When filing a CTR you must verify ID?
Financial institutions must file a form 4789, Currency Transaction Report (CTR) on transactions in currency in excess of $ 10,000, and must verify and record information about the identity of the person(s) who conduct(s) the transaction in Part I of the CTR.
What are BSA reporting requirements?
Specifically, the act requires financial institutions to keep records of cash purchases of negotiable instruments, file reports of cash transactions exceeding $10,000 (daily aggregate amount), and to report suspicious activity that might signify money laundering, tax evasion, or other criminal activities.
How can a beneficial owner be identified?
That is, covered financial institutions must identify each beneficial owner by obtaining their name, date of birth, address, and identifying number (such as a social security number or other identifying number permissible under the CIP rule), and verify their identities.
What designations are exempt from CTR reporting?
BSA—Who Can Be CTR Exempt: Phase I vs. Phase II
- Auctioning of goods.
- Chartering or operating ships, buses, or aircraft.
- Engaging in gaming of any kind, such as selling lottery tickets.
- Engaging in investment advisory or investment banking services.
- Engaging in union activities.
- Operating a pawn brokerage.
What ID is acceptable for Patriot Act?
* For persons without a SSN/TIN, the ID number must be from one of the following: passport, alien ID card, or any other government issued document evidencing nationality or residence and bearing a photograph or similar safeguard.
What are the main requirements of the customer identification program CIP rule?
The CIP rule requires that a bank retain the identifying information obtained about the customer at the time of account opening for five years after the date the account is closed or, in the case of 7 Page 8 credit card accounts, five years after the account is closed or becomes dormant. 31 C.F.R.
Is compliance with BSA mandatory?
BSA compliance is required for banks and other regulated financial institutions.
What are the two prongs for identifying a beneficial owner?
The CDD Rule has two “prongs” of beneficial ownership: an ownership prong, and a control prong.
In which company identification and verification of beneficial owner is not necessary?
C. Where the client or the owner of the controlling interest is a company listed on a stock exchange, or is a majority-owned subsidiary of such a company, it is not necessary to identify and verify the identity of any shareholder or beneficial owner of such companies.
What is designation of exempt person?
The customers that the bank may exempt are called “exempt persons.” An exempt person may be a bank, government agency/government authority, listed company, listed company subsidiary, eligible non-listed business, or payroll customer.
Are non-listed businesses exempt from CTR reporting?
Answer: No. To be eligible for exemption, any affiliated entity must meet the definition of “subsidiary” found at 31 C.F.R. § 1020.315(b)(5), which requires that the listed business own at least 51% of the common stock or analogous equity interest of the entity in question.
What are the minimum customer identification requirements?
This must include the customer’s name, date of birth (for an individual), address, and identification number (31 CFR § 1020.220(a)(2)(i)). 4. number and country of issuance of any other government-issued document showing nationality or residence and bearing a photograph or similar safeguard.
What is customer identification procedure?
Customer Identification Procedure ( CIP ) Customer identification means identifying the customer and verifying his/ her identity by using reliable, independent source documents, data or information.
When should a CTR be completed?
CTRs must be filed whenever a customer makes a currency transaction exceeding $10,000, or for multiple transactions if the sum exceeds $10,000 in one day.
What is a CTR reportable transaction?
A currency transaction report (CTR) is a report that U.S. financial institutions are required to file with FinCEN for each deposit, withdrawal, exchange of currency, or other payment or transfer, by, through, or to the financial institution which involves a transaction in currency of more than $10,000.
What are the four components of CIP?
It would address the key elements of the CIP, such as the customer information required, the information verification procedure including comparison to government watchlists, records and retention, compliance with other applicable laws, and evidence of action related to non-verified information.
What types of verification are allowed per the CIP rule?
CIP Requirements for Individuals The most common types of documentary verification for individuals include driver’s licenses, state-issued ID cards, passports and military IDs.
What is the Financial Transaction Reports Act 1988?
An Act to provide for the reporting of certain transactions and transfers and to impose certain obligations in relation to accounts, and for related purposes This Act may be cited as the Financial Transaction Reports Act 1988.
What is Section 2 (1) of the financial transaction reports Amendment Act 2006?
(u) Subsection 2(1) (item 2) of the Financial Transaction Reports Amendment Act 2006provides as follows: (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table.
What are the reportable details of a significant cash transaction?
(1) The reportable details of a significant cash transaction that a solicitor, a solicitor corporation or a partnership must include in a report prepared under subsection 15A (1) are set out in the following table. (2) The reportable details required by items 3 and 4 of the table are those details as known to the person making the report.
What is the account reporting and Reporting Act?
An Act to provide for the reporting of certain transactions and transfers and to impose certain obligations in relation to accounts, and for related purposes Administered by: Attorney-General’s