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8000 - Miscellaneous Statutes and Regulations
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TITLE 31—MONEY AND FINANCE
* * * * *
Subtitle IV—Money
* * * * *
Chapter 53—Monetary Transactions
SUBCHAPTER II—RECORDS AND REPORTS ON MONETARY INSTRUMENTS
TRANSACTIONS *
5311.
Declaration of purpose.
5312.
Definitions and application.
5313.
Reports on domestic coins and currency transactions.
5314.
Records and reports on foreign financial agency transactions.
5315.
Reports on foreign currency transactions.
5316.
Reports on exporting and importing monetary instruments.
5317.
Search and forfeiture of monetary instruments.
5318.
Compliance and exemptions, and summons authority.
5318A.
Special measures for jurisdictions, financial institutions,
international transactions, or types of accounts of primary money
laundering concern.
5319.
Availability of reports.
5320.
Injunctions.
5321.
Civil penalties.
5322.
Criminal penalties.
5323.
Rewards for informants.
5324.
Structuring transactions to evade reporting requirement prohibited.
5325.
Identification required to purchase certain monetary instruments.
5326.
Records of certain domestic coin and currency transactions.
5328.
Whistleblower protections.
5329.
Staff commentaries.
5330.
Registration of money transmitting businesses.
5331.
Reports relating to coins and currency received in nonfinancial trade
or business.
5332.
Bulk cash smuggling into or out of the United
States.
§ 5311. Declaration of purpose
It is the purpose of this subchapter (except section 5315) to
require certain reports or records where they have a high degree of
usefulness in criminal, tax, or regulatory investigations or
proceedings, or in the conduct of intelligence or counterintelligence
activities, including analysis, to protect against international
terrorism.
[Codified to 31 U.S.C. 5311]
[Source: Section 202 of title II of the Act of October 26, 1970
(Pub. L. No. 91--508; 84 Stat. 1118), effective November 1, 1971;
recodified by the Act of September 13, 1982 (Pub. L. No. 97--258; 96
Stat. 995), effective September 13, 1982; section 358(a) of title III
of the Act of October 26, 2001 (Pub. L. No. 107--56; 115 Stat. 326),
effective October 26, 2001]
§ 5312. Definitions and application
(a) In this subchapter--
(1) "financial agency" means a person acting for a person
(except for a country, a monetary or financial authority acting as a
monetary or financial authority, or an international financial
institution of which the United States Government is a member) as a
financial institution, bailee, depository trustee, or agent, or acting
in a similar way related to money, credit, securities, gold, or a
transaction in money, credit, securities, or gold.
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(2) "financial institution" means--
(A) an insured bank (as defined in section 3(h) of the Federal
Deposit Insurance Act (12 U.S.C.
1813(h)));
(B) a commercial bank or trust company;
(C) a private banker;
(D) an agency or branch of a foreign bank in the United States;
(E) Any credit union;
(F) a thrift institution;
(G) a broker or dealer registered with the Securities and
Exchange Commission under the Securities Exchange Act of 1934
(15 U.S.C. 78a et
seq.);
(H) a broker or dealer in securities or commodities;
(I) an investment banker or investment company;
(J) a currency exchange;
(K) an issuer, redeemer, or cashier of travelers' checks, checks,
money orders, or similar instruments;
(L) an operator of a credit card system;
(M) an insurance company;
(N) a dealer in precious metals, stones, or jewels;
(O) a pawnbroker;
(P) a loan or finance company;
(Q) a travel agency;
(R) a licensed sender of money or any other person who engages as
a business in the transmission of funds, including any person who
engages as a business in an informal money transfer system or any
network of people who engage as a business in facilitating the transfer
of money domestically or internationally outside of the conventional
financial institutions system;
(S) a telegraph company;
(T) a business engaged in vehicle sales, including automobile,
airplane, and boat sales;
(U) persons involved in real estate closings and settlements;
(V) the United States Postal Service;
(W) an agency of the United States Government or of a State or
local government carrying out a duty or power of a business Described
in this paragraph;
(X) a casino, gambling casino, or gaming establishment with an
annual gaming revenue of more than $1,000,000 which--
(i) is licensed as a casino, gambling casino, or gaming
establishment under the laws of any State or any political subdivision
of any State; or
(ii) is an Indian gaming operation conducted under or pursuant to
the Indian Gaming Regulatory Act other than an operation which is
limited to class I gaming (as defined in section 4(6) of such Act);
(Y) any business or agency which engages in any activity which
the Secretary of the Treasury determines, by regulation, to be an
activity which is similar to, related to, or a substitute for any
activity in which any business described in this paragraph is
authorized to engage; or
(Z) any other business designated by the Secretary whose cash
transactions have a high degree of usefulness in criminal, tax, or
regulatory matters.
(3) "monetary instruments" means--
(A) United States coins and currency;
(B) as the Secretary may prescribe by regulation, coins and
currency of a foreign country, travelers' checks, bearer negotiable
instruments, bearer investment securities, bearer securities, stock on
which title is passed on delivery, and similar material; and
(C) as the Secretary of the Treasury shall provide by regulation
for purposes of sections 5316 and 5331, checks, drafts, notes, money
orders, and other similar instruments which are drawn on or by a
foreign financial institution and are not in bearer
form.
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(4) NONFINANCIAL TRADE OR BUSINESS.--The term
"nonfinancial trade or business" means any trade or business
other than a financial institution that is subject to the reporting
requirements of section 5313 and regulations prescribed under such
section.
(5) "person" in addition to its meaning under section 1 of
title 1, includes a trustee, a representative of an estate and, when
the Secretary prescribes, a governmental entity.
(6) "United States" means the States of the United States,
the District of Columbia, and, when the Secretary prescribes by
regulation, the Commonwealth of Puerto Rico, the Virgin Islands, Guam,
the Northern Mariana Islands, American Samoa, the Trust Territory of
the Pacific Islands, a territory or possession of the United States, or
a military or diplomatic establishment.
(b) In this subchapter--
(1) "domestic financial agency" and "domestic financial
institution" apply to an action in the United States of a financial
agency or institution.
(2) "foreign financial agency" and "foreign financial
institution" apply to an action outside the United States of a
financial agency or institution.
(c) ADDITIONAL DEFINITIONS.--For purposes of this
subchapter, the following definitions shall apply:
(1) CERTAIN INSTITUTIONS INCLUDED IN DEFINITION.--The
term "financial institution" (as defined in subsection (a))
includes the following:
(A) Any futures commission merchant, commodity trading advisor,
or commodity pool operator registered, or required to register, under
the Commodity Exchange Act.
[Codified to 31 U.S.C. 5312]
[Source: Section 203 of title II of the Act of October 26, 1970
(Pub. L. No. 91--508; 84 Stat. 1118), effective November 1, 1971;
recodified by the Act of September 13, 1982 (Pub. L. No. 97--258; 96
Stat. 995), effective September 13, 1982; section 1362 of subtitle H of
title I of the Act of October 27, 1986 (Pub. L. No. 99--570; 100 Stat.
3207--33), effective October 27, 1986; section 6185(a) and (g) of title
VI of the Act of November 18, 1988 (Pub. L. No. 100--690; 102 Stat.
4354 and 4357), effective November 18, 1988; sections 405 and 409 of
title IV of the Act of September 23, 1994 (Pub. L. No. 103--325; 108
Stat. 2247 and 2252), effective September 23, 1994; sections 321(a) and
(b), 359(a), and 365(b), (c)(1) and (2)(A) of title III of the Act of
October 26, 2001 (Pub. L. No. 107--56; 115 Stat. 315, 328 and 335,
respectively), effective October 26, 2001; section 6203(b) of title VI
of the Act of December 17, 2004 (Pub. L. No. 108--458; 118 Stat.
3746), effective December 17, 2004]
§ 5313. Reports on domestic coins and currency transactions
(a) When a domestic financial institution is involved in a
transaction for the payment, receipt, or transfer of United States
coins or currency (or other monetary instruments the Secretary of the
Treasury prescribes), in an amount, denomination, or amount and
denomination, or under circumstances the Secretary prescribes by
regulation, the institution and any other participant in the
transaction the Secretary may prescribe shall file a report on the
transaction at the time and in the way the Secretary prescribes. A
participant acting for another person shall make the report as the
agent or bailee of the person and identify the person for whom the
transaction is being made.
(b) The Secretary may designate a domestic financial institution as
an agent of the United States Government to receive a report under this
section. However, the Secretary may designate a domestic financial
institution that is not insured, chartered, examined, or registered as
a domestic financial institution only if the institution consents. The
Secretary may suspend or revoke a designation for a violation of this
subchapter or a regulation under this subchapter (except a violation of
section 5315 of this title or a regulation prescribed under section
5315), section 411 of the National Housing Act (12 U.S.C. 1730d), or
section 21 of the Federal Deposit Insurance Act
(12 U.S.C. 1829b).
(c)(1) A person (except a domestic financial institution designated
under subsection (b) of this section) required to file a report under
this section shall file the report--
(A) with the institution involved in the transaction if the
institution was designated;
(B) in the way the Secretary prescribes when the institution was
not designated; or
(C) with the Secretary.
(2) The Secretary shall prescribe--
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(A) the filing procedure for a domestic financial institution
designated under subsection (b) of this section; and
(B) the way the institution shall submit reports filed with it.
(d) MANDATORY EXEMPTIONS FROM REPORTING REQUIREMENTS.--
(1) IN GENERAL.--The Secretary of the Treasury shall
exempt, pursuant to section 5318(a)(6), a depository institution from
the reporting requirements of subsection (a) with respect to
transactions between the depository institution and the following
categories of entities:
(A) Another depository institution.
(B) A department or agency of the United States, any State, or
any political subdivision of any State.
(C) Any entity established under the laws of the United States,
any State, or any political subdivision of any State, or under an
interstate compact between 2 or more States, which exercises
governmental authority on behalf of the United States or any such State
or political subdivision.
(D) Any business or category of business the reports on which
have little or no value for law enforcement purposes.
(2) NOTICE OF EXEMPTION.--The Secretary of the Treasury
shall publish in the Federal Register at such times as the Secretary
determines to be appropriate (but not less frequently than once each
year) a list of all the entities whose transactions with a depository
institution are exempt under this subsection from the reporting
requirements of subsection (a).
(e) Discretionary Exemptions From Reporting
Requirements.--
(1) IN GENERAL.--The Secretary of the Treasury may
exempt, pursuant to section 5318(a)(6), a depository institution from
the reporting requirements of subsection (a) with respect to
transactions between the depository institution and a qualified
business customer of the institution on the basis of information
submitted to the Secretary by the institution in accordance with
procedures which the Secretary shall establish.
(2) QUALIFIED BUSINESS CUSTOMER DEFINED.--For purposes
of this subsection, the term "qualified business customer" means
a business which--
(A) maintains a transaction account (as defined in
section 19(b)(1)(C) of the
Federal Reserve Act) at the depository institution;
(B) frequently engages in transactions with the depository
institution which are subject to the reporting requirements of
subsection (a); and
(C) meets criteria which the Secretary determines are sufficient
to ensure that the purposes of this subchapter are carried out without
requiring a report with respect to such transactions.
(3) CRITERIA FOR EXEMPTION.--The Secretary of the
Treasury shall establish, by regulation, the criteria for granting and
maintaining an exemption under paragraph (1).
(4) GUIDELINES.--
(A) IN GENERAL.--The Secretary of the Treasury shall
establish guidelines for depository institutions to follow in selecting
customers for an exemption under this subsection.
(B) CONTENTS.--The guidelines may include a description
of the types of businesses or an itemization of specific businesses for
which no exemption will be granted under this subsection to any
depository institution.
(5) ANNUAL REVIEW.--The Secretary of the Treasury shall
prescribe regulations requiring each depository institution to--
(A) review, at least once each year, the qualified business
customers of such institution with respect to whom an exemption has
been granted under this subsection; and
(B) upon the completion of such review, resubmit information
about such customers, with such modifications as the institution
determines to be appropriate, to the Secretary for the Secretary's
approval.
(6) 2-YEAR PHASE-IN PROVISION.--During the 2-year period
beginning on the date of enactment of the Money Laundering Suppression
Act of 1994, this subsection shall be applied by the Secretary on the
basis of such criteria as the Secretary determines to be appropriate to
achieve an orderly implementation of the requirements of this
subsection.
