Risk Management Manual of Examination Policies - FDIC

BANK SECRECY ACT, ANTI-MONEY LAUNDERING,
AND OFFICE OF FOREIGN ASSETS CONTROL
48232-0063 that explains why CTRs were not filed.
Examiners should also provide the financial institution a
copy of the “Check List for CTR Filing Determination”
form available on the FDIC’s website. The financial
institution will need to complete this form and include it
with the letter to the IRS.
Once an institution has been instructed to contact IRS DCC
for a backfiling determination, examiners should notify
both their Regional Special Activities Case Manager
(SACM) or other designees and the Special Activities
Section (SAS) in Washington, D.C. Specific contacts are
listed on the FDIC’s Intranet website. Requisite
information should be forwarded electronically via e-mail
to these contacts.
Currency and Banking Retrieval System
The Currency and Banking Retrieval System (CBRS) is a
database of CTRs, SARs, and CTR Exemptions filed with
the IRS. It is maintained at the IRS Detroit Computing
Center. The SAS, as well as each Region’s SACM and
other designees, has on-line access to the CBRS. Refer to
your Regional Office for a full listing of those individuals
with access to the FinCEN database.
Examiners should routinely receive volume and trend
information on CTRs and SARs from their Regional
SACM or other designees for each examination or
visitation prior to the pre-planning process. In addition,
the database information may be used to verify CTR, SAR
and/or CTR Exemption filings. Detailed FinCEN database
information may be used for expanded BSA reviews or in
any unusual circumstances where examiners suspect certain
forms have not been filed by the financial institution, or
where suspicious activity by individuals has been detected.
Examiners should provide all of the following items they
have available for each search request:
• The name of the subject of the search (financial
institution and/or individual/entity);
• The subject's nine-digit TIN/SSN (in Part III of the
CTR form if seeking information on the financial
institution and/or Part I of the CTR form if seeking
information on the individual/entity); and
• The date range for which the information is requested.
When requesting a download or listing of CTR and SAR
information, examiners should take into consideration the
volume of CTRs and SARs filed by the financial institution
under examination when determining the date range
requested. Except under unusual circumstances, the date
range for full listings should be no greater than one year.
Section 8.1
For financial institutions with a large volume of records,
three months or less may be more appropriate.
Since variations in spellings of an individual’s name are
possible, accuracy of the TIN/SSN is essential in ensuring
accuracy of the information received from the FinCEN
database. To this end, examiners should also identify any
situations where a financial institution is using more than
one tax identification number to file their CTRs and/or
SARs. To reduce the possibility of error in communicating
CTR and SAR information/verification requests, examiners
are requested to e-mail or fax the request to their Regional
SACM or other designee.
Other FinCEN Reports
Report of International Transportation of Currency or
Monetary Instruments
Treasury regulation 31 CFR 103.23 requires the filing of
FinCEN Form 105, formerly Form 4790, to comply with
other Treasury regulations and U.S. Customs disclosure
requirements involving physical transport, mailing or
shipping of currency or monetary instruments greater than
$10,000 at one time out of or into the U.S. The report is to
be completed by or on behalf of the person requesting the
transfer of the funds and filed within 15 days. However,
financial institutions are not required to report these items
if they are mailed or shipped through the postal service or
by common carrier. Also excluded from reporting are
those items that are shipped to or received from the
account of an established customer who maintains a
deposit relationship with the bank, provided the item
amounts are commensurate with the customary conduct of
business of the customer concerned.
In situations where the quantity, dollar volume, and
frequency of the currency and/or monetary instruments are
not commensurate with the customary conduct of the
customer, financial institution management will need to
conduct further documented research on the customer’s
transactions and determine whether a SAR should be filed
with FinCEN. Please refer to the discussion on “Customer
Due Diligence” and “Suspicious Activity Reporting”
within this chapter for detailed guidance.
Reports of Foreign Bank Accounts
Within 31 CFR 103.24, the Treasury requires each person
who has a financial interest in or signature authority, or
other authority over any financial accounts, including bank,
securities, or other types of financial accounts, maintained
in a foreign country to report those relationships to the IRS
annually if the aggregate value of the accounts exceeds
DSC Risk Management Manual of Examination Policies 8.1-5 Bank Secrecy Act (12-04)
Federal Deposit Insurance Corporation