BSA/AML Examiner Training Series 2

31 CFR Chapter X – Financial Crimes Enforcement Network (Continued)

Code

Failure to document monitoring of exempt person transactions Section 1020.315(e)(1) of the Treasury Department’s Bank Secrecy Act regulations requires that a covered financial institution must take steps to assure itself that a person is an exempt person, to document the basis for its conclusions, and document its compliance using measures that a reasonable and prudent financial institution would take to protect itself from loan or other fraud or loss based on the misidentification of a person’s status. In the case of the monitoring system, a covered financial institution should document that it has taken prudent steps to identify suspicious transactions. Failure to file CTR for transactions of an agent of an exempt person Section 1020.315(f) of the Treasury Department’s Bank Secrecy Act regulations states that a transaction carried out by an exempt person as an agent for another person who is the beneficial owner of the funds that are the subject of a transaction in currency is not subject to the exemption from reporting contained in Section 1020.315(a). Failure to file CMIR for international transactions over $10M Section 1010.340(a) and (b) of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to file a Report of International Transportation of Currency or Monetary Instruments (FinCEN Form 105) for each applicable transaction. Failure to report foreign financial accounts Section 1010.350 of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to properly report with respect to each account in a foreign country over which the covered financial institution has signature authority or in which it has a financial interest. Untimely filing of CTR Section 1010.306(a)(1) of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to file a Currency Transaction Report (FinCEN Form 104) within the prescribed time period. Failure to furnish information required in CTR Section 1010.306(d) of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to furnish all information called for in Currency Transaction Reports (FinCEN Form 104) filed. Failure to retain CTR for five years Section 1010.306(a)(2) of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to retain a copy of each Currency Transaction Report (FinCEN Form 112) filed for a period of 5 years from the date of the report.

60,006

60,007

61,000

62,000

63,000

63,001

63,002

Revised 5/3/2023

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