Regulatory Alerts2009-08-31
Added
FinCEN Guidance on Determining Eligibility for Exemption from Currency Transaction Reporting Requirements
Banks are no longer required to file a designation of exempt person (DOEP) form or conduct an annual review for most Phase I customers, including other depository institutions and government entities, under the final rule effective January 5, 2009. For non-listed business customers, the threshold for "frequently" conducting reportable transactions was reduced to five per year, and the waiting period for Phase II eligibility decreased to two months, or less if a bank performs a risk-based analysis. This FinCEN guidance clarifies that the risk-based approach for Phase II customers applies only to the waiting period, not the transaction frequency, and that Phase II exemptions are limited to transactions conducted through exemptible accounts. Additionally, banks are not required to back-file currency transaction reports (CTRs) for customers found ineligible during an annual review if they met criteria in the preceding year.