DOEP FAQs – Has FinCEN issued Guidance on Exemptions from CTR Reporting Requirements?

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Q:  Has FinCEN issued Guidance on Exemptions from CTR Reporting Requirements? 
 
A:  Yes.  FinCEN has issued FIN-2012-G003.  The issuance includes the following excerpt:
 
These final rules, along with the existing requirements established by previous rulemakings, have simplified the exemption process by generally authorizing a bank to treat a customer as exempt from currency transaction reporting under the following circumstances:
 
 
The chart above indicates that for Phase I customers, a bank may immediately treat as exempt any eligible entity without concern for the time it has been a customer of the bank or the number of reportable transactions it has conducted. Additionally, because the "ineligible businesses" provision applies only to non-listed business exemptions, a Phase I customer may be treated as exempt regardless of their involvement in such activities. For all Phase I customers other than listed businesses and their subsidiaries, no DOEP or annual review is required.
 
Before treating a non-listed business or payroll customer as exempt, a bank must first determine that the customer has conducted five or more transactions within the previous year, has been a customer of the bank for at least two months (or less time on a risk-assessed basis), and, in the case of non-listed businesses, derives no more than 50% of its gross revenues from any ineligible business activity. 9
 
Banks must file DOEP reports and conduct annual reviews for all Phase II customers (whether they are non-listed businesses or payroll customers), as well as for listed businesses and their subsidiaries.
 
The final CTR exemption rules do not relieve banks of their separate obligation to conduct suspicious activity monitoring and reporting for both Phase I and Phase II exempt customers.10
 
 
 
ADDITIONAL INFORMATION:
This information was obtained from FinCEN’s issuance FIN-2012-G003 – Guidance on Determining Eligibility for Exemption from Currency Transaction Reporting Requirements, which may be found here: 
 

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