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8000 - FDIC Miscellaneous Statutes and Regulations
Subpart B—Reports Required To Be
Made
§ 103.12 Determination by the Secretary.
The Secretary hereby determines that the reports required by this
subpart have a high degree of usefulness in criminal, tax, or
regulatory investigations or proceedings.
[Codified to 31 C.F.R. § 103.12]
[Section 103.21 redesignated as § 103.20 at 61 Fed. Reg. 4331,
February 5, 1996, effective April 1, 1996; further redesignated as
§ 103.15 at 65 Fed. Reg. 13692, March 14, 2000, effective April 13,
2000, further redesignated as § 103.12 at 71 Fed. Reg. 26219, May 4,
2006, effective June 5, 2006]
§ 103.15 Reports by mutual funds of suspicious transactions.
(a) General. (1) Every investment company (as defined in
section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a--3)
("Investment Company Act") that is an open-end company (as
defined in section 5 of the Investment Company Act (15 U.S.C. 80a--5))
and that is registered, or is required to register, with the Securities
and Exchange Commission pursuant to that Act (for purposes of this
section, a "mutual fund"), shall file with the Financial Crimes
Enforcement Network, to the extend and in the manner required by this
section, a report of any suspicious transaction relevant to a possible
violation of law or regulation. A mutual fund may also file with the
Financial Crimes Enforcement Network a report of any suspicious
transaction that it believes is relevant to the possible violation of
any law or regulation, but whose reporting is not required by this
section. Filing a report of a suspicious transaction does not relieve a
mutual fund from the responsibility of complying with any other
reporting requirements imposed by the Securities and Exchange
Commission.
(2) A transaction requires reporting under this section if it is
conducted or attempted by, at, or through a mutual fund, it involves or
aggregates funds or other assets of at least $5,000, and the mutual
fund knows, suspects, or has reason to suspect that the transaction (or
a pattern of transactions of which the transaction is a part):
(i) Involves funds derived from illegal activity or is intended
or conducted in order to hide or disguise funds or assets derived from
illegal activity (including, without limitation, the ownership, nature,
source, location, or control of such funds or assets) as part of a plan
to violate or evade any Federal law or regulation or to avoid any
transaction reporting requirement under Federal law or regulation;
(ii) Is designed, whether through structuring or other means, to
evade any requirements of this part or any other regulations
promulgated under the Bank Secrecy Act, Public Law 91--508, as amended,
codified at 12 U.S.C. 1829b, 12 U.S.C. 1951--1959, and 31 U.S.C.
5311--5314, 5316--5332;
(iii) Has no business or apparent lawful purpose or is not the
sort in which the particular customer would normally be expected to
engage, and the mutual fund knows of no reasonable explanation for the
transaction after examining the available facts, including the
background and possible purpose of the transaction; or
(iv) Involves use of the mutual fund to facilitate criminal
activity.
(3) More than one mutual fund may have an obligation to report
the same transaction under this section, and other financial
institutions may have separate obligations to report suspicious
activity with respect to the same transaction pursuant to other
provisions of this part. In those instances, no more than one report is
required to be filed by the mutual fund(s) and other financial
institution(s) involved in the transaction, provided that the
report
{{6-30-06 p.8486.02-A}}filed contains
all relevant facts, including the name of each financial institution
and the words "joint filing" in the narrative section, and each
institution maintains a copy of the report filed, along with any
supporting documentation.
(b) Filing and notification procedures--(1) What
to file. A suspicious transaction shall be reported by completing
a Suspicious Activity Report by Securities and Futures Industries
("SAR--SF"), and collecting and maintaining supporting
documentation as required by paragraph (c) of this section.
(2) Where to file. Form SAR--SF shall be filed with
the Financial Crimes Enforcement Network in accordance with the
instructions to the Form SAR--SF.
(3) When to file. A Form SAR--SF shall be filed no
later than 30 calendar days after the date of the initial detection by
the reporting mutual fund of facts that may constitute a basis for
filing a Form SAR--SF under this section. If no suspect is identified
on the date of such initial detection, a mutual fund may delay filing a
Form SAR--SF for an additional 30 calendar days to identify a suspect,
but in no case shall reporting be delayed more than 60 calendar days
after the date of such initial detection.
(4) Mandatory notification to law enforcement. In
situations involving violations that require immediate attention, such
as suspected terrorist financing or ongoing money laundering schemes, a
mutual fund shall immediately notify by telephone an appropriate law
enforcement authority in addition to filing timely a Form SAR--SF.
(5) Voluntary notification to the Financial Crimes
Enforcement Network or the Securities and Exchange Commission.
Mutual funds wishing voluntarily to report suspicious transactions
that may relate to terrorist activity may call the Financial Crimes
Enforcement Network's Financial Institutions Hotline at
1--866--556--3974 in addition to filing timely a Form SAR--SF if
required by this section. The mutual fund may also, but is not required
to, contact the Securities and Exchange Commission to report in such
situations.
(c) Retention of records. A mutual fund shall maintain a
copy of any Form SAR--SF filed by the fund or on its behalf (including
joint reports), and the original (or business record equivalent) of any
supporting documentation concerning any Form SAR--SF that it files (or
is filed on its behalf), for a period of five years from the date of
filing the Form SAR--SF. Supporting documentation shall be identified
as such and maintained by the mutual fund, and shall be deemed to have
been filed with the Form SAR--SF. The mutual fund shall make all
supporting documentation available to the Financial Crimes Enforcement
Network, any other appropriate law enforcement agencies or federal or
state securities regulators, and for purposes of an examination of a
broker-dealer pursuant to § 103.19(g) regarding a joint report, to a
self-regulatory organization (as defined in section 3(a)(26) of the
Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(26)) registered with
the Securities and Exchange Commission, upon request.
(d) Confidentiality of reports. No mutual fund, and no
director, officer, employee, or agent of any mutual fund, who reports a
suspicious transaction under this part (whether such a report is
required by this section or made voluntarily), may notify any person
involved in the transaction that the transaction has been reported,
except to the extent permitted by paragraph (a)(3) of this section. Any
person subpoenaed or otherwise required to disclose a Form SAR--SF or
the information contained in a Form SAR--SF, including a Form SAR--SF
filed jointly with another financial institution involved in the same
transaction (except where such disclosure is requested by the Financial
Crimes Enforcement Network, the Securities and Exchange Commission,
another appropriate law enforcement or regulatory agency, or, in the
case of a joint report involving a broker-dealer, a self-regulatory
organization registered with the Securities and Exchange Commission
conducting an examination of such broker-dealer pursuant to
§ 103.19(g)), shall decline to produce Form SAR--SF or to provide any
information that would disclose that a Form SAR--SF has been prepared
or filed, citing this paragraph (d) and 31 U.S.C. 5318(g)(2), and shall
notify the Financial Crimes Enforcement Network of any such request and
its response thereto.
(e) Limitation of liability. A mutual fund, and any
director, officer, employee, or agent of such mutual fund, that makes a
report of any possible violation of law or regulation pursuant to this
section, including a joint report (whether such report is required by
this section or made voluntarily) shall be protected from liability for
any disclosure contained in, or for failure to disclose the fact of,
such report, or both, to the extent provided in 31 U.S.C.
5318(g)(3).
{{6-30-06 p.8486.02-B}}
(f) Examinations and enforcement. Compliance with this
section shall be examined by the Department of the Treasury, through
the Financial Crimes Enforcement Network or its delegees, under the
terms of the Bank Secrecy Act. Failure to satisfy the requirements of
this section may constitute a violation of the reporting rules of the
Bank Secrecy Act and of this part.
(g) Effective date. This section applies to transactions
occurring after October 31, 2006.
[Codified to 31 C.F.R. § 103.15]
[Section 103.15 added at 71 Fed. Reg. 26219, May 4, 2006, effective
June 5, 2006]
§ 103.16 Reports by insurance companies of suspicious
transactions.
(a) Definitions. For purposes of this section:
(1) Annuity contract means any agreement between the
insurer and the contract owner to pay out a fixed or variable income
stream for a period of time.
(2) Bank has the same meaning as provided in
§ 103.11(c).
(3) Broker-dealer in securities has the same meaning
as provided in § 103.11(f).
(4) Covered product means:
(i) A permanent life insurance policy, other than a group life
insurance policy;
(ii) An annuity contract, other than a group annuity contract; or
(iii) Any other insurance product with features of cash value or
investment.
(5) Group annuity contract means a master contract
providing annuities to a group of persons under a single contract.
(6) Group life insurance policy means any life
insurance policy under which a number of persons and their dependents,
if appropriate, are insured under a single policy.
(7) Insurance agent means a sales and/or service
representative of an insurance company. The term "insurance
agent" encompasses any person that sells, markets, distributes, or
services an insurance company's covered products, including, but not
limited to, a person who represents only one insurance company, a
person who represents more than one insurance company, and a bank or
broker-dealer in securities that sells any covered product of an
insurance company.
(8) Insurance broker means a person who, by acting as
the customer's representative, arranges and/or services covered
products on behalf of the customer.
(9) Insurance company or insurer. (i) Except as
provided in paragraph (a)(9)(ii) of this section, the term
"insurance company" or "insurer" means any person engaged
within the United States as a business in the issuing or underwriting
of any covered product.
(ii) The term "insurance company" or "insurer" does
not include an insurance agent or insurance broker.
(10) Permanent life insurance policy means an
agreement that contains a cash value or investment element and that
obligates the insurer to indemnify or to confer a benefit upon the
insured or beneficiary to the agreement contingent upon the death of
the insured.
(11) Person has the same meaning as provided in
§ 103.11(z).
(12) United States has the same meaning as provided in
§ 103.11(nn).
(b) General. (1) Each insurance company shall file with
the Financial Crimes Enforcement Network, to the extent and in the
manner required by this section, a report of any suspicious transaction
involving a covered product that is relevant to a possible violation of
law or regulation. An insurance company may also file with the
Financial Crimes Enforcement Network by using the form specified in
paragraph (c)(1) of this section or otherwise, a report of any
suspicious transaction that it believes is relevant to the possible
violation of any law or regulation but the reporting of which is not
required by this section.
