ESTADO LlBRE ASOCADO DE PUERTO RICO

OFICINA DEL COMISIONADO DE SEGUROS

Carta Circular Num. E-1-1334-94

16 de febrero de 1994

A TODOS LOS ASEGURADORES DEL PAIS y AGENTES GENERALES y GERENTESDE ASEGURADORES EXTRANJEROS AUTORIZADOS EN PUERTO RICO

Asunto: Requisitos de radicaci6n de la Forma 8300 del Serviciode Rentas Internas

Senores:

La Secci6n 60501 del C6digo de Rentas 1nternas Federal estableceque cualquier persona envuelta en una transacci6n o negocio quereciba en el curso de tal transacci6n o negocio, mas de diez mild61ares {$10,000) en efectivo, debera radicar una planillainformativa. Dicha planilla, identificada como la Forma 8300,debera incluir, entre otras cosas, el nombre y direcci6n de lapersona de quien se recibe el dinero, la cantidad de dinero, lafecha y naturaleza de la transacci6n. Para su informaci6n yconveniencia, le" incluimos copia de la Forma 8300.

En un esfuerzo para prevenir y detectar las actividades de"lavado de dinero" en la industria de seguros, el Servicio deRentas rnternas, a traves de la Asociaci6n Nacional de Comisio-nados de Seguros {NArC), ha solicitado la cooperaci6n de todos105 reguladores para que los aseguradores y sus representantescumplan con el requisito de radicaci6n de la Forma 8300.

Par tal raz6n, le informamoS que la Oficina del Comisionado deSeguros estara alerta al cumplimiento de esta disposici6n de leypor parte, tanto de los aseguradores del pais, como de los agen-tes generales y gerentes de 105 aseguradores extranjeros. Laverificaci6n de tal cumplimiento se hara mediante las auditoriasregulares que le hagamos a dichas entidades, o mediante cualquierotro mecanismo que prove a la ley.

Apartado 8330 -Estacion Fdez. Juncos -Santurce. Puerto Rico 00910 -8330

-2-

En vista de 10 anterior, requerimos por la presente el cumpli-miento estricto de la referida disposici6n legal del C6digo deRentas Internas Federal.

ILLL

(puan Antonio GarciaComisionado de Seguros

Anejo

14 Method used to verify identity: a Describe identification ~ b Issued by c Number

Person See Definitions on Whose Behalf This Transaction Was Conducted15 If this transaction was conducted on behalf of more than one person. see instructions and check here. ~ n16 This person is an: D individual or D or anization 17 If funded by another party. see instructions and check here. ~ .

18 Individual's last name or Organization's name 19 First name! 20 Middle initial 21 Social security number

22 Doing business as (DBA) name (see instructions)

Employer identification number

23 Alien identification:

b Issued by

a Describe identification ~

c Number

24 Address (number. street, and apt. or suite no.) I 25 Occupation, profession, or business

[27 State \ 28 ZIP codel29 Country (i~.S.)City26 130 Date of birth (see instructions)

Q-escriotion of Transaction and Meth~d of Pavm-en-t-318 D personal property purchased d D business services provided 9 O exchange of cash .

b D real property purchased e D intangible property purchased h O escrow or trust fundsc D personal services provided f D debt obligations paid i O other (specify) ~

32 Specific description of property or service purchased. Give serial or registration number of car. boat. airplane. etc.. address of real estate. etc.

37 If part of an installment sale. give information below and check" box. 0 : 38 Date of transactiona Number of payments b Amount of each payment $ .00 i: I: I :c Frequency: D monthly D other (describe) d Balloon payment (amount) $ .00

Business Re ortin This Transaction

39 Name of reporting business 140 Employer identification number

41 Street address (number and street) where transaction occurred Social security number

42 City 43 ~tate 144 ZIP code I 45 Nature of your business

-

46

--~-Under penalties of perjury, I declare that to the best of my knowledge the information I have furnished above is true. correct.

and complete.

