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8000 - Miscellaneous Statutes and Regulations
Subpart C—Records Required To Be
Maintained
§ 103.31 Determination by the Secretary.
The Secretary hereby determines that the records required to be kept
by this subpart have a high degree of usefulness in criminal, tax, or
regulatory investigations or proceedings.
[Codified to 31 C.F.R.
§ 103.31]
§ 103.32 Records to be made and retained by persons having
financial interests in foreign financial accounts.
Records of accounts required by
§ 103.24 to be reported
to the Commissioner of Internal Revenue shall be retained by each
person having a financial interest in or signature or other authority
over any such account. Such records shall contain the name in which
each such account is maintained, the number or other designation of
such account, the name and address of the foreign bank or other person
with whom such account is maintained, the type of such account, and the
maximum value of each such account during the reporting period. Such
records shall be retained for a period of 5 years and shall be kept at
all times available for inspection as authorized by law. In the
computation of the period of 5 years, there shall be disregarded any
period beginning with a date on which the taxpayer is indicted or
information instituted on account of the filing of a false or
fraudulent Federal income tax return or failing to file a Federal
income tax return, and ending with the date on which final disposition
is made of the criminal proceeding.
[Codified to 31 C.F.R. § 103.32]
[Section 103.32 amended at 52 Fed. Reg. 11444, April 8,
1987, effective May 8, 1987]
{{12-31-07 p.8498.02-F}}
§ 103.33 Records to be made and retained by financial
institutions.
Each financial institution shall retain either the original or a
microfilm or other copy or reproduction of each of the following:
(a) A record of each extension of credit in an amount in excess of
$10,000, except an extension of credit secured by an interest in real
property, which record shall contain the name and address of the person
to whom the extension of credit is made, the amount thereof, the nature
or purpose thereof, and the date thereof;
(b) A record of each advice, request, or instruction received or
given regarding any transaction resulting (or intended to result and
later cancelled if such a record is normally made) in the transfer of
currency or other monetary instruments, funds, checks, investment
securities, or credit, of more than $10,000 to or from any person,
account, or place outside the United States.
(c) A record of each advice, request, or instruction given to
another financial institution or other person located within or without
the United States, regarding a transaction intended to result in the
transfer of funds, or of currency, other monetary instruments, checks,
investment securities, or credit, of more than $10,000 to a person,
account or place outside the United States.
(Approved by the Office of Management and Budget under control number
1505-0063)
(d) A record of such information for such period of time as the
Secretary may require in an order issued under
§ 103.26(a), not to
exceed five years.
(e) Banks. Each agent, agency, branch, or office located
within the United States of a bank is subject to the requirements of
this paragraph (e) with respect to a funds transfer in the amount of
$3,000 or more:
(1) Recordkeeping requirements. (i) For each payment
order that it accepts as an originator's bank, a bank shall obtain and
retain either the original or a microfilm, other copy, or electronic
record of the following information relating to the payment order:
(A) The name and address of the originator;
(B) The amount of the payment order;
(C) The execution date of the payment order;
(D) Any payment instructions received from the originator with
the payment order;
(E) The identity of the beneficiary's bank; and
(F) As many of the following items as are received with the
payment order: 1
(1) The name and address of the beneficiary;
(2) The account number of the beneficiary; and
(3) Any other specific identifier of the beneficiary.
(ii) For each payment order that it accepts as an intermediary
bank, a bank shall retain either the original or a microfilm, other
copy, or electronic record of the payment order.
(iii) For each payment order that it accepts as a beneficiary's
bank, a bank shall retain either the original or a microfilm, other
copy, or electronic record of the payment order.
(2) Originators other than established customers. In
the case of a payment order from an originator that is not an
established customer, in addition to obtaining and retaining the
information required in paragraph (e)(1)(i) of this section:
(i) If the payment order is made in person, prior to acceptance
the originator's bank shall verify the identity of the person placing
the payment order. If it accepts the payment order, the originator's
bank shall obtain and retain a record of the name and address, the type
of identification reviewed, the number of the identification document
(e.g., driver's license), as well as a record of the
person's taxpayer identification number (e.g., social
security or employer identification number) or, if none, alien
identification number or passport number and country of issuance, or a
notation in the record of the lack thereof.
{{12-31-01 p.8498.02-G}}If the
originator's bank has knowledge that the person placing the payment
order is not the originator, the originator's bank shall obtain and
retain a record of the originator's taxpayer identification number
(e.g., social security or employer identification number)
or,
{{2-27-04 p.8498.03}}if none, alien
identification number or passport number and country of issuance, if
known by the person placing the order, or a notation in the record of
the lack thereof.
(ii) If the payment order accepted by the originator's bank is
not made in person, the originator's bank shall obtain and retain a
record of name and address of the person placing the payment order, as
well as the person's taxpayer identification number (e.g.,
social security or employer identification number) or, if none,
alien identification number or passport number and country of issuance,
or a notation in the record of the lack thereof, and a copy or record
of the method of payment (e.g., check or credit card
transaction) for the funds transfer. If the originator's bank has
knowledge that the person placing the payment order is not the
originator, the originator's bank shall obtain and retain a record of
the originator's taxpayer identification number (e.g.,
social security or employer identification number) or, if none,
alien identification number or passport number and country of issuance,
if known by the person placing the order, or a notation in the record
of the lack thereof.
(3) Beneficiaries other than established customers.
For each payment order that it accepts as a beneficiary's bank for
a beneficiary that is not an established customer, in addition to
obtaining and retaining the information required in paragraph
(e)(1)(iii) of this section:
(i) if the proceeds are delivered in person to the beneficiary or
its representative or agent, the beneficiary's bank shall verify the
identity of the person receiving the proceeds and shall obtain and
retain a record of the name and address, the type of identification
reviewed, and the number of the identification document (e.g.,
driver's license), as well as a record of the person's taxpayer
identification number (e.g., social security or employer
identification number) or, if none, alien identification number or
passport number and country of issuance, or a notation in the record of
the lack thereof. If the beneficiary's bank has knowledge that the
person receiving the proceeds is not the beneficiary, the beneficiary's
bank shall obtain and retain a record of the beneficiary's name and
address, as well as the beneficiary's taxpayer identification number
(e.g., social security or employer identification number)
or, if none, alien identification number or passport number and country
of issuance, if known by the person receiving the proceeds, or a
notation in the record of the lack thereof.
