11/26/2012
Business using RDC to deposit checks that it issues to and cashes for non-employee service providers. We bank a local recycling service. Historically, this customer has paid individuals who bring in scrap metal in cash. However, their regulators are now pressuring them to issue these individuals checks in lieu of cash payments. Our customer would like to issue these checks, immediately exchange them for cash and then deposit these checks via RDC. I understand that Fincen issued guidance (FIN 2006-G005) indicating that this activity is not considered MSB activity even in cases where the dollar amount is over $1,000, for one person and in one day. I would consider the overall risk of this activity to be low given that our customer is writing, cashing and depositing only their own checks and therefore disputes are unlikely and would only lead back to our customer. I am wondering if there are any requirements that the bank needs to enforce on our customer regarding this activity, such as CIP / ID requirements for the payees of these checks. I imagine that the individuals who are collecting scrap and turning it in for payment may be at a higher risk for ID problems, either lack thereof or forged / altered. Is this the banks concern?
10/01/2012
If a government agency (DEA) sends a representative to purchase an Official Check do we need to get the identifying information on the government representative?
07/02/2012
We have a liquor store that cashes checks over $1,000. In these instances, the customer is buying say $300 worth of products at the store on a $1,200 check and getting $900 back in cash. Does this trigger the MSB requirement? If not, what is our responsibility to ensure this is actually what is going on?
11/22/2010
What is the ruling when a foreign customer deposits over $10,000 cash using an ATM at our financial institution? The same card number was used and over $10,000 was deposited, using two separate deposit envelopes. There is no customer information available to complete the CTR.
07/19/2010
When our bank merged at the first of the year, it was with a branch of another bank. The branch we merged with broke away from their former bank and brought certain deposit and loan accounts over to the combined bank, with it as part of the deal. Five of the customers brought over from the other bank had been granted Phase II exemptions from CTR filing. During a recent exam, it was noted that our bank had not filed exemptions for these customers under the new bank, and thus failed to file some CTRs from Jan 1 thru 6/15 (date of discovery). I have contacted FinCen and IRS for guidance on a back filing determination, but I have an additional issue. We plan to exempt the customers under our bank, but I’m not sure of how to handle this. The date of discovery of this issue was 6/15. According to FinCen we should not go back and file any CTRs until receive outcome of the back-filing determination. Going forward from 6/15 we will file CTRs. Time-wise, these customers are past the two month period and three of the five customers have had more than five reportable transactions since the first of the year, but not since the date of discovery. Do we need to wait for them to have five reportable transactions and file CTRs appropriately since the date of discovery in order to file the exemptions, or can we go ahead and file the exemptions without each one having had the five transactions? Any input is welcome as I have never dealt with an issue like this before.
07/19/2010
We have three restaurants that are owned by the same individual, and each of the businesses has a cash deposit just about every day. Our operations manager wants our tellers to combine the cash deposits of the three companies for CTR filing, because the same individual benefits from deposits to all three accounts. Is that correct?
11/01/2005
A common gripe of financial institutions is that they maintain compliance programs and file CTRs and SARs but don't see results.
09/01/2005
Question: We're having a discussion on whether or not to file SARs on sub-contractors that are cashing checks in order to pay their laborers.
07/18/2005
Where do I find the final FinCen travel rule?
07/04/2005
In a recently posted Guru Q&A relating to the annual review of government agency exemptions from CTRs, the guru stated those exemption's must be reviewed annually. I do not believe this is correct. Everything I have read states that annual reviews are not required for government entitites that are exempt under the Phase I exemptions. Could you point me to something from FinCEN or the BSA rules that mandates the annual reviews for government entities?