SignHere ( )

(relephone number

of business)(Authorized signature-See instructions)(Type or print signer's name below)

(fitle) (Date signed)

Cat. No.621335 Form 8300 IRev. 2-92i

36a Amount of cash received in other than U.S. currency (see instructions) 1 $ .00

b Specific description of cash received in other than U.S. currency ~

vImI Continued-Complete if box 2 on page 1 is checked

Address (number. street. and apt. or suite no.) 8 Occupation. profession. or business

9 City 110 State 111 ZIP cooe! 12 Country (if not U.S.) .13 ~ate at birth (see instruc.tionsl

.I: i I i ~ ! ; I :

14 Method used to verify identity: a Describe identification ~ b Issu~d-~y c Number

18 Individual's last name or Organization's name 19 First name i 20 Middle initial 21 Social security number

22 Doing business as (DBA) name (see instructions)

Employer identification number

23 Alien identification

b Issued bv

a Describe identification ~

c Number

Address (number. street. and apt. or suite no.) 25 Occupation. profession. or business24

127 StateCity 30 Date of birth (see instructions)26

-

Multiple Parties(ComDlete aDplicable Darts below if box 2 or IS on Dace I is ChecKgOI ~

Form 8300 (Rev. 2-921 P~ge 4

the reporting of the transaction. a cashier'scheck. bank draft. traveler's check. ormoney order received in a designatedreporting transaction is not treated as cashif-.The instrument constitutes the proceedsof a loan from a bank (as defined in 31CFR 103). The recipient may rely on acopy of the loan document, a writtenstatement from the bank. or similardocumentation (such as a written lieninstru~tion from the issuer of theinstrument) to substantiate that theinstrument constitutes loan proceeds..The instrument is received in paymenton a promissory note or an installmentsales contract (including a lease that isconsidered a sale for Federal income taxpurposes). However, the exception onlyapplie~ if the notes or contracts with thesame or substantially similar terlTls areused in the ordinary course of your tradeor business in connection with sales to theultimate consumers and the total amountof payments on the note or contract thatare received on or before the 60th dayafter the date of the sale does not exceed50% of the purchase price-.The instrument is received underpayment plans requiring one or more downpayments and the payment of the balanceof the purchase price by the time of thesate (in the case of an item of travel orentertainment, the earliest date that anyitem of travel or entertainment pertaining tothe same trip or event is furnished).However, this only applies if you use planswith the same or substantially similar terlTlsin the ordinary course of your trade orbusiness in connection with sales toultimate consumers: and the instrument isreceived more than 60 days before thedate of sale (in the case of an item oftravel or entertainment, the date the finalpayment is due).Suspicious Transaction.- The terlTlsuspicious transaction means a transactionin which it appears that a person isattempting to cause ForlTl 8300 not to befiled, or a false or incomplete forlTl to befiled, or where there is an indication ofpossible illegal activity.

Specific Instructions

Complete all parts. Skip Part II if theindividual in Part I is conducting thetransaction on his or her behalf only.Item 1.-If you are reporting a suspicioustransaction (see Definitions), check box1 b. For a suspicious transaction, you arealso encouraged to telephone the localInternal Revenue Service CriminalInvestigation Division. If you do not knowthe number, please call toll-free1-800-800-2877.

Partl

Item 2.-lf two or more individualsconducted the transaction you arereporting, check the box and complete PartIon anyone of the individuals. Provide thesame inforlTlation on the other individual(s)on the back of the forlTl. If more than threeindividuals are involved, provide the sameinforlTlation on additional sheets of paperand attach them to this form.

