Thread Options
#1637742 - 12/09/11 11:56 PM Exemption eligible?
fmb Offline
Member
Joined: Sep 2003
Posts: 97
When can a bank exempt a customer from CTR filings? On the same day as the fifth transaction (thus not completing a CTR for that transaction) or do we need to wait until after the 5th transaction? Thanks.

Return to Top
BSA/AML/CIP/OFAC Forum
#1637757 - 12/10/11 03:12 AM Re: Exemption eligible? fmb
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 78,631
Galveston, TX
The day of the fifth transaction you can exempt them and then all transactions within 30 days prior to exemption date are exempt.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1637763 - 12/10/11 02:03 PM Re: Exemption eligible? fmb
fmb Offline
Member
Joined: Sep 2003
Posts: 97
That was my interpretation as well only our auditors are saying that I need to complete the CTR for that fifth transaction because the customer wasn't officially exempt yet.

Return to Top
#1638425 - 12/13/11 06:25 PM Re: Exemption eligible? fmb
banker1976 Offline
Gold Star
Joined: Nov 2005
Posts: 344
Mid-Atlantic
We file the fifth CTR so it shows five actual completed CTR's, then on (what would be) the 6th reportable transaction, a DEP is filed.
_________________________
CAMS
CAFP

Return to Top
#1640727 - 12/19/11 08:56 PM Re: Exemption eligible? fmb
Help!!! Offline
Member
Joined: Aug 2011
Posts: 51
Arkansas
I have an account that was was originally opened as a DBA account and they are exempt from CTR Filings. They have now Incorporated and have a Tax ID #. Do I have to file a Form 110 with the updated info?

I have a business account that is not exempt but I think they should be. The account has been opened for 2 years with several CTRs filed. I am new to the deposit side of compliance and have never filed an exemption. What do I need to do and can I exempt that customer?

Return to Top
#1640738 - 12/19/11 08:57 PM Re: Exemption eligible? fmb
BFrame Offline
Gold Star
BFrame
Joined: Nov 2011
Posts: 401
USA
Question 1 - I would file a new form for the Corporation since they have a different tax ID number than the past.
Did you open up a new account for the new corporation since the type of entity is different and the tax ID number is new? If the answer is yes, I would wait until the new corporation is eligible to be exempt.

Question 2 - If the business account is not engaged primarily in ineligible activities, has been open for at least 2 months, and and has at least 5 large currency transactions in a year, you should be good to file.
Do you e-file?
Last edited by WhoSaid; 12/19/11 09:03 PM.
_________________________
~

Return to Top
#1640819 - 12/19/11 11:15 PM Re: Exemption eligible? fmb
WonderWoman Offline
Diamond Poster
WonderWoman
Joined: Mar 2007
Posts: 2,108
gone fishin'
Question 1 - you MUST file a new form and wait the 2 months for eligibility. They are a new entity.

Question 2 - what WhoSaid said wink
_________________________
My opinions are my own, and not that of my employer.

Return to Top
#1641092 - 12/20/11 05:39 PM Re: Exemption eligible? BFrame
Help!!! Offline
Member
Joined: Aug 2011
Posts: 51
Arkansas
Question #1 - A new account was not opened just new signature card with new Tax Id number and same account number. We have not filed CTRs on the customer since the account has been changed. Would I need to go back and file late CTRs since the account was not changed?


Question #2 - Yes we e-file


Thanks for any advise you may have.

Return to Top
#1641112 - 12/20/11 05:58 PM Re: Exemption eligible? fmb
devsfan Offline
Diamond Poster
Joined: Jun 2004
Posts: 1,927
NYC
You exempt an entity (Tax ID) not an account, so as (not as) stated, the new entity was not eligible for the same exemption and you need to back-file CTRs. You could request a back-filing determination from FinCEN but I am pretty sure that they would instruct you to file.

Return to Top
#1641134 - 12/20/11 06:20 PM Re: Exemption eligible? devsfan
Help!!! Offline
Member
Joined: Aug 2011
Posts: 51
Arkansas
Thanks

Return to Top
#1641428 - 12/21/11 12:09 PM Re: Exemption eligible? fmb
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Quote:
our auditors are saying that I need to complete the CTR for that fifth transaction because the customer wasn't officially exempt yet.


Explain to them: 1)the requirement is for five reportable transactions, not five CTRs and 2) as noted, exemptions are retroactive for 30 days; i.e. they eliminate the need for filing CTRs in that period.
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top

Moderator:  Andy_Z