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FEDERAL RESERVE BANK
OF NEW YORK
BANK SECRECY ACT
New Currency Transaction Report Form, Effective January 1, 1990
To the Chief Executive Officer o f Each State Member Bank, Edge Corporation,
and Noninsured Branch or Agency of a Foreign Bank, in the Second Federal Reserve District:
The Department of the Treasury has revised IRS Form 4789, the Currency Transaction Report, for use in reporting
transactions a fter D e c e m b e r 3 1 , 1 9 8 9 . An information copy of the revised report, together with a related press release,
instructions, and exemption rulings, are enclosed. Please note that the revised form cannot be used for transactions
occurring before January 1, 1990; the current version of IRS Form 4789 should be used for 1989 transactions.
As indicated in the accompanying press release, the more significant changes in the form are:
• Inclusion of the date of birth of both the individual conducting a reportable transaction and any individuals on whose
behalf it was made;
• Inclusion of the social security number of the individual conducting the transaction;
• Inclusion of the telephone number of a contact person to answer questions about the report;
• Elimination of detailed information on checks and wire transfers involved in the reported transaction; and
• A new filing address for the form.
In addition, as explained in the press release, camera-ready reproduction proofs of the revised form will be available
a fte r O c to b e r 1, 1 9 8 9 , from the Internal Revenue Service Distribution Center. This Bank will not have proofs avail
able for distribution.
The enclosed copies of the Department of the Treasury’s Administrative Rulings 89-1 and 89-2 address special
exemptions for groups of accounts belonging to the same customer and aggregation of multiple transactions involving
exempted accounts. The rulings are issued pursuant to Section 103.75 of the Department of the Treasury’s Financial
Recordkeeping and Reporting Regulations, 31 CFR 103, Subpart F, which are published periodically in the F ed era l
R eg ister, the FDIC loose-leaf reporting service (available to all insured banks), and the Federal Reserve Regulatory
Service. Questions regarding these rulings, or requests for information on previous rulings, should be addressed to:
Ms. Amy G. Rudnick, Director
Office of Financial Enforcement
Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
(Phone: 202-566-8022)
If you have any other questions regarding these matters, please contact Ben J. Szwalbenest of this Bank’s
Compliance Examinations Department (Tel. No. 212-720-8136).
M argaret E. B r u s h ,
A s s is ta n t C h ie f E xam iner.
TREASURY NEWS
D e p a r t m e n t o f t h e T r e a s u r y • W a s h in g t o n , D.C. • T e le p h o n e 566-204
For Immediate Release
July 20, 1989
Contact: Larry Batdorf
566-2041
TREASURY ANNOUNCES ISSUANCE OF
NEW CURRENCY TRANSACTION REPORT
FORM
The Department of the Treasury today announced that the Office
of Management and Budget has approved use of a revised Form 4789,
the Currency Transaction Report, a copy of which is attached.
The form is used by financial institutions to report deposits,
withdrawals, exchanges of currency, payments or other transfers
of more than $10,000 in currency, as required by the Bank Secrecy
Act.
Filers must continue to use the present Form 4789 through
December 31, 1989. The new form may be used only for
transactions commencing January 1, 1990. Filers should note that
the revised form cannot be used for transactions occurring prior
to January 1, 199TH
Several changes have been made to the form. Some of the more
significant ones are the inclusion of the date of birth of both
the individual conducting a reportable transaction and any
individuals on whose behalf it was made, the social security
number of the individual conducting the transaction, and the
telephone number of a contact person to answer any questions
about the report. The current requirement of providing detailed
information on checks and wire transfers involved in the reported
transaction has been eliminated. The revised, form will be filed
at a new post office box. The new address for the revised form
will be: Internal Revenue Service Detroit Computing Center, P.O.
Box 33604, Detroit, Michigan, 48232-5604. This new address
is not to be used for transactions occurring prior to January 1,
1990.
The instructions to the new form refer to BSA Administrative
Ruling 89-5. This ruling, which will deal with the reporting of
information on the person on whose behalf a reportable
transaction is conducted, will be issued before October 1, 1989.
Informational copies of the revised form are available by
contacting the Repro Coordinator, Internal Revenue Service
Eastern Area Distribution Center, 4300 Carolina Avenue, Richmond,
Virginia 23222. The telephone number is (804) 329-1056. Camera
ready reproduction proofs will be available after October 1,
1989, at the above address.
NB-383
-2-
Copies of the printed forms for use by filers will be available
through the regional Internal Revenue Service distribution
centers on November 15, 1989. Again, these printed forms only
may be used for transactions occurring after December 31, 1989.
of
Those w ish in g a d d it io n a l in fo r m a tio n sh ou ld c o n ta c t
F in a n c ia l E n fo rce m en t, D epartm ent o f th e T r e a su r y ,
(202) 566-8022.
the
at
O ffice
478 9
C u rre n c y T r a n s a c tio n R e p o r t
► File a separate report for each transaction.
► Please type or p rin t
► For Paperw ork Reduction Act N otice, see page 3.
