Aggregate CTR Reporting

My question concerns aggregating CTR reporting for cash transactions made to separate companies under separate EINs located in separate towns but owned by the same individual. We have accounts for six gas stations, each station averages 4 CTRs a week based on their cash deposits which are brought to the same branch, on the same day, by separate individuals (sometimes the owner, sometimes one of his employees). We have been completing separate CTRs based on the EIN number and business address; we do not aggregate the accounts. Is this process correct, or should we aggregate?

Look at FinCEN Ruling 2001-2 dated 8/23/01. That might answer your question.

If the companies are separate entities then they are separate persons as far as CTR filing is concerned. You do not aggregate based on common ownership, you aggregate only if the transactions were by or on behalf of the same person.

Read the guidance cited slowly and carefully. It is often described as saying exactly the opposite of what it actually says. Aggregation was required there because the owner did not treat the entities as separate organisms. Their financial activities were simply a mish mash; there was no way to separate their finances and no purpose in doing so.

Although it does not affect CTR filing, common ownership is very, very relevant to AML monitoring.

Here's a scenario. We have an insurance company as a customer who often averages over $10K in deposits. They've recently established a finance entity to finance the insurance premiums of their customers. The owners on each of the accounts are the same. Sometimes the owners make the deposits, sometimes an employee into both accounts where the total does exceed $10K. Aggregate CTR?

If the same individual is making deposits into both accounts then aggregate. If the deposits are made by different individuals, don't aggregate.

Thanks Skittles. That's what we've been doing but I second guessed myself.

Even if the deposits are conducted by different persons, I believe that you have to be aware of the point that Ken raised, namely if funds are moved among the accounts after the cash transactions. I have had several customers like this over the years who had different businesses with different EINs but who transferred funds back and forth, making a skeptic such as me, wonder if the businesses were organized only to facilitate splitting of the deposits and avoiding CTRs. In cases such as this I see no problem in considering that the owner benefits from the cash transactions and filing aggregate CTRs showing all businesses that had cash transactions.

During the OTS phone conference yesterday, this question was asked and the answer given was you would aggregate the total cash if the companies are under common ownership. Someone even asked them to clarify the answer and they repeated their answer.

Evan if different folks made the deposits?

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During the OTS phone conference yesterday, this question was asked and the answer given was you would aggregate the total cash if the companies are under common ownership. Someone even asked them to clarify the answer and they repeated their answer.

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Actually they did say that the first time, but later they came back and clarified to say that you aggregate if the companies are not being operated as separate and independent entities . They tried to make is sound as though they were giving the same answer, but they were actually correcting their earlier incorrect statement. They are putting out the Q&As in written form, so watch for that.