BSA/AML Examiner School Case Study

Internal Use Only

Ineligible Businesses Certain businesses are ineligible for treatment as an exempt non-listed business. An ineligible business is defined as a business engaged primarily in one or more of the following specified activities: • Serving as a financial institution or as agents for a financial institution of any type; • Purchasing or selling motor vehicles of any kind, vessels, aircraft, farm equipment, or mobile homes; • Practicing law, accounting or medicine; • Auctioning of goods; • Chartering or operation of ships, buses or aircraft; • Operating a pawn brokerage; • Engaging in gaming of any kind; • Engaging in investment advisory services or investment banking services; • Operating a real estate brokerage; • Operating in title insurance activities and real estate closings; Engaging in trade union activities; • Engaging in any other activity that may, from time to time, is specified by FinCEN. A business that engages in multiple business activities may qualify for an exemption as a non-listed business as long as no more than 50 percent of its gross revenues per year are derived from one or more of the ineligible business activities listed in the rule. Effect on Other Regulatory Requirements The exemption procedures do not have any effect on the requirement that the Bank file a SAR. If the Bank has improperly exempted accounts, an examiner may require Senior Management to revoke the exemption. In any case, the Bank is required to begin filing CTRs and contact the Internal Revenue Service (IRS) to request a determination on whether the back-filing of unreported currency transactions is necessary. XV. Purchase and Sale of Monetary Instruments Recordkeeping Policy and Procedures Overview It is the policy of the Bank to comply with statutory and regulatory requirements of all purchases and sales of monetary Instruments for currency in amounts between $3,000 and $10,000. The records of monetary instruments sales must be retained for 5 years and be available to the appropriate agencies upon request. The objective of this policy and procedures is to ensure the following: • Maintain a chronological log for each month of the sale of all Cashier's checks, which were purchased for currency in the amount of $3,000 to $10,000 inclusive. • Contemporaneous purchases of same or different types of instruments totaling $3,000 or more must be treated as one purchase. Multiple purchases during one business day totaling $3,000 or more must be aggregated and treated as one purchase if the Bank has knowledge that the purchases have occurred. • If a purchase of monetary instruments (i.e., Cashier's Checks) for currency exceeds $10,000 FIS will prompt the teller to complete the MIL screen, however the CTR screen must be completed. If a monetary instrument is purchased for currency for more than $3,000 but equal to or less than $10,000, when aggregated with the person's other cash-in transactions on the same day exceeds $10,000, both the MIL screen and the CTR screen must be completed.

For Training Purposes Only

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