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8000 - Miscellaneous Statutes and Regulations


TITLE 31—MONEY AND FINANCE

Subtitle IV—Money

Chapter 53—Monetary Transactions

SUBCHAPTER II—RECORDS AND REPORTS ON MONETARY INSTRUMENTS TRANSACTIONS *

5311. Declaration of purpose.
5312. Definitions and application.
5313. Reports on domestic coins and currency transactions.
5314. Records and reports on foreign financial agency transactions.
5315. Reports on foreign currency transactions.
5316. Reports on exporting and importing monetary instruments.
5317. Search and forfeiture of monetary instruments.
5318. Compliance and exemptions, and summons authority.
5318A. Special measures for jurisdictions, financial institutions, international transactions, or types of accounts of primary money laundering concern.
5319. Availability of reports.
5320. Injunctions.
5321. Civil penalties.
5322. Criminal penalties.
5323. Rewards for informants.
5324. Structuring transactions to evade reporting requirement prohibited.
5325. Identification required to purchase certain monetary instruments.
5326. Records of certain domestic coin and currency transactions.
5328. Whistleblower protections.
5329. Staff commentaries.
5330. Registration of money transmitting businesses.
5331. Reports relating to coins and currency received in nonfinancial trade or business.
5332. Bulk cash smuggling into or out of the United States.

§ 5311.  Declaration of purpose

It is the purpose of this subchapter (except section 5315) to require certain reports or records where they have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, or in the conduct of intelligence or counterintelligence activities, including analysis, to protect against international terrorism.

[Codified to 31 U.S.C. 5311]

[Source:  Section 202 of title II of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1118), effective November 1, 1971; recodified by the Act of September 13, 1982 (Pub. L. No. 97--258; 96 Stat. 995), effective September 13, 1982; section 358(a) of title III of the Act of October 26, 2001 (Pub. L. No. 107--56; 115 Stat. 326), effective October 26, 2001]

§ 5312.  Definitions and application

(a)  In this subchapter--

(1)  "financial agency" means a person acting for a person (except for a country, a monetary or financial authority acting as a monetary or financial authority, or an international financial institution of which the United States Government is a member) as a financial institution, bailee, depository trustee, or agent, or acting in a similar way related to money, credit, securities, gold, or a transaction in money, credit, securities, or gold.

(2)  "financial institution" means--

(A)  an insured bank (as defined in section 3(h) of the Federal Deposit Insurance Act (12 U.S.C. 1813(h)));

(B)  a commercial bank or trust company;

(C)  a private banker;

(D)  an agency or branch of a foreign bank in the United States;

(E)  Any credit union;

(F)  a thrift institution;

(G)  a broker or dealer registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.);

(H)  a broker or dealer in securities or commodities;

(I)  an investment banker or investment company;

(J)  a currency exchange;

(K)  an issuer, redeemer, or cashier of travelers' checks, checks, money orders, or similar instruments;

(L)  an operator of a credit card system;

(M)  an insurance company;

(N)  a dealer in precious metals, stones, or jewels;

(O)  a pawnbroker;

(P)  a loan or finance company;

(Q)  a travel agency;

(R)  a licensed sender of money or any other person who engages as a business in the transmission of funds, including any person who engages as a business in an informal money transfer system or any network of people who engage as a business in facilitating the transfer of money domestically or internationally outside of the conventional financial institutions system;

(S)  a telegraph company;

(T)  a business engaged in vehicle sales, including automobile, airplane, and boat sales;

(U)  persons involved in real estate closings and settlements;

(V)  the United States Postal Service;

(W)  an agency of the United States Government or of a State or local government carrying out a duty or power of a business Described in this paragraph;

(X)  a casino, gambling casino, or gaming establishment with an annual gaming revenue of more than $1,000,000 which--

(i)  is licensed as a casino, gambling casino, or gaming establishment under the laws of any State or any political subdivision of any State; or

(ii)  is an Indian gaming operation conducted under or pursuant to the Indian Gaming Regulatory Act other than an operation which is limited to class I gaming (as defined in section 4(6) of such Act);

(Y)  any business or agency which engages in any activity which the Secretary of the Treasury determines, by regulation, to be an activity which is similar to, related to, or a substitute for any activity in which any business described in this paragraph is authorized to engage; or

(Z)  any other business designated by the Secretary whose cash transactions have a high degree of usefulness in criminal, tax, or regulatory matters.

(3)  "monetary instruments" means--

(A)  United States coins and currency;

(B)  as the Secretary may prescribe by regulation, coins and currency of a foreign country, travelers' checks, bearer negotiable instruments, bearer investment securities, bearer securities, stock on which title is passed on delivery, and similar material; and

(C)  as the Secretary of the Treasury shall provide by regulation for purposes of sections 5316 and 5331, checks, drafts, notes, money orders, and other similar instruments which are drawn on or by a foreign financial institution and are not in bearer form.

(4)  NONFINANCIAL TRADE OR BUSINESS.--The term "nonfinancial trade or business" means any trade or business other than a financial institution that is subject to the reporting requirements of section 5313 and regulations prescribed under such section.

(5)  "person" in addition to its meaning under section 1 of title 1, includes a trustee, a representative of an estate and, when the Secretary prescribes, a governmental entity.

(6)  "United States" means the States of the United States, the District of Columbia, and, when the Secretary prescribes by regulation, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, American Samoa, the Trust Territory of the Pacific Islands, a territory or possession of the United States, or a military or diplomatic establishment.

(b)  In this subchapter--

(1)  "domestic financial agency" and "domestic financial institution" apply to an action in the United States of a financial agency or institution.

(2)  "foreign financial agency" and "foreign financial institution" apply to an action outside the United States of a financial agency or institution.

(c)  ADDITIONAL DEFINITIONS.--For purposes of this subchapter, the following definitions shall apply:

(1)  CERTAIN INSTITUTIONS INCLUDED IN DEFINITION.--The term "financial institution" (as defined in subsection (a)) includes the following:

(A)  Any futures commission merchant, commodity trading advisor, or commodity pool operator registered, or required to register, under the Commodity Exchange Act.

[Codified to 31 U.S.C. 5312]

[Source:  Section 203 of title II of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1118), effective November 1, 1971; recodified by the Act of September 13, 1982 (Pub. L. No. 97--258; 96 Stat. 995), effective September 13, 1982; section 1362 of subtitle H of title I of the Act of October 27, 1986 (Pub. L. No. 99--570; 100 Stat. 3207--33), effective October 27, 1986; section 6185(a) and (g) of title VI of the Act of November 18, 1988 (Pub. L. No. 100--690; 102 Stat. 4354 and 4357), effective November 18, 1988; sections 405 and 409 of title IV of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2247 and 2252), effective September 23, 1994; sections 321(a) and (b), 359(a), and 365(b), (c)(1) and (2)(A) of title III of the Act of October 26, 2001 (Pub. L. No. 107--56; 115 Stat. 315, 328 and 335, respectively), effective October 26, 2001; section 6203(b) of title VI of the Act of December 17, 2004 (Pub. L. No. 108--458; 118 Stat. 3746), effective December 17, 2004]

§ 5313.  Reports on domestic coins and currency transactions

(a)  When a domestic financial institution is involved in a transaction for the payment, receipt, or transfer of United States coins or currency (or other monetary instruments the Secretary of the Treasury prescribes), in an amount, denomination, or amount and denomination, or under circumstances the Secretary prescribes by regulation, the institution and any other participant in the transaction the Secretary may prescribe shall file a report on the transaction at the time and in the way the Secretary prescribes. A participant acting for another person shall make the report as the agent or bailee of the person and identify the person for whom the transaction is being made.

(b)  The Secretary may designate a domestic financial institution as an agent of the United States Government to receive a report under this section. However, the Secretary may designate a domestic financial institution that is not insured, chartered, examined, or registered as a domestic financial institution only if the institution consents. The Secretary may suspend or revoke a designation for a violation of this subchapter or a regulation under this subchapter (except a violation of section 5315 of this title or a regulation prescribed under section 5315), section 411 of the National Housing Act (12 U.S.C. 1730d), or section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b).

(c)(1)  A person (except a domestic financial institution designated under subsection (b) of this section) required to file a report under this section shall file the report--

(A)  with the institution involved in the transaction if the institution was designated;

(B)  in the way the Secretary prescribes when the institution was not designated; or

(C)  with the Secretary.

(2) The Secretary shall prescribe--

(A)  the filing procedure for a domestic financial institution designated under subsection (b) of this section; and

(B)  the way the institution shall submit reports filed with it.

(d)  MANDATORY EXEMPTIONS FROM REPORTING REQUIREMENTS.--

(1)  IN GENERAL.--The Secretary of the Treasury shall exempt, pursuant to section 5318(a)(6), a depository institution from the reporting requirements of subsection (a) with respect to transactions between the depository institution and the following categories of entities:

(A)  Another depository institution.

(B)  A department or agency of the United States, any State, or any political subdivision of any State.

(C)  Any entity established under the laws of the United States, any State, or any political subdivision of any State, or under an interstate compact between 2 or more States, which exercises governmental authority on behalf of the United States or any such State or political subdivision.

(D)  Any business or category of business the reports on which have little or no value for law enforcement purposes.

(2)  NOTICE OF EXEMPTION.--The Secretary of the Treasury shall publish in the Federal Register at such times as the Secretary determines to be appropriate (but not less frequently than once each year) a list of all the entities whose transactions with a depository institution are exempt under this subsection from the reporting requirements of subsection (a).

(e)  DISCRETIONARY EXEMPTIONS FROM REPORTING REQUIREMENTS.--

(1)  IN GENERAL.--The Secretary of the Treasury may exempt, pursuant to section 5318(a)(6), a depository institution from the reporting requirements of subsection (a) with respect to transactions between the depository institution and a qualified business customer of the institution on the basis of information submitted to the Secretary by the institution in accordance with procedures which the Secretary shall establish.

(2)  QUALIFIED BUSINESS CUSTOMER DEFINED.--For purposes of this subsection, the term "qualified business customer" means a business which--

(A)  maintains a transaction account (as defined in section 19(b)(1)(C) of the Federal Reserve Act) at the depository institution;

(B)  frequently engages in transactions with the depository institution which are subject to the reporting requirements of subsection (a); and

(C)  meets criteria which the Secretary determines are sufficient to ensure that the purposes of this subchapter are carried out without requiring a report with respect to such transactions.

(3)  CRITERIA FOR EXEMPTION.--The Secretary of the Treasury shall establish, by regulation, the criteria for granting and maintaining an exemption under paragraph (1).

(4)  GUIDELINES.--

(A)  IN GENERAL.--The Secretary of the Treasury shall establish guidelines for depository institutions to follow in selecting customers for an exemption under this subsection.

(B)  CONTENTS.--The guidelines may include a description of the types of businesses or an itemization of specific businesses for which no exemption will be granted under this subsection to any depository institution.

(5)  ANNUAL REVIEW.--The Secretary of the Treasury shall prescribe regulations requiring each depository institution to--

(A)  review, at least once each year, the qualified business customers of such institution with respect to whom an exemption has been granted under this subsection; and

(B)  upon the completion of such review, resubmit information about such customers, with such modifications as the institution determines to be appropriate, to the Secretary for the Secretary's approval.

(6)  2-YEAR PHASE-IN PROVISION.--During the 2-year period beginning on the date of enactment of the Money Laundering Suppression Act of 1994, this subsection shall be applied by the Secretary on the basis of such criteria as the Secretary determines to be appropriate to achieve an orderly implementation of the requirements of this subsection.

(f)  PROVISIONS APPLICABLE TO MANDATORY AND DISCRETIONARY EXEMPTIONS.--

(1)  LIMITATION ON LIABILITY OF DEPOSITORY INSTITUTIONS.--No depository institution shall be subject to any penalty which may be imposed under this subchapter for the failure of the institution to file a report with respect to a transaction with a customer for whom an exemption has been granted under subsection (d) or (e) unless the institution--

(A)  knowingly files false or incomplete information to the Secretary with respect to the transaction or the customer engaging in the transaction; or

(B)  has reason to believe at the time the exemption is granted or the transaction is entered into that the customer or the transaction does not meet the criteria established for granting such exemption.

