What Transactions Do Banks Report to IRS?By Joseph Nicholson, eHow Contributor

Crime doesn't pay, but when it does, it's usually in cash. Since 1970, the federal government has used mandatory reporting of large cash transactions from financial institutions as part of its arsenal against crime. In fact, the Department of Treasury, the agency that includes the IRS, has an entire division dedicated to analyzing the reports and identifying criminal activity.

1. Functiono The original purpose of reporting requirements was to target money

laundering. The scope was expanded in 1996 to include any activities deemed suspicious or fraudulent by a bank teller or institution. The compulsory reporting also serves to indemnify the banks and their employees against charges of violating a client's privacy by reporting financial transactions.

Typeso There are two main reporting requirements for banks. The first and most

common, with more than 15 million being filed in calendar year 2007, is the currency transaction report, or CTR. These are triggered simply because of the size of the transaction. The second type is called a suspicious activity report, or SAR, and is filed when the bank "knows, suspects, or has reason to suspect" that a transaction of at least $5,000 involves money derived from illegal activities or is part of a plan to violate federal laws and financial reporting requirements.

Sizeo A CTR is required for every deposit, withdrawal or exchange over $10,000 in

cash. Wire transfers or transactions by check and non-cash means are not subject to the CTR filing requirement. The requirements apply to all accounts, whether individual, group or corporate, regardless of their size. Banks are also required to aggregate all cash transactions made by or on behalf of an account on the same business day and at all branch locations. Transactions over the weekend or on holidays are treated as if made on the following business day. If the aggregate total is $10,000 or more, a CTR is required.

Featureso Most CTR filings are submitted electronically, with bank systems

programmed to automatically generate a report when the requirements are met. In addition to the amount of the transaction, the CTR includes data on the person or entity conducting the transaction, information on any agents acting on the account holder's behalf and information about the financial institution itself. The bank employee conducting the transactions can also indicate on the form if he suspects the transaction is related to crime or fraud.

Significance

o Federal, state and local law enforcement use the information on the CTR reports to track potential illegal activity. In addition to money laundering, the CTR is essential to identifying terrorist financing, drug trafficking and tax fraud.

Considerationso Banks can file with the IRS to exempt individuals from the CTR requirements.

As a matter of fact, more than 60,000 such applications were filed in 2007, though it's not clear how many were granted or for what reasons.

How Much Can You Deposit Into Your Bank Account Before They Report It to the IRS?

By Chris Hamilton, eHow Contributor

Banks do not report deposits made into a bank account to the Internal Revenue Service except under abnormal circumstances, and reporting does not depend upon the total amount of money in the account. The IRS primarily wants to discover suspicious transactions where deposited funds have been acquired through illicit means. For this reason, the IRS sets limits on the types of transactions that banks must report, requiring banks to report all cash deposits of $10,000 or more.

1. Benefitso Congress passed the Bank Secrecy Act of 1970 in order to locate instances of

money laundering and tax evasion. IRS rules on bank reporting requirements primarily help law enforcement locate and prosecute individuals in the business of selling illegal drugs. In the wake of the 9/11 terrorist attacks on the World Trade Center, bank reporting laws under the Bank Secrecy Act also help shut down sources of terrorist financing within the United States.

Typeso The IRS requires banks to report, using Form 8300, any cash bank deposit of

$10,000 or more in value. The IRS defines cash as currency or coins that are legal tender in the United States or another country. Banks do not report personal checks deposited into an account regardless of the amount, because such monies are traceable due to the funds being drawn on another customer's account. If a bank account owner deposits a cashier's check, bank draft, money order or traveler's check into their account of $10,000 or more, and the bank believes the money will be used for criminal activity, the bank must report this transaction using Form 8300.

Related Transactionso Some money launderers, terrorists or tax dodgers will make smaller deposits

to avoid reporting requirements. If a customer deposits more than $10,000 into his account in separate transactions over a 24-hour period, the bank must count all the deposits as one

transaction for reporting requirements. If a bank suspects a depositor is placing money at regular intervals into an account to avoid reporting, the institution also must report these transactions to the IRS.

Filingo Banks will mail Form 8300 within 15 days after a reportable transaction takes

place. This form requires the bank to list its business information and the personal information of the depositor. In addition, the bank must describe the amount of the transaction and how the bank received the funds. After finishing the form, banks will send the form to the IRS Detroit Computing Center.

Currency transaction reportFrom Wikipedia, the free encyclopedia

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A currency transaction report (CTR) is a report that U.S. financial institutions are required to file 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. Used in this context, currency means

the coin and/or paper money of any country that is designated as legal tender by the country of issuance.

Currency also includes U.S. silver certificates, U.S. notes, Federal Reserve notes, and official foreign bank

notes.

History [edit]

When the first version of the CTR was introduced, the only way a suspicious transaction less than $10,000 was

reported to the government was if a bank teller called law enforcement. This was primarily due to the financial

industry's concern about the right to financial privacy. On October 26, 1986, with the passage of the Money

Laundering Control Act, the right to financial privacy was no longer an issue. As part of the Act, Congress had

stated that a financial institution could not be held liable for releasing suspicious transactional information to law

enforcement. As a result, the next version of the CTR had a suspicious transaction check box at the top. This

was in effect until April 1996 when the Suspicious Activity Report (SAR) was introduced.

