I own a small business. There is no circumstance outside a lending relationship where I would give a bank a copy of my financial statements. As far as I'm concerned, the bank can file CTRs on me or not, I simply do not care.
Bankers tell me that many of their clients have a shared perspective. So, it's a given that you will encounter some pushback.
FIN 2009-G001 is one of the most poorly written of all FinCEN issuances, stopping short of any really helpful answer in virtually every place where one was needed. For example:
If available, a bank is encouraged to request and review a business customer’s audited financial statements; however, other information may be similarly relied upon providing that it allows the bank to make a reasonable determination regarding the portion of the customer’s annual gross revenues that is derived from ineligible business activities.What small business has "audited" financial statements? What small business breaks out its sources of income on its financial statements; e.g. how much did the convenience store make from lottery ticket sales in any specific time frame corresponding to an exemption?
There's enough limiting language to indicate that requiring financials is not required, per se. This is an area where examiners, rightly and wrongly, exercise a lot of discretion. Talk to the EIC from your last exam about what's expected.
P.S. Some of my Miami clients would close my account for refusing to provide
anything requested under the heading of BSA compliance...they're a tough bunch.