Topic: Currency Transaction Reports (CTRs)
-
Our customer due diligence form asks for a customer’s job title, place of employment, and length of employment. Are we required to collect this information, and is it necessary for both consumer and business accounts?
—
by
No, we do not believe you must ask for a customer’s job title, place of employment, and length of employment before opening a consumer or business account, but we believe it is common to collect this information for certain customer risk profiles and for purposes of filing suspicious activity reports (SARs) and currency transaction reports…
-
When an attorney deposits more than $10,000 cash into an Interest on Lawyer Trust Account (IOLTA) on behalf of one of their clients, are they required to provide identifying information for the client so that we can file a currency transaction report (CTR) with this information? Some attorneys have been hesitant or refused to give us their client’s information in such situations.
—
by
Yes, we believe you should require an attorney to provide you with their client’s identity in such situations, since you must include this information in your CTR. When FinCEN’s regulations require financial institutions to file a CTR, the institutions also must verify and record the identity of the individual presenting the transaction and “record the…
-
For Customer Identification Program (CIP) purposes, how should we describe a person’s occupation if they are a stay-at-home mom? We believe FinCEN prefers the term “homemaker,” but we typically use “stay-at-home mom.” “Occupation” also appears as a field on items such as FinCEN’s Currency Transaction Report (CTR), and we want to make sure we are using the correct terminology.
—
by
We recommend setting a policy or procedure to ensure that you are using the terms “homemaker” and “stay-at-home parent” consistently for all customers who fit those labels and are not otherwise employed. Additionally, you should monitor such customers’ activities and “pay particular attention” if they “continually make large cash deposits,” as suggested in FinCEN’s guidance…
-
Has a determination been made as to when Thillens became a money services business (MSB)? We read that the requirement to file currency transaction reports (CTRs) related to Thillens transactions was triggered when they became an MSB, and we would like to know when this occurred to determine when the duty to file CTRs technically arose.
—
by
We recommend contacting Thillens directly to inquire as to the date it became an MSB. According to FinCEN’s MSB Registrant Search page, Thillens, Inc. renewed its MSB registration on December 29, 2020, and its MSB activities are listed as “money transmitter, other.” An entity called Thillens Armored Services, LLC appears to have filed its initial…
-
Do you have an example or template of a request for exceptive relief that we can use to request relief from FinCEN for backfiling Currency Transaction Reports (CTRs) involving Thillens (a registered money services business) replenishing our ATMs? FinCEN stated to us that we need to send in a specific request for exceptive relief from backfiling CTRs on these transactions. Additionally, may I share this letter with other individuals?
—
by
A member of our Compliance Division Advisory Committee received a sample letter to FinCEN from Thillens for the purposes of requesting exceptive relief from backfiling CTRs related to their transactions with Thillens. If you choose to use it as a template, we recommend reviewing it carefully, as not all information may pertain to your bank.…
-
We are aware of the recent FinCEN administrative ruling denying the IBA’s request for relief from currency transaction report (CTR) filing requirements for cash shipments executed by Thillens. We use Brinks to transport our cash shipments to and from our Federal Reserve account, and Brinks does not withdraw cash from its own bank accounts to fulfill our cash orders. Is Brinks a money services business (MSB), and do we need to file CTRs in relation to our cash orders fulfilled by Brinks?
—
by
No, we do not believe Brinks would be considered an MSB based on the services you describe, and we do not believe you need to file CTRs in relation to your cash orders fulfilled to and from your bank’s Federal Reserve account by Brinks. Under FinCEN’s regulations, MSBs include money transmitters that transport currency, funds,…
-
Are we required to file currency transaction reports (CTRs) for our own cash order shipments from Thillens, since they use their own account to satisfy our cash order requests?
—
by
Yes, we recommend filing CTRs for cash shipments received from Thillens as directed in a recent administrative ruling from FinCEN. While the IBA argued in its request for relief that CTR filing requirements are unnecessary for a bank’s own cash shipments executed by Thillens, FinCEN unfortunately denied our request for relief. The ruling is somewhat…
-
Thillens, a cash delivery service of ours, has sent us a notice that they are considered a money services business (MSB) and are recommending we file currency transaction reports (CTRs) for every cash shipment received from them over $10,000. They also recommended that we apply for an exception from FinCEN. Should we be filing CTRs on these business transactions?
—
by
Yes, we recommend filing CTRs for cash shipments received from Thillens as directed in a recent administrative ruling from FinCEN. While the IBA argued in its request for relief that CTR filing requirements are unnecessary for a bank’s own cash shipments executed by Thillens, FinCEN unfortunately denied our request for relief. The ruling is somewhat…
-
We have a customer that provides its customers with wire transfer services through Western Union. This customer does not have to register as a money services business (MSB) since it is an agent for an MSB. This customer requires its customers to pay cash to wire money and only sends wires of $800 at a time, although there is no limit on the number of times its customers can wire money in a day. Do we need to do a full risk assessment of this customer and create enhanced account reviews? Also, if this customer is a registered company on the New York Stock Exchange (NYSE), is it exempt from currency transaction report (CTR) filings?
—
by
We believe this customer is an MSB, and as a result, you should undertake the necessary risk assessment and account reviews required for MSBs. However, this customer would be exempt from CTR filings if it is listed on the NYSE. MSBs include “money transmitters” which FinCEN defines as “[a] person that provides money transmission services,”…
-
We are a national bank, and we recently moved our wealth and farm management groups into a separate, state-chartered trust company that will be regulated by the IDFPR and the Federal Reserve. Do the ID theft/red flag requirements and the FACT Act apply to the trust company? Also, if our trust company obtains cash from an estate in a fiduciary capacity and deposits the cash at our bank, which entity is responsible for the CTR filing? Would both the bank and the trust company file the CTR? If the trust company files a SAR on its own, could it use the bank’s filing number?
—
by
State-chartered trust companies are subject to the Fair and Accurate Credit Transactions Act of 2003 (FACTA), including its identity theft/red flag requirements. With respect to who should file currency transaction reports (CTRs) in the scenario in your question, we believe that either the bank or the trust company may choose to file the CTRs for…