Procedure [edit]

When a transaction involving more than $10,000 in cash is processed, most banks have a system that

automatically creates a CTR electronically. Tax and other information about the customer is usually pre-filled by

the bank software. CTRs since 1996 include an optional checkbox at the top if the bank employee believes the

transaction to be suspicious or fraudulent, commonly called aSAR, or Suspicious Activity Report. A customer is

not directly told about the $10,000 threshold unless they initiate the inquiry. A customer may decline to continue

the transaction upon being informed about the CTR, but this would require the bank employee to file a SAR.

Once a customer presents or asks to withdraw more than $10,000 in currency, the decision to continue the

transaction must continue as originally requested and may not be reduced to avoid the filing of a CTR. For

instance, if a customer reneges on their initial request to deposit or withdraw more than $10,000 in cash, and

instead requests the same transaction for $9,999, the bank employee should deny such a request and continue

the transaction as originally requested by filing a CTR. This sort of attempt is known as structuring, and is

punishable by federal law against both the customer and the bank employee. Informed individuals who

structure their transactions at an amount near, but not over $10,000 could have their accounts closely

monitored by tellers and bank staff to see if a pattern emerges that could warrant the filing of a SAR.

**

From FIU-IND website: http://fiuindia.gov.in/

A.Overview of Reporting under PMLA

The Prevention of Money-laundering Act, 2002, and the rules thereunder require every banking company, financial institution and intermediary, to furnish to FIU-IND information relating to -

*modified by Notification No. 4/2007 dated 24-05-2007Banking Company means a banking company or a co-operative bank to which the Banking Regulation Act, 1949

applies and includes any bank or banking institution referred to in section 51 of that Act. Banking Company includes

i. All banking companies namely nationalized banks, private Indian banks and private foreign banks,

ii. All co-operative banks viz. primary co-operative banks, state co-operative banks and central co-operative banks,

iii. State Bank of India and its associates and subsidiaries,

(A) All cash transactions of the value of more than rupees ten lakhs or its equivalent in foreign currency;(B) All series of cash transactions integrally connected to each other which have been valued below rupees ten

lakhs or its equivalent in foreign currency where such series of transactions have taken place within a month;(BA) All transactions involving receipts by non-profit organisations of value more than rupees ten lakh, or its

equivalent in foreign currency;*(C) All cash transactions where forged or counterfeit currency notes or bank notes have been used as genuine or

where any forgery of a valuable security or a document has taken place facilitating the transactions;*(D) All suspicious transactions whether or not made in cash.

iv. Regional Rural Banks.Financial Institution means a Financial Institution as defined in clause (c) of section 45-I of the Reserve Bank of

India Act, 1934 (2 of 1934) and includes a chit fund company, a co-operative bank, a housing finance institution and a non banking financial company. Financial Institution includes:

i. Financial Institutions as defined in Section 45-I of the RBI Act. RBI regulates and supervises 8 All- India Financial Institutions namely EXIM Bank, NABARD, NHB, SIDBI, IFCI Ltd., IDFC Ltd., IIBI Ltd. And TFCI Ltd.

ii. Insurance companies,

iii. Hire Purchase companies,

iv. Chit fund companies as defined in the Chit Funds Act.

v. Co-operative banks.

vi. Housing finance institutions as defined in the National Housing Bank Act such as HDFC.

vii. Non-banking financial companies as defined in section 45-I of the RBI Act such as private finance companies - motor and general, hire purchase companies, leasing companies, investment companies etc.

viii. Authorised person as defined in clause (c) of section 2 of the Foreign Exchange Management Act, 1999Intermediary means a stock-broker, sub-broker, share transfer agent, banker to an issue, trustee to a trust deed,

registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser and any other intermediary associated with securities market and registered under section 12 of the Securities and Exchange Board of India Act, 1992 (15 of'1992). Intermediary includes following persons registered under Section 12 of SEBI Act:-

i. Stock brokers

ii. Sub-brokers

iii. Share transfer agents

iv. Bankers to an issue

v. Trustees to trust deed

vi. Registrars to issue

vii. Merchant bankers

viii. Underwriters

ix. Portfolio Managers

x. Investment advisers

xi. Depositories and Depository Participants

xii. Custodian of securities

xiii. Foreign institutional investors

xiv. Credit rating agencies

xv. Venture capital funds

xvi. Collective investment schemes including mutual funds*Inserted by Notification No. 13/2009 dated 12-11-2009

Cash Transaction Reports

The Prevention of Money-laundering Act, 2002, and rule thereunder require every banking company, financial institution and intermediary, to furnish to FIU-IND information relating to -

A. All cash transactions of the value of more than rupees ten lakhs or its equivalent in foreign currency;

B. All series of cash transactions integrally connected to each other which have been valued below rupees ten lakhs or its equivalent in foreign currency where such series of transactions have taken place within a month;

Suspicious Transaction Reports

Every banking company, financial institution and intermediary shall furnish to FIU-IND information of all suspicious transactions whether or not made in cash.

