I have two different types of businesses owned by the same individuals. Two different locations. One is a gas station/convenience store and the other is a grocery store. The owner brings in deposits for both locations. I have been told that I cannot exempt these businesses due to the fact that they are not the same type of business. Is this correct? If so where can I find documentation to support this?

I have never heard anything like you describe. IMO, unless the majority of their gross revenue is derived from conducting ineligible activities as defined in the BSA examination manual, then you can exempt them.

Are they both running under the same TIN?

The "businesses," corporations, partnerships, LLC's?

Trying to make sense out of what you understood someone to say, you cannot set up an exemption that incorporates both of them if they are two different legal entities.

They have their own seperate EIN's however I was told that since they are owned by the same individuals and those individuals bring in the deposits for both entities at the same time. I have to tie them together for CTR reporting and cannot exempt them. The people bringing in the deposits is what ties these two businesses together otherwise I could look at them seperately

If they are different legal entities and they are operated separately, the fact that they have common ownership is just not relevant.

Look at them individually and see if they qualfy for exemption. However, as I understand you, the only reason a CTR is necessary is because the deposits are made "by the same person;" the companies not cross the filing threshold individually. If that's correct, there's nothing you can do except file CTRs.

Are they commingling funds from two seperate entities in the same account/s? If so, they are going to have some serious troubles.

Thank you Ken, the deposits are being made "by the same person;" and that is why we are filing them together. However sometimes they do cross the filing threshold individually. Does that make a difference? They are not commingling funds.

Here's the FinCEN guidance on the revised exemption process. Look at them individually and see if they qualify for exemption. If you can exempt one of them its deposits will not need to be aggregated with those of the other company even if they are deposited by the same person.

Thank you! That was exactly what I was looking for.

See also:

http://www.fincen.gov/news_room/rp/rulings/pdf/fincenruling2001-2.pdf