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#158752 - 02/10/04 06:28 PM monetary instrument log
Anonymous
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We are required to maintain a monetary instrument log for transaction between $3,000 and $10,000. Is there any provision that allows for exempting customers in this range or is the exemption only for eligible customers whose transactions are greater than $10,000?

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#158753 - 02/10/04 06:35 PM Re: monetary instrument log
Retread Offline
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Retread
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Southeast
The sale of monetary instruments for cash cannot be exempted. You can only exempt other eligible customers who maintain deposit accounts and whose cash transactions frequently exceed $10,000. FinCEN defines "frequently" as at least 8 times per year.
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#158754 - 02/10/04 07:34 PM Re: monetary instrument log
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,796
Cape Cod
Phase I exempt persons are exempted from all CTR filings. But Phase II exempt persons are only exempted from CTR filings for large cash transactions in their exemptible accounts (transaction accounts and MMDAs used in connection with the business). Cash purchases of monetary instruments (unless conducted through the exemptible accounts) would not be exempt even if over $10,000, nor would cash loan payments or currency exchanges if over $10,000.
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#158755 - 02/11/04 12:06 PM Re: monetary instrument log
Anonymous
Unregistered

I agree with all of the above, but since the original question was about monetary instrument logs, the answer is that you cannot exempt anyone from the requirements to record information concerning the sale of monetary instruments for cash between $3,000 and $10,000. It makes no difference whether the customer purchases the instruments directly or deposits the money into an account that is subsequently debited to purchase the instruments.

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#158756 - 02/11/04 12:30 PM Re: monetary instrument log
Elwood P. Dowd Offline
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Elwood P. Dowd
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Next to Harvey
The regulations require that you keep the information; the requirement that it be kept on a log was pointedly deleted several years ago. As John and Retread indicate there are no exemptions. Monetary instrument sales involving more than $10,000 in cash generate a reporting rather than a record retention requirement; those transactions are not "exempt," they are just not covered.
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#158757 - 02/11/04 08:35 PM Re: monetary instrument log
MackenzieS Offline
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MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
It is true that they did away with this "monetary log" requirement, however the requirement to retain the information still exists. Therefore most banks continued to use the same methods to document the information, i.e. the "monetary logs". Noone is exempt from the requirement to obtain and retain the information.

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#158758 - 02/14/04 12:27 AM Re: monetary instrument log
Strategery Offline
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Strategery
Joined: Jan 2004
Posts: 125
Snow Country
If we have a long-time customer purchase a Cashier's Check with $3000 - 10,000 cash, can we state "known customer" or "signature card on file" for verification of purchaser requirement on our Log?

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#158759 - 02/14/04 02:00 PM Re: monetary instrument log
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,796
Cape Cod
You don't need to have a log but you do have to be able to reconstruct and retrieve information as if you do have one. As far as ID info goes, for an established deposit customer, if you have ID info on file either from your CIP efforts or from earlier ID records all you need to record is the account number, since that will lead to the ID info.

If however, your ID info is deficient, this is an opportunity to record it, keep it, and move on.
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#158760 - 02/23/04 12:09 PM Re: monetary instrument log
JMB Offline
Member
JMB
Joined: Mar 2002
Posts: 59
Michigan
...and don't forget about FinCEN's ruling that the tracking is still required even if the customer deposits the cash into their account and then purchases the instrument of issue with a withdrawal.

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#158761 - 02/23/04 05:35 PM Re: monetary instrument log
Rae Offline
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Rae
Joined: Nov 2003
Posts: 192
Quote:

...and don't forget about FinCEN's ruling that the tracking is still required even if the customer deposits the cash into their account and then purchases the instrument of issue with a withdrawal.


Please give me more clarification on this ruling from FinCen. This is new to me and I want to make sure that I understand exactly what is expected. Is there another thread that I need to read or a site that I should visit. Any help will be greatly appreciated.

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#158762 - 02/23/04 05:46 PM Re: monetary instrument log
Retread Offline
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Retread
Joined: Oct 2003
Posts: 2,548
Southeast
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Politicians are like diapers. They need to be changed often and for the same reason.

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#158763 - 02/23/04 06:04 PM Re: monetary instrument log
Rae Offline
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Rae
Joined: Nov 2003
Posts: 192
Thank you so much. The site was very easy to understand and now I have some training to do.

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