Suspicions transaction means a transaction referred to in clause (h), including an attempted transaction, whether or not made in cash which, to a person acting in good faith -(a) gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the Schedule to the Act, regardless of the value involved; or(b) appears to be made in circumstances of unusual or unjustified complexity; or(c) appears to have no economic rationale or bonafide purpose; or(d) gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism;*

*Amended vide Notification No 4/2007 dated 24-05-2007 and Notification No. 13/2009 dated 12-11-2009

Broad categories of reason for suspicion and examples of suspicious transactions for a banking company are indicated as under:

Identity of client

- False identification documents- Identification documents which could not be verified within reasonable time- Accounts opened with names very close to other established business entities

Background of client- Suspicious background or links with known criminals

Multiple accounts- Large number of accounts having a common account holder, introducer or authorized signatory

with no rationale- Unexplained transfers between multiple accounts with no rationale

Activity in accounts- Unusual activity compared with past transactions- Sudden activity in dormant accounts- Activity inconsistent with what would be expected from declared business

Nature of transactions- Unusual or unjustified complexity- No economic rationale or bonafide purpose- Frequent purchases of drafts or other negotiable instruments with cash- Nature of transactions inconsistent with what would be expected from declared business

Value of transactions- Value just under the reporting threshold amount in an apparent attempt to avoid reporting- Value inconsistent with the client’s apparent financial standing

Broad categories of reason for suspicion and examples of suspicious transactions for an intermediary are indicated as under:

Identity of Client

- False identification documents- Identification documents which could not be verified within reasonable time

- Non-face to face client- Doubt over the real beneficiary of the account- Accounts opened with names very close to other established business entities

Suspicious Background- Suspicious background or links with known criminals

Multiple Accounts- Large number of accounts having a common account holder, introducer or authorized signatory

with no rationale- Unexplained transfers between multiple accounts with no rationale

Activity in Accounts- Unusual activity compared to past transactions- Use of different accounts by client alternatively- Sudden activity in dormant accounts- Activity inconsistent with what would be expected from declared business- Account used for circular trading

Nature of Transactions- Unusual or unjustified complexity- No economic rationale or bonafide purpose- Source of funds are doubtful- Appears to be case of insider trading- Investment proceeds transferred to a third party- Transactions reflect likely market manipulations- Suspicious off market transactions

Value of Transactions- Value just under the reporting threshold amount in an apparent attempt to avoid reporting- Large sums being transferred from overseas for making payments- Inconsistent with the clients apparent financial standing- Inconsistency in the payment pattern by client- Block deal which is not at market price or prices appear to be artificially inflated/deflated

Counterfeit Currency Reports

The Prevention of Money-laundering Act, 2002, and rule thereunder require every banking company, financial institution and intermediary, to furnish to FIU-IND information relating to all cash transactions where forged or counterfeit currency notes or bank notes have been used as genuine or where any forgery of a valuable security or a document has taken place facilitating the transactions.

Methods of filing Reports

Method Status

Manual Filing Available

Electronic Filing on CD Available

Electronic filing over secure gateway Not Available

Due Dates for filing Reports

Report Description Due Date

CTR All cash transactions of the value of more than rupees ten lakhs or its equivalent in foreign currency.

15th day of the succeeding month

All series of cash transactions integrally connected to each other which have been

valued below rupees ten lakhs or its equivalent in foreign currency where such series of transactions have taken place within a month

CCR All cash transactions where forged or counterfeit currency notes or bank notes have been used as genuine or where any forgery of a valuable security or a document has taken place facilitating the transactions*

Not later than seven working days from the date of occurrence of such transaction*

STR All suspicious transactions whether or not made in cash Not later than seven working days on being satisfied that the transaction is suspicious*

*modified by Notification No. 4/2007 dated 24-05-2007 .

Reporting Formats

Reporting FormatRelease of Reporting Format under FINnetReporting Format Guide Version 2.0XML SchemasReport Generation Utility User Guide 1.0 Report Validation Utility User Guide 1.0

Cash Transaction Report (CTR) for a Banking Company/NBFCReporting format of CTR for a Banking Company Version 1.0 (Word Document)Reporting format of CTR for a Banking Company Version 1.0 (PDF format)Summary of CTRs for a Banking Company (Editable PDF format)CTR for a Banking Company (Editable PDF format)Annexure A- Individual Detail Sheet for a Banking Company (Editable PDF format)Annexure B- Legal Person/Entity Detail Sheet for a Banking Company (Editable PDF format)

