Skip to content
BOL Conferences
Thread Options
#1472205 - 11/24/10 02:30 PM Phase II should be a Phase I
GrannieTwo Offline
100 Club
Joined: Nov 2010
Posts: 180
Central IL
How do we correct a customer that is a Phase I but for years has been reported as a Phase II exemption? Do we revoke the Phase II exemption? Thank you and Happy Thanksgiving!
_________________________
For when I am weak, then I am strong. 2Cor 12:10

Return to Top
BSA/AML/CIP/OFAC Forum
#1472226 - 11/24/10 02:47 PM Re: Phase II should be a Phase I GrannieTwo
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
If you've identified a bona fide Phase I exempt customer, determine whether a Form 110 needs to be filed to declare that exemption to FinCEN. If it's a Reserve Bank, a bank, government unit or agency, or an entity exercising government powers (103.22(d)(2)(i, ii or iii), no Form 110 is needed, just note the change in status to Phase I in your records and start treating the customer as a Phase I exempt customer.

If the customer is a listed company under 103.22(d)(2)(iv), file the Form 110, note the change in status in your files, and proceed to treat the company as Phase 1 exempt.

There is no need to revoke the old Phase II exemption.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#1472790 - 11/26/10 01:34 PM Re: Phase II should be a Phase I John Burnett
GrannieTwo Offline
100 Club
Joined: Nov 2010
Posts: 180
Central IL
Thanks, John. Happy Holidays!!!
_________________________
For when I am weak, then I am strong. 2Cor 12:10

Return to Top

Moderator:  Andy_Z