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In an effort to further reform and simplify the process by which banks exempt transactions from retail and other businesses from requirements to report transactions in currency in excess of $20,000, FinCEN has adopted a "Phase II" program to provide certain "blanket relief" from non publicly-held businesses.
The new rule adds two new classes of exempt persons: "non-listed businesses" and "payroll customers."
An eligible "non-listed business" must be a bank customer located in the United States having a transaction account relationship with the exempting bank for at least 12 months involving the recurring use of currency in amounts exceeding $10,000. The subject of the exemption must also be incorporated or organized under federal or state laws, or must be registered as and eligible to do business with the United States or a state.
An eligible "payroll customer" must have been a bank customer for at least 12 months before exemption, regularly withdraw more than $10,000 to pay its United States employees, and must be organized under laws of the United States or a state, or must be registered and eligible to do business within the United States or a state.
Banks may exempt non-listed businesses or payroll customers simply by the one-time filing of a form identifying the exempt person and the exempting bank, and by renewing initial designation every two years. The exempting bank must designate each exempting person with whom it engages in currency transactions by 30 days following the first transaction in currency by any existing or new customer sought to be exempted.
The new rule adopts five special "operating rules" governing the exemption of non-listed businesses and payroll customers:
Banks may...