Cash Transaction Report (CTR) for an IntermediaryReporting format of CTR for an Intermediary Version 1.0 (Word Document)Reporting format of CTR for an Intermediary Version (PDF Format)Summary of CTRs for an Intermediary (Editable PDF format)CTR for an Intermediary (Editable PDF format) Annexure A- Individual Detail Sheet for an Intermediary (Editable PDF format)Annexure B- Legal Person/Entity Detail Sheet for an Intermediary (Editable PDF format) Cash Transaction Report (CTR) for Authorized Persons and Payment System OperatorsReporting Format of CTR for Authorized Persons and Payment System Operators (Word Document)Reporting Format of CTR for Authorized Persons and Payment System Operators (PDF Format)Cash Transaction Report for Authorized Persons and Payment System Operators (Editable PDF Format)Transaction Detail Sheet for Authorized Persons and Payment System Operators (Editable PDF Format)Branch Detail Sheet for Authorized Persons and Payment System Operators (Editable PDF Format)Instrument Detail Sheet for Authorized Persons and Payment System Operators (Editable PDF Format)Individual Detail Sheet for Authorized Persons and Payment System Operators (Editable PDF Format) Legal Person/Entity Detail Sheet for Authorized Persons and Payment System Operators (Editable PDF Format) Data Quality Report for CTR Sample Data Quality Report (pdf format)Explanatory Note to Data Quality Report (pdf format)

Suspicious Transaction Report (STR) for a Banking Company/NBFC

Reporting format of STR for a Banking Company Version 1.0 (Word Document)Reporting format of STR for a Banking Company Version 1.0 (PDF format)STR for a Banking Company (Editable PDF format)Annexure A- Individual Detail Sheet for a Banking Company (Editable PDF format)Annexure B- Legal Person/Entity Detail Sheet for a Banking Company (Editable PDF format)Annexure C- Account Detail Sheet for a Banking Company (Editable PDF format)

Suspicious Transaction Report (STR) for an IntermediaryReporting format of STR for an Intermediary Version 1.0 (Word Document)Reporting format of STR for an Intermediary Version 1.0 (PDF format)STR for an Intermediary (Editable PDF format) Annexure A- Individual Detail Sheet for an Intermediary (Editable PDF format)Annexure B- Legal Person/Entity Detail Sheet for an Intermediary (Editable PDF format)Annexure C- Account Detail Sheet for an Intermediary (Editable PDF format) Suspicious Transaction Report (STR) for Authorized Persons and Payment System OperatorsReporting Format of STR for Authorized Persons and Payment System Operators (Word Document)Reporting Format of STR for Authorized Persons and Payment System Operators (PDF Format)Suspicious Transaction Report for Authorized Persons and Payment System Operators (Editable PDF Format)Transaction Detail Sheet for Authorized Persons and Payment System Operators (Editable PDF Format)Branch Detail Sheet for Authorized Persons and Payment System Operators (Editable PDF Format)Instrument Detail Sheet for Authorized Persons and Payment System Operators (Editable PDF Format)Individual Detail Sheet for Authorized Persons and Payment System Operators (Editable PDF Format) Legal Person/Entity Detail Sheet for Authorized Persons and Payment System Operators (Editable PDF Format)

Counterfeit Currency Report (CCR) Reporting format of CCR Version 1.0 (Word Document)Reporting format of CCR Version 1.0 (PDF format)Counterfeit Currency Report (CCR) (Editable PDF format)Summary of Counterfeit Currency Report (CCRS) (Editable PDF format)

Reporting Formats for NBFCsSame as reporting format for Banking Company

Reporting Formats for InsurersReporting Formats issued by IRDA for Insurers

Reporting Formats for CasinosReporting Formats issued by Government of Goa for the Casinos

**

Home > Related Acts > Overview

Overview

Related Acts >> Banking Regulation Act, 1949Related Acts >> Chit Funds Act, 1982Related Acts >> DICGC Act, 1961Related Acts >> NABARD Act, 1981

Related Acts >> National Housing Bank Act, 1987Related Acts >> RBI Act, 1934Related Acts >> SEBI Act, 1992

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Egmont Group

The Egmont Group serves as an international network fostering improved communication and interaction among FIUs. Egmont Group is named after the venue in Brussels where the first such meeting of FIUs was held in June of 1995. The goal of the Egmont Group is to provide a forum for FIUs around the world to improve support to their respective governments in the fight against money laundering, terrorist financing and other financial crimes. This support includes:

expanding and systematizing international cooperation in the reciprocal exchange of financial intelligence information,

increasing the effectiveness of FIUs by offering training and personnel exchanges to improve the expertise and capabilities of personnel employed by FIUs,

fostering better and secure communication among FIUs through the application of technology, presently via the Egmont Secure Web (ESW), and

promoting the establishment of FIUs in those jurisdictions without a national anti-money laundering/terrorist financing program in place, or in areas with a program in the beginning stages of development.

Best Practices for the Exchange of Information between Financial Intelligence Units (PDF)

**

Asia/Pacific Group

The Asia/Pacific Group on Money Laundering (APG) was officially established as an autonomous regional anti-money laundering body in February 1997 at the Fourth (and last) Asia/Pacific Money Laundering Symposium in Bangkok , Thailand . The purpose of the APG is to facilitate the adoption, implementation and enforcement of internationally accepted anti-money laundering and anti-terrorist financing standards set out in the recommendations of the Financial Action Task Force (FATF).

