bank secrecy act section 201 - federal reserve board

Bank Secrecy ActSection 201.0

TITLE 31—Money and Finance:Treasury

SUBTITLE B—Regulations Relatingto Money and Finance

CHAPTER I—Monetary Offices,Department of the Treasury

PART 103—Financial Recordkeepingand Reporting of Currency andForeign Transactions

SUBPART A—Definitions

31 CFR 103.11

§103.11 Meaning of terms.

[PUBLISHER’S NOTE: Paragraphs (n)(7)(i), (z) and (nn)were revised, and paragraphs (rr), (ss), and (tt) were added at61 FR 7054, 7055, Feb. 23, 1996, effective Aug. 1, 1996.]

When used in this part and in forms prescribedunder this part, where not otherwise distinctlyexpressed or manifestly incompatible with theintent thereof, terms shall have the meaningsascribed in this section.

(a) Accept. A receiving financial institution,other than the recipient’s financial insti-tution, accepts a transmittal order byexecuting the transmittal order. A recipi-ent’s financial institution accepts a trans-mittal order by paying the recipient, bynotifying the recipient of the receipt ofthe order or by otherwise becoming obli-gated to carry out the order.

(b) At one time. For purposes of §103.23 ofthis part, a person who transports, mails,ships or receives; is about to or attemptsto transport, mail or ship; or causes thetransportation, mailing, shipment or receiptof monetary instruments, is deemed to doso ‘‘at one time’’ if:(1) That person either alone, in conjunc-

tion with or on behalf of others;(2) Transports, mails, ships or receives

in any manner; is about to transport,mail or ship in any manner; or causesthe transportation, mailing, shipmentor receipt in any manner of;

(3) Monetary instruments;

(4) Into the United States or out of theUnited States;

(5) Totaling more than $10,000;(6) (i) On one calendar day or (ii) if for

the purpose of evading the report-ing requirements of §103.23, onone or more days.

(c) Bank. Each agent, agency, branch oroffice within the United States of anyperson doing business in one or more ofthe capacities listed below:(1) A commerical bank or trust company

organized under the laws of any Stateor of the United States;

(2) A private bank;(3) A savings and loan association or a

building and loan association orga-nized under the laws of any State orof the United States;

(4) An insured institution as defined insection 401 of the National HousingAct;

(5) A savings bank, industrial bank orother thrift institution;

(6) A credit union organized under thelaw of any State or of the UnitedStates;

(7) Any other organization charteredunder the banking laws of any Stateand subject to the supervision of thebank supervisory authorities of aState;

(8) A bank organized under foreign law;(9) Any national banking association or

corporation acting under the provi-sions of section 25(aa) of the Act ofDec. 23, 1913, as added by the Act ofDec. 24, 1919, ch. 18, 41 Stat. 378, asamended (12 U.S.C. 611–32).

(d) Beneficiary. The person to be paid by thebeneficiary’s bank.

(e) Beneficiary’s bank. The bank or foreignbank identified in a payment order inwhich an account of the beneficiary is tobe credited pursuant to the order or whichotherwise is to make payment to thebeneficiary if the order does not providefor payment to an account.

(f) Broker or dealer in securities. A brokeror dealer in securities, registered orrequired to be registered with the Securi-

Bank Secrecy Act Manual September 1997

ties and Exchange Commission under theSecurities Exchange Act of 1934.

(g) Common carrier. Any person engaged inthe business of transporting individualsor goods for a fee who holds himself outas ready to engage in such transportationfor hire and who undertakes to do soindiscriminately for all persons who areprepared to pay the fee for the particularservice offered.

(h) Currency. The coin and paper money ofthe United States or of any other countrythat is designated as legal tender and thatcirculates and is customarily used andaccepted as a medium of exchange in thecountry of issuance. Currency includesU.S. silver certificates, U.S. notes andFederal Reserve notes. Currency alsoincludes official foreign bank notes thatare customarily used and accepted as amedium of exchange in a foreign country.

(i) Currency dealer or exchanger. A personwho engages as a business in dealing inor exchanging currency, except for bankswhich offer such services as an adjunct totheir regular services.

(j) Deposit account. Deposit accounts includetransaction accounts described in para-graph (q) of this section, savings accounts,and other time deposits.

(k) Domestic. When used herein, refers to thedoing of business within the United States,and limits the applicability of the provi-sion where it appears to the performanceby such institutions or agencies of func-tions within the United States.

(l) Established customer. A person with anaccount with the financial institution,including a loan account or deposit orother asset account, or a person withrespect to which the financial institutionhas obtained and maintains on file theperson’s name and address, as well astaxpayer identification number (e.g., socialsecurity or employer identification num-ber) or, if none, alien identification num-ber or passport number and country ofissuance, and to which the financial insti-tution provides financial services relyingon that information.

(m) Execution date. The day on which thereceiving financial institution may prop-erly issue a transmittal order in executionof the sender’s order. The execution datemay be determined by instruction of the

sender but cannot be earlier than the daythe order is received, and, unless other-wise determined, is the day the order isreceived. If the sender’s instruction statesa payment date, the execution date is thepayment date or an earlier date on whichexecution is reasonably necessary to allowpayment to the recipient on the paymentdate.

(n) Financial institution. Each agent, agency,branch, or office within the United Statesof any person doing business, whether ornot on a regular basis or as an organizedbusiness concern, in one or more of thecapacities listed below:(1) A bank (except bank credit card

systems);(2) A broker or dealer in securities;(3) A currrency dealer or exchanger,

including a person engaged in thebusiness of a check casher;

(4) An issuer, seller, or redeemer of trav-eler’s checks or money orders, exceptas a selling agent exclusively whodoes not sell more than $150,000 ofsuch instruments within any given30-day period;

(5) A licensed transmitter of funds, orother person engaged in the businessof transmitting funds;

(6) A telegraph company;(7) (i) [Effective Aug. 1, 1996.] Casino.

A casino or gambling casino that:Is duly licensed or authorized todo business as such in the UnitedStates, whether under the laws ofa State or of a Territory or Insu-lar Possession of the UnitedStates, or under the Indian Gam-ing Regulatory Act or otherfederal, state, or tribal law orarrangement affecting Indianlands (including, without limi-tation, a casino operating on theassumption or under the viewthat no such authorization isrequired for casino operation onIndian lands); and has grossannual gaming revenue in excessof $1 million. The term includesthe principal headquarters andevery domestic branch or placeof business of the casino.

(ii) For purposes of this paragraph(i)(7), ‘‘gross annual gaming reve-

Bank Secrecy Act 201.0

September 1997 Bank Secrecy Act Manual

nue’’ means the gross gamingrevenue received by a casino,during either the previous busi-ness year or the current businessyear of the casino. A casino orgambling casino which is acasino for purposes of this partsolely because its gross annualgaming revenue exceeds$1,000,000 during its currentbusiness year, shall not be con-sidered a casino for purposes ofthis part prior to the time in itscurrent business year that itsgross annual gaming revenueexceeds $1,000,000.

(8) A person subject to supervision byany state or federal bank supervisoryauthority;.

(9) The United States Postal Service withrespect to the sale of money orders.

(o) Foreign bank. A bank organized underforeign law, or an agency, branch oroffice located outside the United States ofa bank. The term does not include anagent, agency, branch or office within theUnited States of a bank organized underforeign law.

(p) Foreign financial agency. A person act-ing outside the United States for a person(except for a country, a monetary orfinancial authority acting as a monetaryor financial authority, or an internationalfinancial institution of which the UnitedStates Government is a member) as afinancial institution, bailee, depositorytrustee, or agent, or acting in a similarway related to money, credit, securities,gold, or a transaction in money, credit,securities, or gold.

(q) Funds transfer. The series of transac-tions, beginning with the originator’s pay-ment order, made for the purpose ofmaking payment to the beneficiary of theorder. The term includes any paymentorder issued by the originator’s bank oran intermediary bank intended to carryout the originator’s payment order. Afunds transfer is completed by acceptanceby the beneficiary’s bank of a paymentorder for the benefit of the beneficiary ofthe originator’s payment order. Fundstransfers governed by the Electronic FundTransfer Act of 1978 (Title XX, Pub. L.95-630, 92 Stat. 3728, 15 U.S.C. 1693, et

seq.), as well as any other funds transfersthat are made through an automated clear-inghouse, an automated teller machine, ora point-of-sale system, are excluded fromthis definition.

(r) Transaction.

(1) Except as provided in paragraph(ii)(2) of this section, transactionmeans a purchase, sale, loan, pledge,gift, transfer, delivery or other dispo-sition, and with respect to a financialinstitution includes a deposit, with-drawal, transfer between accounts,exchange of currency, loan, exten-sion of credit, purchase or sale of anystock, bond, certificate of deposit, orother investment security or mone-tary instrument, or any other pay-ment, transfer, or delivery by, through,or to a financial institution, by what-ever means effected.

(2) For purposes of §103.22, and otherprovisions of this part relating solelyto the report required by that section,the term ‘‘transaction in currency’’shall mean a transaction involvingthe physical transfer of currency fromone person to another. A transactionwhich is a transfer of funds by meansof bank check, bank draft, wire trans-fer, or other written order, and whichdoes not include the physical transferof currency, is not a transaction incurrency for this purpose.

(s) Intermediary financial institution. Areceiving financial institution, other thanthe transmittor’s financial institution orthe recipient’s financial institution. Theterm intermediary financial institutionincludes an intermediary bank.

(t) Investment security. An instrument which:

(1) Is issued in bearer or registered form;

(2) Is of a type commonly dealt in uponsecurities exchanges or markets orcommonly recognized in any area inwhich it is issued or dealt in as amedium for investment;

(3) Is either one of a class or series or byits terms is divisible into a class orseries of instruments; and

(4) Evidences a share, participation orother interest in property or in an

201.0 Bank Secrecy Act


enterprise or evidences an obligationof the issuer.

(u) Monetary instruments.(1) Monetary instruments include:

(i) Currrency;(ii) Traveler’s checks in any form;

(iii) All negotiable instruments(including personal checks, busi-ness checks, official bank checks,cashier’s checks, third-partychecks, promissory notes (as thatterm is defined in the UniformCommercial Code), and moneyorders) that are either in bearerform, endorsed without restric-tion, made out to a fictitiouspayee (for the purposes of§103.23), or otherwise in suchform that title thereto passesupon delivery;

(iv) Incomplete instruments (includ-ing personal checks, businesschecks, official bank checks,cashier’s checks, third-partychecks, promissory notes (as thatterm is defined in the UniformCommercial Code), and moneyorders) signed but with thepayee’s name omitted; and

(v) Securities or stock in bearer formor otherwise in such formthat title thereto passes upondelivery.

(2) Monetary instruments do not includewarehouse receipts or bills of lading.

(v) Originator. The sender of the first pay-ment order in a funds transfer.

(w) Originator’s bank. The receiving bank towhich the payment order of the originatoris issued if the originator is not a bank orforeign bank, or the originator if theoriginator is a bank or foreign bank.

(x) Payment date. The day on which theamount of the transmittal order is payableto the recipient by the recipient’s finan-cial institution. The payment date may bedetermined by instruction of the sender,but cannot be earlier than the day theorder is received by the recipient’s finan-cial institution and, unless otherwise pre-scribed by instruction, is the date theorder is received by the recipient’s finan-cial institution.

(y) Payment order. An instruction of a senderto a receiving bank, transmitted orally,

electronically, or in writing, to pay, or tocause another bank or foreign bank topay, a fixed or determinable amount ofmoney to a beneficiary if:

(z) [Effective Aug. 1, 1996.]Person. Anindividual, a corporation, a partnership, atrust or estate, a joint stock company, anassociation, a syndicate, joint venture, orother unincorporated organization orgroup, an Indian Tribe (as that term isdefined in the Indian Gaming RegulatoryAct), and all entities cognizable as legalpersonalities.

(aa) Receiving bank. The bank or foreignbank to which the sender’s instruction isaddressed.

(bb) Receiving financial institution. The finan-cial institution or foreign financial agencyto which the sender’s instruction isaddressed. The term receiving financialinstitution includes a receiving bank.

(cc) Recipient. The person to be paid by therecipient’s financial institution. The termrecipient includes a beneficiary, exceptwhere the recipient’s financial institutionis a financial institution other than a bank.

(dd) Recipient’s financial institution. The finan-cial institution or foreign financial agencyidentified in a transmittal order in whichan account of the recipient is to becredited pursuant to the transmittal orderor which otherwise is to make paymentto the recipient if the order does notprovide for payment to an account. Theterm recipient’s financial institutionincludes a beneficiary’s bank, exceptwhere the beneficiary is a recipient’sfinancial institution.

(ee) Secretary. The Secretary of the Treasuryor any person duly authorized by theSecretary to perform the functionmentioned.

(ff) Sender. The person giving the instructionto the receiving financial institution.

(gg) Structure (structuring). For purposes ofsection 103.53, a person structures a trans-action if that person, acting alone, or inconjunction with, or on behalf of, otherpersons, conducts or attempts to conductone or more transactions in currency, inany amount, at one or more financialinstitutions, on one or more days, in anymanner, for the purpose of evading thereporting requirements under section103.22 of this Part. ‘In any manner’



includes, but is not limited to, the break-ing down of a single sum of currencyexceeding $10,000 into smaller sums,including sums at or below $10,000, orthe conduct of a transaction, or series ofcurrency transactions, including transac-tions at or below $10,000. The transac-tion or transactions need not exceed the$10,000 reporting threshold at any singlefinancial institution on any single day inorder to constitute structuring within themeaning of this definition.

(hh) Transaction account. Transaction accountsinclude those accounts described in12 U.S.C. 461(b)(1)(C), money marketaccounts and similar accounts that takedeposits and are subject to withdrawal bycheck or other negotiable

(ii) Transaction in currency. A transactioninvolving the physical transfer of cur-rency from one person to another. Atransaction which is a transfer of funds bymeans of bank check, bank draft, wiretransfer, or other written order, and whichdoes not include the physical transfer ofcurrency is not a transaction in currencywithin the meaning of this part.

(jj) Transmittal of funds. A series of transac-tions beginning with the transmittor’stransmittal order, made for the purpose ofmaking payment to the recipient of theorder. The term includes any transmittalorder issued by the transmittor’ s finan-cial institution or an intermediary finan-cial institution intended to carry out thetransmittor’s transmittal order. The termtransmittal of funds includes a fundstransfer. A transmittal of funds is com-pleted by acceptance by the recipient’sfinancial institution of a transmittal orderfor the benefit of the recipient of thetransmittor’s transmittal order. Fundstransfers governed by the Electronic FundTransfer Act of 1978 (Title XX, Pub. L.95-630, 92 Stat. 3728, 15 U.S.C. 1693, etseq.), as well as any other funds transfersthat are made through an automated clear-inghouse, an automated teller machine, ora point-of-sale system, are excluded fromthis definition.

(kk) Transmittal order. The term transmittalorder includes a payment order and is aninstruction of a sender to a receivingfinancial institution, transmitted orally,electronically, or in writing, to pay, or

cause another financial institution or for-eign financial agency to pay, a fixed ordeterminable amount of money to arecipient if:

(ll) Transmittor. The sender of the first trans-mittal order in a transmittal of funds. Theterm transmittor includes an originator,except where the transmittor’s financialinstitution is a financial institution orforeign financial agency other than abank or foreign bank.

(mm) Transmittor’s financial institution. Thereceiving financial institution to whichthe transmittal order of the transmittor isissued if the transmittor is not a financialinstitution or foreign financial agency, orthe transmittor if the transmittor is afinancial institution or foreign financialagency. The term transmittor’s financialinstitution includes an originator’s bank,except where the originator is a transmit-tor’s financial institution other than abank or foreign bank.

(nn) [Effective Aug. 1, 1996.]United States.The States of the United States, the Dis-trict of Columbia, the Indian lands (asthat term is defined in the Indian GamingRegulatory Act), and the Territories andInsular Possessions of the United States.

(oo) Business day. Business day, as used inthis part with respect to banks, means thatday, as normally communicated to itsdepository customers, on which a bankroutinely posts a particular transaction toits customer’s account.

(pp) Postal Service. The United States PostalService

(qq) FinCEN. FinCEN means the FinancialCrimes Enforcement Network, an officewithin the Office of the Under Secretary(Enforcement) of the Department of theTreasury.

(rr) [Effective Aug. 1, 1996.]Indian GamingRegulatory Act. The Indian Gaming Regu-latory Act of 1988, codified at 25 U.S.C.2701–2721 and 18 U.S.C. 1166–68.

(ss) [Effective Aug. 1, 1996.]State. The Statesof the United States and, wherever nec-essary to carry out the provisions of thispart, the District of Columbia.

(tt) [Effective Aug. 1, 1996.]Territories andInsular Possessions. The Commonwealthof Puerto Rico, the United States VirginIslands, Guam, the Commonwealth of theNorthern Mariana Islands, and all other



territories and possessions of the UnitedStates other than the Indian lands and theDistrict of Columbia.

HISTORY:[52 FR 11441, Apr. 8, 1987; 52 FR 12641, Apr. 17, 1987, asamended at 53 FR 777, Jan. 13, 1988; 53 FR 4138, Feb. 12,l988; 54 FR 3027, Jan. 23, 1989; 54 FR 28418, July 6, 1989;55 FR 20143, May 15, 1990; 58 FR 13546, Mar. 12, 1993; 58FR 45263, Aug. 27, 1993; 59 FR 9088, Feb. 25, 1994; 60 FR228, Jan. 3, 1995; 60 FR 44144, Aug. 24, 1995; 61 FR 4326,4331, Feb. 5, 1996, as corrected at 61 FR 14248, 14249,April 1, 1996; 61 FR 7054, 7055, Feb. 23, 1996; 61 FR 7054,7055, Feb. 23, 1996; 61 FR 14383, 14385, Apr. 1, 1996]

AUTHORITY:AUTHORITY NOTE APPLICABLE TO ENTIRE PART:12 U.S.C. 1829b and 1951-1959; 31 U.S.C. 5311-5330.