(2) A transaction requires reporting under this section if it is
conducted or attempted by, at, or through an insurance company, and
involves or aggregates at least $5,000 in funds or other assets, and
the insurance company knows, suspects, or has reason to suspect that
the transaction (or a pattern of transactions of which the transaction
is a part);
(i) Involves funds derived from illegal activity or is intended
or conducted in order to hide or disguise funds or assets derived from
illegal activity (including, without limitation, the ownership, nature,
source, location, or control of such funds or assets) as part of a plan
to violate or evade any federal law or regulation or to avoid any
transaction reporting requirement under federal law or
regulation;
{{6-30-06 p.8486.02-B-1}}
(ii) Is designed, whether through structuring or other means, to
evade any requirements of this part or of any other regulations
promulgated under the Bank Secrecy Act, Public Law 91--508, as amended,
codified at 12 U.S.C. 1829b, 12 U.S.C. 1951--1959, and 31 U.S.C.
5311--5314; 5316--5332;
(iii) Has no business or apparent lawful purpose or is not the
sort in which the particular customer would normally be expected to
engage, and the insurance company knows of no reasonable explanation
for the transaction after examining the available facts, including the
background and possible purpose of the transaction; or
(iv) Involves use of the insurance company to facilitate criminal
activity.
(3) (i) An insurance company is responsible for reporting
suspicious transactions conducted through its insurance agents and
insurance brokers. Accordingly, an insurance company shall establish
and implement policies and procedures reasonably designed to obtain
customer-related information necessary to detect suspicious activity
from all relevant sources, including from its insurance agents and
insurance brokers, and shall report suspicious activity based on such
information.
(ii) Certain insurance agents may have a separate obligation to
report suspicious activity pursuant to other provisions of this part.
In those instances, no more than one report is required to be filed by
the financial institutions involved in the transaction, as long as the
report filed contains all relevant facts, including the names of both
institutions and the words "joint filing" in the narrative
section, and both institutions maintain a copy of the report filed,
along with any supporting documentation.
(iii) An insurance company that issues variable insurance
products funded by separate accounts that meet the definition of a
mutual fund in § 103.15(a)(1) shall file reports of suspicious
transactions pursuant to § 103.15.
(c) Filing procedures--(1) What to file. A
suspicious transaction shall be reported by completing a Suspicious
Activity Report by Insurance Companies (SAR--IC), and collecting and
maintaining supporting documentation as required by paragraph (e) of
this section.
(2) Where to file. A SAR--IC shall be filed with the
Financial Crimes Enforcement Network as indicated in the instructions
to the SAR--IC.
(3) When to file. A SAR--IC shall be filed no later
than 30 calendar days after the date of the initial detection by the
insurance company of facts that may constitute a basis for filing a
SAR--IC under this section. If no suspect is identified on the date of
such initial detection, an insurance company may delay filing a SAR--IC
for an additional 30 calendar days to identify a suspect, but in no
case shall reporting be delayed more than 60 calendar days after the
date of such initial detection. In situations that require immediate
attention, such as terrorist financing or ongoing money laundering
schemes, the insurance company shall immediately notify by telephone an
appropriate law enforcement authority in addition to filing timely a
SAR--IC. Insurance companies wishing voluntarily to report suspicious
transactions that may relate to terrorist activity may call the
Financial Crimes Enforcement Networks' Financial Institutions Hotline
at 1--866--556--3974 in addition to filing timely a SAR--IC if required
by this section.
(d) Exception. An insurance company is not required to
file a SAR--IC to report the submission to it of false or fraudulent
information to obtain a policy or make a claim, unless the company has
reason to believe that the false or fraudulent submission relates to
money laundering or terrorist financing.
(e) Retention of records. An insurance company shall
maintain a copy of any SAR--IC filed and the original or business
record equivalent of any supporting documentation for a period of five
years from the date of filing the SAR--IC. Supporting documentation
shall be identified as such and maintained by the insurance company and
shall be deemed to have been filed with the SAR--IC. When an insurance
company has filed or is identified as a filer in a joint Suspicious
Activity Report, the insurance company shall maintain a copy of such
joint report (together with copies of any supporting documentation) for
a period of five years from the date of filing. An insurance company
shall make all supporting documentation available to the Financial
Crimes Enforcement Network and any other appropriate law enforcement
agencies or supervisory agencies upon request.
(f) Confidentiality of reports; limitation of liability.
No insurance company, and no director, officer, employee, agent, or
broker of any insurance company, who reports a suspicious transaction
under this part (whether such a report is required by this section or
made voluntarily), may notify any person involved in the transaction
that the transaction has
{{6-30-06 p.8486.02-B-2}}been reported,
except to the extent permitted by paragraph (b)(3) of this section.
Thus, any insurance company subpoenaed or otherwise requested to
disclose a SAR--IC or the information contained in a SAR--IC (or a copy
of a joint Suspicious Activity Report filed with another financial
institution involved in the same transaction, including an insurance
agent), except where such disclosure is requested by the Financial
Crimes Enforcement Network or another appropriate law enforcement or
supervisory agency, shall decline to produce the Suspicious Activity
Report or to provide any information that would disclose that a
Suspicious Activity Report has been prepared or filed, citing as
authority 31 CFR 103.16 and 31 U.S.C. 5318(g)(2), and shall notify the
Financial Crimes Enforcement Network of any such request and its
response thereto. An insurance company, and any director, officer,
employee, agent, or broker of such insurance company, that makes a
report pursuant to this section, including a joint report (whether such
report is required by this section or made voluntarily) shall be
protected from liability for any disclosure contained in, or for
failure to disclose the fact of, such report, or both, to the extent
provided by 31 U.S.C. 5318(g)(3).
(g) Compliance. Compliance with this section shall be
examined by the Department of the Treasury, through the Financial
Crimes Enforcement Network or its delegees, under the terms of the Bank
Secrecy Act. Failure to comply with the requirements of this section
may constitute a violation of the reporting rules of the Bank Secrecy
Act and of this part.
(h) Suspicious transaction reporting requirements for
insurance companies registered or required to register with the
Securities and Exchange Commission as broker-dealers in
securities. An insurance company that is registered or required to
register with the Securities and Exchange Commission as a broker-dealer
in securities shall be deemed to have satisfied the requirements of
this section for its broker-dealer activities to the extent that the
company complies with the reporting requirements applicable to such
activities pursuant to § 103.19.
(i) Applicability date. This section applies to
transactions occurring after May 2, 2006.
[Codified to 31 C.F.R. § 103.16]
[Section 103.16 added at 70 Fed. Reg. 66767, November 3, 2005,
effective December 5, 2005, the applicability date for this rule
applies to transactions occuring after May 2, 2006. See 31 CFR
103.16(h) of the final rule contained in this document; amended at 71
Fed. Reg. 26220, May 4, 2006, effective June 5,
2006]
§ 103.17 Reports by futures commission merchants and
introducing brokers in commodities of suspicious transactions.
(a) General--(1) Every futures commission merchant
("FCM") and introducing broker in commodities ("IB--C")
within the United States shall file with FinCEN, to the extent and in
the manner required by this section, a report of any suspicious
transaction relevant to a possible violation of law or regulation. An
FCM or IB--C may also file with FinCEN a report of any suspicious
transaction that it believes is relevant to the possible violation of
any law or regulation but whose reporting is not required by this
section. Filing a report of a suspicious transaction does not relieve
an FCM or IB--C from the responsibility of complying with any other
reporting requirements imposed by the Commodity Futures Trading
Commission ("CFTC") or any registered futures association or
registered entity as those terms are defined in the Commodity Exchange
Act ("CEA"), 7 U.S.C. 21 and 7 U.S.C. 1a(29).
(2) A transaction requires reporting under the terms of this
section if it is conducted or attempted by, at, or through an FCM or
IB--C, it involves or aggregates funds or other assets of at least
$5,000, and the FCM or IB--C knows, suspects, or has reason to suspect
that the transaction (or a pattern of transactions of which the
transaction is a part):
(i) Involves funds derived fro illegal activity or is intended or
conducted in order to hide or disguise funds or assets derived from
illegal activity (including, without limitation, the ownership, nature,
source, location, or control of such funds or assets) as part of a plan
to violate or evade any federal law or regulation or to avoid any
transaction reporting requirement under federal law or regulation;
(ii) Is designed, whether through structuring or other means, to
evade any requirements of this part or of any other regulations
promulgated under the Bank Secrecy
{{6-30-06 p.8486.02-B-3}}Act
("BSA"), Public Law 91--508, as amended, codified at 12 U.S.C.
1829b, 12 U.S.C. 1951--1959, and 31 U.S.C. 5311--5314, 5316--5332;
(iii) Has no business or apparent lawful purpose or is not the
sort in which the particular customer would normally be expected to
engage, and the FCM or IB--C knows of no reasonable explanation for the
transaction after examining the available facts, including the
background and possible purpose of the transaction; or
(iv) Involves use of the FCM or IB--C to facilitate criminal
activity.
(3) The obligation to identify and properly and timely to report
a suspicious transaction rests with each FCM and IB--C involved in the
transaction, provided that no more than one report is required to be
filed by any of the FCMs or IB--Cs involved in a particular
transaction, so long as the report filed contains all relevant facts.
(b) Filing procedures--(1) What to file. A
suspicious transaction shall be reported by completing a Suspicious
Activity Report-Securities and Futures Industry ("SAR--SF"), and
collecting and maintaining supporting documentation as required by
paragraph (d) of this section.
(2) Where to file. The SAR--SF shall be filed with
FinCEN in a central location, to be determined by FinCEN, as indicated
in the instructions to the SAR--SF.
(3) When to file. A SAR--SF shall be filed no later
than 30 calendar days after the date of the initial detection by the
reporting FCM or IB--C of facts that may constitute a basis for filing
a SAR--SF under this section. If no suspect is identified on the date
of such initial detection, an FCM or IB--C may delay filing a SAR--SF
for an additional 30 calendar days to identify a suspect, but in no
case shall reporting be delayed more than 60 calendar days after the
date of such initial detection. In situations involving violations that
require immediate attention, such as terrorist financing or ongoing
money laundering schemes, the FCM or IB--C shall immediately notify by
telephone an appropriate law enforcement authority in addition to
filing timely a SAR--SF. FCMs and IB--Cs wishing voluntarily to report
suspicious transactions that may relate to terrorist activity may call
FinCEN's Financial Institutions Hotline at 1--866--556--3974 in
addition to filing timely a SAR--SF if required by this section. The
FCM or IB--C may also, but is not required to, contact the CFTC to
report in such situations.