(ii) if the proceeds are delivered other than in person, the
beneficiary's bank shall retain a copy of the check or other instrument
used to effect payment, or the information contained thereon, as well
as the name and address of the person to which it was sent.
(4) Retrievability. The information that an
originator's bank must retain under paragraphs (e)(1)(i) and (e)(2) of
this section shall be retrievable by the originator's bank by reference
to the name of the originator. If the originator is an established
customer of the originator's bank and has an account used for funds
transfers, then the information also shall be retrievable by account
number. The information that a beneficiary's bank must retain under
paragraphs (e)(1)(iii) and (e)(3) of this section shall be retrievable
by the beneficiary's bank by reference to the name of the beneficiary.
If the beneficiary is an established customer of the beneficiary's bank
and has an account used for funds transfers, then the information also
shall be retrievable by account number. This information need not be
retained in any particular manner, so long as the bank is able to
retrieve the information required by this paragraph, either by
accessing funds transfer records directly or through reference to some
other record maintained by the bank.
(5) Verification. Where verification is required under
paragraphs (e)(2) and (e)(3) of this section, a bank shall verify a
person's identity by examination of a document (other than a bank
signature card), preferably one that contains the person's name,
address, and photograph, that is normally acceptable by financial
institutions as a means of identification when cashing checks for
persons other than established customers. Verification of the identity
of an individual who indicates that he or she is an alien or is not a
resident of the United States may be made by passport, alien
identification card, or other official document evidencing nationality
or residence (e.g., a foreign driver's license with
indication of home address).
(6) Exceptions. The following funds transfers are not
subject to the requirements of this section:
(i) Funds transfers where the originator and beneficiary are any
of the following:
{{2-27-04 p.8498.04}}
(A) A bank;
(B) A wholly-owned domestic subsidiary of a bank chartered
in the United States;
(C) A broker or dealer in securities;
(D) A wholly-owned domestic subsidiary of a broker or dealer in
securities;
(E) A futures commission merchant or an introducing broker in
commodities;
(F) A wholly-owned domestic subsidiary of a futures commission
merchant or an introducing broker in commodities;
(G) The United States;
(H) A state or local government; or
(I) A federal, state or local government agency or
instrumentality; and
(ii) Funds transfers where both the originator and the
beneficiary are the same person and the originator's bank and the
beneficiary's bank are the same bank.
(f) Nonbank financial institutions. Each agent, agency,
branch, or office located within the United States of a financial
institution other than a bank is subject to the requirements of this
paragraph (f) with respect to a transmittal of funds in the amount of
$3,000 or more:
(1) Recordkeeping requirements. (i) For each
transmittal order that it accepts as a transmittor's financial
institution, a financial institution shall obtain and retain either the
original or a microfilm, other copy, or electronic record of the
following information relating to the transmittal order:
(A) The name and address of the transmittor;
(B) The amount of the transmittal order;
(C) The execution date of the transmittal order;
(D) Any payment instructions received from the transmittor with
the transmittal order;
(E) A futures commission merchant or an introducing broker in
commodities;
(F) A wholly-owned domestic subsidiary of a futures commission
merchant or an introducing broker in commodities;
(G) The identity of the recipient's financial institution;
(H) As many of the following items as are received with the
transmittal order: 2
(1) The name and address of the recipient;
(2) The account number of the recipient; and
(3) Any other specific identifier of the recipient;
and
(I) Any form relating to the transmittal of funds that is
completed or signed by the person placing the transmittal order.
(ii) For each transmittal order that it accepts as an
intermediary financial institution, a financial institution shall
retain either the original or a microfilm, other copy, or electronic
record of the transmittal order.
(iii) For each transmittal order that it accepts as a recipient's
financial institution, a financial institution shall retain either
the original or a microfilm, other copy, or electronic record of the
transmittal order.
(2) Transmittors other than established customers. In
the case of a transmittal order from a transmittor that is not an
established customer, in addition to obtaining and retaining the
information required in paragraph (f)(1)(i) of this section:
(i) If the transmittal order is made in person, prior to
acceptance the transmittor's financial institution shall verify the
identity of the person placing the transmittal order. If it accepts the
transmittal order, the transmittor's financial institution shall obtain
and retain a record of the name and address, the type of
identification reviewed, and the number of the identification document
(e.g., driver's license), as well as a record of the
person's taxpayer identification number (e.g., social
security or employer identification number) or, if none, alien
identification number or passport number and country of issuance, or a
notation in the record the lack thereof. If the transmittor's financial
institution has knowledge that the person placing the transmittal order
is not the transmittor, the transmittor's financial institution shall
obtain and retain a record of the transmittor's
{{4-30-96 p.8498.05}}taxpayer
identification number (e.g., social security or employer
identification number) or, if none, alien identification number or
passport number and country of issuance, if known by the person placing
the order, or a notation in the record the lack thereof.
(ii) If the transmittal order accepted by the transmittor's
financial institution is not made in person, the transmittor's
financial institution shall obtain and retain a record of the name and
address of the person placing the transmittal order, as well as the
person's taxpayer identification number (e.g., social
security or employer identification number) or, if none, alien
identification number or passport number and country of issuance, or a
notation in the record of the lack thereof, and a copy or record of the
method of payment (e.g., check or credit card transaction)
for the transmittal of funds. If the transmittor's financial
institution has knowledge that the person placing the transmittal order
is not the transmittor, the transmittor's financial institution shall
obtain and retain a record of the transmittor's taxpayer identification
number (e.g., social security or employer identification
number) or, if none, alien identification number or passport number and
country of issuance, if known by the person placing the order or a
notation, in the record the lack thereof.
