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#2270629 - 05/19/22 02:21 PM Phase 1 Listed Entity Exemption
Compliance Risk Offline
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Joined: Sep 2015
Posts: 81
In doing an annual review for a Phase 1 Listed Entity they have only had two reportable transactions in the past year, so it looks like I need to revoke their exemption. Please verify I am reading this correctly. I will report this on a DOEP.

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#2270632 - 05/19/22 02:29 PM Re: Phase 1 Listed Entity Exemption Compliance Risk
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
A listed entity does not need any transactions to exempt them, they are a Phase I.
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#2270634 - 05/19/22 02:32 PM Re: Phase 1 Listed Entity Exemption Compliance Risk
Compliance Risk Offline
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So the annual review is just to make sure they are on the stock exchange and have accounts with us?

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#2270636 - 05/19/22 02:33 PM Re: Phase 1 Listed Entity Exemption Compliance Risk
rlcarey Online
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rlcarey
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Galveston, TX
That about sums it up.
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#2270811 - 05/24/22 03:34 PM Re: Phase 1 Listed Entity Exemption Compliance Risk
John Burnett Offline
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I believe you can exempt a listed company or any of the entities described in the "phase 1" paragraphs 1020.315(b)(1) thru (5) even if there is no deposit account relationship.
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#2270873 - 05/25/22 03:54 PM Re: Phase 1 Listed Entity Exemption Compliance Risk
John Burnett Offline
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John Burnett
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Cape Cod
For example, if your bank has an in-store branch at a Walmart, and the Walmart store manager purchases a $50,000 cashier's check from the bank branch to reduce the store's cash-on-hand, you would not have to file a CTR if you have filed a DOEP on Walmart as a listed company, even if Walmart does not maintain an account with the bank.
Last edited by John Burnett; 05/25/22 04:17 PM.
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#2271723 - 06/15/22 07:50 PM Re: Phase 1 Listed Entity Exemption Compliance Risk
Richard Insley Offline
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Richard Insley
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Toano, VA
Bankers don't create or revoke Phase I exemptions...FinCEN has already done that by regulation. All you have to do is confirm the identity of the organization that is your customer.
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#2271945 - 06/22/22 02:16 PM Re: Phase 1 Listed Entity Exemption Compliance Risk
John Burnett Offline
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John Burnett
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Cape Cod
Lest anyone think that Richard is saying you don't need to file a DOEP -- That is true if the customer is a bank; a department or agency of the U.S., a state; or any political subdivision of a state. But you do need to file a DOEP before adding a listed company or 51% sub of a listed company to your exemption list. And, of course, you need to review such an exemption annually to ensure the company is still listed or is still a sub owned 51% or more by a listed company.
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#2274703 - 08/25/22 03:31 PM Re: Phase 1 Listed Entity Exemption John Burnett
Tabbetha, CRCM Offline
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Joined: Feb 2009
Posts: 49
Biloxi, Mississippi
An additional question, private schools would be Phase II exemption, correct? I get confused about county schools being a Phase I versus a private academy.

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#2274714 - 08/25/22 05:02 PM Re: Phase 1 Listed Entity Exemption Compliance Risk
BrianC Offline
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Illinois
Private school doesn't have the ability to tax and is not a government entity. They would be a Phase II if they qualify.
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#2274719 - 08/25/22 05:08 PM Re: Phase 1 Listed Entity Exemption BrianC
Tabbetha, CRCM Offline
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Joined: Feb 2009
Posts: 49
Biloxi, Mississippi
Thank you!

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