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#1808965 - 04/29/13 04:39 PM Customer Questions Regarding Collection of Info
TryingtoComply Offline
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I have prepared this information for our employees to use when non-customers question why we are collecting information about them. Tellers often have a difficult time explaining the bank's policy. I was thinking this might make things easier and also prevent employees from getting into an awkward situation. I would appreciate some feedback.

XXX Bank is required to file FinCEN Form 104 Currency Transaction Report (“CTR”) for single or multiple cash transactions conducted by or on behalf of the same person that exceeds $10,000.00 on the same business day. These requirements are found in the Financial Recordkeeping and Reporting of Currency and Foreign Transactions regulations at 31 C.F.R. Part 103.
In addition, XXX Bank is subject to federal regulations that require the reporting of known or suspected federal criminal violations and suspicious transactions related to money laundering and violations of the Bank Secrecy Act found at 12 CFR 208.62. These regulations can be found at 12 CFR 211.24(f) and 12 CFR 225.4(f).
In order to comply with the requirement to file a CTR for multiple cash transactions conducted by or on behalf of the same person, XXXX Bank collects the name, address, taxpayer identification number and identification of individuals that conduct cash transactions over a certain threshold in order to meet the requirement to file a Form 104 Currency Transaction Report for multiple cash transactions conducted by or on behalf of the same person that exceed $10,000.00 on the same business day. In addition, the bank reviews transaction records to determine if individuals may be “structuring” cash transactions to evade CTR requirements. If the Bank suspects that an individual may be structuring cash transactions, it is required to file a Suspicious Activity Report to notify law enforcement. This report is required by 12 U.S.C. 324, 334, 611a, 1844(b) and (c), 3105(c) (2) and 3106(a).
The regulatory agencies expect financial institutions to have a system in place to detect and aggregate multiple cash transactions in order to manage their Bank Secrecy Act responsibilities.
The Bank Secrecy Act/Anti-Money Laundering Examination Manual used by XXXX Bank's regulator can be found at:
http://www.ffiec.gov/bsa_aml_infobase/documents/BSA_AML_Man_2010.pdf
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#1808966 - 04/29/13 04:40 PM Re: Customer Questions Regarding Collection of Info TryingtoComply
devsfan Offline
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You could simplify the process by just saying "it is the law".

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#1808979 - 04/29/13 05:01 PM Re: Customer Questions Regarding Collection of Info TryingtoComply
Matt_B Offline
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Or pass out FinCEN's CTR pamphlet, it's a lot more customer-friendly, and less likely to generate more questions. And you can be sure that your staff won't be involved (inadvertently) with assisting in structuring.
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#1808995 - 04/29/13 05:38 PM Re: Customer Questions Regarding Collection of Info TryingtoComply
Elwood P. Dowd Offline
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Some technical criticisms are possible, but I agree the FinCEN Pamphlet is a more practical offering. Some field examiners still grumble that the pamphlet is "assisting in structuring," but its authorship sort of kills their complaint. Yours would have no such defense.

If your bank is requiring information on transactions below the reportable amount, the pamphlet or the language from the pamphlet could easily be supplemented with that explanation.
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#1809300 - 04/30/13 02:51 PM Re: Customer Questions Regarding Collection of Info TryingtoComply
NotDoneYet Offline
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In a recent visit from the Treasury Dept, we were asked if we hand out that brochure, which we do. She was surprised and happy we did. She stated that it actually helped in their review of a bank's liability. We didn't question her any further, but continue to hand them out as needed.

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#1809399 - 04/30/13 04:16 PM Re: Customer Questions Regarding Collection of Info TryingtoComply
devsfan Offline
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If you don't mind my asking and without giving private information, I am wondering why you had a visit from Treasury.

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#1809415 - 04/30/13 04:28 PM Re: Customer Questions Regarding Collection of Info TryingtoComply
TryingtoComply Offline
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Yeah, good point about the FinCEN brochure; however, non-customers know that a bank is supposed to collect information over $10,000 and they question our much lower threshold for cashing checks. I think I will edit the information and use it as a script for the operations employees. Thanks everyone!
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#1809470 - 04/30/13 05:26 PM Re: Customer Questions Regarding Collection of Info TryingtoComply
NotDoneYet Offline
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I believe another bank may have filed something and referenced one of our business customers. The Treasury (and a couple others) wanted to know our bank's procedures for handling specific types of transactions.
Last edited by NotDoneYet; 04/30/13 05:26 PM.
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#1810557 - 05/02/13 11:42 PM Re: Customer Questions Regarding Collection of Info TryingtoComply
TryingtoComply Offline
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At a previous bank we had a customer register a complaint regarding our procedures. People are really sensitive about providing their personal information these days. smile
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#1811695 - 05/07/13 03:38 PM Re: Customer Questions Regarding Collection of Info TryingtoComply
Sci_Comply Offline
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Can we just print out the 1st page of the pamphlet for them? smile (The back shows examples of structuring accounts.)

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#1811711 - 05/07/13 03:51 PM Re: Customer Questions Regarding Collection of Info Sci_Comply
Dr.Ozya Offline
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Originally Posted By: Sci_Comply
Can we just print out the 1st page of the pamphlet for them? smile (The back shows examples of structuring accounts.)

FinCEN can be quite sensitive as to altering of their documents. I called them with similar question (my was in regards to translation into foreign language), and the response was that in this case we couldn't use FinCEN logo. That sort of defeats the purpose of "safe harbor" when possibly hinting about potential suspicious activity. It is safer to provide the whole brochure.
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#1811774 - 05/07/13 05:00 PM Re: Customer Questions Regarding Collection of Info TryingtoComply
ACBbank Offline
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I have had FinCEN reps tell me the same story that the good Doctor opined on. I would hand out the whole pamphlet and be done with it.
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#1811809 - 05/07/13 05:46 PM Re: Customer Questions Regarding Collection of Info TryingtoComply
HappyGilmore Offline
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Pulling people out of the ditc...
I wonder why you allow transactions of that amount for non-customers?
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#1812020 - 05/08/13 10:55 AM Re: Customer Questions Regarding Collection of Info Sci_Comply
Elwood P. Dowd Offline
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Quote:
Can we just print out the 1st page of the pamphlet for them?


Yes, the pamphlet itself is not copyrighted and its accuracy is unaffected by omitting the descriptions of structuring. Obviously, if you modify or expand the language it would be misleading to leave the FinCEN logo in place. However, only your regulatory agency could raise concerns...
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#1812448 - 05/08/13 08:31 PM Re: Customer Questions Regarding Collection of Info TryingtoComply
TryingtoComply Offline
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HappyGilmore,

In response to your question - Cashing checks issued by our customers to non-customers.
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#1812460 - 05/08/13 08:49 PM Re: Customer Questions Regarding Collection of Info TryingtoComply
WonderWoman Offline
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gone fishin'
They can bring the check somewhere else if they don't comply with your procedures.
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#1812476 - 05/08/13 09:04 PM Re: Customer Questions Regarding Collection of Info TryingtoComply
NewTooBSA Offline
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In addition to handing out the brochure to our customers, the teller notifies the BSA Department any time they do and we note it on the customers electronic file. That way if we have to file a SAR for structuring, we can include that a brochure was handed out. Our examiners really like that.

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