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(f) Provisions Applicable to Mandatory and Discretionary
Exemptions.--
(1) Limitation on liability of depository
institutions.--No depository institution shall be subject to any
penalty which may be imposed under this subchapter for the failure of
the institution to file a report with respect to a transaction with a
customer for whom an exemption has been granted under subsection (d) or
(e) unless the institution--
(A) knowingly files false or incomplete information to the
Secretary with respect to the transaction or the customer engaging in
the transaction; or
(B) has reason to believe at the time the exemption is granted or
the transaction is entered into that the customer or the transaction
does not meet the criteria established for granting such exemption.
(2) COORDINATION WITH OTHER PROVISIONS.--Any exemption
granted by the Secretary of the Treasury under
section 5318(a) in accordance
with this section, and any transaction which is subject to such
exemption, shall be subject to any other provision of law applicable to
such exemption, including--
(A) the authority of the Secretary, under section 5318(a)(6), to
revoke such exemption at any time; and
(B) any requirement to report, or any authority to require a
report on, any possible violation of any law or regulation or any
suspected criminal activity.
(g) DEPOSITORY INSTITUTION DEFINED.--For purposes of this
section, the term "depository institution"--
(1) has the meaning given to such term in
section 19(b)(1)(A) of the
Federal Reserve Act; and
(2) includes--
(A) any branch, agency, or commercial lending company (as such
terms are defined in section 1(b) of the International Banking Act of
1978);
(B) any corporation chartered under
section 25A of the Federal Reserve
Act; and
(C) any corporation having an agreement or undertaking with the
Board of Governors of the Federal Reserve System under section 25 of
the Federal Reserve Act.
[Codified to 31 U.S.C. 5313]
[Source: Sections 221, 222 and 223 of title II of the Act of
October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1122), effective
November 1, 1971; recodified by the Act of September 13, 1982 (Pub. L.
No. 97--258; 96 Stat. 996), effective September 13, 1982; as amended by
section 402(a) of title IV of the Act of September 23, 1994 (Pub. L.
No. 103--325; 108 Stat. 2243), effective September 23,
1994]
§ 5314. Records and reports on foreign financial agency
transactions
(a) Considering the need to avoid impeding or controlling the
export or import of monetary instruments and the need to avoid
burdening unreasonably a person making a transaction with a foreign
financial agency, the Secretary of the Treasury shall require a
resident or citizen of the United States or a person in, and doing
business in, the United States, to keep records, file reports, or keep
records and file reports, when the resident, citizen, or person makes a
transaction or maintains a relation for any person with a foreign
financial agency. The records and reports shall contain the following
information in the way and to the extent the Secretary prescribes:
(1) the identity and address of participants in a transaction or
relationship.
(2) the legal capacity in which a participant is acting.
(3) the identity of real parties in interest.
(4) a description of the transaction.
(b) The Secretary may prescribe--
(1) a reasonable classification of persons subject to or exempt
from a requirement under this section or a regulation under this
section;
(2) a foreign country to which a requirement or a regulation
under this section applies if the Secretary decides applying the
requirement or regulation to all foreign countries is unnecessary or
undesirable;
(3) the magnitude of transactions subject to a requirement or a
regulation under this section;
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(4) the kind of transaction subject to or exempt from a
requirement or a regulation under this section; and
(5) other matters the Secretary considers necessary to carry out
this section or a regulation under this section.
(c) A person shall be required to disclose a record required to be
kept under this section or under a regulation under this section only
as required by law.
[Codified to 31 U.S.C. 5314]
[Source: Sections 241 and 242 of title II of the Act of October
26, 1970 (Pub. L. No. 91--508; 84 Stat. 1124), effective November 1,
1971; recodified by the Act of September 13, 1982 (Pub. L. No. 97--258;
96 Stat. 997), effective September 13,
1982]
§ 5315. Reports on foreign currency transactions
(a) Congress finds that--
(1) moving mobile capital can have a significant impact on the
proper functioning of the international monetary system;
(2) is it important to have the most feasible current and
complete information on the kind and source of capital flows, including
transactions by large United States businesses and their foreign
affiliates; and
(3) additional authority should be provided to collect
information on capital flows under section 5(b) of the Trading With the
Enemy Act (50 App. U.S.C. 5(b)) and section 8 of the Bretton Woods
Agreement Act (22 U.S.C. 286f).
(b) In this section, "United States person" and "foreign
person controlled by a United States person" have the same meanings
given those terms in section 7(f)(2)(A) and (C), respectively, of the
Securities and Exchange Act of 1934 (15
U.S.C. 78g(f)(2)(A), (C)).
(c) The Secretary of the Treasury shall prescribe regulations
consistent with subsection (a) of this section requiring reports on
foreign currency transactions conducted by a United States person or a
foreign person controlled by a United States person. The regulations
shall require that a report contain information and be submitted at the
time and in the way, with reasonable exceptions and classifications,
necessary to carry out this section.
[Codified to 31 U.S.C. 5315]
[Source: Sections 201 and 202 of title II of the Act of
September 21, 1973 (Pub. L. No. 93-110; 87 Stat. 353), effective
September 21, 1973; recodified by the Act of September 13, 1982 (Pub.
L. No. 97--258; 96 Stat. 997), effective September 13,
1982]
§ 5316. Reports on exporting and importing monetary
instruments
(a) Except as provided in subsection (c) of this section, a person
or an agent or bailee of the person shall file a report under
subsection (b) of this section when the person, agent, or bailee
knowingly--
(1) transports, is about to transport or has transported,
monetary instruments of more than $10,000 at one time--
(A) from a place in the United States to or through a place
outside the United States; or
(B) to a place in the United States from or through a place
outside the United States; or
(2) receives monetary instruments of more than $10,000 at one
time transported into the United States from or through a place outside
the United States.
(b) A report under this section shall be filed at the time and
place the Secretary of the Treasury prescribes. The report shall
contain the following information to the extent the Secretary
prescribes:
(1) the legal capacity in which the person filing the report is
acting.
(2) the origin, destination, and route of the monetary
instruments.
(3) when the monetary instruments are not legally and
beneficially owned by the person transporting the instruments, or if
the person transporting the instruments personally is not going to use
them, the identity of the person that gave the instruments to the
person transporting them, the identity of the person who is to receive
them, or both.
(4) the amount and kind of monetary instruments transported.
(5) additional information.
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(c) This section or a regulation under this section does not apply
to a common carrier of passengers when a passenger possesses a monetary
instrument, or to a common carrier of goods if the shipper does not
declare the instrument.
(d) CUMULATION OF CLOSELY RELATED EVENTS.--The Secretary
of the Treasury may prescribe regulations under this section defining
the term "at one time" for purposes of subsection (a). Such
regulations may permit the cumulation of closely related events in
order that such events may collectively be considered to occur at one
time for the purposes of subsection (a).
[Codified to 31 U.S.C. 5316]
[Source: Section 231 of title II of the Act of October
26, 1970 (Pub. L. No. 91--508; 84 Stat. 1122), effective November 1,
1971; recodified by the Act of September 13, 1982 (Pub. L. No. 97--258;
96 Stat. 998), effective September 13, 1982; amended by section 901(c)
of chapter IX of the Act of October 12, 1984 (Pub. L. No. 98--473; 98
Stat. 2135), effective October 12, 1984; section 1358 of subtitle H of
title I and section 3153 of subtitle B of title III of the Act of
October 27, 1986 (Pub. L. No. 99--570; 100 Stat 3207-26 and 3207--94,
respectively), effective October 27,
1986]
§ 5317. Search and forfeiture of monetary instruments
(a) The Secretary of the Treasury may apply to a court of competent
jurisdiction for a search warrant when the Secretary reasonably
believes a monetary instrument is being transported and a report on the
instrument under section 5316 of this title has not been filed or
contains a material omission or misstatement. The Secretary shall
include a statement of information in support of the warrant. On a
showing of probable cause, the court may issue a search warrant for a
designated person or a designated or described place or physical
object. This subsection does not affect the authority
(b) SEARCHES AT BORDER.--For purposes of ensuring
compliance with the requirements of section 5316, a customs officer may
stop and search, at the border and without a search warrant, any
vehicle, vessel, aircraft, or other conveyance, any envelope or other
container, and any person entering or departing from the United States.
(c) FORFEITURE.--
(1) CRIMINAL FORFEITURE.--
(A) IN GENERAL.--The court in imposing sentence for any
violation of section 5313, 5316, or 5324 of this title, or any
conspiracy to commit such violation, shall order the defendant to
forfeit all property, real or personal, involved in the offense and any
property traceable thereto.
(B) PROCEDURE.--Forfeitures under this paragraph shall
be governed by the procedures established in section 413 of the
Controlled Substances Act.
(2) CIVIL FORFEITURE.--Any property involved in a
violation of section 5313, 5316, or 5324 of this title, or any
conspiracy to commit any such violation, and any property traceable to
any such violation or conspiracy, may be seized and forfeited to the
United States in accordance with the procedures governing civil
forfeitures in money laundering cases pursuant to section 981(a)(1)(A)
of title 18, United States Code.
[Codified to 31 U.S.C. 5317]
[Source: Sections 232 and 235 of title II of the Act of
October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1123), effective
November 1, 1971; recodified by the Act of September 13, 1982 (Pub. L.
No. 97--258; 96 Stat 998), effective September 13, 1982; amended by
section 901(d) of chapter IX of the Act of October 12, 1984 (Pub. L.
No. 98--473; 98 Stat. 2135), effective October 12, 1984; section
1355(a) and (b) of subtitle H of title I of the Act of October 27, 1986
(Pub. L. No. 99--570; 100 Stat. 3207--22 and 3207--23 respectively),
with section 1355(a) effective October 27, 1986 and section 1355(b)
effective with respect to violations committed after the end of the
3-month period beginning on the date of the enactment (January 27,
1987); section 1525(c)(2) of title XV of the Act of October 28, 1992
(Pub. L. No. 102--550; 106 Stat. 4065), effective October 28, 1992;
sections 365(b)(2)(B) and 372(a) of title III of the Act of October 26,
2001 (Pub. L. No. 107--56; 115 Stat. 335 and 338, respectively),
effective October 26, 2001]
{{12-31-01 p.8388}}
§ 5318. Compliance and exemptions, and summons authority
(a) GENERAL POWERS OF SECRETARY.--The Secretary of the
Treasury may (except under section 5315 of this title and regulations
prescribed under section 5315)--
(1) except as provided in subsection (b)(2), delegate duties and
powers under this subchapter to an appropriate supervising agency and
the United States Postal Service;
(2) require a class of domestic financial institutions or
nonfinancial trade or business to maintain appropriate procedures to
ensure compliance with this subchapter and regulations prescribed under
this subchapter or to guard against money laundering;
(3) examine any books, papers, records or other data of domestic
financial institutions or nonfinancial trade or business relevant to
the recordkeeping or reporting requirements of this subchapter;
(4) summon a financial institution or nonfinancial trades or
businesses, an officer or employee of a financial institution or
nonfinancial trades or businesses (including a former officer or
employee), or any person having possession, custody, or care of the
reports and records required under this subchapter, to appear before
the Secretary of the Treasury or his delegate at a time and place named
in the summons and to produce such books, papers, records, or other
data, and to give testimony, under oath, as may be relevant or material
to an investigation described in subsection (b);
(5) exempt from the requirements of this subchapter any class of
transactions within any State if the Secretary determines that--
(A) under the laws of such State, that class of transactions is
subject to requirements substantially similar to those imposed under
this subchapter; and
(B) there is adequate provision for the enforcement of such
requirements; and
(6) prescribe an appropriate exemption from a requirement under
this subchapter and regulations prescribed under this subchapter.
The Secretary may revoke an exemption under this paragraph or paragraph
(5) by actually or constructively notifying the parties affected. A
revocation is effective during judicial review.
(b) LIMITATIONS ON SUMMONS POWER.--
(1) SCOPE OF POWER.--The Secretary of the Treasury may
take any action described in paragraph (3) or (4) of subsection (a)
only in connection with investigations for the purpose of civil
enforcement of violations of this subchapter,
section 21 of the Federal
Deposit Insurance Act, section 411 of the National Housing Act, or
chapter 2 of Public Law 91--508 (12 U.S.C. 1951 et seq.) or any
regulation under any such provision.