(2)  COORDINATION WITH OTHER PROVISIONS.--Any exemption granted by the Secretary of the Treasury under section 5318(a) in accordance with this section, and any transaction which is subject to such exemption, shall be subject to any other provision of law applicable to such exemption, including--

(A)  the authority of the Secretary, under section 5318(a)(6), to revoke such exemption at any time; and

(B)  any requirement to report, or any authority to require a report on, any possible violation of any law or regulation or any suspected criminal activity.

(g)  DEPOSITORY INSTITUTION DEFINED.--For purposes of this section, the term "depository institution"--

(1)  has the meaning given to such term in section 19(b)(1)(A) of the Federal Reserve Act; and

(2)  includes--

(A)  any branch, agency, or commercial lending company (as such terms are defined in section 1(b) of the International Banking Act of 1978);

(B)  any corporation chartered under section 25A of the Federal Reserve Act; and

(C)  any corporation having an agreement or undertaking with the Board of Governors of the Federal Reserve System under section 25 of the Federal Reserve Act.

[Codified to 31 U.S.C. 5313]

[Source:  Sections 221, 222 and 223 of title II of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1122), effective November 1, 1971; recodified by the Act of September 13, 1982 (Pub. L. No. 97--258; 96 Stat. 996), effective September 13, 1982; as amended by section 402(a) of title IV of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2243), effective September 23, 1994]

§ 5314.  Records and reports on foreign financial agency transactions

(a)  Considering the need to avoid impeding or controlling the export or import of monetary instruments and the need to avoid burdening unreasonably a person making a transaction with a foreign financial agency, the Secretary of the Treasury shall require a resident or citizen of the United States or a person in, and doing business in, the United States, to keep records, file reports, or keep records and file reports, when the resident, citizen, or person makes a transaction or maintains a relation for any person with a foreign financial agency. The records and reports shall contain the following information in the way and to the extent the Secretary prescribes:

(1)  the identity and address of participants in a transaction or relationship.

(2)  the legal capacity in which a participant is acting.

(3)  the identity of real parties in interest.

(4)  a description of the transaction.

(b)  The Secretary may prescribe--

(1)  a reasonable classification of persons subject to or exempt from a requirement under this section or a regulation under this section;

(2)  a foreign country to which a requirement or a regulation under this section applies if the Secretary decides applying the requirement or regulation to all foreign countries is unnecessary or undesirable;

(3)  the magnitude of transactions subject to a requirement or a regulation under this section;

(4)  the kind of transaction subject to or exempt from a requirement or a regulation under this section; and

(5)  other matters the Secretary considers necessary to carry out this section or a regulation under this section.

(c)  A person shall be required to disclose a record required to be kept under this section or under a regulation under this section only as required by law.

[Codified to 31 U.S.C. 5314]

[Source:  Sections 241 and 242 of title II of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1124), effective November 1, 1971; recodified by the Act of September 13, 1982 (Pub. L. No. 97--258; 96 Stat. 997), effective September 13, 1982]

§ 5315.  Reports on foreign currency transactions

(a)  Congress finds that--

(1)  moving mobile capital can have a significant impact on the proper functioning of the international monetary system;

(2)  is it important to have the most feasible current and complete information on the kind and source of capital flows, including transactions by large United States businesses and their foreign affiliates; and

(3)  additional authority should be provided to collect information on capital flows under section 5(b) of the Trading With the Enemy Act (50 App. U.S.C. 5(b)) and section 8 of the Bretton Woods Agreement Act (22 U.S.C. 286f).

(b)  In this section, "United States person" and "foreign person controlled by a United States person" have the same meanings given those terms in section 7(f)(2)(A) and (C), respectively, of the Securities and Exchange Act of 1934 (15 U.S.C. 78g(f)(2)(A), (C)).

(c)  The Secretary of the Treasury shall prescribe regulations consistent with subsection (a) of this section requiring reports on foreign currency transactions conducted by a United States person or a foreign person controlled by a United States person. The regulations shall require that a report contain information and be submitted at the time and in the way, with reasonable exceptions and classifications, necessary to carry out this section.

[Codified to 31 U.S.C. 5315]

[Source:  Sections 201 and 202 of title II of the Act of September 21, 1973 (Pub. L. No. 93-110; 87 Stat. 353), effective September 21, 1973; recodified by the Act of September 13, 1982 (Pub. L. No. 97--258; 96 Stat. 997), effective September 13, 1982]

§ 5316.  Reports on exporting and importing monetary instruments

(a)  Except as provided in subsection (c) of this section, a person or an agent or bailee of the person shall file a report under subsection (b) of this section when the person, agent, or bailee knowingly--

(1)  transports, is about to transport or has transported, monetary instruments of more than $10,000 at one time--

(A)  from a place in the United States to or through a place outside the United States; or

(B)  to a place in the United States from or through a place outside the United States; or

(2)  receives monetary instruments of more than $10,000 at one time transported into the United States from or through a place outside the United States.

(b)  A report under this section shall be filed at the time and place the Secretary of the Treasury prescribes. The report shall contain the following information to the extent the Secretary prescribes:

(1)  the legal capacity in which the person filing the report is acting.

(2)  the origin, destination, and route of the monetary instruments.

(3)  when the monetary instruments are not legally and beneficially owned by the person transporting the instruments, or if the person transporting the instruments personally is not going to use them, the identity of the person that gave the instruments to the person transporting them, the identity of the person who is to receive them, or both.

(4)  the amount and kind of monetary instruments transported.

(5)  additional information.

(c)  This section or a regulation under this section does not apply to a common carrier of passengers when a passenger possesses a monetary instrument, or to a common carrier of goods if the shipper does not declare the instrument.

(d)  CUMULATION OF CLOSELY RELATED EVENTS.--The Secretary of the Treasury may prescribe regulations under this section defining the term "at one time" for purposes of subsection (a). Such regulations may permit the cumulation of closely related events in order that such events may collectively be considered to occur at one time for the purposes of subsection (a).

[Codified to 31 U.S.C. 5316]

[Source:  Section 231 of title II of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1122), effective November 1, 1971; recodified by the Act of September 13, 1982 (Pub. L. No. 97--258; 96 Stat. 998), effective September 13, 1982; amended by section 901(c) of chapter IX of the Act of October 12, 1984 (Pub. L. No. 98--473; 98 Stat. 2135), effective October 12, 1984; section 1358 of subtitle H of title I and section 3153 of subtitle B of title III of the Act of October 27, 1986 (Pub. L. No. 99--570; 100 Stat 3207-26 and 3207--94, respectively), effective October 27, 1986]

§ 5317.  Search and forfeiture of monetary instruments

(a)  The Secretary of the Treasury may apply to a court of competent jurisdiction for a search warrant when the Secretary reasonably believes a monetary instrument is being transported and a report on the instrument under section 5316 of this title has not been filed or contains a material omission or misstatement. The Secretary shall include a statement of information in support of the warrant. On a showing of probable cause, the court may issue a search warrant for a designated person or a designated or described place or physical object. This subsection does not affect the authority

(b)  SEARCHES AT BORDER.--For purposes of ensuring compliance with the requirements of section 5316, a customs officer may stop and search, at the border and without a search warrant, any vehicle, vessel, aircraft, or other conveyance, any envelope or other container, and any person entering or departing from the United States.

(c)  FORFEITURE.--

(1)  CRIMINAL FORFEITURE.--

(A)  IN GENERAL.--The court in imposing sentence for any violation of section 5313, 5316, or 5324 of this title, or any conspiracy to commit such violation, shall order the defendant to forfeit all property, real or personal, involved in the offense and any property traceable thereto.

(B)  PROCEDURE.--Forfeitures under this paragraph shall be governed by the procedures established in section 413 of the Controlled Substances Act.

(2)  CIVIL FORFEITURE.--Any property involved in a violation of section 5313, 5316, or 5324 of this title, or any conspiracy to commit any such violation, and any property traceable to any such violation or conspiracy, may be seized and forfeited to the United States in accordance with the procedures governing civil forfeitures in money laundering cases pursuant to section 981(a)(1)(A) of title 18, United States Code.

[Codified to 31 U.S.C. 5317]

[Source:  Sections 232 and 235 of title II of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1123), effective November 1, 1971; recodified by the Act of September 13, 1982 (Pub. L. No. 97--258; 96 Stat 998), effective September 13, 1982; amended by section 901(d) of chapter IX of the Act of October 12, 1984 (Pub. L. No. 98--473; 98 Stat. 2135), effective October 12, 1984; section 1355(a) and (b) of subtitle H of title I of the Act of October 27, 1986 (Pub. L. No. 99--570; 100 Stat. 3207--22 and 3207--23 respectively), with section 1355(a) effective October 27, 1986 and section 1355(b) effective with respect to violations committed after the end of the 3-month period beginning on the date of the enactment (January 27, 1987); section 1525(c)(2) of title XV of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4065), effective October 28, 1992; sections 365(b)(2)(B) and 372(a) of title III of the Act of October 26, 2001 (Pub. L. No. 107--56; 115 Stat. 335 and 338, respectively), effective October 26, 2001]

§ 5318.  Compliance and exemptions, and summons authority

(a)  GENERAL POWERS OF SECRETARY.--The Secretary of the Treasury may (except under section 5315 of this title and regulations prescribed under section 5315)--

(1)  except as provided in subsection (b)(2), delegate duties and powers under this subchapter to an appropriate supervising agency and the United States Postal Service;

(2)  require a class of domestic financial institutions or nonfinancial trade or business to maintain appropriate procedures to ensure compliance with this subchapter and regulations prescribed under this subchapter or to guard against money laundering;

(3)  examine any books, papers, records or other data of domestic financial institutions or nonfinancial trade or business relevant to the recordkeeping or reporting requirements of this subchapter;

(4)  summon a financial institution or nonfinancial trades or businesses, an officer or employee of a financial institution or nonfinancial trades or businesses (including a former officer or employee), or any person having possession, custody, or care of the reports and records required under this subchapter, to appear before the Secretary of the Treasury or his delegate at a time and place named in the summons and to produce such books, papers, records, or other data, and to give testimony, under oath, as may be relevant or material to an investigation described in subsection (b);

(5)  exempt from the requirements of this subchapter any class of transactions within any State if the Secretary determines that--

(A)  under the laws of such State, that class of transactions is subject to requirements substantially similar to those imposed under this subchapter; and

(B)  there is adequate provision for the enforcement of such requirements; and

(6)  prescribe an appropriate exemption from a requirement under this subchapter and regulations prescribed under this subchapter. The Secretary may revoke an exemption under this paragraph or paragraph (5) by actually or constructively notifying the parties affected. A revocation is effective during judicial review.

(b)  LIMITATIONS ON SUMMONS POWER.--

(1)   SCOPE OF POWER.--The Secretary of the Treasury may take any action described in paragraph (3) or (4) of subsection (a) only in connection with investigations for the purpose of civil enforcement of violations of this subchapter, section 21 of the Federal Deposit Insurance Act, section 411 of the National Housing Act, or chapter 2 of Public Law 91--508 (12 U.S.C. 1951 et seq.) or any regulation under any such provision.

(2)  AUTHORITY TO ISSUE.--A summons may be issued under subsection (a)(4) only by, or with the approval of, the Secretary of the Treasury or a supervisory level delegate of the Secretary of the Treasury.

(c)   ADMINISTRATIVE ASPECTS OF SUMMONS.--

(1)   PRODUCTION AT DESIGNATED SITE.--A summons issued pursuant to this section may require that books, papers, records, or other data stored or maintained at any place be produced at any designated location in any State or in any territory or other place subject to the jurisdiction of the United States not more that 500 miles distant from any place where the financial institution or nonfinancial trade or business operates or conducts business in the United States.

