Thread Options
#2245724 - 11/20/20 02:49 PM CTR - Conductor or Business?
Bec Offline
Diamond Poster
Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
Hello,

A conductor with one of our exempted businesses presented a check payable to himself off the same business with a different financial institution which was over the CTR filing threshold. The customer told the front line that the proceeds were to benefit the business. My thought is that this would be a reportable transaction. The check is not from one of our exempted accounts with this business and we are not able to presume that the checking account with the other financial institution is exempt. My question is: How would you report this?? Would you report on the conductor as the beneficiary in that he received the cash? Or, would you report the business due to the statements made by the conductor? If you do report on the business, do you risk essentially unexempting them because filing CTRs on exempt customers implies to FinCEN that the customer is no longer exempt?
_________________________
Go Packers

Return to Top
BSA/AML/CIP/OFAC Forum
#2245725 - 11/20/20 03:18 PM Re: CTR - Conductor or Business? Bec
one deer Offline
Member
Joined: Aug 2004
Posts: 75
Any where but work
If the check is not drawn on our bank and the payee is not a customer, we would not cash the check. If I was brought into the conversation I would probably call the business customer and ask if they really issued the check to be cashed and explain why we won't cash it or confiscate it if it is bogus. If you cashed the check and it was a reportable amount, I would file the CTR conducted on own behalf if check was made to the individual presenting it and they walked out of financial institution with the cash. Perhaps a phone call to the business to research the actual reason for the transaction would help the CTR to be filed correctly the first time.

Return to Top
#2245726 - 11/20/20 03:22 PM Re: CTR - Conductor or Business? Bec
Bec Offline
Diamond Poster
Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
The check was cashed by the business owner who is also a customer of our bank.
_________________________
Go Packers

Return to Top
#2245855 - 11/24/20 10:00 PM Re: CTR - Conductor or Business? Bec
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,630
Cape Cod
If you cashed the check, you can't use the exemption you have for the business, because the transaction isn't transaction in an exemptible account at your institution. So, if you know the transaction is being conducted on behalf of the business, you file using a Part I for the conductor using 2b and a Part I for the business using 2c. It will be reported as a negotiable instrument cashed. No account number will be reported, because an account in your bank was not involved.

But I hope you would refuse the transaction based on the check being drawn on a different bank.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2245872 - 11/25/20 03:02 PM Re: CTR - Conductor or Business? Bec
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,630
Cape Cod
Filing on the business for a transaction that's not covered by your exemption for them doesn't affect the exemption.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top

Moderator:  Andy_Z