How many reportable transactions must a non-listed business conduct to qualify under Phase II?

In the context of BSA (Bank Secrecy Act) Compliance, Phase II specifically pertains to certain non-listed businesses that engage in transactions that must be reported. To qualify under Phase II, a non-listed business must conduct a minimum of five reportable transactions within a specified period. This requirement helps to establish a pattern of activity that raises the need for further scrutiny and reporting, ensuring that frequent transactions are monitored for potential money laundering or suspicious behavior.

The threshold of five or more transactions is set to ensure that there is a significant enough volume of activity to warrant further investigation and compliance measures. This applies particularly to businesses that are not publicly traded but still engage in financial activities that could be subject to regulatory oversight. In contrast, fewer transactions may not provide sufficient insight into the business practices or risk levels of a non-listed entity.