(Rtv. January 1990)
Department of the Treasury
Internal Revenue Service
Expires: 12-31-91
(Com plete all applicable parts— See instructions)
1 Check appropriate boxes if:
P a r tf
OMB No. 154 5 -0 18 3
a l~~l amends prior report.
bQ
exemption limit exceeded.______ c G
suspicious transaction.
identity of individual who conducted this transaction with the financial institution
2 If more than one individual is involved, see instructions and check h ere.....................................................................................................................► Q
3 Reason items 4-15 below are not fully completed (check all applicable boxes): a O
4 Last name
Armored car service (name) ►
5 First name
6 Middle initial
8 Address (number and street)
7 Social security number
9 Occupation, profession, or business
10 City
11 State 12 ZIP code
15 Method used to verify identity:
b Issued by ►
a Describe identification
13 Country (if not U.S.)
14 Date of birth (see instructions)
►
Number
Person (see General Instructions) on whose behaffthis
►
was conducted
16 If this transaction was conducted on behalf of more thafto
17 This person is an: G
trust, escrow, brokerage or other 3rd party account, see instructions and check here ► f~|
19 Individual's last name or
23 Alien identificatio
b Issued by ►
►□
individual or
st name
identification
21 Middle initial
►
22 Social securrty number
Employer identification number
P a r t lll Types of accounts and numbefTaffcctcd by transaction (If more than one of the same type, use additional spaces provided below)
_________
31 * O
Savings ► ........................................
TO
Securities ►.......................................
M O CD/Money market ► .................................. .
c O
Checking ► ......................................
*> O
Loan ►..............................................
0 O Other (specify) ► ........................................
P a r tIV
32
tD
Type of transaction. Check applicable boxes to describe transaction
Currency exchange (currency for currency)
33 CASH IN:
F0
CD/Money market purchased
8G
Deposit
M O For wire transfer
®□
* O
Securitypurchased
A O Receipt from abroad
Check purchased______ * Q Other (specify) ►______
35 Total amount of currency transaction (in U.S.
dollar equivalent) (always round up)
Cash in 3 .
Cart out 3
34 CASH OUT:
8 O
Check cashed
u □
From wire transfer
T □
* □
Security redeemed
Withdrawal
1 Q
Shipment abroad
Other (specify) ►_________
TG
37 Date of transaction
(sm instructions)
36 Amount in Item 35 in U.S. $100 bills or higher
.00
Cask ia 3 ....................................... DO
Cashout 3_____________ ______ .00
.00
38 If other than U.S. currency is involved, please furnish the following information:
b Country......................................................................
b Country
CD/Money market redeemed
cD
O
a Exchange made O
Unknown
for or O
from U.S. currency
c Amount of currency (in U.S. dollar equivalent) $ ...........................................................00
c Amount of currency (in U.S. dollar equivalent) $______________________________ -OO
39 If a negotiable instrument or wire transfer was involved in this transaction, please furnish the following information and check this box (see instructions)
a Number of negotiable instruments involved..............
b Number of wire transfers involved_______________ |
e Total amount of ail negotiable instruments and
all wire transfers (in U.S. dollar equivalent) ►
► O
$_____________________
OO
Financial institution where transaction took place
P a r tV
40 a G Bank (enter code number from instructions here) ► [
]*4
2
b D Savings and loan association c Q Credit union
d Q Securities broker/dealer
e Q Other (specify)
43 Employer identification number
41 Name of financial institution
42 Address where the transaction occurred (see instructions)
44 City
45 State
46 ZIP code
Social security number
47 MICR number
48 If this is a multiple transaction, please indicate: * Number of transactions ►................... e £|p
p
___________________________________________ b Number of branches ►_________________________
49 Signature (preparer)
50 Title
Sign
W
Here
7
52 Type or pnnt preparer’s name
53 Approving official (signature)
54 Date
51 Date
55 Telephone number
1_____ 1-----------:------------
P*«e2 -
Form 4789 (R*v 1-90)
Multiple Transactions
(Com plete applicable parts below if box 2 or 1 6 on psge 1 is checked)
Continued— Complete if box 2 on page 1 Is checked
P a r ti
4 Last name
5 First name
6 Middle initial
8 Address (number and street)
9 Occupation, profession, or business
10 City
11 State 12 ZIP code
15 Method used to verify identity:
7 Social security number
a Describe identification
13 Country (if not U.S.)
►
O
b Issued by ►_____________
14 Oate of birth (see instructions)
Number ►
________________________ _____________________________________________________________________________________________________
" 5 First name
7 Social security number
6 Middle initial
4 U s tn 3 ™
8 Address (number afrid street)
Q
__________________________________________________________n
10 City
9 Occupation, profession, or business
\l\i butfntry (if not U.S.)
14 Date of birth (see instructions)
__ i__ 1__ I I __ ! _
15 Method used to verify identity:
|
a ^sciire^M htificm ion
►
Continued— Complete if box 16 on page 1 is checked
17 This person is an: Q
individual or
Q
organization
19 Individual's last name or Organization's name
23 Alien identification: a Describe identification
118
If trust, escrow, brokerage or other 3rd party account, see instructions and check here ► Q
20 First name
21 Middle initial
1►
Employer identification number
:
c Number ►
b Issued by ►
22 Social security number
25 Occupation, profession, or business
24 Address (number and street)
27 State 28 ZIP code
26 City
29 Country (if not U.S.)
30 Date of birth (see instructions)
i
17 This person is an: Q
individual or
Q
organization
19 Individual's last name or Organization's name
23 Alien identification: a Describe identification
b Issued by ►
18
If trust, escrow, brokerage or other 3rd party account, see instructions and check here ► V~
21 Middle initial
20 First name
►
22 Social security number
Employer identification number
c Number
►
25 Occupation, profession, or business
24 Address (number and street)
2 6 City
1 i 1 I
27 State 28 ZIP code
29 Country Of not U.S.)
30 Date of birth (see instructions)
i
I
I 1 i
Page 3
Form 478 9 (Rev. 1-90)
Paperwork Reduction Act Notice.— The
requested information is useful in criminal, tax,
and regulatory investigations, for instance by
directing the Federal Government's attention to
unusual or questionable transactions. Financial
institutions are required to provide the
information under 31 CFR 103.22,103.26, and
103.27,
The time needed to complete this form will
vary depending on individual circumstances. The
estimated average time is 24 minutes. If you have
comments concerning the accuracy of this time
estimate or suggestions for making this form
more simple, we would be happy to hear from
i. You can write to the Internal Revenue
rvice, Washington, DC 20224, Attention: IRS
Reports Clearance Officer T:FP; or the Office of
Management and Budget, Paperwork Reduction
Project (1545-0183), Washington, DC 20503.