(c) Exceptions.--(1) An FCM or IB--C is not required to
file a SAR--SF to report--
(i) A robbery or burglary committed or attempted of the FCM or
IB--C that is reported to appropriate law enforcement authorities;
(ii) A violation otherwise required to be reported under the CEA
(7 U.S.C. 1 et seq.), the regulations of the CFTC (17 CFR
chapter I), or the rules of any registered futures association or
registered entity as those terms are defined in the CEA, 7 U.S.C. 21
and 7 U.S.C. 1a(29), by the FCM or IB--C or any of its officers,
directors, employees, or associated persons, other than a violation of
17 CFR 42.2, as long as such violation is appropriately reported to the
CFTC or a registered futures association or registered entity.
(2) An FCM or IB--C may be required to demonstrate that it has
relied on an exception in paragraph (c)(1) of this section, and must
maintain records of its determinations to do so for the period
specified in paragraph (d) of this section. To the extent that a Form
8--R, 8--T, U--5, or any other similar form concerning the transaction
is filed consistent with CFTC, registered futures association, or
registered entity rules, a copy of that form will be a sufficient
record for the purposes of this paragraph (c)(2).
(d) Retention of records. An FCM or IB--C shall maintain
a copy of any SAR--SF filed and the original or business record
equivalent of any supporting documentation for a period of five years
form the date of filing the SAR--SF. Supporting documentation shall be
identified as such and maintained by the FCM or IB--C, and shall be
deemed to have been filed with the SAR--SF. An FCM or IB--C shall make
all supporting documentation available to FinCEN, the CFTC, or any
other appropriate law enforcement agency or regulatory agency, and, for
purposes of paragraph (g) of this section, to any registered futures
association, registered entity, or self-regulatory organization
("SRO") (as defined in section 3(a)(26) of the Securities
Exchange Act of 1934, 15 U.S.C. 78c(a)(26)), upon request.
(e) Confidentiality of reports. No financial
institution, and no director, officer, employee, or agent of any
financial institution, who reports a suspicious transaction under this
part, may notify any person involved in the transaction that the
transaction has been reported, except to the extent permitted by
paragraph (a)(3) of this section. Thus, any person
{{6-30-06 p.8486.02-B-4}}subpoenaed or
otherwise requested to disclose a SAR--SF or the information contained
in a SAR--SF, except where such disclosure is requested by FinCEN, the
CFTC, another appropriate law enforcement or regulatory agency, or the
purposes of paragraph (g) of this section, a registered futures
association, registered entity, or SRO shall decline to produce the
SAR--SF or to provide any information that would disclose that a
SAR--SF has been prepared or filed, citing this paragraph and 31 U.S.C.
5318(g)(2), and shall notify FinCEN of any such request and its
response thereto.
(f) Limitation of liability. An FCM or IB--C, and any
director, officer, employee, or agent of such FCM or IB--C, that makes
a report of any possible violation of law or regulation pursuant to
this section or any other authority (or voluntarily) shall not be
liable to any person under any law or regulation of the United States
(or otherwise to the extent also provided in 31 U.S.C. 5318(g)(3),
including in any arbitration or reparations proceeding) for any
disclosure contained in, or for failure to disclose the fact of, such
report.
(g) Examination and enforcement. Compliance with this
section shall be examined by the Department of the Treasury, through
FinCEN or its delegates, under the terms of the BSA. Reports filed
under this section or § 103.19 (including any supporting
documentation), and documentation demonstrating reliance on an
exception under paragraph (c) of this section or § 103.19, shall be
made available, upon request, to the CFTC, Securities and Exchange
Commission, and any registered futures association, registered entity,
or SRO, examining an FCM, IB--C, or broker or dealer in securities for
compliance with the requirements of this section or § 103.19. Failure
to satisfy the requirements of this section may constitute a violation
of the reporting rules of the BSA or of this part.
(h) Effective date. This section applies to transactions
occurring after May 18, 2004.
[Codified to 31 C.F.R. § 103.17]
[Source: Section 103.17 added at 68 Fed. Reg. 65398, November 20,
2003, effective December 22, 2003]
§ 103.18 Reports by banks of suspicious transactions.
(a) General. (1) Every bank shall file with the
Treasury Department, to the extent and in the manner required by this
section, a report of any suspicious transaction relevant to a possible
violation of law or regulation. A bank may also file with the Treasury
Department by using the Suspicious Activity Report specified in
paragraph (b)(1) of this section or otherwise, a report of any
suspicious transaction that it believes is relevant to the possible
violation of any law or regulation but whose reporting is not required
by this section.
(2) A transaction requires reporting under the terms of this
section if it is conducted or attempted by, at, or through the bank, it
involves or aggregates at least $5,000 in funds or other assets, and
the bank knows, suspects, or has reason to suspect that:
(i) The transaction involves funds derived from illegal
activities or is intended or conducted in order to hide or disguise
funds or assets derived from illegal activities (including, without
limitation, the ownership, nature, source, location, or control of such
funds or assets) as part of a plan to violate or evade any federal law
or regulation or to avoid any transaction reporting requirement under
federal law or regulation;
(ii) The transaction is designed to evade any requirements of
this part or of any other regulations promulgated under the Bank
Secrecy Act, Pub. L. 91-508, as amended, codified 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 or apparent lawful purpose
or is not the sort in which the particular customer would normally be
expected to engage, and the bank knows of no reasonable explanation for
the transaction after examining the available facts, including the
background and possible purpose of the transaction.
(b) Filing procedures--(1) What to file. A
suspicious transaction shall be reported by completing a Suspicious
Activity Report ("SAR") and collecting and maintaining supporting
documentation as required by paragraph (d) of this section.
(2) Where to file. The SAR shall be filed with FinCEN
in a central location, to be determined by FinCEN, as indicated in the
instructions to the SAR.
(3) When to file. A bank is required to file a SAR no
later than 30 calendar days after the date of initial detection by the
bank of facts that may constitute a basis for filing
{{6-30-06 p.8486.02-B-5}}a SAR. If no
suspect was identified on the date of the detection of the incident
requiring the filing, a bank may delay filing a SAR for an additional
30 calendar days to identify a suspect. In no case shall reporting be
delayed more than 60 calendar days after the date of initial detection
of a reportable transaction. In situations involving violations that
require immediate attention, such as, for example, ongoing money
laundering schemes, the bank shall immediately notify, by telephone, an
appropriate law enforcement authority in addition to filing timely a
SAR.
(c) Exceptions. A bank is not required to file a SAR
for a robbery or burglary committed or attempted that is reported to
appropriate law enforcement authorities, or for lost, missing,
counterfeit, or stolen securities with respect to which the bank files
a report pursuant to the reporting requirements of
17 CFR 240.17f-1.
(d) Retention of records. A bank shall maintain a copy
of any SAR filed and the original or business record equivalent of any
supporting documentation for a period of five years from the date of
filing the SAR. Supporting documentation shall be identified, and
maintained by the bank as such, and shall be deemed to have been filed
with the SAR. A bank shall make all supporting documentation available
to FinCEN and any appropriate law enforcement agencies or bank
supervisory agencies upon request.
(e) Confidentiality of reports; limitation of liability.
No bank or other financial institution, and no director, officer,
employee, or agent of any bank or other financial institution, who
reports a suspicious transaction under this part, may notify any person
involved in the transaction that the transaction has been reported.
Thus, any person subpoenaed or otherwise requested to disclose a SAR or
the information contained in a SAR, except where such disclosure is
requested by FinCEN or an appropriate law enforcement or bank
supervisory agency, shall decline to produce the SAR or to provide any
information that would disclose that a SAR has been prepared or filed,
citing this paragraph (e) and 31
U.S.C. 5318(g)(2), and shall notify FinCEN of any such request
and its response thereto. A bank, and any director, officer, employee,
or agent of such bank, that makes a report pursuant to this section
(whether such report is required by this section or is made
voluntarily) shall be protected from liability for any disclosure
contained in, or for failure to disclose the fact of such report, or
both, to the full extent provided by 31 U.S.C. 5318(g)(3).
(f) Compliance. Compliance with this section shall be
audited by the Department of the Treasury, through FinCEN or its
delegees under the terms of the Bank Secrecy Act. Failure to satisfy
the requirements of this section may be a violation of the reporting
rules of the Bank Secrecy Act and of this part. Such failure may also
violate provisions of Title 12 of the Code of Federal Regulations.
[Codified to 31 C.F.R. § 103.18]
[Section 103.21 added at 61 Fed. Reg. 4331, February 5,
1996, effective April 1, 1996; amended at 61 Fed. Reg. 14249, April 1,
1996; 61 Fed. Reg. 18250, April 25, 1996; further redesignated at 65
Fed. Reg. 13692, March 14, 2000, effective April 13,
2000]
§ 103.19 Reports by brokers or dealers in securities of
suspicious transactions.
(a) General. (1) Every broker or dealer in securities
within the United States (for purposes of this section, a
"broker-dealer") shall file with FinCEN, to the extent and in the
manner required by this section, a report of any suspicious transaction
relevant to a possible violation of law or regulation. A broker-dealer
may also file with FinCEN a report of any suspicious transaction that
it believes is relevant to the possible violation of any law or
regulation but whose reporting is not required by this section. Filing
a report of a suspicious transaction does not relieve a broker-dealer
from the responsibility of complying with any other reporting
requirements imposed by the Securities and Exchange Commission or a
self-regulatory organization ("SRO") (as defined in section
3(a)(26) of the Securities Exchange Act of 1934,
15 U.S.C. 78c(a)(26)).
(2) A transaction requires reporting under the terms of this
section if it is conducted or attempted by, at, or through a
broker-dealer, it involves or aggregates funds or other
{{6-30-06 p.8486.02-B-6}}assets of at
least $5,000, and the broker-dealer knows, suspects, or has reason to
suspect that the transaction (or a pattern of transactions of which the
transaction is a part):
(i) Involves funds derived from illegal activity or is intended
or conducted in order to hide or disguise funds or assets derived from
illegal activity (including, without limitation, the ownership, nature,
source, location, or control of such funds or assets) as part of a plan
to violate or evade any federal law or regulation or to avoid any
transaction reporting requirement under federal law or regulation;
(ii) Is designed, whether through structuring or other means, to
evade any requirements of this part or of any other regulations
promulgated under the Bank Secrecy Act, Public Law 91-508, as amended,
codified at 12 U.S.C. 1829b,
12 U.S.C. 1951-1959, and
31 U.S.C. 5311--5332;
(iii) Has no business or apparent lawful purpose or is not the
sort in which the particular customer would normally be expected to
engage, and the broker-dealer knows of no reasonable explanation for
the transaction after examining the available facts, including
background and possible purpose of the transaction; or
(iv) Involves use of the broker-dealer to facilitate criminal
activity.
