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FinCEN Proposes the Designation of Eligible Customers as Exempt Person

As a part of the Paperwork Reduction Act of 1995, the Financial Crime Enforcement Network (FinCEN) has proposed a renewal of the regulations. The proposal does not make any change with the presently approved regulation of the collection of information under the current Bank Secrecy Act. To be more specific, the regulation allows banks to file DOEP Report (Designation of Exempt Person Report), FinCEN Report 110, for the eligible customers. It allows eligible customers to be designated as an exempt person, which means the bank is no longer obligated to report the authorities regarding any transaction of more than $10,000 with legitimate customers. 

The regulation also requires banks to ensure that the exempt person meets all the exempt person requirement before designating the exempt person to such customers. The bank must also record the documents of how the bank concluded the exempt person status to the person, the annual review must be done to ensure the legitimacy of the exempt person and if they are still eligible, compliance with DOEP Report requirement must also be documented, and an on-going monitoring system must be maintained that is made to keep a check on every account of a non-listed business or payroll customer. 

There is no proposed change in the information collection and its methods, but this comment period is for the yearly burden of time and the resources spent on the compliance of these regulations. The same reason the Paperwork Reduction Act was passed in 1995, to reduce the burden paperwork on these banks.

The comments must be submitted either through the Mail or Federal E-Rulemaking Portal. The comments regarding FinCEN current regulations will also be taken into the account. The comments submitted will become a public record. The period of comment extends to 26, March 2021.