(3) Recipients other than established customers. For
each transmittal order that it accepts as a recipient's financial
institution for a recipient that is not an established customer, in
addition to obtaining and retaining the information required in
paragraph (f)(1)(iii) of this section:
(i) If the proceeds are delivered in person to the recipient or
its representative or agent, the recipient's financial institution
shall verify the identity of the person receiving the proceeds and
shall obtain and retain a record of the name and address, the type of
identification reviewed, and the number of the identification document
(e.g., driver's license), as well as a record of the
person's taxpayer identification number (e.g., social
security or employer identification number) or, if none, alien
identification number or passport number and country of issuance, or a
notation in the record of the lack thereof. If the recipient's
financial institution has knowledge that the person receiving the
proceeds is not the recipient, the recipient's financial institution
shall obtain and retain a record of the recipient's name and address,
as well as the recipient's taxpayer identification number (e.g.,
social security or employer identification number) or, if none,
alien identification number or passport number and country of issuance,
if known by the person receiving the proceeds, or a notation in the
record of the lack thereof.
(ii) If the proceeds are delivered other than in person, the
recipient's financial institution shall retain a copy of the check or
other instrument used to effect payment, or the information contained
thereon, as well as the name and address of the person to which it was
sent.
(4) Retrievability. The information that a
transmittor's financial institution must retain under paragraphs
(f)(1)(i) and (f)(2) of this section shall be retrievable by the
transmittor's financial institution by reference to the name of the
transmittor. If the transmittor is an established customer of the
transmittor's financial institution and has an account used for
transmittals of funds, then the information also shall be retrievable
by account number. The information that a recipient's financial
institution must retain under paragraphs (f)(1)(iii) and (f)(3) of this
section shall be retrievable by the recipient's financial institution
by reference to the name of the recipient. If the recipient is an
established customer of the recipient's financial institution and has
an account used for transmittals of funds, then the information also
shall be retrievable by account number. This information need not be
retained in any particular manner, so long as the financial institution
is able to retrieve the information required by this paragraph, either
by accessing transmittal of funds records directly or through reference
to some other record maintained by the financial institution.
(5) Verification. Where verification is required under
paragraphs (f)(2) and (f)(3) of this section, a financial institution
shall verify a person's identity by examination of a document (other
than a customers signature card), preferably one that contains the
person's name, address, and photograph, that is normally acceptable by
financial institutions as a
{{4-30-96 p.8498.06}}means of
identification when cashing checks for persons other than established
customers. Verification of the identity of an individual who indicates
that he or she is an alien or is not a resident of the United States
may be made by passport, alien identification card, or other official
document evidencing nationality or residence (e.g., a
foreign driver's license with indication of home address).
(6) Exceptions. The following transmittals of funds
are not subject to the requirements of this section:
(i) Transmittals of funds where the transmittor and the recipient
are any of the following:
(A) A bank;
(B) A wholly-owned domestic subsidiary of a bank chartered in the
United States bank;
(C) A broker or dealer in securities;
(D) A wholly-owned domestic subsidiary of a broker or dealer in
securities;
(E) The United States;
(F) A state or local government; or
(G) A federal, state or local government agency or
instrumentality; and
(ii) Transmittals of funds where both the transmittor and the
recipient are the same person and the transmittor's financial
institution and the recipient's financial institution are the same
broker or dealer in securities.
(g) Any transmittor's financial institution or intermediary
financial institution located within the United States shall include in
any transmittal order for a transmittal of funds in the amount of
$3,000 or more, information as required in this paragarph (g):
(1) A transmittor's financial institution shall include in the
transmittal order, at the time it is sent to a receiving financial
institution, the following information:
(i) The name and, if the payment is ordered from an account, the
account number of the transmittor;
(ii) The address of the transmittor, except for a transmittal
order through Fedwire until such time as the bank that sends the order
to the Federal Reserve bank completes its conversion to the expanded
Fedwire format;
(iii) The amount of the transmittal order;
(iv) The execution date of the transmittal order;
(v) The identity of the recipient's financial institution;
(vi) As many of the following items as are received with the
transmittal order. 3
(A) The name and address of the recipient;
(B) The account number of the recipient;
(C) Any other specific identifier of the recipient; and
(vii) Either the name and address or numerical identifier of the
transmittor's financial institution.
(2) A receiving financial institution that acts as an
intermediary financial institution, if it accepts a transmittal order,
shall include in a corresponding transmittal order at the time it is
sent to the next receiving financial institution, the following
information, if received from the sender:
(i) The name and account number of the transmittor;
(ii) The address of the transmittor, except for a transmittal
order through Fedwire until such time as the bank that sends the order
to the Federal Reserve bank completes its conversion to the expanded
Fedwire format;
(iii) The amount of the transmittal order;
(iv) The execution date of the transmittal order;
(v) The identity of the recipient's financial
institution;
{{2-27-04 p.8498.07}}
(vi) As many of the following items as are received with the
transmittal order. 4
(A) The name and address of the recipient;
(B) The account number of the recipient;
(C) Any other specific identifier of the recipient; and
(vii) Either the name and address or numerical identifier of the
transmittor's financial institution.
(3) Safe harbor for transmittals of funds prior to conversion to
the expanded Fedwire message format. The following provisions apply to
transmittals of funds effected through the Federal Reserve's Fedwire
funds transfer system by a financial institution before the bank that
sends the order to the Federal Reserve Bank completes its conversion to
the expanded Fedwire message format.