(3) The obligation to identify and properly and timely to report
a suspicious transaction rests with each broker-dealer involved in the
transaction, provided that no more than one report is required to be
filed by the broker-dealers involved in a particular transaction (so
long as the report filed contains all relevant facts).
(b) Filing procedures -- (1) What to file.
A suspicious transaction shall be reported by completing a
Suspicious Activity Report -- Brokers or Dealers in Securities
("SAR-S-F"), and collecting and maintaining supporting
documentation as required by paragraph (d) of this section.
(2) Where to file. The SAR-S-F shall be filed with
FinCEN in a central location, to be determined by FinCEN, as indicated
in the instructions to the SAR-S-F.
(3) When to file. A SAR-S-F shall be filed no later
than 30 calendar days after the date of the initial detection by the
reporting broker-dealer of facts that may constitute a basis for filing
a SAR-S-F under this section. If no suspect is identified on the date
of such initial detection, a broker-dealer may delay filing a SAR-S-F
for an additional 30 calendar days to identify a suspect, but in no
case shall reporting be delayed more than 60 calendar days after the
date of such initial detection. In situations involving violations that
require immediate attention, such as terrorist financing or ongoing
money laundering schemes, the broker-dealer shall immediately notify by
telephone an appropriate law enforcement authority in addition to
filing timely a SAR-S-F. Broker-dealers wishing voluntarily to report
suspicious transactions that may relate to terrorist activity may call
FinCEN's Financial Institutions Hotline at 1-866-556-3974 in addition
to filing timely a SAR-S-F if required by this section. The
broker-dealer may also, but is not required to, contact the Securities
and Exchange Commission to report in such situations.
(c) Exceptions. (1) A broker-dealer is not required to
file a SAR-S-F to report:
(i) A robbery or burglary committed or attempted of the
broker-dealer that is reported to appropriate law enforcement
authorities, or for lost, missing, counterfeit, or stolen securities
with respect to which the broker-dealer files a report pursuant to the
reporting requirements of 17 CFR 240.17f-1;
(ii) A violation otherwise required to be reported under this
section of any of the federal securities laws or rules of an SRO by the
broker-dealer or any of its officers, directors, employees, or other
registered representatives, other than a violation of 17 CFR 240.17a-8
or 17 CFR 405.4, so long as
such violation is appropriately reported to the SEC or an SRO.
(2) A broker-dealer may be required to demonstrate that it has
relied on an exception in paragraph (c)(1) of this section, and must
maintain records of its determinations to do so for the period
specified in paragraph (d) of this section. To the extent that a Form
RE-3, Form U-4, or Form U-5 concerning the transaction is filed
consistent with the SRO rules, a copy of that form will be a sufficient
record for purposes of this paragraph (c)(2).
{{6-30-06 p.8486.02-B-7}}
(3) For the purposes of this paragraph (c) the term "federal
securities laws" means the "securities laws," as that term is
defined in section 3(a)(47) of the Securities Exchange Act of 1934,
15 U.S.C. 78c(a)(47), and the
rules and regulations promulgated by the Securities and Exchange
Commission under such laws.
(d) Retention of records. A broker-dealer shall maintain
a copy of any SAR-S-F filed and the original or business record
equivalent of any supporting documentation for a period of five years
from the date of filing the SAR-S-F. Supporting documentation shall be
identified as such and maintained by the broker-dealer, and shall be
deemed to have been filed with the SAR-S-F. A broker-dealer shall make
all supporting documentation available to FinCEN, any other appropriate
law enforcement agencies or federal or state securities regulators, and
for purposes of paragraph (g) of this section, to an SRO registered
with the Securities and Exchange Commission, upon request.
(e) Confidentiality of reports. No financial
institution, and no director, officer, employee, or agent of any
financial institution, who reports a suspicious transaction under this
part, may notify any person involved in the transaction that the
transaction has been reported, except to the extent permitted by
paragraph (a)(3) of this section. Thus, any person subpoenaed or
otherwise requested to disclose a SAR-S-F or the information contained
in a SAR-S-F, except where such disclosure is requested by FinCEN, the
Securities and Exchange Commission, or another appropriate law
enforcement or regulatory agency, or for purposes of paragraph (g) of
this section, an SRO registered with the Securities and Exchange
Commission, shall decline to produce the SAR-S-F or to provide any
information that would disclose that a SAR-S-F has been prepared or
filed, citing this paragraph (e) and 31 U.S.C. 5318(g)(2), and shall
notify FinCEN of any such request and its response
thereto.
{{6-30-05 p.8486.02-C}}
(f) Limitation of liability. A broker-dealer, and any
director, officer, employee, or agent of such broker-dealer, that makes
a report of any possible violation of law or regulation pursuant to
this section or any other authority (or voluntarily) shall not be
liable to any person under any law or regulation of the United States
(or otherwise to the extent also provided in
31 U.S.C. 5318(g)(3),
including in any arbitration proceeding) for any disclosure contained
in, or for failure to disclose the fact of, such report.
(g) Examination and enforcement. Compliance with this
section shall be examined by the Department of the Treasury, through
FinCEN or its delegees, under the terms of the Bank Secrecy Act.
Reports filed under this section shall be made available to an SRO
registered with the Securities and Exchange Commission examining a
broker-dealer for compliance with the requirements of this section.
Failure to satisfy the requirements of this section may constitute a
violation of the reporting rules of the Bank Secrecy Act and of this
part.
(h) Effective date. This section applies to transactions
occurring after December 30, 2002.
[Codified to 31 C.F.R. § 103.19]
[Section 103.19 added at 67 Fed. Reg. 44056, July 1, 2002,
effective July 31, 2002; amended at 68 Fed. Reg. 6613, February 10,
2003, effective March 12, 2003, applicability date is August 11, 2003]
Special Due Diligence for Correspondent Accounts and Private
Banking Accounts
§ 103.20 Reports by money services businesses of suspicious
transactions.
(a) General. (1) Every money services business,
described in
§ 103.11(uu)(1), (3),
(4), (5), or (6), shall file with the Treasury Department, to the
extent and in the manner required by this section, a report of any
suspicious transaction relevant to a possible violation of law or
regulation. Any money services business may also file with the Treasury
Department, by using the form specified in paragraph (b)(1) of this
section, or otherwise, a report of any suspicious transaction that it
believes is relevant to the possible violation of any law or regulation
but whose reporting is not required by this section.
(2) A transaction requires reporting under the terms of this
section if it is conducted or attempted by, at, or through a money
services business, involves or aggregates funds or other assets of at
least $2,000 (except as provided in paragraph (a)(3) of this section),
and the money services business knows, suspects, or has reason to
suspect that the transaction (or a pattern of transactions of which the
transaction is a part);
(i) Involves funds derived from illegal activity or is intended
or conducted in order to hide or disguise funds or assets derived from
illegal activity (including, without limitation, the ownership, nature,
source, location, or control of such funds or assets) as part of a plan
to violate or evade any federal law or regulation or to avoid any
transaction reporting requirement under federal law or regulation;
(ii) Is designed, whether through structuring or other means, to
evade any requirements of this part or of any other regulations
promulgated under the Bank Secrecy Act, Public Law 91--508, as amended,
codified at 12 U.S.C. 1829b, 12 U.S.C. 1951-1959, and 31 U.S.C.
5311-5330; or
(iii) Serves no business or apparent lawful purpose, and the
reporting money services business knows of no reasonable explanation
for the transaction after examining the available facts, including the
background and possible purpose of the transaction.
(iv) Involves use of the money services business to facilitate
criminal activity.
(3) To the extent that the identification of transactions
required to be reported is derived from a review of clearance records
or other similar records of money orders or traveler's checks that
have been sold or processed, an issuer of money orders or traveler's
checks shall only be required to report a transaction or pattern of
transactions that involves or aggregates funds or other assets of at
least $5,000.
(4) The obligation to identify and properly and timely to report
a suspicious transaction rests with each money services business
involved in the transaction, provided that no more than one report is
required to be filed by the money services businesses involved in a
particular transaction (so long as the report filed contains all
relevant facts).
{{6-30-05 p.8486.02-D}}Whether, in
addition to any liability on its own for failure to report, a money
services business that issues the instrument or provides the funds
transfer service involved in the transaction may be liable for the
failure of another money services business involved in the transaction
to report that transaction depends upon the nature of the contractual
or other relationship between the businesses, and the legal effect of
the facts and circumstances of the relationship and transaction
involved, under general principles of the law of agency.
(5) Notwithstanding the provisions of this section, a transaction
that involves solely the issuance, or facilitation of the transfer of
stored value, or the issuance, sale, or redemption of stored value,
shall not be subject to reporting under this paragraph (a), until the
promulgation of rules specifically relating to such reporting.
(b) Filing procedures--(1) What to file. A
suspicious transaction shall be reported by completing a Suspicious
Activity Report-MSB ("SAR--MSB"), and collecting and maintaining
supporting documentation as required by paragraph (c) of this section.
(2) Where to file. The SAR--MSB shall be filed in a
central location to be determined by FinCEN, as indicated in the
instructions to the SAR--MSB.
(3) When to file. A money services business subject to
this section is required to file each SAR--MSB no later than 30
calendar days after the date of the initial detection by the money
services business of facts that may constitute a basis for filing a
SAR--MSB under this section. In situations involving violations that
require immediate attention, such as ongoing money laundering schemes,
the money services business shall immediately notify by telephone an
appropriate law enforcement authority in addition to filing a SAR--MSB.