(2) AUTHORITY TO ISSUE.--A summons may be issued under
subsection (a)(4) only by, or with the approval of, the Secretary of
the Treasury or a supervisory level delegate of the Secretary of the
Treasury.
(c) ADMINISTRATIVE ASPECTS OF SUMMONS.--
(1) PRODUCTION AT DESIGNATED SITE.--A summons issued
pursuant to this section may require that books, papers, records, or
other data stored or maintained at any place be produced at any
designated location in any State or in any territory or other place
subject to the jurisdiction of the United States not more that 500
miles distant from any place where the financial institution or
nonfinancial trade or business operates or conducts business in the
United States.
(2) FEES AND TRAVEL EXPENSES.--Persons summoned under
this section shall be paid the same fees and mileage for travel in the
United States that are paid witnesses in the courts of the United
States.
(3) NO LIABILITY FOR EXPENSES.--The United States shall
not be liable for any expense, other than an expense described in
paragraph (2), incurred in connection with the production of books,
papers, records, or other data under this section.
(d) SERVICE OF SUMMONS.--Service of a summons issued
under this section may be by registered mail or in such other manner
calculated to give actual notice as the Secretary may prescribe by
regulation.
(e) Contumacy or Refusal.—
(1) REFERRAL TO ATTORNEY GENERAL.--In case of contumacy
by a person issued a summons under paragraph (3) or (4) of subsection
(a) or a refusal by such person to obey such summons, the Secretary of
the Treasury shall refer the matter to the Attorney
General.
{{12-31-01 p.8389}}
(2) JURISDICTION OF COURT.--The Attorney General may
invoke the aid of any court of the United States within the
jurisdiction of which--
(A) the investigation which gave rise to the summons is being or
has been carried on;
(B) the person summoned is an inhabitant; or
(C) the person summoned carries on business or may be found,
to compel compliance with the summons.
(3) COURT ORDER.--The court may issue an order requiring
the person summoned to appear before the Secretary or his delegate to
produce books, papers, records, or other data, to give testimony as may
be necessary to explain how such material was compiled and maintained,
and to pay the costs of the proceeding.
(4) FAILURE TO COMPLY WITH ORDER.--Any failure to obey
the order of the court may be punished by the court as a contempt
thereof.
(5) SERVICE OF PROCESS.--All process in any case under
this subsection may be served in any judicial district in which such
person may be found.
(f) WRITTEN AND SIGNED STATEMENT REQUIRED.--No person
shall qualify for an exemption under subsection (a)(5) unless the
relevant financial institution or nonfinancial trade or business
prepares and maintains a statement which--
(1) describes in detail the reasons why such person is qualified
for such exemption; and
(2) contains the signature of such person.
(g) REPORTING OF SUSPICIOUS TRANSACTIONS.--
(1) IN GENERAL.--The Secretary may require any financial
institution, and any director, officer, employee, or agent of any
financial institution, to report any suspicious transaction relevant to
a possible violation of law or regulation.
(2) NOTIFICATION PROHIBITED.--
(A) IN GENERAL.--If a financial institution or any
director, officer, employee, or agent of any financial institution,
voluntarily or pursuant to this section or any other authority, reports
a suspicious transaction to a government agency--
(i) the financial institution, director, officer, employee, or
agent may not notify any person involved in the transaction that the
transaction has been reported; and
(ii) no officer or employee of the Federal Government or of any
State, local, tribal, or territorial government within the United
States, who has any knowledge that such report was made may disclose to
any person involved in the transaction that the transaction has been
reported, other than as necessary to fulfill the official duties of
such officer or employee.
(B) DISCLOSURES IN CERTAIN EMPLOYMENT REFERENCES.--
(i) RULE OF CONSTRUCTION.--Notwithstanding the
application of subparagraph (A) in any other context, subparagraph (A)
shall not be construed as prohibiting any financial institution, or any
director, officer, employee, or agent of such institution, from
including information that was included in a report to which
subparagraph (A) applies--
(I) in a written employment reference that is provided in
accordance with section 18(w) of the Federal Deposit Insurance Act in
response to a request from another financial institution; or
(II) in a written termination notice or employment reference that
is provided in accordance with the rules of a self-regulatory
organization registered with the Securities and Exchange Commission or
the Commodity Futures Trading Commission, except that such written
reference or notice may not disclose that such information was also
included in any such report, or that such report was made.
(ii) INFORMATION NOT REQUIRED.--Clause (i) shall not be
construed, by itself, to create any affirmative duty to include any
information described in clause (i) in any employment reference or
termination notice referred to in clause (i).
(3) LIABILITY FOR DISCLOSURES.--
(A) IN GENERAL.--Any financial institution that makes a
voluntary disclosure of any possible violation of law or regulation to
a government agency or makes a disclosure pursuant to this subsection
or any other authority, and any director, officer, employee,
or
{{12-31-01 p.8390}}agent of such institution
who makes, or requires another to make any such disclosure, shall not
be liable to any person under any law or regulation of the United
States, any constitution, law, or regulation of any State or political
subdivision of any State, or under any contract or other legally
enforceable agreement (including any arbitration agreement), for such
disclosure or for any failure to provide notice of such disclosure to
the person who is the subject of such disclosure or any other person
identified in the disclosure.
(B) RULE OF CONSTRUCTION.--Subparagraph (A) shall not be
construed as creating--
(i) any inference that the term "person", as used in such
subparagraph, may be construed more broadly than its ordinary usage so
as to include any government or agency of government; or
(ii) any immunity against, or otherwise affecting, any civil or
criminal action brought by any government or agency of government to
enforce any constitution, law, or regulation of such government or
agency.
(4) Single designee for reporting suspicious
transactions.--
(A) IN GENERAL.--In requiring reports under paragraph
(1) of suspicious transactions, the Secretary of the Treasury shall
designate, to the extent practicable and appropriate, a single officer
or agency of the United States to whom such reports shall be made.
(B) DUTY OF DESIGNEE.--The officer or agency of the
United States designated by the Secretary of the Treasury pursuant to
subparagraph (A) shall refer any report of a suspicious transaction to
any appropriate law enforcement, or supervisory agency, or United
States intelligence agency for use in the conduct of intelligence or
counterintelligence activities, including analysis, to protect against
international terrorism.
(C) Coordination with other reporting
requirements..--Subparagraph (A) shall not be construed as
precluding any supervisory agency for any financial institution from
requiring the financial institution to submit any information or report
to the agency or another agency pursuant to any other applicable
provision of law.
(h) ANTI-MONEY LAUNDERING PROGRAMS.--
(1) IN GENERAL.--In order to guard against money
laundering through financial institutions, anti-money laundering
programs, including at a minimum
(A) the development of internal policies, procedures, and
controls,
(B) the designation of a compliance officer,
(C) an ongoing employee training program, and
(D) an independent audit function to test programs.
(2) REGULATIONS.--The Secretary of the Treasury, after
consultation with the appropriate Federal functional regulator (as
defined in section 509 of the Gramm-Leach-Bliley Act), may prescribe
minimum standards for programs established under paragraph (1), and may
exempt from the application of those standards any financial
institution that is not subject to the provisions of the rules
contained in part 103 of title 31, of the Code of Federal Regulations,
or any successor rule thereto, for so long as such financial
institution is not subject to the provisions of such rules.
(3) CONCENTRATION ACCOUNTS.--The Secretary may prescribe
regulations under this subsection that govern maintenance of
concentration accounts by financial institutions, in order to ensure
that such accounts are not used to prevent association of the identity
of an individual customer with the movement of funds of which the
customer is the direct or beneficial owner, which regulations shall, at
a minimum--
(A) prohibit financial institutions from allowing clients to
direct transactions that move their funds into, out of, or through the
concentration accounts of the financial institution;
(B) prohibit financial institutions and their employees from
informing customers of the existence of, or the means of identifying,
the concentration accounts of the institution; and
(C) require each financial institution to establish written
procedures governing the documentation of all transactions involving a
concentration account, which procedures shall ensure that, any time a
transaction involving a concentration account commingles
funds
{{2-29-08 p.8391}}belonging to 1 or more
customers, the identity of, and specific amount belonging to, each
customer is documented.
(i) Due Diligence for United States Private Banking and
Correspondent Bank Accounts Involving Foreign Persons.--
(1) IN GENERAL.--Each financial institution that
establishes, maintains, administers, or manages a private banking
account or a correspondent account in the United States for a
non-United States person, including a foreign individual visiting the
United States, or a representative of a non-United States person shall
establish appropriate, specific, and, where necessary, enhanced, due
diligence policies, procedures, and controls that are reasonably
designed to detect and report instances of money laundering through
those accounts.
(2) Additional Standards for Certain Correspondent
Accounts.--
(A) In General.--Subparagraph (B) shall apply if a
correspondent account is requested or maintained by, or on behalf of, a
foreign bank operating--
(i) under an offshore banking license; or
(ii) under a banking license issued by a foreign country that has
been designated--
(I) as noncooperative with international anti-money laundering
principles or procedures by an intergovernmental group or organization
of which the United States is a member, with which designation the
United States representative to the group or organization concurs; or
(II) by the Secretary of the Treasury as warranting special
measures due to money laundering concerns.
(B) POLICIES, PROCEDURES, AND CONTROLS.--The enhanced
due diligence policies, procedures, an controls required under
paragraph (1) shall, at a minimum, ensure that the financial
institution in the United States takes reasonable steps--
(i) to ascertain for any such foreign bank, the shares of which
are not publicly traded, the identity of each of the owners of the
foreign bank, and the nature and extent of the ownership interest of
each such owner;
(ii) to conduct enhanced scrutiny of such account to guard
against money laundering and report any suspicious transactions under
subsection (g); and
(iii) to ascertain whether such foreign bank provides
correspondent accounts to other foreign banks and, if so, the identity
of those foreign banks and related due diligence information, as
appropriate under paragraph (1).
(3) MINIMUM STANDARDS FOR PRIVATE BANKING ACCOUNTS.--If
a private banking account is requested or maintained by, or on behalf
of, a non-United States person, then the due diligence policies,
procedures, and controls required under paragraph (1) shall, at a
minimum, ensure that the financial institution takes reasonable steps--
(A) to ascertain the identity of the nominal and beneficial
owners of, and the source of funds deposited into, such account as
needed to guard against money laundering and report any suspicious
transactions under subsection (g); and
(B) to conduct enhanced scrutiny of any such account that is
requested or maintained by, or on behalf of, a senior foreign political
figure, or any immediate family member or close associate of a senior
foreign political figure, that is reasonably designed to detect and
report transactions that may involve the proceeds of foreign
corruption.
(4) DEFINITIONS.--For purposes of this subsection, the
following definitions shall apply:
(A) OFFSHORE BANKING LICENSE.--The term "offshore
banking license" means a license to conduct banking activities
which, as a condition of the license, prohibits the licensed entity
from conducting banking activities with the citizens of, or with the
local currency of, the country which issued the license.
(B) PRIVATE BANKING ACCOUNT.--The term "private
banking account" means an account (or any combination of accounts)
that--
(i) requires a minimum aggregate deposits of funds or other
assets of not less than $1,000,000;
(ii) is established on behalf of 1 or more individuals who have a
direct or beneficial ownership interest in the account;
and
{{2-29-08 p.8392}}(iii) is assigned to, or is administered or managed by, in whole
or in part, an officer, employee, or agent of a financial institution
acting as a liaison between the financial institution and the direct or
beneficial owner of the account.
(j) Prohibition on United States Correspondent Accounts With
Foreign Shell Banks.--
(1) IN GENERAL.--A financial institution described in
subparagraphs (A) through (G) of section 5312(a)(2) (in this subsection
referred to as a "covered financial institution") shall not
establish, maintain, administer, or manage a correspondent account in
the United States for, or on behalf of, a foreign bank that does not
have a physical presence in any country.
(2) Prevention of Indirect Service to Foreign Shell
Banks.--A covered financial institution shall take reasonable steps
to ensure that any correspondent account established, maintained,
administered, or managed by that covered financial institution in the
United States for a foreign bank is not being used by that foreign bank
to indirectly provide banking services to another foreign bank that
does not have a physical presence in any country. The Secretary of the
Treasury shall, by regulation, delineate the reasonable steps necessary
to comply with this paragraph.