.u.s. QoY8rn~nl Pr1ntlnQ omce: Iggl- 8'8-~~50~

Item 6.-Enter the social security numberof the individual named. If the individualhas no number. em~ -None."Item 8.-Use fully descriptive terms suchas plumber or att~. and notnondescriptive terms such as merchant.businessman. or self-employed.Item 13.-Enter six l'UF1erals for the dateof birth of the IndjvidS named. Forexample. if the incivKiJai's birth date wasJuly 6.1960. ent~07 0660.Item 14.-You must verify the name andaddress of the indvi~1 identified.Verification must be made by examinationof a document nom1ally acceptable as ameans of identification when cashingchecks (for example. a driver's license.passport. or otherofkial document). Initem 14a. enter tne type of document usedto verify the identification. In item 14b.identify the issu~ of that document. Initem 14c. enter tl1e document's nllmber.For example, if the rovidual has a Utahdriver's license. ent~ "driver's license" initem 14a. "Utah- in item 14b. and itsnumber in item 14c.

Part II

Item 15.-lf the transaction is beingconducted on behalf of more than oneperson (for example. if the individual inPart I is buying a vehicle on behalf of twopersons), check the box and complete PartII on anyone of the persons. Provide thesame information requested in Part lionthe other pers~) on the back of theform. If more than three persons areinvolved. provide the same information onadditional sheets of paper and attach themto this form.

Item 16.-lf the person named is anindividual. check the "individual" box. Forany person othB' than an individual. checkthe "organizaticxl- box. Check both boxesif the transactitX1 is on behalf of both anindividual and an organization.Item 17.-Chedc the box if any of thecash received is from a party or parties notidentified in P;wt .0' II. Provide the same

...information on that party or parties on

additional sheets of paper and attach themto this form.

Items 18 through 21.-If the person onwhose behalf tl1e transaction wasconducted is an individual. complete items18, 19. and 20. Enter his or her socialsecurity numb~ (SSN) in item 21 (enter"None" if the PeIStX1 does not have one). Ifthe individual is a sole proprietor and hasan employer identifK:ation number (EIN).enter both the SSN and EIN in item 21. Ifthe person is an organization, put its namein item 18 and its EIN in item 21. If it doesnot have an EIN. enter "None" in item 21.

Item 22.-lf a sole proprietor or otherorganization named in items 18-20 isdoing business as IDeA) under a nameother than that entered in items 18-20.enter the oeA name here.

issued the document In item 23b. ana ,

document's numoer In Item 23c.Item 30.-5ee item 13 instructions.

Part III

Item 31.-Check the appropnate box(es)that descnbe the transaction. If thetransaction is not soeclfied In boxes a-h.check box I and briefly describe It (e.g.. carlease).Items 33 through 36b.-Provide the totalprice of the goods purchased. servicesprovided. amount of cash exchanged. etc.(e.g.. the total cost of a vehicle purchased.cost of catering service. exchange ofcurrency) in item 33. Enter the totalamount of U.S. currency receivedreportable on this return (see MultiplePayments for reportIng requirements) initem 34 and the amount of $100 (andlarger) bills in item 35. Show only nearestdollar amounts. Round 50 cents or more tothe next whole dollar.

Enter in item 36a the amount of allcashier's check(s). bank draft(s), traveler'scheck(s). and/or money order(s) eachhaving a face amount of not more than$10.000 and any currency and/:>r coin ofanother country received. See thedefinitions of Cash. Provide a specificdescription of these items in 3Gb. Thisshould include the name of the ,ssuer. dateissued. amount and number of I~achcashier's check. bank draft. traveler'scheck. and/or money order plus thecountry of issuance and amollnt (in U.dollar equivalent) of any currency and/orcoin of another country. If more space isrequired enter the information r,~quired byitem 36b on additional sheets of paper andattach them to this form.Item 37.-lf the transaction is part of aninstallment sale. check the bcx. In item37a. enter the number of paym~nts agreedupon; in item 37b. enter the ~lrTIount ofeach installment payment: in item 37c.check the "monthly" box if the pay-:lentsare to be made monthly, or the "other" boxif the payments are made at any otherintervals and describe the intervals (e.g.,weekly or semi-annually). If the installmentsare for different amounts, attach aschedule.Item 38.-If the combined am:>unt of cashreceived in two or more installmentpayments exceeds $10,000, enter thepayment date that causes the combinedamount to exceed $10.000. Also. seeMultiple Payments.