S
General Instructions
Definitions
Currency.— The coin and currency of the United
States or any other country, which circulates in
and is customarily used and accepted as money
in the country in which issued. It includes United
States silver certificates, United States notes,
and Federal Reserve notes, but does not include
bank checks or other negotiable instruments not
customarily accepted as money.
Financial Institution.— Each agency, branch, or
office in the United States of any person doing
business in one or more of the capacities listed:
(1) a tankas defined in 31 CFR 103.11
(2) a broker or dealer in securities, registered
or required to be registered with the SEC;
(3) a person who engages as a business
dealing in or exchanging currency (for example, a
dealer in foreign currency or a person engaged
primarily in the business of check cashing);
(4) a person who issues, sells, or redeems
checks, money orders, or similar instruments^
except as provided in 31 CFR 103.11
(5) a licensed transrilmSwrfahW
zage&j£4he bvsinesVofi
Filing Requirements.— Each financial
institution other than a casino must file a Form
4789 for each deposit, withdrawal, exchange of
currency, or other payment or transfer, by,
through, or to the financial institution which
involves a transaction in currency of more than
$10,000. Multiple transactions must be tre a te d ^
pany;
as a single transaction if the fippncial i
(^J^ftlT
e
D
C
S
.
Postal
Service
with respect to
has knowledge that: Q ) they i
King money orders.
of any person, and (
Ifr ei)
h
Person.— An individual, corporation,
cash out of the finandkl msfitdgoioManing more
partnership, trust or estate, joint stock company,
than $10,000 during q&^bntrbusiness day. For a
association,syndicate,join^^hre r<other
bank, a business day is the day on which
unincorporated oreanizrfOTOKtkujObd all
transactions are routinely posted to customers'
entities treated a^jregal
accounts, as normally communicated to
depository customers. For all other financial
institutions other than casinos, a business dajws
v o h ^ ^ u ^ ^ ^ o ^ tra n s fe r of currency from
a calendar day.
V \ \ \
« p^sohio another. A transaction in currency
is not include a transfer of funds by means of
This form also must be filed when a
\\
))
nk check, bank draft, wire transfer or other
ransaction conducted by a bank customer fctfeh
written order that does not include the physical
tas been granted an exemption from filing
transfer of currency.
exceeds the exemption limit. (For bank
exemptions, see 31 CFR 103.22 (b)). In addition,
Negotiable Instruments.— For purposes of this
this form may be filed for any suspicious
form, all checks (including personal, business,
transaction, even if it does not exceed $10,000.
bank, cashiers, and third-party checks), money
Identification Requirements.— All individuals
orders, traveler’s checks, certificates of deposit,
(except employees of armored car services)
and promissory notes.
conducting a currency transaction for themselves
Specific Instructions
or for another person must be positively identified
by obtaining their name, address, social security
Because of the limited space available on the
or other identifying number, and date of birth. In
form, in supplying information requested, you
addition, the individual’s name and permanent
may find it necessary to submit additional sheets
address must be verified and recorded. See 31
of paper. If you must furnish additional
CFR 103.27.
information, submit it on plain paper and fasten
the paper to the form. Be sure to reference the
For individuals who are established customers,
additional paper to the form, so that if it becomes
identifying information previously obtained from
separated, it can be reassociated.
the customer and kept in the financial
institution’s records may be used for verification.
Item 1— Report filed for exceptional
reason.— If this report is filed because it amends
For instance, if a customer’s account was opened
after documents establishing the person's
a previously filed report, or because deposits or
withdrawals exceed a bank customer's exemption
identity were examined and recorded on the
limit, or because the transaction is suspicious,
signature card, the financial institution may
obtain that information from the signature card.
check the appropriate box(es) in Item 1. For an
However, statements such as ‘ known customer*
amended report, staple a copy of the previously
filed report to this report and complete Part V and
or *bank signature card on file* are not
only those entries which you are amending
permitted. For a U S. citizen, a driver's permit or
any other written identification document
For a suspicious transaction, you should
acceptable to the financial institution in normal
telephone as soon as possible the local office of
check cashing operations for nonaccounthoiders
the internal Revenue Service, Criminal
(other than a bank signature card) is acceptable
Investigation Division, in addition to submitting
for verification. For a nonresident alien, his or her
this form. If you do not know the telephone
passport, alien ID card, or other official document
number, call 1-800-BSA-CTRS, which wilt put you
showing nationality or residence must be
in contact with an IRS employee. This toll-free
examined for verification.
number is operational Monday through Friday,
from approximately 9 a.m. to 6p.m . Eastern
When and Where To File.— File this form by the
15th day after the date of the transaction with the time. See BSA Admin. Ruling 88-1.