(2)   FEES AND TRAVEL EXPENSES.--Persons summoned under this section shall be paid the same fees and mileage for travel in the United States that are paid witnesses in the courts of the United States.

(3)   NO LIABILITY FOR EXPENSES.--The United States shall not be liable for any expense, other than an expense described in paragraph (2), incurred in connection with the production of books, papers, records, or other data under this section.

(d)   SERVICE OF SUMMONS.--Service of a summons issued under this section may be by registered mail or in such other manner calculated to give actual notice as the Secretary may prescribe by regulation.

(e)   CONTUMACY OR REFUSAL.—

(1)   REFERRAL TO ATTORNEY GENERAL.--In case of contumacy by a person issued a summons under paragraph (3) or (4) of subsection (a) or a refusal by such person to obey such summons, the Secretary of the Treasury shall refer the matter to the Attorney General.

(2)   JURISDICTION OF COURT.--The Attorney General may invoke the aid of any court of the United States within the jurisdiction of which--

(A)  the investigation which gave rise to the summons is being or has been carried on;

(B)  the person summoned is an inhabitant; or

(C)  the person summoned carries on business or may be found,

to compel compliance with the summons.

(3)  COURT ORDER.--The court may issue an order requiring the person summoned to appear before the Secretary or his delegate to produce books, papers, records, or other data, to give testimony as may be necessary to explain how such material was compiled and maintained, and to pay the costs of the proceeding.

(4)   FAILURE TO COMPLY WITH ORDER.--Any failure to obey the order of the court may be punished by the court as a contempt thereof.

(5)   SERVICE OF PROCESS.--All process in any case under this subsection may be served in any judicial district in which such person may be found.

(f)  WRITTEN AND SIGNED STATEMENT REQUIRED.--No person shall qualify for an exemption under subsection (a)(5) unless the relevant financial institution or nonfinancial trade or business prepares and maintains a statement which--

(1)  describes in detail the reasons why such person is qualified for such exemption; and

(2)  contains the signature of such person.

(g)  REPORTING OF SUSPICIOUS TRANSACTIONS.--

(1)  IN GENERAL.--The Secretary may require any financial institution, and any director, officer, employee, or agent of any financial institution, to report any suspicious transaction relevant to a possible violation of law or regulation.

(2)  NOTIFICATION PROHIBITED.--

(A)  IN GENERAL.--If a financial institution or any director, officer, employee, or agent of any financial institution, voluntarily or pursuant to this section or any other authority, reports a suspicious transaction to a government agency--

(i)  neither the financial institution, director, officer, employee, or agent of such institution (whether or not any such person is still employed by the institution), nor any other current or former director, officer, or employee of, or contractor for, the financial institution or other reporting person, may notify any person involved in the transaction that the transaction has been reported; and

(ii)  no current or former officer or employee of or contractor for the Federal Government or of or for any State, local, tribal, or territorial government within the United States, who has any knowledge that such report was made may disclose to any person involved in the transaction that the transaction has been reported, other than as necessary to fulfill the official duties of such officer or employee.

(B)  DISCLOSURES IN CERTAIN EMPLOYMENT REFERENCES.--

(i)  RULE OF CONSTRUCTION.--Notwithstanding the application of subparagraph (A) in any other context, subparagraph (A) shall not be construed as prohibiting any financial institution, or any director, officer, employee, or agent of such institution, from including information that was included in a report to which subparagraph (A) applies--

(I)  in a written employment reference that is provided in accordance with section 18(w) of the Federal Deposit Insurance Act in response to a request from another financial institution; or

(II)  in a written termination notice or employment reference that is provided in accordance with the rules of a self-regulatory organization registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission, except that such written reference or notice may not disclose that such information was also included in any such report, or that such report was made.

(ii)  INFORMATION NOT REQUIRED.--Clause (i) shall not be construed, by itself, to create any affirmative duty to include any information described in clause (i) in any employment reference or termination notice referred to in clause (i).

(3)  LIABILITY FOR DISCLOSURES.--

(A)  IN GENERAL.--Any financial institution that makes a voluntary disclosure of any possible violation of law or regulation to a government agency or makes a disclosure pursuant to this subsection or any other authority, and any director, officer, employee, or agent of such institution who makes, or requires another to make any such disclosure, shall not be liable to any person under any law or regulation of the United States, any constitution, law, or regulation of any State or political subdivision of any State, or under any contract or other legally enforceable agreement (including any arbitration agreement), for such disclosure or for any failure to provide notice of such disclosure to the person who is the subject of such disclosure or any other person identified in the disclosure.

(B)  RULE OF CONSTRUCTION.--Subparagraph (A) shall not be construed as creating--

(i)  any inference that the term "person", as used in such subparagraph, may be construed more broadly than its ordinary usage so as to include any government or agency of government; or

(ii)  any immunity against, or otherwise affecting, any civil or criminal action brought by any government or agency of government to enforce any constitution, law, or regulation of such government or agency.

(4)  SINGLE DESIGNEE FOR REPORTING SUSPICIOUS TRANSACTIONS.--

(A)  IN GENERAL.--In requiring reports under paragraph (1) of suspicious transactions, the Secretary of the Treasury shall designate, to the extent practicable and appropriate, a single officer or agency of the United States to whom such reports shall be made.

(B)  DUTY OF DESIGNEE.--The officer or agency of the United States designated by the Secretary of the Treasury pursuant to subparagraph (A) shall refer any report of a suspicious transaction to any appropriate law enforcement, or supervisory agency, or United States intelligence agency for use in the conduct of intelligence or counterintelligence activities, including analysis, to protect against international terrorism.

(C)  COORDINATION WITH OTHER REPORTING REQUIREMENTS..--Subparagraph (A) shall not be construed as precluding any supervisory agency for any financial institution from requiring the financial institution to submit any information or report to the agency or another agency pursuant to any other applicable provision of law.

(h)  ANTI-MONEY LAUNDERING PROGRAMS.--

(1)  IN GENERAL.--In order to guard against money laundering through financial institutions, anti-money laundering programs, including at a minimum

(A)  the development of internal policies, procedures, and controls,

(B)  the designation of a compliance officer,

(C)  an ongoing employee training program, and

(D)  an independent audit function to test programs.

(2)  REGULATIONS.--The Secretary of the Treasury, after consultation with the appropriate Federal functional regulator (as defined in section 509 of the Gramm-Leach-Bliley Act), may prescribe minimum standards for programs established under paragraph (1), and may exempt from the application of those standards any financial institution that is not subject to the provisions of the rules contained in part 103 of title 31, of the Code of Federal Regulations, or any successor rule thereto, for so long as such financial institution is not subject to the provisions of such rules.

(3)  CONCENTRATION ACCOUNTS.--The Secretary may prescribe regulations under this subsection that govern maintenance of concentration accounts by financial institutions, in order to ensure that such accounts are not used to prevent association of the identity of an individual customer with the movement of funds of which the customer is the direct or beneficial owner, which regulations shall, at a minimum--

(A)  prohibit financial institutions from allowing clients to direct transactions that move their funds into, out of, or through the concentration accounts of the financial institution;

(B)  prohibit financial institutions and their employees from informing customers of the existence of, or the means of identifying, the concentration accounts of the institution; and

(C)  require each financial institution to establish written procedures governing the documentation of all transactions involving a concentration account, which procedures shall ensure that, any time a transaction involving a concentration account commingles funds belonging to 1 or more customers, the identity of, and specific amount belonging to, each customer is documented.

(i)  DUE DILIGENCE FOR UNITED STATES PRIVATE BANKING AND CORRESPONDENT BANK ACCOUNTS INVOLVING FOREIGN PERSONS.--

(1)  IN GENERAL.--Each financial institution that establishes, maintains, administers, or manages a private banking account or a correspondent account in the United States for a non-United States person, including a foreign individual visiting the United States, or a representative of a non-United States person shall establish appropriate, specific, and, where necessary, enhanced, due diligence policies, procedures, and controls that are reasonably designed to detect and report instances of money laundering through those accounts.

(2)  ADDITIONAL STANDARDS FOR CERTAIN CORRESPONDENT ACCOUNTS.--

(A)  In General.--Subparagraph (B) shall apply if a correspondent account is requested or maintained by, or on behalf of, a foreign bank operating--

(i)  under an offshore banking license; or

(ii)  under a banking license issued by a foreign country that has been designated--

(I)  as noncooperative with international anti-money laundering principles or procedures by an intergovernmental group or organization of which the United States is a member, with which designation the United States representative to the group or organization concurs; or

(II)  by the Secretary of the Treasury as warranting special measures due to money laundering concerns.

(B)  POLICIES, PROCEDURES, AND CONTROLS.--The enhanced due diligence policies, procedures, an controls required under paragraph (1) shall, at a minimum, ensure that the financial institution in the United States takes reasonable steps--

(i)  to ascertain for any such foreign bank, the shares of which are not publicly traded, the identity of each of the owners of the foreign bank, and the nature and extent of the ownership interest of each such owner;

(ii)  to conduct enhanced scrutiny of such account to guard against money laundering and report any suspicious transactions under subsection (g); and

(iii)  to ascertain whether such foreign bank provides correspondent accounts to other foreign banks and, if so, the identity of those foreign banks and related due diligence information, as appropriate under paragraph (1).

(3)  MINIMUM STANDARDS FOR PRIVATE BANKING ACCOUNTS.--If a private banking account is requested or maintained by, or on behalf of, a non-United States person, then the due diligence policies, procedures, and controls required under paragraph (1) shall, at a minimum, ensure that the financial institution takes reasonable steps--

(A)  to ascertain the identity of the nominal and beneficial owners of, and the source of funds deposited into, such account as needed to guard against money laundering and report any suspicious transactions under subsection (g); and

(B)  to conduct enhanced scrutiny of any such account that is requested or maintained by, or on behalf of, a senior foreign political figure, or any immediate family member or close associate of a senior foreign political figure, that is reasonably designed to detect and report transactions that may involve the proceeds of foreign corruption.

(4)  DEFINITIONS.--For purposes of this subsection, the following definitions shall apply:

(A)  OFFSHORE BANKING LICENSE.--The term "offshore banking license" means a license to conduct banking activities which, as a condition of the license, prohibits the licensed entity from conducting banking activities with the citizens of, or with the local currency of, the country which issued the license.

(B)  PRIVATE BANKING ACCOUNT.--The term "private banking account" means an account (or any combination of accounts) that--

(i)  requires a minimum aggregate deposits of funds or other assets of not less than $1,000,000;

(ii)  is established on behalf of 1 or more individuals who have a direct or beneficial ownership interest in the account; and (iii)  is assigned to, or is administered or managed by, in whole or in part, an officer, employee, or agent of a financial institution acting as a liaison between the financial institution and the direct or beneficial owner of the account.

(j)  PROHIBITION ON UNITED STATES CORRESPONDENT ACCOUNTS WITH FOREIGN SHELL BANKS.--

(1)  IN GENERAL.--A financial institution described in subparagraphs (A) through (G) of section 5312(a)(2) (in this subsection referred to as a "covered financial institution") shall not establish, maintain, administer, or manage a correspondent account in the United States for, or on behalf of, a foreign bank that does not have a physical presence in any country.

(2)  PREVENTION OF INDIRECT SERVICE TO FOREIGN SHELL BANKS.--A covered financial institution shall take reasonable steps to ensure that any correspondent account established, maintained, administered, or managed by that covered financial institution in the United States for a foreign bank is not being used by that foreign bank to indirectly provide banking services to another foreign bank that does not have a physical presence in any country. The Secretary of the Treasury shall, by regulation, delineate the reasonable steps necessary to comply with this paragraph.

(3)  EXCEPTION.--Paragraphs (1) and (2) do not prohibit a covered financial institution from providing a correspondent account to a foreign bank, if the foreign bank--

(A)  is an affiliate of a depository institution, credit union, or foreign bank that maintains a physical presence in the United States or a foreign country, as applicable; and

(B)  is subject to supervision by a banking authority in the country regulating the affiliated depository institution, credit union, or foreign bank described in subparagraph (A), as applicable.

