James Walker DBA Walker Enterprises has been a customer of the bank for one month. The company told the bank that it would regularly make deposits in excess of $10,000 because it operates several laundromats in the city. The bank performed a background check on the company before opening the account. For its first 30 days, the company made 12 large cash deposits. Can the bank exempt this company now? Why or why not?
A bank cannot exempt a customer from reporting requirements unless the customer has maintained an account at the bank for at least 12 months. James Walker DBA Walker Enterprises has only been a customer for one month, which does not satisfy the minimum account maintenance duration required for exemption.
In this scenario, James Walker DBA Walker Enterprises has provided information about its business activities, and the bank has performed a background check before opening the account. Additionally, the company has made multiple large cash deposits in its first 30 days of operation, which align with its stated business model of operating several laundromats. Since the bank has conducted due diligence and verified the legitimacy of the cash transactions, it can exempt this company from certain reporting requirements related to large cash deposits.