Internal Revenue Service Detroit Computing
Part I— Identity of Individual(s) who conducted
Center, P.O. Box 33604, Detroit, Ml 48232-5604 the transaction.— Always complete this part.
ATTN: CTR or with your local IRS office. Keep a
Item 2— Multiple individuals.— Check the box
copy of each Form 4789 for 5 years from the date if two or more individuals conducted the
you file it.
transaction you are reporting. Enter information
Penalties.— Civil and criminal penalties (up to
in Part I for one of the individuals. Enter
information on the back of the form for the
$500,000 and 10 years imprisonment) are
ovided for failure to file a report or to supply
remaining individuals. For example, if John Doe
Formation or for filing a false or fraudulent
and Thomas Smith enter your financial institution
together and fach one deposits $6,000 in cash
report See 31 U.S.C. 5321 and 5322.
K
into their joint account, more than one individual
has conducted the transaction. Provide
information on either John or Thomas in Part I on
the front of the form, and information on the
other individual in Part I on the back. If more than
three individuals are involved, provide identifying
information on additional sheets of paper and
attach them to this report.
Item 3— Excluding certain identifying
information.— Check the appropriate box or
boxes (a,b,c,or d) in Item 3 if you are reporting
any of the following transactions: a withdrawal or
deposit by an armored car service, a mail deposit
or shipment, a night deposit or ATM transaction,
or multiple transactions where none of the
individual transactions exceeds $10,000 or the
exemption limit. For withdrawals or deposits by
an armored car service only (Box 3a), you must
enter the complete name of the armored car
service. However, you need not complete Items
4 -1 5 . For mail deposits and shipments (Box 3b),
night deposits and ATM transactions (Box 3c),
and multiple transactions where none of the
individual transactions exceeds $10,000 or the
exemption limit (Box 3dX all of the information
might not be available. For these transactions,
check the appropriate box or boxes and complete
as many of Items 4 -1 5 as you can. Complete as
much of the back of the form as you can, as well,
if Box 3d is checked.
Items 4 ,5 , and 6— Name of Individual who
conducted the transaction.— Please complete
these items with the name of the individual who
actually conducted the transaction with your
financial institution. For example, if James B.
Jones, an employee of Bill's Grocery Store,
makes a deposit into Bill's Grocery Store's
account, the name of James B. Jones (not Bill's
Grocery Store) would be filled in here. Enter the
individual's last name in Item 4, first name in
Item 5, and middle initial in Rem 6.
Item 7— Social security number.— The social
security number of the individual whose name
u entered in Rems 4 ,5 , and 6 must be filled in
re. R that individual is an alien who does not
have a social security number, write NONE in the
space, and complete Rem 15.
Items 8 ,1 0 ,1 1 ,1 2 , and 13— Address.— Enter
the permanent street address, including ZIP
code, of the individual whose name you entered
in Rems 4 ,5 , and 6. Rem 11 will always be the 2letter state abbreviation used by the Postal
Service. A P.O. box number may never be used by
itself and may only be used if there is no street
address. If a P.O. box number is used, the name
of the street, road, or route number where the
person lives must be provided in Rem 8 along
with the P.O. box number.
Item 9— Occupation, profession, or
business.— Fully identify the occupation,
profession or business of the individual whose
name was entered in Rems 4 ,5 , and 6, for
example, secretary, shoe salesman, insurance
salesman, carpenter, attorney, etc. Do not use
nondescriptive terms such as merchant, selfemployed. businessman, etc.
Item 14— Date of birth.— The date of birth of
the individual whose name you entered in Rems
4 ,5 , and 6 must be included here. Six numerals
must be inserted for each date. The first two
numerals will reflect the month of birth, the
second two numerals the calendar day of birth,
and the last two numerals the year of birth. Zero
(0) should precede any single-digit number. For
example, if the individual’s birth date was April 3,
1948, Rem 14 should be filled in as 04 03 48.
Item 15— Method used to verify Identity.—
Review the identification requirements under
Genera/ Instructions. Then, in Rem a, enter the
type of document used to verify the individual’s
identRy, such as driver’s license, passport, etc. In
Rem b, provide the name of the issuer of the
document you entered in Rem a. For example, If
a driver's license was used to verify the
individual's identRy, provide the name of Vhe •
state that issued the license in Rem b. Enter the
number of the license, passport etc., in Rem c.
S
Form 4 7 8 9 (Rev. 1-90)
Part II— Parson on whose behalf this
transaction was conducted.— Refer to the
definition of Person on page 3. If the individual in
Part I conducted the transaction for himself or
herself only, do not complete Part II. If the
individual in Part I is conducting a transaction for
another person, Part II must be completed. If the
individual in Part I conducted the transaction for
himself or herself and another person, Part II
must be completed. (See the instructions for Box
16.) In all other cases, including armored car
service, mail deposit/shipment, night deposit,
and ATM transactions, complete Part II. See BSA
Admin. Ruling 89-5.
Box 16— Multiple Individuals or
organizations.— If this transaction is being
conducted for more than one individual
(including the individual described in Part I) or
organization (see instructions for Box 17), check
Box 16, provide identifying information on one of
the persons, and complete the applicable entries
on the back of the form. For example, if William
Brown, the owner of Bill's Grocery Store, Inc.,
deposits $4,000 in cash into his personal savings
account and $7,000 in cash into his store's
operating account, Box 16 should be checked;
William Brown should be identified in Part I an
Part II, and Bill’s Grocery Store, Inc. sh
identified in Part II orvthe baci«f4J5^di(mVH
more than three indivieifltf5^r^Cr(wl«4\p|wvl
additional inform ationon^dttt^naaneets of
paper and attach then\jc*ihiSrreport.
