To comply with regulatory requirements, management must ensure that systems or practices appropriately aggregate currency transactions throughout the bank and report currency transactions subject to the BSA requirement to file CTRs. This FinCEN guidance indicates that the currency transactions of separately incorporated businesses should not automatically be aggregated as being on behalf of any one person simply because those businesses are owned by the same person.
It is up to the bank to determine, based on information obtained in the ordinary course of business, whether multiple businesses that share a common owner are, in fact, being operated independently depending on all the facts and circumstances. Consistent with this FinCEN guidance, if the bank determines that the businesses are independent, then the common ownership does not require aggregation of the separate transactions of these businesses. However, if the bank determines that these businesses or one or more of the businesses and the private accounts of the owner are not operating separately or independently of one another or their common owner e.
Consistent with this FinCEN guidance, once the bank determines that the businesses are not independent of each other or of their common owner, then the transactions of these businesses should be aggregated going forward. To the extent this beneficial ownership information helps the bank determine that certain transactions had no apparent purpose other than to avoid triggering a CTR filing, the bank would need to consider whether filing a suspicious activity report SAR would be appropriate.
See also 12 CFR Structuring transactions occurs when a person, acting alone or in conjunction with, or on behalf of, other persons, conducts or attempts to conduct one or more transactions in currency, in any amount, at one or more financial institutions, on one or more days, in any manner, for the purpose of evading the CTR requirements.
In addition to CTRs, this regulation also applies to other currency reporting requirements, such as Form or CMIR requirements, reporting or recordkeeping requirements imposed through a geographic targeting order, or recordkeeping requirements for funds transfers, transmittals of funds, and purchases of monetary instruments. Refer to Appendix G: Structuring for additional information. Additionally, evading BSA reporting and recordkeeping requirements can result in civil and criminal penalties under the BSA.
It is recommended that you first close out of your browser and then re-open it before attempting to log into the BSA E-Filing System again. If more than one Item 2 option applies to a Part I person, a separate Part I section will be prepared on that person for each Item 2 option.
All the individual transactions a financial institution has knowledge of being conducted by or on behalf of the same person during a single business day must be aggregated. Debits must be added to debits, and credits must be added to credits. In that case, the filing should be completed with those entities on whose behalf the transaction s were conducted and on the individual who conducted the transaction Part I.
In a situation where multiple withdrawals involving several individuals have occurred throughout the day, common ownership may be relevant to a determination that aggregation is required. If multiple businesses are not operating separately and independently, the institution may reach the conclusion that their transactions should be aggregated. A CTR would be completed indicating those entities on whose behalf the transaction s were conducted and those individual s conducting the transaction s.
Each entity and individual would be listed in a respective Part I. This reasoning has traditionally been extended to the exemption process as well.
There may be instances where, at one time, an individual brings in funds to deposit to multiple accounts at the financial institution. FinCEN emphasized that financial institutions will continue to be expected to provide only that information for which they have direct knowledge. As noted in that guidance, the issuance of the FinCEN CTR does not create any new obligation or otherwise change existing statutory and regulatory requirements for the filing institution.
Discrete filers can select from the available drop-down list embedded within the CTR. Please refer to FING for further information. Financial institutions should pay particular attention to customers with non-specific occupations who continually make large cash deposits. However, the release of the FinCEN CTR did not create any new obligations or otherwise change existing statutory and regulatory expectations of financial institutions in filing the new report.
FinCEN expects, however, that financial institutions will provide the most complete filing information available within each report, regardless of whether or not the individual fields are deemed critical for technical filing purposes. What amounts do we show in Item 21 for each Part I? For example, John and Jane Smith have a joint account together. When a deposit is made into a joint account, the deposit is presumed to be made on the behalf of all account holders because all account holders have potential access to the account balance, and multiple Part Is are required.
In this example, the financial institution would complete four Part Is, two for John Smith and two for Jane Smith since each person has more than one Item 2 role. What amounts do we show in Item 22 for each Part I? If the financial institution does not have knowledge that the withdrawal was conducted on behalf of Jane Smith, then it would neither be required to nor prohibited from listing Jane Smith in a second Part I.
Therefore, if the financial institution does not have knowledge that the withdrawal was conducted on behalf of Jane Smith, the financial institution would complete a Part I on John Smith. However, if the financial institution does have knowledge the withdrawal was completed on behalf of both John Smith and Jane Smith, the financial institution must complete two Part Is.
Instead, the other boxes in Item 24 should be checked to the extent that they are applicable. Yes, this is acceptable, if the difference was a result of a financial institution following the instructions on rounding dollar amounts. Banks may implement a policy requiring customers who are deposit accountholders and who want to purchase monetary instruments with currency to first deposit the currency into their deposit accounts while treating this two-step process as one transaction.
Nothing within the BSA or its implementing regulations prohibits a bank from instituting such a policy. If the transactions take place at the branch level, the information regarding the financial institution locations where the transactions took place should be that of the branches involved.
Recent legislation has identified certain groups known as "exempt persons. The three categories of "exempt persons" are:. This was primarily due to the financial industry's concern about the right to financial privacy. On October 26, , with the passage of the Money Laundering Control Act, the right to financial privacy ceased being an issue. As part of the Act, Congress stated that a financial institution could not be held liable for releasing suspicious transactional information to law enforcement.
As a result, the next version of the CTR had a suspicious transaction checkbox at the top. CTRs were originally filed on form ; they are now filed on form In addition to a CTR, banks are also required to file Suspicious Activity Reports for transactions that they suspect may involve money from illicit sources.
CTRs since include an optional checkbox at the top of the bank employee believes the transaction to be suspicious using the SAR. A customer may decline to continue the transaction upon being informed, but this would still require the bank employee to file a CTR as well as a SAR. Deliberately evading the CTR reporting threshold is a federal crime known as "structuring. Banks do not have to tell customers about CTRs unless the customer asks.
This is distinct from a Suspicious Activity Report, which should not be disclosed to the customer. Morgan Lewis. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile.
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