![]() Banks are no longer required to file a biennial renewal or record and report a change of control for an exempt Phase II customer. Banks may use a hybrid approach to designate an otherwise eligible customer for a Phase II exemption: The customer may be eligible for exemption after maintaining a transaction account for two months (previously twelve months were required) or, the customer may be eligible for exemption in less than two months if the bank conducts a risk-based analysis to form a reasonable belief that the customer has a legitimate business purpose for conducting frequent or regular large currency transactions. Waiting time for eligibility decreased.Banks may designate an otherwise eligible non-listed business customer or payroll customer 8 for exemption after the customer has within a year conducted five or more reportable transactions in currency (previously, eight or more reportable transactions were required). "Frequently" decreased to five reportable transactions.The DOEP filing and annual review are still required for businesses listed on a major national stock exchange ("listed businesses"), non-listed businesses, and payroll customers. ![]() or State governments, or entities acting with governmental authority. 7 Banks are no longer required to file a designation of exempt person ("DOEP") report for, or conduct an annual review of, customers who are other depository institutions operating in the United States, U.S. Elimination of designation and annual review for most Phase I customers.The final rules, which went into effect on Januand June 7, 2012, make the following substantive changes to the previous CTR exemption system: Overview of the requirements of the final rules: The GAO also concluded that additional web-based guidance was necessary to help banks determine eligibility for exemption, which FinCEN is addressing in this guidance document.ī. In this same report, the GAO recommended several changes to the exemption requirements, which FinCEN addressed in the final rules. In 2008, the Government Accountability Office ("GAO") issued a report 6 concluding, among other things, that the information provided on CTRs provides unique and reliable information essential to a variety of efforts, including law enforcement investigations, regulatory and counter-terrorism matters. 4 The regulations in the Bank Secrecy Act also provide banks with the ability to exempt certain customers from currency transaction reporting. The Bank Secrecy Act and its implementing regulations require financial institutions to file a CTR on any transaction in currency of more than $10,000. ![]() 2 This guidance provides examples and answers to commonly asked questions regarding the final rules 3 that FinCEN issued in December, 2008 and June, 2012, which amended the currency transaction report ("CTR") exemption requirements ("the final rules"). The Financial Crimes Enforcement Network ("FinCEN") is issuing this guidance to help banks 1 determine whether a customer is eligible for exemption from currency transaction reporting requirements.
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