Financial Institutions May Be Exempt from CTR Reporting Requirements
A significant portion of financial institutions may be exempt from Currency Transaction Report (CTR) reporting requirements if they derive more than 50% of their gross revenue from a non-listed business. This exemption applies to businesses that meet all the criteria listed in 31 CFR § 1020.315.
Exemptions and Exceptions
- Financial institutions deriving more than 50% of their gross revenue from a non-listed business may be exempt from CTR reporting requirements.
- Check cashers that derive more than 50% of their gross revenue from cashing checks and/or other ineligible business activities are not exempt from CTR reporting requirements.
- Government officials conducting official duties are exempt from CTR reporting requirements when engaging in transactions over $10,000 in currency or monetary instruments. However, non-bank financial institutions are still required to file a CTR in such cases.
Training Resources
The Financial Crimes Enforcement Network (FinCEN) does not currently prepare or distribute training videos or materials. Instead, it frequently participates in conferences and other forums to discuss BSA reporting and recordkeeping requirements, as well as counter-money laundering efforts. FinCEN’s publications, including SAR Guidance, Strategic Analytical Reports, and The SAR Activity Review: Trends, Tips & Issues, are available on its website.
Additionally, industry associations and private sector sources provide valuable training resources for financial institutions. For example:
- Industry associations
- Private sector sources
Large Currency Transactions by Government Officials
Government officials sometimes need to conduct large currency transactions as part of their official duties. For example, law enforcement officials may convert seized currency into monetary instruments for security reasons. Banks are not required to file a CTR in such cases, but non-bank financial institutions are still required to do so.
Independent Reviews and Documentation
Money services businesses are required to conduct independent reviews on a periodic basis to identify problems and weaknesses in their anti-money laundering programs. These reviews should cover all actions taken by or defined as part of the responsibility of the designated compliance officer.
The person or persons responsible for conducting the review must document the scope of the review, procedures performed, transaction testing completed (if any), findings of the review, and recommendations to management for corrective actions (if any). All documentation should be made accessible to government examiners and law enforcement personnel who have authority to examine such documents.
Conclusion
Financial institutions that derive more than 50% of their gross revenue from a non-listed business may be exempt from CTR reporting requirements. Check cashers and government officials conducting official duties are subject to different reporting requirements. FinCEN provides training resources, while industry associations also offer valuable training materials. Independent reviews and documentation are required for money services businesses to comply with anti-money laundering regulations.