NOTES:[EFFECTIVE DATE NOTE: 60 FR 228, Jan. 3, 1995, whichamended this section, became effective Jan. 1, 1996; 60 FR44144, Aug. 24, 1995, delayed the effective date of theamendment at 60 FR 228, Jan. 3, 1995, from Jan. 1, 1996 toApr. 1, 1996; 61 FR 14382, April 1, 1996, delayed theeffective date of the amendment at 60 FR 228, Jan. 3, 1995,from April 1, 1996, to May 28, 1996; 61 FR 4326, 4331,Feb. 5, 1996, which revised paragraph (r) and added para-graph (qq), became effective April 1, 1996; 61 FR 7054, 7055,Feb. 23, 1996, which revised paragraphs (n)(7)(i), (z) and(nn), and added paragraphs (rr), (ss) and (tt), is effectiveAug. 1, 1996; 61 FR 14383, 14385, April 1, 1996, whichrevised paragraphs (e), (w), (y), (aa), (bb), (dd), (kk), (ll), and(mm), became effective May 28 1996.]NOTES APPLICABLE TO ENTIRE TITLE:EDITORIAL NOTE: Other regulations issued by Departmentof the Treasury appear in Title 12, Chapter I; Title 19,Chapter I; Title 26, Chapter I; Title 27, Chapter I; Title 31,Chapters II, IV, V, VI, and VII, and Title 48, Chapter 10.CROSS REFERENCE: General Accounting Office: See 4C.F.R. Chapter I.

NOTES APPLICABLE TO ENTIRE CHAPTER:ABBREVIATION: The following abbreviation is used in thischapter: C.P.D. = Commissioner of the Public Debt.

NOTES APPLICABLE TO ENTIRE PART:EDITORIAL NOTE: Nomenclature changes for part 103appear at 52 FR 11442, Apr. 8, 1987.

SUBPART B—Reports Required tobe Made

31 C.F.R. 103.20

§103.20 Determination by theSecretary.

The Secretary hereby determines that the reportsrequired by this subpart have a high degree ofusefulness in criminal, tax, or regulatory inves-tigations or proceedings.

HISTORY:[37 FR 6912, Apr. 5, 1972, as redesignated at 61 FR 4326,4331, Feb. 5 1996]


NOTES:[EFFECTIVE DATE NOTE: 61 FR 4326, 4331, Feb. 5 1996,which redesignated this section, is effective April 1, 1996.][CROSS REFERENCE: This section was formerly § 103.21.]NOTES APPLICABLE TO ENTIRE TITLE:EDITORIAL NOTE: Other regulations issued by Departmentof the Treasury appear in Title 12, Chapter I; Title 19, Chap-ter I; Title 26, Chapter I; Title 27, Chapter I; Title 31, Chap-ters II, IV, V, VI, and VII, and Title 48, Chapter 10.CROSS REFERENCE: General Accounting Office: See 4C.F.R. Chapter I.




31 C.F.R. 103.21

§103.21 Reports by banks ofsuspicious transactions.

(a) General.(1) Every bank shall file with the Treasury

Department, to the extent and in themanner required by this section, a reportof any suspicious transaction relevant toa possible violation of law or regulation.A bank may also file with the TreasuryDepartment by using the SuspiciousActivity Report specified in paragraph(b)(1) of this section or otherwise, areport of any suspicious transaction thatit believes is relevant to the possibleviolation of any law or regulation butwhose reporting is not required by thissection.

(2) A transaction requires reporting underthe terms of this section if it is con-ducted or attempted by, at, or throughthe bank, it involves or aggregates atleast $5,000 in funds or other assets, andthe bank knows, suspects, or has reasonto suspect that:



(i) The transaction involves fundsderived from illegal activities or isintended or conducted in order tohide or disguise funds or assetsderived from illegal activities(including, without limitation, theownership, nature, source, loca-tion, or control of such funds orassets) as part of a plan to violateor evade any federal law or regu-lation or to avoid any transactionreporting requirement under fed-eral law or regulation;

(ii) The transaction is designed to evadeany requirements of this part or ofany other regulations promulgatedunder the Bank Secrecy Act,Pub. L. 91-508, as amended, codi-fied at 12 U.S.C. 1829b, 12 U.S.C.1951–1959, and 31 U.S.C. 5311–5330; or

(iii) The transaction has no business orapparent lawful purpose or is notthe sort in which the particularcustomer would normally beexpected to engage, and the bankknows of no reasonable explana-tion for the transaction after exam-ining the available facts, includingthe background and possible pur-pose of the transaction.

(b) Filing procedures—(1) What to file. A suspicious transaction

shall be reported by completing a Sus-picious Activity Report (‘‘SAR’’), andcollecting and maintaining supportingdocumentation as required by para-graph (d) of this section.

(2) Where to file. The SAR shall be filedwith FinCEN in a central location, to bedetermined by FinCEN, as indicated inthe instructions to the SAR.

(3) When to file. A bank is required to filea SAR no later than 30 calendar daysafter the date of initial detection by thebank of facts that may constitute a basisfor filing a SAR. If no suspect wasidentified on the date of the detection ofthe incident requiring the filing, a bankmay delay filing a SAR for an additional30 calendar days to identify a suspect.In no case shall reporting be delayedmore than 60 calendar days after thedate of initial detection of a reportabletransaction. In situations involving vio-

lations that require immediate attention,such as, for example, ongoing moneylaundering schemes, the bank shallimmediately notify, by telephone, anappropriate law enforcement authorityin addition to filing timely a SAR.

(c) Exceptions. A bank is not required to file aSAR for a robbery or burglary committed orattempted that is reported to appropriate lawenforcement authorities, or for lost, missing,counterfeit, or stolen securities with respectto which the bank files a report pursuantto the reporting requirements of 17 C.F.R.240.17f-1.

(d) Retention of records. A bank shall maintaina copy of any SAR filed and the original orbusiness record equivalent of any support-ing documentation for a period of five yearsfrom the date of filing the SAR. Supportingdocumentation shall be identified, and main-tained by the bank as such, and shall bedeemed to have been filed with the SAR. Abank shall make all supporting documenta-tion available to FinCEN and any appropri-ate law enforcement agencies or bank super-visory agencies upon request.

(e) Confidentiality of reports; limitation of lia-bility. No bank or other financial institution,and no director, officer, employee, or agentof any bank or other financial institution,who reports a suspicious transaction underthis part, may notify any person involved inthe transaction that the transaction has beenreported. Thus, any person subpoenaed orotherwise requested to disclose a SAR orthe information contained in a SAR, exceptwhere such disclosure is requested byFinCEN or an appropriate law enforcementor bank supervisory agency, shall decline toproduce the SAR or to provide any informa-tion that would disclose that a SAR has beenprepared or filed, citing this paragraph (e)and 31 U.S.C. 5318(g)(2), and shall notifyFinCEN of any such request and its responsethereto. A bank, and any director, officer,employee, or agent of such bank, that makesa report pursuant to this section (whethersuch report is required by this section or ismade voluntarily) shall be protected fromliability for any disclosure contained in, orfor failure to disclose the fact of such report,or both, to the full extent provided by31 U.S.C. 5318(g)(3).

(f) Compliance. Compliance with this sectionshall be audited by the Department of the



Treasury, through FinCEN or its delegeesunder the terms of the Bank Secrecy Act.Failure to satisfy the requirements of thissection may be a violation of the reportingrules of the Bank Secrecy Act and of thispart. Such failure may also violate provi-sions of Title 12 of the Code of FederalRegulations.

HISTORY:[61 FR 4326, 4331, Feb. 5, 1996, as corrected at 61 FR 14248,14249, April 1, 1996, and 61 FR 18250, April 25, 1996]


NOTES:[EFFECTIVE DATE NOTE: 61 FR 4326, 4331, Feb. 5, 1996,which added this section, became effective April 1, 1996.]NOTES APPLICABLE TO ENTIRE TITLE:EDITORIAL NOTE: Other regulations issued by Departmentof the Treasury appear in Title 12, Chapter I; Title 19, Chap-ter I; Title 26, Chapter I; Title 27, Chapter I; Title 31, Chap-ters II, IV, V, VI, and VII, and Title 48, Chapter 10.CROSS REFERENCE: General Accounting Office: See4 C.F.R. Chapter I.







SUBPART A—Definitions

31 C.F.R. 103.11

§103.22 Reports of currencytransactions.

(a) (1) Each financial institution other than acasino or the Postal Service shall file areport of each deposit, withdrawal,

exchange of currency or other paymentor transfer, by, through, or to suchfinancial institution which involves atransaction in currency of more than$10,000. Transactions in currency byexempt persons with banks occurringafter April 30, 1996, are not subject tothis requirement to the extent providedin paragraph (h) of this section. Mul-tiple currency transactions shall betreated as a single transaction if thefinancial institution has knowledge thatthey are by or on behalf of any personand result in either cash in or cash outtotalling more than $10,000 during anyone business day. Deposits made atnight or over a weekend or holiday shallbe treated as if received on the nextbusiness day following the deposit.

(2) Each casino shall file a report of eachtransaction in currency, involving eithercash in or cash out, of more than$10,000.

(i) Transactions in currency involvingcash in include, but are not limitedto:(A) Purchases of chips, tokens, and

plaques;(B) Front money deposits;(C) Safekeeping deposits;(D) Payments on any form of

credit, including markers andcounter checks;

(E) Bets of currency;(F) Currency received by a casino

for transmittal of funds throughwire transfer for a customer;

(G) Purchases of a casino’s check;and

(H) Exchanges of currency for cur-rency, including foreign cur-rency.

(ii) Transactions in currency involvingcash out include, but are not lim-ited to:(A) Redemptions of chips, tokens,

and plaques;(B) Front money withdrawals;(C) Safekeeping withdrawals;(D) Advances on any form of

credit, including markers andcounter checks;



(E) Payments on bets, includingslot jackpots;

(F) Payments by a casino to acustomer based on receipt offunds through wire transfer forcredit to a customer;

(G) Cashing of checks or othernegotiable instruments;

(H) Exchanges of currency for cur-rency, including foreign cur-rency; and

(I) Reimbursements for custom-ers’ travel and entertainmentexpenses by the casino.

(iii) Multiple currency transactions shallbe treated as a single transaction ifthe casino has knowledge that theyare by or on behalf of any personand result in either cash in or cashout totalling more than $10,000during any gaming day. For pur-poses of this paragraph (a)(2), acasino shall be deemed to have theknowledge described in the preced-ing sentence, if: any sole propri-etor, partner, officer, director, oremployee of the casino, actingwithin the scope of his or heremployment, has knowledge thatsuch multiple currency transac-tions have occurred, includingknowledge from examining thebooks, records, logs, informationretained on magnetic disk, tape orother machine-readable media, orin any manual system, and similardocuments and information, whichthe casino maintains pursuant toany law or regulation or within theordinary course of its business, andwhich contain information that suchmultiple currency transactions haveoccurred.(A) Any sole proprietor, partner,

officer, director, or employeeof the casino, acting withinthe scope of his or her employ-ment has knowledge that suchmultiple currency transactionshave occurred, or

(B) The books, records, logs, infor-mation retained on magneticdisk, tape or other machine-readable media, or in anymanual system, and similar

documents and information,which the casino maintainspursuant to any law or regu-lation or within the normalcourse of its business, containinformation that such multiplecurrency transactions haveoccurred.

(3) The Postal Service shall file a report ofeach cash purchase of postal moneyorders in excess of $10,000. Multiplecash purchases totaling more than$10,000 shall be treated as a singletransaction if the Postal Service hasknowledge that they are by or on behalfof any person during any one day.

(4) A financial institution includes all ofits domestic branch offices for thepurpose of this paragraph’s reportingrequirements.

(b) Except as otherwise directed in writing bythe Assistant Secretary (Enforcement) or theCommissioner of Internal Revenue:(1) This section shall not require reports:

(i) Of transactions with FederalReserve Banks or Federal HomeLoan banks;

(ii) Of transactions between domesticbanks; or

(iii) By nonbank financial institutionsof transactions with commercialbanks (however, commercial banksmust report such transactions withnonbank financial institutions).

(2) A bank may exempt from the reportingrequirement of paragraph (aa) of thissection the following:

(i) Deposits or withdrawals of cur-rency from an existing account byan established depositor who is aUnited States resident and operatesa retail type of business in theUnited States. For the purpose ofthis subsection, a retail type ofbusiness is a business primarilyengaged in providing goods toultimate consumers and for whichthe business is paid in substantialportions by currency, except thatdealerships which buy or sell motorvehicles, vessels, or aircraft are notincluded and their transactions maynot be exempted from the reportingrequirements of this section.



(ii) Deposits or withdrawals of cur-rency from an existing account byan established depositor who is aUnited States resident and operatesa sports arena, race track, amuse-ment park, bar, restaurant, hotel,check cashing service licensed bystate or local governments, vend-ing machine company, theater, reg-ularly scheduled passenger carrieror any public utility.

(iii) Deposits or withdrawals, exchangesof currency or other payments andtransfers by local or state govern-ments, or the United States or anyof its agencies or instrumentalities.

(iv) Withdrawals for payroll purposesfrom an existing account by anestablished depositor who is aUnited States resident and operatesa firm that regularly withdrawsmore than $10,000 in order to payits employees in currency.

(c) In each instance the transactions exemptedunder paragraph (b) of this section must bein amounts which the bank may reasonablyconclude do not exceed amounts commen-surate with the customary conduct of thelawful, domestic business of that customer,or in the case of transactions with a localor state govenment or the United States orany of its agencies or instrumentalities, inamounts which are customary and commen-surate with the authorized activities of theagency or instrumentality. This section doesnot permit a bank to exempt its transactionswith nonbank financial institutions (exceptfor check cashing services licensed by stateor local governments and the United StatesPostal Service) nor will additional exemp-tion authority be granted for such transac-tion (except transactions by other checkcashers).

(d) After October 27, 1986, a bank may notplace any customer on its exempt list with-out first preparing a written statement, signedby the customer, describing the customaryconduct of the lawful domestic business ofthat customer and a detailed statement ofreasons why such person is qualified for anexemption. The statement shall include thename, address, nature of business, taxpayeridentification number, and account numberof the customer being exempted. The signa-ture, including the title and position of the

person signing, will attest to the accuracyof the information concerning the name,address, nature of business, and tax identi-fication number of the customer. Immedi-ately above the signature line, the followingstatement shall appear:

‘‘The information contained above is trueand correct to the best of my knowledgeand belief. I understand that this informa-tion will be read and relied upon by theGovernment.’’

The bank shall indicate in this statementwhether the exemption covers withdrawals,deposits, or both, as well as the dollar limitof the exemption for both deposits andwithdrawals. The bank also shall indicatewhether the exemption is limited to certaintypes of deposits and withdrawals (e.g.,withdrawals for payroll purposes). In eachinstance, the exempted transactions must bein amounts that the bank may reasonablyconclude do not exceed amounts commen-surate with the customary conduct of thelawful domestic business of that customer.The bank is responsible for independentlyverifying the activity of the account anddetermining applicable dollar limits forexempted deposits or withdrawals. The bankmust retain each statement that it preparespursuant to this subparagraph as long as thecustomer is on the exempt list, and for aperiod of five years following removal ofthe customer from the bank’s exempt list.

(e) A bank may apply to the Commissioner ofInternal Revenue for additional authority togrant an exemption to the reporting require-ment, not otherwise permitted under para-graph (b) of this section, if the bank believesthat circumstances warrent such an exemp-tion. Such requests shall be addressed to:Chief, Currency and Banking ReportsBranch, Compliance Review Group, IRSData Center, Post Office Box 32063, Detroit,Michigan 48232, and must be accompaniedby a statement of the circumstances thatwarrant special exemption treatment and acopy of the statement signed by the cus-tomer required by paragraph (d) of thissection.

(f) A record of each exemption granted underthis section and the reason therefor must bekept in a centralized list. The record shallinclude the names and addresses of all banksreferred to in paragraph (b)(1)(ii) of thissection, as well as the name, address, busi-



ness, taxpayer identification number andaccount number of each depositor that hasengaged in currency transactions which havenot been reported because of the exemptionprovided in paragraph (b)(2) of this section.The record concerning the group of deposi-tors exempted under the provisions ofparagraph (b)(2) of this section shall alsoindicate whether the exemption covers with-drawals, deposits, or both, as well as thedollar limit of the exemption.

(g) Upon the request of the Assistant Secretary(Enforcement) or the Commissioner ofInternal Revenue, a bank shall provide areport containing the list of the bank’scustomers whose transactions have beenexempted under this section and such relatedinformation as the Assistant Secretary orCommissioner shall require, including cop-ies of the statements required in paragraph(d) of this section. The report must beprovided within 15 days of the request. Anyexemption may be rescinded at the discre-tion of the requesting official, who mayrequire the bank to file reports required byparagraph (aa) of this section with respect tofuture transactions of any customer whosetransactions previously were exempted.

(h) No filing required by banks for transactionsby exempt persons occurring after April 30,1996.(1) Currency transactions of exempt per-

sons with banks occurring afterApril 30, 1996. Notwithstanding theprovisions of paragraph (a)(1) of thissection, no bank is required to file areport otherwise required by paragraph(a)(1) of this section, with respect toany transaction in currency between anexempt person and a bank that is con-ducted after April 30, 1996.

(2) Exempt person. For purposes of thissection, an exempt person is:

(i) A bank, to the extent of such bank’sdomestic operations;

(ii) A department or agency of theUnited States, of any state, or ofany political subdivision of anystate;

(iii) Any entity established under thelaws of the United States, of anystate, or of any political subdivi-sion of any state, or under aninterstate compact between two ormore states, that exercises govern-

mental authority on behalf of theUnited States or any such state orpolitical subdivision;

(iv) Any corporation whose commonstock is listed on the New YorkStock Exchange or the AmericanStock Exchange (except stock listedon the Emerging Company Mar-ketplace of the American StockExchange) or whose common stockhas been designated as a NasdaqNational Market Security listed onthe Nasdaq Stock Market (exceptstock listed under the separate‘‘Nasdaq Small-Cap Issues’’ head-ing); and

(v) Any subsidiary of any corporationdescribed in paragraph (h)(2)(iv) ofthis section whose federal incometax return is filed as part of aconsolidated federal income taxreturn with such corporation, pur-suant to section 1501 of the Inter-nal Revenue Code and the regula-tions promulgated thereunder, forthe calendar year 1995 or for itslast fiscal year ending beforeApril 15, 1996.

