Gunster – Banking Advisory, December 2008
Today, the Financial Crimes Enforcement Network(“FinCEN”) announced the issuance of a final rule (“Final Rule”) setting forth new criteria to allow depository institutions to exempt transactions of certain customers from the requirement to file Currency Transaction Reports (“CTRs) for transactions incurrency in excess of $10,000.
The Final Rule provides that depository institutions are no longer required to file an initial Designation of Exempt Person form (DOEP) (FinCEN Form 110) for customers that are depository institutions, federal, state, or local governments, or entities exercising governmental authority (“Phase I Customers”), nor to annually review the continued eligibility of these customers.
Pursuant to the Final Rule, depository institutions will now be able to consider an otherwise eligible non-listed company or a payroll customer (“Phase II Customers”) for exemption after either two months (previously twelve months), or after conducting a risk-based analysis of the legitimacy of the Phase II Customer’s transactions.
Other revisions found in the Final Rule include:
