To address these concerns, we have compiled a list of questions and answers on RRT aggregation below. Don`t forget to check out the rest of our beneficial ownership resources as well! 4 A person who gives or receives money because of his or her agency relationship with a financial institution is not a transactor within the meaning of the requirements of the CTR. Instead, the transactor is the person who gives the change to the agent of the financial institution or receives the currency from the agent of the financial institution. It is assumed that a person who transacts with the representative of a financial institution makes a transaction directly with the financial institution. If the financial institution receives or provides money through the financial institution`s agent through multiple transactions with the same person, the financial institution should consider aggregating the amounts of those transactions in order to comply with the requirements of the RTC. See FIN-1988-R005 (“Knowledge by the agent of the Bank […] the fact that the currency was received in several transactions is attributable to the bank. The bank must ensure that […] its representative … receives all the necessary information and identifications [to the bank] to complete [and submit] the CTR”). Based on the comments received and the recognition that some financial institutions may have had to change their business processes to comply with the rules, FinCEN decided that it would temporarily maintain the 25-day compliance period set out in its previous specifications until March 31, 2013 for registrants who needed to update their systems to comply with established regulatory requirements.

This temporary extension of notification requirements should give applicants sufficient time to adjust filing schedules to meet established regulatory requirements. Any financial institution (with the exception of a casino, which must instead file Form 836a and the U.S. Postal Service, for which there are separate rules), must file Form 4789 (CTR) for any deposit, withdrawal, currency exchange or other payment or transfer by, through or to the financial institution that involves a transaction in a currency greater than $10,000. Multiple transactions must be treated as a single transaction if the financial institution knows that (1) they are made by or on behalf of the same person and (2) result in a currency received from the financial institution (collection) or a currency disbursed by the financial institution that totals more than $10,000 on a business day. For a bank, a business day is the day on which transactions are regularly recorded in customers` accounts, as is usually communicated to custodian customers. For all other financial institutions, a business day is a calendar day. In this context, the institutions should refer to the FINCEN judgments FIN-2001-R002 and FIN-2012-G001. For example, the requirement to file a CTR may be triggered by a person depositing more than $10,000 into multiple business accounts. In this case, the bid must be completed with the companies on whose behalf the transaction(s) were made and with the person who carried out the transaction (Part I). In a situation where multiple payments with multiple people have occurred during the day, shared ownership may be relevant to determining that aggregation is necessary. Unless more than one entity operates separately and independently, the institution may conclude that their transactions should be aggregated.

A CTR would be completed specifying the companies on whose behalf the transaction(s) were carried out and the persons carrying out the transaction(s). Each entity and individual would be listed in a corresponding Part I. This reasoning has traditionally been extended to the exemption procedure. As the discussion on beneficial ownership continues, one topic has generated great interest: the aggregation of the CTR. Many are wondering: will the process change? Will we have to aggregate differently? In cases where several companies share common ownership, the FinCEN8 FinCEN Directive (16 March 2012), FIN-2012-G001 “Aggregation of Foreign Currency Transaction Reports for Jointly Owned Enterprises” stipulates that separately incorporated companies are independent persons. These FinCEN guidelines emphasize that foreign currency transactions of separately incorporated companies should not be automatically aggregated as in the name of a person simply because those companies are owned by the same person. It is for the bank to determine, on the basis of information received in the ordinary course of business, whether several undertakings sharing common ownership are actually operated independently of each other, taking into account all the facts and circumstances. According to this FinCEN directive, if the bank determines that the companies are independent, the co-ownership does not require the aggregation of the separate transactions of these companies. A: Yes, the process may change. The CTR aggregation rules themselves have not changed. However, if the bank knows that multiple transactions have been made by or on behalf of the same person, they must be aggregated for the purpose of filing the CTR.

With the beneficial ownership rule, the bank will have more clarity about the owners and who could benefit from the transactions. This knowledge could lead to the aggregation of transactions that may not have taken place before the new rule, as the bank was not aware of this information. A: Ask your suppliers if their CTR system can filter RNRs from beneficial owners for whom CTR aggregation is not suitable. It`s important to ask your providers if there are any features available that allow institutions to “tag” accounts with similar ownership that don`t work independently for aggregation purposes in the system. This will save you time in the long run. Types of foreign currency transactions that can be reported individually or by aggregation include, but are not limited to: deposits and withdrawals, ATM transactions, face value exchanges, loan payments, foreign currency transactions to fund individual retirement accounts (IRAs), purchases of certificates of deposit, money transfers paid in foreign currency, the purchase of treasury instruments, certain transactions involving armoured vehicle services, 7 More information on CTR deposit requirements for transactions carried out through armoured car services can be found in FinCEN (12 July 2013), FIN-2013-R001 “Processing of armoured car service transactions carried out on behalf of customers of financial institutions or third parties for the purpose of reporting foreign currency transactions.” and Currency to or from prepaid access. The manual provides additional guidance on how to aggregate transactions in multiple currencies on the same business day: “Multi-currency transactions totaling more than $10,000 per business day are treated as a single transaction if the bank knows they are made by or on behalf of the same person – and result in either a cash payment, a total payment of more than $10,000 on a business day. See FFIEC BSA/AML Audit Manual, Currency Transaction Reporting. The Financial Crimes Enforcement Network (“FinCEN”) publishes these guidelines to clarify the aggregation of multiple transactions made by condominium corporations for the reporting of foreign currency transactions.

Following a decision on the subject, 1 FinCEN received requests for additional guidance from financial institutions. In particular, the applicants were interested in indications on the aggregation of shared ownership which went beyond the limited circumstances discussed in FinCEN 2001-2.