(i) Transmittor's financial institution. A
transmittor's financial institution will be deemed to be in compliance
with the provisions of paragraph (g)(1) of this section if it:
(A) Includes in the transmittal order, at the time it is sent to
the receiving financial institution, the information specified in
paragraphs (g)(1)(iii) through (v), and the information specified in
paragraph (g)(1)(vi) of this section to the extent that such
information has been received by the financial institution, and
(B) Provides the information specified in paragraphs (g)(1)(i),
(ii) and (vii) of this section to a financial institution that acted as
an intermediary financial institution or recipient's financial
institution in connection with the transmittal order, within a
reasonable time after any such financial institution makes a request
therefor in connection with the requesting financial institution's
receipt of a lawful request for such information from a federal, state,
or local law enforcement or financial regulatory agency, or in
connection with the requesting financial institution's own Bank Secrecy
Act compliance program.
(ii) Intermediary financial institution. An
intermediary financial institution will be deemed to be in compliance
with the provisions of paragraph (g)(2) of this section if it:
(A) Includes in the transmittal order, at the time it is sent to
the receiving financial institution, the information specified in
paragraphs (g)(2)(iii) through (g)(2)(vi) of this section, to the
extent that such information has been received by the intermediary
financial institution; and
(B) Provides the information specified in paragraphs (g)(2)(i),
(ii) and (vii) of this section, to the extent that such information has
been received by the intermediary financial institution, to a financial
institution that acted as an intermediary financial institution or
recipient's financial institution in connection with the transmittal
order, within a reasonable time after any such financial institution
makes a request therefor in connection with the requesting financial
institution's receipt of a lawful request for such information from a
federal, state, or local law enforcement or regulatory agency, or in
connection with the requesting financial institution's own Bank Secrecy
Act compliance program.
(iii) Obligation of requesting financial institution.
Any information requested under paragraph (g)(3)(i)(B) or
(g)(3)(ii)(B) of this section shall be treated by the requesting
institution, once received, as if it had been included in the
transmittal order to which such information relates.
(4) Exceptions. The requirements of this paragraph (g)
shall not apply to transmittals of funds that are listed in paragraph
(e)(6) or (f)(6) of this section.
(Approved by the Office of Management and Budget under control number
1505-0063)
[Codified to 31 C.F.R. § 103.33]
[Section 103.33 amended at 52 Fed. Reg. 11444, April 8, 1987,
effective May 8, 1987, except the amendment to section 103.33(b) which
is effective July 7, 1987; 54 Fed. Reg. 33679, August 16, 1989,
effective September 15, 1989; 60 Fed. Reg. 229 and 237, January 3,
1995,
{{2-27-04 p.8498.08}}effective
January 1, 1996; 60 Fed. Reg. 44144, August 24, 1995 effective April 1,
1996; 61 Fed. Red. 14385 and 14388, April 1, 1996, effective May 28,
1996; 68 Fed. Reg. 25109, May 9, 2003, effective June 9, 2003,
compliance date October 1, 2003; 68 Fed. Reg. 65399, November 29, 2003,
effective December 23, 2003]
§ 103.34 Additional records to be made and retained by banks.
(a)(1) With respect to each certificate of deposit sold or redeemed
after May 31, 1978, and before October 1, 2003 or each deposit or share
account opened with a bank after June 30, 1972, and before October 1,
2003 a bank shall, within 30 days from the date such a transaction
occurs or an account is opened, secure and maintain a record of the
taxpayer identification number of the customer involved; or where the
account or certificate is in the names of two or more persons, the bank
shall secure the taxpayer identification number of a person having a
financial interest in the certificate or account. In the event that a
bank has been unable to secure, within the 30-day period specified, the
required identification, it shall nevertheless not be deemed to be in
violation of this section if (i) it has made a reasonable effort to
secure such identification, and (ii) it maintains a list containing the
names, addresses, and account numbers of those persons from whom it has
been unable to secure such identification, and makes the names,
addresses, and account numbers of those persons available to the
Secretary as directed by him. A bank acting as an agent for another
person in the purchase or redemption of a certificate of deposit issued
by another bank is responsible for obtaining and recording the required
taxpayer identification, as well as for maintaining the records
referred to in paragraphs (b)(11) and (12) of this section. The issuing
bank can satisfy the record-keeping requirement by recording the name
and address of the agent together with a description of the instrument
and the date of the transaction. Where a person is a nonresident alien,
the bank shall also record the person's passport number or a
description of some other government document used to verify his
identity.
(2) The 30-day period provided for in paragraph (a)(1) of this
section shall be extended where the person opening the account has
applied for a taxpayer identification or social security number or Form
SS-4 or SS-5, until such time as the person maintaining the account has
had a reasonable opportunity to secure such number and furnish it to
the bank.
(3) A taxpayer identification number required under paragraph
(a)(1) of this section need not be secured for accounts or transactions
with the following: (i) Agencies and instrumentalities of Federal,
State, local or foreign governments; (ii) judges, public officials, or
clerks of courts of record as custodians of funds in controversy or
under the control of the court; (iii) aliens who are (A) ambassadors,
ministers, career diplomatic or consular officers, or (B) naval,
military or other attaches of foreign embassies and legations, and for
the members of their immediate families; (iv) aliens who are accredited
representatives of international organizations which are entitled to
enjoy privileges, exemptions and immunities as an international
organization under the International Organization Immunities Act of
December 29, 1945 (22 U.S.C. sec. 288), and the members of their
immediate families; (v) aliens temporarily residing in the United
States for a period not to exceed 180 days; (vi) aliens not engaged in
a trade or business in the United States who are attending a recognized
college or university or any training program, supervised or conducted
by any agency of the Federal Government; (vii) unincorporated
subordinate units of a tax exempt central organization which are
covered by a group exemption letter; (viii) a person under 18 years of
age with respect to an account opened as a part of a school thrift
savings program, provided the annual interest is less than $10; (ix) a
person opening a Christmas club, vacation club and similar installment
savings program provided the annual interest is less than $10; and (x)
non-resident aliens who are not engaged in a trade or business in the
United States. In instances described in paragraphs (a)(3), (viii) and
(ix) of this section, the bank shall, within 15 days following the end
of any calendar year in which the interest accrued in that year is $10
or more use its best effort to secure and maintain the appropriate
taxpayer identification number or application form therefor.
