July 18, 2013 TIPS BULLETIN #13-37 To: Subject: All Credit Unions FinCEN Ruling on Armored Car Service Transactions The material in this publication is provided for educational and informational purposes only, and does not constitute legal or financial advice. Use of any material or information in this publication should never be a substitute for seeking the advice of an attorney or a certified public accountant. The Financial Crimes Enforcement Network (FinCEN) recently issued an administrative ruling (FIN-2013R001) regarding currency transaction report (CTR) filings when customers/members use armored cars. The ruling addresses circumstances when the armored car service (ACS), operating under instructions of a person other than the financial institution, transports currency to or from locations for the benefit of a customer’s/member’s account. Effective Date: Immediately; full compliance by September 30, 2013. Exceptive Relief Granted for the Completion of CTRs on Certain ACS Transactions FinCEN is authorizing an exception to the requirements of 31 CFR §§ 1010.311 and 1010.313 regarding the reporting of currency transactions. This exception applies only to transactions reportable under 31 CFR § 1010.311 that are conducted by an ACS to debit or credit the account of a financial institution’s customer/member pursuant to instructions received from the customer/member or from a third party. The exception and its application are as follows: 1. Financial institutions are required to implement adequate procedures to determine whether an ACS is acting pursuant to instructions from the financial institution, from the financial institution’s customer/member, or from a third party. 2. If the delivery to or pick-up from the financial institution (corresponding to a deposit to or withdrawal from a financial institution’s customer’s/member’s account) was performed by an ACS acting pursuant to instructions from the reporting financial institution, the customer/member would have to be identified in Section I of the CTR, but only box 24 of Section II (“Armored Car (FI Contract”) would need to be checked to satisfy the CTR requirements regarding the ACS. 3. If the delivery to or pick-up from the financial institution was performed by an ACS pursuant to instructions received from the financial institution’s customer/member or from a third party, the financial institution must complete the CTR as follows: o The deliveries to and pick-ups from the financial institution conducted by the ACS pursuant to instructions from the financial institution’s customer/member or from a third party on any one business day will be aggregated with any other currency transactions performed on behalf of the same customer on the same business day. o If the financial institution has knowledge that the aggregate of all currency deposits or withdrawals by or on behalf of a customer/member on any one business day exceeds $10,000, the financial institution will file a CTR identifying the customer and all persons conducting transactions (including the ACS and, if applicable, third parties on whose instructions the ACS conducted transactions) about whom the financial institution has obtained identifying information. July 18, 2013 o In the case of an ACS that, acting pursuant to instructions from a person other than the reporting financial institution itself, makes a delivery to or pick-up from a customer’s/member’s account in excess of $10,000 on any one business day, the financial institution will satisfy the requirement to identify the party conducting the transaction by filling in the ACS’s corporate information (corporate name, address, EIN, etc.). The name of the employee of the ACS will not be required. 4. If the financial institution has knowledge that the same ACS makes several deliveries or pick-ups below $10,000 to or from the account of the same customer/member on any one business day (regardless of the person pursuant to whose instructions the ACS transactions were conducted), for a total exceeding $10,000, the transactions will be aggregated for purposes of filing a CTR with respect to the customer/member. 5. The financial institution’s reporting obligation regarding transactions conducted by an ACS pursuant to instructions from the financial institution’s customer/member or from a third party is satisfied by filing CTRs aggregated by customer only. 6. If, in spite of implementing adequate procedures, the financial institution is unable to determine on whose instruction a specific ACS reportable transaction was conducted within the period allowed for the filing of the corresponding CTR, the financial institution may satisfy its CTR requirements by identifying the financial institution’s customer/member and the ACS that conducted the transaction. The financial institution’s obligation to identify the ACS shall be satisfied by filling in the ACS’s corporate information (corporate name, address, EIN, etc.). The identifying information of the ACS employee is not required. Additional Resources FinCEN News Release FinCEN FIN-2013-R001 Ruling Examples of CTR Completions for Transactions Involving Armored Car Services (Appendix I) Questions If you have any questions regarding this information, please contact the Research and Information’s tollfree hotline at 877.243.5728. Want to find more great information like this? Visit members.ccul.org anytime to search related topics, download TIPS bulletins and access additional resources for League members only.
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