Which of the following is NOT a criterion for non-listed businesses under Phase II?

The choice indicating that a business must have been in operation for at least 5 years is not a requirement under the criteria for non-listed businesses in Phase II of the BSA regulations. The focus of Phase II is primarily on the characteristics and operational patterns of the businesses that may be designated as non-listed for the purposes of regulatory compliance.

The other criteria are directly relevant to the classification of non-listed businesses. For instance, deriving less than 50% of revenues from eligible activities ensures that these businesses are engaged primarily in other types of operations, impacting how they are monitored under BSA guidelines. Being incorporated under state or federal law is a standard requirement since it establishes the legitimacy and regulatory framework under which the business operates. Additionally, engaging in transactions over $10,000 directly relates to the reporting thresholds that trigger additional scrutiny for compliance with anti-money laundering (AML) laws.

Thus, the criterion about the duration of time in business does not fit within the necessary requirements for classification as a non-listed business in this context, making it the correct choice.