So, I read the earlier threads on this, and the rule, but I still have a question. Our branches frequently list an entity as the remitter of our cashier's checks. I gather that is not a best practice.

But our system gathers conductor info on cash transactions of $2,500.00 and up, so we have the required info in our system to meet the requirements. However, the monetary instrument log shows the entity as purchaser. We have never been criticized for that either.

For my own purposes I would prefer to have a natural person/conductor because working alerts and cases is more time consuming for me if I have to uncover the conductor through research.

But can I provide any better reason than my convenience to recommend we change our process? I know the customers won't like the change.

Generally we do not sell to non-customers, but an officer can approve an exception.

The recordkeeping requirement for the purchase and sale of monetary instruments does not state that the recordkeeping information be kept on a log. It simply states what records must be kept depending on whether the purchaser is a depositor or a non-depositor so your auditors and examiners should only be concerned about whether you have the information or not. (Note these terms are not customer/non-customer so the non-depositor terms could apply to a loan only or safe deposit box only customer but you should have the non-depositor records since you would get that as part of your CIP.)

With respect to the purchaser, since an entity cannot physically walk into your branch, the recordkeeping requirement applies to the natural person standing at the teller line handing over the cash. What you choose to put on the remitter line is a matter of bank policy and not a regulatory issue at all.

That's a logic fault. It also complicates 314(a) compliance, you are now committed to bimonthly searches for the names of people who have no loan or deposit relationship with your bank. That's in exchange for what, a $5 fee?

Brian, you are not giving me any ammunition, but thaink you for your response.

Ken, singing to the choir.

As per the July 1995 GAO Report "Money Laundering - Stakeholders View Recordkeeping Requirements for Cashier's Checks As Suffcient" - page 5

"...in October 1994, Treasury rescinded the log requirement.5 Treasury
now permits financial institutions to maintain the required BSA information
in any format they choose, as long as the information can be readily
retrieved at the request of the Secretary of the Treasury."

Daisy Doodle, perhaps this will help you IF the purchaser (natural person/conductor) would not be easily retrievable in your records.

Thanks, happy auditor. The log is still the easiest though!

Yes, I agree, the log is the easiest...what I was pointing out is that if you have the log, but it does not give the correct purchaser in those instances, will you be able to retrieve that information easily for examiner request or other purposes? If the answer is no, then maybe that is your ammunition.

I take an opposite view. You are required to record the information in a way that allows easy retrieval. Arguing that you can't readily get the information won't buy you anything but more grief, IMHO.

Isn't Daisy trying to get her bank's operational process changed? Wouldn't the above (not being able to easily retrieve the information, therefore causing the bank to be out of compliance with the regulatory expectation) be her ammunition to get the management at her bank to change the process? Sorry, maybe I am not following what she is asking.

I'm not going to try to force an operational change for my benefit if what I'm suggesting is not the norm for other banks. I was under the impression that the best practice is to show the natural person at the teller window as the purchaser.

But the required info is available to me--I cannot deny. I think I need to drop this and move on!

First, there is no recordkeeping requirement to capture and maintain a remitter of a monetary instrument.

Second, when was the last time an entity walked through the front door with cash to purchase a monetary instrument - it doesn't happen. There has to be a physical body present.

Third - While a log is not required, if you sell to non-customers - how are you going to do your 314(b) checks if your systems don't capture the individual's information?