(3) Designation of exempt persons.(i) A bank must designate each exempt

person with whom it engagesin transactions in currency, on orbefore the later of August 15,1996,1 and the date 30 days follow-ing the first transaction in currencybetween such bank and such exemptperson that occurs after April 30,1996.

(ii) Designation of an exempt personshall be made by a single filing ofInternal Revenue Service Form4789, in which line 36 is marked‘‘Designation of Exempt Person’’and items 2–14 (Part I, Section A)and items 37–49 (Part III) are com-pleted. The designation must bemade separately by each bank thattreats the person in question as anexempt person. (For availability,see 26 C.F.R. 601.602.)

(iii) This designation requirementapplies whether or not the particu-

1. Rescinded.



lar exempt person to be designatedhas previously been treated asexempt from the reporting require-ments of paragraph (a) of this sec-tion under the rules contained inparagraph (b) or (e) of this section.

(4) Operating rules for designating exemptpersons.

(i) Subject to the specific rules of thisparagraph (h), a bank must takesuch steps to assure itself that aperson is an exempt person (withinthe meaning of applicable provi-sions of paragraph (h)(2) of thissection) that a reasonable and pru-dent bank would take to protectitself from loan or other fraud orloss based on misidentification of aperson’s status.

(ii) A bank may treat a person as agovernmental department, agency,or entity if the name of such personreasonably indicates that it isdescribed in paragraph (h)(2)(ii) or(h)(2)(iii) of this section, or if suchperson is known generally in thecommunity to be a State, the Dis-trict of Columbia, a tribal govern-ment, a Territory or Insular Posses-sion of the United States, or apolitical subdivision or a wholly-owned agency or instrumentalityof any of the foregoing. An entitygenerally exercises governmentalauthority on behalf of the UnitedStates, a State, or a political subdi-vision, for purposes of paragraph(h)(2)(iii) of this section, only ifits authorities include one or moreof the powers to tax, to exercisethe authority of eminent domain,or to exercise police powers withrespect to matters within itsjurisdiction.

(iii) In determining whether a person isdescribed in paragraph (h)(2)(iv)of this section, a bank may rely onany New York Stock Exchange,American Stock Exchange, orNasdaq Stock Market listing pub-lished in a newspaper of generalcirculation and on any commonlyaccepted or published stock sym-bol guide.

(iv) In determining whether a person isdescribed in paragraph (h)(2)(v) ofthis section, a bank may rely uponany reasonably authenticated cor-porate officer’s certificate or anyreasonably authenticated photo-copy of Internal Revenue ServiceForm 851 (Affiliation Schedule) orthe equivalent thereof for theappropriate tax year.

(5) Limitation on exemption. A transactioncarried out by an exempt person as anagent for another person who is thebeneficial owner of the funds that arethe subject of a transaction in currencyis not subject to the exemption fromreporting contained in paragraph (h)(1)of this section.

(6) Effect of exemption; limitation onliability.

(i) FinCEN may in the future deter-mine by amendment to this partthat the exemption contained inthis paragraph (h) shall be the onlybasis for exempting personsdescribed in paragraph (h)(2) ofthis section from the reporting re-quirements of paragraph (a) of thissection.

(ii) No bank shall be subject to penaltyunder this part for failure to file areport required by paragraph (a) ofthis section with respect to a cur-rency transaction by an exemptperson with respect to which therequirements of this paragraph (h)have been satisfied, unless the bank:

(iii) (A) Knowingly files false orincomplete information withrespect to the transaction orthe customer engaging in thetransaction; or

(B) Has reason to believe at thetime the exemption is grantedthat the customer does notmeet the criteria establishedby this paragraph (h) for treat-ment of the transactor as anexempt person or that thetransaction is not a transactionof the exempt person.

(iv) A bank that files a report withrespect to a currency transaction byan exempt person rather than treat-ing such person as exempt shall



remain subject with respect to eachsuch report to the rules for filingreports, and the penalties for filingfalse or incomplete reports, that areapplicable to reporting of transac-tions in currency by persons otherthan exempt persons. A bank thatcontinues for the period permittedby paragraph (h)(6)(i) of this sec-tion to treat a person described inparagraph (h)(2) of this section asexempt from the reporting require-ments of paragraph (aa) of thissection on a basis other than asprovided in this paragraph (h) shallremain subject in full to the rulesgoverning an exemption on suchother basis and to the penalties forfailing to comply with the rulesgoverning such other exemption.

(7) Obligation to file suspicious activityreports, etc. Nothing in this paragraph(h) relieves a bank of the obligation, oralters in any way such bank’s obliga-tion, to file a report required by §103.21with respect to any transaction, includ-ing, without limitation, any transactionin currency, or relieves a bank of anyother reporting or recordkeeping obliga-tion imposed by this part (except theobligation to report transactions in cur-rency pursuant to paragraph (a) of thissection to the extent provided in thisparagraph (h)).

(8) Revocation. The status of any person asan exempt person under this paragraph(h) may be revoked by FinCEN bywritten notice, which may be providedby publication in the Federal Register inappropriate situations, on such terms asare specified in such notice. In addition,and without any action on the part of theTreasury Department:(i) The status of a corporation as an

exempt person pursuant to para-graph (h)(2)(iv) of this sectionceases once such corporation ceasesto be listed on the applicable stockexchange; and

(ii) The status of a subsidiary as anexempt person under paragraph(h)(2)(v) of this section ceases oncesuch subsidiary ceases to be includedin a consolidated federal income tax

return of a person described in para-graph (h)(2)(iv) of this section.

(Approved by the Office of Management and Budget undercontrol number 1505-0063)

HISTORY:[52 FR 11442, Apr. 8, 1987, as amended at 53 FR 777, Jan.13, 1988; 53 FR 4138, Feb. 12, 1988; 58 FR 13547, Mar. 12,1993; 58 FR 45263, Aug. 27, 1993; 59 FR 9088, Feb. 25,1994; 59 FR 61662, Dec. 1, 1994; 61 FR 18204, 18209,April 24, 1996]


NOTES:[EFFECTIVE DATE NOTE: 61 FR 18204, 18209, April 24,1996, which added a new sentence immediately following thefirst sentence in paragraph (aa)(1), and added a new paragraph(h), became effective May 1, 1996.]NOTES APPLICABLE TO ENTIRE TITLE:EDITORIAL NOTE: Other regulations issued by Departmentof the Treasury appear in Title 12, Chapter I; Title 19, Chap-ter I; Title 26, Chapter I; Title 27, Chapter I; Title 31, Chap-ters II, IV, V, VI, and VII, and Title 48, Chapter 10. CROSSREFERENCE: General Accounting Office: See 4 C.F.R.Chapter I.




31 C.F.R. 103.23

§103.23 Reports of transportation ofcurrency or monetary instruments.

(a) Each person who physically transports,mails, or ships, or causes to be physicallytransported, mailed, or shipped, or attemptsto physically transport, mail or ship, orattempts to cause to be physically trans-ported, mailed or shipped, currency or othermonetary instruments in an aggregate amountexceeding $10,000 at one time from theUnited States to any place outside the UnitedStates, or into the United States from anyplace outside the United States, shall make areport thereof. A person is deemed to havecaused such transportation, mailing or ship-ping when he aids, abets, counsels, com-



mands, procures, or requests it to be done bya financial institution or any other person.

(b) Each person who receives in the U.S. cur-rency or other monetary instruments in anaggregate amount exceeding $10,000 atone time which have been transported,mailed, or shipped to such person from anyplace outside the United States with respectto which a report has not been filed underparagraph (a) of this section, whether ornot required to be filed thereunder, shallmake a report thereof, stating the amount,the date of receipt, the form of monetaryinstruments, and the person from whomreceived.

(c) This section shall not require reports by:(1) A Federal Reserve;(2) A bank, a foreign bank, or a broker or

dealer in securities, in respect to cur-rency or other monetary instrumentsmailed or shipped through the postalservice or by common carrier;

(3) A commercial bank or trust companyorganized under the laws of any State orof the United States with respect tooverland shipments of currency or mone-tary instruments shipped to or receivedfrom an established customer maintain-ing a deposit relationship with the bank,in amounts which the bank may reason-ably conclude do not exceed amountscommensurate with the customary con-duct of the business, industry or profes-sion of the customer concerned;

(4) A person who is not a citizen or resi-dent of the United States in respectto currency or other monetary instru-ments mailed or shipped from abroad toa bank or broker or dealer in securitiesthrough the postal service or by com-mon carrier;

(5) A common carrier of passengers inrespect to currency or other monetaryinstruments in the possession of itspassengers;

(6) A common carrier of goods in respectto shipments of currency or monetaryinstruments not declared to be such bythe shipper;

(7) A travelers’ check issuer or its agent inrespect to the transportation of travel-ers’ checks prior to their delivery toselling agents for eventual sale to thepublic;

(8) By a person with respect to a restric-tively endorsed traveler’s check that isin the collection and reconciliation pro-cess after the traveler’s check has beennegotiated,

(9) Nor by a person engaged as a businessin the transportation of currency, mone-tary instruments and other commercialpapers with respect to the transportationof currency or other monetary instru-ments overland between establishedoffices of banks or brokers or dealers insecurities and foreign persons.

(d) A transfer of funds through normal bankingprocedures which does not involve the physi-cal transportation of currency or monetaryinstruments is not required to be reported bythis section. This section does not requirethat more than one report be filed coveringa particular transportation, mailing or ship-ping of currency or other monetary instru-ments with respect to which a complete andtruthful report has been filed by a person.However, no person required by paragraph(a) or (b) of this section to file a report shallbe excused from liability for failure to do soif, in fact, a complete and truthful report hasnot been filed.


HISTORY:[37 FR 26517, Dec. 13, 1972, as amended at 50 FR 18479,May 1, 1985; 50 FR 42693, Oct. 22, 1985; 53 FR 4138,Feb. 12, 1988; 54 FR 28418, July 6, 1989]

AUTHORITY:AUTHORITY NOTE APPLICABLE TO ENTIRE PART:12 U.S.C. 1829b and 1951–1959; 31 U.S.C. 5311–5330.

NOTES:NOTES APPLICABLE TO ENTIRE TITLE:EDITORIAL NOTE: Other regulations issued by Departmentof the Treasury appear in Title 12, Chapter I; Title 19, Chap-ter I; Title 26, Chapter I; Title 27, Chapter I; Title 31, Chap-ters II, IV, V, VI, and VII, and Title 48, Chapter 10. CROSSREFERENCE: General Accounting Office: See 4 C.F.R.Chapter I.









SUBPART B—Reports Requiredto be Made

31 C.F.R. 103.24

§103.24 Reports of foreign financialaccounts.

(a) Each person subject to the jurisdiction of theUnited States (except a foreign subsidiary ofa U.S. person) having a financial interest in,or signature or other authority over, a bank,securities or other financial account in aforeign country shall report such relation-ship to the Commissioner of the InternalRevenue for each year in which such rela-tionship exists, and shall provide such infor-mation as shall be specified in a reportingform prescribed by the Secretary to be filedby such persons. Persons having a financialinterest in 25 or more foreign financialaccounts need only note that fact on theform. Such persons will be required toprovide detailed information concerning eachaccount when so requested by the Secretaryor his delegate.

HISTORY:[42 FR 63774, Dec. 20, 1977, as amended at 52 FR 11443,Apr. 8, 1987; 52 FR 12641, Apr. 17, 1987]






31 C.F.R. 103.25

§103.25 Reports of transactions withforeign financial agencies.

(a) Promulgation of reporting requirements.TheSecretary, when he deems appropriate, maypromulgate regulations requiring specifiedfinancial institutions to file reports of certaintransactions with designated foreign finan-cial agencies. If any such regulation isissued as a final rule without notice andopportunity for public comment, then afinding of good cause for dispensing withnotice and comment in accordance with5 U.S.C. 553(b) will be included in theregulation. If any such regulation is notpublished in the Federal Register, then anyfinancial institution subject to the regulationwill be named and personally served orotherwise given actual notice in accordancewith 5 U.S.C. 553(b). If a financial institu-tion is given notice of a reporting require-ment under this section by means other thanpublication in the FEDERAL REGISTER,the Secretary may prohibit disclosure of theexistence or provisions of that reportingrequirement to the designated foreign finan-cial agency or agencies and to any otherparty.

(b) Information subject to reporting require-ments.A regulation promulgated pursuantto paragraph (a) of this section shall desig-nate one or more of the following categoriesof information to be reported:(1) Checks or drafts, including traveler’s

checks, received by respondent finan-cial institution for collection or creditto the account of a foreign financialagency, sent by respondent financialinstitution to a foreign country for col-lection or payment, drawn by respon-dent financial institution on a foreignfinancial agency, drawn by a foreignfinancial agency on respondent financialinstitution—including the followinginformation.



(i) Name of maker or drawer;(ii) Name of drawee or drawee finan-

cial institution;(iii) Name of payee;(iv) Date and amount of instrument;(iv) Names of all endorsers.

(2) Transmittal orders received by a respon-dent financial institution from a foreignfinancial agency or sent by respondentfinancial institution to a foreign finan-cial agency, including all informationmaintained by that institution pursuantto §103.33.

(3) Loans made by respondent financialinstitution to or through a foreign finan-cial agency—including the followinginformation:

(i) Name of borrower;(ii) Name of person acting for bor-

rower;(iii) Date and amount of loan;(iv) Terms of repayment;(v) Name of guarantor;

(vi) Rate of interest;(vii) Method of disbursing proceeds;

(viii) Collateral for loan.(4) Commercial paper received or shipped

by the respondent financial institution—including the following information:

(i) Name of maker;(ii) Date and amount of paper;

(iii) Due date;(iv) Certificate number;(v) Amount of transaction.

(5) Stocks received or shipped by respon-dent financial institution—including thefollowing information:

(i) Name of corporation;(ii) Type of stock;(iii) Certificate number;(iv) Number of shares;(v) Date of certificate;

(vi) Name of registered holder;(vii) Amount of transaction.

(6) Bonds received or shipped by respon-dent financial institution—including thefollowing information:

(i) Name of issuer;(ii) Bond number;

(iii) Type of bond series;(iv) Date issued;(v) Due date;

(vi) Rate of interest;

(vii) Amount of transaction;(viii) Name of registered holder.

(7) Certificates of deposit received or shippedby respondent financial institution—including the following information:

(i) Name and address of issuer;(ii) Date issued;

(iii) Dollar amount;(iv) Name of registered holder;(v) Due date;

(vi) Rate of interest;(vii) Certificate number;

(viii) Name and address of issuingagent.

(c) Scope of reports.In issuing regulations asprovided in paragraph (a) of this section, theSecretary will prescribe:(1) A reasonable classification of financial

institutions subject to or exempt from areporting requirement;

(2) A foreign country to which a reportingrequirement applies if the Secretarydecides that applying the requirement toall foreign countries is unnecessary orundesirable;

(3) The magnitude of transactions subjectto a reporting requirement; and

(4) The kind of transaction subject to orexempt from a reporting requirement.

(d) Form of reports.Regulations issued pursu-ant to paragraph (a) of this section mayprescribe the manner in which the informa-tion is to be reported. However, the Secre-tary may authorize a designated financialinstitution to report in a different manner ifthe institution demonstrates to the Secretarythat the form of the required report isunnecessarily burdensome on the institutionas prescribed; that a report in a differentform will provide all the information theSecretary deems necessary; and that submis-sion of the information in a different mannerwill not unduly hinder the effective admin-istration of this part.

(e) Limitations.(1) In issuing regulations under paragraph

(a) of this section, the Secretary shallconsider the need to avoid impeding orcontrolling the export or import of mone-tary instruments and the need to avoidburdening unreasonably a person mak-ing a transaction with a foreign financialagency.



(2) The Secretary shall not issue a regula-tion under paragraph (a) of this sectionfor the purpose of obtaining individu-ally identifiable account informationconcerning a customer, as defined bythe Right to Financial Privacy Act (12U.S.C. 3401 et seq.), where that cus-tomer is already the subject of an ongo-ing investigation for possible violationof the Currency and Foreign Transac-tions Reporting Act, or is known by theSecretary to be the subject of an inves-tigation for possible violation of anyother Federal law.

(3) The Secretary may issue a regulationpursuant to paragraph (a) of this sectionrequiring a financial institution to reporttransactions completed prior to thedate it received notice of the reportingrequirement. However, with respect tocompleted transactions, a financial insti-tution may be required to provide infor-mation only from records required to bemaintained pursuant to Subpart C of thispart, or any other provision of state orFederal law, or otherwise maintained inthe regular course of business.


HISTORY:[50 FR 27824, July 8, 1985, as amended at 53 FR 10073,March 29, 1988; 60 FR 229, Jan. 3, 1995; 60 FR 44144,Aug. 24, 1995; 61 FR 14382, April 1, 1996]






31 C.F.R. 103.26

§103.26 Reports of certain domesticcoin and currency transactions.

(a) If the Secretary of the Treasury finds, uponthe Secretary’s own initiative or at therequest of an appropriate Federal or Statelaw enforcement official, that reasonablegrounds exist for concluding that additionalrecordkeeping and/or reporting require-ments are necessary to carry out the pur-poses of this part and to prevent personsfrom evading the reporting/recordkeepingrequirements of this part, the Secretary mayissue an order requiring any domestic finan-cial institution or group of domestic finan-cial institutions in a geographic area and anyother person participating in the type oftransaction to file a report in the manner andto the extent specified in such order. Theorder shall contain such information as theSecretary may describe concerning anytransaction in which such financial institu-tion is involved for the payment, receipt, ortransfer of United States coins or currency(or such other monetary instruments as theSecretary may describe in such order) thetotal amounts or denominations of which areequal to or greater than an amount which theSecretary may prescribe.

(b) An order issued under paragraph (a) of thissection shall be directed to the Chief Execu-tive Officer of the financial institution andshall designate one or more of the followingcategories of information to be reported:Each deposit, withdrawal, exchange ofcurrency or other payment or transfer, by,through or to such financial institution speci-fied in the order, which involves all or anyclass of transactions in currency and/ormonetary instruments equal to or exceedingan amount to be specified in the order.