(4)  DEFINITIONS.--For purposes of this subsection--

(A)  the term "affiliate" means a foreign bank that is controlled by or is under common control with a depository institution, credit union, or foreign bank; and

(B)  the term "physical presence" means a place of business that--

(i)  is maintained by a foreign bank;

(ii)  is located at a fixed address (other than solely an electronic address) in a country in which the foreign bank is authorized to conduct banking activities, as which location the foreign bank--

(I)  employs 1 or more individuals on a full-time basis; and

(II)  maintains operating records related to its banking activities; and

(iii)  is subject to inspection by the banking authority which licensed the foreign bank to conduct banking activities.

(k)  BANK RECORDS RELATED TO ANTI-MONEY LAUNDERING PROGRAMS.--

(1)  DEFINITIONS.--For purposes of this subsection, the following definitions shall apply:

(A)  APPROPRIATE FEDERAL BANKING AGENCY.--The term "appropriate Federal banking agency" has the same meaning as in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).

(B)  INCORPORATED TERM.--The term "correspondent account" has the same meaning as in section 5318A(e)(1)(B).

(2)  120-HOUR RULE.--Not later than 120 hours after receiving a request by an appropriate Federal banking agency for information related to anti-money laundering compliance by a covered financial institution or a customer of such institution, a covered financial institution shall provide to the appropriate Federal banking agency, or make available at a location specified by the representative of the appropriate Federal banking agency, information and account documentation for any account opened, maintained, administered or managed in the United States by the covered financial institution.

(3)  FOREIGN BANK RECORDS.--

(A)  Summons or Subpoena of Records.--

(i)  IN GENERAL.--The Secretary of the Treasury or the Attorney General may issue a summons or subpoena to any foreign bank that maintains a correspondent account in the United States and request records related to such correspondent account, including records maintained outside of the United States relating to the deposit of funds into the foreign bank.

(ii)  SERVICE OF SUMMONS OR SUBPOENA.--A summons or subpoena referred to in clause (i) may be served on the foreign bank in the United States if the foreign bank has a representative in the United States, or in a foreign country pursuant to any mutual legal assistance treaty, multilateral agreement, or other request for international law enforcement assistance.

(B)  ACCEPTANCE OF SERVICE.--

(i)  MAINTAINING RECORDS IN THE UNITED STATES.--Any covered financial institution which maintains a correspondent account in the United States for a foreign bank shall maintain records in the United States identifying the owners of such foreign bank and the name and address of a person who resides in the United States and is authorized to accept service of legal process for records regarding the correspondent account.

(ii)  LAW ENFORCEMENT REQUEST.--Upon receipt of a written request from a Federal law enforcement officer for information required to be maintained under this paragraph, the covered financial institution shall provide the information to the requesting officer not later than 7 days after receipt of the request.

(C)  TERMINATION OF CORRESPONDENT RELATIONSHIP.--

(i)  TERMINATION UPON RECEIPT OF NOTICE.--A covered financial institution shall terminate any correspondent relationship with a foreign bank not later than 10 business days after receipt of written notice from the Secretary of the Attorney General (in each case, after consultation with the other) that the foreign bank has failed--

(I)  to comply with a summons or subpoena issued under subparagraph (A); or

(II)  to initiate proceedings in a United States court contesting such summons or subpoena.

(ii)  LIMITATION ON LIABILITY.--A covered financial institution shall not be liable to any person in any court or arbitration proceeding for terminating a correspondent relationship in accordance with this subsection.

(iii)  FAILURE TO TERMINATE RELATIONSHIP.--Failure to terminate a correspondent relationship in accordance with this subsection shall render the covered financial institution liable for a civil penalty of up to $10,000 per day until the correspondent relationship is to terminated.

(l)*   IDENTIFICATION AND VERIFICATION OF ACCOUNTHOLDERS.--

(1)  IN GENERAL.--Subject to the requirements of this subsection, the Secretary of the Treasury shall prescribe regulations setting forth the minimum standards for financial institutions and their customers regarding the identity of the customer that shall apply in connection with the opening of an account at a financial institution.

(2)  MINIMUM REQUIREMENTS.--The regulations shall, at a minimum, require financial institutions to implement, and customers (after being given adequate notice) to comply with, reasonable procedures for--

(A)  verifying the identity of any person seeking to open an account to the extent reasonable and practicable;

(B)  maintaining records of the information used to verify a person's identity, including name, address, and other identifying information; and

(C)  consulting lists of known or suspected terrorist or terrorist organizations provided to the financial institution by any government agency to determine whether a person seeking to open an account appears on any such list.

(3)  FACTORS TO BE CONSIDERED.--In prescribing regulations under this subsection, the Secretary shall take into consideration the various types of accounts maintained by various types of financial institutions, the various methods of opening accounts, and the various types of identifying information available.

(4)  CERTAIN FINANCIAL INSTITUTIONS.--In the case of any financial institution the business of which is engaging in financial activities described in section 4(k) of the Bank Holding Company Act of 1956 (including financial activities subject to the jurisdiction of the Commodity Futures Trading Commission), the regulations prescribed by the Secretary under paragraph (1) shall be prescribed jointly with each Federal functional regulator (as defined in section 509 of the Gramm-Leach-Bliley Act, including the Commodity Futures Trading commission) appropriate for such financial institution.

(5)  EXEMPTIONS.--The Secretary (and, in the case of any financial institution described in paragraph (4), any Federal agency described in such paragraph) may, by regulation or order, exempt any financial institution or type of account from the requirements of any regulation prescribed under this subsection in accordance with such standards and procedures as the Secretary may prescribe.

(6)  EFFECTIVE DATE.--Final regulations prescribed under this subsection shall take effect before the end of the 1-year period beginning on the date of enactment of the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001.

(m)*   APPLICABILITY OF RULES.--Any rules promulgated pursuant to the authority contained in section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b) shall apply, in addition to any other financial institution to which such rules apply, to any person that engages as a business in the transmission of funds, including any person who engages as a business in an informal money transfer system or any network of people who engage as a business in facilitating the transfer of money domestically or internationally outside of the conventional financial institutions system.

(n)REPORTING OF CERTAIN CROSS-BORDER TRANSMITTALS OF FUNDS.--

(1)  IN GENERAL.--Subject to paragraphs (3) and (4), the Secretary shall prescribe regulations requiring such financial institutions as the Secretary determines to be appropriate to report to the Financial Crimes Enforcement Network certain cross-border electronic transmittals of funds, if the Secretary determines that reporting of such transmittals is reasonably necessary to conduct the efforts of the Secretary against money laundering and terrorist financing.

(2)  LIMITATION ON REPORTING REQUIREMENTS.--Information required to be reported by the regulations prescribed under paragraph (1) shall not exceed the information required to be retained by the reporting financial institution pursuant to section 21 of the Federal Deposit Insurance Act and the regulations promulgated thereunder, unless--

(A)  the Board of Governors of the Federal Reserve System and the Secretary jointly determine that a particular item or items of information are not currently required to be retained under such section or such regulations; and

(B)  the Secretary determines, after consultation with the Board of Governors of the Federal Reserve System, that the reporting of such information is reasonably necessary to conduct the efforts of the Secretary to identify cross-border money laundering and terrorist financing.

(3)  FORM AND MANNER OF REPORTS.--In prescribing the regulations required under paragraph (1), the Secretary shall, subject to paragraph (2), determine the appropriate form, manner, content, and frequency of filing of the required reports.

(4)  FEASIBILITY REPORT.--

(A)  IN GENERAL.--Before prescribing the regulations required under paragraph (1), and as soon as is practicable after the date of enactment of the Intelligence Reform and Terrorism Prevention Act of 2004, the Secretary shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives that--

(i)  identifies the information in cross-border electronic transmittals of funds that may be found in particular cases to be reasonably necessary to conduct the efforts of the Secretary to identify money laundering and terrorist financing, and outlines the criteria to be used by the Secretary to select the situations in which reporting under this subsection may be required;

(ii)  outlines the appropriate form, manner, content, and frequency of filing of the reports that may be required under such regulations;

(iii)  identifies the technology necessary for the Financial Crimes Enforcement Network to receive, keep, exploit, protect the security of, and disseminate information from reports of cross-border electronic transmittals of funds to law enforcement and other entities engaged in efforts against money laundering and terrorist financing; and

(iv)  discusses the information security protections required by the exercise of the Secretary's authority under this subsection.

(B)  CONSULTATION.--In reporting the feasibility report under subparagraph (A), the Secretary may consult with the Bank Secrecy Act Advisory Group established by the Secretary, and any other group considered by the Secretary to be relevant.

(5)  REGULATIONS.--

(A)  IN GENERAL.--Subject to subparagraph (B), the regulations required by paragraph (1) shall be prescribed in final form by the Secretary, in consultation with the Board of Governors of the Federal Reserve System, before the end of the 3-year period beginning on the date of enactment of the National Intelligence Reform Act of 2004.

(B)  TECHNOLOGICAL FEASIBILITY.--No regulations shall be prescribed under this subsection before the Secretary certifies to the Congress that the Financial Crimes Enforcement Network has the technological systems in place to effectively and efficiently receive, keep, exploit, protect the security of, and disseminate information from reports of cross-border electronic transmittals of funds to law enforcement and other entities engaged in efforts against money laundering and terrorist financing.

[Codified to 31 U.S.C. 5318]

[Source:  Sections 205 and 206 of title II of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1120), effective November 1, 1971; recodified by the Act of September 13, 1982 (Pub. L. No. 97--258; 96 Stat. 999), effective September 12, 1982; 6469(c) amended by section 1356 of subtitle H of title I of the Act of October 27, 1986 (Pub. L. No. 99--570; 100 Stat. 3207--23, 3207--24 and 3207--25), effective October 27, 1986; sections 6185(e) and 6469(c) of title VI of the Act of November 18, 1988 (Pub. L. No. 100--690; 102 Stat. 4357, 4377), effective November 18, 1988; sections 1504(d)(2), 1517(b), and 1523 of title XV of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4055, 4058, and 4059), effective October 28, 1992; sections 403(a) and 410 of title IV of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2245 and 2252), effective September 23, 1994; sections 312(a), 313(a), 319(b), 326(a), 351, 352(a), 358(b), 359(c) and 365(b)(2)(B) of title III of the Act of October 26, 2001 (Pub. L. No. 107--56; 115 Stat. 304, 306, 312, 317, 320, 322, 326, 328 and 335, respectively), effective October 26, 2001, except subsection (j), which is effective December 24, 2001; section 811(g) of title VIII of the Act of December 4, 2003 (Pub. L. No. 108--159; 117 Stat. 2012; sections 6202(h), 6203(c) and (d), and 6302 of title VI of the Act of December 17, 2004 (Pub. L. No. 108--458; 118 Stat. 3746, 3748; section 407 of title IV of the Act of March 9, 2006 (Pub. L. No. 109--177; 120 Stat. 245), effective March 9, 2006; section 118(1) and (2) of title I of the Act of December 23, 2012 (Pub. L. No. 112--74; 125 Stat. 891), effective December 23, 2012]

§ 5318A.  Special measures for jurisdictions, financial institutions, international transactions or types of accounts of primary money laundering concern.

(a)  INTERNATIONAL COUNTER-MONEY LAUNDERING REQUIREMENTS.--

(1)  IN GENERAL.--The Secretary of the Treasury may require domestic financial institutions and domestic financial agencies to take 1 or more of the special measures described in subsection (b) if the Secretary finds that reasonable grounds exist for concluding that a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, 1 or more classes of transactions within or involving, a jurisdiction outside of the United States, or 1 or more types of accounts is of primary money laundering concern, in accordance with subsection (c).