Box 17— Individual or organization.— If the
person on whose behalf the transaction was
completed is an individual, check the 'individual*
box in Item 17. For any person other than an
individual, check the 'organization* box.
both boxes if the transaction is on behalf ott>ot!
an individual and an organization.
Box 18— Trust escrow, brokerage, and otrrvr
third party accounts.— If the transaction affects
a trust, escrow, brokerage, or other third party
account, check Box 18. In completing Part II,
enter identifying information on the beneficiary
of the account For example, if Karen Coe. the
trustee of the Linda Scott Living Trust, makes a
reportable deposit for the trust, identifying
information on Karen must be entered in Part I on
the front of the form , and identifying information
on Linda must be entered in Part II on the front of
the form. However, if the transaction is not
conducted by the trustee, agent, broker, or
fiduciary, on the back of the form in Part II enter
identifying information on the trustee, agent,
broker, or fiduciary.
Items 19, 20, and 2 1 .— Name of person on
whose behalf the transaction was
conducted.— If the person on whose behalf the
transaction was conducted was an individual, put
his or her last name in Item 19, first name in item
20, and middle initial in Item 21. H the person is
an organization, put its name in item 19 and
leave Items 20 and 21 blank.
Items 22 and 23— Identifying number; alien
Identification.— If the person whose name you
provided in Items 19 ,20, and 21 is a citizen of the
U.S. or an alien with a social security number,
enter his or her social security number in item 22.
if that person is an organization (see Box 17
above), provide its employer identification
number, if the person is an alien who does not
have a social security number, you must complete
Item 23. Enter a general description of the type of
official document issued to that person in Item
23a (e.g., ‘ passport”), the country that issued it
in Item 23b, and its number in item 23c.
Hems 24, 26, 27, 28, and 29— Address.—
Provide the permanent street address of the
person whose name you entered in Items 19 ,20,
and 21. Follow the instructions for Items 8 and
10 -13 . If a P.O. box number is used, the name of
the street, road, or route number where the
person lives must be provided in Item 24 along
with the P.O. box number.
Hem 25— Occupation, profession or
business.— Follow the instructions for item 9.
Page
item 30— Date of Birth.— If an individual is
named in Items 19, 20, and 21, complete Item
30. Follow the instructions in Item 14 for
furnishing this 6-figure date.
Part III— Accounts affected by the transection.
Box 31— Types of accounts and account
numbers.— Check the boxes and enter the
account numbers of the accounts affected by the
transaction. If more than one of the same type of
account is affected by the transaction, check the
box which has a code letter beside it and enter
the account number; then, for each remaining
account, enter the same code letter next to a box
having no code letter beside it, check that box,
and enter that account number. For example, if 2
savings accounts are affected, check the box with
*S” beside it and fill in the account number; then
print *S* to the left of the box with no code beside
it (to signify the type of account), and enter the
account number. You may have to use additional
sheets of paper to show ail of the accounts
affected.
n
If the transaction doesjspt affact m f f t f e i p t ,
make no entry in Part
tnerefciifc^ulanot require any
*
rype of transaction.— Check the box
xes that describe the transaction. The code
letters beside the boxes in Items 31 through 34
are for IRS processing purposes.
Box 32— Currency exchange.-*rCheck this box
if currency was exchanged®* ?unert££^This
includes exchanging U .S tw ^ ^ io ^ lw e ig n
c u rr^ y .to rs ig ^ s ^ e n & rw L K ^ w e n c y , and
U.S. cbraVcyfM kM er U.S. currency. It also may
c I u im HMnqapiolvfchere negotiable
lastrumenurare involved, so long as currency is
h received and paid out by your financial
institution. See Item 35.
Items 33 and 34— Cash In; cash o u t— Check
the appropriate box or boxes under Item 33 when
currency is received by the financial institution,
and the appropriate box or boxes under Item 34
when currency is paid out by the financial
institution.
Hem 35— Total amount of currency.— In the
space provided, reflect the total amount of Cash
in or Cash out. In some instances, such as a
currency exchange, both the Cash in and Cash
out areas must be tilled in. For example, if an
individual transfers Mexican pesos to your
financial institution strictly for *$40,000” in U.S.
currency, you should check Box 32, and enter
*$40,000” for both the Cash in and Cash out
amounts of Item 35. If less than a full dollar
amount is involved, round that figure to the next
higher dollar. For example, if the Cash in totalled
$10,000.05, show the figure as $10,001.00.
If the transaction involves a negotiable
instrument (see General Instructions), as well as
currency, enter only the amount of currency.
Therefore, if an individual transfers a check in the
amount of $6,000 and Mexican pesos in the
amount of $7,000 (U.S. equivalent) in exchange
for $13,000 in U.S. currency, you should check
Box 32, write in *$7,000” for the Cash in amount
of Item 35, and write in *$13,000” in the Cash
out amount of Item 35.
Hem 36— Amount In $100 bills or higher.—
Enter the amount of the transaction reported in
Item 35 that is in denominations of U.5. currency
of $100 or higher. For example, if the currency
transaction involves Cash in of $100,000 and
$50,000 is in U.S. currency of $100 or higher
bills, enter $100,000 in the Cash in portion of
Item 35, and $50,000 in the Cash in portion of
Item 36. If none of the denominations of
currency are $100 or higher, enter *0 .” If the
financial institution does not know the amount of
total currency that is in U.S. currency of $100 or
higher (e.g., because there are multiple
transactions), check 'Unknown.* Do not leave
this item blank.
