ABSTRACT

Report to the Congress: Use of Currency Transaction Reports   [open pdf - 584KB]

This study focuses on determining the extent to which depository institutions are using exemptions, identifying the areas in which exemptions are not being used, and the reasons for their lack of use. To make these determinations, the Financial Crimes Enforcement Network relied on: (1) a study of the Bank Secrecy Act (BSA) database by its analysts of the categories of exemptible customers for which Currency Transaction Reports (CTR) were being filed; (2) a survey conducted by a contractor of a random sample of depository institutions concerning, in part, their exemption practices and the reasons underlying them; and (3) an analysis of the exemption process to determine how it could be improved. The number of CTRs filed on an annual basis is still extremely high; 12.3 million in FY2002 (although this represents a decrease from the 13 million filed in FY2000). While the number of exemptions that have been filed with FinCEN has increased substantially since FinCEN's phase-in of the current exemption process was completed in 2000, the 118,678 exemptions filed in FY 2002 represent only a tiny fraction of total CTR filings. Many financial institutions have taken advantage of exemptions for government entities, educational institutions and utilities, but financial institutions generally have not taken advantage of exemptions for large companies that either have a cash intensive business or are payroll customers. Some financial institutions are not taking advantage of the exemption process at all; for example, for small institutions that do not file many CTRs, exemptions do not appear to be cost effective.

Publisher:
Date:
2002-10
Copyright:
Public Domain
Format:
pdf
Media Type:
application/pdf
URL:
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