The U.S. Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) published an assessment (the “Assessment”) of the impact of recent amendments to its currency transaction report (“CTR”) rules. The CTR rule amendments, which were effective on January 5, 2009 and described in the December 9, 2008 Alert, amended CTR requirements for depository institutions by streamlining the reporting process and easing the requirements for depository institutions to benefit from exemptions with respect to certain types of customers and transactions.
In the Assessment, FinCEN concluded that the rule amendments have had positive effects. The overall number of designation of exempt person (“DOEP”) filings has declined 44%, primarily due to the fact the DOEP filings are no longer necessary when the subject is a bank, government agency, or governmental authority. In addition, FinCEN noted that initial DOEP filings for other types of customers where such filings are still necessary grew by 41.7% in 2009, indicating that many institutions were taking advantage of the new streamlined exemption process for such customers. Finally, FinCEN found that the CTR exemption amendments helped reduce the overall volume of CTR filings by 12% in 2009, suggesting that fewer CTR were being filed regarding transactions of limited or no use to law enforcement.