Money Laundering


  The Financial Crimes Enforcement Network (FinCEN) published guidance designed to enable depository institutions to more easily determine and document certain business customers’ eligibility for exemption from currency transaction reporting.

 

The guidance is expected to ease compliance with regulatory requirements and enhance supervisory consistency. It seeks to clarify for depository institutions and examiners the variety of supporting information that is suitable for substantiating that certain business customers that engage in multiple business activities are eligible for exemption from currency transaction reporting.

 

Otherwise eligible businesses that engage in multiple business activities may qualify for an exemption from currency transaction reporting provided that no more than 50% of their annual gross revenues are derived from one or more ineligible business activities. FinCEN clarifies that depository institutions are not expected to be able to establish the exact percentage of an eligible business customer’s annual gross revenues that are derived from ineligible business activities. A depository institution must consider and maintain materials and other supporting information that allow it to substantiate that the decision to exempt the customer from currency transaction reporting was based upon a reasonable determination that the customer derives no more than 50% of its annual gross revenues from ineligible business activities.

 

The guidance is available at www.fincen.gov.

 

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