Academic journal article ABA Banking Journal


Academic journal article ABA Banking Journal


Article excerpt

BSA Exemptions

Q: Would a transaction, which would be exempt from CTR (Cash Transaction Report) reporting under 31 CFR 103.22 (d) (2) be exempt if the transaction were between a U.S. corporation and its branch located in another country?

A: No. The exemptions apply only to "domestic operations" gas stated in 31 CFR 103.22 (d) (2) (i), (iv), (v) and (vi). Section 103.11 (k) defines domestic as: " When used herein, refers to the doing of business within the United States, and Limits the applicability of the provision where it appears to the performance by such institutions or agencies of functions within the United States." According to the definition, any transaction crossing the U.S. border (except the states of Hawaii and Alaska) would be covered and subject to CTR reporting. The exception would not include "territories and insular possessions as defined in Section 103.11 (tt)."

BSA and Credit Transaction Retention

Q: Banks are required to keep a record of credit transactions in excess of $10,000, not secured by real estate. So must a bank maintain a log of these transactions?

A: There are no requirements to maintain a log of these credit transactions. The requirement of 31 CFR 103.33 (a) would be found on the credit application, which should be retained. However, maintaining a log of these transactions could be helpful in retrieving any required information in the future.

CTRs for Deposits Taken Over a Weekend

Q: What should a bank do if cash deposits taken over a weekend from or on behalf of an individual total $10,000 or more, but some of the funds were deposited on Saturday and some on Sunday?

A: According to 31 CFR 22 (c) (2)" . ..(2) Multiple transactions--general. In the case of financial institutions other than casinos, for purposes of this section, multiple currency transactions shall be treated as a single transaction if the financial institution has knowledge that they are by or on behalf of any person and result in either cash in or cash out totaling more than $10,000 during any one business day (or in the case of the Postal Service, any one day). Deposits made at night or over a weekend or holiday shall be treated as if received on the next business day following the deposit." Merchant Verification of Account Balance

Q. If a merchant calls a bank to determine if sufficient funds are in an account to complete a transaction, can the bank answer the question without violating the customer's rights under the Privacy Act, 12 CFR 216? …

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