(3) EXCEPTION.--Paragraphs (1) and (2) do not prohibit a
covered financial institution from providing a correspondent account to
a foreign bank, if the foreign bank--
(A) is an affiliate of a depository institution, credit union, or
foreign bank that maintains a physical presence in the United States or
a foreign country, as applicable; and
(B) is subject to supervision by a banking authority in the
country regulating the affiliated depository institution, credit union,
or foreign bank described in subparagraph (A), as applicable.
(4) DEFINITIONS.--For purposes of this subsection--
(A) the term "affiliate" means a foreign bank that is
controlled by or is under common control with a depository institution,
credit union, or foreign bank; and
(B) the term "physical presence" means a place of business
that--
(i) is maintained by a foreign bank;
(ii) is located at a fixed address (other than solely an
electronic address) in a country in which the foreign bank is
authorized to conduct banking activities, as which location the foreign
bank--
(I) employs 1 or more individuals on a full-time basis; and
(II) maintains operating records related to its banking
activities; and
(iii) is subject to inspection by the banking authority which
licensed the foreign bank to conduct banking activities.
(k) Bank Records Related to Anti-Money laundering
Programs.--
(1) DEFINITIONS.--For purposes of this subsection, the
following definitions shall apply:
(A) APPROPRIATE FEDERAL BANKING AGENCY.--The term
"appropriate Federal banking agency" has the same meaning as in
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(B) INCORPORATED TERM.--The term "correspondent
account" has the same meaning as in section 5318A(e)(1)(B).
(2) 120-HOUR RULE.--Not later than 120 hours after
receiving a request by an appropriate Federal banking agency for
information related to anti-money laundering compliance by a covered
financial institution or a customer of such institution, a covered
financial institution shall provide to the appropriate Federal banking
agency, or make available at a location specified by the representative
of the appropriate Federal banking agency, information and account
documentation for any account opened, maintained, administered or
managed in the United States by the covered financial institution.
(3) FOREIGN BANK RECORDS.--
(A) Summons or Subpoena of Records.--
(i) IN GENERAL.--The Secretary of the Treasury or the
Attorney General may issue a summons or subpoena to any foreign bank
that maintains a correspondent account in the United States and request
records related to such correspondent account, including
{{4-30-08 p.8393}}records maintained outside
of the United States relating to the deposit of funds into the foreign
bank.
(ii) SERVICE OF SUMMONS OR SUBPOENA.--A summons or
subpoena referred to in clause (i) may be served on the foreign bank in
the United States if the foreign bank has a representative in the
United States, or in a foreign country pursuant to any mutual legal
assistance treaty, multilateral agreement, or other request for
international law enforcement assistance.
(B) ACCEPTANCE OF SERVICE.--
(i) MAINTAINING RECORDS IN THE UNITED STATES.--Any
covered financial institution which maintains a correspondent account
in the United States for a foreign bank shall maintain records in the
United States identifying the owners of such foreign bank and the name
and address of a person who resides in the United States and is
authorized to accept service of legal process for records regarding the
correspondent account.
(ii) LAW ENFORCEMENT REQUEST.--Upon receipt of a written
request from a Federal law enforcement officer for information required
to be maintained under this paragraph, the covered financial
institution shall provide the information to the requesting officer not
later than 7 days after receipt of the request.
(C) TERMINATION OF CORRESPONDENT RELATIONSHIP.--
(i) TERMINATION UPON RECEIPT OF NOTICE.--A covered
financial institution shall terminate any correspondent relationship
with a foreign bank not later than 10 business days after receipt of
written notice from the Secretary of the Attorney General (in each
case, after consultation with the other) that the foreign bank has
failed--
(I) to comply with a summons or subpoena issued under
subparagraph (A); or
(II) to initiate proceedings in a United States court contesting
such summons or subpoena.
(ii) LIMITATION ON LIABILITY.--A covered financial
institution shall not be liable to any person in any court or
arbitration proceeding for terminating a correspondent relationship in
accordance with this subsection.
(iii) FAILURE TO TERMINATE RELATIONSHIP.--Failure to
terminate a correspondent relationship in accordance with this
subsection shall render the covered financial institution liable for a
civil penalty of up to $10,000 per day until the correspondent
relationship is to terminated.
(l) *
IDENTIFICATION AND VERIFICATION OF ACCOUNTHOLDERS.--
(1) IN GENERAL.--Subject to the requirements of this
subsection, the Secretary of the Treasury shall prescribe regulations
setting forth the minimum standards for financial institutions and
their customers regarding the identity of the customer that shall apply
in connection with the opening of an account at a financial
institution.
(2) MINIMUM REQUIREMENTS.--The regulations shall, at a
minimum, require financial institutions to implement, and customers
(after being given adequate notice) to comply with, reasonable
procedures for--
(A) verifying the identity of any person seeking to open an
account to the extent reasonable and practicable;
(B) maintaining records of the information used to verify a
person's identity, including name, address, and other identifying
information; and
(C) consulting lists of known or suspected terrorist or terrorist
organizations provided to the financial institution by any government
agency to determine whether a person seeking to open an account appears
on any such list.
(3) FACTORS TO BE CONSIDERED.--In prescribing
regulations under this subsection, the Secretary shall take into
consideration the various types of accounts maintained by various types
of financial institutions, the various methods of opening accounts, and
the various types of identifying information available.
(4) CERTAIN FINANCIAL INSTITUTIONS.--In the case of any
financial institution the business of which is engaging in financial
activities described in section 4(k) of the Bank Holding Company Act of
1956 (including financial activities subject to the jurisdiction
of
{{4-30-08 p.8394}}the Commodity Futures
Trading Commission), the regulations prescribed by the Secretary under
paragraph (1) shall be prescribed jointly with each Federal functional
regulator (as defined in section 509 of the Gramm-Leach-Bliley Act,
including the Commodity Futures Trading commission) appropriate for
such financial institution.
(5) EXEMPTIONS.--The Secretary (and, in the case of any
financial institution described in paragraph (4), any Federal agency
described in such paragraph) may, by regulation or order, exempt any
financial institution or type of account from the requirements of any
regulation prescribed under this subsection in accordance with such
standards and procedures as the Secretary may prescribe.
(6) EFFECTIVE DATE.--Final regulations prescribed under
this subsection shall take effect before the end of the 1-year period
beginning on the date of enactment of the International Money
Laundering Abatement and Financial Anti-Terrorism Act of 2001.
(m) *
APPLICABILITY OF RULES.--Any rules promulgated pursuant to
the authority contained in section 21 of the Federal Deposit Insurance
Act (12 U.S.C. 1829b) shall apply, in addition to any other financial
institution to which such rules apply, to any person that engages as a
business in the transmission of funds, including any person who engages
as a business in an informal money transfer system or any network of
people who engage as a business in facilitating the transfer of money
domestically or internationally outside of the conventional financial
institutions system.
(n) Reporting of certain cross-border transmittals
of funds.--
(1) IN GENERAL.--Subject to paragraphs (3) and (4),
the Secretary shall prescribe regulations requiring such financial
institutions as the Secretary determines to be appropriate to report to
the Financial Crimes Enforcement Network certain cross-border
electronic transmittals of funds, if the Secretary determines that
reporting of such transmittals is reasonably necessary to conduct the
efforts of the Secretary against money laundering and terrorist
financing.
(2) LIMITATION ON REPORTING REQUIREMENTS.--Information
required to be reported by the regulations prescribed under paragraph
(1) shall not exceed the information required to be retained by the
reporting financial institution pursuant to section 21 of the Federal
Deposit Insurance Act and the regulations promulgated thereunder,
unless--
(A) the Board of Governors of the Federal Reserve System and the
Secretary jointly determine that a particular item or items of
information are not currently required to be retained under such
section or such regulations; and
(B) the Secretary determines, after consultation with the Board
of Governors of the Federal Reserve System, that the reporting of such
information is reasonably necessary to conduct the efforts of the
Secretary to identify cross-border money laundering and terrorist
financing.
(3) FORM AND MANNER OF REPORTS.--In prescribing the
regulations required under paragraph (1), the Secretary shall, subject
to paragraph (2), determine the appropriate form, manner, content, and
frequency of filing of the required reports.
(4) FEASIBILITY REPORT.--
(A) IN GENERAL.--Before prescribing the regulations
required under paragraph (1), and as soon as is practicable after the
date of enactment of the Intelligence Reform and Terrorism Prevention
Act of 2004, the Secretary shall submit a report to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives that--
{{2-29-08 p.8395}}
(i) identifies the information in cross-border electronic
transmittals of funds that may be found in particular cases to be
reasonably necessary to conduct the efforts of the Secretary to
identify money laundering and terrorist financing, and outlines the
criteria to be used by the Secretary to select the situations in which
reporting under this subsection may be required;
(ii) outlines the appropriate form, manner, content, and
frequency of filing of the reports that may be required under such
regulations;
(iii) identifies the technology necessary for the Financial
Crimes Enforcement Network to receive, keep, exploit, protect the
security of, and disseminate information from reports of cross-border
electronic transmittals of funds to law enforcement and other entities
engaged in efforts against money laundering and terrorist financing;
and
(iv) discusses the information security protections required by
the exercise of the Secretary's authority under this subsection.
(B) CONSULTATION.--In reporting the feasibility report
under subparagraph (A), the Secretary may consult with the Bank Secrecy
Act Advisory Group established by the Secretary, and any other group
considered by the Secretary to be relevant.
(5) REGULATIONS.--
(A) IN GENERAL.--Subject to subparagraph (B), the
regulations required by paragraph (1) shall be prescribed in final form
by the Secretary, in consultation with the Board of Governors of the
Federal Reserve System, before the end of the 3-year period beginning
on the date of enactment of the National Intelligence Reform Act of
2004.
(B) TECHNOLOGICAL FEASIBILITY.--No regulations shall be
prescribed under this subsection before the Secretary certifies to the
Congress that the Financial Crimes Enforcement Network has the
technological systems in place to effectively and efficiently receive,
keep, exploit, protect the security of, and disseminate information
from reports of cross-border electronic transmittals of funds to law
enforcement and other entities engaged in efforts against money
laundering and terrorist financing.
[Codified to 31 U.S.C. 5318]
[Source: Sections 205 and 206 of title II of the Act of October
26, 1970 (Pub. L. No. 91--508; 84 Stat. 1120), effective November 1,
1971; recodified by the Act of September 13, 1982 (Pub. L. No. 97--258;
96 Stat. 999), effective September 12, 1982; 6469(c) amended by section
1356 of subtitle H of title I of the Act of October 27, 1986 (Pub. L.
No. 99--570; 100 Stat. 3207--23, 3207--24 and 3207--25), effective
October 27, 1986; sections 6185(e) and 6469(c) of title VI of the Act
of November 18, 1988 (Pub. L. No. 100--690; 102 Stat. 4357, 4377),
effective November 18, 1988; sections 1504(d)(2), 1517(b), and 1523 of
title XV of the Act of October 28, 1992 (Pub. L. No. 102--550; 106
Stat. 4055, 4058, and 4059), effective October 28, 1992; sections
403(a) and 410 of title IV of the Act of September 23, 1994 (Pub. L.
No. 103--325; 108 Stat. 2245 and 2252), effective September 23, 1994;
sections 312(a), 313(a), 319(b), 326(a), 351, 352(a), 358(b), 359(c)
and 365(b)(2)(B) of title III of the Act of October 26, 2001 (Pub. L.
No. 107--56; 115 Stat. 304, 306, 312, 317, 320, 322, 326, 328 and 335,
respectively), effective October 26, 2001, except subsection (j), which
is effective December 24, 2001; section 811(g) of title VIII of the Act
of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 2012; sections
6202(h), 6203(c) and (d), and 6302 of title VI of the Act of December
17, 2004 (Pub. L. No. 108--458; 118 Stat. 3746, 3748; section 407 of
title IV of the Act of March 9, 2006 (Pub. L. No. 109--177; 120 Stat.
245), effective March 9, 2006]
§ 5318A. Special measures for jurisdictions, financial
institutions, international transactions or types of accounts of
primary money laundering concern.
(a) INTERNATIONAL COUNTER-MONEY LAUNDERING REQUIREMENTS.--
(1) IN GENERAL.--The Secretary of the Treasury may
require domestic financial institutions and domestic financial agencies
to take 1 or more of the special measures described in subsection (b)
if the Secretary finds that reasonable grounds exist for concluding
that a jurisdiction outside of the United States, 1 or more financial
institutions operating outside of the United States, 1 or more classes
of transactions within or involving, a jurisdiction outside of the
United States, or 1 or more types of accounts is of primary money
laundering concern, in accordance with subsection (c).