(4) The rules and regulations issued by the Internal Revenue
Service under section 6109 of the Internal Revenue Code of 1954 shall
determine what constitutes a taxpayer
{{6-30-03 p.8499}}identification
number and whose number shall be obtained in the case of an account
maintained by one or more persons.
(b) Each bank shall, in addition, retain either the original or a
microfilm or other copy or reproduction of each of the following:
(1) Each document granting signature authority over each
deposit or share account, including any notations, if such are normally
made, of specific identifying information verifying the identity of the
signer (such as a driver's license number or credit card number);
(2) Each statement, ledger card or other record on each deposit
or share account, showing each transaction in, or with respect to, that
account;
(3) Each check, clean draft, or money order drawn on the bank or
issued and payable by it, except those drawn for $100 or less or those
drawn on accounts which can be expected to have drawn on them an
average of at least 100 checks per month over the calendar year or on
each occasion on which such checks are issued, and which are (i)
dividend checks, (ii) payroll checks, (iii) employee benefit checks,
(iv) insurance claim checks, (v) medical benefit checks, (vi) checks
drawn on government agency accounts, (vii) checks drawn by brokers or
dealers in securities, (viii) checks drawn on fiduciary accounts, (ix)
checks drawn on other financial institutions, or (x) pension or annuity
checks;
(4) Each item in excess of $100 (other than bank charges or
periodic charges made pursuant to agreement with the customer),
comprising a debit to a customer's deposit or share account, not
required to be kept, and not specifically exempted, under paragraph
(b)(3) of this section;
(5) Each item, including checks, drafts, or transfers of credit,
of more than $10,000 remitted or transferred to a person, account or
place outside the United States;
(6) A record of each remittance or transfer of funds, or of
currency, other monetary instruments, checks, investment securities, or
credit, of more than $10,000 to a person, account or place outside the
United States;
(7) Each check or draft in an amount in excess of $10,000 drawn
on or issued by a foreign bank which the domestic bank has paid or
presented to a nonbank drawee for payment;
(8) Each item, including checks, drafts or transfers of credit,
of more than $10,000 received directly and not through a domestic
financial institution, by letter, cable or any other means, from a
bank, broker or dealer in foreign exchange outside the United States;
(9) A record of each receipt of currency, other monetary
instruments, investment securities or checks, and of each transfer of
funds or credit, of more than $10,000 received on any one occasion
directly and not through a domestic financial institution, from a bank,
broker or dealer in foreign exchange outside the United States; and
(10) Records prepared or received by a bank in the ordinary
course of business, which would be needed to reconstruct a transaction
account and to trace a check in excess of $100 deposited in such
account through its domestic processing system or to supply a
description of a deposited check in excess of $100. This subparagraph
shall be applicable only with respect to demand deposits.
(11) A record containing the name, address, and taxpayer
identification number, as determined under section 6109 of the Internal
Revenue Code of 1986 if available, of the purchaser of each certificate
of deposit, as well as a description of the instrument, a notation of
the method of payment, and the date of the transaction.
(12) A record containing the name, address and taxpayer
identification number, as determined under section 6109 of the Internal
Revenue Code of 1986 if available, of any person presenting a
certificate of deposit for payment, as well as a description of the
instrument and the date of the transaction.
(13) Each deposit slip or credit ticket reflecting a transaction
in excess of $100 or the equivalent record for direct deposit or other
wire transfer deposit transactions. The slip or ticket shall record the
amount of any currency involved.
(Approved by the Office of Management and Budget under control number
1505-0063)
[Codified to 31 C.F.R. § 103.34]
[Section 103.34 amended at 38 Fed. Reg. 2175,
January 22, 1973, effective January 17, 1973; 38 Fed. Reg. 3509,
February 7, 1973; 43 Fed. Reg. 21671, May 19, 1978, effective June
1,
{{6-30-03 p.8500}}1978;
43 Fed. Reg. 24527, June 6, 1978, effective June 19, 1978; 52 Fed. Reg.
11444, April 8, 1987, effective May 8, 1987, except the amendment to
section 103.34(b)(13) which is effective July 7, 1987; 68 Fed. Reg.
25109, May 9, 2003, effective June 9, 2003, compliance date October 1,
2003]
NOTE
Exemption pertaining to accounts opened for funds in
controversy. Following is a letter dated June 3, 1975 from
the Department of the Treasury to the United States League of Savings
Associations explaining that the taxpayer identification requirement in
section 103.34 (31 C.F.R. § 103.34) can be waived under certain
circumstances:
"This is in response to your letter ... requesting
that the taxpayer identification requirement in Section 103.34(a) of
Title 31 of the Code of Federal Regulations be waived for the accounts
opened in the names of public officials, judges or court officials,
acting as custodians of funds in controversy.
"The principal purpose in requiring a financial institution to
request a depositor to supply a taxpayer identification number is to
provide a minimum standard of identification for such institutions.
Since judges and other court officials are usually well-known in their
community, any benefit from having them obtain a taxpayer
identification number for their official bank accounts is highly
questionable. Therefore, an exemption from the requirements of Section
103.34(a)(1) of Title 31 of the Code of Federal Regulations is hereby
granted to all institutions considered to be banks under the definition
in Section 103.11 of the regulations with respect to deposit accounts
opened by judges, public officials and clerks of courts of record as
custodians of funds in controversy or under the control of the
court."
§ 103.35 Additional records to be made and retained by brokers
or dealers in securities.