The APG's role includes assisting jurisdictions in the region to enact laws dealing with the proceeds of crime, mutual legal assistance, confiscation, forfeiture and extradition. It also includes the provision of guidance in setting up systems for reporting and investigating suspicious transactions and helping in the establishment of financial intelligence units. The APG undertakes studies of methods and trends of money laundering and the financing of terrorism in the Asia/Pacific region. The APG allows for regional factors to be taken into account in the implementation of anti-money laundering and anti-terrorist financing measures and provides for peer review by means of a mutual evaluation process.

The APG is a voluntary and co-operative international body established by agreement among its members and is autonomous. It does not derive from an international treaty nor is it part of any international organisation. However, it keeps itself informed of action taken or formal agreements made by relevant international and regional organisations or bodies in order to promote a consistent global response to money laundering and terrorist financing. The work to be done by the APG and its procedures is decided by consensus agreement among its members.

**

Currency Transaction Report - CTRFiled Under » American Stock Exchange, Money Laundering

Definition of 'Currency Transaction Report - CTR'A bank form used in the United States to help prevent money laundering. The form must be filled out by a bank representative who helps with a currency transaction of $10,000 or more.

Investopedia explains 'Currency Transaction Report - CTR'

The currency transaction report was initiated by the Bank Secrecy Act in 1970. However, not all transactions of $10,000 and more need to reported with a CTR. Recent legislation has identified certain groups known as "exempt persons".

There are three categories of "exempt persons". They are:

1. Any bank in the United States.2. Departments or agencies that fall under federal, state or local governments. Including any organizations that exercise government authority.3. Any corporation whose stock is traded on the NYSE, Nasdaq and American Stock Exchange (excluding stocks listed on the Emerging Company Marketplace and under the Nasdaq Small-Cap Issues heading).

**

What's On A Consumer Credit Report?May 07 2013| Filed Under » Credit Agencies, Credit Cards, Credit Report, Credit

Score, Equifax,Experian, Federal Trade Commission, FICO

In 1949, Diner's Club launched the first charge-card company. Today, Americans spend

more using credit cards than they spend with cash. With more than $2 trillion worth of

credit card transactions each year, the creditworthiness of card users is an increasingly

important issue to creditors and consumers alike.

While most people realize that their personal creditworthiness is tracked on something

called a credit report, few know much about it or their scoring system. The score, known as

a FICO score, was developed by Fair Isaac & Co. to evaluate the likelihood that consumers

will pay their bills. FICO scores range from a low of 300 (highest risk) points to a high of

850 points (lowest risk) and are used as the deciding factor on more than 75% of credit

applications, according to Equifax, one of the three major credit bureaus in the United

States.

In determining the FICO score, mathematical models are used to analyze the data on an

applicant's credit report, taking into consideration five factors: previous credit performance,

current level of indebtedness, time credit has been in use, types of credit available and

pursuit of new credit.

What's on the Report and Why Should I Care?

An in-depth look at a credit report provided by Equifax provides a good overview of the type

of information that can be obtained from any of the major credit reporting bureaus. The

Equifax report is divided into seven sections:

Personal Data

The first section contains personal data, such as current and previous addresses, social

security number and employment history. This is crucial data for identity thieves, so be sure

to protect it by making sure this information is correct and accurate, and if you discard it,

shred thoroughly.

Credit History

The second section of the Equifax report provides a summary of the applicant's credit

history. It includes the number of accounts (both open and closed) held by the applicant,

the type of accounts (mortgage, installment, revolving or others), the number of credit

inquiries over the last 12 months, the number of accounts that are past due as well as those

in good standing. Intuitively, it may seem like the more accounts you have open, the higher

your credit score will be, but when it comes to credit, more is not necessarily better.

When financial institutions review your credit report prior to approving a loan, they often

assume that you will use all of the available credit on your credit cards and factor-in the

monthly payments that would be required to service that debt. If you have a dozen credit

cards, all with zero balances, you might have no problem making a $2,000 mortgage

payment each month, but the bank might look at the situation differently. If the bank

factors in your ability to make monthly payments on a dozen credit cards in addition to a

$2,000 mortgage, your creditworthiness may be diminished.

Account Details

The third section provides detailed account information. It includes the name, account type,

account number, date opened, balance and status of every account on the applicant's

record. A breakdown of each account provides payment history, date of last activity and

contact information for the credit issuer. The section also includes a summary of past-due

accounts and accounts with a negative credit history.

If you disagree with any of this information, you have the right to challenge errors on your

credit report. Under federal law, the credit reporting agency then has 30 days to respond to

your challenge. If your challenge is successful, the offending information will be removed

from your report.

Inquiries

The fourth section addresses inquiries into the applicant's credit history. Inquiries are

classified as "hard" or "soft." Hard inquiries are "generated when you authorized a company

listed to request a copy of your credit report." The number of inquiries over a 12-month

period is tracked and taken into account when your FICO score is calculated. An excessive

number of hard inquiries have a negative impact on your score.

