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#1883808 - 01/07/14 06:00 PM Another CTR Question
CrashDavis Offline
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Joined: Jun 2005
Posts: 283
We have a customer that owns a drug store and also has another business that takes payments for phone bills through the drug store. The phone deposits are always made at the night deposit and the drug store deposit is made in person. The phone payment account is under the individual ssn and the drug store account is the EIN number

This morning when the night deposit was worked, the phone payment deposit consisted of $7,000 in cash. At 10:30 the drug store made deposit which consisted of $5,000.00 in cash. My question is would we file a one CTR showing both businesses as beneficiaries even though one account is the individual's ssn number and the drug store was the EIN?

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#1883812 - 01/07/14 06:11 PM Re: Another CTR Question CrashDavis
rlcarey Offline
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rlcarey
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Posts: 80,358
Galveston, TX
Why is the drug store under an EIN - is it an actual entity??? Otherwise, for banking purposes, the sole proprietorship's SSN should be used - see the instructions for the W-9.

Without fully understanding the relationship it is a hard question to answer.

Also sounds like they might be an MSB - although I know that was not your question.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1883858 - 01/07/14 07:05 PM Re: Another CTR Question CrashDavis
CrashDavis Offline
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Joined: Jun 2005
Posts: 283
I had already reviewed for MSB activity and they are not an MSB. The drug company is incorporated. The separate account is a sole proprietorship. The owner of the drug store is also the owner of the phone payment account. My question was if both accounts make deposits that exceed $10,000 do we file a CTR Deposit on each company doesn't exceed $10,000 but when you add both cash in both accounts they do exceed $10,000.00. One was deposited in person and we do know the person who made that deposit but the one who put the deposit in the night deposit, we do not know who that is.

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#1883861 - 01/07/14 07:12 PM Re: Another CTR Question CrashDavis
rlcarey Offline
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rlcarey
Joined: Jul 2001
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Galveston, TX
Review this:

http://www.fincen.gov/statutes_regs/guidance/html/FIN-2012-G001.html

Common ownership is not relevant to aggregation.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1883950 - 01/07/14 08:34 PM Re: Another CTR Question CrashDavis
CrashDavis Offline
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Joined: Jun 2005
Posts: 283
rlcarey, thanks for your help. The guidance you sent answered our question. Appreciate your help.

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#1886322 - 01/14/14 03:41 PM Re: Another CTR Question CrashDavis
newbietoo Offline
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Posts: 201
To tag on, how do you guys determine when aggregation should occur in common ownership situations?

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#1886417 - 01/14/14 05:32 PM Re: Another CTR Question CrashDavis
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,358
Galveston, TX
You use the FinCEN guidance that I posted a link too and make a decision.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1886507 - 01/14/14 07:08 PM Re: Another CTR Question CrashDavis
John Burnett Offline
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John Burnett
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Cape Cod
I think that after reading that guidance, you'll agree that FinCEN wasn't willing to draw a bright line around circumstances that would trigger your having to aggregate across ownership of separate entities. It's one of those "facts and circumstances" things that FinCEN expects you to figure out based on your knowledge of the customer(s) and their actions.

Analyze the information you have carefully, and obtain whatever additional information you can about the businesses. Then make your determination. Document what you've done, and be ready to defend it if an examiner decides to try second-guessing you.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
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#1886537 - 01/14/14 07:31 PM Re: Another CTR Question CrashDavis
newbietoo Offline
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Joined: Aug 2009
Posts: 201
Thank you!

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