Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Compliance Determining ineligible revenues for CTR exemptions
WASHINGTON (5/27/09)—It is not always easy to determine if a business member can qualify for a Phase II Currency Transaction Report (CTR) exemption when that member engages some “ineligible” business activities. But according to Financial Crimes Enforcement Agency guidance (FIN-2009-G001), a business “may qualify for an exemption as a non-listed business provided that no more than 50% of its annual gross revenues are derived from one or more ineligible business activities.” For instance, imagine a situation where a federal credit union has a business account related to a small “full-service” real estate company that handles real estate sale/purchase transactions, does title searches, provides real estate brokerage services, and so on. The business engages in a number of large cash transactions during each month that require currency transaction reporting. To determine if the business member qualifies for a CTR exemption, the credit union must make a “reasonable determination” that the member derives no more than 50% of its annual gross revenues from ineligible business activities. To make this determination, the credit union could take into account member certifications regarding annual gross revenues, review the business’ audited financial statements, or review the business’ most recent tax returns. If the business' gross annual revenues derived from the real estate brokerage business activity is less than half the total, then the business should qualify for the exemption. For more on this and other compliance topics, visit the Credit Union National Association’s Compliance Challenge using the link below.
Other Resources

RSS





print
News Now LiveWire
.@NACHAOnline report: ACH volume increases to 23B payments in 2014 http://t.co/va2WYMh4Zv
14 hours ago
.@CUNA's @HampelBill in @washingtonpost on options for wary mortgage borrowers: http://t.co/CPSgTNgwmm
20 hours ago
Housing starts thaw, mortgage rates stand pat #Market #NewsNow http://t.co/hhPj5v5AH3
20 hours ago
.@CUNA files #RBC2 comment, urges #CU system to be heard #NewsNow http://t.co/yfoZHAMlZc
20 hours ago
#NewsNow Youth Month attracts 100,000th member for Mich. CU http://t.co/cgF5o83XlK
21 hours ago