Soft inquiries are generated by your current creditors checking on your status, credit card

issuers reviewing your file to see if they wish to extend an unsolicited offer and you

personally checking your own credit. Potential lenders don't see these inquirers when they

review your credit report, and these inquiries do not impact your credit report.

Collections

The fifth section details any accounts that have been turned over to a credit agency. If you

failed to make payments and any of your accounts were sent to collection, information

about the delinquent accounts appears here. Similarly, the sixth section of the report

provides information about liens, wage garnishments or other judgments that appear

against you in federal, state or county court records.

Dispute Issues

The seventh section of the report provides information on how to dispute any of the

information on your credit report. When it comes to delinquent accounts and other

damaging information, the only way to repair your credit is to wait. Despite the claims of

those late-night infomercials, once negative information appears on your credit report, there

is little you can do to clear it up if the information is truthful and accurate. The FTC says

such information remains on your report for seven years, with several

exceptions: Bankruptcy remains on your report for 10 years; lawsuit-related information

remains until the suit is settled. To avoid these problems, make all payments on time and

don't ignore any issues that arise with creditors.

How That Information Impacts Your Score

Factors such as payment history, the length of time an individual has had credit and the

individual's employment history all play a role in determining your FICO score. So, even

though you may have an excellent source of income and pay all of your bills on time and in-

full, if you don't have a mortgage, car payments or revolving debt of any kind, it is unlikely

that your FICO score will be 850.

Equifax cites late payments, or lack thereof, length of credit history and the size of account

balances in relation to your credit limits as major factors that impact your FICO score. Even

if you pay off the full amount owed on your credit cards each month, the size of the bill has

an impact on your score, as large balances are frowned upon.

Check Your Credit

If you are contemplating a significant purchase, such as a second home or a substantial

piece of property, running a credit check on yourself is a good idea. If you run the check at

least 90 days prior to your purchase, you should have plenty of time to address any

discrepancies that appear on the report.

While credit reports can be obtained from a variety of sources, the three major credit

bureaus in the United States are Equifax, Experian and Trans Union. Credit reports can be

ordered online and obtained instantly. The cost of obtaining a credit report is less than $50

per person. Keep in mind that each of these credit bureaus operates independently, so you

may need to request a report from each of them to get a complete picture of your credit

history.

The Bottom Line

Despite the many advertisements that promise to repair bad credit, prevention is the best

way to avoid credit problems. Once negative information appears on your credit report,

there is little you can do to clear it up if the information is truthful and accurate. However,

over time – generally about seven to 10 years – this information is removed from your

credit report. To prevent this type of damaging information from getting onto your credit

report in the first place, as well as to improve your credit score and chances of obtaining

future financing, be sure to make all your payments on time and do not ignore issues that

arise with creditors.

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• Reduce application fraud and improve collective efforts with access to the consumer's identification and employment information.

Leverage the fresh and improved formats with new value added sections that enable thorough understanding of the consumer profile for swift decision making. Our consumer credit reports are built from our Equifax consumer credit database -- a national online database that maximizes the return of your requested consumer information.

• Contains consumer credit files from across all regions of India.• Contains the most current consumer data available in India.• Is operated using advanced search techniques and matching logic.• Is managed in our world class technology and operations center in

Mumbai.

Analytics

Equifax brings extensive global expertise in application of analytical solutions for a wide variety of business situations. our Analytics Center of Excellence has delivered over 2000 projects worldwide. We will leverage this cutting edge expertise and over 100 years of experience to deliver custom analytical solutions , industry diagnostics and cutting edge products that are relevant to the Indian business context.

Equifax offers expertise to support more profitable and robust decisions and processes across the marketing and credit lifecycle:Marketing Campaign Management : Custom response models enabling more targeted marketing campaigns leading to lower acquisition costsCredit Risk and Fraud Management Products and Solutions : Latest statistical techniques and proprietary frameworks leveraging both bureau and bank specific data leading to more effective risk and fraud segmentation strategies.

Product and Pricing Design: Superior understanding of the market leading to right product to right consumer at right time. Systematic yield optimization through comprehensive valuation, competitive and consumer price sensitivity frameworks.Collection Products and Solutions : Collectability scorecards and segmentation frameworks enabling prioritization of collector resources and collection strategies that align with customer willingness and ability.Portfolio Management : Comprehensive valuation and consumer behaviour scorecards leading to targeted retention and loyalty offerings.Governance and Monitoring Frameworks: Comprehensive monitoring toolkit to evaluate overall and segment level profitability on an ongoing basisProcess Redesign : Proven solutions that find an effective balance between origination efficiency, customer experience and credit effectiveness.Industry diagnostics : Leverage bureau and market data to provide insights into customer and macroeconomic trends at a product, lender and geographic level.

In summary, Equifax's strong expertise and experience can help address specific business and improve P&L performance through lower costs and losses, higher yields and greater consumer loyality

Registration Information Do I have to be an Equifax customer to use ePORT?

Yes, prior to accessing ePORT you must be a valid and registered Equifax customer. Contact equifax to become a customer.