(a)(1) With respect to each brokerage account opened with a broker
or dealer in securities after June 30, 1972, and before October 1, 2003
by a person residing or doing business in the United States or a
citizen of the United States, such broker or dealer shall within 30
days from the date such account is opened, secure and maintain a record
of the taxpayer identification number of the person maintaining the
account; or in the case of an account of one or more individuals, such
broker or dealer shall secure and maintain a record of the social
security number of an individual having a financial interest in that
account. In the event that a broker or dealer has been unable to secure
the identification required within the 30-day period specified, it
shall nevertheless not be deemed to be in violation of this section if:
(i) It has made a reasonable effort to secure such identification, and
(ii) it maintains a list containing the names, addresses, and account
numbers of those persons from whom it has been unable to secure such
identification, and makes the names, addresses, and account numbers of
those persons available to the Secretary as directed by him. Where a
person is a nonresident alien, the broker or dealer in securities shall
also record the person's passport number or a description of some other
government document used to verify his identity.
(2) The 30-day period provided for in paragraph (a)(1) of this
section shall be extended where the person opening the account has
applied for a taxpayer identification or social security number on Form
SS-4 or SS-5, until such time as the person maintaining the account has
had a reasonable opportunity to secure such number and furnish it to
the broker or dealer.
(3) A taxpayer identification number for a deposit or share
account required under paragraph (a)(1) of this section need not be
secured in the following instances: (i) Accounts for public funds
opened by agencies and instrumentalities of Federal, State, local, or
foreign governments, (ii) accounts for aliens who are (a )
ambassadors, ministers, career diplomatic or consular officers, or
(b) naval, military or other attaches of foreign embassies,
and legations, and for the members of their immediate families, (iii)
accounts for aliens who are accredited representatives to international
organizations which are entitled to enjoy privileges, exemptions, and
immunities as an international organization under the International
Organizations Immunities Act of December 29, 1945 (22 U.S.C. sec. 288),
and for the
{{6-30-03 p.8501}}members of their immediate
families, (iv) aliens temporarily residing in the United States for a
period not to exceed 180 days, (v) aliens not engaged in a trade or
business in the United States who are attending a recognized college or
university or any training program, supervised or conducted by any
agency of the Federal Government, and (vi) unincorporated subordinate
units of a tax-exempt central organization which are covered by a group
exemption letter.
(b) Every broker or dealer in securities shall, in addition, retain
either the original or a microfilm or other copy or reproduction of
each of the following:
(1) Each document granting signature or trading authority over
each customer's account;
(2) Each record described in § 240.7a--3(a)(1), (2), (3), (5),
(6), (7), (8), and (9) of Title 17, Code of Federal Regulations;
(3) A record of each remittance or transfer of funds, or of
currency, checks, other monetary instruments, investment securities, or
credit, of more than $10,000 to a person, account, or place, outside
the United States;
(4) A record of each receipt of currency, other monetary
instruments, checks, or investment securities and of each transfer of
funds or credit, of more than $10,000 received on any one occasion
directly and not through a domestic financial institution, from any
person, account or place outside the United States.
(Approved by the Office of Management and Budget under control number
1505-0063)
[Codified to 31 C.F.R. § 103.35]
[Section 103.35 amended at 37 Fed. Reg. 26518, December
13, 1972; 38 Fed. Reg. 2176, January 22, 1973, effective January 17,
1973; 50 Fed. Reg. 43692, October 22, 1985, effective November 21,
1985; 52 Fed. Reg. 11444, April 8, 1987, effective May 8, 1987; 68 Fed.
Reg. 25129, May 9, 2003, effective June 9, 2003, brokers or dealers
subject to this final regulation must comply by October 1,
2003]
§ 103.36 Additional records to be made and retained by casinos.
(a) With respect to each deposit of funds, account opened or line
of credit extended after the effective date of these regulations, a
casino shall, at the time the funds are deposited, the account is
opened or credit is extended, secure and maintain a record of the name,
permanent address, and social security number of the person involved.
Where the deposit, account or credit is in the names of two or more
persons, the casino shall secure the name, permanent address, and
social security number of each person having a financial interest in
the deposit, account or line of credit. The name and address of such
person shall be verified by the casino at the time the deposit is made,
account opened, or credit extended. The verification shall be made by
examination of a document of the type described in
§ 103.28, and the
specific identifying information shall be recorded in the manner
described in § 103.28. In the event that a casino has been unable to
secure the required social security number, it shall not be deemed to
be in violation of this section if (1) it has made a reasonable effort
to secure such number and (2) it maintains a list containing the names
and permanent addresses of those persons from whom it has been unable
to obtain social security numbers and makes the names and addresses of
those persons available to the Secretary upon request. Where a person
is a nonresident alien, the casino shall also record the person's
passport number or a description of some other government document used
to verify his identity.
(b) In addition, each casino shall retain either the original or a
microfilm or other copy or reproduction of each of the following:
(1) A record of each receipt (including but not limited to funds
for safekeeping or front money) of funds by the casino for the account
(credit or deposit) of any person. The record shall include the name,
permanent address and social security number of the person from whom
the funds were received, as well as the date and amount of the funds
received. If the person from whom the funds were received is a
non-resident alien, the person's passport number or a description of
some other government document used to verify the person's identity
shall be obtained and recorded;
{{6-30-03 p.8502}}
(2) A record of each bookkeeping entry comprising a debit or
credit to a customer's deposit account or credit account with the
casino;
(3) Each statement, ledger card or other record of each deposit
account or credit account with the casino, showing each transaction
(including deposits, receipts, withdrawals, disbursements or transfers)
in or with respect to, a customer's deposit account or credit account
with the casino;
(4) A record of each extension of credit in excess of $2,500, the
terms and conditions of such extension of credit, and repayments. The
record shall include the customer's name, permanent address, social
security number, and the date and amount of the transaction (including
repayments). If the customer or person for whom the credit extended is
a non-resident alien, his passport number or description of some other
government document used to verify his identity shall be obtained and
recorded;
(5) A record of each advice, request or instruction received or
given by the casino for itself or another person with respect to a
transaction involving a person, account or place outside the United
States (including but not limited to communications by wire, letter, or
telephone). If the transfer outside the United States is on behalf of a
third party, the record shall include the third party's name, permanent
address, social security number, signature, and the date and amount of
the transaction. If the transfer is received from outside the United
States on behalf of a third party, the record shall include the third
party's name, permanent address, social security number, signature, and
the date and amount of the transaction. If the person for whom the
transaction is being made is a non-resident alien the record shall also
include the person's name, his passport number or a description of some
other government document used to verify his identity;
(6) Records prepared or received by the casino in the ordinary
course of business which would be needed to reconstruct a person's
deposit account or credit account with the casino or to trace a check
deposited with the casino through the casino's records to the bank of
deposit.