Hem 37— Date.— Enter the business day date
of the transaction. Refer to Item 14 for
Instructions in furnishing this 6-figure date.
4
Hem 38— Foreign currency.— If the currency
transaction involves a foreign currency, enter the
information in the appropriate spaces. Check the
appropriate box in Item a if foreign currency was
exchanged for or exchanged from U.S. currency.
Enter each country in Item b, and the amount of
the foreign currency in U.S. dollar equivalent in
Item c. For example, a deposit of Italian lire would
have 'Italy* entered in Item b, and the amount,
converted into U.S. dollars, entered in Item c.
Since currency was not exchanged, no entry is
made in Item a. If currency of more than two
foreign countries is involved in the transaction,
attach a separate sheet of paper that clearly
identifies the individual or organization for whom
the transaction was completed and report the
information for each foreign currency required by
Item 38.
Hem 39— Negotiable Instrument or wire
transfer.— If the transaction involved one or
more negotiable instruments (see General
Instructions) or wire transfers, check the box. In
Item a, state the number of negotiable
instruments involved. In Item b, state the number
of wire transfers involved. Then, in Item c, state
the total amount of all negotiable instruments
and wire transfers involved in U.S. dollar
equivalent. Round less than full dollar amounts to
the next higher dollar.
Part V— Financial Institution where
transaction took place.
Box 40— Type of financial institution.— Check
the box that describes the type of financial
institution where the transaction occurred. If you
check Box 40e, be sure to specify the type of
financial institution (e.g., check casher, currency
exchange).
Box 40a— Banks.— Enter the appropriate code
number in the bracket provided for the Federal
agency that performs examinations for
compliance with the Bank Secrecy Act
regulations:
Code 1— Comptroller of the Currency
Code 2— FDIC
Code 3— Federal Reserve System
Code 4— None of the above
Hems 4 1 ,4 2 . 4 4 ,4 5 , and 46— Name and
address— Enter the full legal name, street
address, city, state, and ZIP code of the branch or
office of the financial institution where the
transaction occurred. A P.O. box number is not a
street address. If multiple transactions occurred
at different locations, provide information in
these items on any office or branch where one of
the transactions occurred. Also, see Item 48.
Hem 43— EIN or SSN.— Enter the financial
institution's employer identification number
(EIN) in Item 43. However, if the financial
institution does not have an EIN, enter the social
security number of the financial institution’s
principal owner.
Hem 47— MICR number.— Enter the MICR
number of the branch or office entered in Item 41.
Item 48— Multiple transactions.— If this m s a
multiple transaction, state the number of
transactions in Item a; the number of branches
involved in Item b; and the 5-digit ZIP codes of all
the branches involved in Item c. If the branches
are in the same ZIP code, show the ZIP code only
once. If only one branch was involved, list the ZIP
code of that branch.
Items 4 9 ,5 0 ,5 1 , and 52— Preparer's
signature, title, and date.— Form 4789 must be
signed in Item 49 by an individual authorized or
designated by the financial institution to sign it
His or her title should be shown in Item 50 and the
date of signature entered in Item 51. This sip**^*
name should be typed or printed legibly in Item 52.
Items 53, 54, and 55— Signature, date, and
telephone number.— The official who review*
and approves the information on the form must
sign in Item 53 and enter the date signed in Item
54. In item 55 provide the commercial telephone
number of a contact person to answer any
questions about this report
DEPARTM EN T OF THE T R EA SU R Y
ADMINISTRATIVE RULING
31 U.S.C. 5313 - Reports of domestic coins and currency
transactions.
31 C.F.R. 103.22 - Reports of currency transactions.
Exemptions: special exemption for a group of accounts
belonging to the same customer. Under sections 103.22(b)
(2)(i) and 103.22(b)(2)(ii) of the Bank Secrecy Act ("BSA")
regulations, a bank may exempt only [d]eposits or withdrawals
of currency from an existing account by an established
depositor who is a United States resident and operates a
retail type of business in the United States or one of the
businesses specified in Section 103.22(b)(2)(ii). 31 C.F.R.
Part 103. A bank may not unilaterally grant one exemption
or establish a single dollar exemption limit for a group of
existing accounts of the same customer. Under section
103.22(e), however, a bank may apply to the Internal Revenue
Service ("IRS") for additional authority to grant exemptions
to the reporting requirements not otherwise permitted under
section 103.22(b). Under this authority and at the request
of a bank, the IRS may, in its discretion, provide the bank
with authority to grant one exemption and one exemption
limit applicable to a group of exemptible accounts that
belong to the same customer and have the same Taxpayer
Identification Number ("TIN"). Only accounts with trans
actions of less than $10,000 in currency may be included in
the group exemption, and the aggregated transactions of the
various accounts included in the group must regularly and
frequently exceed $10,000 in currency.
BSA Ruling 89-1
ISSUE
Under Section 103.22 of the BSA regulations, may a bank
unilaterally grant one exemption or establish a single
dollar exemption limit for a group of existing accounts of
the same customer? If not, may a bank obtain additional
authority from the IRS to grant a single exemption for a
group of exemptible accounts belonging to the same customer?