(c) In issuing an order under paragraph (a) ofthis section, the Secretary will prescribe:

(1) The dollar amount of transactions sub-ject to the reporting requirement in theorder;

(2) The type of transaction or transactionssubject to or exempt from a reportingrequirement in the order;



(3) The appropriate form for reporting thetransactions required in the order;

(4) The address to which reports required inthe order are to be sent or from whichthey will be picked up;

(5) The starting and ending dates by whichsuch transactions specified in the orderare to be reported;

(6) The name of a Treasury official to becontacted for any additional informationor questions;

(7) The amount of time the reports andrecords of reports generated in responseto the order will have to be retained bythe financial institution; and

(8) Any other information deemed neces-sary to carry out the purposes of theorder.

(d) (1) No order issued pursuant to paragraph(a) of this section shall prescribe areporting period of more than 60 daysunless renewed pursuant to the require-ments of paragraph (a).

(2) Any revisions to an order issued underthis section will not be effective untilmade in writing by the Secretary.

(3) Unless otherwise specified in the order,a bank receiving an order under thissection may continue to use the exemp-tions granted under §103.22 of this partprior to the receipt of the order, but maynot grant additional exemptions.

(4) For purposes of this section, the term‘‘geographic area’’ means any area inone or more States of the United States,the District of Columbia, the Common-wealth of Puerto Rico, the United StatesVirgin Islands, Guam, the Common-wealth of the Northern Mariana Islands,American Samoa, the Trust Territory ofthe Pacific Islands, the territories andpossessions of the United States, and/orpolitical subdivision or subdivisionsthereof, as specified in an order issuedpursuant to paragraph (a) of this section.


HISTORY:[54 FR 33679, Aug. 16, 1989]









SUBPART B—Reports to be Made

31 C.F.R. 103.27

§103.27 Filing of reports.

(a) (1) A report required by §103.22(a) shall befiled by the financial institution within15 days following the day on which thereportable transaction occurred.

(2) A report required by §103.22(g) shallbe filed by the bank within 15 days afterreceiving a request for the report.

(3) A copy of each report filed pursuant to§103.22 shall be retained by the finan-cial institution for a period of five yearsfrom the date of the report.

(4) All reports required to be filed by§103.22 shall be filed with the Com-missioner of Internal Revenue, unlessotherwise specified.

(b) (1) A report required by §103.23(a) shall befiled at the time of entry into the UnitedStates or at the time of departure, mail-ing or shipping from the United States,unless otherwise specified by the Com-missioner of Customs.



(2) A report required by §103.23(b) shallbe filed within 15 days after receiptof the currency or other monetaryinstruments.

(3) All reports required by §103.23 shall befiled with the Customs officer in chargeat any port of entry or departure, or asotherwise specified by the Commis-sioner of Customs. Reports required by§103.23(a) for currency or other mone-tary instruments not physically accom-panying a person entering or departingfrom the United States, may be filedby mail on or before the date of entry,departure, mailing or shipping. Allreports required by §103.23(b) may alsobe filed by mail. Reports filed by mailshall be addressed to the Commissionerof Customs, Attention: Currency Trans-portation Reports, Washington, DC20229.

(c) Reports required to be filed by §103.24shall be filed with the Commissioner ofInternal Revenue on or before June 30 ofeach calendar year with respect to foreignfinancial acccounts exceeding $10,000maintained during the previous calendaryear.

(d) Reports required by §103.22, §103.23 or§103.24 shall be filed on forms prescribedby the Secretary. All information called forin such forms shall be furnished.

(e) Forms to be used in making the reportsrequired by §§103.22 and 103.24 may beobtained from the Internal Revenue Service.Forms to be used in making the reportsrequired by §103.23 may be obtained fromthe U.S. Customs Service.


HISTORY:[52 FR 11443, Apr. 8, 1987; 52 FR 12641, Apr. 17, 1987, asamended at 53 FR 4138, Feb. 12, 1988. Redesignated at 54 FR33678, Aug. 16, 1989]






31 C.F.R. 103.28

§103.28 Identification required.

Before concluding any transaction with respectto which a report is required under §103.22, afinancial institution shall verify and record thename and address of the individual presentinga transaction, as well as record the identity,account number, and the social security ortaxpayer identification number, if any, of anyperson or entity on whose behalf such trans-action is to be effected. Verification of theidentity of an individual who indicates that heor she is an alien or is not a resident of theUnited States must be made by passport, alienidentification card, or other official documentevidencing nationality or residence (e.g., a Pro-vincial driver’s license with indication ofhome address). Verification of identity in anyother case shall be made by examination ofa document, other than a bank signature card,that is normally acceptable within the bankingcommunity as a means of identification whencashing checks for nondepositors (e.g., a driverslicense or credit card). Where a person is anonresident alien, the casino shall also recordthe person’s passport number or a descriptionof some other government document usedto verify his identity. A bank signature cardmay be relied upon only if it was issued afterdocuments establishing the identity of theindividual were examined and notation of thespecific information was made on the signa-ture card. In each instance, the specific identi-fying information (i.e., the account number ofthe credit card, the driver’s license number,etc.) used in verifying the identity of the cus-tomer shall be recorded on the report, andthe mere notation of ‘‘known customer’’ or‘‘bank signature card on file’’ on the report isprohibited.




HISTORY:[52 FR 11443, Apr. 8, 1987; 52 FR 12641, Apr. 17, 1987, asamended at 54 FR 3027, Jan. 23, 1989. Redesignated at 54 FR33678, Aug. 16, 1989]





SUBPART B—Reports to be Made

31 C.F.R. 103.29

§103.29 Purchases of bank checksand drafts, cashier’s checks, moneyorders and traveler’s checks.

(a) No financial institution may issue or sell abank check or draft, cashier’s check, moneyorder or traveler’s check for $3,000 or morein currency unless it maintains records ofthe following information, which must beobtained for each issuance or sale of one ormore of these instruments to any individualpurchaser which involves currency inamounts of $3,000–$10,000 inclusive:(1) If the purchaser has a deposit account

with the financial institution:(i) (A) The name of the purchaser;

(B) The date of purchase;(C) The type(s) of instrument(s)

purchased;(D) The serial number(s) of each of

the instrument(s) purchased;and

(E) The amount in dollars of eachof the instrument(s) purchased.

(ii) In addition, the financial institutionmust verify that the individual is adeposit accountholder or must verifythe individual’s identity. Verifica-tion may be either through a signa-

ture card or other file or record atthe financial institution provided thedeposit accountholder’s name andaddress were verified previously andthat information was recorded onthe signature card or other file orrecord; or by examination of a docu-ment which is normally acceptablewithin the banking community as ameans of identification when cash-ing checks for nondepositors andwhich contains the name andaddress of the purchaser. If thedeposit accountholder’s identity hasnot been verified previously, thefinancial institution shall verify thedeposit accountholder’s identity byexamination of a document whichis normally acceptable within thebanking community as a means ofidentification when cashing checksfor nondepositors and which con-tains the name and address of thepurchaser, and shall record the spe-cific identifying information (e.g.,State of issuance and number ofdriver’s license).

(2) If the purchaser does not have a depositaccount with the financial institution:(i) (A) The name and address of the

purchaser;(B) The social security number of

the purchaser, or if the pur-chaser is an alien and does nothave a social security number,the alien identification number;

(C) The date of birth of the pur-chaser;

(D) The date of purchase;(E) The type(s) of instrument(s)

purchased;(F) The serial number(s) of the

instrument(s) purchased; and(G) The amount in dollars of each

of the instrument(s) purchased.(ii) In addition, the financial institution

shall verify the purchaser’s nameand address by examination of adocument which is normally accept-able within the banking communityas a means of identification whencashing checks for nondepositorsand which contains the name andaddress of the purchaser, and shallrecord the specific identifying infor-



mation (e.g., State of issuance andnumber of driver’s license).

(b) Contemporaneous purchases of the same ordifferent types of instruments totaling $3,000or more shall be treated as one purchase.Multiple purchases during one business daytotaling $3,000 or more shall be treated asone purchase if an individual employee,director, officer, or partner of the financialinstitution has knowledge that these pur-chases have occurred.

(c) Records required to be kept shall be retainedby the financial institution for a period offive years and shall be made available to theSecretary upon request at any time.

HISTORY:[55 FR 20143, May 15, 1990; 59 FR 52252, Oct. 17, 1994]


NOTES:[EFFECTIVE DATE NOTE: 59 FR 52252, Oct. 17, 1994,which revised this section, became effective Oct. 17, 1994.]NOTES APPLICABLE TO ENTIRE TITLE:EDITORIAL NOTE: Other regulations issued by Departmentof the Treasury appear in Title 12, Chapter I; Title 19, Chap-ter I; Title 26, Chapter I; Title 27, Chapter I; Title 31, Chap-ters II, IV, V, VI, and VII, and Title 48, Chapter 10. CROSSREFERENCE: General Accounting Office: See 4 C.F.R.Chapter I.



SUBPART C—Records Requiredto be Maintained

31 C.F.R. 103.31

§103.31 Determination by theSecretary.

The Secretary hereby determines that the recordsrequired to be kept by this subpart have a highdegree of usefulness in criminal, tax, or regula-tory investigations or proceedings.

HISTORY:37 FR 6912, Apr. 5, 1972.






31 C.F.R. 103.32

§103.32 Records to be made andretained by persons having financialinterests in foreign financial accounts.

Records of accounts required by §103.24 tobe reported to the Commissioner of InternalRevenue shall be retained by each person hav-ing a financial interest in or signature or otherauthority over any such account. Such recordsshall contain the name in which each suchaccount is maintained, the number or otherdesignation of such account, the name andaddress of the foreign bank or other personwith whom such account is maintained, thetype of such account, and the maximum valueof each such account during the reportingperiod. Such records shall be retained for aperiod of 5 years and shall be kept at alltimes available for inspection as authorizedby law. In the computation of the period of5 years, there shall be disregarded anyperiod beginning with a date on which thetaxpayer is indicted or information instituted onaccount of the filing of a false or fraudulentFederal income tax return or failing to file aFederal income tax return, and ending with thedate on which final disposition is made of thecriminal proceeding.

HISTORY:[37 FR 6912, Apr. 5, 1972, as amended at 52 FR 11444,Apr. 8, 1987]




NOTES:NOTES APPLICABLE TO ENTIRE TITLE:EDITORIAL NOTE: Other regulations issued by Departmentof the Treasury appear in Title 12, Chapter I; Title 19, Chap-ter I; Title 26, Chapter I; Title 27, Chapter I; Title 31, Chap-ters II, IV, V, VI, and VII, and Title 48, Chapter 10. CROSSREFERENCE: General Accounting Office: See 4 C.F.R.

Chapter I.NOTES APPLICABLE TO ENTIRE CHAPTER:ABBREVIATION: The following abbreviation is used in thischapter: C.P.D. = Commissioner of the Public Debt.



31 C.F.R. 103.33

§103.33 Records to be made andretained by financial institutions.

Each financial institution shall retain either theoriginal or a microfilm or other copy or repro-duction of each of the following:(a) A record of each extension of credit in an

amount in excess of $10,000, except anextension of credit secured by an interest inreal property, which record shall contain thename and address of the person to whom theextension of credit is made, the amountthereof, the nature or purpose thereof, andthe date thereof;

(b) A record of each advice, request, or instruc-tion received or given regarding any trans-action resulting (or intended to result andlater cancelled if such a record is normallymade) in the transfer of currency or othermonetary instruments, funds, checks, invest-ment securities, or credit, of more than$10,000 to or from any person, account, orplace outside the United States.

(c) A record of each advice, request, or instruc-tion given to another financial institutionor other person located within or withoutthe United States, regarding a transactionintended to result in the transfer of funds, orof currency, other monetary instruments,checks, investment securities, or credit, ofmore than $10,000 to a person, account orplace outside the United States.

(d) A record of such information for such periodof time as the Secretary may require in anorder issued under §103.26(a), not to exceedfive years.


(e) Banks.Each agent, agency, branch, or officelocated within the United States of a bankis subject to the requirements of this para-graph (e) with respect to a funds transfer inthe amount of $3,000 or more:(1) Recordkeeping requirements.

(i) For each payment order that itaccepts as an originator’s bank, abank shall obtain and retain eitherthe original or a microfilm, othercopy, or electronic record of thefollowing information relating tothe payment order:(A) The name and address of the

originator;(B) The amount of the payment

order;(C) The execution date of the pay-

ment order;(D) Any payment instructions

received from the originatorwith the payment order;

(E) The identity of the beneficia-ry’s bank; and

(F) As many of the followingitems as are received with thepayment order:2

(1) The name and address ofthe beneficiary;

(2) The account number ofthe beneficiary; and

(3) Any other specific identi-fier of the beneficiary.

(ii) For each payment order that itaccepts as an intermediary bank, abank shall retain either the originalor a microfilm, other copy, or elec-tronic record of the payment order.

(iii) For each payment order that itaccepts as a beneficiary’s bank, abank shall retain either the originalor a microfilm, other copy, or elec-tronic record of the payment order.

(2) Originators other than established cus-tomers.In the case of a payment orderfrom an originator that is not an estab-

2. For funds transfers effected through the Federal Reserve’sFedwire funds transfer system, only one of the items isrequired to be retained, if received with the payment order,until such time as the bank that sends the order to the FederalReserve Bank completes its conversion to the expandedFedwire message format.



lished customer, in addition to obtainingand retaining the information requiredin paragraph (e)(1)(i) of this section:

(i) If the payment order is made inperson, prior to acceptance theoriginator’s bank shall verify theidentity of the person placing thepayment order. If it accepts thepayment order, the originator’sbank shall obtain and retain arecord of the name and address, thetype of identification reviewed, thenumber of the identification docu-ment (e.g., driver’s license), as wellas a record of the person’s taxpayeridentification number (e.g., socialsecurity or employer identificationnumber) or, if none, alien identifi-cation number or passport numberand country of issuance, or a nota-tion in the record of the lackthereof. If the originator’s bank hasknowledge that the person placingthe payment order is not the origi-nator, the originator’s bank shallobtain and retain a record of theoriginator’s taxpayer identificationnumber (e.g., social security oremployer identification number) or,if none, alien identification numberor passport number and country ofissuance, if known by the personplacing the order, or a notation inthe record of the lack thereof.

(ii) If the payment order accepted bythe originator’s bank is not made inperson, the originator’s bank shallobtain and retain a record of nameand address of the person placingthe payment order, as well as theperson’s taxpayer identificationnumber (e.g., social security oremployer identification number) or,if none, alien identification numberor passport number and country ofissuance, or a notation in the recordof the lack thereof, and a copy orrecord of the method of payment(e.g., check or credit card transac-tion) for the funds transfer. If theoriginator’s bank has knowledgethat the person placing the pay-ment order is not the originator, theoriginator’s bank shall obtain andretain a record of the originator’s

taxpayer identification number (e.g.,social security or employer identi-fication number) or, if none, alienidentification number or passportnumber and country of issuance, ifknown by the person placing theorder, or a notation in the record ofthe lack thereof.

(3) Beneficiaries other than established cus-tomers.For each payment order that itaccepts as a beneficiary’s bank for abeneficiary that is not an establishedcustomer, in addition to obtaining andretaining the information required inparagraph (e)(1)(iii) of this section:(i) if the proceeds are delivered in

person to the beneficiary or itsrepresentative or agent, the ben-eficiary’s bank shall verify the iden-tity of the person receiving the pro-ceeds and shall obtain and retain arecord of the name and address, thetype of identification reviewed, andthe number of the identificationdocument (e.g., driver’s license), aswell as a record of the person’staxpayer identification number (e.g.,social security or employer identi-ficati on number) or, if none, alienidentification number or passportnumber and country of issuance, ora notation in the record of the lackthereof. If the beneficiary’s bankhas knowledge that the person re-ceiving the proceeds is not the bene-ficiary, the beneficiary’s bank shallobtain and retain a record of thebeneficiary’s name and address, aswell as the beneficiary’s taxpayeridentification number (e.g., socialsecurity or employer identificationnumber) or, if none, alien identifi-cation number or passport numberand country of issuance, if knownby the person receiving the pro-ceeds, or a notation in the record ofthe lack thereof.

(ii) if the proceeds are delivered otherthan in person, the beneficiary’sbank shall retain a copy of thecheck or other instrument used toeffect payment, or the informationcontained thereon, as well as thename and address of the person towhich it was sent.



(4) Retrievability.The information that anoriginator’s bank must retain under para-graphs (e)(1)(i) and (e)(2) of this sectionshall be retrievable by the originator’sbank by reference to the name of theoriginator. If the originator is an estab-lished customer of the originator’s bankand has an account used for funds trans-fers, then the information also shall beretrievable by account number. Theinformation that a beneficiary’s bankmust retain under paragraphs (e)(1)(iii)and (e)(3) of this section shall be retriev-able by the beneficiary’s bank by refer-ence to the name of the beneficiary. Ifthe beneficiary is an established cus-tomer of the beneficiary’s bank and hasan account used for funds transfers, thenthe information also shall be retrievableby account number. This informationneed not be retained in any particularmanner, so long as the bank is able toretrieve the information required by thisparagraph, either by accessing fundstransfer records directly or through ref-erence to some other record maintainedby the bank.

(5) Verification. Where verification isrequired under paragraphs (e)(2) and(e)(3) of this section, a bank shall verifya person’s identity by examination ofa document (other than a bank signa-ture card), preferably one that containsthe person’s name, address, and photo-graph, that is normally acceptable byfinancial institutions as a means ofidentification when cashing checksfor persons other than establishedcustomers. Verification of the identityof an individual who indicates that heor she is an alien or is not a residentof the United States may be madeby passport, alien identification card,or other official document evidencingnationality or residence (e.g., a foreigndriver’s license with indication of homeaddress).

(6) Exceptions.The following funds trans-fers are not subject to the requirementsof this section:(i) Funds transfers where the origina-

tor and beneficiary are any of thefollowing:

(A) A bank;

(B) A wholly-owned domestic sub-sidiary of a bank chartered inthe United States;

(C) A broker or dealer in securi-ties;

(D) A wholly-owned domestic sub-sidiary of a broker or dealer insecurities;

(E) The United States;(F) A state or local government; or(G) A federal, state or local gov-

ernment agency or instrumen-tality; and

(ii) Funds transfers where both the origi-nator and the beneficiary are thesame person and the originator’sbank and the beneficiary’s bank arethe same bank.

