Skip to content

CTR Reporting - Never Exempt

Question: 
Our BSA procedures state that "individuals are never exempt from CTR reporting. Cash out transactions, currency exchanges and purchases of cashier's checks are never exempt from reporting." Is this a true statement? I have been unable to find information to support it.
Answer: 

Answer by David Dickinson:Your procedures are correct. An individual cannot be exempted. Banks may exempt qualifying businesses from the Currency Transaction Report requirements. There are two types of exemptions, Phase I exemptions which are cash transactions with banks, municipalities and businesses listed on the three stock exchanges need not be reported and Phase II exemptions which are cash transactions into accounts of businesses (usually smaller businesses) that have a routine need for large amounts of currency need not be reported. Refer to 31 CFR 103.22(d) for more information.

Answer: 

Answer by John Burnett:An individual may be exempted if he or she is a sole proprietor and the exemption covers transactions in his or her business account(s) only. That exemption has to qualify on all points under the requirements in section 103.22(d). Phase I exemptions cover CTRs for all reportable cash transactions, including currency exchanges, cash purchases of monetary instruments, loan payments, etc., to the extent they are conducted on behalf of the exempt business and not on behalf of another person. Note that the exemption from CTRs does not cover your bank's requirement to maintain records of cash purchases of monetary instruments, etc. Phase II exemptions only cover CTRs on transactions in the exempt business's qualified accounts, so the exemption covers deposits and withdrawals from those accounts and no other activity.

First published on BankersOnline.com 3/10/08

First published on 03/10/2008

Filed under: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics