WASHINGTON (6/25/08)—The Credit Union National Association (CUNA) supports much of a plan intended to simplify how credit unions and other depository institutions exempt eligible individuals from currency transaction reporting (CTR) requirements, but the group recommends a few adjustments. CTRs are mandated by the Bank Secrecy Act and implementing regulations and are required of credit unions, banks and thrifts each time more than $10,000 in cash comes into or moves out of the financial institution, but there are exceptions. In April, the Financial Crimes Enforcement Network (FinCEN) announced its plans to make changes to its current exceptions rules and asked for public comment. In its recent comment letter, CUNA said it supports:
* Eliminating the biennial filing of FinCEN’s Designation of Exempt Person Form 110 (Form110) for Phase II customers/members; and * Replacing the current twelve-month waiting period with a risk-based determination when designating an eligible non-listed or payroll (Phase II) customer/member for exemption.
However, the CUNA letter recommends the following changes to the proposal:
* FinCEN should review the threshold for filing a CTR and adjust it for inflation; and * FinCEN should allow financial institutions to make a good-faith, case-by-case determination of whether an otherwise eligible customer/member frequently engaged in currency transactions of more than $10,000 when designating a Phase II exemption.
Also, CUNA believes filing a notice of revocation of exempt status after filing a CTR is duplicative and should continue to be voluntary. Use the resource link below to read CUNA’s complete comment letter.