{{2-29-08 p.8396}}
(2) FORM OF REQUIREMENT.--The special measures described
in--
(A) subsection (b) may be imposed in such sequence or combination
as the Secretary shall determine;
(B) paragraphs (1) through (4) of subsection (b) may be imposed
by regulation, order, or otherwise as permitted by law; and
(C) subsection (b)(5) may be imposed only by regulation.
(3) DURATION OF ORDERS; RULEMAKING.--Any order by which
a special measure described in paragraphs (1) through (4) of subsection
(b) is imposed (other than an order described in section 5326)--
(A) shall be issued together with a notice of proposed rulemaking
relating to the imposition of such special measure; and
(B) may not remain in effect for more than 120 days, except
pursuant to a rule promulgated on or before the end of the 120-day
period beginning on the date of issuance of such order.
(4) PROCESS FOR SELECTING SPECIAL MEASURES.--In
selecting which special measure or measures to take under this
subsection, the Secretary of the Treasury--
(A) shall consult with the Chairman of the Board of Governors of
the Federal Reserve System, any other appropriate Federal banking
agency (as defined in section 3 of the Federal Deposit Insurance Act),
the Secretary of State, the Securities and Exchange Commission, the
Commodity Futures Trading Commission, the National Credit Union
Administration Board, and in the sole discretion of the Secretary, such
other agencies and interested parties as the Secretary may find to be
appropriate; and
(B) shall consider--
(i) whether similar action has been or is being taken by other
nations or multilateral groups:
(ii) whether the imposition of any particular special measure
would create a significant competitive disadvantage, including any
undue cost or burden associated with compliance, for financial
institutions organized or licensed in the United States;
(iii) the extent to which the action or the timing of the action
would have a significant adverse systemic impact on the international
payment, clearance, and settlement system, or on legitimate business
activities involving the particular jurisdiction, institution, class of
transactions, or type of account; and
(iv) the effect of the action on United States national security
and foreign policy.
(5) NO LIMITATION ON OTHER AUTHORITY.--This section
shall not be construed as superseding or otherwise restricting any
other authority granted to the Secretary, or to any other agency, by
this subchapter or otherwise.
(b) SPECIAL MEASURES.--The special measures referred to in
subsection (a), with respect to a jurisdiction outside of the United
States, financial institution operating outside of the United States,
class of transaction within, or involving, a jurisdiction outside of
the United States, or 1 or more types of accounts are as follows:
(1) Recordkeeping and Reporting of Certain Financial
Transactions.--
(A) IN GENERAL.--The Secretary of the Treasury may
require any domestic financial institution or domestic financial agency
to maintain records, file reports, or both, concerning the aggregate
amount of transactions, or concerning each transaction, with respect to
a jurisdiction outside of the United States, 1 or more financial
institutions operating outside of the United States, 1 or more classes
of transactions within, or involving, a jurisdiction outside of the
United States, or 1 or more types of accounts if the Secretary finds
any such jurisdiction, institution, class of transactions, or type of
account to be of primary money laundering concern.
(B) FORM OF RECORDS AND REPORTS.--Such records and
reports shall be made and retained at such time, in such manner, and
for such period of time, as the Secretary shall determine, and shall
include such information as the Secretary may determine, including--
(i) the identity and address of the participants in a transaction
or relationship, including the identity of the originator of any funds
transfer;
(ii) the legal capacity in which a participant in any transaction
is acting;
{{2-29-08 p.8397}}
(iii) the identity of the beneficial owner of the funds involved
in any transaction, in accordance with such procedures as the Secretary
determines to be reasonable and practicable to obtain and retain the
information; and
(iv) a description of any transaction.
(2) INFORMATION RELATING TO BENEFICIAL OWNERSHIP.--In
addition to any other requirement under any other provision of law, the
Secretary may require any domestic financial institution or domestic
financial agency to take such steps as the Secretary may determine to
be reasonable and practicable to obtain and retain information
concerning the beneficial ownership of any account opened or maintained
in the United States by a foreign person (other than a foreign entity
whose shares are subject to public reporting requirements or are listed
and traded on a regulated exchange or trading market), or a
representative of such a foreign person, that involves a jurisdiction
outside of the United States, 1 or more financial institutions
operating outside of the United States, 1 or more classes of
transactions within, or involving, a jurisdiction outside of the United
States, or 1 or more types of accounts if the Secretary finds any such
jurisdiction, institution, or transaction or type of account to be of
primary money laundering concern.
(3) Information Relating to Certain Payable-Through
Accounts.--If the Secretary finds a jurisdiction outside of the
United States, 1 or more financial institutions operating outside of
the United States, or 1 or more classes of transactions within, or
involving, a jurisdiction outside of the United States to be of primary
money laundering concern, the Secretary may require any domestic
financial institution or domestic financial agency that opens or
maintains a payable-through account in the United States for a foreign
financial institution involving any such jurisdiction or any such
financial institution operating outside of the United States, or a
payable through account through which any such transaction may be
conducted, as a condition of opening or maintaining such account--
(A) to identify each customer (and representative of such
customer) of such financial institution who is permitted to use, or
whose transactions are routed through, such payable-through account;
and
(B) to obtain, with respect to each such customer (and each such
representative), information that is substantially comparable to that
which the depository institution obtains in the ordinary course of
business with respect to its customers residing in the United States.
(4) Information Relating to Certain Correspondent
Accounts.--If the Secretary finds a jurisdiction outside of the
United States, 1 or more financial institutions operating outside of
the United States, or 1 or more classes of transactions within, or
involving, a jurisdiction outside of the United States to be of primary
money laundering concern, the Secretary may require any domestic
financial institution or domestic financial agency that opens or
maintains a correspondent account in the United States for a foreign
financial institution involving any such jurisdiction or any such
financial institution operating outside of the United States, or a
correspondent account through which any such transaction may be
conducted, as a condition of opening or maintaining such account--
(A) to identify each customer (and representative of such
customer) of any such financial institution who is permitted to use, or
whose transactions are routed through, such correspondent account; and
(B) to obtain, with respect to each such customer (and each such
representative), information that is substantially comparable to that
which the depository institution obtains in the ordinary course of
business with respect to its customers residing in the United States.
(5) Prohibitions or Conditions on Opening or Maintaining
Certain Correspondent or Payable-Through Accounts.--If the
Secretary finds a jurisdiction outside of the United States, 1 or more
financial institutions operating outside of the United States, or 1 or
more classes of transactions within, or involving, a jurisdiction
outside of the United States to be of primary money laundering concern,
the Secretary, in consultation with the Secretary of State, the
Attorney General, and the chairman of the board of governors of the
Federal Reserve System, may prohibit, or impose conditions upon, the
opening or
{{2-29-08 p.8398}}maintaining in the United
States of a correspondent account or payable-through account by any
domestic financial institution or domestic financial agency for or on
behalf of a foreign banking institution, if such correspondent account
or payable-through account involves any such jurisdiction or
institution, or if any such transaction may be conducted through such
correspondent account or payable-through account.
(c) Consultations and Information to be Considered In Finding
Jurisdictions, Institutions, Types of Accounts, or Transactions To Be
of Primary Money Laundering Concern.--
(1) IN GENERAL.--In making a finding that reasonable
grounds exist for concluding that a jurisdiction outside of the United
States, 1 or more financial institutions operating outside of the
United States, 1 or more classes of transactions within, or involving,
a jurisdiction outside of the United States, or 1 or more types of
accounts is of primary money laundering concern so as to authorize the
Secretary of the Treasury to take 1 or more of the special measures
described in subsection (b), the Secretary shall consult with the
Secretary of State and the Attorney General.
(2) ADDITIONAL CONSIDERATIONS.--In making a finding
described in paragraph (1), the Secretary shall consider in addition
such information as the Secretary determines to be relevant, including
the following potentially relevant factors:
(A) JURISDICTIONAL FACTORS.--In the case of a particular
jurisdiction--
(i) evidence that organized criminal groups, international
terrorists, or entities involved in the proliferation of weapons of
mass destruction or missiles, have transacted business in that
jurisdiction;
(ii) the extent to which that jurisdiction or financial
institutions operating in that jurisdiction offer bank secrecy or
special regulatory advantages to nonresidents or nondomiciliaries of
that jurisdiction;
(iii) the substance and quality of administration of the bank
supervisory and counter-money laundering laws of that jurisdiction;
(iv) the relationship between the volume of financial
transactions occurring in that jurisdiction and the size of the economy
of the jurisdiction;
(v) the extent to which that jurisdiction is characterized as an
offshore banking or secrecy haven by credible international
organizations or multilateral expert groups;
(vi) whether the United States has a mutual legal assistance
treaty with that jurisdiction, and the experience of United States law
enforcement officials and regulatory officials in obtaining information
about transactions originating in or routed through or to such
jurisdiction; and
(vii) the extent to which that jurisdiction is characterized by
high levels of official or institutional corruption.
(B) INSTITUTIONAL FACTORS.--In the case of a decision to
apply 1 or more of the special measures described in subsection (b)
only to a financial institution or institutions, or to a transaction or
class of transactions, or to a type of account, or to all 3, within or
involving a particular jurisdiction--
(i) the extent to which such financial institutions,
transactions, or types of accounts are used to facilitate or promote
money laundering in or through the jurisdiction, including any money
laundering activity by organized criminal groups, international
terrorist, or entities involved in the proliferation of weapons of mass
destruction or missiles;
(ii) the extent to which such institutions, transactions, or
types of accounts are used for legitimate business purposes in the
jurisdiction; and
(iii) the extent to which such action is sufficient to ensure,
with respect to transactions involving the jurisdiction and
institutions operating in the jurisdiction, that the purposes of this
subchapter continue to be fulfilled, and to guard against international
money laundering and other financial crimes.
(d) Notification of Special Measures Invoked by the
Secretary.--Not later than 10 days after the date of any action
taken by the Secretary of the Treasury under subsection (a)(1), the
Secretary shall notify, in writing, the Committee on Financial Services
of the House of Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate of any such action.
{{2-29-08 p.8398.01}}
(e) DEFINITIONS.--Notwithstanding any other provision of
this subchapter, for purposes of this section and subsections (i) and
(j) of section 5318, the following definitions shall apply:
(1) BANK DEFINITIONS.--The following definitions shall
apply with respect to a bank:
(A) Account.--The term "account"--
(i) means a formal banking or business relationship established
to provide regular services, dealings, and other financial
transactions; and
(ii) includes a demand deposit, savings deposit, or other
transaction or asset account and a credit account or other extension of
credit.
(B) CORRESPONDENT ACCOUNT.--The term "correspondent
account" means an account established to receive deposits from, make
payments on behalf of a foreign financial institution, or handle other
financial transactions related to such institution.
(C) PAYABLE-THROUGH ACCOUNT.--The term
"payable-through account" means an account, including a
transaction account (as defined in section 19(b)(1)(C) of the Federal
Reserve Act), opened at a depository institution by a foreign financial
institution by means of which the foreign financial institution permits
its customers to engage, either directly or through a subaccount, in
banking activities usual in connection with the business of banking in
the United States.
(2) Definitions Applicable to Institutions Other Than
Banks.--With respect to any financial institution other than a
bank, the Secretary shall, after consultation with the appropriate
Federal functional regulators (as defined in section 509 of the
Gramm-Leach-Bliley Act), define by regulation the term "account",
and shall include within the meaning of that term, to the extent, if
any, that the Secretary deems appropriate, arrangements similar to
payable-through and correspondent accounts.
(3) REGULATORY DEFINITION OF BENEFICIAL OWNERSHIP.--The
Secretary shall promulgate regulations defining beneficial ownership of
an account for purposes of this section and subsections (i) and (j) of
section 5318. Such regulations shall address issues related to an
individual's authority to fund, direct, or manage the account
(including, without limitation, the power to direct payments into or
out of the account), and an individual's material interest in the
income or corpus of the account, and shall ensure that the
identification of individuals under this section or subsection (i) or
(j) of section 5318 does not extend to any individual whose beneficial
interest in the income or corpus of the account is immaterial.
