - 01/05/10 04:59 PM When to Cut Off Exemption
Compliance Lover Offline
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Posts: 555
I have an exempt customer that no longer has many large cash deposits. In 2009 they only had one over $10,000 and that was early in the year. I figured I would take them off my exempt list for 2010, but I usually "review" these in February. I had almost already done it, but then read to just do it at your annual review time. Well, now they do have one over $10,000 (multiple transactions) that occurred in 2010. Should I go ahead and file a CTR on this one?

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#1317774 - 01/05/10 05:05 PM Re: When to Cut Off Exemption Compliance Lover
Kelsey D Offline
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Joined: Aug 2006
Posts: 516
Ohio
If this is a Phase 2 exemption and they no longer have five or more reportable transactions per year, you need to start filing CTR's again. I wouldn't wait until February to take them off your list if you already know they are no longer eligible.
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#1317776 - 01/05/10 05:07 PM Re: When to Cut Off Exemption Kelsey D
Compliance Lover Offline
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Ok, that's what I thought. Thanks.

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#1317846 - 01/05/10 05:39 PM Re: When to Cut Off Exemption Kelsey D
Doug Hendrickson Offline
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Doug Hendrickson
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I know I should know this, but is the 'reportable transactions per year' based on a calendar year basis (e.g., 2009, 2010) or a "rolling-year" basis(e.g., last 12 months)?
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#1317927 - 01/05/10 06:20 PM Re: When to Cut Off Exemption Doug Hendrickson
Elwood P. Dowd Offline
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Next to Harvey
Ahh, that's a little gem that future hunters will only be able to find if they read the supplementary information that accompanied the revised regulation in the Federal Register. Actually, it's not even there. It's in a footnote:

38 For the purposes of this guidance, a year is defined as any consecutive twelve month period.

Lousy place to put stuff people might actually need to know.
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#1318308 - 01/05/10 09:47 PM Re: When to Cut Off Exemption Elwood P. Dowd
John Burnett Offline
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Cape Cod
It's a problem with lots of these important regulations, even those with official staff commentaries or interpretations. The material accompanying the actual CFR change has significance, yet it's not posted with the regulation or commentary. The Reg DD requirement that overdraft fees have a label separate from fees for the return of items unpaid is an example. The only place it's stated plainly is in the FR document from 2005.
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#1319794 - 01/07/10 04:58 PM Re: When to Cut Off Exemption John Burnett
river girl Offline
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Joined: Nov 2004
Posts: 1,005
I also have a member that no longer qualifies for exemption status due to only 1 transaction over $10,000 in 2009.
Do I have to fill out the Form 110 and mark box D: Exemption revoked and mail it to FinCen?

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#1319822 - 01/07/10 05:13 PM Re: When to Cut Off Exemption river girl
Kelsey D Offline
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Joined: Aug 2006
Posts: 516
Ohio
Originally Posted By: river girl
Do I have to fill out the Form 110 and mark box D: Exemption revoked and mail it to FinCen?


Nope. You can just take them off your list and start filing CTR's again.
_________________________
Don't make me say, "I told you so!" Sincerely, your friendly Compliance Officer.

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