What information do I need to have in order to register for

ePORT?You must have the following pieces of information in order to register for ePORT:

Company Name

Equifax Member Number (Customer Number)

Address - must match CIS physical address

Security digits - required to register for ePORT services

I have registered for ePORT however, I have not received the registration email. What should I do?

There are a couple of scenarios where you may not receive a registration email. These include:

Incorrect email address

Mismatched customer information

Email transmission problems - spam filter, etc..

If you do not receive your registration email please contact customer service at 1-800-209-3247 and ask to speak with someone in customer service and sales support about your ePORT registration request.

What are the User ID and Password?The User ID and password are pieces of information required to enter ePORT. They are typically selected by the customer during the registration process or they can be assigned by the Company Administrator.The User ID is a series of characters that ePORT uses to distinguish one user from another. The password is a series of characters that enable the user to access ePORT. These prevent unauthorized users from accessing the ePORT system. This information should be memorized and not written down or shared with anyone. Passwords must be at least 8 characters and maximum of 20 characters in length with no more than 2 repeating characters and minimally be a combination of 2 of the 3 following character sets: alpha, numeric, or special characters. Passwords are case sensitive.

What is the purpose of the Challenge Question and Answer?The challenge question and answer, which are case insensitive, are pieces of information that you select and define. They should be something known only to you and must be something that you can remember. You will need to know this information when required during the ePORT login process, and when you initiate a password reset.

Credit Information Bureau (India) Limited (CIBIL)

1 What is CIBIL ? What are its aims? CIBIL is the repository of information which is pooled in from all Banks and lending Institutions operating in India. CIBIL have a database size of over 17 crore consumer records and over 65 lacs company records contributed by our over 500 Members. The Credit Information Companies (Regulation) Act, 2005, and various Rules and Regulations issued by Reserve Bank of India has empoweredCIBIL or (Credit Information Bureau (India) Ltd to collect the data from various types of credit grantors (i.e. lenders). and then share the same within the group. The legislation has enabled banks to submit data to CIBIL without obtaining borrower consent This has enabled CIBIL to tracks repayment history of bank customers loans, credit cards and further banking finances. CIBIL’s aim is to fulfill the need of credit granting institutions for comprehensive credit information by collecting, collating and disseminating credit information pertaining to both commercial and consumer borrowers, to a closed user group of Members. Banks, Financial Institutions, Non Banking Financial Companies, Housing Finance Companies and Credit Card Companies use CIBIL’s services. Data sharing is based on the Principle of Reciprocity, which means that only Members who have submitted all their credit data, may access Credit Information Reports from CIBIL. The relationship between CIBIL and its Members is that of close interdependence.

2. Who owns CIBIL?

CIBIL's equity was held by State Bank of India, Housing Development Finance Corporation Limited, Dun & Bradstreet Information Services India Private Limited and Trans Union International Inc. The shareholding pattern was in the proportion of 40:40:10:10 respectively.The shareholding pattern has now been diversified to include the number of other banks and financial institutions representing varied categories of credit grantors

3. How Does CIBIL operates? For credit grantors to gain a complete picture of the payment history of a credit applicant, they must be able to gain access to the applicant's completecredit record that may be

spread over different institutions. CIBIL collects company and consumer credit-related data and collates such data to create and distribute credit reports to Members. Thus, we can say that CIBIL collects commercial and consumer credit-related data and collates such data to create and distribute credit reports to Members. (A Credit Information Report (CIR) is a factual record of a borrower's credit payment history compiled from information received from different credit grantors. Its purpose is to help credit grantors make informed lending decisions - quickly and objectively).

4 On which segments does CIBIL provide credit reports?

CIBIL is a composite Credit Bureau, which caters to both company and consumer segments. The Consumer Credit Bureau covers credit availed by individuals while the Company Credit Bureau covers credit availed by non-individuals such as partnership firms, proprietary concerns, private and public limited companies, etc.

5. What is a Credit Information Report?

A Credit Information Report (CIR) is a factual record of a borrower's credit payment history compiled from information received from different credit grantors. Its purpose is to help credit grantors make informed lending decisions - quickly and objectively.

6. What Should One Do, if One Finds Mistake in the CIBIL Report :

Typically, one checks credit report when one's loan gets rejected and the loan provider tells that it is because of some information on credit report. Mistakes on a credit report can be easily corrected with the CIBIL’s help. All you need to do is:

a) Purchase your CIBIL credit reportb) Identify the erroneous informationc) Provide name, address, date of birth, an Control Number and the nature of the error on the credit bureau’s website.

The Control Number is a unique 9-digit number found on the top right hand side of your CIBIL Credit Information Report and is generated every time a credit report is generated. It is very important to provide this number to the bureau, as it helps identify the CIBIL credit report on which you would like to ‘dispute’ information.