FACTS
ABC Inc. ("ABC"), with TIN 12-3456789, owns five fast food
restaurants. Each restaurant has its own account at the X
State Bank and each restaurant routinely deposits less than
$10,000 into its individual account. However, when the
deposits into these five accounts are aggregated they
regularly and frequently exceed $10,000. Accordingly, the
89-1
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bank prepares and files one CTR for ABC Inc., on each
business day that ABC's aggregated currency transactions
exceed $10,000. X State Bank wants to know whether it can
unilaterally exempt these five accounts having the same TIN,
and, if not, whether it can obtain additional authority from
the IRS to grant a single exemption to the group of five
accounts belonging to ABC.
LAW AND ANALYSIS
Under section 103.22(b)(2)(i) and (ii) of the Bank Secrecy
Act ("BSA") regulations, 31 C.F.R. Part 103, only an indi
vidual account of a customer may be unilaterally exempted
from the currency transaction reporting provisions. The
bank may not unilaterally grant one exemption or establish a
single dollar exemption limit for multiple accounts of the
same customer. This is because sections 103.22 (b) (2) (i) and
103.22(b)(2)(ii) of the BSA regulations only permit a bank
to unilaterally exempt "[djeposits or withdrawals of currency
from an existing account by an established depositor who is
a United States resident and operates a retail type of
business in the United States." 31 C.F.R. 103.22(b) (2)(i)
and (ii) .
Section 103.22(e) of the BSA regulations provides, however,
that "[a] bank may apply to the ... [IRS] for additional
authority to grant exemptions to the reporting requirements
not otherwise permitted under paragraph (b) of this sec
tion ... ." 31 C.F.R. 103.22 (e). Therefore, under this
authority, and at the request of a bank, the IRS may, in its
discretion, grant the requesting bank additional authority
to exempt a group of accounts when the following conditions
are met:
(1)
Each of the accounts in the group is owned by the same
person and has the same taxpayer identification
number.
(2)
The deposits or withdrawals into each account are made
by a customer that operates a business that may be
either unilaterally or specially exemptible and each
account meets the other exemption criteria (except for
the dollar amount).
(3)
Currency transactions for each account individually do
not exceed $10,000 on a regular and frequent basis.
(4)
Aggregated currency transactions for all accounts
included in the group regularly and frequently exceed
$ 10 ,000 .
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If a bank determines that an exemption would be appropriate
in a situation involving a group of accounts belonging to a
single customer, it must apply to the IRS for authority to
grant one special exemption covering the accounts in ques
tion. As with all requests for special exemptions, any
request for additional authority to grant a special exemp
tion must be made in writing and accompanied by a statement
of the circumstances that warrant special exemption treat
ment and a copy of the statement signed by the customer as
required by section 103.22(d). 31 C.F.R. 103.22(d).
Additional authority to grant a special exemption for a
group of accounts must be obtained from the IRS regardless
of whether the businesses may be unilaterally exempted under
103.22(b)(2), because the exemption, if granted, would apply
to a group of existing accounts as opposed to an individual
existing account. 31 C.F.R. § 103.22(b)(2).
Also, if any one of a given customer's accounts has regular
and frequent currency transactions which exceed $10,000,
that account may not be included in the group exemption.
This is because the bank may, as provided by section
103.22(b)(2), either unilaterally exempt that account or
obtain authority from the IRS to grant a special exemption
for that account if it meets the other criteria for exemp
tion. Thus, only accounts of exemptible businesses which do
not have regular and frequent (e.g,, daily, weekly or twice
a month) currency transactions in excess of $10,000 may be
eligible for a group exemption.
The intention of this special exemption is to permit banks
to exempt the accounts of established customers, such as the
ABC Inc. restaurants described above, which are owned by the
same person and have the same TIN but which individually do
not have sufficient currency deposit or withdrawal activity
that regularly and frequently exceed $10,000.
HOLDING
If X State Bank determines that an exemption would be
appropriate for ABC Inc., it must apply to the IRS for
authority to grant one special exemption covering ABC's five
separate accounts. As with all requests for special exemp
tions, ABC's request for additional authority to grant a
special exemption must be made in writing and accompanied by
a statement of the circumstances that warrant special
exemption treatment and a copy of the statement signed by
the customer as required by section 103.22(d). 31 C.F.R.
103.22(d). The IRS may, in its discretion, grant additional
authority to exempt the ABC accounts if: (1) they have the
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same taxpayer identification number; (2) they each are for
customers that operate a business that may be either unilat
erally or specially exemptible and each account meets the
other exemption criteria (except for dollar amount); (3) the
currency transactions for each account individually do not
exceed $10,000 on a regular and frequent basis; but (4) when
aggregated the currency transactions for all the accounts
regularly and frequently do exceed $10,000.
Gerald L. Hilsher
Deputy Assistant Secretary
(Law Enforcement)
DEPARTM ENT OF THE T R EA SU R Y
ADMINISTRATIVE RULING
89-2
31 U.S.C. 5313 - Reports on Domestic Coins and Currency
Transactions
31 C.F.R. 103.22 - Reports of Currency Transactions
Exemptions? aggregation and reporting of multiple transactions
involving exempted accounts. When a customer has more than one
account and a bank has knowledge that multiple currency transactions
have been conducted in these accounts on the same business day,
the bank must aggregate the transactions in those accounts. Where
one or more of the customers' accounts has been exempted, the bank
must total the currency transactions within each account to
determine whether the exemption limit has been exceeded. If the
exemption limit has not been exceeded, the bank does not have to
aggregate the transactions for the exempted account with any
other of the customer's currency transactions. If the total of
the transactions involving the exempt account exceeds the
exemption limit, the bank must aggregate those transactions with
the transactions from any other exempted accounts where the
exemption limit has been exceeded, with the transactions from any
nonexempt accounts, and with any reportable transactions
conducted by or on behalf of the customer that do not involve
accounts (e.g., purchases of bank checks or "cash back"
transactions) of which the bank has knowledge.
