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Can you summarize Assessing Compliance with BSA Regulatory Requirements > Transactions of Exempt Persons (2021)?
Assessing Compliance with BSA Regulatory Requirements > Transactions of Exempt Persons (2021)
Short Summary
This document outlines the regulatory requirements for banks regarding transactions of exempt persons under the Bank Secrecy Act (BSA). Banks are required to electronically file a Currency Transaction Report (CTR) for each transaction in currency over $10,000, but certain customers may be exempt from this reporting requirement. The exemptions are categorized into Phase I and Phase II exempt persons. Phase I exempt persons include banks, government agencies, listed entities, and their subsidiaries. Phase II exempt persons include non-listed businesses and payroll customers that meet specific criteria. Banks must designate exempt persons by filing a Designation of Exempt Person (DOEP) report and conduct annual reviews to ensure continued eligibility. The document also provides guidance on determining eligibility, maintaining supporting information, and the safe harbor for failure to file CTRs. Examiners should assess the bank’s compliance with exemption requirements and the adequacy of internal controls. Non-compliance may result in penalties and revocation of exemptions.
Whom does it apply to?
Banks
What does it govern?
BSA regulatory requirements for exemptions from the currency transaction reporting requirements
What are exemptions?
Exemptions are available for certain types of customers, including Phase I exempt persons (such as banks, government agencies, listed entities, and their subsidiaries) and Phase II exempt persons (such as non-listed businesses and payroll customers) that meet specific criteria.
What are the Penalties?
Penalties for non-compliance or providing false or incomplete information include potential liability for failure to file Currency Transaction Reports (CTRs) and revocation of exemptions.
Jurisdiction
U.S. Federal Government