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#2176316 - 05/02/18 03:38 PM Exemption annual review on dba
Red Raiders Offline
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We had this brought up in a recent BSA audit.

We have a customer, Raiders, LLC, who operates a restaurant dba Raiders Bar & Grill. We have Raiders, LLC dba Raiders Bar & Grill exempted from CTR reporting. We do our annual review of the customer and obtain documentation from the State that Raiders, LLC is properly registered with the State. Our auditor is saying that the dba needs to be verified also to make sure it is registered with the State.

Thoughts?
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#2176327 - 05/02/18 04:09 PM Re: Exemption annual review on dba Red Raiders
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Nope. We have several exemptions set up like you describe and have never obtained a state certificate and it has never ever been an issue.

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#2176330 - 05/02/18 04:15 PM Re: Exemption annual review on dba Red Raiders
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We haven't had an issue with this until this audit. The auditor is saying that the certificate of good standing for Raiders, LLC should include the dba as an assumed name.
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#2176331 - 05/02/18 04:16 PM Re: Exemption annual review on dba Red Raiders
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None of ours do, only in the corporation name

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#2176332 - 05/02/18 04:17 PM Re: Exemption annual review on dba Red Raiders
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Ask him for the regulatory cite that requires that and supports his claim.

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#2176335 - 05/02/18 04:36 PM Re: Exemption annual review on dba Red Raiders
rlcarey Online
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Originally Posted By Red Raiders
The auditor is saying that the certificate of good standing for Raiders, LLC should include the dba as an assumed name.


Really. Have him pull one from your State that has this. If a company registers an assumed name, it is normally a totally separate data base from corporate registration. In some States it is not even completed at the State level, but in the county of operation. Someone needs to find a new auditor.
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#2176338 - 05/02/18 04:41 PM Re: Exemption annual review on dba Red Raiders
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We did have another exempt customer that did have this included on the certificate of good standing but I didn't know if this was something that absolutely had to be on there or if the mere verifying that our customer (the parent entity) was still in good standing was sufficient.
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#2176343 - 05/02/18 04:53 PM Re: Exemption annual review on dba Red Raiders
rlcarey Online
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Well if they are required by law to register with the State in order to do business under the dba name, then I would think you would be required to do the verification, whether that appears on the certificate of good standing or not. I can't address what your State law actually requires. One of the conditions for exemption and continued exemption at the annual review is:

Is incorporated or organized under the laws of the United States or a State, or is registered as and eligible to do business within the United States or a State;
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#2176350 - 05/02/18 05:17 PM Re: Exemption annual review on dba Red Raiders
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Thanks, Randy. This just through me for a loop. It hasn't been brought up in my 20 year of banking but you learn something new every day I suppose. smile
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