(4) OTHER TERMS.--The Secretary may, by regulation,
further define the terms in paragraphs (1), (2), and (3), and define
other terms for the purposes of this section, as the Secretary deems
appropriate.
[Codified to 31 U.S.C. 5318A]
[Source: Section 311(a) of title III of the Act of October 26, 2001
(Pub. L. No. 107--56; 115 Stat. 298), effective October 26, 2001;
amended by section 6203(e) of title VI of the Act of December 17, 2004
(Pub. L. No. 108--458; 118 Stat. 3747), effective December 17, 2004;
section 501 of title V of the Act of September 30, 2006 (Pub. L. No.
109--293; 120 Stat. 1350), effective September 30,
2006]
§ 5319. Availability of reports
The Secretary of the Treasury shall make information in a report
filed under this subchapter available to an agency, including any State
financial institutions supervisory agency, United States intelligence
agency or self-regulatory organization registered with the Securities
and Exchange Commission or the Commodity Futures Trading Commission,
upon request of the head of the agency or organization. The report
shall be available for a purpose that is consistent with this
subchapter. The Secretary may only require reports on the use of such
information by any State financial institutions supervisory agency for
other than supervisory purposes or by United States intelligence
agencies. However, a report and records of reports are exempt from
disclosure under section 552 of title 5.
[Codified to 31 U.S.C. 5319]
{{2-29-08 p.8398.02}}
[Source: Sections 203 and 212 of title II of the Act of October
26, 1970 (Pub. L. No. 91--508; 84 Stat. 1118 and 1121, respectively),
effective November 1, 1971; recodified by theAct of September 13, 1982
(Pub. L. No. 96--258; 96 Stat. 999), effective September 13, 1982;
amended by section 1506 of title XV of the Act of October 28, 1992
(Pub. L. No. 102--550; 106 Stat. 4055), effective October 28, 1992;
section 358(c) of title III of the Act of October 26, 2001 (Pub. L. No.
107--56; 115 Stat. 326), effective October 26, 2001; section 6203(e) of
title VI of the Act of December 17, 2004 (Pub. L. No. 108--458; 118
Stat. 3747), effective December 17,
2004]
§ 5320. Injunctions
When the Secretary of the Treasury believes a person has violated,
is violating, or will violate this subchapter or a regulation
prescribed or order issued under this subchapter, the Secretary may
bring a civil action in the appropriate district court of the United
States or appropriate United States court of a territory or possession
of the United States to enjoin the violation or to enforce compliance
with the subchapter, regulation, or order. An injunction or temporary
restraining order shall be issued without bond.
{{2-28-05 p.8399}}
[Codified to 31 U.S.C. 5320]
[Source: Section 208 of title II of the Act of October
26, 1970 (Pub. L. No. 91--508; 84 Stat. 1120), effective November 1,
1971; section 203(b) of title II of the Act of September 21, 1973 (Pub.
L. No. 93--110; 87 Stat. 353), effective September 21, 1973; recodified
by the Act of September 13, 1982 (Pub. L. No. 96--258; 96 Stat. 999),
effective September 13, 1982]
§ 5321. Civil penalties
(a)(1) A domestic financial institution or nonfinancial trade or
business, and a partner, director, officer, or employee of a domestic
financial institution or nonfinancial trade or business, willfully
violating this subchapter or a regulation prescribed or order issued
under this subchapter (except
sections 5314 and
5315 of this title or a
regulation prescribed under sections 5314 and 5315), or willfully
violating a regulation prescribed under section 21 of the Federal
Deposit Insurance Act or section 123 of Public Law 91--508 is liable to
the United States Government for a civil penalty of not more than the
greater of the amount (not to exceed $100,000) involved in the
transaction (if any) or $25,000. For a violation of section 5318(a)(2)
of this title or a regulation prescribed under section 5318(a)(2), a
separate violation occurs for each day the violation continues and at
each office, branch, or place of business at which a violation occurs
or continues.
(2) The Secretary of the Treasury may impose an additional civil
penalty on a person not filing a report, or filing a report containing
a material omission or misstatement, under section 5316 of this title
or a regulation prescribed under section 5316. A civil penalty under
this paragraph may not be more than the amount of the monetary
instrument for which the report was required. A civil penalty under
this paragraph is reduced by an amount forfeited under section 5317(b)
of this title.
(3) A person not filing a report under a regulation prescribed
under section 5315 of this title or not complying with an injunction
under section 5320 of this title enjoining a violation of, or enforcing
compliance with, section 5315 or a regulation prescribed under section
5315, is liable to the Government for a civil penalty of not more than
$10,000.
(4) STRUCTURED TRANSACTION VIOLATION.--
(A) PENALTY AUTHORIZED.--The Secretary of the Treasury
may impose a civil money penalty on any person who violates any
provision of section 5324.
(B) MAXIMUM AMOUNT LIMITATION.--The amount of any civil
money penalty imposed under subparagraph (A) shall not exceed the
amount of the coins and currency (or such other monetary instruments as
the Secretary may prescribe) involved in the transaction with respect
to which such penalty is imposed.
(C) COORDINATION WITH FORFEITURE PROVISION.--The amount
of any civil money penalty imposed by the Secretary under subparagraph
(A) shall be reduced by the amount of any forfeiture to the United
States in connection with the transaction with respect to which such
penalty is imposed.
(5) FOREIGN FINANCIAL AGENCY TRANSACTION VIOLATION.--
(A) PENALTY AUTHORIZED.--The Secretary of the Treasury
may impose a civil money penalty on any person who violates, or causes
any violation of, any provision of section 5314.
(B) AMOUNT OF PENALTY.--
(i) IN GENERAL.--Except as provided in subparagraph (C),
the amount of any civil penalty imposed under subparagraph (A) shall
not exceed $10,000.
(ii) REASONABLE CAUSE EXCEPTION.--No penalty shall be
imposed under subparagraph (A) with respect to any violation if--
(I) such violation was due to reasonable cause, and
(II) the amount of the transaction or the balance in the account
at the time of the transaction was properly reported.
(C) WILLFUL VIOLATIONS.--In the case of any person
willfully violating, or willfully causing any violation of, any
provision of section 5314--
(i) the maximum penalty under subparagraph (B)(i) shall be
increased to the greater of--
{{2-28-05 p.8400}}
(I) $100,000, or
(II) 50 percent of the amount determined under subparagraph (D),
and
(ii) subparagraph (B)(ii) shall not apply.
(D) AMOUNT.--The amount determined under this
subparagraph is--
(i) in the case of a violation involving a transaction, the
amount of the transaction, or
(ii) in the case of a violation involving a failure to report the
existence of an account or any identifying information required to be
provided with respect to an account, the balance in the account at the
time of the violation.
(6) NEGLIGENCE.--
(A) IN GENERAL.--The Secretary of the Treasury may
impose a civil money penalty of not more than $500 on any financial
institution or nonfinancital trade or business which negligently
violates any provision of this subchapter or any regulation prescribed
under this subchapter.
(B) PATTERN OF NEGLIGENT ACTIVITY.--If any financial
institution or nonfinancial trade or business engages in a pattern of
negligent violations of any provision of this subchapter or any
regulation prescribed under this subchapter, the Secretary of the
Treasury may, in addition to any penalty imposed under subparagraph (A)
with respect to any such violation, impose a civil money penalty of not
more than $50,000 on the financial institution or nonfinancial trade or
business.
(7) Penalties for International Counter Money Laundering
Violations.--The Secretary may impose a civil money penalty in an
amount equal to not less than 2 times the amount of the transaction,
but not more than $1,000,000, on any financial institution or agency
that violates any provision of subsection (i) or (j) of section 5318 or
any special measures.
(b) Time Limitations for Assessments and Commencement of Civil
Actions.--
(1) ASSESSMENTS.--The Secretary of the Treasury may
assess a civil penalty under subsection (a) at any time before the end
of the 6-year period beginning on the date of the transaction with
respect to which the penalty is assessed.
(2) CIVIL ACTIONS.--The Secretary may commence a civil
action to recover a civil penalty assessed under subsection (a) at any
time before the end of the 2-year period beginning on the later of--
(A) the date the penalty was assessed; or
(B) the date any judgment becomes final in any criminal action
under section 5322 in connection with the same transaction with respect
to which the penalty is assessed.
(c) The Secretary may remit any part of a forfeiture under
subsection (c) or (d) of section 5317 of this title or civil penalty
under subsection (a)(2) of this section.
(d) CRIMINAL PENALTY NOT EXCLUSIVE OF CIVIL PENALTY.--A
civil money penalty may be imposed under subsection (a) with respect to
any violation of this subchapter notwithstanding the fact that a
criminal penalty is imposed with respect to the same violation.
(e) Delegation of Assessment Authority to Banking
Agencies.--
(1) IN GENERAL.--The Secretary of the Treasury shall
delegate, in accordance with section 5318(a)(1) and subject to such
terms and conditions as the Secretary may impose in accordance with
paragraph (3), any authority of the Secretary to assess a civil money
penalty under this section on depository institutions (as defined in
section 3 of the Federal Deposit Insurance Act) to the appropriate
Federal banking agencies (as defined in such section 3).
(2) AUTHORITY OF AGENCIES.--Subject to any term or
condition imposed by the Secretary of the Treasury under paragraph (3),
the provisions of this section shall apply to an appropriate Federal
banking agency to which is delegated any authority of the Secretary
under this section in the same manner such provisions apply to the
Secretary.
(3) TERMS AND CONDITIONS.--
(A) IN GENERAL.--The Secretary of the Treasury shall
prescribe by regulation the terms and conditions which shall apply to
any delegation under paragraph (1).
{{2-29-08 p.8401}}
(B) MAXIMUM DOLLAR AMOUNT.--The terms and conditions
authorized under subparagraph (A) may include, in the Secretary's sole
discretion, a limitation on the amount of any civil penalty which may
be assessed by an appropriate Federal banking agency pursuant to a
delegation under paragraph (1).
[Codified to 31 U.S.C. 5321]
[Source: Sections 205, 207, 233 and 234 of title II of the Act of
October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1120 and 1123),
effective November 1, 1971; as amended by section 203(a) of title II of
the Act of September 21, 1973 (Pub. L. No. 93--110; 87 Stat. 353),
effective September 21, 1973; recodified by the Act of September 13,
1982 (Pub. L. No. 97--258; 96 Stat. 999), effective September 13, 1982;
amended by section 901 of chapter IX of the Act of October 12, 1984
(Pub. L. No. 98--473; 98 Stat. 2135), effective October 12, 1984;
sections 1356(c)(1) and 1357(a)-(f) and (h) of subtitle H of title I of
the Act of October 27, 1986 (Pub. L. No. 99--570; 100 Stat.
3207--24--3207--26), effective with respect to violations committed
after the date of the enactment of this Act (October 27, 1986), except
subsection (a)(4) which is effective January 27, 1987; section
6185(g)(2) of title VI of the Act of November 18, 1988 (Pub. L. No.
100--690; 102 Stat. 4357), effective November 18, 1988; sections
1511(b), 1525(b), 1535(a)(2), and 1561 of title XV of the Act of
October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4057, 4065, 4066, and
4071, respectively), effective October 28, 1992; sections 406, 411(b),
and 413(a)(1) of title IV of the Act of September 23, 1994 (Pub. L. No.
103--325; 108 Stat. 2247, 2253, and 2254, respectively), effective
September 23, 1994; section 2223(3) of title II of the Act of September
30, 1996 (Pub. L. No. 104-208; 110 Stat. 3009-415), effective September
30, 1996; sections 353(a), 363(a), and 365(c)(2)(B) of title III of the
Act of October 26, 2001 (Pub. L. No. 106--57; 115 Stat. 322, 332, and
335 respectively), October 26, 2001; section 821(a) of title VIII of
the Act of October 22, 2004 (Pub. L. No. 108-357; 118 1586), effective
after the date of the enactment of this
Act.]
§ 5322. Criminal penalties
(a) A person willfully violating this subchapter or a regulation
prescribed or order issued under this subchapter (except section 5315
or 5324 of this title or a regulation prescribed under section 5315 or
5324), or willfully violating a regulation prescribed under section 21
of the Federal Deposit Insurance Act or section 123 of Public Law
91--508, shall be fined not more than $250,000, or imprisoned for not
more than five years, or both.