Money services businesses wishing voluntarily to report suspicious
transactions that may relate to terrorist activity may call FinCEN's
Financial Institutions Hotline at 1--866--556--3974 in addition to
filing timely a SAR--MSB if required by this section.
(c) Retention of records. A money services business
shall maintain a copy of any SAR--MSB filed and the original or
business record equivalent of any supporting documentation for a period
of five years from the date of filing the SAR--MSB. Supporting
documentation shall be identified as such and maintained by the money
services business, and shall be deemed to have been filed with the
SAR--MSB. A money services business shall make all supporting
documentation available to FinCEN and any other appropriate law
enforcement agencies or supervisory agencies upon request.
(d) Confidentiality of reports; limitation of liability.
No financial institution, and no other director, officer, employee, or
agent of any financial institution, who reports a suspicious
transaction under this part, may notify any person involved in the
transaction that the transaction has been reported. Thus, any person
subpoenaed or otherwise requested to disclose a SAR--MSB or the
information contained in a SAR--MSB, except where such disclosure is
requested by FinCEN or an appropriate law enforcement or supervisory
agency, shall decline to produce the SAR--MSB or to provide any
information that would disclose that a SAR--MSB has been prepared or
filed, citing this paragraph (d) and
31 U.S.C. 5318(g)(2), and
shall notify FinCEN of any such request and its response thereto. A
reporting money services business, and any director, officer, employee,
or agent of such reporting money services business, that makes a report
pursuant to this section (whether such report is required by this
section or made voluntarily) shall be protected from liability for any
disclosure contained in, or for failure to disclose the fact of, such
report, or both, to the extent provided by 31 U.S.C. 5318(g)(3).
(e) Compliance. Compliance with this section shall be
audited by the Department of Treasury, through FinCEN or its delegees
under the terms of the Bank Secrecy Act. Failure to satisfy the
requirements of this section may constitute a violation of the
reporting rules of the Bank Secrecy Act and of this part.
(f) Effective date. This section applies to transactions
occurring after December 31, 2001.
[Codified to 31 C.F.R. §103.20]
[Section 103.20 added at 65 Fed. Reg. 13692, March 14,
2000, effective April 13, 2000 (§ 103.20 applies to transactions
occurring after December 31, 2001); amended at 68 Fed. Reg. 6617,
February 10, 2003, effective March 12, 2003, applicable August 11,
2003]
{{6-30-05 p.8486.02-D-1}}
§ 103.21 Reports by casinos of suspicious transactions.
(a) General. (1) Every casino shall file with FinCEN, to
the extent and in the manner required by this section, a report of any
suspicious transaction relevant to a possible violation of law or
regulation. A casino may also file with FinCEN, by using the form
specified in paragraph (b)(1) of this section, or otherwise, a report
of any suspicious
{{12-31-07 p.8486.02-E}}transaction that
it believes is relevant to the possible violation of any law or
regulation but whose reporting is not required by this section.
(2) A transaction requires reporting under the terms of this
section if it is conducted or attempted by, at, or through a casino,
and involves or aggregates at least $5,000 in funds or other assets,
and the casino knows, suspects, or has reason to suspect that the
transaction (or a pattern of transactions of which the transaction is a
part):
(i) Involves funds derived from illegal activity or is intended
or conducted in order to hide or disguise funds or assets derived from
illegal activity (including, without limitation, the ownership, nature,
source, location, or control of such funds or assets) as part of a plan
to violate or evade any federal law or regulation or to avoid any
transaction reporting requirement under federal law or regulation;
(ii) Is designed, whether through structuring or other means, to
evade any requirements of this part or of any other regulations
promulgated under the Bank Secrecy Act, Public Law 91--508, as amended,
codified at 12 U.S.C. 1829b, 12 U.S.C. 1951--1959, and 31 U.S.C.
5311--5332;
(iii) Has no business or apparent lawful purpose or is not the
sort in which the particular customer would normally be expected to
engage, and the casino knows of no reasonable explanation for the
transaction after examining the available facts, including the
background and possible purpose of the transaction; or
(iv) Involves use of the casino to facilitate criminal activity.
(b) Filing procedures--(1) What to file. A
suspicious transaction shall be reported by completing a Suspicious
Activity Report by Casinos ("SARC"), and collecting and
maintaining supporting documentation as required by paragraph (d) of
this section.
(2) Where to file. The SARC shall be filed with FinCEN
in a central location, to be determined by FinCEN, as indicated in the
instructions to the SARC.
(3) When to file. A SARC shall be filed no later than
30 calendar days after the date of the initial detection by the casino
of facts that may constitute a basis for filing a SARC under this
section. If no suspect is identified on the date of such initial
detection, a casino may delay filing a SARC for an additional 30
calendar days to identify a suspect, but in no case shall reporting be
delayed more than 60 calendar days after the date of such initial
detection. In situations involving violations that require immediate
attention, such as ongoing money laundering schemes, the casino shall
immediately notify by telephone an appropriate law enforcement
authority in addition to filing timely a SARC. Casinos wishing
voluntarily to report suspicious transactions that may relate to
terrorist activity may call FinCEN's Financial Institutions Hotline at
1--866--556--3974 in addition to filing timely a SARC if required by
this section.
(c) Exceptions. A casino is not required to file a SARC
for a robbery or burglary committed or attempted that is reported to
appropriate law enforcement authorities.
(d) Retention of records. A casino shall maintain a copy
of any SARC filed and the original or business record equivalent of any
supporting documentation for a period of five years from the date of
filing the SARC. Supporting documentation shall be identified as such
and maintained by the casino, and shall be deemed to have been filed
with the SARC. A casino shall make all supporting documentation
available to FinCEN, any other appropriate law enforcement agencies or
federal, state, local, or tribal gaming regulators upon request.
(e) Confidentiality of reports; limitation of liability.
No casino, and no director, officer, employee, or agent of any
casino, who reports a suspicious transaction under this part, may
notify any person involved in the transaction that the transaction has
been reported. Thus, any person subpoenaed or otherwise requested to
disclose a SARC or the information contained in a SARC, except where
such disclosure is requested by FinCEN or another appropriate law
enforcement or regulatory agency, shall decline to produce the SARC or
to provide any information that would disclose that a SARC has been
prepared or filed, citing this paragraph (e) and 31 U.S.C. 5318(g)(2),
and shall notify FinCEN of any such request and its response thereto. A
casino, and any director, officer, employee, or agent of such casino,
that makes a report pursuant to this section (whether such report is
required by this section or made voluntarily) shall be protected from
liability for any disclosure contained in, or for failure to disclose
the fact of, such report, or both, to the extent provided by 31 U.S.C.
5318(g)(3).
{{12-31-07 p.8486.02-F}}
(f) Compliance. Compliance with this section shall be
audited by the Department of the Treasury, through FinCEN or its
delegees, under the terms of the Bank Secrecy Act. Failure to satisfy
the requirements of this section may constitute a violation of the
reporting rules of the Bank Secrecy Act and of this part.
(g) Effective date. This section applies to transactions
occurring after March 25, 2003.
[Codified to 31 C.F.R. § 103.21]
[Source: Section 103.21 added at 67 Fed. Reg. 60729, September 26,
2002, effective October 28, 2002]
§ 103.22 Reports of transactions in currency.
(a) General. This section sets forth the rules for the
reporting by financial institutions of transactions in currency. The
reporting obligations themselves are stated in paragraph (b) of this
section. The reporting rules relating to aggregation are stated in
paragraph (c) of this section. Rules permitting banks to exempt certain
transactions from the reporting obligations appear in paragraph (d) of
this section.
(b) Filing obligations--(1) Financial
institutions other than casinos. Each financial institution other
than a casino shall file a report of each deposit, withdrawal, exchange
of currency or other payment or transfer, by, through, or to such
financial institution which involves a transaction in currency of more
than $10,000, except as otherwise provided in this section. In the case
of the Postal Service, the obligation contained in the preceding
sentence shall not apply to payments or transfers made solely in
connection with the purchase of postage or philatelic products.
(2) Casinos. Each casino shall file a report of each
transaction in currency, involving either cash in or cash out, of more
than $10,000.
(i) Transactions in currency involving cash in include, but are
not limited to:
(A) Purchases of chips, tokens, and other gaming instruments;
(B) Front money deposits;
(C) Safekeeping deposits;
(D) Payments on any form of credit, including markers and counter
checks;
(E) Bets of currency including money plays;
(F) Currency received by a casino for transmittal of funds
through wire transfer for a customer;
(G) Purchases of a casino's check;
(H) Exchanges of currency for currency, including foreign
currency; and
(I) Bills inserted into electronic gaming devices.
(ii) Transactions in currency involving cash out include, but are
not limited to:
(A) Redemptions of chips, tokens, and other gaming instruments;
(B) Front money withdrawals;
(C) Safekeeping withdrawals;
(D) Advances on any form of credit, including markers and counter
checks;
(E) Payments on bets;
(F) Payments by a casino to a customer based on receipt of funds
through wire transfers;
(G) Cashing of checks or other negotiable instruments;
(H) Exchanges of currency for currency, including foreign
currency;
(I) Travel and complimentary expenses and gaming incentives; and
(J) Payment for tournament, contests, and other promotions.
(iii) Other provisions of this part notwithstanding, casinos are
exempted from the reporting obligations found in §§ 103.22(b)(2) and
(c)(3) for the following transactions in currency or currency
transactions:
(A) Transactions between a casino and a currency dealer or
exchanger, or between a casino and a check casher, as those terms are
defined in § 103.11(uu), so long as such transactions are conducted
pursuant to a contractual or other arrangement with a casino covering
the financial services in §§ 103.22(b)(2)(i)(H),
103.22(b)(2)(ii)(G), and 103.22(b)(2)(ii)(H);
(B) Cash out transactions to the extent the currency is won in a
money play and is the same currency the customer wagered in the money
play, or cash in transactions to the
{{6-29-07 p.8486.02-G}}extent the
currency is the same currency the customer previously wagered in a
money play on the same table game without leaving the table;
(C) Bills inserted into electronic gaming devices in multiple
transactions (unless a casino has knowledge pursuant to
§ 103.22(c)(3) in which case this exemption would not apply); and
(D) Jackpots from slot machines or video lottery terminals.
