BSA portion of FDIC S&S started today....quick question and need guidance. Is a publically traded pay day loan company eligible for Phase I exemption?

Thanks!

Yes - a publicly traded company under a Phase I exemption is not limited to eligible business activities.

Thanks for the reply! So, to put another way, a publically traded check casher or money transmitter is automatically eligible for a Phase I exemption due to the fact that they are publically traded? Phase II rules for non-listed businesses and the 50% gross revenue rule for ineligible activity DO NOT apply? We are being questioned on one of our exempted customers who doesn't even meet the definition of a non-bank financial institution (aka MSB). Everything that I read indicates that since they are a listed company they are automatically eligible for a Phase I exemption.

Additional clarification would be helpful.

Thanks!

I don't know how much clearer the regulation could be:

§ 1020.315 Transactions of exempt persons.

(b) Exempt person. For purposes of this section, an exempt person is:

(4) Any entity, other than a bank, whose common stock or analogous equity interests are listed on the New York Stock Exchange or the American Stock Exchange or whose common stock or analogous equity interests have been designated as a NASDAQ National Market Security listed on the NASDAQ Stock Market (except stock or interests listed under the separate “NASDAQ Capital Markets Companies” heading), provided that, for purposes of this paragraph (b)(4), a person that is a financial institution, other than a bank, is an exempt person only to the extent of its domestic operations;

My thoughts exactly! Thanks Randy. They have backed off.