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FinCEN Lightens Requirements on Transaction Reporting in Final Rules
By Brian Monroe
printThe U.S. Treasury Department finalized rules Thursday, lightening the requirements for financial institutions to report transactions above $10,000 on certain customers. The department's Financial Crimes Enforcement Network (FinCEN) issued proposed rules in April that recommended lifting requirements on banks to annually review the transactions of certain customers, including other banks, government agencies or entities with governmental authority. The exempted parties are known as "phase I customers." Heeding bank lobbyists' concerns and recommendations from a February Government Accountability Office report, FinCEN said it would allow additional currency transaction reporting (CTR) exemptions Thursday, including dropping a requirement that banks monitor for changes...
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A federal court fined a north New Jersey bank $5 million Monday for willfully violating the Bank Secrecy Act in an attempt to disguise $35 million in suspicious transactions, including $5 million in structured deposits.
The United Kingdom's chief financial regulator Tuesday fined Barclays PLC more than $4 million for "serious weaknesses" in its securities transaction monitoring reporting, the largest penalty issued by the agency for such problems.
Banks should use client financial statements, tax returns and audits when determining whether a business can be exempted from currency transaction reporting duties, the U.S. Treasury Department said Monday.
The country's largest banking association proposed a sweeping overhaul of U.S. anti-money laundering enforcement that would create a governmental entity responsible for overseeing Bank Secrecy Act compliance.
A Nov. 1 deadline imposed by the Bush administration for finalizing federal regulations could effectively kill a FinCEN proposal that would reduce the currency transaction reporting burden on financial institutions.
The U.S. Financial Crimes Enforcement Network has proposed amending Bank Secrecy Act regulations to reduce the paperwork banks do to exempt certain customer transactions from currency transaction reporting rules.
The Government Accountability Office, in a report issued Thursday, said financial institutions shy away from seeking exemptions that would reduce the number of CTRs they must file every year because the rules are unnecessarily complicated and they fear regulatory reprisals.
In a study expected to be issued Feb. 21, the Government Accountability Office is expected to conclude that CTRs filed by financial institutions provide essential information for law enforcement investigations, delivering a blow to industry calls for reporting relief.
U.S. regulators acknowledged the outcry from the financial industry for Bank Secrecy Act reporting relief but said they would not take any action until a government effectiveness study is released early next year, according to a congressional report released Thursday.
A bill that would reduce the number of Bank Secrecy Act related reports financial institutions must file won't become law because of opposition from law enforcement and a backlog of higher-priority bills on Capitol Hill, banking compliance experts say.
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The Seasoned Customer CTR Exemption Act would permit banks to exempt the accounts of certain longstanding U.S. business customers from filing requirements.
The measure, introduced Jan. 9 in the House of Representatives, would allow banks to exempt the deposit accounts of so-called seasoned customers from currency transaction report filing requirements.