(2)  FORM OF REQUIREMENT.--The special measures described in--

(A)  subsection (b) may be imposed in such sequence or combination as the Secretary shall determine;

(B)  paragraphs (1) through (4) of subsection (b) may be imposed by regulation, order, or otherwise as permitted by law; and

(C)  subsection (b)(5) may be imposed only by regulation.

(3)  DURATION OF ORDERS; RULEMAKING.--Any order by which a special measure described in paragraphs (1) through (4) of subsection (b) is imposed (other than an order described in section 5326)--

(A)  shall be issued together with a notice of proposed rulemaking relating to the imposition of such special measure; and

(B)  may not remain in effect for more than 120 days, except pursuant to a rule promulgated on or before the end of the 120-day period beginning on the date of issuance of such order.

(4)  PROCESS FOR SELECTING SPECIAL MEASURES.--In selecting which special measure or measures to take under this subsection, the Secretary of the Treasury--

(A)  shall consult with the Chairman of the Board of Governors of the Federal Reserve System, any other appropriate Federal banking agency (as defined in section 3 of the Federal Deposit Insurance Act), the Secretary of State, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the National Credit Union Administration Board, and in the sole discretion of the Secretary, such other agencies and interested parties as the Secretary may find to be appropriate; and

(B)  shall consider--

(i)  whether similar action has been or is being taken by other nations or multilateral groups:

(ii)  whether the imposition of any particular special measure would create a significant competitive disadvantage, including any undue cost or burden associated with compliance, for financial institutions organized or licensed in the United States;

(iii)  the extent to which the action or the timing of the action would have a significant adverse systemic impact on the international payment, clearance, and settlement system, or on legitimate business activities involving the particular jurisdiction, institution, class of transactions, or type of account; and

(iv)  the effect of the action on United States national security and foreign policy.

(5)  NO LIMITATION ON OTHER AUTHORITY.--This section shall not be construed as superseding or otherwise restricting any other authority granted to the Secretary, or to any other agency, by this subchapter or otherwise.

(b)  SPECIAL MEASURES.--The special measures referred to in subsection (a), with respect to a jurisdiction outside of the United States, financial institution operating outside of the United States, class of transaction within, or involving, a jurisdiction outside of the United States, or 1 or more types of accounts are as follows:

(1)  RECORDKEEPING AND REPORTING OF CERTAIN FINANCIAL TRANSACTIONS.--

(A)  IN GENERAL.--The Secretary of the Treasury may require any domestic financial institution or domestic financial agency to maintain records, file reports, or both, concerning the aggregate amount of transactions, or concerning each transaction, with respect to a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, 1 or more classes of transactions within, or involving, a jurisdiction outside of the United States, or 1 or more types of accounts if the Secretary finds any such jurisdiction, institution, class of transactions, or type of account to be of primary money laundering concern.

(B)  FORM OF RECORDS AND REPORTS.--Such records and reports shall be made and retained at such time, in such manner, and for such period of time, as the Secretary shall determine, and shall include such information as the Secretary may determine, including--

(i)  the identity and address of the participants in a transaction or relationship, including the identity of the originator of any funds transfer;

(ii)  the legal capacity in which a participant in any transaction is acting;

(iii)  the identity of the beneficial owner of the funds involved in any transaction, in accordance with such procedures as the Secretary determines to be reasonable and practicable to obtain and retain the information; and

(iv)  a description of any transaction.

(2)  INFORMATION RELATING TO BENEFICIAL OWNERSHIP.--In addition to any other requirement under any other provision of law, the Secretary may require any domestic financial institution or domestic financial agency to take such steps as the Secretary may determine to be reasonable and practicable to obtain and retain information concerning the beneficial ownership of any account opened or maintained in the United States by a foreign person (other than a foreign entity whose shares are subject to public reporting requirements or are listed and traded on a regulated exchange or trading market), or a representative of such a foreign person, that involves a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, 1 or more classes of transactions within, or involving, a jurisdiction outside of the United States, or 1 or more types of accounts if the Secretary finds any such jurisdiction, institution, or transaction or type of account to be of primary money laundering concern.

(3)  INFORMATION RELATING TO CERTAIN PAYABLE-THROUGH ACCOUNTS.--If the Secretary finds a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, or 1 or more classes of transactions within, or involving, a jurisdiction outside of the United States to be of primary money laundering concern, the Secretary may require any domestic financial institution or domestic financial agency that opens or maintains a payable-through account in the United States for a foreign financial institution involving any such jurisdiction or any such financial institution operating outside of the United States, or a payable through account through which any such transaction may be conducted, as a condition of opening or maintaining such account--

(A)  to identify each customer (and representative of such customer) of such financial institution who is permitted to use, or whose transactions are routed through, such payable-through account; and

(B)  to obtain, with respect to each such customer (and each such representative), information that is substantially comparable to that which the depository institution obtains in the ordinary course of business with respect to its customers residing in the United States.

(4)  INFORMATION RELATING TO CERTAIN CORRESPONDENT ACCOUNTS.--If the Secretary finds a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, or 1 or more classes of transactions within, or involving, a jurisdiction outside of the United States to be of primary money laundering concern, the Secretary may require any domestic financial institution or domestic financial agency that opens or maintains a correspondent account in the United States for a foreign financial institution involving any such jurisdiction or any such financial institution operating outside of the United States, or a correspondent account through which any such transaction may be conducted, as a condition of opening or maintaining such account--

(A)  to identify each customer (and representative of such customer) of any such financial institution who is permitted to use, or whose transactions are routed through, such correspondent account; and

(B)  to obtain, with respect to each such customer (and each such representative), information that is substantially comparable to that which the depository institution obtains in the ordinary course of business with respect to its customers residing in the United States.

(5)  PROHIBITIONS OR CONDITIONS ON OPENING OR MAINTAINING CERTAIN CORRESPONDENT OR PAYABLE-THROUGH ACCOUNTS.--If the Secretary finds a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, or 1 or more classes of transactions within, or involving, a jurisdiction outside of the United States to be of primary money laundering concern, the Secretary, in consultation with the Secretary of State, the Attorney General, and the chairman of the board of governors of the Federal Reserve System, may prohibit, or impose conditions upon, the opening or maintaining in the United States of a correspondent account or payable-through account by any domestic financial institution or domestic financial agency for or on behalf of a foreign banking institution, if such correspondent account or payable-through account involves any such jurisdiction or institution, or if any such transaction may be conducted through such correspondent account or payable-through account.

(c)  CONSULTATIONS AND INFORMATION TO BE CONSIDERED IN FINDING JURISDICTIONS, INSTITUTIONS, TYPES OF ACCOUNTS, OR TRANSACTIONS TO BE OF PRIMARY MONEY LAUNDERING CONCERN.--

(1)  IN GENERAL.--In making a finding that reasonable grounds exist for concluding that a jurisdiction outside of the United States, 1 or more financial institutions operating outside of the United States, 1 or more classes of transactions within, or involving, a jurisdiction outside of the United States, or 1 or more types of accounts is of primary money laundering concern so as to authorize the Secretary of the Treasury to take 1 or more of the special measures described in subsection (b), the Secretary shall consult with the Secretary of State and the Attorney General.

(2)  ADDITIONAL CONSIDERATIONS.--In making a finding described in paragraph (1), the Secretary shall consider in addition such information as the Secretary determines to be relevant, including the following potentially relevant factors:

(A)  JURISDICTIONAL FACTORS.--In the case of a particular jurisdiction--

(i)  evidence that organized criminal groups, international terrorists, or entities involved in the proliferation of weapons of mass destruction or missiles, have transacted business in that jurisdiction;

(ii)  the extent to which that jurisdiction or financial institutions operating in that jurisdiction offer bank secrecy or special regulatory advantages to nonresidents or nondomiciliaries of that jurisdiction;

(iii)  the substance and quality of administration of the bank supervisory and counter-money laundering laws of that jurisdiction;

(iv)  the relationship between the volume of financial transactions occurring in that jurisdiction and the size of the economy of the jurisdiction;

(v)  the extent to which that jurisdiction is characterized as an offshore banking or secrecy haven by credible international organizations or multilateral expert groups;

(vi)  whether the United States has a mutual legal assistance treaty with that jurisdiction, and the experience of United States law enforcement officials and regulatory officials in obtaining information about transactions originating in or routed through or to such jurisdiction; and

(vii)  the extent to which that jurisdiction is characterized by high levels of official or institutional corruption.

(B)  INSTITUTIONAL FACTORS.--In the case of a decision to apply 1 or more of the special measures described in subsection (b) only to a financial institution or institutions, or to a transaction or class of transactions, or to a type of account, or to all 3, within or involving a particular jurisdiction--

(i)  the extent to which such financial institutions, transactions, or types of accounts are used to facilitate or promote money laundering in or through the jurisdiction, including any money laundering activity by organized criminal groups, international terrorist, or entities involved in the proliferation of weapons of mass destruction or missiles;

(ii)  the extent to which such institutions, transactions, or types of accounts are used for legitimate business purposes in the jurisdiction; and

(iii)  the extent to which such action is sufficient to ensure, with respect to transactions involving the jurisdiction and institutions operating in the jurisdiction, that the purposes of this subchapter continue to be fulfilled, and to guard against international money laundering and other financial crimes.

(d)  NOTIFICATION OF SPECIAL MEASURES INVOKED BY THE SECRETARY.--Not later than 10 days after the date of any action taken by the Secretary of the Treasury under subsection (a)(1), the Secretary shall notify, in writing, the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate of any such action.

(e)  DEFINITIONS.--Notwithstanding any other provision of this subchapter, for purposes of this section and subsections (i) and (j) of section 5318, the following definitions shall apply:

(1)  BANK DEFINITIONS.--The following definitions shall apply with respect to a bank:

(A)  Account.--The term "account"--

(i)  means a formal banking or business relationship established to provide regular services, dealings, and other financial transactions; and

(ii)  includes a demand deposit, savings deposit, or other transaction or asset account and a credit account or other extension of credit.

(B)  CORRESPONDENT ACCOUNT.--The term "correspondent account" means an account established to receive deposits from, make payments on behalf of a foreign financial institution, or handle other financial transactions related to such institution.

(C)  PAYABLE-THROUGH ACCOUNT.--The term "payable-through account" means an account, including a transaction account (as defined in section 19(b)(1)(C) of the Federal Reserve Act), opened at a depository institution by a foreign financial institution by means of which the foreign financial institution permits its customers to engage, either directly or through a subaccount, in banking activities usual in connection with the business of banking in the United States.

(2)  DEFINITIONS APPLICABLE TO INSTITUTIONS OTHER THAN BANKS.--With respect to any financial institution other than a bank, the Secretary shall, after consultation with the appropriate Federal functional regulators (as defined in section 509 of the Gramm-Leach-Bliley Act), define by regulation the term "account", and shall include within the meaning of that term, to the extent, if any, that the Secretary deems appropriate, arrangements similar to payable-through and correspondent accounts.

(3)  REGULATORY DEFINITION OF BENEFICIAL OWNERSHIP.--The Secretary shall promulgate regulations defining beneficial ownership of an account for purposes of this section and subsections (i) and (j) of section 5318. Such regulations shall address issues related to an individual's authority to fund, direct, or manage the account (including, without limitation, the power to direct payments into or out of the account), and an individual's material interest in the income or corpus of the account, and shall ensure that the identification of individuals under this section or subsection (i) or (j) of section 5318 does not extend to any individual whose beneficial interest in the income or corpus of the account is immaterial.

(4)  OTHER TERMS.--The Secretary may, by regulation, further define the terms in paragraphs (1), (2), and (3), and define other terms for the purposes of this section, as the Secretary deems appropriate.

