![]() In addition,the Bank believes that its locality and the businesses that locality supports are potentially highriskfor money laundering. The Bank has noted that employees of Customers 2 and 3 consistently possess and provide thenecessary information on the original payee of each cashed check in excess of $10,000 when theyengage in transactions similar to those described above, so that the Bank may fully completePart 1, Section A of the CTRs relating to the checks cashed by Customers 2 and 3. The currency transaction reporting provisions donot necessarily require a financial institution to refuse a transaction if all of the informationrequired for the completion of the CTR is not available or provided by the transactor the decisionwhether to accept or reject a given transaction rests solely with the financial institution andshould be made based upon a number of facts and circumstances unique to each transaction. In general, a financial institution must (i) make a reasonable and good faith effort to obtain theinformation necessary to complete a CTR and (ii) evaluate the reasons why such information isnot available or provided during the transaction. In those circumstances, the Bank is unable to complete fully Part A of theCTR. The employee of Customer 1 who brings the double-endorsed checks to the Bank consistentlyeither does not possess or refuses to provide to the Bank the information necessary to completePart A of the CTR for seafood suppliers of Customer 1 who are the original payees of checks inexcess of $10,000. Question 2 - Customer 1's Failure to Provide Necessary Information In addition, a Section Ashould also be completed using information about Customer 1 for those checks that donot exceed $10,000. ![]() If so, the Bank should check the“multiple persons” box (No. If one or more of the batch of checks being cashed during a business day by Customer 1in this fashion for a particular original payee exceeds $10,000 (or two or more checkspayable to the same or related payees exceed $10,000 in the aggregate), the CTR filed forthat day with respect to Customer 1 should include a separate Section A for each suchpayee, completed using information about such payee.To the extent that each double-endorsed check is payable to a different person and doesnot exceed $10,000 (though the checks exceed $10,000 in the aggregate), informationabout the person that is the original payee of each check (i.e., the shrimpboat captain) isnot required and Section A of the CTR should be completed using information aboutCustomer 1.Section A calls for information about the "Person(s) on whoseBehalf Transaction(s) is Conducted." The answer depends upon the amount of each check thatCustomer 1 is exchanging for currency. Your first question relates to the manner in which the Bank should complete Section A of theCTR in these circumstances. Often the total amount of the multiple checks brought in to the Bank by Customer 1during a business day to be cashed for this reason exceeds $10,000, thereby requiring the filing ofa CTR. Some of those checks will be for$10,000 or less others may exceed $10,000, depending upon the purchase price of the catch ineach case. Question 1-Completion of Section A of CTRīecause Customer 1 purchases seafood from a number of boats, it often cashes several checks,endorsed back to it by the boat captains, on the same day. The Bank believes that Customer 1uses the currency received when the check is cashed to pay the seafood supplier, ultimately, incurrency.Ĭustomers 2 and 3 are also seafood processing companies that are customers of the Bank.Customers 2 and 3, like Customer 1, engage in the transactions described above to pay seafoodsuppliers for seafood. The captain, in turn, endorses the check back to Customer 1,who then sends an employee to the Bank to cash the check. Customer 1 is a seafood processing company.When it purchases seafood from a shrimpboat captain (or similar seafood supplier boat business),it customarily writes a check for the amount of the purchase price, drawn on Customer 1’saccount at the Bank, to the captain. We understand the relevant facts to be as follows. ![]() Our conversations make clear that the Bank supports both the spirit and intent of the BankSecrecy Act (the "BSA"), and we appreciate the diligence shown by you and your colleagues inseeking to confirm how to properly comply with the BSA. Your question was originallyraised in a letter dated August 16, 2000, which was forwarded to the Financial CrimesEnforcement Network (“FinCEN”).1 There have also been follow-up conversations with myoffice. You have asked how (the "Bank") should properly report certain currency transactionson Form 4789 (a "CTR") in the circumstances described below.
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