FinCEN Issues New Ruling on the Treatment of Armored Car Service Transactions
July 16, 2013
July 16, 2013
The Financial Crimes Enforcement Network (FinCEN) has granted exceptive relief for the completion of Currency Transactions Reports (CTRs) on certain Armored Car Service (ACS) transactions.
The exception applies only to reportable transactions that are conducted by an ACS to debit or credit the account of a financial institution’s customer per instructions received from the customer or third party. The exception and its application are set forth below:
- Financial institutions are required to implement adequate procedures to determine whether an ACS is acting pursuant to instructions from the financial institution, from the financial institution’s customer, or from a third party.
- If the delivery to or pick-up from the financial institution (corresponding to a deposit to or withdrawal from a financial institution’s customer’s account) was performed by an ACS acting pursuant to instructions from the reporting financial institution, the customer would have to be identified in Section I of the CTR, but only box 24 of Section II (“Armored Car FI Contract”) would need to be checked to satisfy the CTR requirements regarding the ACS.
- If the delivery to or pick-up from the financial institution was performed by an ACS pursuant to instructions received from the financial institution’s customer or from a third party, the financial institution must complete the CTR as follows:
- The deliveries to and pick-ups from the financial institution conducted by the ACS pursuant to instructions from the financial institution’s customer or from a third party on any one business day will be aggregated with any other currency transactions performed on behalf of the same customer on the same business day.
- If the financial institution has knowledge that the aggregate of all currency deposits or withdrawals by or on behalf of a customer on any one business day exceeds $10,000, the financial institution will file a CTR identifying the customer and all persons conducting transactions (including the ACS and, if applicable, third parties on whose instructions the ACS conducted transactions) about whom the financial institution has obtained identifying information.
- 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 filling in the ACS’s corporate information (corporate name, address, EIN, etc.). The name of the employee of the ACS will not be required.
In addition, FinCEN has released an Appendix with several illustrative currency transaction scenarios involving ACS transactions as an example of how to properly complete a CTR.
Questions? Contact the Compliance Hotline: 1.800.546.4465, firstname.lastname@example.org.