Hello. Please help me get past my brain freeze on this. Does the "50% rule" (i.e. 50% of a business's annual gross profits cannot be obtained from a ineligible business activity) apply to Phase 1 (Stock Exchange listed) CTR exemptions too? Let's say that you have a customer that operates a big chain of pawn shops, or check cashing companies, etc. This customer is so big that they are a publically traded company on the NYSE. Are they eligible for a Phase 1 exemption? Or, even if they are, would it be most advisable for us to leave them as non-exempt based on their high risk nature?

The "ineligible activities" concept does not apply to any Phase I exempt person, e.g. a publicly traded company listed on a major exchange.