[Codified to 31 U.S.C. 5318A]

[Source: Section 311(a) of title III of the Act of October 26, 2001 (Pub. L. No. 107--56; 115 Stat. 298), effective October 26, 2001; amended by section 6203(e) of title VI of the Act of December 17, 2004 (Pub. L. No. 108--458; 118 Stat. 3747), effective December 17, 2004; section 501 of title V of the Act of September 30, 2006 (Pub. L. No. 109--293; 120 Stat. 1350), effective September 30, 2006]

§ 5319.  Availability of reports

The Secretary of the Treasury shall make information in a report filed under this subchapter available to an agency, including any State financial institutions supervisory agency, United States intelligence agency or self-regulatory organization registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission, upon request of the head of the agency or organization. The report shall be available for a purpose that is consistent with this subchapter. The Secretary may only require reports on the use of such information by any State financial institutions supervisory agency for other than supervisory purposes or by United States intelligence agencies. However, a report and records of reports are exempt from disclosure under section 552 of title 5, and may not be disclosed under any State, local, tribal, or territorial "freedom of information", "open government", or similar law.

[Codified to 31 U.S.C. 5319]


[Source:  Sections 203 and 212 of title II of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1118 and 1121, respectively), effective November 1, 1971; recodified by theAct of September 13, 1982 (Pub. L. No. 96--258; 96 Stat. 999), effective September 13, 1982; amended by section 1506 of title XV of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4055), effective October 28, 1992; section 358(c) of title III of the Act of October 26, 2001 (Pub. L. No. 107--56; 115 Stat. 326), effective October 26, 2001; section 6203(e) of title VI of the Act of December 17, 2004 (Pub. L. No. 108--458; 118 Stat. 3747), effective December 17, 2004; section 119 of title I of the Act of December 23, 2012 (Pub. L. No. 111--203; 125 Stat. 891), effective December 23, 2012]

§ 5320.  Injunctions

When the Secretary of the Treasury believes a person has violated, is violating, or will violate this subchapter or a regulation prescribed or order issued under this subchapter, the Secretary may bring a civil action in the appropriate district court of the United States or appropriate United States court of a territory or possession of the United States to enjoin the violation or to enforce compliance with the subchapter, regulation, or order. An injunction or temporary restraining order shall be issued without bond.

[Codified to 31 U.S.C. 5320]

[Source:  Section 208 of title II of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1120), effective November 1, 1971; section 203(b) of title II of the Act of September 21, 1973 (Pub. L. No. 93--110; 87 Stat. 353), effective September 21, 1973; recodified by the Act of September 13, 1982 (Pub. L. No. 96--258; 96 Stat. 999), effective September 13, 1982]

§ 5321.  Civil penalties

(a)(1)  A domestic financial institution or nonfinancial trade or business, and a partner, director, officer, or employee of a domestic financial institution or nonfinancial trade or business, willfully violating this subchapter or a regulation prescribed or order issued under this subchapter (except sections 5314 and 5315 of this title or a regulation prescribed under sections 5314 and 5315), or willfully violating a regulation prescribed under section 21 of the Federal Deposit Insurance Act or section 123 of Public Law 91--508 is liable to the United States Government for a civil penalty of not more than the greater of the amount (not to exceed $100,000) involved in the transaction (if any) or $25,000. For a violation of section 5318(a)(2) of this title or a regulation prescribed under section 5318(a)(2), a separate violation occurs for each day the violation continues and at each office, branch, or place of business at which a violation occurs or continues.

(2)  The Secretary of the Treasury may impose an additional civil penalty on a person not filing a report, or filing a report containing a material omission or misstatement, under section 5316 of this title or a regulation prescribed under section 5316. A civil penalty under this paragraph may not be more than the amount of the monetary instrument for which the report was required. A civil penalty under this paragraph is reduced by an amount forfeited under section 5317(b) of this title.

(3)  A person not filing a report under a regulation prescribed under section 5315 of this title or not complying with an injunction under section 5320 of this title enjoining a violation of, or enforcing compliance with, section 5315 or a regulation prescribed under section 5315, is liable to the Government for a civil penalty of not more than $10,000.

(4)   STRUCTURED TRANSACTION VIOLATION.--

(A)   PENALTY AUTHORIZED.--The Secretary of the Treasury may impose a civil money penalty on any person who violates any provision of section 5324.

(B)  MAXIMUM AMOUNT LIMITATION.--The amount of any civil money penalty imposed under subparagraph (A) shall not exceed the amount of the coins and currency (or such other monetary instruments as the Secretary may prescribe) involved in the transaction with respect to which such penalty is imposed.

(C)  COORDINATION WITH FORFEITURE PROVISION.--The amount of any civil money penalty imposed by the Secretary under subparagraph (A) shall be reduced by the amount of any forfeiture to the United States in connection with the transaction with respect to which such penalty is imposed.

(5)  FOREIGN FINANCIAL AGENCY TRANSACTION VIOLATION.--

(A)  PENALTY AUTHORIZED.--The Secretary of the Treasury may impose a civil money penalty on any person who violates, or causes any violation of, any provision of section 5314.

(B)  AMOUNT OF PENALTY.--

(i)  IN GENERAL.--Except as provided in subparagraph (C), the amount of any civil penalty imposed under subparagraph (A) shall not exceed $10,000.

(ii)  REASONABLE CAUSE EXCEPTION.--No penalty shall be imposed under subparagraph (A) with respect to any violation if--

(I)  such violation was due to reasonable cause, and

(II)  the amount of the transaction or the balance in the account at the time of the transaction was properly reported.

(C)  WILLFUL VIOLATIONS.--In the case of any person willfully violating, or willfully causing any violation of, any provision of section 5314--

(i)  the maximum penalty under subparagraph (B)(i) shall be increased to the greater of--

(I)  $100,000, or

(II)  50 percent of the amount determined under subparagraph (D), and

(ii)  subparagraph (B)(ii) shall not apply.

(D)  AMOUNT.--The amount determined under this subparagraph is--

(i)  in the case of a violation involving a transaction, the amount of the transaction, or

(ii)  in the case of a violation involving a failure to report the existence of an account or any identifying information required to be provided with respect to an account, the balance in the account at the time of the violation.

(6)  NEGLIGENCE.--

(A)  IN GENERAL.--The Secretary of the Treasury may impose a civil money penalty of not more than $500 on any financial institution or nonfinancital trade or business which negligently violates any provision of this subchapter or any regulation prescribed under this subchapter.

(B)  PATTERN OF NEGLIGENT ACTIVITY.--If any financial institution or nonfinancial trade or business engages in a pattern of negligent violations of any provision of this subchapter or any regulation prescribed under this subchapter, the Secretary of the Treasury may, in addition to any penalty imposed under subparagraph (A) with respect to any such violation, impose a civil money penalty of not more than $50,000 on the financial institution or nonfinancial trade or business.

(7)  PENALTIES FOR INTERNATIONAL COUNTER MONEY LAUNDERING VIOLATIONS.--The Secretary may impose a civil money penalty in an amount equal to not less than 2 times the amount of the transaction, but not more than $1,000,000, on any financial institution or agency that violates any provision of subsection (i) or (j) of section 5318 or any special measures.

(b)  TIME LIMITATIONS FOR ASSESSMENTS AND COMMENCEMENT OF CIVIL ACTIONS.--

(1)  ASSESSMENTS.--The Secretary of the Treasury may assess a civil penalty under subsection (a) at any time before the end of the 6-year period beginning on the date of the transaction with respect to which the penalty is assessed.

(2)  CIVIL ACTIONS.--The Secretary may commence a civil action to recover a civil penalty assessed under subsection (a) at any time before the end of the 2-year period beginning on the later of--

(A)  the date the penalty was assessed; or

(B)  the date any judgment becomes final in any criminal action under section 5322 in connection with the same transaction with respect to which the penalty is assessed.

(c)  The Secretary may remit any part of a forfeiture under subsection (c) or (d) of section 5317 of this title or civil penalty under subsection (a)(2) of this section.

(d)  CRIMINAL PENALTY NOT EXCLUSIVE OF CIVIL PENALTY.--A civil money penalty may be imposed under subsection (a) with respect to any violation of this subchapter notwithstanding the fact that a criminal penalty is imposed with respect to the same violation.

(e)  DELEGATION OF ASSESSMENT AUTHORITY TO BANKING AGENCIES.--

(1)  IN GENERAL.--The Secretary of the Treasury shall delegate, in accordance with section 5318(a)(1) and subject to such terms and conditions as the Secretary may impose in accordance with paragraph (3), any authority of the Secretary to assess a civil money penalty under this section on depository institutions (as defined in section 3 of the Federal Deposit Insurance Act) to the appropriate Federal banking agencies (as defined in such section 3).

(2)  AUTHORITY OF AGENCIES.--Subject to any term or condition imposed by the Secretary of the Treasury under paragraph (3), the provisions of this section shall apply to an appropriate Federal banking agency to which is delegated any authority of the Secretary under this section in the same manner such provisions apply to the Secretary.

(3)  TERMS AND CONDITIONS.--

(A)  IN GENERAL.--The Secretary of the Treasury shall prescribe by regulation the terms and conditions which shall apply to any delegation under paragraph (1).

(B)  MAXIMUM DOLLAR AMOUNT.--The terms and conditions authorized under subparagraph (A) may include, in the Secretary's sole discretion, a limitation on the amount of any civil penalty which may be assessed by an appropriate Federal banking agency pursuant to a delegation under paragraph (1).

[Codified to 31 U.S.C. 5321]

[Source:  Sections 205, 207, 233 and 234 of title II of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1120 and 1123), effective November 1, 1971; as amended by section 203(a) of title II of the Act of September 21, 1973 (Pub. L. No. 93--110; 87 Stat. 353), effective September 21, 1973; recodified by the Act of September 13, 1982 (Pub. L. No. 97--258; 96 Stat. 999), effective September 13, 1982; amended by section 901 of chapter IX of the Act of October 12, 1984 (Pub. L. No. 98--473; 98 Stat. 2135), effective October 12, 1984; sections 1356(c)(1) and 1357(a)-(f) and (h) of subtitle H of title I of the Act of October 27, 1986 (Pub. L. No. 99--570; 100 Stat. 3207--24--3207--26), effective with respect to violations committed after the date of the enactment of this Act (October 27, 1986), except subsection (a)(4) which is effective January 27, 1987; section 6185(g)(2) of title VI of the Act of November 18, 1988 (Pub. L. No. 100--690; 102 Stat. 4357), effective November 18, 1988; sections 1511(b), 1525(b), 1535(a)(2), and 1561 of title XV of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4057, 4065, 4066, and 4071, respectively), effective October 28, 1992; sections 406, 411(b), and 413(a)(1) of title IV of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2247, 2253, and 2254, respectively), effective September 23, 1994; section 2223(3) of title II of the Act of September 30, 1996 (Pub. L. No. 104-208; 110 Stat. 3009-415), effective September 30, 1996; sections 353(a), 363(a), and 365(c)(2)(B) of title III of the Act of October 26, 2001 (Pub. L. No. 106--57; 115 Stat. 322, 332, and 335 respectively), October 26, 2001; section 821(a) of title VIII of the Act of October 22, 2004 (Pub. L. No. 108-357; 118 1586), effective after the date of the enactment of this Act.]

§ 5322.  Criminal penalties

(a)  A person willfully violating this subchapter or a regulation prescribed or order issued under this subchapter (except section 5315 or 5324 of this title or a regulation prescribed under section 5315 or 5324), or willfully violating a regulation prescribed under section 21 of the Federal Deposit Insurance Act or section 123 of Public Law 91--508, shall be fined not more than $250,000, or imprisoned for not more than five years, or both.

(b)  A person willfully violating this subchapter or a regulation prescribed or order issued under this subchapter (except section 5315 or 5324 of this title or a regulation prescribed under section 5315 or 5324), or willfully violating a regulation prescribed under section 21 of the Federal Deposit Insurance Act or section 123 of Public Law 91--508, while violating another law of the United States or as part of a pattern of any illegal activity involving more than $100,000 in a 12-month period, shall be fined not more than $500,000, imprisoned for not more than 10 years, or both.

(c)  For a violation of section 5318(2) of this title or a regulation prescribed under section 5318(a)(2), a separate violation occurs for each day the violation continues and at each office, branch, or place of business at which a violation occurs or continues.