(7) All records, documents or manuals required to be maintained
by a casino under state and local laws or regulations, regulations of
any governing Indian tribe or tribal government, or terms of (or any
regulations issued under) any Tribal-State compacts entered into
pursuant to the Indian Gaming Regulatory Act, with respect to the
casino in question.
(8) All records which are prepared or used by a casino to monitor
a customer's gaming activity.
(9)(i) A separate record containing a list of each transaction
between the casino and its customers involving the following types of
instruments having a face value of $3,000 or more:
(A) Personal checks (excluding instruments which evidence credit
granted by a casino strictly for gaming, such as markers);
(B) Business checks (including casino checks);
(C) Official bank checks;
(D) Cashier's checks;
(E) Third-party checks;
(F) Promissory notes;
(G) Traveler's checks; and
(H) Money orders.
(ii) The list will contain the time, date, and amount of the
transaction; the name and permanent address of the customer; the type
of instrument; the name of the drawee or issuer of the instrument; all
reference numbers (e.g., casino account number, personal
check number, etc.); and the name or casino license number of the
casino employee who conducted the transaction. Applicable transactions
will be placed on the list in the chronological order in which they
occur.
(10) A copy of the compliance program described in
§ 103.64(a).
(11) In the case of card clubs only, records of all currency
transactions by customers, including without limitation, records in the
form of currency transaction logs and multiple
{{8-31-01 p.8503}}currency transaction logs,
and records of all activity at cages or similar facilities, including,
without limitation, cage control logs.
(c)(1) Casinos which input, store, or retain, in whole or in part,
for any period of time, any record required to be maintained by
§ 103.33 or this section on computer disk, tape, or other
machine-readable media shall retain the same on computer disk, tape, or
machine-readable media.
(2) All indexes, books, programs, record layouts, manuals,
formats, instructions, file descriptions, and similar materials which
would enable a person readily to access and review the records that are
described in § 103.33 and this section and that are input, stored, or
retained on computer disk, tape, or other machine-readable media shall
be retained for the period of time such records are required to be
retained.
(Approved by the Office of Management and Budget under control number
1505-0063 and 1505-0087)
[Codified to 12 C.F.R. § 103.36]
[Section 103.36 added at 50 Fed. Reg. 5068, February 6,
1985, effective May 7, 1985; amended at 52 Fed. Reg. 11444, April 8,
1987, effective May 8, 1987; 54 Fed. Reg. 1167, January 12, 1989,
effective December 27, 1988; 58 Fed. Reg. 13548, March 12, 1993,
effective September 8, 1993; 59 Fed. Reg. 61662, December 1, 1994,
mandatory compliance required by June 1, 1995; 61 Fed. Reg. 7056,
February 23, 1996, effective August 1, 1996; 63 Fed. Reg. 1924, January
13, 1998, effective August 1, 1998; 64 Fed. Reg. 45453, August 20,
1999, effective September 20, 1999]
§ 103.37 Additional records to be made and retained by currency
dealers or exchangers.
(a)(1) After July 7, 1987, each currency dealer or exchanger shall
secure and maintain a record of the taxpayer identification number of
each person for whom a transaction account is opened or a line of
credit is extended within 30 days after such account is opened or
credit line extended. Where a person is a non-resident alien, the
currency dealer or exchanger shall also record the person's passport
number or a description of some other government document used to
verify his identity. Where the account or credit line is in the names
of two or more persons, the currency dealer or exchanger shall secure
the taxpayer identification number of a person having a financial
interest in the account or credit line. In the event that a currency
dealer or exchanger has been unable to secure the identification
required within the 30-day period specified, it shall nevertheless not
be deemed to be in violation of this section if:
(i) It has made a reasonable effort to secure such
identification, and
(ii) It maintains a list containing the names, addresses, and
account or credit line numbers of those persons from whom it has been
unable to secure such identification, and makes the names, addresses,
and account or credit line numbers of those persons available to the
Secretary as directed by him.
(2) The 30-day period provided for in paragraph (a)(1) of this
section shall be extended where the person opening the account or
credit line has applied for a taxpayer identification or social
security number on Form SS-4 or SS-5, until such time as the person
maintaining the account or credit line has had a reasonable opportunity
to secure such number and furnish it to the currency dealer or
exchanger.
(3) A taxpayer identification number for an account or credit
line required under paragraph (a)(1) of this section need not be
secured in the following instances:
(i) Accounts for public funds opened by agencies and
instrumentalities of federal, state, local or foreign governments,
(ii) Accounts for aliens who are--
(A) Ambassadors, ministers, career diplomatic or consular
officers, or
(B) Naval, military or other attaches of foreign embassies, and
legations, and for members of their immediate families,
(iii) Accounts for aliens who are accredited representatives to
international organizations which are entitled to enjoy privileges,
exemptions, and immunities as an interna-
{{8-31-01 p.8504}}tional
organization under the International Organizations Immunities Act of
December 29, 1945 (22 U.S.C. 288), and for the members of their
immediate families,
(iv) Aliens temporarily residing in the United States for a
period not to exceed 180 days,
(v) Aliens not engaged in a trade or business in the United
States who are attending a recognized college or any training program,
supervised or conducted by any agency of the Federal Government, and
(vi) Unincorporated subordinate units of a tax exempt central
organization which are covered by a group exemption letter.
