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#1758923 - 11/16/12 10:48 PM For Benefit of Account and CTR Reporting
LizzyP Offline
Junior Member
Joined: Jul 2006
Posts: 48
TX
Our Financial Institution just opened a Benefit Account under the FI Tax ID. If the FI receives cash under this account is a CTR triggered since FI's are exempt? The money will eventually be distributed to an organization that it was intended.
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#1758926 - 11/16/12 11:08 PM Re: For Benefit of Account and CTR Reporting LizzyP
BrianC Offline
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BrianC
Joined: Nov 2004
Posts: 6,362
Illinois
I guess the question that has to be asked is, "Why was the account not opened in the name of the organization using their Tax ID?" Stepping aside from the CTR question, this type of arraingment could also circumvent the CIP process and could be opened to critism.

Since the FI is not benefitting from the deposits, I would argue that this is not a Phase I exemption and that reportable deposits should be filed on a CTR listing the organization in Section A (Legacy Form) or 2c "Person on whose behalf transaction was conducted" (Form 112) and then the info on individual(s) making the deposits in Section B (Legacy form) or "2b Person conducting transaction for another" (Form 112).

Eevn if the bank has agreed to accept donations on behalf of the organization, the organization ultimately benefits.
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#1758944 - 11/17/12 07:33 AM Re: For Benefit of Account and CTR Reporting LizzyP
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,893
Galveston, TX
Also, unless the FI is approved to operate under trust powers, this account has a lot more problems associated with it. If they do have trust powers, then they should already have procedures to deal with this.
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#1759057 - 11/19/12 04:01 PM Re: For Benefit of Account and CTR Reporting LizzyP
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
As suggested, make certain your bank is empowered to act as a fiduciary...without that power there are no CTR issues to discuss. AFter you've done that, please tell us a bit more about the fact situation and we will try to help.

When in doubt, file the form, but the issues regarding trust powers are far more critical.
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