(c) Aggregation--(1) Multiple branches. A
financial institution includes all of its domestric branch offices, and
any recordkeeping facility, wherever located, that contains records
relating to the transactions of the institution's domestic offices,
for purposes of this section's reporting requirements.
(2) Multiple transactions--general. In the case of
financial institutions other than casinos, for purposes of this
section, multiple currency transactions shall be treated as a single
transaction if the financial institution has knowledge that they are by
or on behalf of any person and result in either cash in or cash out
totaling more than $10,000 during any one business day (or in the case
of the Postal Service, any one day). Deposits made at night or over a
weekend or holiday shall be treated as if received on the next business
day following the deposit.
(3) Multiple transactions--casinos. In the case of a
casino, multiple currency transactions shall be treated as a single
transaction if the casino has knowledge that they are by or on behalf
of any person and result in either cash in or cash out totaling more
than $10,000 during any gaming day. For purposes of this paragraph
(c)(3), a casino shall be deemed to have the knowledge described in the
preceding sentence, if: any sole proprietor, partner, officer,
director, or employee of the casino, acting within the scope of his or
her employment, has knowledge that such multiple currency transactions
have occurred, including knowledge from examining the books, records,
logs, information retained on magnetic disk, tape or other
machine-readable media, or in any manual system, and similar documents
and information, which the casino maintains pursuant to any law or
regulation or within the ordinary course of its business, and which
contain information that such multiple currency transactions have
occurred.
(d) Transactions of exempt persons--(1) General.
No bank is required to file a report otherwise required by
paragraph (b) of this section with respect to any transaction in
currency between an exempt person and such bank, or, to the extent
provided in paragraph (d)(6)(vi) of this section, between such exempt
person and other banks affiliated with such bank. In addition, a
non-bank financial institution is not required to file a report
otherwise required by paragraph (b) of this section with respect to a
transaction in currency between the institution and a commercial bank.
(A limitation on the exemption described in this paragraph (d)(1) is
set forth in paragraph (d)(7) of this section.)
(2) Exempt person. For purposes of this section, an
exempt person is:
(i) A bank, to the extent of such bank's domestic operations;
(ii) A department or agency of the United States, of any State,
or of any political subdivision of any State;
(iii) Any entity established under the laws of the United States,
of any State, or of any political subdivision of any State, or under an
interstate compact between two or more States, that exercises
governmental authority on behalf of the United States or any such State
or political subdivision;
(iv) Any entity, other than a bank, whose common stock or
analogous equity interests are listed on the New York Stock Exchange or
the American Stock Exchange or whose common stock or analogous equity
interests have been designated as a Nasdaq National Market Security
listed on the Nasdaq Stock Market (except stock or interests listed
under the separate "Nasdaq Small-Cap Issues" heading), provided
that, for purposes of this paragraph (d)(2)(iv), a person that is a
financial institution, other than a bank, is an exempt person only to
the extent of its domestic operations;
(v) Any subsidiary, other than a bank, of any entity described in
paragraph (d)(2)(iv) of this section (a "listed entity") that is
organized under the laws of the United States or of any State and at
least 51 percent of whose common stock or analogous equity interest is
owned by the listed entity, provided that, for purposes of this
paragraph (d)(2)(v), a person that is a financial institution, other
than a bank, is an exempt person only to the extent of its domestic
operations;
{{6-29-07 p.8486.02-H}}
(vi) To the extent of its domestic operations and only with
respect to transactions conducted through its exemptible accounts, any
other commercial enterprise (for purposes of this paragraph (d), a
"non-listed business"), other than an enterprise specified in
paragraph (d)(6)(viii) of this section, that:
(A) Has maintained a transaction account, as defined in paragraph
(d)(6)(ix) of this section, at the bank for at least 12 months;
(B) Frequently engages in transactions in currency with the bank
in excess of $10,000; and
(C) Is incorporated or organized under the laws of the United
States or a State, or is registered as and eligible to do business
within the United States or a State; or
(vii) With respect solely to withdrawals for payroll purposes
from existing exemptible accounts, any other person (for purposes of
this paragraph (d), a "payroll customer") that:
(A) Has maintained a transaction account, as defined in paragraph
(d)(6)(ix) of this section, at the bank for at least 12
months;
{{8-31-00 p.8486.03}}
(B) Operates a firm that regularly withdraws more than $10,000 in
order to pay its United States employees in currency; and
(C) Is incorporated or organized under the laws of the United
States or a State, or is registered as and eligible to do business
within the United States or a State.
(3) Initial designation of exempt
persons--(i) General. A bank must designate each
exempt person with which it engages in transactions in currency by the
close of the 30-day period beginning after the date of the first
reportable transaction in currency with that person sought to be
exempted from reporting under the terms of this paragraph (d). Except
as provided in paragraph (d)(3)(ii) of this section, designation by a
bank of an exempt person shall be made by a single filing of Treasury
Form TD F 90--22.53. (A bank is not required to file a Treasury Form
TD F 90--22.53 with respect to the transfer of currency to or from
any of the twelve Federal Reserve Banks.) The designation must be made
separately by each bank that treats the person in question as an exempt
person, except as provided in paragraph (d)(6)(vi) of this section. The
designation requirements of this paragraph (d)(3) apply whether or not
the particular exempt person to be designated has previously been
treated as exempt from the reporting requirements of prior
§ 103.22(a) under the rules contained in 31 CFR 103.22(a) through
(g), as in effect on October 20, 1998 (see 31 CFR Parts 0 to 199
revised as of July 1, 1998). A special transitional rule, which extends
the time for initial designation for customers that have been
previously treated as exempt under such prior rules, is contained in
paragraph (d)(11) of this section.
(ii) Special rules for banks. When designating another
bank as an exempt person, a bank must either make the filing required
by paragraph (d)(3)(i) of this section or file, in such a format and
manner as FinCEN may specify, a current list of its domestic bank
customers. In the event that a bank files its current list of domestic
bank customers, the bank must make the filing as described in paragraph
(d)(3)(i) of this section for each bank that is a new customer and for
which an exemption is sought under this paragraph (d).
(4) Annual review. The information supporting each
designation of an exempt person, and the application to each account of
an exempt person described in paragraphs (d)(2)(vi) or (d)(2)(vii) of
this section of the monitoring system required to be maintained by
paragraph (d)(9)(ii) of this section, must be reviewed and verified at
least once each year.
(5) Biennial filing with respect to certain exempt
persons--(i) General. A biennial filing, as described
in paragraph (d)(5)(ii) of this section, is required for continuation
of the treatment as an exempt person of a customer described in
paragraph (d)(2)(vi) or (vii) of this section. No biennial filing is
required for continuation of the treatment as an exempt person of a
customer described in paragraphs (d)(2)(i) through (v) of this section.
(ii) Non-listed businesses and payroll customers. The
designation of a non-listed business or a payroll customer as an exempt
person must be renewed biennially, beginning on March 15 of the second
calendar year following the year in which the first designation of such
customer as an exempt person is made, and every other March 15
thereafter, on Treasury Form TD F 90--22.53. Biennial renewals must
include a statement certifying that the bank's system of monitoring
the transactions in currency of an exempt person for suspicious
activity, required to be maintained by paragraph (d)(9)(ii) of this
section, has been applied as necessary, but at least annually, to the
account of the exempt person to whom the biennial renewal applies.
Biennial renewals also must include information about any change in
control of the exempt person involved of which the bank knows (or
should know on the basis of its records).
(6) Operating rules--(i) General rule.
Subject to the specific rules of this paragraph (d), a bank must
take such steps to assure itself that a person is an exempt person
(within the meaning of the applicable provision of paragraph (d)(2) of
this section), to document the basis for its conclusions, and document
its compliance, with the terms of this paragraph (d), that a reasonable
and prudent bank would take and document to protect itself from loan or
other fraud or loss based on misidentification of a person's status,
and in the case of the monitoring system requirement set forth in
paragraph (d)(9)(ii) of this section, such steps that a reasonable and
prudent bank would take and document to identify suspicious
transactions as required by paragraph (d)(9)(ii) of this
section.
{{8-31-00 p.8486.04}}
(ii) Governmental departments and agencies. A bank may
treat a person as a governmental department, agency, or entity if the
name of such person reasonably indicates that it is described in
paragraph (d)(2)(ii) or (d)(2)(iii) of this section, or if such person
is known generally in the community to be a State, the District of
Columbia, a tribal government, a Territory or Insular Possession of the
United States, or a political subdivision or a wholly-owned agency or
instrumentality of any of the foregoing. An entity generally exercises
governmental authority on behalf of the United States, a State, or a
political subdivision, for purposes of paragraph (d)(2)(iii) of this
section, only if its authorities include one or more of the powers to
tax, to exercise the authority of eminent domain, or to exercise police
powers with respect to matters within its jurisdiction. Examples of
entities that exercise governmental authority include, but are not
limited to, the New Jersey Turnpike Authority and the Port Authority of
New York and New Jersey.
(iii) Stock exchange listings. In determining whether
a person is described in paragraph (d)(2)(iv) of this section, a bank
may rely on any New York, American or Nasdaq Stock Market listing
published in a newspaper of general circulation, on any commonly
accepted or published stock symbol guide, on any information contained
in the Securities and Exchange Commission "Edgar" System, or on
any information contained on an Internet World-Wide Web site or sites
maintained by the New York Stock Exchange, the American Stock Exchange,
or the National Association of Securities Dealers.
(iv) Listed company subsidiaries. In determining
whether a person is described in paragraph (d)(2)(v) of this section, a
bank may rely upon:
(A) Any reasonably authenticated corporate officer's
certificate;
(B) Any reasonably authenticated photocopy of Internal Revenue
Service Form 851 (Affiliation Schedule) or the equivalent thereof for
the appropriate tax year; or
(C) A person's Annual Report or Form 10--K, as filed in each
case with the Securities and Exchange Commission.
(v) Aggregated accounts. In determining the
qualification of a customer as a non-listed business or a payroll
customer, a bank may treat all exemptible accounts of the customer as a
single account. If a bank elects to treat all exemptible accounts of a
customer as a single account, the bank must continue to treat such
accounts consistently as a single account for purposes of determining
the qualification of the customer as a non-listed business or payroll
customer.