(b) A person willfully violating this subchapter or a regulation
prescribed or order issued under this subchapter (except section 5315
or 5324 of this title or a regulation prescribed under section 5315 or
5324), or willfully violating a regulation prescribed under section 21
of the Federal Deposit Insurance Act or section 123 of Public Law
91--508, while violating another law of the United States or as part of
a pattern of any illegal activity involving more than $100,000 in a
12-month period, shall be fined not more than $500,000, imprisoned for
not more than 10 years, or both.
(c) For a violation of section
5318(2) of this title or a regulation prescribed under section
5318(a)(2), a separate violation occurs for each day the violation
continues and at each office, branch, or place of business at which a
violation occurs or continues.
(d) A financial institution or agency that violates any provision
of subsection (i) or (j) of section 5318, or any special measures
imposed under section 5318A, or any regulation prescribed under
subsection (i) or (j) of section 5318 or section 5318A, shall be fined
in an amount equal to not less than 2 times the amount of the
transaction, but not more than $1,000,000.
[Codified to 31 U.S.C. 5322]
[Source: Sections 205, 209 and 210 of title II of the Act of
October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1120 and 1121),
effective November 1, 1971; recodified by the Act of September 13, 1982
(Pub. L. No. 97--258; 96 Stat. 1000), effective September 13, 1982;
amended by section 901 of chapter IX of the Act of October 12, 1984
(Pub. L. No. 98--473; 98 Stat. 2135), effective October 12, 1984;
sections 1356(c)(1) and 1357(g) of subtitle H of title I of the Act of
October 27, 1986 (Pub. L. No. 99--570; 100 Stat. 3207--24 and 3207--26,
respectively), effective with respect to violations committed after the
date of the enactment of this Act (October 27, 1986); section
1504(d)(2) of title XV of the Act of
{{2-29-08 p.8402}}October 28, 1992 (Pub. L.
No. 102--550; 106 Stat. 4055), effective October 28, 1992; section
411(c)(1) of title IV of the Act of September 23, 1994 (Pub. L. No.
103--325; 108 Stat. 2253), effective September 23, 1994; sections
353(b) and 363(b) of title III of the Act of October 26, 2001 (Pub. L.
No. 106--57; 115 Stat. 323 and 332), effective October 26,
2001]
§ 5323. Rewards for informants
(a) The Secretary may pay a reward to an individual who provides
original information which leads to a recovery of a criminal fine,
civil penalty, or forfeiture, which exceeds $50,000, for a violation of
this chapter.
(b) The Secretary shall determine the amount of a reward under this
section. The Secretary may not award more than 25 per centum of the net
amount of the fine, penalty, or forfeiture collected or $150,000,
whichever is less.
(c) An officer or employee of the United States, a State, or a
local government who provides information described in subsection (a)
in the performance of official duties is not eligible for a reward
under this section.
(d) There are authorized to be appropriated such sums as may be
necessary to carry out the provisions of this section.
[Codified to 31 U.S.C. 5323]
[Source: Section 5323 added by section 901(e) of chapter IX of the
Act of October 12, 1984 (Pub. L. No. 98--473; 98 Stat. 2135-- 2136),
effective October 12, 1984]
§ 5324. Structuring transaction to evade reporting requirement
prohibited
(a) Domestic and Currency Transactions Involving Financial
Institutions.--No person shall, for the purpose of evading the
reporting requirements of section
5313(a) or 5325 or any regulation prescribed under any such
section, the reporting or recordkeeping requirements imposed by any
order issued under section 5326, or the recordkeeping requirements
imposed by any regulation prescribed under section 21 of the Federal
Deposit Insurance Act or section 123 of Public Law 91--508--
(1) cause or attempt to cause a domestic financial institution to
fail to file a report required under section 5313(a) or 5325 or any
regulation prescribed under any such section; to file a report or to
maintain a record required by an order issued under section 5326, or to
maintain a record required pursuant to any regulation prescribed under
section 21 of the Federal Deposit Insurance Act or section 123 of
Public law 91--508;
(2) cause or attempt to cause a domestic financial institution to
file a report required under section 5313(a) or 5325 or any regulation
prescribed under any such section, to file a report or to maintain a
record required by any order issued under section 5326, or to maintain
a record required pursuant to any regulation prescribed under section
5326, or to maintain a record required pursuant to any regulation
prescribed under section 21 of the Federal Deposit Insurance Act or
section 123 of Public Law 91--508, that contains a material omission or
misstatement of fact; or
(3) structure or assist in structuring, or attempt to structure
or assist in structuring, any transaction with one or more domestic
financial institutions.
(b) Domestic Coin and Currency Transactions Involving
Nonfinancial Trades or Businesses.--No person shall, for the
purpose of evading the report requirements of section 5331 or any
regulation prescribed under such section--
(1) cause or attempt to cause a nonfinancial trade or business to
fail to file a report required under section 5331 or any regulation
prescribed under such section;
(2) cause or attempt to cause a nonfinancial trade or business to
file a report required under section 5331 or any regulation prescribed
under such section that contains a material omission or misstatement of
fact; or
(3) structure or assist in structuring, or attempt to structure
or assist in structuring, any transaction with 1 or more nonfinancial
trades or businesses.
(c) INTERNATIONAL MONETARY INSTRUMENT TRANSACTIONS.--No
person shall, for the purpose of evading the reporting requirements of
section 5316--
(1) fail to file a report required by section 5316, or cause or
attempt to cause a person to fail to file such a report;
{{2-29-08 p.8403}}
(2) file or cause or attempt to cause a person to file a report
required under section 5316 that contains a material omission or
misstatement of fact; or
(3) structure or assist in structuring, or attempt to structure
or assist in structuring, any importation or exportation of monetary
instruments.
(d) CRIMINAL PENALTY.--
(1) IN GENERAL.--Whoever violates this section shall be
fined in accordance with title 18, United States Code, imprisoned for
not more than 5 years, or both.
(2) ENHANCED PENALTY FOR AGGRAVATED CASES.--Whoever
violates this section while violating another law of the United States
or as part of a pattern of any illegal activity involving more than
$100,000 in a 12-month period shall be fined twice the amount provided
in subsection (b)(3) or (c)(3) (as the case may be) of section 3571 of
title 18, United States Code, imprisoned for not more than 10 years, or
both.
[Codified to 31 U.S.C. 5324]
[Source: Section 5324 added by section 1354 of subtitle H of title
I of the Act of October 27, 1986 (Pub. L. No. 99--570; 100 Stat.
3207--22), effective with respect to transactions for the payment,
receipt, or transfer of United States coins or currency or other
monetary instruments completed after January 27, 1987; amended by
section 1525(a) of title XV of the Act of October 28, 1992 (Pub. L. No.
102--550; 106 Stat. 4064), effective October 28, 1992; sections 411(a)
and 413(a)(2) of title IV of the Act of September 23, 1994 (Pub. L. No.
103--325; 108 Stat. 2253 and 2254), effective September 23, 1994;
sections 353(c) and 365(b)(1) and (b)(2)(A) of title III of the Act of
October 26, 2001 (Pub. L. No. 106--57; 115 Stat. 323, 334 and 335,
respectively), effective October 26, 2001; section 6203(g) of title VI
of the Act of December 17, 2004 (Pub. L. No. 108--458; 118 Stat.
3747), effective December 17, 2004]
§ 5325. Identification required to purchase certain monetary
instruments
(a) IN GENERAL.--No financial institution may issue or
sell a bank check, cashier's check, traveler's check, or money order to
any individual in connection with a transaction or group of such
contemporaneous transactions which involves United States coins or
currency (or such other monetary instruments as the Secretary may
prescribe) in amounts or denominations of $3,000 or more unless--
(1) the individual has a transaction account with such financial
institution and the financial institution--
(A) verfies that fact through a signature care or other
information maintained by such institution in connection with the
account of such individual; and
(B) records the method of vertification in accordance with
regulations which the Secretary of the Treasury shall prescribe; or
(2) the individual furnishes the financial institution with such
forms of identification as the Secretary of the Treasury may require in
regulations which the Secretary shall prescribe and the financial
institution verifies and records such information in accordance with
regulations which such Secretary shall prescribe.
(b) REPORT TO SECRETARY UPON REQUEST.--Any information
required to be recorded by any financial institution under paragraph
(1) or (2) of subsection (a) shall be reported by such institution to
the Secretary of the Treasury at the request of such Secretary.
(c) TRANSACTION ACCOUNT DEFINED.--For purposes of this
section, the term "transaction account" has the meaning given to
such term in section 19(b)(1)(C)
of the Federal Reserve Act.
[Codified to 31 U.S.C. 5325]
[Source: Section 5325 added by section 6185(b) of title VI of the
Act of November 18, 1988 (Pub. L. No. 100--690; 102 Stat. 4355),
effective November 18, 1988]
§ 5326. Records of certain domestic coin and currency
transactions
(a) IN GENERAL.--If the Secretary of the Treasury finds,
upon the Secretary's own initiative or at the request of an appropriate
Federal or State law enforcement official, that reasonable grounds
exist for concluding that additional recordkeeping and reporting
requirements are necessary to carry out the purposes of this subtitle
and prevent evasions
{{2-29-08 p.8404}}thereof, the Secretary may
issue an order requiring any domestic financial institution or
nonfinancial trade or business or group of domestic financial
institutions or nonfinancial trades or business in a geographic area--
(1) to obtain such information as the
Secretary may describe in such order concerning--
(A) any transaction in which such financial
institution or nonfinancial trade or business is involved for the
payment, receipt, or transfer of United States coins or currency (or
such other monetary instruments as the Secretary may describe in such
order) the total amounts or denominations of which are equal to or
greater than an amount which the Secretary may prescribe; and
(B) any other person participating in such
transaction;
(2) to maintain a record of such information for such
period of time as the Secretary may require; and
(3) to file a report with respect to any transaction
described in paragraph (1)(A) in the manner and to the extent specified
in the order.
(b) Authority To Order Depository Institutions To
Obtain Reports From Customers.--
(1) IN GENERAL.--The Secretary of the
Treasury may, by regulation or order, require any depository
institution (as defined in section
3(c) of the Federal Deposit Insurance Act)--
(A) to request any financial institution or
nonfinancial trade or business (other than a depository institution)
which engages in any reportable transaction with the depository
institution to provide the depository institution with a copy of any
report filed by the financial institution or nonfinancial trade or
business under this subtitle with respect to any prior transaction
(between such financial institution or nonfinancial trade or business
and any other person) which involved any portion of the coins or
currency (or monetary instruments) which are involved in the reportable
transaction with the depository institution; and
(B) if no copy of any report described in subparagraph
(A) is received by the depository institution in connection with any
reportable transaction to which such subparagraph applies, to submit
(in addition to any report required under this subtitle with respect to
the reportable transaction) a written notice to the Secretary that the
financial institution or nonfinancial trade or business failed to
provide any copy of such report.
(2) REPORTABLE TRANSACTION DEFINED.--For
purposes of this subsection, the term "reportable transaction"
means any transaction involving coins or currency (or such other
monetary instruments as the Secretary may describe in the regulation or
order) the total amounts or denominations of which are equal to or
greater than an amount which the Secretary may prescribe.
(c) NONDISCLOSURE OF ORDERS.--No financial
institution or nonfinancial trade or business or officer, director,
employee or agent of a financial institution or nonfinancial trade or
business subject to an order under this section may disclose the
existence of, or terms of, the order to any person except as prescribed
by the Secretary.
(d) MAXIMUM EFFECTIVE PERIOD FOR ORDER.--No
order issued under subsection (a) shall be effective for more than 180
days unless renewed pursuant to the requirements of subsection (a).
[Codified to 31 U.S.C. 5326]
[Source: Section 5326 added by section 6185(c) of title
VI of the Act of November 18, 1988 (Pub. L. No. 100--690; 102 Stat.
4355), effective November 18, 1988; amended by section 1514 and 1562 of
title XV of the Act of Octobe 28, 1992 (Pub. L. No. 102--550; 106 Stat.
4058 and 4072), effective October 28, 1992; section 353(d) and
365(c)(2)(B) of title III of the Act of October 26, 2001 (Pub. L. No.