Part IV

Item 4O.-Enter the EIN of the reportingbusiness. Enter your SSN only if yourbusiness has no EIN.Item 45.-Describe the nature of thebusiness filing the report. Use descriptiveterms (auto dealer. jewelry dealer) ratherthan nondescriptive terms (business.store).

insteao. The comblneo report must be filedno later than the due date for filing the firstreport.) If subsequent payments. alone orcombined. received within 1 year do not

, exceed $10.000, they need not be

reported.Exceptions.-Reaulations section1.60501-1 provides for exceptions to thereporting requirements. including:

(1) Financial institutions required to fileForm 4789, Currency Transaction Report.are exempt from filing Form 8300 for thesame transaction.

(2) Casinos required to file (or exemptfrom filing) Form 8362, CurrencyTransaction Report by Casinos. are exemptfrom filing Form 8300 for the sametransaction. However. nongamingbusinesses (such as shops. restaurants.and hotels) at the casinos must report onForm 8300 receipt of cash in excess of$10.000.

(3) Cash received by a person other thanin the person's trade or business is notreportable.

(4) Cash transactions that occur entirelyoutside the United States are generallyexempt from the reporting requirements.The United States includes the 50 statesand the District of Columbia. Howeve, , ifany part of the transaction occurs inPuerto Rico. or a possession or territory ofthe United States. and the recipient issubject to the general jurisdiction of theIRS under the Internal Revenue Code. thetransaction must be reported by therecipient.

(5) An agent who: (a) receives cash froma principal, (b) uses all of the cash within15 days in a cash transaction that isreportable on Form 8300 or 4789, and (c)discloses all the information neces1ary tocomplete Part II of Form 8300 to therecipient of the cash in the secondtransaction. does not have to file Form8300 for the initial receipt of the cash.When and Where To File.-File this formby the 15th day after the date of thetransaction with the Internal RevenueService, Detroit Computing Center. P.O.Box 32621, Detroit. MI 48232. or handcarry it to your local IRS office. Keep acopy of each Form 8300 for 5 years fromthe date you file it.Penalties.-Civil and criminal penalties.including up to 5 years imprisonment, areprovided for failure (or causing the failure)to file a report. for filing (or causing thefiling) of a false or fraudulent report. andfor structuring a transaction.Statement To Be Provided.-You mustprovide a written statement to each personnamed in Form 8300 on or before January31 of the year following the calendar yearin which the cash is received. Thestatement must show the name andaddress of the business, the total amountof reportable cash received. and that theinformation was furnished to the IRS. Keepa copy for your records.

Definitions

Person.- The term person means anindividual. corporation, partnership, trust orestate, joint stock company, association,syndicate. joint venture, or otherunincorporated organization or group,

ana all entmes treatea as legalpersonalIties. Inclualng organizations that .are exempt TrOm tax. U