If you wish to know more details about the Dispute Rederessal System of CIBIL / consumer complaints withCIBIL. you read the details by clicking on the following link : http://www.cibil.com/faq/dispute-consumer and http://www.cibil.com/consumer-dispute-resolution .For details relating to complaints by company visit http://www.cibil.com/faq/dispute-company

7. How Can I purchase my own Report :

There is a procedure for purchase of one's own CIBIL report so that before you apply for loan, you are aware of the same . You can visit the following link to buy the report from CIBIL : http://www.cibil.com/credit-score AND https://www.cibil.com/online/manageCustomerDetails.do?action=showAddPaymentPage

Since April 2011, Credit Information Bureau (India) Ltd (CIBIL), India's first credit information company, has allowed consumers to purchase their "CIBIL TransUnion Score" directly from CIBIL. of credit institutions, is now available to consumers for Rs 450, CIBIL Managing Director Arun Thukral told reporters here. TransUnion Score helps the consumers to assess their credit history better and enable them to 'see themselves as lenders do.Knowing their CIBIL TransUnion Score will enable consumers to better manage their credit history, avail speedier access to credit and derive benefits associated with good credit history. The score is provided along with the CIBIL Credit Information Report (CIR). The TransUnion Score is a three-digit numeric summary (ranging from 300 to 900) of a consumer's credit history, compiled from information received from credit institutions who are members of CIBIL.

An individual's score provides a credit institution with an indication of the "probability of default" based on his/her credit history. It helps in estimating the likelihood of repayment of loan based on the individual's past pattern of credit usage and loan repayment behaviour. The closer the score is to 900, the more confidence the credit institution will have in the individual's ability to repay the loan and hence, the better the chances of his/her application getting approved.

Consumers can pay for availing their TransUnion Score by following an online payment procedure or through a demand draft. The higher the score, the more favourably it is viewed by credit institutions. However, every institution has its own benchmark of what constitutes a good credit score. CIBIL does not recommend any cut-off score loan application eligibility.

The country's first generic score has become the most reliable indicator for prudent decision-making for credit grantors. Financial discipline, coupled with prudent credit management and a good payment history, will ensure that individuals enjoy all the benefits associated with having a good credit score, Thukral said.CIBIL benefits both credit grantors and consumers by collecting, analysing and delivering information on credit histories of millions of borrowers. It provides its members with information on both consumer and commercial borrowers, thus enabling them make sound credit decisions across both individuals and businesses.

SOME MORE FREQUENTLY ASKED QUESTIONS (FAQs)

Is CIBIL a list of defaulters?

No. CIBIL only maintains account information of various loan customers and credit card customers irrespective of the fact whether they are defaulters or not. The information comprises their name, address, monthly repayment track record, outstanding amounts, etc.

Does Banks report the names of all customers' to CIBIL?Only the names of the borrowers i.e. those customers who have availed of a loan or a credit card from a CIBIL member, are reported to CIBIL. Details of liability accounts such as savings, fixed deposits and recurring deposits are not sent to CIBIL.

On what segments does CIBIL provide a credit report?CIBIL is a repository of credit information and in the consumer segment it provides information on the various loans availed of and cards held by an individual from a member bank. Its commercial report covers the credit availed of by non-individuals.

What is the content of a CIBIL report?CIBIL only reports loan and credit-card information such as repayment track, loan type, amount outstanding, loan amount disbursed, various dates, etc. The report also contains a

customer's personal information like name, address, date of birth, phone number(s), passport number, voter's ID number, PAN, etc. In a commercial credit report the inputs are similar but include some additional details pertaining to the commercial entity like legal constitution, registration number, etc. The credit report does not provide any opinion or comment on whether a loan should be extended to a customer. It reports the facts that its member banks and financial institutions have reported.

Can a customer's name be removed from CIBIL's database?Member banks contribute to CIBIL on a monthly basis data of all their customers who maintain a loan/credit-card account with them. Hence a customer's name cannot be removed from CIBIL's database.

If a loan is denied to a customer by one bank on the grounds of the CIBIL report, will it be denied by other banks too?Approval or rejection of a credit application depends on the bank's policies. Rejection by one bank on the grounds of the CIBIL report might not imply rejection by another bank.

If a customer's family member has defaulted, will it affect the customer's status in CIBIL's records?

The CIBIL report has information of loan/credit details of the borrower only. Therefore, for a retail customer, it would not matter if someone in his/her family has defaulted. If the customer's repayment track record is okay, his/her credit score will not be affected by that of his/her family members.

What is Credit Score :

• The credit history & repayment behaviour of a customer is translated into a number developed by CIBIL, called 'credit score'.

•• It is an indicator of the credit-worthiness of a customer. It predicts the likelihood of

a consumer defaulting on a payment. A borrower who is more financially disciplined will have a higher credit score. Higher credit scores are better.

How Does a Score Is Related to Loan Appraisal :

• A strong credit history & a higher score will get you better credit terms - better loan amounts & attractive rates of interest.

•

• If you have defaulted on any payment, then your credit history will be impacted and it may limit your ability to get a new credit product, or sustain the current product

•What if a Bank has rejected my loan application on account of unfavourable CIBIL report / score:

• If the bank is rejecting a loan on the grounds of the CIBIL report being unfavourable, then you can ask your bank for a copy of your CIBIL report or purchase the same from CIBIL.

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