Form 4789; Currency Transaction Report (CTR) must be filed for all currency transactions of more than $10,000. [31 CFR 103.22 (b)(1)]

Multiple currency transactions must be aggregated, and a CTR is required, if the business knows or has reason to know that the multiple transactions are by or on behalf of any person and result in either cash in or cash out totaling more than $10,000 in one business day. [31 CFR 103.22(c)(2)]

The CTR must be filed within 15 calendar days following the day the reportable transaction occurs. [31 CFR 103.27(a)(1)]

Form 4790, Report of International Transportation of Currency or Monetary Instruments (CMIR), must be filed by any person who transports, mails or ships or has someone else transport, mail or ship currency or monetary instruments in excess of $10,000 into or out of the country or who receives such items into the United States from abroad. [31 CFR 103.23]

Form 4790 must be filed with the U.S. Customs Service at the time of entry into the United States or at the time of departure, mailing or shipping from the United States. [31 CFR 103.27(b)(1)]

Any person receiving currency or monetary instruments in excess of $10,000 from outside the United States is required to file Form 4790 within 15 days. [31 CFR 103.27(b)(2)]

Treasury Department Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), must be filed for any financial interest in or signature or other authority over a bank, securities, or other financial account which exceeds $10,000 at any time during the calendar year. [31 CFR 103.24]

The FBAR must be filed by June 30th of the succeeding year. [31 CFR 103.27(c)]

Treasury Department Form TD F 90-22.47, Suspicious Activity Report (SAR), is required to be made by banks or other depository institutions if they suspect or have reason to suspect suspicious activities have occurred. [31 CFR 103.18]

This report applies to suspicious transactions of at least $5,000 in funds or other assets conducted or attempted by, at or through banks or other depository institutions. [31 CFR 103.18(a)(2)]

A bank is required to file the SAR with the Financial Crimes Enforcement Network (FinCEN), through the Detroit Computing Center (DCC), no later than 30 calendar days after the date of detection. [31 CFR 103.18(b)(3)]

A bank or other financial institution is prohibited from notifying any person involved in the transaction that the transaction has been reported. [31 CFR 103.18(e)]

Treasury Department Form TD F 90-22.53, Designation of Exempt Person, must be filed on each person being designated as exempt by the close of the 30-day period beginning after the day of the first reportable transaction in currency with that person sought to be exempted. [31 CFR 103.22(d)(3)]

For records required of all financial institutions, refer to IRM 4.26.5.

Copies of all filed Currency Transaction Reports (CTRs) must be retained by the financial institution for five years from the date of the report. [31 CFR 103.27(a)(3)]

Copies of all filed Suspicious Activity Reports (SARs) and the original or record of any supporting documentation shall be maintained for five years from the date of filing the SAR. [31 CFR 103.18(d)]

For additional records to be made and retained by credit unions, refer to 31 CFR 103.34.

For records required to be maintained for exempt customers, including TD F 90-22.53, refer to 31 CFR 103.22(d).

For records required to be maintained for the issuance or sale of credit union checks, cashier's checks, money orders or traveler's checks which involve currency amounts between $3,000 and $10,000, refer to 31 CFR 103.29.

For records required to be maintained for funds transfers (wires) of $3,000 or more, refer to 31 CFR 103.33.

For records required to be maintained by persons having a financial interest in or signature or other authority in foreign financial accounts, refer to 31 CFR 103.32.

Records must be retained by the financial institution for five years. [31 CFR 103.38(d)]

Cash Control System - A centralized recordkeeping and control system to monitor cash transfers within the credit union and cash sent to and received from correspondent banks.

Cash Received Voucher/Cash Payment Voucher - Individual receipts for transactions conducted with members that reflect activities conducted with both currency and negotiable instruments, such as checks.

Cash In/Out Slips - Individual documents prepared by the teller to reflect currency taken in and paid out.

Exempt Customer - A credit union member who meets the requirements of 31 CFR 103.22(d) to be excluded from Currency Transaction Report (CTR) reporting.

Share - Ownership interest in a credit union. A typical par value is $5.

Share Draft Account - A member's investment account in the credit union on which the member may write drafts (checks) to 3rd parties.

Share Savings Account - The member's investment account in the credit union. The yield on this account is paid in the form of dividends.

Operating cash is ordered and received from a correspondent bank. Source documents which support this transaction include credit union checks made to cash, bank account debit memos, and currency order sheets.