(d)  A financial institution or agency that violates any provision of subsection (i) or (j) of section 5318, or any special measures imposed under section 5318A, or any regulation prescribed under subsection (i) or (j) of section 5318 or section 5318A, shall be fined in an amount equal to not less than 2 times the amount of the transaction, but not more than $1,000,000.

[Codified to 31 U.S.C. 5322]

[Source:  Sections 205, 209 and 210 of title II of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1120 and 1121), effective November 1, 1971; recodified by the Act of September 13, 1982 (Pub. L. No. 97--258; 96 Stat. 1000), effective September 13, 1982; amended by section 901 of chapter IX of the Act of October 12, 1984 (Pub. L. No. 98--473; 98 Stat. 2135), effective October 12, 1984; sections 1356(c)(1) and 1357(g) of subtitle H of title I of the Act of October 27, 1986 (Pub. L. No. 99--570; 100 Stat. 3207--24 and 3207--26, respectively), effective with respect to violations committed after the date of the enactment of this Act (October 27, 1986); section 1504(d)(2) of title XV of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4055), effective October 28, 1992; section 411(c)(1) of title IV of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2253), effective September 23, 1994; sections 353(b) and 363(b) of title III of the Act of October 26, 2001 (Pub. L. No. 106--57; 115 Stat. 323 and 332), effective October 26, 2001]

§ 5323.  Rewards for informants

(a)  The Secretary may pay a reward to an individual who provides original information which leads to a recovery of a criminal fine, civil penalty, or forfeiture, which exceeds $50,000, for a violation of this chapter.

(b)  The Secretary shall determine the amount of a reward under this section. The Secretary may not award more than 25 per centum of the net amount of the fine, penalty, or forfeiture collected or $150,000, whichever is less.

(c)  An officer or employee of the United States, a State, or a local government who provides information described in subsection (a) in the performance of official duties is not eligible for a reward under this section.

(d)  There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this section.

[Codified to 31 U.S.C. 5323]

[Source:  Section 5323 added by section 901(e) of chapter IX of the Act of October 12, 1984 (Pub. L. No. 98--473; 98 Stat. 2135-- 2136), effective October 12, 1984]

§ 5324. Structuring transaction to evade reporting requirement prohibited

(a)  DOMESTIC AND CURRENCY TRANSACTIONS INVOLVING FINANCIAL INSTITUTIONS.--No person shall, for the purpose of evading the reporting requirements of section 5313(a) or 5325 or any regulation prescribed under any such section, the reporting or recordkeeping requirements imposed by any order issued under section 5326, or the recordkeeping requirements imposed by any regulation prescribed under section 21 of the Federal Deposit Insurance Act or section 123 of Public Law 91--508--

(1)  cause or attempt to cause a domestic financial institution to fail to file a report required under section 5313(a) or 5325 or any regulation prescribed under any such section; to file a report or to maintain a record required by an order issued under section 5326, or to maintain a record required pursuant to any regulation prescribed under section 21 of the Federal Deposit Insurance Act or section 123 of Public law 91--508;

(2)  cause or attempt to cause a domestic financial institution to file a report required under section 5313(a) or 5325 or any regulation prescribed under any such section, to file a report or to maintain a record required by any order issued under section 5326, or to maintain a record required pursuant to any regulation prescribed under section 5326, or to maintain a record required pursuant to any regulation prescribed under section 21 of the Federal Deposit Insurance Act or section 123 of Public Law 91--508, that contains a material omission or misstatement of fact; or

(3)  structure or assist in structuring, or attempt to structure or assist in structuring, any transaction with one or more domestic financial institutions.

(b)  DOMESTIC COIN AND CURRENCY TRANSACTIONS INVOLVING NONFINANCIAL TRADES OR BUSINESSES.--No person shall, for the purpose of evading the report requirements of section 5331 or any regulation prescribed under such section--

(1)  cause or attempt to cause a nonfinancial trade or business to fail to file a report required under section 5331 or any regulation prescribed under such section;

(2)  cause or attempt to cause a nonfinancial trade or business to file a report required under section 5331 or any regulation prescribed under such section that contains a material omission or misstatement of fact; or

(3)  structure or assist in structuring, or attempt to structure or assist in structuring, any transaction with 1 or more nonfinancial trades or businesses.

(c)  INTERNATIONAL MONETARY INSTRUMENT TRANSACTIONS.--No person shall, for the purpose of evading the reporting requirements of section 5316--

(1)  fail to file a report required by section 5316, or cause or attempt to cause a person to fail to file such a report;

(2)  file or cause or attempt to cause a person to file a report required under section 5316 that contains a material omission or misstatement of fact; or

(3)  structure or assist in structuring, or attempt to structure or assist in structuring, any importation or exportation of monetary instruments.

(d)  CRIMINAL PENALTY.--

(1)  IN GENERAL.--Whoever violates this section shall be fined in accordance with title 18, United States Code, imprisoned for not more than 5 years, or both.

(2)  ENHANCED PENALTY FOR AGGRAVATED CASES.--Whoever violates this section while violating another law of the United States or as part of a pattern of any illegal activity involving more than $100,000 in a 12-month period shall be fined twice the amount provided in subsection (b)(3) or (c)(3) (as the case may be) of section 3571 of title 18, United States Code, imprisoned for not more than 10 years, or both.

[Codified to 31 U.S.C. 5324]

[Source:  Section 5324 added by section 1354 of subtitle H of title I of the Act of October 27, 1986 (Pub. L. No. 99--570; 100 Stat. 3207--22), effective with respect to transactions for the payment, receipt, or transfer of United States coins or currency or other monetary instruments completed after January 27, 1987; amended by section 1525(a) of title XV of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4064), effective October 28, 1992; sections 411(a) and 413(a)(2) of title IV of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2253 and 2254), effective September 23, 1994; sections 353(c) and 365(b)(1) and (b)(2)(A) of title III of the Act of October 26, 2001 (Pub. L. No. 106--57; 115 Stat. 323, 334 and 335, respectively), effective October 26, 2001; section 6203(g) of title VI of the Act of December 17, 2004 (Pub. L. No. 108--458; 118 Stat. 3747), effective December 17, 2004]

§ 5325. Identification required to purchase certain monetary instruments

(a)  IN GENERAL.--No financial institution may issue or sell a bank check, cashier's check, traveler's check, or money order to any individual in connection with a transaction or group of such contemporaneous transactions which involves United States coins or currency (or such other monetary instruments as the Secretary may prescribe) in amounts or denominations of $3,000 or more unless--

(1)  the individual has a transaction account with such financial institution and the financial institution--

(A)  verfies that fact through a signature care or other information maintained by such institution in connection with the account of such individual; and

(B)  records the method of vertification in accordance with regulations which the Secretary of the Treasury shall prescribe; or

(2)  the individual furnishes the financial institution with such forms of identification as the Secretary of the Treasury may require in regulations which the Secretary shall prescribe and the financial institution verifies and records such information in accordance with regulations which such Secretary shall prescribe.

(b)  REPORT TO SECRETARY UPON REQUEST.--Any information required to be recorded by any financial institution under paragraph (1) or (2) of subsection (a) shall be reported by such institution to the Secretary of the Treasury at the request of such Secretary.

(c)  TRANSACTION ACCOUNT DEFINED.--For purposes of this section, the term "transaction account" has the meaning given to such term in section 19(b)(1)(C) of the Federal Reserve Act.

[Codified to 31 U.S.C. 5325]

[Source:  Section 5325 added by section 6185(b) of title VI of the Act of November 18, 1988 (Pub. L. No. 100--690; 102 Stat. 4355), effective November 18, 1988]

§ 5326. Records of certain domestic coin and currency transactions

(a)  IN GENERAL.--If the Secretary of the Treasury finds, upon the Secretary's own initiative or at the request of an appropriate Federal or State law enforcement official, that reasonable grounds exist for concluding that additional recordkeeping and reporting requirements are necessary to carry out the purposes of this subtitle and prevent evasions thereof, the Secretary may issue an order requiring any domestic financial institution or nonfinancial trade or business or group of domestic financial institutions or nonfinancial trades or business in a geographic area--

(1)  to obtain such information as the Secretary may describe in such order concerning--

(A)  any transaction in which such financial institution or nonfinancial trade or business is involved for the payment, receipt, or transfer of United States coins or currency (or such other monetary instruments as the Secretary may describe in such order) the total amounts or denominations of which are equal to or greater than an amount which the Secretary may prescribe; and

(B)  any other person participating in such transaction;

(2)  to maintain a record of such information for such period of time as the Secretary may require; and

(3)  to file a report with respect to any transaction described in paragraph (1)(A) in the manner and to the extent specified in the order.

(b)  AUTHORITY TO ORDER DEPOSITORY INSTITUTIONS TO OBTAIN REPORTS FROM CUSTOMERS.--

(1)  IN GENERAL.--The Secretary of the Treasury may, by regulation or order, require any depository institution (as defined in section 3(c) of the Federal Deposit Insurance Act)--

(A)  to request any financial institution or nonfinancial trade or business (other than a depository institution) which engages in any reportable transaction with the depository institution to provide the depository institution with a copy of any report filed by the financial institution or nonfinancial trade or business under this subtitle with respect to any prior transaction (between such financial institution or nonfinancial trade or business and any other person) which involved any portion of the coins or currency (or monetary instruments) which are involved in the reportable transaction with the depository institution; and

(B)  if no copy of any report described in subparagraph (A) is received by the depository institution in connection with any reportable transaction to which such subparagraph applies, to submit (in addition to any report required under this subtitle with respect to the reportable transaction) a written notice to the Secretary that the financial institution or nonfinancial trade or business failed to provide any copy of such report.

(2)  REPORTABLE TRANSACTION DEFINED.--For purposes of this subsection, the term "reportable transaction" means any transaction involving coins or currency (or such other monetary instruments as the Secretary may describe in the regulation or order) the total amounts or denominations of which are equal to or greater than an amount which the Secretary may prescribe.

(c)  NONDISCLOSURE OF ORDERS.--No financial institution or nonfinancial trade or business or officer, director, employee or agent of a financial institution or nonfinancial trade or business subject to an order under this section may disclose the existence of, or terms of, the order to any person except as prescribed by the Secretary.

(d)  MAXIMUM EFFECTIVE PERIOD FOR ORDER.--No order issued under subsection (a) shall be effective for more than 180 days unless renewed pursuant to the requirements of subsection (a).

[Codified to 31 U.S.C. 5326]

[Source:  Section 5326 added by section 6185(c) of title VI of the Act of November 18, 1988 (Pub. L. No. 100--690; 102 Stat. 4355), effective November 18, 1988; amended by section 1514 and 1562 of title XV of the Act of Octobe 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4058 and 4072), effective October 28, 1992; section 353(d) and 365(c)(2)(B) of title III of the Act of October 26, 2001 (Pub. L. No. 106--57; 115 Stat. 323 and 335), effective October 26, 2001]

§ 5327. [Repealed]

[Source:  Section 5327 added by section 1511 of title XV of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4056), effective October 28, 1992; as repealed by section 2223(1) of title II of the Act of September 30, 1996, (Pub. L. No. 104-208; 110 Stat. 3009-415), effective September 30, 1996]

§ 5328. Whistleblower protections

(a)  PROHIBITION AGAINST DISCRIMINATION.--No financial institution or nonfinancial trade or business may discharge or otherwise discriminate against any employee with respect to compensation, terms, conditions, or privileges of employment because the employee (or any person acting pursuant to the request of the employee) provided information to the Secretary of the Treasury, the Attorney General, or any Federal supervisory agency regarding a possible violation of any provision of this subchapter or section 1956, 1957, or 1960 of title 18, or any regulation under any such provision, by the financial institution or nonfinancial trade or business or any director, officer, or employee of the financial institution or nonfinancial trade or business.

