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#584644 - 07/17/06 07:54 PM Exempt person question?
Runreb Offline
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Runreb
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Is a CTR required to be filed when a deposit is made on behalf of an insurance company (which is a bank subsidiary) into a bank account?

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#584645 - 07/17/06 08:15 PM Re: Exempt person question?
Skyline Offline
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Skyline
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I'm having trouble understanding how cash is involved in a deposit between the insurance company and the bank.
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#584646 - 07/18/06 07:02 PM Re: Exempt person question?
Runreb Offline
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Runreb
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From time to time customers will pay insurance premiums in cash to our insurance co. sub., then, deposit the cash into their account at the bank. My question would the transaction be exempt since it is a sub. of the bank? thanks

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#584647 - 07/18/06 08:53 PM Re: Exempt person question?
BrendaC Offline
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Our insurance agents are prohibited from accepting cash payments.
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#584648 - 07/19/06 12:05 PM Re: Exempt person question?
John Burnett Offline
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I'll borrow a suggestion from another post about exemptions. Consider the number of CTRs you are likely to have to file on this company and compare it to the aggravation of establishing, nurturing, and attending to the exemption. While the minimum filing activity level for a Phase II exemption is set by FinCEN at 8 per year, I suggest that it's hard to find any payback on such an exemption until the activity level is more than one a week.
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#584649 - 07/19/06 01:11 PM Re: Exempt person question?
blue Offline
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I confess I am having difficulty finding the criteria of 8 in the regulations. Is this somewhere else, e.g. commentary, or am I just missing it in the CFR? I would very much appreciate the specific reference in the regulation or commentary that states 8/year for renewing a Phase II exemption.

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#584650 - 07/19/06 01:24 PM Re: Exempt person question?
Elwood P. Dowd Offline
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Hey, if they start putting everything in the regulations that would leave old duffers like John & me with no aid to offer to others and would deny you the challenge of the hunt!

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#584651 - 07/19/06 01:45 PM Re: Exempt person question?
blue Offline
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Thanks Ken. I appreciate the reference.

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#584652 - 11/08/06 08:24 PM Re: Exempt person question?
mobdiaz Offline
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Posts: 53
I have a similar question, I think. With regard to my bank's operations, do I report the transactions in cash for CTR purposes? Or in other words, are my institution's operational accounts inherently exempt, i.e. the bank does not report itself, or do I need to exempt it?

Example:

Our institution receives cash credit card payments which are handled by our credit card department. At the end of every day a global cash deposit is made to the credit card department's operational account held at the bank. Do I report in a CTR the cash received into the operational account? Do I exempt the credit card department (the bank itself)?

If the credit card department is a wholely-owned subsidiary does the answer change?

Thanks for any help you can give!

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#584653 - 11/08/06 08:50 PM Re: Exempt person question?
rlcarey Online
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If the bank received more than $10,00 in cash for payment on behalf of a credit card customer, a CTR would be filed on the customer. Internal cash transfers are not reportable. I.E., you don't report the main vault when they sell cash to a branch.

If they are a wholely owned sub, I do not believe that changes anything. If they are true affiliate, you could exempt them under Phase I if the affiliate was a bank as defined in 31 CFR 103.11(c).
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#584654 - 11/10/06 08:14 PM Re: Exempt person question?
Pinkie CRCM Offline
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KY
Quote:

aggravation of establishing, nurturing, and attending to




"...personnel to complete the forms". This is exactly my argument FOR CTR exemptions.

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#584655 - 11/13/06 12:44 AM Re: Exempt person question?
mobdiaz Offline
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Joined: Apr 2004
Posts: 53
Quote:

If the bank received more than $10,00 in cash for payment on behalf of a credit card customer, a CTR would be filed on the customer. Internal cash transfers are not reportable. I.E., you don't report the main vault when they sell cash to a branch.

If they are a wholely owned sub, I do not believe that changes anything. If they are true affiliate, you could exempt them under Phase I if the affiliate was a bank as defined in 31 CFR 103.11(c).




Just to be sure, I do have to formally exempt a wholely owned subsidiary. I cannot just not report the cash as part of the bank's operations. Also do you have a citation for the part about not reporting the vault transactions?

Thanks!

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