On July 12, 2013, the Financial Crimes Enforcement Network (FinCEN) released Administrative Ruling 2013–R001 dealing with the “Treatment of Armored Car Service Transactions Conducted on Behalf of Financial Institution Customers or Third Parties for Currency Transaction Reporting Purposes”. This ruling updates, and responds to the issues and concerns raised over the last four years to FinCEN Ruling 2009 –R002. This new exception applies only to reportable currency transactions conducted by an Armored Car Service (ACS) to debit or credit the account of a financial institution’s customer pursuant to instructions received from the customer or from a third party. Under this updated Ruling, in the case of an ACS that, acting pursuant to instructions from a person other than the reporting financial institution itself, makes a delivery to or pick-up from a customer’s account in excess of $10,000 on any one business day, the financial institution will satisfy the requirement to identify the party conducting the transaction by completing the Part 1 Page (Box 2-d) of the CTR (Form 112) using the ACS’ corporate information (corporate name, corporate address, corporate EIN, etc.). The name and personal information of the employee of the ACS will not be required (as was the case under FIN-2009-R002). Additionally, 2013-R001 clarified that the financial institution’s reporting obligation regarding transactions conducted by an ACS pursuant to instructions from the financial institution’s customer of from a third party is satisfied by filing CTRS aggregated by customer only. The upcoming one-day IBA Anti-Money Laundering and Bank Secrecy Act Update Seminars will cover these and other issues, opportunities, and expectations in the arena of Bank Secrecy Act compliance.
Mark W. Dever, AAP, CAMS, is a Senior Consultant with Professional Bank Services, Inc. (PBS). PBS offers consulting and educational seminars for Bank Compliance to the financial services industry. Mark has lectured at regional and national seminars and at graduate schools of banking hosted by various bank associations and national industry groups. Mark will present the one-day IBA Anti-Money Laundering and Bank Secrecy Act Update Seminar on November 5, 6, and 7 in Storm Lake, Johnston, and Cedar Rapids.