Posted By: Anonymous
FinCEN "Clarification" - Monetary Instrument Sales - 12/03/02 04:19 PM
What's other's feeling on FinCEN's recent statement on recordkeeping for sales of monetary instruments.
http://www.fincen.gov/monetaryinstrumentsales3a.pdf
I believe many banks like us had instituted a practice to alleviate the recordkeeping burden by a 2 step approach:
1 - Don't sell to non-customers; and
2 - Have customers presenting currency to purchase an item first deposit the funds into the account and then make a withdrawal.
FinCEN is saying they want everyone to understand that they still treat the the latter practice as subject to the recordkeeping requirement of 103.29.
They toss in: "FinCEN anticipates that, in selling monetary instruments to deposit account holders, a financial
institution will already maintain most of the information required by §103.29 in the normal course of its business, and therefore the requirement to fully comply with the
regulation should not be overly burdensome."
I'm thinking this removes the benefit of the deposit the funds first policy?
http://www.fincen.gov/monetaryinstrumentsales3a.pdf
I believe many banks like us had instituted a practice to alleviate the recordkeeping burden by a 2 step approach:
1 - Don't sell to non-customers; and
2 - Have customers presenting currency to purchase an item first deposit the funds into the account and then make a withdrawal.
FinCEN is saying they want everyone to understand that they still treat the the latter practice as subject to the recordkeeping requirement of 103.29.
They toss in: "FinCEN anticipates that, in selling monetary instruments to deposit account holders, a financial
institution will already maintain most of the information required by §103.29 in the normal course of its business, and therefore the requirement to fully comply with the
regulation should not be overly burdensome."
I'm thinking this removes the benefit of the deposit the funds first policy?