Money Laundering, Terrorism & Financial Institutions
Published by Civic Research Institute, civicresearchinstitute.com
 
USA PATRIOT ACT MONITOR NEWS RELEASES

USA PATRIOT Act Monitor News Release: Aggregation for CTR filing
1/31/2003 7:15:20 AM Eastern Standard Time

FinCEN has provided a specific instance, in FinCEN Ruling 2003-1 (available on the FinCEN website at "What's New"), of when two transactions must be aggregated for determining if the $10,000 threshold has been crossed for currency transaction reporting. Though dealing with money transmitters, it broadly applies to any financial institution with agents or branches. The question, posed to FinCEN in an email, asks whether a CTR must be filed if two separate agents of a money transmitter licensed in a particular state each wire $7,000 to the same individual for the same customer on the same day. Neither agent is aware of the other transaction, but the money transmitter is aware of both. The answer, not surprisingly, is that a CTR must be filed because, under 31 CFR 103.22(c)(2), the money transmitter has knowledge of multiple transactions occurring by or on behalf of a person result in cash in or cash out totaling more than $10,000 during one business day. See 31 CFR 103.22(c)(2). The reporting obligation does not lie with the agents, because they do not know about both transactions. For the cash-out aspect, it does not matter if there are one recipients or two. However, if another money services business operating under BSA requirements but unrelated to the transmitter, issues the proceeds to the same individual, it would have an obligation to report under the cash-out requirement.


 

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