(f) Nonbank financial institutions.Each agent,agency, branch, or office located within theUnited States of a financial institution otherthan a bank is subject to the requirements ofthis paragraph (f) with respect to a transmit-tal of funds in the amount of $3,000 ormore:(1) Recordkeeping requirements.

(i) For each transmittal order that itaccepts as a transmittor’s financialinstitution, a financial institutionshall obtain and retain either theoriginal or a microfilm, other copy,or electronic record of the follow-ing information relating to thetransmittal order:

(A) The name and address of thetransmittor;

(B) The amount of the transmittalorder;

(C) The execution date of the trans-mittal order;

(D) Any payment instructionsreceived from the transmittorwith the transmittal order;

(E) The identity of the recipient’sfinancial institution;

(F) As many of the following itemsas are received with the trans-mittal order:3

3. For transmittals of funds effected through the FederalReserve’s Fedwire funds transfer system by a domestic brokeror dealers in securities, only one of the items is required to beretained, if received with the transmittal order, until such timeas the bank that sends the order to the Federal Reserve Bankcompletes its conversion to the expanded Fedwire messageformat.



(1) The name and address ofthe recipient;

(2) The account number of therecipient; and

(3) Any other specific identi-fier of the recipient; and

(G) Any form relating to the trans-mittal of funds that is com-pleted or signed by the personplacing the transmittal order.

(ii) For each transmittal order that itaccepts as an intermediary finan-cial institution, a financial institu-tion shall retain either the originalor a microfilm, other copy, or elec-tronic record of the transmittalorder.

(iii) for each transmittal order that itaccepts as a recipient’s financialinstitution, a financial institutionshall retain either the original or amicrofilm, other copy, or electronicrecord of the transmittal order.

(2) Transmittors other than established cus-tomers.In the case of a transmittal orderfrom a transmittor that is not an estab-lished customer, in addition to obtainingand retaining the information requiredin paragraph (f)(1)(i) of this section:(i) If the transmittal order is made in

person, prior to acceptance the trans-mittor’s financial institution shallverify the identity of the personplacing the transmittal order. If itaccepts the transmittal order, thetransmittor’s financial institutionshall obtain and retain a record ofthe name and address, the type ofidentification reviewed, and thenumber of the identification docu-ment (e.g., driver’s license), as wellas a record of the person’s taxpayeridentification number (e.g., socialsecurity or employer identificationnumber) or, if none, alien identifi-cation number or passport numberand country of issuance, or a nota-tion in the record the lack thereof. Ifthe transmittor’s financial institu-tion has knowledge that the personplacing the transmittal order is notthe transmittor, the transmittor’sfinancial institution shall obtain andretain a record of the transmittor’staxpayer identification number (e.g.,

social security or employer identi-fication number) or, if none, alienidentification number or passportnumber and country of issuance, ifknown by the person placing theorder, or a notation in the record thelack thereof.

(ii) If the transmittal order accepted bythe transmittor’s financial institu-tion is not made in person, thetransmittor’s financial institutionshall obtain and retain a record ofthe name and address of the personplacing the transmittal order, as wellas the person’s taxpayer identifica-tion number (e.g., social security oremployer identification number) or,if none, alien identification numberor passport number and country ofissuance, or a notation in the recordof the lack thereof, and a copy orrecord of the method of payment(e.g., check or credit card transac-tion) for the transmittal of funds. Ifthe transmittor’s financial institu-tion has knowledge that the personplacing the transmittal order is notthe transmittor, the transmittor’sfinancial institution shall obtain andretain a record of the transmittor’staxpayer identification number (e.g.,social security or employer identi-fication number) or, if none, alienidentification number or passportnumber and country of issuance, ifknown by the person placing theorder, or a notation in the record thelack thereof.

(3) Recipients other than established cus-tomers.For each transmittal order that itaccepts as a recipient’s financial institu-tion for a recipient that is not an estab-lished customer, in addition to obtainingand retaining the information requiredin paragraph (f)(1)(iii) of this section:(i) If the proceeds are delivered in

person to the recipient or its repre-sentative or agent, the recipient’sfinancial institution shall verify theidentity of the person receiving theproceeds and shall obtain and retaina record of the name and address,the type of identification reviewed,and the number of the identificationdocument (e.g., driver’s license), as



well as a record of the person’staxpayer identification number (e.g.,social security or employer identi-fication number) or, if none, alienidentification number or passportnumber and country of issuance, ora notation in the record of the lackthereof. If the recipient’s financialinstitution has knowledge that theperson receiving the proceeds is notthe recipient, the recipient’s finan-cial institution shall obtain andretain a record of the recipient’sname and address, as well as therecipient’s taxpayer identificationnumber (e.g., social security oremployer identification number) or,if none, alien identification numberor passport number and country ofissuance, if known by the personreceiving the proceeds, or a nota-tion in the record of the lack thereof.

(ii) If the proceeds are delivered otherthan in person, the recipient’s finan-cial institution shall retain a copy ofthe check or other instrument usedto effect payment, or the informa-tion contained thereon, as well asthe name and address of the personto which it was sent.

(4) Retrievability. The information that atransmittor’s financial institution mustretain under paragraphs (f)(1)(i) and(f)(2) of this section shall be retrievableby the transmittor’s financial institutionby reference to the name of the trans-mittor. If the transmittor is an estab-lished customer of the transmittor’sfinancial institution and has an accountused for transmittals of funds, then theinformation also shall be retrievable byaccount number. The information that arecipient’s financial institution mustretain under paragraphs (f)(1)(iii) and(f)(3) of this section shall be retrievableby the recipient’s financial institution byreference to the name of the recipient. Ifthe recipient is an established customerof the recipient’s financial institutionand has an account used for transmittalsof funds, then the information also shallbe retrievable by account number. Thisinformation need not be retained in anyparticular manner, so long as the finan-cial institution is able to retrieve the

information required by this paragraph,either by accessing transmittal of fundsrecords directly or through reference tosome other record maintained by thefinancial institution.

(5) Verification. Where verification isrequired under paragraphs (f)(2) and(f)(3) of this section, a financial institu-tion shall verify a person’s identity byexamination of a document (other thana customer signature card), preferablyone that contains the person’s name,address, and photograph, that is nor-mally acceptable by financial institu-tions as a means of identification whencashing checks for persons other thanestablished customers. Verification ofthe identity of an individual who indi-cates that he or she is an alien or is nota resident of the United States may bemade by passport, alien identificationcard, or other official document evidenc-ing nationality or residence (e.g., a for-eign driver’s license with indication ofhome address).

(6) Exceptions.The following transmittalsof funds are not subject to the require-ments of this section:(i) Transmittals of funds where the

transmittor and the recipient are anyof the following:(A) A bank;(B) A wholly-owned domestic sub-

sidiary of a bank chartered inthe United States;

(C) A broker or dealer in securi-ties;

(D) A wholly-owned domestic sub-sidiary of a broker or dealer insecurities;

(E) The United States;(F) A state or local government; or(G) A federal, state or local gov-

ernment agency or instrumen-tality; and

(ii) Transmittals of funds where boththe transmittor and the recipientare the same person and the trans-mittor’s financial institution andthe recipient’s financial institutionare the same broker or dealer insecurities.

(g) Any transmittor’s financial institution orintermediary financial institution locatedwithin the United States shall include in any



transmittal order for a transmittal of funds inthe amount of $3,000 or more, informationas required in this paragraph (g):(1) A transmittor’s financial institution shall

include in a transmittal order, at the timeit is sent to a receiving financial institu-tion, the following information:

(i) The name and, if the paymentis ordered from an account,the account number of thetransmittor;

(ii) The address of the transmittor,except for a transmittal orderthrough Fedwire until such timeas the bank that sends the orderto the Federal Reserve Bankcompletes its conversion to theexpanded Fedwire format;

(iii) The amount of the transmittalorder;

(iv) The execution date of the transmit-tal order;

(v) The identity of the recipient’sfinancial institution;

(vi) As many of the following items asare received with the transmittalorder:4(A) The name and address of the

recipient;(B) The account number of the

recipient;(C) Any other specific identifier

of the recipient; and(vii) Either the name and address or

numerical identifier of the trans-mittor’s financial institution.

(2) A receiving financial institution thatacts as an intermediary financial institu-tion, if it accepts a transmittal order,shall include in a corresponding trans-mittal order at the time it is sent to thenext receiving financial institution, thefollowing information, if received fromthe sender:

(i) The name and the account num-ber of the transmittor;

(ii) The address of the transmittor,except for a transmittal order

through Fedwire until such timeas the bank that sends the orderto the Federal Reserve Bankcompletes its conversion to theexpanded Fedwire format;

(iii) The amount of the transmittalorder;

(iv) The execution date of the transmit-tal order;

(v) The identity of the recipient’sfinancial institution;

(vi) As many of the following items asare received with the transmittalorder:5(A) The name and address of the

recipient;(B) The account number of the

recipient;(C) Any other specific identifier

of the recipient; and(vii) Either the name and address or

numerical identifier of the trans-mittor’s financial institution.

(3) Safe harbor for transmittals of fundsprior to conversion to the expandedFedwire message format. The followingprovisions apply to transmittals of fundseffected through the Federal Reserve’sFedwire funds transfer system or other-wise by a financial institution before thebank that sends the order to the FederalReserve Bank or otherwise, completesits conversion to the expanded Fedwiremessage format.

(i) Transmittor’s financial institution.A transmittor’s financial institutionwill be deemed to be in compliancewith the provisions of paragraph(g)(1) of this section if it:(A) Includes in the transmittal

order, at the time it is sent tothe receiving financial insti-tution, the information speci-fied in paragraphs (g)(1)(iii)through (v), and the informa-tion specified in paragraph(g)(1)(vi) of this section to theextent that such information

4. For transmittals of funds effected through the FederalReserve’s Fedwire funds transfer system by a financial insti-tution, only one of the items is required to be included in thetransmittal order, if received with the sender’s transmittalorder, until such time as the bank that sends the order to theFederal Reserve Bank completes its conversion to the expandedFedwire message format.

5. For transmittals of funds effected through the FederalReserve’s Fedwire funds transfer system by a financial insti-tution, only one of the items is required to be included in thetransmittal order, if received with the sender’s transmittalorder, until such time as the bank that sends the order to theFederal Reserve Bank completes its conversion to the expandedFedwire message format.



has been received by the finan-cial institution, and

(B) Provides the information speci-fied in paragraphs (g)(1)(i),(ii) and (vii) of this section toa financial institution that actedas an intermediary financialinstitution or recipient’s finan-cial institution in connectionwith the transmittal order,within a reasonable time afterany such financial institutionmakes a request therefor inconnection with the request-ing financial institution’sreceipt of a lawful request forsuch information from afederal, state, or local lawenforcement or financial reg-ulatory agency, or in con-nection with the requestingfinancial institution’s ownBank Secrecy Act complianceprogram.

(ii) Intermediary financial institution.An intermediary financial institu-tion will be deemed to be in com-pliance with the provisions of para-graph (g)(2) of this section if it:(A) Includes in the transmittal

order, at the time it is sent tothe receiving financial insti-tution, the information speci-fied in paragraphs (g)(2)(iii)through (g)(2)(vi) of this sec-tion, to the extent that suchinformation has been receivedby the intermediary financialinstitution; and

(B) Provides the information speci-fied in paragraphs (g)(2)(i),(ii) and (vii) of this section, tothe extent that such informa-tion has been received by theintermediary financial institu-tion, to a financial institutionthat acted as an intermediaryfinancial institution or recipi-ent’s financial institution inconnection with the transmit-tal order, within a reasonabletime after any such financialinstitution makes a requesttherefor in connection withthe requesting financial insti-

tution’s receipt of a lawfulrequest for such informationfrom a federal, state, or locallaw enforcement or regulatoryagency, or in connection withthe requesting financial insti-tution’s own Bank Secrecy Actcompliance program.

(iii) Obligation of requesting finan-cial institution. Any informa-tion requested under paragraph(g)(3)(i)(B) or (g)(3)(ii)(B) ofthis section shall be treated bythe requesting institution, oncereceived, as if it had been includedin the transmittal order to whichsuch information relates.

(4) Exceptions.The requirements of thisparagraph (g) shall not apply to trans-mittals of funds that are listed in para-graph (e)(6) or (f)(6) of this section.

HISTORY:[37 FR 6912, Apr. 5, 1972, as amended at 52 FR 11444,Apr. 8, 1987; 54 FR 33679, Aug. 16, 1989; 60 FR 229, 237,Jan. 3, 1995; 60 FR 44144, Aug. 24, 1995; 61 FR 14382,14383, 14385, 14386, 14388, April 1, 1996, as corrected at61 FR 18250, April 25, 1996]


NOTES:[EFFECTIVE DATE NOTE: 60 FR 229, Jan. 3, 1995, whichadded paragraphs (e) and (f), became effective Jan. 1, 1996;60 FR 237, Jan. 3, 1995, which added paragraph (g), becameeffective Jan. 1, 1996; 60 FR 44144, Aug. 24, 1995, delayedthe effective date of the amendment at 60 FR 229, Jan. 3,1995, from Jan. 1, 1996 to April 1, 1996; 61 FR 14382,April 1, 1996, further delayed the effective date of theamendments at 60 FR 229 and 237, Jan. 3, 1995, from April 1,1996 to May 28, 1996; 61 FR 14383, 14385, April 1, 1996,which amended paragraphs (e) and (f), became effective May28, 1996; 61 FR 14386, 14388, April 1, 1996, which revisedthe introductory text of paragraphs (g) and (g)(1), and addedparagraphs (g)(3) and (g)(4), became effective May 28, 1996.]NOTES APPLICABLE TO ENTIRE TITLE:EDITORIAL NOTE: Other regulations issued by Departmentof the Treasury appear in Title 12, Chapter I; Title 19, Chap-ter I; Title 26, Chapter I; Title 27, Chapter I; Title 31, Chap-ters II, IV, V, VI, and VII, and Title 48, Chapter 10. CROSSREFERENCE: General Accounting Office: See 4 C.F.R.Chapter I.






31 C.F.R. 103.34

§103.34 Additional records to bemade and retained by banks.

(a) (1) With respect to each certificate of depositsold or redeemed after May 31, 1978, oreach deposit or share account openedwith a bank after June 30, 1972, a bankshall, within 30 days from the date sucha transaction occurs or an account isopened, secure and maintain a record ofthe taxpayer identification number ofthe customer involved; or where theaccount or certificate is in the names oftwo or more persons, the bank shallsecure the taxpayer identification num-ber of a person having a financial inter-est in the certificate or account. In theevent that a bank has been unable tosecure, within the 30-day period speci-fied, the required identification, it shallnevertheless not be deemed to be inviolation of this section if (i) it has madea reasonable effort to secure such iden-tification, and (ii) it maintains a listcontaining the names, addresses, andaccount numbers of those persons fromwhom it has been unable to secure suchidentification, and makes the names,addresses, and account numbers of thosepersons available to the Secretary asdirected by him. A bank acting as anagent for another person in the purchaseor redemption of a certificate of depositissued by another bank is responsiblefor obtaining and recording the requiredtaxpayer identification, as well as formaintaining the records referred to inparagraphs (b)(11) and (12) of this sec-tion. The issuing bank can satisfy therecordkeeping requirement by recordingthe name and address of the agenttogether with a description of the instru-ment and the date of the transaction.Where a person is a non-resident alien,the bank shall also record the person’spassport number or a description ofsome other government document usedto verify his identity.

(2) The 30-day period provided for in para-graph (a)(1) of this section shall be

extended where the person opening theaccount has applied for a taxpayer iden-tification or social security number onForm SS-4 or SS-5, until such time asthe person maintaining the account hashad a reasonable opportunity to securesuch number and furnish it to the bank.

(3) A taxpayer identification numberrequired under paragraph (a)(1) of thissection need not be secured for accountsor transactions with the following:(i) agencies and instrumentalities of Fed-eral, state, local or foreign governments;(ii) judges, public officials, or clerksof courts of record as custodians offunds in controversy or under the con-trol of the court; (iii) aliens who are(A) ambassadors, ministers, careerdiplomatic or consular officers, or(B) naval, military or other attaches offoreign embassies and legations, and forthe members of their immediate fami-lies; (iv) aliens who are accreditedrepresentatives of international organi-zations which are entitled to enjoy privi-leges, exemptions and immunities as aninternational organization under theInternational Organization ImmunitiesAct of December 29, 1945 (22 U.S.C.288), and the members of their imme-diate families; (v) aliens temporarilyresiding in the United States for a periodnot to exceed 180 days; (vi) aliens notengaged in a trade or business in theUnited States who are attending a rec-ognized college or university or anytraining program, supervised or con-ducted by any agency of the FederalGovernment; (vii) unincorporated sub-ordinate units of a tax exempt centralorganization which are covered by agroup exemption letter, (viii) a personunder 18 years of age with respect to anaccount opened as a part of a schoolthrift savings program, provided theannual interest is less than $10; (ix) aperson opening a Christmas club, vaca-tion club and similar installment savingsprograms provided the annual interest isless than $10; and non-resident alienswho are not engaged in a trade orbusiness in the United States. In instancesdescribed in paragraphs (a)(3), (viii)and (ix) of this section, the bank shall,within 15 days following the end of any



calendar year in which the interestaccrued in that year is $10 or more useits best effort to secure and maintain theappropriate taxpayer identification num-ber or application form therefor.

(4) The rules and regulations issued by theInternal Revenue Service under section6109 of the Internal Revenue Code of1954 shall determine what constitutes ataxpayer identification number andwhose number shall be obtained in thecase of an account maintained by one ormore persons.