When the cash is received, the cash control teller makes an entry in the credit union's cash control system. The appropriate debit and credit is recorded in the cash in bank and cash on hand account.

Cash is then disbursed to each teller for conducting daily transactions. An entry is made in the cash control system to record the amount of cash issued.

Each teller maintains an individual teller cash control sheet to record daily transactions. The teller cash control sheet details the amount of cash received by denomination. The teller also records additional internal cash transfers that occur during the day.

Tellers conduct cash in transactions for share deposits and sales of money orders, traveler's checks and cashier's checks. All deposits and sales are not conducted with cash. Members may deposit checks into share accounts and may use share drafts or share savings withdrawals to purchase negotiable instruments.

Tellers conduct cash out transactions for share withdrawals and check cashing. Share withdrawals may be paid by cash or a credit union share draft.

When cash is used during a teller transaction, a document for cash in/out should be prepared. This could include a cash in slip or computer coding for cash transactions on a cash received/payment voucher.

At the end of the day, tellers reconcile their cash control sheets to their ending cash balance and source records. The control sheet, source records and currency are turned into the cash control teller.

The cash control teller then enters all ending currency balances into the cash control system log. The ending cash on hand is then reconciled to the daily activities. A cash control system reconciliation proof/report is prepared to account for the financial institution's total cash on hand.

If cash on hand exceeds the operating requirements of the credit union, the excess funds are deposited into the bank. If the currency amount is less than the required amount, a currency request is prepared and sent to the bank. At this point, the daily currency cycle has ended.

A quality Bank Secrecy Act (BSA) compliance examination begins with a thorough preplan. The scope and depth of the compliance examination will depend upon the facts and circumstances of each case. (Refer to IRM 4.26.6 for a discussion on scope and depth.)

Research the Currency and Banking Retrieval System (CBRS) to determine if any Currency Transaction Reports (CTRs), Report of International Transportation of Currency or Monetary Instruments (CMIRs), or Report of Foreign Bank and Financial Accounts (FBARs) have been filed by or on behalf of the credit union. This research can help establish the credit union's knowledge of the BSA reporting requirements.

Review CBRS research to identify any incomplete documents filed, lack of filings, timeliness of filings, and any unusual or questionable transactions. (Refer to IRM 4.26.4.)

Determine if any CTRs, CMIRs, or FBARs were filed in the names of employees, agents or nominees which may indicate possible unreported transactions.

Compare the number of transactions and dollar amounts reported from prior periods with the current period.

Review prior compliance examination records and historical information maintained in the BSA case file. Consideration should be given to:

Review the list of credit unions received from the State Department of Financial Regulation. Request additional information about a credit union, if necessary, such as the number of members, branches, amounts of assets held and types of services offered. A copy of the institution's financial statement may be available from the State.

The examiner may contact National Credit Union Administration (NCUA), National Association of State Credit Union Supervisors (NASCUS), or The Credit Union National Association (CUNA) for additional background information and potential services which are provided to member credit union organizations, such as member share draft clearing, as well as financial services offered by the credit union to its members.

Verify the credit union has been previously notified via Form Letter 1052 and has been included in the Area Non-Bank Financial Institution (NBFI) database.

Ensure the case has Criminal Investigation (CI) clearance.

For information on contacting financial institutions refer to IRM 4.26.6 .

The BSA examiner should furnish Form 4564, Information Document Request (IDR), to the financial institution at the time the appointment is scheduled. The IDR should be comprehensive enough to ensure that all the necessary records are available to begin the BSA compliance examination. For a sample IDR for credit unions, refer to Exhibit 4.26.9-16 .

An interview should be conducted at the credit union's main location, with a credit union officer, Bank Secrecy Act (BSA) compliance officer and/or other key personnel who have knowledge of the credit union's operations, policies and internal control procedures. Determine who is responsible for compliance with the BSA recordkeeping and reporting requirements.

Document the credit union's background history, the number of branches operated and affiliated organizations.

Identify all personnel who are responsible for conducting, recording and reporting of BSA transactions and evaluate their understanding of the BSA recordkeeping and reporting requirements. It is important to establish knowledge of the BSA should any violations be noted during the examination. These individuals should be identified by name, title and specific responsibilities.

