Was hoping to get some opinion on this as I just had an incredibly confusing call with a FinCEN rep who I think directly contradicted guidance found in the FFIEC BSA/AML Exam book. I proposed a scenario to them regarding the purchase of a monetary instrument from member, see below:
Member comes in with $10,200 in cash. Deposits cash into account, during the same trip purchases a Cashier's Check for $9,400. The way we process the transaction is the deposit is made and the check is withdrawn from the account.
My understanding is we would file a CTR and triggers recordkeeping requirements.
Rep from FinCEN claims that two things depending on how we process the transaction can occur. First scenario if we take the $10,200 and then issue a check with that cash for $9,400 and deposit the rest in the same transaction we trigger both a CTR and Recordkeeping requirement. Second scenario, If we deposit the cash first and then issue a check in two separate transactions we only file a CTR (not including pruchase) and do not trigger the recordkeeping requirement.
Now I'm consfused because the second scenario seems to fly in the face of what I've heard in the past, so I offer clarification on the following scenario: Member Deposits $3,500 in account in one transaction, then in a second transaction (same day) withdraws funds as cashier's check for $3,001. Do we need to log this transaction?
Rep says no, because the cash was deposited first and the check was used as a withdraw from the account not using cash.
Hang up the phone, confused because I read this in the past from the FFEIC BSA/AML handbook:
FinCEN takes the position108 that when a customer purchases a monetary instrument in amounts between $3,000 and $10,000 using currency that the customer first deposits into the customer’s account, the transaction is still subject to the recordkeeping requirements of 31 CFR 1010.415. This requirement applies whether the transaction is conducted in accordance with a bank’s established policy or at the request of the customer. Generally, when a bank sells monetary instruments to deposit accountholders, the bank will already maintain most of the information required by 31 CFR 1010.415 in the normal course of its business.
Bare bones compliance, what do y'all think?
Thanks!