106--57; 115 Stat. 323 and 335), effective October 26,
2001]
§ 5327. [Repealed]
[Source: Section 5327 added by section 1511 of
title XV of the Act of October 28, 1992 (Pub. L. No. 102--550; 106
Stat. 4056), effective October 28, 1992; as repealed by section 2223(1)
of title II of the Act of September 30, 1996, (Pub. L. No. 104-208; 110
Stat. 3009-415), effective September 30, 1996]
{{2-29-08 p.8405}}
§ 5328. Whistleblower protections
(a) PROHIBITION AGAINST DISCRIMINATION.--No financial
institution or nonfinancial trade or business may discharge or
otherwise discriminate against any employee with respect to
compensation, terms, conditions, or privileges of employment because
the employee (or any person acting pursuant to the request of the
employee) provided information to the Secretary of the Treasury, the
Attorney General, or any Federal supervisory agency regarding a
possible violation of any provision of this subchapter or
section 1956,
1957, or 1960 of title 18, or
any regulation under any such provision, by the financial institution
or nonfinancial trade or business or any director, officer, or employee
of the financial institution or nonfinancial trade or business.
(b) ENFORCEMENT.--Any employee or former employee who
believes that such employee has been discharged or discriminated
against in violation of subsection (a) may file a civil action in the
appropriate United States district court before the end of the 2-year
period beginning on the date of such discharge or discrimination.
(c) REMEDIES.--If the district court determines that a
violation has occurred, the court may order the financial institution
or nonfinancial trade or business which committed the violation to--
(1) reinstate the employee to the employee's former position;
(2) pay compensatory damages; or
(3) take other appropriate actions to remedy any past
discrimination.
(d) LIMITATION.--The protections of this section shall not
apply to any employee who--
(1) deliberately causes or participates in the alleged violation
of law or regulation; or
(2) knowingly or recklessly provides substantially false
information to the Secretary, the Attorney General, or any Federal
supervisory agency.
(e) COORDINATION WITH OTHER PROVISIONS OF LAW.--This
section shall not apply with respect to any financial institution or
nonfinancial trade or business which is subject to
section 33 of the Federal
Deposit Insurance Act, section 213 of the Federal Credit Union Act, or
section 21A(q) of the Home Owners' Loan Act (as added by section 251(c)
of the Federal Deposit Insurance Corporation Improvement Act of 1991).
[Codified to 31 U.S.C. 5328]
[Source: Section 5328 added by section 1563(a) of title XV of the
Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4072),
effective October 28, 1992; as amended by section 365(c)(2)(B) of title
III of the Act of October 26, 2001 (Pub. L. No. 106--57; 115 Stat.
335), effective October 26, 2001]
§ 5329. Staff commentaries
The Secretary shall--
(1) publish all written rulings interpreting this subchapter; and
(2) annually issue a staff commentary on the regulations issued
under this subchapter.
[Codified to 31 U.S.C. 5329]
[Source: Section 5329 added by section 311 of title III of the Act
of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2221), effective
September 23, 1994]
§ 5330. Registration of money transmitting businesses
(a) Registration With Secretary of the Treasury
Required.--
(1) IN GENERAL.--Any person who owns or controls a money
transmitting business shall register the business (whether or not the
business is licensed as a money transmitting business in any State)
with the Secretary of the Treasury not later than the end of the
180-day period beginning on the later of--
(A) the date of enactment of the Money Laundering Suppression Act
of 1994; or
(B) the date on which the business is established.
(2) FORM AND MANNER OF REGISTRATION.--Subject to the
requirements of subsection (b), the Secretary of the Treasury shall
prescribe, by regulation, the form and manner for registering a money
transmitting business pursuant to paragraph (1).
{{2-29-08 p.8406}}
(3) BUSINESSES REMAIN SUBJECT TO STATE LAW.--This
section shall not be construed as superseding any requirement of State
law relating to money transmitting businesses operating in such State.
(4) FALSE AND INCOMPLETE INFORMATION.--The filing of
false or materially incomplete information in connection with the
registration of a money transmitting business shall be considered as a
failure to comply with the requirements of this subchapter.
(b) CONTENTS OF REGISTRATION.--The registration of a money
transmitting business under subsection (a) shall include the following
information:
(1) The name and location of the business.
(2) The name and address of each person who--
(A) owns or controls the business;
(B) is a director or officer of the business; or
(C) otherwise participates in the conduct of the affairs of the
business.
(3) The name and address of any depository institution at which
the business maintains a transaction account (as defined in
section 19(b)(1)(C) of the
Federal Reserve Act).
(4) An estimate of the volume of business in the coming year
(which shall be reported annually to the Secretary).
(5) Such other information as the Secretary of the Treasury may
require.
(c) AGENTS OF MONEY TRANSMITTING BUSINESSES.--
(1) Maintenance of lists of agents of money transmitting
businesses.--Pursuant to regulations which the Secretary of the
Treasury shall prescribe, each money transmitting business shall--
(A) maintain a list containing the names and addresses of all
persons authorized to act as an agent for such business in connection
with activities described in subsection (d)(1)(A) and such other
information about such agents as the Secretary may require; and
(B) make the list and other information available on request to
any appropriate law enforcement agency.
(2) Treatment of agent as money transmitting
business.--The Secretary of the Treasury shall prescribe
regulations establishing, on the basis of such criteria as the
Secretary determines to be appropriate, a threshold point for treating
an agent of a money transmitting business as a money transmitting
business for purposes of this section.
(d) DEFINITIONS.--For purposes of this section, the
following definitions shall apply:
(1) MONEY TRANSMITTING BUSINESS.--The term "money
transmitting business" means any business other than the United
States Postal Service which--
(A) provides check cashing, currency exchange, or money
transmitting or remittance services, or issues or redeems money orders,
travelers' checks, and other similar instruments or any other person
who engages as a business in the transmission of funds, including any
person who engages as a business in an informal money transfer system
or any network of people who engage as a business in facilitating the
transfer of money domestically or internationally outside of the
conventional financial institutions system;
(B) is required to file reports under
section 5313; and
(C) is not a depository institution (as defined in section
5313(g)).
(2) MONEY TRANSMITTING SERVICE.--The term "money
transmitting service" includes accepting currency or funds
denominated in the currency of any country and transmitting the
currency or funds, or the value of the currency or funds, by any means
through a financial agency or institution, a Federal reserve bank or
other facility of the Board of Governors of the Federal Reserve System,
or an electronic funds transfer network.
(e) Civil Penalty for Failure To Comply With Registration
Requirements.--
(1) IN GENERAL.--Any person who fails to comply with any
requirement of this section or any regulation prescribed under this
section shall be liable to the United States for a civil penalty of
$5,000 for each such violation.
(2) CONTINUING VIOLATIONS.--Each day a violation
described in paragraph (1) continues shall constitute a separate
violation for purposes of such paragraph.
(3) ASSESSMENTS.--Any penalty imposed under this
subsection shall be assessed and collected by the Secretary of the
Treasury in the manner provided in section 5321 and any such assessment
shall be subject to the provisions of such section.
{{2-29-08 p.8407}}
[Codified to 31 U.S.C. 5330]
(Source: Section 5330 added by section 408(b) of title IV
of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat.
2250), effective September 23, 1994; as amended by section 359(b) of
title III of the Act of October 26, 2001 (Pub. L. No. 106--57; 115
Stat. 328), effective October 26, 2001]
§ 5331. Reports relating to coins and currency received in
nonfinancial trade or business
(a) COIN AND CURRENCY RECEIPTS OF MORE THAN $10,000.-- Any
person--
(1) who is engaged in a trade or business; and
(2) who, in the course of such trade or business, receives more
than $10,000 in coins or currency in 1 transaction (or 2 or more
related transactions), shall file a report described in subsection (b)
with respect to such transaction (or related transactions) with the
Financial Crimes Enforcement network at such time and in such manner as
the Secretary may, by regulation, prescribe.
(b) FORM AND MANNER OF REPORTS.--A report is described in
this subsection if such report--
(1) is in such form as the Secretary may prescribe;
(2) contains--
(A) the name and address, and such other identification
information as the Secretary may require, of the person from whom the
coins or currency was received;
(B) the amount of coins or currency received;
(C) the date and nature of the transaction; and
(D) such other information, including the identification of the
person filing the report, as the Secretary may prescribe.
(c) EXCEPTIONS.--
(1) Amounts Received by Financial
Institutions.--Subsection (a) shall not apply to amounts received
in a transaction reported under section 5313 and regulations prescribed
under such section.
(2) Transactions Occurring Outside the United
States.--Except to the extent provided in regulations prescribed by
the Secretary, subsection (a) shall not apply to any transaction if the
entire transaction occurs outside the United States.
(d) Currency Includes Foreign Currency and Certain Monetary
Instruments.--
(1) IN GENERAL.--For purposes of this section, the term
"currency" includes--
(A) foreign currency; and
(B) to the extent provided in regulations prescribed by the
Secretary, any monetary instrument (whether or not in bearer form) with
a face amount of not more than $10,000.
(2) SCOPE OF APPLICATION.--Paragraph (1)(B) shall not
apply to any check drawn on the account of the writer in a financial
institution referred to in subparagraph (A), (B), (C), (D), (E), (F),
(G), (J), (K), (R), or (S) of section 5312(a)(2).
[Codified to 31 U.S.C. 5331]
[Source: Section 5331 added by Section 365(a) of title III of the
Act of October 26, 2001 (Pub. L. No. 106--57; 115 Stat. 333],
effective October 26, 2001]
§ 5332. Bulk cash smuggling into or out of the United States
(a) CRIMINAL OFFENSE.--
(1) IN GENERAL.--Whoever, with the intent to evade a
currency reporting requirement under section 5316, knowingly conceals
more than $10,000 in currency or other monetary instruments on the
person of such individual or in any conveyance, article of luggage,
merchandise, or other container, and transports or transfers or
attempts to transport or transfer such currency or monetary instruments
from a place within the United States to a place outside of the United
States, or from a place outside the United States to a place within the
United States, shall be guilty of a currency smuggling offense and
subject to punishment pursuant to subsection (b).
{{2-29-08 p.8408}}
(2) CONCEALMENT ON PERSON.--For purposes of this
section, the concealment of currency on the person of any individual
includes concealment in any article of clothingworn by the individual
or in any luggage, backpack, or other container worn or carried by such
individual.
(b) PENALTY.--
(1) TERM OF IMPRISONMENT.--A person convicted of a
currency smuggling offense under subsection (a), or a conspiracy to
commit such offense, shall be imprisoned for not more than 5 years.
(2) FORFEITURE.--In addition, the court, in imposing
sentence under paragraph (1), shall order that the defendant forfeit to
the United States, any property, real or personal, involved in the
offense, and any property traceable to such property.
(3) PROCEDURE.--The seizure, restraint, and forfeiture
of property under this section shall be governed by section 413 of the
Controlled Substances Act.
(4) PERSONAL MONEY JUDGMENT.--If the property subject to
forfeiture under paragraph (2) is unavailable, and the defendant has
insufficient substitute property that may be forfeited pursuant to
section 413(p) of the Controlled Substances Act, the court shall enter
a personal money judgment against the defendant for the amount that
would be subject to forfeiture.
(c) CIVIL FORFEITURE.--
(1) IN GENERAL.--Any property involved in a violation of
subsection (a), or a conspiracy to commit such violation, and any
property traceable to such violation or conspiracy, may be seized and
forfeited to the United States.
(2) PROCEDURE.--The seizure and forfeiture shall be
governed by the procedures governing civil forfeitures in money
laundering cases pursuant to section 981(a)(1)(A) of title 18, United
States Code.
(3) Treatment of Certain Property as Involved in the
Offense.--For purposes of this subsection and subsection (b), any
currency or other monetary instrument that is concealed or intended to
be concealed in violation of subsection (a) or a conspiracy to commit
such violation, any article, container, or conveyance used, or intended
to be used, to conceal or transport the currency or other monetary
instrument, and any other property used, or intended to be used, to
facilitate the offense, shall be considered property involved in the
offense.
[Codified to 31 U.S.C. 5332]
[Source: Section 5332 added by section 371(c) of title III of the
Act of October 26, 2001 (Pub. L. No. 106--57; 115 Stat. 337),
effective October 26, 2001]
[The page following this is 8481.]
* Formerly the Currency and Foreign Transactions Reporting Act (31
U.S.C. 1051 et seq.). Go Back to Text
* Editor's Note: So in original. Two subsections
(l) have been enacted. Go Back to Text
* Editor's Note: Subsection (m) was designated as a
second (l) in P.L. 107--56. Go Back to Text
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