(b) Each currency dealer or exchanger shall retain either the
original or a microfilm or other copy or reproduction of each of the
following:
(1) Statements of accounts from banks, including paid checks,
charges or other debit entry memoranda, deposit slips and other credit
memoranda representing the entries reflected on such statements;
(2) Daily work records, including purchase and sales slips or
other memoranda needed to identify and reconstruct currency
transactions with customers and foreign banks;
(3) A record of each exchange of currency involving transactions
in excess of $1000, including the name and address of the customer (and
passport number or taxpayer identification number unless received by
mail or common carrier) date and amount of the transaction and currency
name, country, and total amount of each foreign currency;
(4) Signature cards or other documents evidencing signature
authority over each deposit or security account, containing the name of
the depositor, street address, taxpayer identification number (TIN) or
employer identification number (EIN) and the signature of the depositor
or of a person authorized to sign on the account (if customer accounts
are maintained in a code name, a record of the actual owner of the
account);
(5) Each item, including checks, drafts, or transfers of credit,
of more than $10,000 remitted or transferred to a person, account or
place outside the United States;
(6) A record of each receipt of currency, other monetary
instruments, investment securities and checks, and of each transfer of
funds or credit, or more than $10,000 received on any one occasion
directly and not through a domestic financial institution, from any
person, account or place outside the United States;
(7) Records prepared or received by a dealer in the ordinary
course of business, that would be needed to reconstruct an account and
trace a check in excess of $100 deposited in such account through its
internal recordkeeping system to its depositary institution, or to
supply a description of a deposited check in excess of $100;
(8) A record maintaining the name, address and taxpayer
identification number, if available, of any person presenting a
certificate of deposit for payment, as well as a description of the
instrument and date of transaction;
(9) A system of books and records that will enable the currency
dealer or exchanger to prepare an accurate balance sheet and income
statement.
(Approved by the Office of Management and Budget under
control number 1505-0063)
(c) This section does not apply to banks that offer services in
dealing or changing currency to their customers as an adjunct to their
regular service.
(Approved by the Office of Management and Budget under control number
1505-0063)
[Codified to 31 C.F.R. § 103.37]
[Section 103.37 added at 52 Fed. Reg. 11444, April 8,
1987, effective July 7, 1987; 64 Fed. Reg. 45453, August 20, 1999,
effective September 20, 1999]
§ 103.38 Nature of records and retention period.
(a) Wherever it is required that there be retained either the
original or a microfilm or other copy or reproduction of a check,
draft, monetary instrument, investment security, or other similar
instrument, there shall be retained a copy of both front and back of
each such instrument or document, except that no copy need be retained
of the back of any instrument or document which is entirely blank or
which contains only standardized printed information, a copy of which
is on file.
{{8-31-99 p.8505}}
(b) Records required by this subpart to be retained by financial
institutions may be those made in the ordinary course of business by a
financial institution. If no record is made in the ordinary course of
business of any transaction with respect to which records are required
to be retained by this subpart, then such a record shall be prepared in
writing by the financial institution.
(c) The rules and regulations issued by the Internal Revenue
Service under 26 U.S.C. § 6109 determine what constitutes a taxpayer
identification number and whose number shall be obtained in the case of
an account maintained by one or more persons.
(d) All records that are required to be retained by this part shall
be retained for a period of five years. Records or reports required to
be kept pursuant to an order issued under § 103.26 of this part shall
be retained for the period of time specified in such order, not to
exceed five years. All such records shall be filed or stored in such a
way as to be accessible within a reasonable period of time, taking into
consideration the nature of the record, and the amount of time expired
since the record was made.
(Approved by the Office of Management and Budget under
control number 1505-0063)
[Codified to 31 C.F.R. § 103.38]
[Section 103.37 recodified at 50 Fed. Reg. 5068, February
6, 1985, effective May 7, 1985; redesignated as section 103.38 and
amended at 52 Fed. Reg. 11444, April 8, 1987, effective July 7, 1987;
54 Fed. Reg. 33679, August 16, 1989, effective September 15,
1989]
§ 103.39 Person outside the United States.
For the purposes of this subpart, a remittance or transfer of funds,
or of currency, other monetary instruments, checks, investment
securities, or credit to the domestic account of a person whose address
is known by the person making the remittance or transfer, to be outside
the United States, shall be deemed to be a remittance or transfer to a
person outside the United States, except that, unless otherwise
directed by the Secretary, this section shall not apply to a
transaction on the books of a domestic financial institution involving
the account of a customer of such institution whose address is within
approximately 50 miles of the location of the institution, or who is
known to be temporarily outside the United States.
[Codified to 31 C.F.R. § 103.39]
[Section 103.38 recodified at 50 Fed. 5068, February 6,
1985, effective May 7, 1985; redesignated as section 103.39 and amended
at 52 Fed. Reg. 11444, April 8, 1987, effective May 8,
1987]
1For funds transfers effected through the Federal Reserve's
Fedwire funds transfer system, only one of the items is required to be
retained, if received with the payment order, until such time as the
bank that sends the order to the Federal Reserve Bank completes its
conversion to the expanded Fedwire message format. Go Back to Text
2For transmittals of funds effected through the Federal
Reserve's Fedwire funds transfer system by a domestic broker or dealers
in securities, only one of the items is required to be retained, if
received with the transmittal order, until such time as the bank that
sends the order to the Federal Reserve bank completes its conversion to
the expanded Fedwire message format. Go Back to Text
3For transmittal of funds effected through the Federal
Reserve's Fedwire funds transfer system by a financial institution,
only one of the items is required to be included in the transmittal
order, if received with the sender's transmittal order, until such time
as the bank that sends the order to the Federal Reserve bank completes
its conversion to the expanded Fedwire message format. Go Back to Text
4For transmittal of funds effected through the Federal
Reserve's Fedwire funds transfer system by a financial institution,
only one of the items is required to be included in the transmittal
order, if received with the sender's transmittal order, until such time
as the bank that sends the order to the Federal Reserve bank completes
its conversion to the expanded Fedwire message format. Go Back to Text
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