(b) Each bank shall, in addition, retain either theoriginal or a microfilm or other copy orreproduction of each of the following:(1) Each document granting signature

authority over each deposit or shareaccount, including any notations, ifsuch are normally made, of specificidentifying information verifying theidentity of the signer (such as adriver’s license number or credit cardnumber);

(2) Each statement, ledger card or otherrecord on each deposit or share account,showing each transaction in, or withrespect to, that account;

(3) Each check, clean draft, or moneyorder drawn on the bank or issued andpayable by it, except those drawn for$100 or less or those drawn on accountswhich can be expected to have drawnon them an average of at least 100checks per month over the calendaryear or on each occasion on whichsuch checks are issued, and whichare (i) dividend checks, (ii) payrollchecks, (iii) employee benefit checks,(iv) insurance claim checks, (v) medi-cal benefit checks, (vi) checks drawnon government agency accounts,(vii) checks drawn by brokers or deal-ers in securities, (viii) checks drawn onfiduciary accounts, (ix) checks drawnon other financial institutions, or pen-sion or annuity checks;

(4) Each item in excess of $100 (otherthan bank charges or periodic chargesmade pursuant to agreement with thecustomer), comprising a debit to acustomer’s deposit or share account,not required to be kept, and notspecifically exempted, under para-graph (b)(3) of this section;

(5) Each item, including checks, drafts,or transfers of credit, of more than$10,000 remitted or transferred to aperson, account or place outside theUnited States;

(6) A record of each remittance or transferof funds, or of currency, other mone-tary instruments, checks, investmentsecurities, or credit, of more than$10,000 to a person, account or placeoutside the United States;

(7) Each check or draft in an amount inexcess of $10,000 drawn on or issuedby a foreign bank which the domesticbank has paid or presented to a non-bank drawee for payment;

(8) Each item, including checks, draftsor transfers of credit, of more than$10,000 received directly and notthrough a domestic financial institu-tion, by letter, cable or any other means,from a bank, broker or dealer in for-eign exchange outside the UnitedStates;

(9) A record of each receipt of currency,other monetary instruments, invest-ment securities or checks, and of eachtransfer of funds or credit, of morethan $10,000 received on any oneoccasion directly and not through adomestic financial institution, from abank, broker or dealer in foreignexchange outside the United States;and

(10) Records prepared or received by abank in the ordinary course of busi-ness, which would be needed to recon-struct a transaction account and totrace a check in excess of $100 depos-ited in such account through its domes-tic processing system or to supply adescription of a deposited check inexcess of $100. This subparagraph shallbe applicable only with respect todemand deposits.

(11) A record containing the name, address,and taxpayer identification number, ifavailable, of the purchaser of eachcertificate of deposit, as well as adescription of the instrument, a nota-tion of the method of payment, and thedate of the transaction.

(12) A record containing the name, addressand taxpayer identification number, ifavailable, of any person presenting a



certificate of deposit for payment, aswell as a description of the instrumentand the date of the transaction.

(13) Each deposit slip or credit ticketreflecting a transaction in excess of$100 or the equivalent record for directdeposit or other wire transfer deposittransactions. The slip or ticket shallrecord the amount of any currencyinvolved.


HISTORY:[38 FR 2175, Jan. 22, 1973, as amended at 38 FR 3509,Feb. 7, 1973; 43 FR 21672, May 19, 1978; 52 FR 11444,Apr. 8, 1987]


NOTES: NOTES APPLICABLE TO ENTIRE TITLE:EDITORIAL NOTE: Other regulations issued by Departmentof the Treasury appear in Title 12, Chapter I; Title 19, Chap-ter I; Title 26, Chapter I; Title 27, Chapter I; Title 31, Chap-ters II, IV, V, VI, and VII, and Title 48, Chapter 10. CROSSREFERENCE: General Accounting Office: See 4 C.F.R.Chapter I.




31 C.F.R. 103.35

§103.35 Additional records to bemade and retained by brokers ordealers in securities.

(a) (1) With respect to each brokerage accountopened with a broker or dealer in secu-rities after June 30, 1972, by a personresiding or doing business in the UnitedStates or a citizen of the United States,such broker or dealer shall within30 days from the date such account isopened, secure and maintain a record ofthe taxpayer identification number ofthe person maintaining the account; orin the case of an account of one or more

individuals, such broker or dealer shallsecure and maintain a record of thesocial security number of an individualhaving a financial interest in that account.In the event that a broker or dealer hasbeen unable to secure the identificationrequired within the 30-day period speci-fied, it shall nevertheless not be deemedto be in violation of this section if: (i) Ithas made a reasonable effort to securesuch identification, and (ii) it maintainsa list containing the names, addresses,and account numbers of those personsfrom whom it has been unable to securesuch identification, and makes the names,addresses, and account numbers of thosepersons available to the Secretary asdirected by him. Where a person is anon-resident alien, the broker or dealerin securities shall also record the per-son’s passport number or a descriptionof some other government documentused to verify his identity.

(2) The 30-day period provided for in para-graph (a)(1) of this section shall beextended where the person opening theaccount has applied for a taxpayer iden-tification or social security number onForm SS-4 or SS-5, until such time asthe person maintaining the account hashad a reasonable opportunity to securesuch number and furnish it to the brokeror dealer.

(3) A taxpayer identification number for adeposit or share account required underparagraph (a)(1) of this section need notbe secured in the following instances:(i) Accounts for public funds openedby agencies and instrumentalities ofFederal, state, local, or foreign govern-ments, (ii) accounts for aliens who are(a) ambassadors, ministers, careerdiplomatic or consular officers, or(b) naval, military or other attaches offoreign embassies, and legations, andfor the members of their immediatefamilies, (iii) accounts for aliens whoare accredited representatives to inter-national organizations which areentitled to enjoy privileges, exemptions,and immunities as an internationalorganization under the InternationalOrganizations Immunities Act of Decem-ber 29, 1945 (22 U.S.C. 288), and forthe members of their immediate fami-



lies, (iv) aliens temporarily residing inthe United States for a period not toexceed 180 days, (v) aliens not engagedin a trade or business in the UnitedStates who are attending a recognizedcollege or university or any trainingprogram, supervised or conducted byany agency of the Federal Government,and (vi) unincorporated subordinateunits of a tax exempt central organiza-tion which are covered by a groupexemption letter.

(b) Every broker or dealer in securities shall, inaddition, retain either the original or amicrofilm or other copy or reproduction ofeach of the following:

(1) Each document granting signature ortrading authority over each customer’saccount;

(2) Each record described in §240.17a-3(a)(1), (2), (3), (5), (6), (7), (8), and (9) ofTitle 17, Code of Federal Regulations;

(3) A record of each remittance or transferof funds, or of currency, checks, othermonetary instruments, investment secu-rities, or credit, of more than $10,000 toa person, account, or place, outside theUnited States;

(4) A record of each receipt of currency,other monetary instruments, checks, orinvestment securities and of each trans-fer of funds or credit, of more than$10,000 received on any one occasiondirectly and not through a domesticfinancial institution, from any person,account or place outside the UnitedStates.


HISTORY:[37 FR 26518, Dec. 13, 1972, as amended at 38 FR 2176,Jan. 22, 1973; 52 FR 11444, Apr. 8, 1987]






31 C.F.R. 103.36

§103.36 Additional records to bemade and retained by casinos.

[PUBLISHER’S NOTE: Paragraph (b)(7) was amended at61 FR 7054, 7056, Feb. 23, 1996, effective Aug. 1, 1996. Forthe convenience of the user, paragraph (b)(7) has been set outtwice below. The first version is effective until Aug. 1, 1996.The second version is effective Aug. 1, 1996.]

(a) With respect to each deposit of funds,account opened or line of credit extendedafter the effective date of these regulations,a casino shall, at the time the funds aredeposited, the account is opened or credit isextended, secure and maintain a record ofthe name, permanent address, and socialsecurity number of the person involved.Where the deposit, account or credit is in thenames of two or more persons, the casinoshall secure the name, permanent address,and social security number of each personhaving a financial interest in the deposit,account or line of credit. The name andaddress of such person shall be verified bythe casino at the time the deposit is made,account opened, or credit extended. Theverification shall be made by examination ofa document of the type described in §103.28,and the specific identifying information shallbe recorded in the manner described in§103.28. In the event that a casino has beenunable to secure the required social securitynumber, it shall not be deemed to be inviolation of this section if (1) it has made areasonable effort to secure such number and(2) it maintains a list containing the namesand permanent addresses of those personsfrom who it has been unable to obtain socialsecurity numbers and makes the names andaddresses of those persons available to theSecretary upon request. Where a person is anonresident alien, the casino shall also recordthe person’s passport number or a descrip-



tion of some other government documentused to verify his identity.

(b) In addition, each casino shall retain eitherthe original or a microfilm or other copy orreproduction of each of the following:(1) A record of each receipt (including but

not limited to funds for safekeeping orfront money) of funds by the casino forthe account (credit or deposit) of anyperson. The record shall include thename, permanent address and socialsecurity number of the person fromwhom the funds were received, as wellas the date and amount of the fundsreceived. If the person from whom thefunds were received is a nonresidentalien, the person’s passport number ora description of some other govern-ment document used to verify the per-son’s identity shall be obtained andrecorded;

(2) A record of each bookkeeping entrycomprising a debit or credit to a cus-tomer’s deposit account or creditaccount with the casino;

(3) Each statement, ledger card or otherrecord of each deposit account or creditaccount with the casino, showingeach transaction (including deposits,receipts, withdrawals, disbursementsor transfers) in or with respect to, acustomer’s deposit account or creditaccount with the casino;

(4) A record of each extension of credit inexcess of $2500, the terms and condi-tions of such extension of credit, andrepayments. The record shall includethe customer’s name, permanentaddress, social security number, andthe date and amount of the transaction(including repayments). If the cus-tomer or person for whom the creditextended is a non-resident alien, hispassport number or description of someother government document used toverify his identity shall be obtainedand recorded;

(5) A record of each advice, request orinstruction received or given by thecasino for itself or another person withrespect to a transaction involving aperson, account or place outside theUnited States (including but not lim-ited to communications by wire, letter,or telephone). If the transfer outside

the United States is on behalf of a thirdparty, the record shall include thethird party’s name, permanent address,social security number, signature, andthe date and amount of the transaction.If the transfer is received from outsidethe United States on behalf of a thirdparty, the record shall include the thirdparty’s name, permanent address, socialsecurity number, signature, and thedate and amount of the transaction. Ifthe person for whom the transaction isbeing made is a non-resident alien therecord shall also include the person’sname, his passport number or a descrip-tion of some other government docu-ment used to verify his identity;

(6) Records prepared or received by thecasino in the ordinary course of busi-ness which would be needed to recon-struct a person’s deposit account orcredit account with the casino or totrace a check deposited with the casinothrough the casino’s records to thebank of deposit;

(7) [Effective until Aug. 1, 1996.] Allrecords, documents or manualsrequired to be maintained by acasino under state and local laws orregulations.

(7) [Effective Aug. 1, 1996.] All records,documents or manuals required to bemaintained by a casino under state andlocal laws or regulations, regulationsof any governing Indian tribe or tribalgovernment, or terms of (or any regu-lations issued under) any Tribal-Statecompacts entered into pursuant to theIndian Gaming Regulatory Act, withrespect to the casino in question.

(8) All records which are prepared or usedby a casino to monitor a customer’sgaming activity.

(9) (i) A separate record containing a listof each transaction between thecasino and its customers involvingthe following types of instrumentshaving a face value of $ 3,000 ormore:(A) Personal checks (excluding

instruments which evidencecredit granted by a casinostrictly for gaming, such asmarkers);



(B) Business checks (includingcasino checks);

(C) Official bank checks;

(D) Cashier’s checks;

(E) Third-party checks;

(F) Traveler’s checks; and

(G) Money orders.

(ii) The list will contain the time, date,and amount of the transaction; thename and permanent address ofthe customer; the type of instru-ment; the name of the drawee orissuer of the instrument; all refer-ence numbers (e.g., casino accountnumber, personal check number,etc.); and the name or casinolicense number of the casinoemployee who conducted the trans-action. Applicable transactionswill be placed on the list in thechronological order in which theyoccur.

(12) A copy of the compliance programdescribed in §103.54(a).

HISTORY:[50 FR 5068, Feb. 6, 1985, as amended at 52 FR 11444,Apr. 8, 1987; 54 FR 1167, Jan. 12, 1989; 58 FR 13547,Mar. 12, 1994; 59 FR 61662, Dec. 1, 1994; 61 FR 7054, 7056,Feb. 23, 1996]


NOTES:[EFFECTIVE DATE NOTE: 61 FR 7054, 7056, Feb. 23,1996, which added ’, regulations of any governing Indian tribeor tribal government, or terms of (or any regulations issuedunder) any Tribal-State compacts entered into pursuant to theIndian Gaming Regulatory Act, with respect to the casino inquestion.’’ after ‘‘state and local laws or regulations,’’ iseffective Aug. 1, 1996.]NOTES APPLICABLE TO ENTIRE TITLE:EDITORIAL NOTE: Other regulations issued by Departmentof the Treasury appear in Title 12, Chapter I; Title 19, Chap-ter I; Title 26, Chapter I; Title 27, Chapter I; Title 31, Chap-ters II, IV, V, VI, and VII, and Title 48, Chapter 10. CROSSREFERENCE: General Accounting Office: See 4 C.F.R.Chapter I.




31 C.F.R. 103.37

§103.37 Additional records to bemade and retained by currencydealers or exchangers.

(a) (1) After July 7, 1987, each currency dealeror exchanger shall secure and maintaina record of the taxpayer identificationnumber of each person for whom atransaction account is opened or a lineof credit is extended within 30 daysafter such account is opened or creditline extended. Where a person is anon-resident alien, the currency dealeror exchanger shall also record the per-son’s passport number or a descriptionof some other government documentused to verify his identity. Where theaccount or credit line is in the names oftwo or more persons, the currency dealeror exchanger shall secure the taxpayeridentification number of a person hav-ing a financial interest in the account orcredit line. In the event that a currencydealer or exchanger has been unable tosecure the identification required withinthe 30-day period specified, it shallnevertheless not be deemed to be inviolation of this section if:(i) It has made a reasonable effort to

secure such identification, and(ii) It maintains a list containing the

names, addresses, and account orcredit line numbers of those personsfrom whom it has been unable tosecure such identification, and makesthe names, addresses, and accountor credit line numbers of those per-sons available to the Secretary asdirected by him.

(2) The 30-day period provided for in para-graph (a)(1) of this section shall beextended where the person opening theaccount or credit line has applied for ataxpayer identification or social securitynumber on Form SS-4 or SS-5, untilsuch time as the person maintaining theaccount or credit line has had a reason-able opportunity to secure such numberand furnish it to the currency dealer orexchanger.



(3) A taxpayer identification number for anaccount or credit line required underparagraph (a)(1) of this section need notbe secured in the following instances:

(i) Accounts for public funds openedby agencies and instrumentalitiesof Federal, state, local or foreigngovernments,

(ii) Accounts for aliens who are—(A) Ambassadors, ministers, career

diplomatic or consular offi-cers, or

(B) Naval, military or otherattaches of foreign embassies,and legations, and formembers of their immediatefamilies,

(iii) Accounts for aliens who are accred-ited representatives to internationalorganizations which are entitled toenjoy privileges, exemptions, andimmunities as an internationalorganization under the Interna-tional Organizations ImmunitiesAct of December 29, 1945 (22U.S.C. 288), and for the membersof their immediate families,

(iv) Aliens temporarily residing in theUnited States for a period not toexceed 180 days,

(v) Aliens not engaged in a trade orbusiness in the United States whoare attending a recognized collegeor any training program, super-vised or conducted by any agencyof the Federal Government, and

(vi) Unincorporated subordinate unitsof a tax exempt central organiza-tion which are covered by a groupexemption letter.

(b) Each currency dealer or exchanger shallretain either the original or a microfilm orother copy or reproduction of each of thefollowing:(1) Statements of accounts from banks,

including paid checks, charges or otherdebit entry memoranda, deposit slipsand other credit memoranda repre-senting the entries reflected on suchstatements;

(2) Daily work records, including purchaseand sales slips or other memorandaneeded to identify and reconstruct cur-rency transactions with customers andforeign banks;

(3) A record of each exchange of currencyinvolving transactions in excess of$1000, including the name and addressof the customer (and passport number ortaxpayer identification number unlessreceived by mail or common carrier)date and amount of the transaction andcurrency name, country, and total amountof each foreign currency;

(4) Signature cards or other documentsevidencing signature authority overeach deposit or security account, con-taining the name of the depositor, streetaddress, taxpayer identification number(TIN) or employer identification num-ber (EIN) and the signature of thedepositor or of a person authorized tosign on the account (if customer accountsare maintained in a code name, a recordof the actual owner of the account);

(5) Each item, including checks, drafts, ortransfers of credit, of more than $10,000remitted or transferred to a person,account or place outside the UnitedStates;

(6) A record of each receipt of currency,other monetary instruments, investmentsecurities and checks, and of each trans-fer of funds or credit, or more than$10,000 received on any one occasiondirectly and not through a domesticfinancial institution, from any person,account or place outside the UnitedStates;

(7) Records prepared or received by a dealerin the ordinary course of business, thatwould be needed to reconstruct anaccount and trace a check in excess of$100 deposited in such account throughits internal recordkeeping system toits depositary institution, or to supply adescription of a deposited check inexcess of $100;

(8) A record maintaining the name, addressand taxpayer identification number, ifavailable, of any person presenting acertificate of deposit for payment, aswell as a description of the instrumentand date of transaction;

(9) A system of books and records that willenable the currency dealer or exchangerto prepare an accurate balance sheet andincome statement.




HISTORY:[52 FR 11444, Apr. 8, 1987]






31 C.F.R. 103.38

§103.38 Nature of records andretention period.

(a) Wherever it is required that there be retainedeither the original or a microfilm or othercopy or reproduction of a check, draft,monetary instrument, investment security,or other similar instrument, there shall beretained a copy of both front and back ofeach such instrument or document, exceptthat no copy need be retained of the back ofany instrument or document which isentirely blank or which contains only stan-dardized printed information, a copy ofwhich is on file.

(b) Records required by this subpart to beretained by financial institutions may bethose made in the ordinary course of busi-ness by a financial institution. If no record ismade in the ordinary course of business ofany transaction with respect to which recordsare required to be retained by this subpart,then such a record shall be prepared inwriting by the financial institution.

(c) The rules and regulations issued by theInternal Revenue Service under 26 U.S.C.6109 determine what constitutes a taxpayer

identification number and whose numbershall be obtained in the case of an accountmaintained by one or more persons.

