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#117625 - 09/25/03 06:25 PM Customer Signature for BSA Exemption - OK?
Anonymous
Unregistered

In addition to filing our biennial Designation of Exempt Person form, can we have the customer sign a form indicating their knowledge that they are being considered exempt from CTR filings? Or, is this practice discouraged?

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#117626 - 09/25/03 06:53 PM Re: Customer Signature for BSA Exemption - OK?
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
My only response is that I am not certain what purpose it serves. The previous exemption process included a customer certification and Treasury omitted it. If they don't want it, I am not certain why you would. Moreover, you are responsible for the propriety of an exemption and no statement from the customer will change that. The only real downside I can think of is that it might confuse the examiner.
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#117627 - 09/25/03 07:20 PM Re: Customer Signature for BSA Exemption - OK?
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
It might be appropriate to have your customer's signature on a statement he/she/it provides about revenue types if you've found a need to analyze the relationship to split exemptible revenue from revenue for non-exempt business types. Or on a statement certifying it's a 51% or more sub of XYZ Corp, a listed company. But other than that, I'll agree with Ken.
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#117628 - 09/25/03 07:55 PM Re: Customer Signature for BSA Exemption - OK?
Anonymous
Unregistered

Thank you guys - I really appreciate the help. This was my own opionion as well, however, I just needed someone else to agree!!!

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#117629 - 09/25/03 07:58 PM Re: Customer Signature for BSA Exemption - OK?
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Aaahh, John your are a good man. There are a number of specific statements you might want from customers in connection with an exemption. My late afternoon mind could only process the generic possibilities. An example of what John is talking about is a convenience store that sells money orders, cashes checks and sells lottery tickets needs to put you in a position to defend the exemption. I would want an annual letter breaking down their revenues from the non exemptible sources.
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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