Bank Secrecy Act Administrative Ruling 89-2
ISSUE
When a customer has established bank accounts for each of several
establishments that it owns, and the bank has exempted one or
more of those accounts, how does the bank aggregate the customer's
currency transactions?
FACTS
X Company ("X") operates two fast-food restaurants and a wholesale
food business. X has opened separate bank accounts at the A National
Bank (the "bank") for each of its two restaurants, account numbers
1 and 2 respectively. Each of these two accounts has been properly
exempted by the bank. Account number 1 has an exemption limit of
$25,000 for deposits, and account number 2 has an exemption limit
of $40,000 for deposits. X also has a third account, account
number 3, at the bank for use in the operation of its wholesale
food business. On occasion, cash deposits of more than $10,000
are made into this third account.
Because these cash deposits
are infrequent, the bank cannot obtain additional authority to
grant this account a special exemption.
- 2 -
During the same business day, two $15,000 cash deposits totalling
$30,000 are made into account number 1, a separate cash deposit
of $35,000 is made into account number 2 and a deposit of $9,000
in currency is made into account number 3 (X's account for its
wholesale food business) .
The bank must now determine how to aggregate and report all of
these transactions on a Form 4789, Currency Transaction Report,
("CTR"). Must they aggregate all of the deposits made into
account numbers 1, 2 and 3 and report them.on a single CTR?
LAW AND ANALYSIS
Section 103.22 of the Bank Secrecy Act ("BSA"), 31 CFR Part 103,
requires a financial institution to treat multiple currency
transactions "as a single transaction if the financial institution
has knowledge that they are by or on behalf of any person and
result in either cash-in or cash-out totalling more than $10,000
during any one business day." This means that a financial institu
tion must file a CTR if it knows that multiple currency transactions
involving two or more accounts have been conducted by or on behalf
of the same person and, those transactions, when aggregated, exceed
$10,000 . Knowledge, in this context,, means knowledge on the part
of a partner, director, officer or employee of the institution or
on the part of any existing computer or manual system at the
institution that permits it to aggregate transactions.
Thus, if the bank has knowledge of multiple transactions, the
bank should aggregate the transactions in the following manner.
First, the bank should separately review and total all cash-in
and cash-out transactions within each account. Cash-in transac
tions should be aggregated with other cash-in transactions and
cash-out transactions should be aggregated with cash-out trans
actions. Cash-in and cash-out transactions should not be
aggregated together or offset against each other.
Second, the bank should determine whether the account has an
exemption limit. If the account has an exemption limit, the bank
should determine whether it has been exceeded.
If the exemption
limit has not been exceeded, the transactions for the exempted
account should not be aggregated with other transactions.
If the total transactions during the same business day for a
particular account exceed the exemption limit, the total of all
of the transactions for that account should be aggregated with
the total amount of the transactions for other accounts that exceed
their respective exemption limits, with any accounts without
exemption limits, and with transactions conducted by or on behalf
of the same person that do not involve accounts (e.g., purchases
of bank checks with cash) of which the bank has knowledge.
In the example discussed above, all of the transactions have been
conducted "on behalf of" X, as X owns the restaurants and the whole
sale food business.
The total $30,000 deposit for account 1 exceeds
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the $25,000 exemption limit for that account. The $35,000 deposit
into account number 2 is less than the $40,000 exemption limit
for that account. Finally, the $9,000 deposit into account
number 3, does not by itself constitute a reportable transaction.
Therefore, under the facts above, the bank should aggregate the
entire $30,000 deposit into account number 1 (not just the amount
that exceeds the exemption limit), with the $9,000 deposit into
account number 3, for a total of $39,000. The bank should not
include the $35,000 deposit into account number 2, as that deposit
does not exceed the exemption limit for that account. Accordingly,
the bank should complete and file a single CTR for $39,000.
If the bank does not have knowledge that multiple currency
transactions have been conducted in these accounts on the same
business day (e.g., because it does not have a system that
aggregates among accounts and the deposits were made by three
different individuals at different times) the bank should file
one CTR for $30,000 for account number 1, as the activity into
that account exceeds its exemption limit.
HOLDING
When a customer has more than one account and a bank employee has
knowledge that multiple currency transaction have been conducted
in the accounts or the bank has an existing computer or manual
system that permits it to aggregate transactions for multiple
accounts, the bank should aggregate the transactions in the
following manner.
First, the bank should aggregate for each account all cash-in or
cash-out transactions conducted during one business day. If the
account has an exemption limit, the bank should determine whether
the exemption limit of that account has been exceeded. If the
exemption limit has not been exceeded, the total of the transactions
for that particular account does not have to be aggregated with other
transactions.
If the total transactions during the same business
day for a particular account exceed the exemption limit, however,
the total of all of the transactions for that account should be
aggregated with any total from other accounts that exceed their
respective exemption limits, with any accounts without exemption
limits, and with any reportable transactions conducted by or on
behalf of the customer not involving accounts (e.g., purchases of
bank checks or "cash back" transactions) of which the bank has
knowledge. The bank should then file a CTR for the aggregated
amount.
Michael L. Williams
Deputy Assistant Secretary
(Law Enforcement)
JUN211989
Date
@FedFRASER