(d) All records that are required to be retainedby this part shall be retained for a period offive years. Records or reports required to bekept pursuant to an order issued under§103.26 of this part shall be retained for theperiod of time specified in such order, not toexceed five years. All such records shallbe filed or stored in such a way as to beaccessible within a reasonable period oftime, taking into consideration the nature ofthe record, and the amount of time expiredsince the record was made.


HISTORY:[37 FR 6912, Apr. 5, 1972. Redesignated at 50 FR 5068,Feb. 6, 1985, and further redesignated and amended at 52 FR11444, 11445, Apr. 8, 1987; 54 FR 33679, Aug. 16, 1989]






31 C.F.R. 103.39

§103.39 Person outside theUnited States.

For the purposes of this subpart, a remittance ortransfer of funds, or of currency, other monetaryinstruments, checks, investment securities, orcredit to the domestic account of a person whoseaddress is known by the person making theremittance or transfer, to be outside the United



States, shall be deemed to be a remittance ortransfer to a person outside the United States,except that, unless otherwise directed by theSecretary, this section shall not apply to atransaction on the books of a domestic financialinstitution involving the account of a customerof such institution whose address is withinapproximately 50 miles of the location of theinstitution, or who is known to be temporarilyoutside the United States.

HISTORY:[37 FR 6912, Apr. 5, 1972. Redesignated at 50 FR 5068,Feb. 6, 1985 and 52 FR 11444, Apr. 8, 1987]





SUBPART D—General Provisions

31 C.F.R. 103.41

§103.41 Dollars as including foreigncurrency.

Wherever in this part an amount is stated indollars, it shall be deemed to mean also theequivalent amount in any foreign currency.

HISTORY:37 FR 6912, Apr. 5, 1972.






31 C.F.R. 103.42

§103.42 Photographic or otherreproductions of Governmentobligations.

Nothing herein contained shall require or autho-rize the microfilming or other reproduction of(a) Currency or other obligation or security of

the United States as defined in 18 U.S.C. 8,or

(b) Any obligation or other security of anyforeign government, the reproduction ofwhich is prohibited by law.

HISTORY:37 FR 6912, Apr. 5, 1972.






31 C.F.R. 103.43

§103.43 Availability of information.

(a) The Secretary may within his discretiondisclose information reported under this partfor any reason consistent with the purposesof the Bank Secrecy Act, including those set



forth in paragraphs (b) through (d) of thissection.

(b) The Secretary may make any informa-tion set forth in any report received pur-suant to this part available to anotheragency of the United States, to an agencyof a state or local government or to anagency of a foreign government, upon therequest of the head of such department oragency made in writing and stating theparticular information desired, the criminal,tax or regulatory purpose for which theinformation is sought, and the official needfor the information.

(c) The Secretary may make any informationset forth in any report received pursuant tothis part available to the Congress, or anycommittee or subcommittee thereof, upon awritten request stating the particular infor-mation desired, the criminal, tax or regu-latory purpose for which the informationis sought, and the official need for theinformation.

(d) The Secretary may make any informationset forth in any report received pursuantto this part available to any other depart-ment or agency of the United States thatis a member of the Intelligence Community,as defined by Executive Order 12333 orany succeeding executive order, upon therequest of the head of such departmentor agency made in writing and statingthe particular information desired, thenational security matter with which theinformation is sought and the official needtherefor.

(e) Any information made available under thissection to other department or agencies ofthe United States, any state or local govern-ment, or any foreign government shall bereceived by them in confidence, and shallnot be disclosed to any person except forofficial purposes relating to the investiga-tion, proceeding or matter in connectionwith which the information is sought.

(f) The Secretary may require that a state orlocal government department or agencyrequesting information under paragraph (b)of this section pay fees to reimburse theDepartment of the Treasury for costs inci-dental to such disclosure. The amount ofsuch fees will be set in accordance with thestatute on fees for government services,31 U.S.C. 9701.


HISTORY:[50 FR 42693, Oct. 22, 1985, as amended at 50 FR 46283,Nov. 7, 1985; 52 FR 35545, Sept. 22, 1987]






31 C.F.R. 103.44

§103.44 Disclosure.

All reports required under this part and allrecords of such reports are specifically exemptedfrom disclosure under section 552 of Title 5,United States Code.

HISTORY:37 FR 6912, Apr. 5, 1972.








31 C.F.R. 103.45

§103.45 Exceptions, exemptions, andreports.

(a) The Secretary, in his sole discretion, may bywritten order or authorization make excep-tions to or grant exemptions from therequirements of this part. Such exceptionsor exemptions may be conditional or uncon-ditional, may apply to particular persons orto classes of persons, and may apply toparticular transactions or classes of trans-actions. They shall, however, be applicableonly as expressly stated in the order ofauthorization, and they shall be revocable inthe sole discretion of the Secretary.

(b) The Secretary shall have authority to furtherdefine all terms used herein.

(c) (1) The Secretary may, as an alternative tothe reporting and recordkeeping require-ments for casinos in §§103.22(a)(2) and103.25(a)(2), and 103.36, grant exemp-tions to the casinos in any state whoseregulatory system substantially meetsthe reporting and recordkeeping require-ments of this part.

(2) In order for a state regulatory system toqualify for an exemption on behalf of itscasinos, the state must provide:

(i) That the Treasury Department beallowed to evaluate the effective-ness of the state’s regulatory sys-tem by periodic oversight reviewof that system;

(ii) That the reports required under thestate’s regulatory system be sub-mitted to the Treasury Departmentwithin 15 days of receipt by thestate;

(iii) That any records required to bemaintained by the casinos relevantto any matter under this part and towhich the state has access or main-tains under its regulatory systembe made available to the TreasuryDepartment within 30 days ofrequest;

(iv) That the Treasury Department beprovided with periodic statusreports on the state’s complianceefforts and findings;

(v) That all but minor violations of thestate requirements be reported toTreasury within 15 days of discov-ery; and

(vi) That the state will initiate compli-ance examinations of specific insti-tutions at the request of Treasurywithin a reasonable time, not toexceed 90 days where appropriate,and will provide reports of theseexaminations to Treasury within15 days of completion or periodi-cally during the course of theexamination upon the request ofthe Secretary. If for any reason thestate were not able to conduct aninvestigation within a reasonabletime, the state will permit Treasuryto conduct the investigation.

(3) Revocation of any exemption under thissubsection shall be in the sole discretionof the Secretary.

HISTORY:[38 FR 2176, Jan. 22, 1973, as amended at 50 FR 5069,Feb. 6, 1985; 50 FR 36875, Sept. 10, 1985]






31 C.F.R. 103.46

§103.46 Enforcement.

(a) Overall authority for enforcement and com-pliance, including coordination and direc-tion of procedures and activities of allother agencies exercising delegated author-



ity under this part, is delegated to theAssistant Secretary (Enforcement).

(b) Authority to examine institutions to deter-mine compliance with the requirements ofthis part is delegated as follows:(1) To the Comptroller of the Currency with

respect to those financial institutionsregularly examined for safety and sound-ness by national bank examiners;

(2) To the Board of Governors of the Fed-eral Reserve System with respect tothose financial institutions regularlyexamined for safety and soundness byFederal Reserve bank examiners;

(3) To the Federal Deposit Insurance Cor-poration with respect to those finan-cial institutions regularly examined forsafety and soundness by FDIC bankexaminers;

(4) To the Federal Home Loan Bank Boardwith respect to those financial institu-tions regularly examined for safety andsoundness by FHLBB bank examiners;

(5) To the Chairman of the Board of theNational Credit Union Administrationwith respect to those financial institu-tions regularly examined for safety andsoundness by NCUA examiners.

(6) To the Securities and Exchange Com-mission with respect to brokers or deal-ers in securities;

(7) To the Commissioner of Customs withrespect to §§103.23 and 103.48;

(8) To the Commissioner of Internal Reve-nue with respect to all financial institu-tions, except brokers or dealers in secu-rities, not currently examined by Federalbank supervisory agencies for sound-ness and safety.

(c) Authority for investigating criminal viola-tions of this part is delegated as follows:(1) To the Commissioner of Customs with

respect to §103.23;(2) To the Commissioner of Internal Reve-

nue except with respect to §103.23.(d) Authority for the imposition of civil penal-

ties for violations of this part lies with theAssistant Secretary, and in the AssistantSecretary’s absence, the Deputy AssistantSecretary (Law Enforcement).

(e) Periodic reports shall be made to the Assis-tant Secretary by each agency to whichcompliance authority has been delegatedunder paragraph (b) of this section. Thesereports shall be in such a form and submit-

ted at such intervals as the Assistant Secre-tary may direct. Evidence of specific viola-tions of any of the requirements of this partmay be submitted to the Assistant Secretaryat any time.

(f) The Assistant Secretary or his delegate, andany agency to which compliance has beendelegated under paragraph (b) of this sec-tion, may examine any books, papers,records, or other data of domestic financialinstitutions relevant to the recordkeeping orreporting requirements of this part.

HISTORY:[37 FR 6912, Apr. 5, 1972, as amended at 50 FR 42693,Oct. 22, 1985; 52 FR 11445, Apr. 8, 1987]






31 C.F.R. 103.47

§103.47 Civil penalty.

(a) For any willful violation, committed on orbefore October 12, 1984, of any reportingrequirement for financial institutions underthis part or of any recordkeeping require-ments of §103.22, the Secretary may assessupon any domestic financial institution, andupon any partner, director, officer, oremployee thereof who willfully participatesin the violation, a civil penalty not to exceed$1,000.

(b) For any willful violation committed afterOctober 12, 1984 and before October 28,1986, of any reporting requirement for finan-cial institutions under this part or of therecordkeeping requirements of §103.32, the



Secretary may assess upon any domesticfinancial institution, and upon any partner,director, officer, or employee thereof whowillfully participates in the violation, a civilpenalty not to exceed $10,000.

(c) For any willful violation of any recordkeep-ing requirement for financial institutions,except violations of §103.32, under thispart, the Secretary may assess upon anydomestic financial institution, and upon anypartner, director, officer, or employee thereofwho willfully participates in the violation, acivil penalty not to exceed $1,000.

(d) For any failure to file a report required under§103.23 or for filing such a report contain-ing any material omission or misstatement,the Secretary may assess a civil penalty upto the amount of the currency or monetaryinstruments transported, mailed or shipped,less any amount forfeited under §103.48.

(e) For any willful violation of §103.53 com-mitted after January 26, 1987, the Secretarymay assess upon any person a civil penaltynot to exceed the amount of coins andcurrency involved in the transaction withrespect to which such penalty is imposed.The amount of any civil penalty assessedunder this paragraph shall be reduced by theamount of any forfeiture to the United Statesin connection with the transaction for whichthe penalty was imposed.

(f) For any willful violation committed afterOctober 27, 1986, of any reporting require-ment for financial institutions under this part(except §103.24, §103.25 or §103.32), theSecretary may assess upon any domesticfinancial institution, and upon any partner,director, officer, or employee thereof whowillfully participates in the violation, a civilpenalty not to exceed the greater of theamount (not to exceed $100,000) involvedin the transaction or $25,000.

(g) For any willful violation committed afterOctober 27, 1986, of any requirement of§103.24, §103.25, or §103.32, the Secre-tary may assess upon any person, a civilpenalty:(1) In the case of a violation of §103.25

involving a transaction, a civil penaltynot to exceed the greater of the amount(not to exceed $100,000) of the transac-tion, or $25,000; and

(2) In the case of a violation of §103.24 or§103.32 involving a failure to report theexistence of an account or any identify-

ing information required to be providedwith respect to such account, a civilpenalty not to exceed the greater of theamount (not to exceed $100,000) equalto the balance in the account at the timeof the violation, or $25,000.

(h) For each negligent violation of any require-ment of this part, committed after Octo-ber 27, 1986, the Secretary may assess uponany financial institution a civil penalty not toexceed $500.

HISTORY:[37 FR 6912, Apr. 5, 1972, as amended at 52 FR 11445,Apr. 8, 1987; 52 FR 12641, Apr. 17, 1987]






31 C.F.R. 103.48

§103.48 Forfeiture of currency ormonetary instruments.

Any currency or other monetary instrumentswhich are in the process of any transportationwith respect to which a report is required under§103.23 are subject to seizure and forfeiture tothe United States if such report has not beenfiled as required in §103.25, or contains materialomissions or misstatements. The Secretary may,in his sole discretion, remit or mitigate any suchforfeiture in whole or in part upon such termsand conditions as he deems reasonable.

HISTORY:37 FR 6912, Apr. 5, 1972.








31 C.F.R. 103.49

§103.49 Criminal penalty.

(a) Any person who willfully violates any pro-vision of Title I of Pub. L. 91-508, or of thispart authorized thereby may, upon convic-tion thereof, be fined not more than $1,000or be imprisoned not more than 1 year, orboth. Such person may in addition, if theviolation is of any provision authorized byTitle I of Pub. L. 91-508 and if the violationis committed in furtherance of the commis-sion of any violation of Federal law punish-able by imprisonment for more than 1 year,be fined not more than $10,000 or beimprisoned not more than 5 years, or both.

(b) Any person who willfully violates any pro-vision of Title II of Pub. L. 91-508, or of thispart authorized thereby, may, upon convic-tion thereof, be fined not more than $250,000or be imprisoned not more than 5 years, orboth.

(c) Any person who willfully violates any pro-vision of Title II of Pub. L. 91-508, or of thispart authorized thereby, where the violationis either(1) Committed while violating another law

of the United States, or(2) Committed as part of a pattern of any

illegal activity involving more than$100,000 in any 12-month period, may,upon conviction thereof, be fined notmore than $500,000 or be imprisonednot more than 10 years, or both.

(d) Any person who knowingly makes any false,fictitious or fraudulent statement or repre-sentation in any report required by this part

may, upon conviction thereof, be fined notmore than $10,000 or be imprisoned notmore than 5 years, or both.

HISTORY:[37 FR 6912, Apr. 5, 1972, as amended at 50 FR 18479,May 1, 1985; 53 FR 4138, Feb. 12, 1988]






31 C.F.R. 103.50

§103.50 Enforcement authority withrespect to transportation of currencyor monetary instruments.

(a) If a customs officer has reasonable cause tobelieve that there is a monetary instrumentbeing transported without the filing of thereport required by §§103.23 and 103.25 ofthis chapter, he may stop and search, with-out a search warrant, a vehicle, vessel,aircraft, or other conveyance, envelope orother container, or person entering or depart-ing from the United States with respect towhich or whom the officer reasonablybelieves is transporting such instrument.

(b) If the Secretary has reason to believe thatcurrency or monetary instruments are in theprocess of transportation and with respect towhich a report required under §103.23 hasnot been filed or contains material omissionsor misstatements, he may apply to any courtof competent jurisdiction for a search war-rant. Upon a showing of probable cause, thecourt may issue a warrant authorizing thesearch of any or all of the following:(1) One or more designated persons.



(2) One or more designated or describedplaces or premises.

(3) One or more designated or describedletters, parcels, packages, or other physi-cal objects.

(4) One or more designated or describedvehicles. Any application for a searchwarrant pursuant to this section shall beaccompanied by allegations of fact sup-porting the application.

(c) This section is not in derogation of theauthority of the Secretary under any otherlaw or regulation.

HISTORY:[37 FR 6912, Apr. 5, 1972, as amended at 50 FR 18479,May 1, 1985]






31 C.F.R. 103.51

§103.51 Access to records.

Except as provided in §§103.34(a)(1),103.35(a)(1), and 103.36(a) and except for thepurpose of assuring compliance with the record-keeping and reporting requirements of this part,this part does not authorize the Secretary or anyother person to inspect or review the recordsrequired to be maintained by subpart C of thispart. Other inspection, review or access to suchrecords is governed by other applicable law.

HISTORY:[50 FR 5069, Feb. 6, 1985]






31 C.F.R. 103.52

§103.52 Rewards for informants.

(a) If an individual provides original informa-tion which leads to a recovery of a criminalfine, civil penalty, or forfeiture, whichexceeds $50,000, for a violation of theprovisions of the Act or of this part,the Secretary may pay a reward to thatindividual.

(b) The Secretary shall determine the amount ofthe reward to be paid under this section;however, any reward paid may not be morethan 25 percent 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 providesoriginal information described in paragraph(a) in the performance of official duties isnot eligible for a reward under this section.

HISTORY:[50 FR 18479, May 1, 1985]


NOTES:NOTES APPLICABLE TO ENTIRE TITLE:EDITORIAL NOTE: Other regulations issued by Departmentof the Treasury appear in Title 12, Chapter I; Title 19, ChapterI; Title 26, Chapter I; Title 27, Chapter I; Title 31, Chap-ters II, IV, V, VI, and VII, and Title 48, Chapter 10. CROSSREFERENCE: General Accounting Office: See 4 C.F.R.Chapter I.






31 C.F.R. 103.53

§103.53 Structured transactions.

No person shall for the purpose of evading thereporting requirements of §103.22 with respectto such transaction:(a) Cause or attempt to cause a domestic finan-

cial institution to fail to file a report requiredunder §103.22;

(b) Cause or attempt to cause a domestic finan-cial institution to file a report required under§103.22 that contains a material omission ormisstatement of fact; or

(c) Structure (as that term is defined in§103.11(gg) of this part) or assist in struc-turing, or attempt to structure or assist instructuring, any transaction with one ormore domestic financial institutions.

HISTORY:[52 FR 11446, Apr. 8, 1987, as amended at 54 FR 3027,Jan. 23, 1989]






31 C.F.R. 103.54

§103.54 Special rules for casinos.

(a) Compliance programs.

(1) Each casino shall develop and imple-ment a written program reasonablydesigned to assure and monitor compli-ance with the requirements set forth in31 U.S.C. chapter 53, subchapter II andthe regulations contained in this part.

(2) At a minimum, each compliance pro-gram shall provide for:

(i) A system of internal controls toassure ongoing compliance;

(ii) Internal and/or external indepen-dent testing for compliance;

(iii) Training of casino personnel,including training in the identifi-cation of unusual or suspicioustransactions, to the extent that thereporting of such transactions ishereafter required by this part, byother applicable law or regulation,or by the casino’s own administra-tive and compliance policies;

(iv) An individual or individuals toassure day-to-day compliance;

(v) Procedures for using all availableinformation to determine:(A) When required by this part,

the name, address, socialsecurity number, and otherinformation, and verificationof the same, of a person;

(B) When required by this part,the occurrence of unusual orsuspicious transactions; and

(C) Whether any record asdescribed in subpart C of thispart must be made and retained;and

(vi) For casinos that have automateddata processing systems, the use ofautomated programs to aid inassuring compliance.