Recipient.-The term recioient generallymeans tne DersOn receiving the cilsn. Eachstore. division. Drancn. deDartment.heaaQuarters. or office I-branch")(regardless of the physical locatiomcomprising a ponlon oi a person's trade orbusiness snaIl be a seDarate recipient.However. a crancn will not be considereda separate reclolent If the branch (or acentral UnIt linking such branch with otherbranches) would in the orainary course ofbusiness have reason to know the identityoi payers maKing cash payments to otherbranches oi such persons trade orbusiness.Transaction.-The term transactioninciudes (but IS not limited to) the purchaseof goods. services. personal or realproperty, and intangible property by acustomer: a aebt obligation paid for withcash; the receipt and conversion of cashto a negotiable instrument (e.g., a receiptof cash from a person in exchange for acheck); ana the receipt of cash to be heldin escrow or trust.Cash-Amounts received before02/03/92.- The term casn means the coinand currency of the United States or ofany other country, which circulate in andare customanly used and accep':ed asmoney in the country in which issued.Cash-Amounts received on or after ~02/03/92.- The term cash mearls. in ~addition to the above definition, a cashier scheck, bank draft. traveler's check, ormoney order having a face amount of notmore than $10.000 received in aDesignated Reponing Transaction asdefined below. or received in ar:ytransaction in which the recipient knowsthat such instrument is being used in anattempt to avoid the reponing of thetransaction under section 60501.Designated Reporting Transaction.-Adesignated reponing transaction is a retail~ale (or the receipt of funds by a broker orother intermediary in connection with aretail sale) of:.A consumer durable. which is an item oftangible personal propeny of a typesuitable under ordinary usage for personalconsumption or use that can reasonablybe expected to be useful for at least 1 yearunder ordinary usage. and that has a salesprice of more than $10.000..A collectible, which is any work of an.rug, antique. metal, gem, stamp, or coin asdescribed in section 408(m)(2)(A) through(D) without regard to section 408(m)(3)..A travel or entertainment activity, whichis an item of travel or entenainment thatpenains to a single trip or event if thecombined sales price of the item and allother items relating to the same trip orevent that are sold in the same transac Jt: ,

(or related transactions) exceeds $10,0

Retail Sale.-The term retail sale meansany sale (whether or not the sale is forresale or for any other purpose) made inthe course of a trade or business if thattrade or business principally consists ofmaking sales to ultimate consumers.Exceptions,-Unless the recipient knowsthat it is being used in an attempt to avoid

Paperwork Reduction Act Notice.- ThereQuested information is useful in criminal.tax.' and regulatory investigations. fornstance by airecting the FederalGovernment's attention to unusual orquestionable transactions. Trades orbusinesses are required to provide theinformation under 26 U.S.C. 60501.

The time needed to complete this form'Hill vary depending on individualcircumstances. The estimated average time'S 27 minutes. If you have commentsconcerning the accuracy of this timeestimate or suggestions for making thisform more simple. you can write to both:he Internal Revenue Service,vVashington. DC 20224. Attention: IRSReports Clearance Officer T:FP. and theOffice of Management and Budget,Paperwork Reduction Project (1545-0892),Washington. DC 20503. DO NOT send thisform to either of these offices. Instead. seeWhen and Where To File below.

Changes You Should Note

Section 60501 of the Internal RevenueCode was revised by the Revenue Act of1990 to provide that. to the extentprovided by the regulations. the term"cash" includes any monetary instrument,whether or not in bearer form, with a faceamount of not more than $10,000 (otherthan certain checks). The regulatorychange in the definition of cash is effectivefor cash amounts received on or after02/03/92. See the Definitions section ofthese instructions and Regulations section1.60501-1 for more details.

General Instructions

Who Must File.-Each person engaged ina trade or business who. during that tradeor business, receives more than $10.000 incash in one transaction or two or morerelated transactions. must file Form 8300.Any transactions conducted between apayer (or its agent) and the recipient in a24-hour period are related transactions.Transactions are considered related even ifthey occur over a period of more than 24hours if the recipient knows, or has reasonto know. that each transaction is one of aseries of connected transactions. This formmay be filed voluntarily for any suspicioustransaction (see Definitions). even if itdoes not exceed $10,000.

Multiple Payments.-How and when youmust report receipt of cash deposits. cashinstallment payments. or other similarpayments or prepayments depend on thedollar amounts of the initial andsubsequent payments.

If the initial payment exceeds $10,000. itmust be reported within 15 days. If theinitial payment does not exceed $10.000,the recipient must add the initial paymentand subsequent payments made within 1year. When the total exceeds $10.000, youmust file Form 8300 within 15 days. Ifsubsequent payments. alone or combined.received within any 1-year period exceed$10,000. they must be reported separatelywithin 15 days of the date they exceed$ 10,000 if they have not been previouslyreported. (If more than one report isrequired to be tiled within a' 5-day period.a single, combined repon may be filed