Membership Development Team
P. O. Box 162407
Austin, TX 78716
Phone:  (888) 353-3933
Email
Website
Membership Contact Form

An expertly-staffed hotline, federal regulatory tools, policies and procedures, and unlimited reviews for all sizes of community banks across the U.S. — the only all-inclusive banking compliance advisory. Compliance Hub’s over 1800 products and tools support 48 separate bank compliance areas –an unlimited-access Bank Compliance Library – and conforms to the most recently published federal banking rules and regulations. Whether you are building institutional exam-readiness or a bank compliance program, C/A has all the resources, access, and availability for one membership subscription. Co-owned by the Virginia Bankers Association and 37 other state bankers associations across the country. Contact C/A’s Membership Development Team at (888) 353-3933 or at: info@compliancealliance.com. To learn more about C/A’s new Virtual Compliance Officer service or call (833) 683-0701.

Compliance Alliance Featured Q&A

Question:

Does our Trust & Wealth Management Department have to file Currency Transaction Reports?

Answer:

No matter how your bank’s Trust & Wealth Management Department is structured, it’s probably already filing something. But, depending on how it’s structured, the specific reporting obligations may differ. In most cases, the trust operation either already is (or soon will be) subject to FinCEN reporting requirements.

The starting point is 31 CFR §§ 1010.310 through 1010.314, which impose reporting requirements for transactions in currency on “financial institutions.” As the regulation states:
“§ 1010.310 Reports of transactions in currency. Sections 1010.310 through 1010.314 set forth the rules for the reporting by financial institutions of transactions in currency. Unless otherwise indicated, the transactions in currency reporting requirements in §§ 1010.310 through 1010.314 apply to all financial institutions. Each financial institution should refer to subpart C of its chapter X part for any additional transactions in currency reporting requirements.” 31 CFR 1010.310”

And:

“(t) Financial institution. Each agent, agency, branch, or office within the United States of any person doing business, whether or not on a regular basis or as an organized business concern, in one or more of the capacities listed below:

“(t) Financial institution. Each agent, agency, branch, or office within the United States of any person doing business, whether or not on a regular basis or as an organized business concern, in one or more of the capacities listed below:

(1) A bank (except bank credit card systems);

(2) A broker or dealer in securities;

(3) A money services business as defined in paragraph (ff) of this section;

(4) A telegraph company; [...]

[...] (7) A person subject to supervision by any state or Federal bank supervisory authority;

(8) A futures commission merchant;

(9) An introducing broker in commodities; or

(10) A mutual fund.” 31 CFR 1010.100(t)

If the trust department is simply an actual “department” of the national bank (operating under the same charter) then the analysis is relatively straightforward. A national bank is a “financial institution” under § 1010.100(t), and therefore the currency transaction reporting requirements in §§ 1010.310 through 1010.314 already apply – meaning an actual “bank department” where trust activity is conducted through the national bank itself would be subject to these obligations.

If, however, the trust function operates through a separately chartered trust company or wealth management affiliate (even if wholly owned by the bank) that entity must independently meet the definition of “financial institution” under § 1010.100(t) for the CTR rules to apply. Depending on its charter and supervisory status, a separately chartered entity may or may not fall within that definition.

With that said, that brings us to an important final rule – FinCEN’s “Financial Crimes Enforcement Network: Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity

Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers.” (Notably, the rule’s title – as descriptive as it is – somewhat buries the lede in terms of scope.)

This rule (which has recently had its effective date extended from January 1, 2026 to January 1, 2028) would expand the definition of “financial institution” under 31 CFR 1010.100(t) – and therefore the related filing obligations of 31 CFR §§ 1010.310 through 1010.314 (and all other applicable requirements such as AML program, SARs, etc.) – to include Registered Investment Advisers (RIAs) and Exempt Reporting Advisers (ERAs).

Accordingly, if a trust or wealth management affiliate is registered as an RIA or operates as an ERA, it would fall within the scope of these requirements as of that date.

As alluded to in our opening line (and as the final rules points out) it is additionally worth noting that RIAs are already required to report the receipt of more than $10,000 in currency and certain negotiable instruments using joint FinCEN / Internal Revenue Service Form 8300 (effectively, the current IA equivalent of a CTR), pursuant to 31 CFR 1010.330.

At a high level, depending on the actual nature of this “trust department,” they either already are subject to 31 CFR 1010.310, or eventually will be.

As always, the institution should review its organizational structure, supervisory status, and internal policies to ensure alignment with current and forthcoming FinCEN requirements.

Compliance rules and regulations change quickly! For timely compliance updates, subscribe to Compliance Alliance’s free email newsletters. Compliance Alliance also offers free demos to learn more about their services. To register for a demo, click here.