Tellers handling currency transactions should be interviewed. The examiner should ascertain:

Responsible officers and supervisory personnel, who approve large currency transactions and/or are responsible for filing Currency Transaction Reports (CTRs), should be interviewed. These individuals may include the BSA compliance officer, manager and/or head teller. The examiner should ascertain:

Ask specific questions to determine the financial services offered by the credit union. The examiner must consider all financial services or products offered by the credit union such as money remittance, check cashing, and sales of money orders and/or traveler's checks.

Ask open-ended questions throughout the interview. Don't ask questions that require only a yes or no answer.

For examples of initial interview questions refer to Exhibit 4.26.9-17. This is only a guide that should be expanded or contracted as each BSA compliance examination warrants.

Evaluate the credit union's internal and management control system for Bank Secrecy Act (BSA) compliance by reviewing written procedures to ensure they include the credit union's specific requirements regarding reporting and recordkeeping under the BSA. The examiner should obtain a copy of written procedures to retain in the case file.

Review in house training programs and inspect retained training records. The examiner should inspect records of external training such as certificates of course completion. Most individual state credit union leagues and trade associations offer BSA training courses for all levels of personnel, and provide documentation of attendance.

Identify dates during which large currency transactions occurred. The examiner should review currency received from or shipped to the correspondent bank using:

Inspect the tellers' cash control proofs and supporting cash in/out documents to identify specific large currency transactions. A judgmental sample of transactions consisting of amounts ranging from a minimum of $3,000 to greater than $10,000 should be selected.

Trace the transactions through the internal control system to Currency Transaction Report (CTR) filings for amounts greater than $10,000. If there is a transaction over $10,000 and no CTR was filed, check to see if the customer has been designated as exempt before determining if an apparent reporting violation has occurred.

Review the credit union's retained copies of CTRs for accuracy and completeness.

Compare the credit union's retained copies of CTRs to the Currency and Banking Retrieval System (CBRS) record to insure they have been filed.

Review Forms 90-22.1 (FBAR) if the credit union maintains foreign bank accounts or has signature authority or financial interests in foreign countries.

Review Forms 4790 (CMIR) if the credit union is involved with the transportation of currency into or out of the U.S.

Review the credit union's records maintained for the sale of bank checks or drafts, cashier's checks, money orders, and/or traveler's checks for amounts between $3,000 and $10,000. Ensure all required information has been obtained pursuant to the recordkeeping requirements of 31 CFR 103.29.

Review the credit union's records to determine if all the required information on money transmittals of $3,000 or more has been obtained and retained pursuant to the recordkeeping requirements of 31 CFR 103.33.

Evaluate the credit union's recordkeeping procedures relating to customer account activities and certificates of deposits pursuant to the recordkeeping requirements of 31 CFR 103.34.

Review the Suspicious Activity Report (SAR) file to determine if there are recurring patterns of activity by the same or related members of the credit union. If patterns are noted, question the appropriate personnel as to the actions taken with regard to the transactions. A detailed analysis of suspicious transactions may be warranted to determine if the individuals are utilizing the credit union for structuring activities. Contact the Area anti-money laundering (AML) coordinator to determine whether a referral is warranted or to expand the review of the suspicious activity report file.

If weak internal controls were noted or lack of management oversight was determined, the examiner should consider expanding the scope of the BSA compliance examination. The examiner should also consider expanding the scope to other branches/offices, if applicable.

If potential reporting and recordkeeping violations are noted, the examiner should discuss the violations with the Area AML coordinator prior to expanding the scope. Depending on the frequency and nature of the violations, the examiner may not need to expand the scope, i.e. minor recordkeeping violations.

Other considerations for expanding a BSA compliance examination include prior violations, management cooperation and the filing history recorded on CBRS.

The examiner will ensure that the credit union is properly designating customers as exempt by filing a TD F 90-22.53, Designation of Exempt Person, by the close of the 30 day period beginning after the day of the first reportable transaction in currency with that person is sought to be exempted.

Verify the credit union's procedures for exempting transactions of certain depositors conform to the requirements of 31 CFR 103.22(d).

Obtain copies of TD F 90-22.53 filed by the credit union. Customers designated as exempt need to meet the specific requirements of 31 CFR 103.22(d)(2).

Review those customers designated as exempt which are non-listed businesses since money launderers would most likely try to use this type of business to disguise the source of their funds. Verify the following:

Prior to October 21, 1998 the credit union may have exempted customers under the old exemption rules described in 31 CFR 103.22(b) through (g) i