(b)  ENFORCEMENT.--Any employee or former employee who believes that such employee has been discharged or discriminated against in violation of subsection (a) may file a civil action in the appropriate United States district court before the end of the 2-year period beginning on the date of such discharge or discrimination.

(c)  REMEDIES.--If the district court determines that a violation has occurred, the court may order the financial institution or nonfinancial trade or business which committed the violation to--

(1)  reinstate the employee to the employee's former position;

(2)  pay compensatory damages; or

(3)  take other appropriate actions to remedy any past discrimination.

(d)  LIMITATION.--The protections of this section shall not apply to any employee who--

(1)  deliberately causes or participates in the alleged violation of law or regulation; or

(2)  knowingly or recklessly provides substantially false information to the Secretary, the Attorney General, or any Federal supervisory agency.

(e)  COORDINATION WITH OTHER PROVISIONS OF LAW.--This section shall not apply with respect to any financial institution or nonfinancial trade or business which is subject to section 33 of the Federal Deposit Insurance Act, section 213 of the Federal Credit Union Act, or section 21A(q) of the Home Owners' Loan Act (as added by section 251(c) of the Federal Deposit Insurance Corporation Improvement Act of 1991).

[Codified to 31 U.S.C. 5328]

[Source:  Section 5328 added by section 1563(a) of title XV of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4072), effective October 28, 1992; as amended by section 365(c)(2)(B) of title III of the Act of October 26, 2001 (Pub. L. No. 106--57; 115 Stat. 335), effective October 26, 2001]

§ 5329. Staff commentaries

The Secretary shall--

(1)  publish all written rulings interpreting this subchapter; and

(2)  annually issue a staff commentary on the regulations issued under this subchapter.

[Codified to 31 U.S.C. 5329]

[Source:  Section 5329 added by section 311 of title III of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2221), effective September 23, 1994]

§ 5330. Registration of money transmitting businesses

(a)  REGISTRATION WITH SECRETARY OF THE TREASURY REQUIRED.--

(1)  IN GENERAL.--Any person who owns or controls a money transmitting business shall register the business (whether or not the business is licensed as a money transmitting business in any State) with the Secretary of the Treasury not later than the end of the 180-day period beginning on the later of--

(A)  the date of enactment of the Money Laundering Suppression Act of 1994; or

(B)  the date on which the business is established.

(2)  FORM AND MANNER OF REGISTRATION.--Subject to the requirements of subsection (b), the Secretary of the Treasury shall prescribe, by regulation, the form and manner for registering a money transmitting business pursuant to paragraph (1).

(3)  BUSINESSES REMAIN SUBJECT TO STATE LAW.--This section shall not be construed as superseding any requirement of State law relating to money transmitting businesses operating in such State.

(4)  FALSE AND INCOMPLETE INFORMATION.--The filing of false or materially incomplete information in connection with the registration of a money transmitting business shall be considered as a failure to comply with the requirements of this subchapter.

(b)  CONTENTS OF REGISTRATION.--The registration of a money transmitting business under subsection (a) shall include the following information:

(1)  The name and location of the business.

(2)  The name and address of each person who--

(A)  owns or controls the business;

(B)  is a director or officer of the business; or

(C)  otherwise participates in the conduct of the affairs of the business.

(3)  The name and address of any depository institution at which the business maintains a transaction account (as defined in section 19(b)(1)(C) of the Federal Reserve Act).

(4)  An estimate of the volume of business in the coming year (which shall be reported annually to the Secretary).

(5)  Such other information as the Secretary of the Treasury may require.

(c)  AGENTS OF MONEY TRANSMITTING BUSINESSES.--

(1)  MAINTENANCE OF LISTS OF AGENTS OF MONEY TRANSMITTING BUSINESSES.--Pursuant to regulations which the Secretary of the Treasury shall prescribe, each money transmitting business shall--

(A)  maintain a list containing the names and addresses of all persons authorized to act as an agent for such business in connection with activities described in subsection (d)(1)(A) and such other information about such agents as the Secretary may require; and

(B)  make the list and other information available on request to any appropriate law enforcement agency.

(2)  TREATMENT OF AGENT AS MONEY TRANSMITTING BUSINESS.--The Secretary of the Treasury shall prescribe regulations establishing, on the basis of such criteria as the Secretary determines to be appropriate, a threshold point for treating an agent of a money transmitting business as a money transmitting business for purposes of this section.

(d)  DEFINITIONS.--For purposes of this section, the following definitions shall apply:

(1)  MONEY TRANSMITTING BUSINESS.--The term "money transmitting business" means any business other than the United States Postal Service which--

(A)  provides check cashing, currency exchange, or money transmitting or remittance services, or issues or redeems money orders, travelers' checks, and other similar instruments or any other person who engages as a business in the transmission of funds, including any person who engages as a business in an informal money transfer system or any network of people who engage as a business in facilitating the transfer of money domestically or internationally outside of the conventional financial institutions system;

(B)  is required to file reports under section 5313; and

(C)  is not a depository institution (as defined in section 5313(g)).

(2)  MONEY TRANSMITTING SERVICE.--The term "money transmitting service" includes accepting currency or funds denominated in the currency of any country and transmitting the currency or funds, or the value of the currency or funds, by any means through a financial agency or institution, a Federal reserve bank or other facility of the Board of Governors of the Federal Reserve System, or an electronic funds transfer network.

(e)  CIVIL PENALTY FOR FAILURE TO COMPLY WITH REGISTRATION REQUIREMENTS.--

(1)  IN GENERAL.--Any person who fails to comply with any requirement of this section or any regulation prescribed under this section shall be liable to the United States for a civil penalty of $5,000 for each such violation.

(2)  CONTINUING VIOLATIONS.--Each day a violation described in paragraph (1) continues shall constitute a separate violation for purposes of such paragraph.

(3)  ASSESSMENTS.--Any penalty imposed under this subsection shall be assessed and collected by the Secretary of the Treasury in the manner provided in section 5321 and any such assessment shall be subject to the provisions of such section.

[Codified to 31 U.S.C. 5330]

(Source:  Section 5330 added by section 408(b) of title IV of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2250), effective September 23, 1994; as amended by section 359(b) of title III of the Act of October 26, 2001 (Pub. L. No. 106--57; 115 Stat. 328), effective October 26, 2001]

§ 5331.  Reports relating to coins and currency received in nonfinancial trade or business

(a)  COIN AND CURRENCY RECEIPTS OF MORE THAN $10,000.-- Any person--

(1)(A)  who is engaged in a trade or business and

(B)  who, in the course of such trade or business, receives more than $10,000 in coins or currency in 1 transaction (or 2 or more related transactions), shall file a report described in subsection (b) with respect to such transaction (or related transactions) with the Financial Crimes Enforcement network at such time and in such manner as the Secretary may, by regulation, prescribe or

(2)  who is required to file a report under section 6050I(g) of the Internal Revenue Code of 1986, shall file a report described in subsection (b) with respect to such transaction (or related transactions) with the Financial Crimes Enforcement Network at such time and in such manner as the Secretary may, by regulation, prescribe.

(b)  FORM AND MANNER OF REPORTS.--A report is described in this subsection if such report--

(1)  is in such form as the Secretary may prescribe;

(2)  contains--

(A)  the name and address, and such other identification information as the Secretary may require, of the person from whom the coins or currency was received;

(B)  the amount of coins or currency received;

(C)  the date and nature of the transaction; and

(D)  such other information, including the identification of the person filing the report, as the Secretary may prescribe.

(c)  EXCEPTIONS.--

(1)  AMOUNTS RECEIVED BY FINANCIAL INSTITUTIONS.--Subsection (a) shall not apply to amounts received in a transaction reported under section 5313 and regulations prescribed under such section.

(2)  TRANSACTIONS OCCURRING OUTSIDE THE UNITED STATES.--Except to the extent provided in regulations prescribed by the Secretary, subsection (a) shall not apply to any transaction if the entire transaction occurs outside the United States.

(d)  CURRENCY INCLUDES FOREIGN CURRENCY AND CERTAIN MONETARY INSTRUMENTS.--

(1)  IN GENERAL.--For purposes of this section, the term "currency" includes--

(A)  foreign currency; and

(B)  to the extent provided in regulations prescribed by the Secretary, any monetary instrument (whether or not in bearer form) with a face amount of not more than $10,000.

(2)  SCOPE OF APPLICATION.--Paragraph (1)(B) shall not apply to any check drawn on the account of the writer in a financial institution referred to in subparagraph (A), (B), (C), (D), (E), (F), (G), (J), (K), (R), or (S) of section 5312(a)(2).

[Codified to 31 U.S.C. 5331]

[Source: Section 5331 added by Section 365(a) of title III of the Act of October 26, 2001 (Pub. L. No. 106--57; 115 Stat. 333], effective October 26, 2001; as amended by section 120 of title I of the Act of December 23, 2012 (Pub. L. No. 112--74; 124 Stat. 891), effective December 23, 2012]

§ 5332.  Bulk cash smuggling into or out of the United States

(a)  CRIMINAL OFFENSE.--

(1)  IN GENERAL.--Whoever, with the intent to evade a currency reporting requirement under section 5316, knowingly conceals more than $10,000 in currency or other monetary instruments on the person of such individual or in any conveyance, article of luggage, merchandise, or other container, and transports or transfers or attempts to transport or transfer such currency or monetary instruments from a place within the United States to a place outside of the United States, or from a place outside the United States to a place within the United States, shall be guilty of a currency smuggling offense and subject to punishment pursuant to subsection (b).

(2)  CONCEALMENT ON PERSON.--For purposes of this section, the concealment of currency on the person of any individual includes concealment in any article of clothingworn by the individual or in any luggage, backpack, or other container worn or carried by such individual.

(b)  PENALTY.--

(1)  TERM OF IMPRISONMENT.--A person convicted of a currency smuggling offense under subsection (a), or a conspiracy to commit such offense, shall be imprisoned for not more than 5 years.

(2)  FORFEITURE.--In addition, the court, in imposing sentence under paragraph (1), shall order that the defendant forfeit to the United States, any property, real or personal, involved in the offense, and any property traceable to such property.

(3)  PROCEDURE.--The seizure, restraint, and forfeiture of property under this section shall be governed by section 413 of the Controlled Substances Act.

(4)  PERSONAL MONEY JUDGMENT.--If the property subject to forfeiture under paragraph (2) is unavailable, and the defendant has insufficient substitute property that may be forfeited pursuant to section 413(p) of the Controlled Substances Act, the court shall enter a personal money judgment against the defendant for the amount that would be subject to forfeiture.

(c)  CIVIL FORFEITURE.--

(1)  IN GENERAL.--Any property involved in a violation of subsection (a), or a conspiracy to commit such violation, and any property traceable to such violation or conspiracy, may be seized and forfeited to the United States.

(2)  PROCEDURE.--The seizure and forfeiture shall be governed by the procedures governing civil forfeitures in money laundering cases pursuant to section 981(a)(1)(A) of title 18, United States Code.

(3)  TREATMENT OF CERTAIN PROPERTY AS INVOLVED IN THE OFFENSE.--For purposes of this subsection and subsection (b), any currency or other monetary instrument that is concealed or intended to be concealed in violation of subsection (a) or a conspiracy to commit such violation, any article, container, or conveyance used, or intended to be used, to conceal or transport the currency or other monetary instrument, and any other property used, or intended to be used, to facilitate the offense, shall be considered property involved in the offense.

[Codified to 31 U.S.C. 5332]

[Source: Section 5332 added by section 371(c) of title III of the Act of October 26, 2001 (Pub. L. No. 106--57; 115 Stat. 337), effective October 26, 2001]

* Formerly the Currency and Foreign Transactions Reporting Act (31 U.S.C. 1051 et seq.). Go back to Text

* Editor's Note: So in original. Two subsections (l) have been enacted. Go back to Text

* Editor's Note: Subsection (m) was designated as a second (l) in P.L. 107--56. Go back to Text


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Last updated September 16, 2013 regs@fdic.gov