What is the maximum percentage of gross revenues a business can derive from ineligible activities under Phase II?

Under Phase II of the Bank Secrecy Act regulations, businesses are allowed to engage in eligible activities related to financial transactions, but there is a strict limit on the percentage of gross revenues that can come from ineligible activities to maintain compliance. The maximum percentage set by regulation for a business to derive from ineligible activities is 50%. This limit is crucial as it ensures that businesses remain primarily focused on permissible activities, thereby upholding the integrity of the financial system and minimizing the risk of facilitating money laundering or other illicit activities. By allowing up to 50% ineligible activities, the regulations create a balanced approach to encourage economic growth while maintaining oversight and compliance with the established guidelines.