Who is exempt from BSA?

In order to be eligible for exemption, the company must maintain a transaction account for two months, have at least eight large currency transactions over a year, and must be eligible to do business within the United States.

Who can be treated as an exempt person?

31 CFR 1020.315(e)(5). The designation of an exempt person may be made by a parent holding company or one of its bank subsidiaries on behalf of all bank subsidiaries of the holding company, as long as the designation lists each bank subsidiary to which the designation shall apply. 31 CFR 1020.315(e)(6).

Who is exempt from currency transaction reporting?

Under Phase 1, transactions conducted by banks, government departments or agencies, and listed public companies and their subsidiaries are exempt from CTR reporting. Under Phase 2, transactions in currency by businesses that meet specific requirements are exempt from CTR reporting.

What is designation of exempt person?

The customers that the bank may exempt are called “exempt persons.” An exempt person may be a bank, government agency/government authority, listed company, listed company subsidiary, eligible non-listed business, or payroll customer.

What is a designation of exempt person form?

This form must be used by a bank or other depository institution to designate an eligible customer as an exempt person from currency transaction reporting rules of the Department of the Treasury (31 CFR 103.22). File this form with: U.S. Department of the Treasury, P.O. Box 33112, Detroit, MI 48232-0112.

When must you file a SAR?

within 30 calendar days
Filing Timelines – Banks are required to file a SAR within 30 calendar days after the date of initial detection of facts constituting a basis for filing.

Who determines when a SAR needs to be filed?

The U.S. Department of the Treasury’s financial recordkeeping regulations (31 CFR 1020.320) require federally supervised banking organizations to file a SAR when they detect a known or suspected violation of federal law meeting applicable reporting criteria.

What is the difference between STR and SAR?

The main difference between these two is the object of suspicion. For a SAR the object of suspicion is the activity. For STRs the object is the transaction.

Are government entities exempt from CIP?

CIP Requirements for Government Entities Therefore, if a government agency falls within the definition of 103.22(d)(2)(ii) or (iii), it is technically exempt from CIP rules – unless the financial institutions CIP program does not exempt such agencies.

What are BSA requirements?

Under the Bank Secrecy Act (BSA), financial institutions are required to assist U.S. government agencies in detecting and preventing money laundering, such as:

• Keep records of cash purchases of negotiable instruments,
• File reports of cash transactions exceeding $10,000 (daily aggregate amount), and.

How do I designate an exempt person in BSA?

Designation of Certain Exempt Persons If a bank chooses to use the exemption process, then it must designate an exempt person by filing a one-time Designation of Exempt Person (DOEP) report. The report must be filed electronically through the BSA E-Filing System by the close of the 30-calendar-day period 4 31 CFR 1020.315(b)(6)-(7).

How to determine whether a customer is eligible for designation as exempt?

Select a sample of filed Designation of Exempt Person reports to determine whether: The reports are filed in accordance with FinCEN instructions within 30 days of the first reportable transaction that the bank sought to exempt. The customer is eligible for designation as exempt (see categories of Phase I exempt persons and Phase II exempt persons).

Are depository institutions required to file a designation of Exempt Person form?

Answer 1: Depository institutions are not required to file a Designation of Exempt Person form (FinCEN 110) with respect to the transfer of currency to or from any of the 12 Federal Reserve Banks in accordance with an Interim Rule published by FinCEN in the Federal Register (65 FR 46356-46361) on July 28, 2000.

What is an ineligible business activity under the BSA?

One of the ineligible business activities listed in 31 CFR § 1020.315 is serving as a financial institution. Under the BSA, the definition of “Financial Institution” includes money services businesses (MSBs) [31 CFR 1010.100 (ff)].