CTR Exemption Changes
By Amy Kudlacek
With all the recent regulatory changes (RESPA, TIL, etc.) it seems like we keep getting more and more thrust upon us. Well, we finally have some good news to report. On December 4, 2008, FinCEN announced changes to the CTR exemption requirements. These changes will actually leave you with less work to do. Now that's a new one!
The changes are as follows:
- Banks will no longer have to file Phase I exemption forms for other banks, Federal or State government, or entities with governmental
authority. Additionally, banks will no longer need to annually review these entities for continued eligibility or suspicious activity. - The definition of "frequent transactions" for purposes of Phase II exemption eligibility will mean five reportable transactions per year.
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Banks will not have to file biennial renewals for Phase II exemptions. However, banks must still review these exemptions annually to ensure the entity continues to be eligible for the exemption and for suspicious activity.
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Eligible non-listed companies and payroll customers will be eligible for a Phase II exemption after either 1) two months or 2) conducting a risk analysis of the legitimacy of the customer's transactions.
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Banks will no longer be required to record and report changes of control for non-listed companies and payroll customers.
These changes will go into effect January 5, 2009. Merry Christmas a little early!