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#2019795 - 06/11/15 02:37 PM CTR Exemptions and Finance Company
CantBeShocked Offline
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Scenario - a bank has had a furniture finance company as exempt for Phase II reasons for years. Is this okay? Or are they ineligible for exemption based upon business type?

Audit nor FDIC has questioned in the past BTW.
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#2019804 - 06/11/15 02:48 PM Re: CTR Exemptions and Finance Company CantBeShocked
Elwood P. Dowd Offline
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There is no conclusion that can be drawn from the fact that something was not criticized in prior independent or regulatory examinations.

Question 17 indicates a non bank financial institution can be recognized as an exempt person if the revenues from that activity do not exceed 50% of the gross. You do not indicate that there is a second source of revenue. If this activity is their sole source of revenue, exemption is not possible.

Kosher or not, exempting a non bank financial institution confuses examiners and prompts calls to the regional office.
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#2019817 - 06/11/15 03:11 PM Re: CTR Exemptions and Finance Company CantBeShocked
CantBeShocked Offline
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Thanks - those were my thoughts as well. Have no idea how all have missed this but, as you said, doesn't matter. Just revoke the exemption. Does this bank need to ask FinCEN for guidance on back filing as well?
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#2019833 - 06/11/15 03:24 PM Re: CTR Exemptions and Finance Company CantBeShocked
Elwood P. Dowd Offline
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Elwood P. Dowd
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Unfortunately, yes.

Don't start the conversation with "We screwed up." Start by asking if it's even a problem...
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