(b) Special terms.As used in this part, asapplied to casinos:(1) Business year means the annual account-

ing period, such as a calendar or fiscalyear, by which a casino maintains itsbooks and records for purposes of sub-title A of title 26 of the United StatesCode.

(2) Casino account number means any andall numbers by which a casino identifiesa customer.

(3) Customer includes every person whichis involved in a transaction to which thispart applies with a casino, whether or



not that person participates, or intendsto participate, in the gaming activitiesoffered by that casino.

(4) Gaming day means the normal businessday of a casino. For a casino that offers24 hour gaming, the term means that24 hour period by which the casinokeeps its books and records for busi-ness, accounting, and tax purposes. Forpurposes of the regulations contained inthis part, each casino may have only onegaming day, common to all of itsdivisions.

(5) Machine-readable means capable ofbeing read by an automated data pro-cessing system.

(c) [Removed. See 59 FR 61662, Dec. 1, 1994]

HISTORY:[58 FR 13549, Mar. 12, 1993; 58 FR 45263, Aug. 27, 1993;59 FR 9088, Feb. 25, 1994; 59 FR 61662, Dec. 1, 1994;60 FR 33725, June 29, 1995]


NOTES:[EFFECTIVE DATE NOTE: 60 FR 33725, June 29, 1995,which revised paragraph (a)(1) and substituted ‘‘unusual’’ for‘‘usual’’ in paragraph (a)(2)(v)(B), became effective June 29,1995.]NOTES APPLICABLE TO ENTIRE TITLE:EDITORIAL NOTE: Other regulations issued by Departmentof the Treasury appear in Title 12, Chapter I; Title 19, Chap-ter I; Title 26, Chapter I; Title 27, Chapter I; Title 31, Chap-ters II, IV, V, VI, and VII, and Title 48, Chapter 10. CROSSREFERENCE: General Accounting Office: See 4 C.F.R.Chapter I.



SUBPART E—Summons

31 C.F.R. 103.61

§103.61 General.

For any investigation for the purpose of civilenforcement of violations of the Currency andForeign Transactions Reporting Act, as amended(31 U.S.C. 5311 through 5324), section 21 of theFederal Deposit Insurance Act (12 U.S.C.1829b), section 411 of the National Housing Act

(12 U.S.C. 1730d), or Chapter 2 of Pub. L.91-508 (12 U.S.C. 1951 et seq.), or any regula-tion under any such provision, the Secretary ordelegate of the Secretary may summon a finan-cial institution or an officer or employee of afinancial institution (including a former officeror employee), or any person having possession,custody, or care of any of the records and reportsrequired under the Currency and Foreign Trans-actions Reporting Act or this part to appearbefore the Secretary or his delegate, at a timeand place named in the summons, and to givetestimony, under oath, and be examined, and toproduce such books, papers, records, or otherdata as may be relevant or material to suchinvestigation.

HISTORY:52 FR 23979, June 26, 1987.





SUBPART E—Summons

31 C.F.R. 103.62

§103.62 Persons who may issuesummons.

For purposes of this part, the following officialsare hereby designated as delegates of the Secre-tary who are authorized to issue a summonsunder §103.61, solely for the purposes of civilenforcement of this part:(a) Office of the Secretary. The Assistant Sec-

retary (Enforcement), the Deputy AssistantSecretary (Law Enforcement), and theDirector, Office of Financial Enforcement.

(b) Internal Revenue Service.Except withrespect to §103.23 of this part, the Commis-



sioner, the Deputy Commissioner, the Asso-ciate Commissioner (Operations), the Assis-tant Commissioner (Examination), RegionalCommissioners, Assistant Regional Com-missioners (Examination), District Direc-tors, District Examination Division Chiefs,and, for the purposes of perfecting seizuresand forfeitures related to civil enforcementof this part, the Assistant Commissioner(Criminal Investigation), Assistant RegionalCommissioners (Criminal Investigation), andDistrict Criminal Investigation DivisionChiefs.

(c) Customs Service.With respect to §103.23of this part, the Commissioner, the DeputyCommissioner, the Assistant Commissioner(Enforcement), Regional Commissioners,Assistant Regional Commissioners (Enforce-ment), and Special Agents in Charge.

HISTORY:52 FR 23979, June 26, 1987.



NOTES APPLICABLE TO ENTIRE CHAPTER:ABBREVIATION: The following abbreviation is used in this

chapter: C.P.D. = Commissioner of the Public Debt.NOTESAPPLICABLE TO ENTIRE PART:EDITORIAL NOTE: Nomenclature changes for part 103appear at 52 FR 11442, Apr. 8, 1987.

SUBPART E—Summons

31 C.F.R. 103.63

§103.63 Contents of summons.

(a) Summons for testimony. Any summonsissued under §103.61 of this part to compelthe appearance and testimony of a personshall state:(1) The name, title, address, and telephone

number of the person before whom theappearance shall take place (who maybe a person other than the persons who

are authorized to issue such a summonsunder §103.62 of this part);

(2) The address to which the person sum-moned shall report for the appearance;

(3) The date and time of the appearance;and

(4) The name, title, address, and telephonenumber of the person who has issuedthe summons.

(b) Summons of books, papers, records, or data.Any summons issued under §103.61 of thispart to require the production of books,papers, records, or other data shall describethe materials to be produced with reasonablespecificity, and shall state:(1) The name, title, address, and telephone

number of the person to whom thematerials shall be produced (who maybe a person other than the persons whoare authorized to issue such a summonsunder §103.62 of this part);

(2) The address at which the person sum-moned shall produce the materials, notto exceed 500 miles from any placewhere the financial institution operatesor conducts business in the UnitedStates;

(3) The specific manner of production,whether by personal delivery, by mail,or by messenger service;

(4) The date and time for production; and(5) The name, title, address, and telephone

number of the person who has issuedthe summons.

HISTORY:52 FR 23979, June 26, 1987.







SUBPART E—Summons

31 C.F.R. 103.64

§103.64 Service of summons.

(a) Who may serve.Any delegate of the Secre-tary authorized under §103.62 of this part toissue a summons, or any other person autho-rized by law to serve summonses or otherprocess, is hereby authorized to serve asummons issued under this part.

(b) Manner of service.Service of a summonsmay be made—

(1) Upon any person, by registered mail,return receipt requested, directed to theperson summoned;

(2) Upon a natural person by personaldelivery; or

(3) Upon any other person by delivery to anofficer, managing or general agent, orany other agent authorized to receiveservice of process.

(c) Certificate of service.The summons shallcontain a certificate of service to be signedby the server of the summons. On thehearing of an application for enforcement ofthe summons, the certificate of service signedby the person serving the summons shall beevidence of the facts it states.

HISTORY:52 FR 23979, June 26, 1987.





SUBPART E—Summons

31 C.F.R. 103.65

§103.65 Examination of witnessesand records.

(a) General. Any delegate of the Secretaryauthorized under §103.62 of this part toissue a summons, or any officer or employeeof the Treasury Department or any com-ponent thereof who is designated by thatperson (whether in the summons orotherwise), is hereby authorized to receiveevidence and to examine witnesses pursuantto the summons. Any person authorizedby law may administer any oaths and affir-mations that may be required under thissubpart.

(b) Testimony taken under oath.Testimony ofany person under this part may be takenunder oath, and shall be taken down inwriting by the person examining the personsummoned or shall be otherwise tran-scribed. After the testimony of a witness hasbeen transcribed, a copy of that transcriptshall be made available to the witness uponrequest, unless for good cause the personissuing the summons determines, under5 U.S.C. 555, that a copy should not beprovided. If such a determination has beenmade, the witness shall be limited toinspection of the official transcript of thetestimony.

(c) Disclosure of summons, testimony, or records.Unless the Secretary or a delegate of theSecretary listed under §103.62(a) of thispart so authorizes in writing, or it is other-wise required by law, no delegate of theSecretary listed under §103.62 (b) or (c)of this part or other officer or employee ofthe Treasury Department or any componentthereof shall—(1) Make public the name of any person

to whom a summons has been issuedunder this part, or release any informa-tion to the public concerning that personor the issuance of a summons to thatperson prior to the time and date set forthat person’s appearance or productionof records; or

(2) Disclose any testimony taken (includingthe name of the witness) or materialpresented pursuant to the summons, toany person other than an officer or



employee of the Treasury Departmentor of any component thereof.

Nothing in the preceding sentenceshall preclude a delegate of the Secre-tary, or other officer or employee ofthe Treasury Department or any com-ponent thereof, from disclosing testi-mony taken, or material presented pur-suant to a summons issued under thispart, to any person in order to obtainnecessary information for investigativepurposes relating to the performance ofofficial duties, or to any officer oremployee of the Department of Justicein connection with a possible violationof Federal law.

HISTORY:52 FR 23979, June 26, 1987.





SUBPART E—Summons

31 C.F.R. 103.66

§103.66 Enforcement of summons.

In the case of contumacy by, or refusal to obeya summons issued to, any person under this part,the Secretary or any delegate of the Secretarylisted under §103.62 of this part shall refer thematter to the Attorney General or delegate of theAttorney General (including any United StatesAttorney or Assistant United States Attorney, asappropriate), who may bring an action to compelcompliance with the summons in any court ofthe United States within the jurisdiction ofwhich the investigation which gave rise to the

summons being or has been carried on, thejurisdiction in which the person summoned isa resident, or the jurisdiction in which the per-son summoned carries on business or maybe found. When a referral is made by a dele-gate of the Secretary other than a delegatenamed in §103.62(a) of this part, promptnotification of the referral must be made tothe Director, Office of Financial Enforce-ment, Office of the Assistant Secretary (Enforce-ment). The court may issue an order requiringthe person summoned to appear before theSecretary or delegate of the Secretary toproduce books, papers, records, or other data,to give testimony as may be necessary inorder to explain how such material was com-piled and maintained, and to pay the costs ofthe proceeding. Any failure to obey the orderof the court may be punished by the courtas a contempt thereof. All process in anycase under this section may be served in anyjudicial district in which such person may befound.

HISTORY:52 FR 23979, June 26, 1987.





SUBPART E—Summons

31 C.F.R. 103.67

§103.67 Payment of expenses.

Persons summoned under this part shall bepaid the same fees and mileage for travel inthe United States that are paid witnesses inthe courts of the United States. The United



States shall not be liable for any other expenseincurred in connection with the production ofbooks, papers, records, or other data under thispart.

HISTORY:52 FR 23979, June 26, 1987.





SUBPART F—Administrative Rulings

31 C.F.R. 103.70

§103.70 Scope.

This subpart provides that the Assistant Secre-tary (Enforcement), or his designee, either uni-laterally or upon request, may issue administra-tive rulings interpreting the application ofpart 103.

HISTORY:52 FR 35546, Sept. 22, 1987.






31 C.F.R. 103.71

§103.71 Submitting requests.

(a) Each request for an administrative rulingmust be in writing and contain the followinginformation:(1) A complete description of the situation

for which the ruling is requested,(2) A complete statement of all material

facts related to the subject transaction,(3) A concise and unambiguous question to

be answered,(4) A statement certifying, to the best of the

requestor’s knowledge and belief, thatthe question to be answered is not appli-cable to any ongoing state or federalinvestigation, litigation, grand jury pro-ceeding, or proceeding before any othergovernmental body involving either therequestor, any other party to the subjecttransaction, or any other party withwhom the requestor has an agencyrelationship,

(5) A statement identifying any informationin the request that the requestor con-siders to be exempt from disclosureunder the Freedom of Information Act,5 U.S.C. 552, and the reason therefor,

(6) If the subject situation is hypothetical, astatement justifying why the particularsituation described warrants the issu-ance of a ruling,

(7) The signature of the person making therequest, or

(8) If an agent makes the request, the sig-nature of the agent and a statementcertifying the authority under which therequest is made.

(b) A request filed by a corporation shall besigned by a corporate officer and a requestfiled by a partnership shall be signed by apartner.

(c) A request may advocate a particular pro-posed interpretation and may set forth thelegal and factual basis for that interpretation.

(d) Requests shall be addressed to: Director,FinCEN, Office of the Assistant Secretary(Enforcement), U.S. Department of the Trea-sury, 1500 Pennsylvania Avenue NW.,Room 4320, Washington, DC 20220.

(e) The requester shall advise the Director,FinCEN, immediately in writing of any



subsequent change in any material fact orstatement submitted with a ruling request inconformity with paragraph (a) of this section.


HISTORY:52 FR 35546, Sept. 22, 1987.






31 C.F.R. 103.72

§103.72 Nonconforming requests.

The Director, Office of Financial Enforcement,shall notify the requester if the ruling requestdoes not conform with the requirements of§103.71. The notice shall be in writing and shalldescribe the requirements that have not beenmet. A request that is not brought into confor-mity with such requirements within 30 daysfrom the date of such notice, unless extendedfor good cause by the Office of FinancialEnforcement, shall be treated as though it werewithdrawn.


HISTORY:52 FR 35546, Sept. 22, 1987.


NOTES:NOTES APPLICABLE TO ENTIRE TITLE:EDITORIAL NOTE: Other regulations issued by Departmentof the Treasury appear in Title 12, Chapter I; Title 19, Chap-ter I; Title 26, Chapter I; Title 27, Chapter I; Title 31, Chap-

ters II, IV, V, VI, and VII, and Title 48, Chapter 10. CROSSREFERENCE: General Accounting Office: See 4 C.F.R.Chapter I.




31 C.F.R. 103.73

§103.73 Oral communications.

(a) The Office of the Assistant Secretary(Enforcement) will not issue administrativerulings in response to oral requests. Oralopinions or advice by Treasury, the CustomsService, the Internal Revenue Service, theOffice of the Comptroller of the Currency,or any other bank supervisory agency per-sonnel, regarding the interpretation andapplication of this part, do not bind theTreasury Department and carry no preceden-tial value.

(b) A person who has made a ruling request inconformity with §103.71 may request anopportunity for oral discussion of the issuespresented in the request. The request shouldbe made to the Director, Office of FinancialEnforcement, and any decision to grant sucha conference is wholly within the discretionof the Director. Personal conferences ortelephone conferences may be scheduledonly for the purpose of affording therequester an opportunity to discuss freelyand openly the matters set forth in theadministrative ruling request. Accordingly,the conferees will not be bound by anyargument or position advocated or agreedto, expressly or impliedly, during the con-ference. Any new arguments or facts putforth by the requester at the meeting must bereduced to writing by the requester andsubmitted in conformity with §103.71 beforethey may be considered in connection withthe request.


HISTORY:52 FR 35546, Sept. 22, 1987.








31 C.F.R. 103.74

§103.74 Withdrawing requests.

A person may withdraw a request for an admin-istrative ruling at any time before the ruling hasbeen issued.

HISTORY:52 FR 35546, Sept. 22, 1987.






31 C.F.R. 103.75

§103.75 Issuing rulings.

The Assistant Secretary (Enforcement), or hisdesignee may issue a written ruling interpreting

the relationship between part 103 and eachsituation for which such a ruling has beenrequested in conformity with §103.71. A rulingissued under this section shall bind the TreasuryDepartment only in the event that the requestdescribes a specifically identified actual situa-tion. A ruling issued under this section shallhave precedential value, and hence may berelied upon by others similarly situated, only ifit is published or will be published by the Officeof Financial Enforcement in the FEDERALREGISTER. Rulings with precedential valuewill be published periodically in the FederalRegister and yearly in the Appendix to this part.All rulings with precedential value will beavailable by mail to any person upon writtenrequest specifically identifying the ruling sought.Treasury will make every effort to respond toeach requestor within 90 days of receiving arequest.


HISTORY:52 FR 35546, Sept. 22, 1987.






31 C.F.R. 103.76

§103.76 Modifying or rescindingrulings.

(a) The Assistant Secretary (Enforcement), orhis designee may modify or rescind anyruling made pursuant to §103.75:(1) When, in light of changes in the statute

or regulations, the ruling no longer sets



forth the interpretation of the AssistantSecretary (Enforcement) with respect tothe described situation,

(2) When any fact or statement submitted inthe original ruling request is found to bematerially inaccurate or incomplete, or

(3) For other good cause.(b) Any person may submit to the Assistant

Secretary (Enforcement) a written requestthat an administrative ruling be modified orrescinded. The request should conform tothe requirements of §103.71, explain whyrescission or modification is warranted, andrefer to any reasons in paragraph (a) of thissection that are relevant. The request mayadvocate an alternative interpretation andmay set forth the legal and factual basis forthat interpretation.

(c) Treasury shall modify an existing adminis-trative ruling by issuing a new ruling thatrescinds the relevant prior ruling. Oncerescinded, an administrative ruling shall nolonger have any precedential value.

(d) An administrative ruling may be modified orrescinded retroactively with respect to oneor more parties to the original ruling requestif the Assistant Secretary determines that:(1) A fact or statement in the original ruling

request was materially inaccurate orincomplete,

(2) The requestor failed to notify in writingthe Office of Enforcement of a materialchange to any fact or statement in theoriginal request, or

(3) A party to the original request acted inbad faith when relying upon the ruling.


HISTORY:52 FR 35546, Sept. 22, 1987.






31 C.F.R. 103.77

§103.77 Disclosing information.

(a) Any part of any administrative ruling, includ-ing names, addresses, or information relatedto the business transactions of private par-ties, may be disclosed pursuant to a requestunder the Freedom of Information Act,5 U.S.C. 552. If the request for an adminis-trative ruling contains information whichthe requestor wishes to be considered forexemption from disclosure under the Free-dom of Information Act, the requestor shouldclearly identify such portions of the requestand the reasons why such information shouldbe exempt from disclosure.

(b) A requestor claiming an exemption fromdisclosure will be notified, at least 10 daysbefore the administrative ruling is issued,of a decision not to exempt any of suchinformation from disclosure so that theunderlying request for an administrative rul-ing can be withdrawn if the requestor sochooses.


HISTORY:52 FR 35546, Sept. 22, 1987.







bank secrecy act section 201 - federal reserve board

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