(vi) Affiliated banks. The designation required by
paragraph (d)(3) of this section may be made by a parent bank holding
company or one of its bank subsidiaries on behalf of all bank
subsidiaries of the holding company, so long as the designation lists
each bank subsidiary to which the designation shall apply.
(vii) Sole proprietorships. A sole proprietorship may
be treated as a non-listed business if it otherwise meets the
requiremens of paragraph (d)(2)(vi) of this section, as applicable. In
addition, a sole proprietorship may be treated as a payroll customer if
it otherwise meets the requirements of paragraph (d)(2)(vii) of this
section, as applicable.
(viii) Ineligible businesses. A business engaged
primarily in one or more of the following activities may not be treated
as a non-listed business for purposes of this paragraph (d): serving as
financial institutions or agents of financial institutions of any type;
purchase or sale to customers of motor vehicles of any kind, vessels,
aircraft, farm equipment or mobile homes; the practice of law,
accountancy, or medicine; auctioning of goods; chartering or operation
of ships, buses, or aircraft; gaming of any kind (other than licensed
parimutuel betting at race tracks); investment advisory services or
investment banking services; real estate brokerage; pawn brokerage;
title insurance and real estate closing; trade union activities; and
any other activities that may be specified by FinCEN. A business that
engages in multiple business activities may be treated as a non-listed
business so long as no more than 50% of its gross revenues is derived
from one or more of the ineligible business activities listed in this
paragraph (d)(6)(viii).
(ix) Exemptible accounts of a non-listed business or
payroll customer. The exemptible accounts of a non-listed
business or payroll customer include transaction accounts and money
market deposit accounts. However, money market deposit
accounts
{{8-31-01 p.8486.05}}maintained
other than in connection with a commercial enterprise are not
exemptible accounts. A transaction account, for purposes of this
paragraph (d), is any account described in section 19(b)(1)(C) of the
Federal Reserve Act, 12 U.S.C.
461(b)(1)(C), and its implementing regulations
(12 CFR part 204). A money
market deposit account, for purposes of this paragraph (d), is any
interest-bearing account that is described as a money market deposit
account in 12 CFR 204.2(d)(2).
(x) Documentation. The records maintained by a bank to
document its compliance with and administration of the rules of this
paragraph (d) shall be maintained in accordance with the provisions of
§ 103.38.
(7) Limitation on exemption. A transaction carried out
by an exempt person as an agent for another person who is the
beneficial owner of the funds that are the subject of a transaction in
currency is not subject to the exemption from reporting contained in
paragraph (d)(1) of this section.
(8) Limitation on liability. (i) No bank shall be
subject to penalty under this part for failure to file a report
required by paragraph (b) of this section with respect to a transaction
in currency by an exempt person with respect to which the requirements
of this paragraph (d) have been satisfied, unless the bank:
(A) Knowingly files false or incomplete information with respect
to the transaction or the customer engaging in the transaction; or
(B) Has reason to believe that the customer does not meet the
criteria established by this paragraph (d) for treatment of the
transactor as an exempt person or that the transaction is not a
transaction of the exempt person.
(ii) Subject to the specific terms of this paragraph (d), and
absent any specific knowledge of information indicating that a customer
no longer meets the requirements of an exempt person, a bank satisfies
the requirements of this paragraph (d) to the extent it continues to
treat that customer as an exempt person until the date of that
customer's next periodic review, which, as required by paragraph
(d)(4) of this section, shall occur no less than once each year.
(iii) A bank that files a report with respect to a currency
transaction by an exempt person rather than treating such person as
exempt shall remain subject, with respect to each such report, to the
rules for filing reports, and the penalties for filing false or
incomplete reports that are applicable to reporting of transactions in
currency by persons other than exempt persons.
(9) Obligations to file suspicious activity reports and
maintain system for monitoring transactions in
currency. (i) Nothing in this paragraph (d) relieves a bank of
the obligation, or reduces in any way such bank's obligation, to file
a report required by
§ 103.21 with respect to
any transaction, including any transaction in currency that a bank
knows, suspects, or has reason to suspect is a transaction or attempted
transaction that is described in § 103.21(a)(2)(i), (ii), (iii), or
relieves a bank of any reporting or recordkeeping obligation imposed by
this part (except the obligation to report transactions in currency
pursuant to this section to the extent provided in this paragraph (d)).
Thus, for example, a sharp increase from one year to the next in the
gross total of currency transactions made by an exempt customer, or
similarly anomalous transaction trends or patterns, may trigger the
obligations of a bank under § 103.21.
(ii) Consistent with its annual review obligations under
paragraph (d)(4) of this section, a bank shall establish and maintain a
monitoring system that is reasonably designed to detect, for each
account of a non-listed business or payroll customer, those
transactions in currency involving such account that would require a
bank to file a suspicious transaction report. The statement in the
preceding sentence with respect to accounts of non-listed and payroll
customers does not limit the obligation of banks generally to take the
steps necessary to satisfy the terms of paragraph (d)(9)(i) of this
section and § 103.21 with respect to all exempt persons.
(10) Revocation. The status of any person as an exempt
person under this paragraph (d) may be revoked by FinCEN by written
notice, which may be provided by publication in the Federal
Register in appropriate situations, on such terms as are specified
in such
{{8-31-01 p.8486.06}}notice. Without
any action on the part of the Treasury Department and subject to the
limitation on liability contained in paragraph (d)(8)(ii) of this
section:
(i) The status of an entity as an exempt person under paragraph
(d)(2)(iv) of this section ceases once such entity ceases to be listed
on the applicable stock exchange; and
(ii) The status of a subsidiary as an exempt person under
paragraph (d)(2)(v) of this section ceases once such subsidiary ceases
to have at least 51 per cent of its common stock or analogous equity
interest owned by a listed entity.
(11) Transitional rule. (i) No accounts may be
newly granted on exemption or replaced on an exempt list on or after
October 21, 1998, under the rules contained in 31 CFR 103.22(b) through
(g), as in effect on October 20, 1998 (see 31 CFR Parts 0 to 199
revised as of July 1, 1998).
(ii) If a bank properly treated an account (a "previously
exempted account") as exempt on October 20, 1998 under the rules
contained in 31 CFR 103.22(b) through (g), as in effect on October 20,
1998 (see 31 CFR Parts 0 to 199 revised as of July 1, 1998), it may
continue to treat such account as exempt under such prior rules with
respect to transactions in currency occurring on or before June 30,
2000, provided that it does so consistently until the earlier of June
30, 2000, and the date on which the bank makes the designation or the
determination described in paragraph (d)(11)(iii) of this section. A
bank that continues to treat a previously exempted account as exempt
under the prior rules, and for the period, specified in the preceding
sentence, shall remain subject to such prior rules, and to the
penalties for failing to comply therewith, with respect to transactions
in currency occurring during such period.
(iii) A bank must, on or before July 1, 2000, either designate
the holder of a previously exempted account as an exempt person under
paragraph (d)(2) of this section or determine that it may not or will
not treat such holder as an exempt person under paragraph (d)(2) of
this section (so that it will be required to make reports under
paragraph (a) of this section with respect to transactions in currency
by such person occurring on or after the date of determination, but no
later than July 1, 2000). A bank that initially does not designate the
holder of a previously exempted account as an exempt person for periods
beginning after June 30, 2000, may later make such a designation, to
the extent otherwise permitted to do so by this paragraph (d), for
periods after the effective date of such designation.
(Approved by the Office of Management and Budget under control number
1506-0009)
{{6-29-07 p.8487}}
[Codified to 31 C.F.R. § 103.22]
[Section 103.22 amended at 45 Fed. Reg. 37820, June 5, 1980,
effective July 7, 1980; 50 Fed. Reg. 5068, February 6, 1985, effective
May 7, 1985; 50 Fed. Reg. 42693, October 22, 1985, effective November
21, 1985; 51 Fed. Reg. 45109, December 17, 1986; 52 Fed. Reg. 11442,
April 8, 1987, effective May 8, 1987; 53 Fed Reg. 777, January 13,
1988, effective April 12, 1988; 53 Fed. Reg. 4138, February 12, 1988;
58 Fed. Reg. 13547, March 12, 1993, effective September 8, 1993; 59
Fed. Reg. 61662, December 1, 1994, Mandatory Compliance required by
June 1, 1995; 61 Fed. Reg. 18209, April 24, 1996, effective May 1,
1996; 62 Fed. Reg. 47147, September 8, 1997, effective January 1, 1998;
62 Fed. Reg. 47147, September 8, 1997, effective January 1, 1998; 63
Fed. Reg. 50156, September 21, 1998, effective October 21, 1998; 65
Fed. Reg. 46360 July 28, 2000, effective July 31, 2000; 72 Fed. Reg.
35013, June 26, 2007]
§ 103.23 Reports of transportation of currency or monetary
instruments.
(a) Each person who physically transports, mails, or ships, or
causes to be physically transported, mailed, or shipped, or attempts to
physically transport, mail or ship, or attempts to cause to be
physically transported, mailed or shipped, currency or other monetary
instruments in an aggregate amount exceeding $10,000 at one time from
the United States to any place outside the United States, or into the
United States from any place outside the United States, shall make a
report thereof. A person is deemed to have caused such transportation,
mailing or shipping when he aids, abets, counsels, commands, procures,
or requests it to be done by a financial institution or any other
person.
(b) Each person who receives in the U.S. currency or other monetary
instruments in an aggregate amount exceeding $10,000 at one time which
have been transported, mailed, or shipped to such person from any place
outside the United States with respect to which a report has not been
filed under paragraph (a) of this section, whether or not required to
be filed thereunder, shall make a report thereof, stating the amount,
the date of receipt, the form of monetary instruments, and the person
from whom received.
