DOEP

Posted By: MScarn6942

DOEP - 04/07/18 01:59 PM

We had a customer with multiple gas stations who had an account with us for his local gas station under name ABC, Inc. Recently, he told us that ours was the only account he was carrying in that name, and that the other stations have accounts under XYZ, LLC dba ABC, Inc. ABC, Inc. was exempted from CTRs under a Phase II Exemption.

Are we able to exempt XYZ, LLC under ABC Inc's DOEP since all we did was change titling? Or will we need a new DOEP, and if so, do we need to file 5 CTRs first?
Posted By: rlcarey

Re: DOEP - 04/08/18 12:05 PM

I really don't understand what you are saying. You have an account under ABC, Inc. that has been exempted - but it should really be XYZ, LLC dba ABC, Inc.? "he told us that ours was the only account he was carrying in that name" what does this mean - more accounts at your bank or other banks? If you previously exempted ABC, Inc. and it was only a dba name, then I would be more concerned with potential back filing issues because clearly that exemption was not vetted properly.
Posted By: MScarn6942

Re: DOEP - 04/09/18 01:49 PM

Originally Posted By rlcarey
I really don't understand what you are saying. You have an account under ABC, Inc. that has been exempted - but it should really be XYZ, LLC dba ABC, Inc.?


Correct.

Originally Posted By rlcarey
"he told us that ours was the only account he was carrying in that name" what does this mean - more accounts at your bank or other banks?


At other banks. When he opened this account, he told us ABC, Inc., but apparently told the other banks to use XYZ, LLC dba ABC Inc.

Originally Posted By rlcarey
If you previously exempted ABC, Inc. and it was only a dba name, then I would be more concerned with potential back filing issues because clearly that exemption was not vetted properly.


ABC, Inc. and XYZ, LLC are both registered with the Secretary of State, so they're not just a DBA in name; that's why we were able to exempt ABC, Inc.

Does that help clarify?
Posted By: rlcarey

Re: DOEP - 04/09/18 01:58 PM

Not really. Just because he has two registered separate entities does not mean that you know with which one you are really dealing. You need to get to he bottom of what is going on. Having ABC, Inc. and have XYZ, LLC dba ABC, Inc. doesn't make any sense to me.
Posted By: MScarn6942

Re: DOEP - 04/09/18 02:19 PM

It doesn't make much sense to me, either. I came across it because our system triggered a CTR because of the TIN change (now using XYZ LLC's instead of ABC, Inc's).

It sounds to me like exempting this customer is going to be a difficult task. Is it worth a call to FinCEN?
Posted By: rlcarey

Re: DOEP - 04/09/18 02:31 PM

What are you going to ask them? If they changed the entity from ABC, Inc. to XYZ, LCC dba ABC, Inc., then you have a brand new customer. The old account should have been closed, a new account opened, and any decision to exempt the new customer should follow your normal process. I can't imagine anyone switching EINs on a business account without taking such actions.
Posted By: MScarn6942

Re: DOEP - 04/09/18 02:57 PM

That's what I was worried about. I need to look into it on our end as to why we did what we did, but all they did was rename the account (with a new sig card). Kept the same account number and all the transactions still pull up on our system. Thanks for your help, I appreciate it!
Posted By: John Burnett

Re: DOEP - 04/10/18 01:39 PM

I'd look harder at "XYZ LLC d/b/a ABC Inc." It's not normal for a state to allow registration of an entity using a tradestyle that includes "Inc." Of course, we have all read in these forums about states that have permitted such registrations even though the laws of the state don't support it.
Posted By: MScarn6942

Re: DOEP - 04/10/18 03:00 PM

John - I just checked again on the SoS website and have no idea what I was looking at before. The entity name for ABC Inc is actually BCD, LLC with an assumed name of ABC (without Inc). I added "Inc" somewhere incorrectly.
Posted By: John Burnett

Re: DOEP - 04/10/18 03:05 PM

As the kids used to say (my grandkids still do) -- Made you look!

Seriously, I'm glad you're not looking at one of those screwed-up business names.
Posted By: MScarn6942

Re: DOEP - 04/10/18 03:26 PM

You did!

I'm glad too smile
Posted By: Red Raiders

Re: DOEP - 10/22/19 04:31 PM

Does FinCEN (or any regulator) require the dba to registered with the State? If we check the State website as part of our annual review and our customer, ABC, LLC has properly registered do they have to include "Krystal #143" if they operate a restaurant? We haven't been and it has never been brought up in an exam but I heard recently of a bank auditor that was saying this is a requirement.
Posted By: praBSA

Re: DOEP - 10/22/19 05:19 PM

In New York, you can't even verify DBA names on the state website. I have a small side business with a registered DBA and it doesn't show up there. As with any FinCEN form, you should indeed include all information you have for a customer. I would start by clearing up the customer's true name with their customer service rep or a phone call to clear things up.
Posted By: Red Raiders

Re: DOEP - 10/22/19 08:49 PM

Assuming we know that ABC, LLC is dba as Krystal is there any requirement by FinCEN that their state filing reference the dba or it sufficient that the LLC is sufficiently registered?

I couldn't find anything that firmly addresses this but I have been told that it is a requirement. ????
Posted By: praBSA

Re: DOEP - 10/23/19 01:16 PM

FinCEN state filing? I am confused.

I think what you are asking is that if you know your customer has a DBA, should it be included in the DOEP? The answer is yes.

Upon opening an account, if the customer is using a DBA the DBA information should have been obtained. To me, you don't need to go beyond that to investigate their CIP as part of an exemption review unless you feel the need to NOT give them an exemption if you think they are hiding something...

The state website only addresses DBA's in a few states. If you collected it at opening, I would NOT see a need to get their information again, you already have it on file.
Posted By: Red Raiders

Re: DOEP - 10/23/19 01:42 PM

The DOEP is filed with the dba listed. This person is saying that as part of our annual review of the exempt customer that we need to make sure their goodstanding with the State includes their actual business (dba) name as and AKA or assumed name. Again, I've never heard of that as a requirement and couldn't find it that specific in the exempt customer section of the regulation.
Posted By: BrianC

Re: DOEP - 10/23/19 03:42 PM

Any such requirements would be a function of state or local law. For example, in Illinois most municipalities require the completion of an assumed name affidavit for sole proprietors and the Secretary of State requires that a corporation or LLC include the assumed name on its annual filing documents.

As noted above, all BSA says is if you have knowledge of the assumed name (whether registered or not) include it on the form. You auditor is saying from a CIP verification perspective, your procedures should include requiring documentation to verify that the entity has the authority to use the assumed name.

Since CIP does not mandate what documentary verification you must require, only that it be sufficient to form a reasonable belief that you identify your customer, it is a risk-based decision what you require to verify the identity of a business. It's also a good risk mitigation practice.

For example, if I open an account BJC LLC d/b/a American Red Cross and start depositing checks payable to the American Red Cross and you do not verify that I have the authority to use that trade name, you may find yourself on the short end of a lot of endorsement claims after I have stolen a lot of disaster relief money.