(c) This section shall not require reports by (1) a Federal Reserve
bank, (2) a bank, a foreign bank, or a broker or dealer in securities,
in respect to currency or other monetary instruments mailed or shipped
through the postal service or by common carrier, (3) a commercial bank
or trust company organized under the laws of any State or of the United
States with respect to overland shipments of currency or monetary
instruments shipped to or received from an established customer
maintaining a deposit relationship with the bank, in amounts which the
bank may reasonably conclude do not exceed amounts commensurate with
the customary conduct of the business, industry or profession of the
customer concerned, (4) a person who is not a citizen or resident of
the United States in respect to currency or other monetary instruments
mailed or shipped from abroad to a bank or broker or dealer in
securities through the postal service or by common carrier, (5) a
common carrier of passengers in respect to currency or other monetary
instruments in the possession of its passengers, (6) a common carrier
of goods in respect to shipments of currency or monetary instruments
not declared to be such by the shipper, (7) a travelers' check issuer
or its agent in respect to the transportation of travelers' checks
prior to their delivery to selling agents for eventual sale to the
public, (8) by a person with respect to a restrictively endorsed
traveler's check that is in the collection and reconciliation process
after the traveler's check has been negotiated, (9) nor by a person
engaged as a business in the transportation of currency, monetary
instruments and other commercial papers with respect to the
transportation of currency or other monetary instruments overland
between established offices of banks or brokers or dealers in
securities and foreign persons.
(d) A transfer of funds through normal banking procedures which
does not involve the physical transporation of currency or monetary
instruments is not required to be reported by this section. This
section does not require that more than one report be filed covering a
particular transportation, mailing or shipping of currency or other
monetary instruments with respect to which a complete and truthful
report has been filed by a person. However, no
{{6-29-07 p.8488}}person required
by paragraph (a) or (b) of this section to file a report shall be
excused from liability for failure to do so if, in fact, a complete and
truthful report has not been filed.
(Approved by the Office of Management and Budget under control number
1505--0063)
[Codified to 31 C.F.R. § 103.23]
[Section 103.23 amended at 37 Fed. Reg. 26517, December
13, 1972; 50 Fed. Reg. 18479, May 1, 1985, effective May 31, 1985; 50
Fed. Reg. 42693, October 22, 1985, effective November 21, 1985; 53 Fed.
Reg. 4138, February 12, 1988; 54 Fed. Reg. 28418, July 6, 1989,
effective August 7, 1989]
{{6-30-05 p.8489}}
§ 103.24 Reports of foreign financial accounts.
Each person subject to the jurisdiction of the United States (except
a foreign subsidiary of a U.S. person) having a financial interest in,
or signature or other authority over, a bank, securities or other
financial account in a foreign country shall report such relationship
to the Commissioner of the Internal Revenue for each year in which such
relationship exists, and shall provide such information as shall be
specified in a reporting form prescribed by the Secretary to be filed
by such persons. Persons having a financial interest in 25 or more
foreign financial accounts need only note that fact on the form. Such
persons will be required to provide detailed information concerning
each account when so requested by the Secretary or his delegate.
[Codified to 31 C.F.R. § 103.24]
[Section 103.24 amended at 42 Fed. Reg. 63774, December 20, 1977,
effective January 1, 1978; 52 Fed. Reg. 11443, April 8, 1987, effective
May 8, 1987; 52 Fed. Reg. 12641-12659, April 17, 1987]
{{6-30-05 p.8490}}
§103.25 Reports of transactions with foreign
financial agencies.
(a) Promulgation of reporting requirements: The
Secretary, when he deems appropriate, may promulgate regulations
requiring specified financial institutions to file reports of certain
transactions with designated foreign financial agencies. If any such
regulation is issued as a final rule without notice and opportunity for
public comment, then a finding of good cause for dispensing with notice
and comment in accordance with 5 U.S.C.
553(b) will be included in the regulation. If any such
regulation is not published in the Federal Register, then
any financial institution subject to the regulation will be named and
personally served or otherwise given actual notice in accordance with 5
U.S.C. 553(b). If a financial institution is given notice of a
reporting requirement under this section by means other than
publication in the Federal Register, the Secretary may
prohibit disclosure of the existence of provisions of that reporting
requirement to the designated foreign financial agency or agencies and
to any other party.
(b) Information subject to reporting requirements. A
regulation promulgated pursuant to paragraph (a) of this section shall
designate one or more of the following categories of information to be
reported:
(1) Checks or drafts, including traveler's checks, received by
respondent financial institution for collection or credit to the
account of a foreign financial agency, sent by respondent financial
institution to a foreign country for collection or payment, drawn by
respondent financial institution on a foreign financial agency, drawn
by a foreign financial agency on respondent financial
institution--including the following information:
(i) Name of maker or drawer;
(ii) Name of drawee or drawee financial institution;
(iii) Name of payee;
(iv) Date and amount of instrument;
(v) Names of all endorsers.
(2) Transmittal orders received by a respondent financial
institution from a foreign financial agency or sent by respondent
financial institution to a foreign financial agency, including all
information maintained by that institution pursuant to § 103.33.
(3) Loans made by respondent financial institution to or through
a foreign financial agency--including the following information:
(i) Name of borrower;
(ii) Name of person acting for borrower;
(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.
[The page following this is 8495.]
{{6-30-05 p.8495}}
(5) Stocks received or shipped by respondent financial
institution--including the following 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 respondent financial
institution--including the following 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 shipped by 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 issuing agent.
(c) Scope of reports. In issuing regulations as
provided in paragraph (a) of this section, the Secretary will
prescribe:
(1) A reasonable classification of financial institutions subject
to or exempt from a reporting requirement;
(2) A foreign country to which a reporting requirement applies if
the Secretary decides that applying the requirement to all foreign
countries is unnecessary or undesirable;
(3) The magnitude of transactions subject to a reporting
requirement; and
(4) The kind of transaction subject to or exempt from a reporting
requirement.
(d) Form of reports. Regulations issued pursuant to
paragraph (a) of this section may prescribe the manner in which the
information is to be reported. However, the Secretary may authorize a
designated financial institution to report in a different manner if the
institution demonstrates to the Secretary that the form of the required
report is unnecessarily burdensome on the institution as prescribed;
that a report in a different form will provide all the information the
Secretary deems necessary; and that submission of the information in a
different manner will not unduly hinder the effective administration of
this part.
(e) Limitations. (1) In issuing regulations under
paragraph (a) of this section, the Secretary shall consider the need to
avoid impeding or controlling the export or import of monetary
instruments and the need to avoid burdening unreasonably a person
making a transaction with a foreign financial agency.
(2) The Secretary shall not issue a regulation under paragraph
(a) of this section for the purpose of obtaining individually
identifiable account information concerning a customer, as defined by
the Right to Financial Privacy Act
(12 U.S.C. 3401 et
seq.), where that customer is already the subject of an
ongoing investigation for possible violation of the Currency and
Foreign Transactions Reporting Act, or is known by the Secretary to be
the subject of an investigation for possible violation of any other
federal law.
{{6-30-05 p.8496}}
(3) The Secretary may issue a regulation pursuant to paragraph
(a) of this section requiring a financial institution to report
transactions completed prior to the date it received notice of the
reporting requirement. However, with respect to completed transactions,
a financial institution may be required to provide information only
from records required to be maintained pursuant to subpart C of this
part, or any other provision of state or federal law, or otherwise
maintained in the regular course of business.
(Approved by the Office of Management and Budget under control No.
1505-0063)
[Codified to 31 C.F.R. § 103.25]
[Section 103.25 added at 50 Fed. Reg. 27824, July 8, 1985,
effective August 7, 1985; amended at 53 Fed. Reg. 10073, March 29,
1988, effective April 28, 1988; 60 Fed. Reg. 229, January 3, 1995,
effective January 1, 1996]
§ 103.26 Reports of certain domestic coin and currency
transactions.
(a) If the Secretary of the Treasury finds, upon the Secretary's
own initiative or at the request of an appropriate federal or state law
enforcement official, that reasonable grounds exist for concluding that
additional recordkeeping and/or reporting requirements are necessary to
carry out the purposes of this part and to prevent persons from evading
the reporting/recordkeeping requirements of this part, the Secretary
may issue an order requiring any domestic financial institution or
group of domestic financial institutions in a geographic area and any
other person participating in the type of transaction to file a report
in the manner and to the extent specified in such order. The order
shall contain such information as the Secretary may describe concerning
any transaction in which such financial institution is involved for the
payment, receipt, or transfer of United States coins or currency (or
such other monetary instruments as the Secretary may describe in such
order) the total amounts or denominations of which are equal to or
greater than an amount which the Secretary may prescribe.
(b) An order issued under paragraph (a) of this section shall be
directed to the Chief Executive Officer of the financial institution
and shall designate one or more of the following categories of
information to be reported: Each deposit, withdrawal, exchange of
currency or other payment or transfer, by, through or to such financial
institution specified in the order, which involves all or any class of
transactions in currency and/or monetary instruments equal to or
exceeding an amount to be specified in the order.
(c) In issuing an order under paragraph (a) of this section, the
Secretary will prescribe:
(1) The dollar amount of transactions subject to the reporting
requirement in the order;
(2) The type of transaction or transactions subject to or exempt
from a reporting requirement in the order;
(3) The appropriate form for reporting the transactions required
in the order;
(4) The address to which reports required in the order are to be
sent or from which they will be picked up;
(5) The starting and ending dates by which such transactions
specified in the order are to be reported;
(6) The name of a Treasury official to be contacted for any
additional information or questions;
(7) The amount of time the reports and records of reports
generated in response to the order will have to be retained by the
financial institution; and
(8) Any other information deemed necessary to carry out the
purposes of the order.
(d)(1) No order issued pursuant to paragraph (a) of this section
shall prescribe a reporting period of more than 60 days unless renewed
pursuant to the requirements of paragraph (a).
(2) Any revisions to an order issued under this section will not
be effective until made in writing by the Secretary.
{{2-28-95 p.8497}}
(3) Unless otherwise specified in the order, a bank receiving an
order under this section may continue to use the exemptions granted
under section 103.22 of
this part prior to the receipt of the order, but may not grant
additional exemptions.
(4) For purposes of this section, the term "geographic
area" means any area in one or more States of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, the United
States Virgin Islands, Guam, the Commonwealth of the Northern Mariana
Islands, American Samoa, the Trust Territory of the Pacific Islands,
the territories and possessions of the United States, and/or political
subdivision or subdivisions thereof, as specified in an order issued
pursuant to paragraph (a) of this section.
(Approved by the Office of Management and Budget under control
number 1505--0063)
[Codified to 31 C.F.R. § 103.26]
[Section 103.26 added at 54 F
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