31 U.s.c. 5315

31C.F.R.5315etal.txt

Quarterly Consolidated Foreign Currency Report

31 U.S.C. 5315

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-CITE-
    31 USC CHAPTER 53 - MONETARY TRANSACTIONS                    01/22/02
 
-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE IV - MONEY
    CHAPTER 53 - MONETARY TRANSACTIONS
    .
 
-HEAD-
    CHAPTER 53 - MONETARY TRANSACTIONS
 
-MISC1-
                SUBCHAPTER I - CREDIT AND MONETARY EXPANSION
    Sec.
    5301. Buying obligations of the United States Government.
    5302. Stabilizing exchange rates and arrangements.
    5303. Reserved coins and currencies of foreign countries.
    5304. Regulations.
        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, exemptions, and summons authority.
    5318A. Special measures for jurisdictions, financial institutions,
      or international transactions 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.
    (5327. Repealed.)
    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.
       SUBCHAPTER III - MONEY LAUNDERING AND RELATED FINANCIAL CRIMES
    5340. Definitions.
      PART 1 - NATIONAL MONEY LAUNDERING AND RELATED FINANCIAL CRIMES
                                  STRATEGY
    5341. National money laundering and related financial crimes
      strategy.
    5342. High-risk money laundering and related financial crime areas.
         PART 2 - FINANCIAL CRIME-FREE COMMUNITIES SUPPORT PROGRAM
    5351. Establishment of financial crime-free communities support
      program.
    5352. Program authorization.
    5353. Information collection and dissemination with respect to
      grant recipients.
    5354. Grants for fighting money laundering and related financial
      crimes.
    5355. Authorization of appropriations.
                                 AMENDMENTS
      2001 - Pub. L. 107-56, title III, Sec. 365(c), Oct. 26, 2001, 115
    Stat. 335, which directed the amendment of chapter 53 analysis by
    inserting item 5331 after the item relating to section 5332 (as
    added by section 112 of this title), was executed by inserting item
    5331 after item 5330 to reflect the probable intent of Congress.
      Pub. L. 107-56, title III, Sec. 311(b), 371(c), Oct. 26, 2001,
    115 Stat. 304, 338, added items 5318A and 5332.
      1998 - Pub. L. 105-310, Sec. 2(b), Oct. 30, 1998, 112 Stat. 2948,
    added subchapter III heading, parts 1 and 2 headings, and items
    5340 to 5355.
      1996 - Pub. L. 104-208, div.  A, title II, Sec. 2223(2), Sept.
    30, 1996, 110 Stat. 3009-415, struck out item 5327 ''Identification
    of financial institutions''.
      1994 - Pub. L. 103-325, title III, Sec. 311(b), title IV, Sec.
    408(d), Sept. 23, 1994, 108 Stat. 2221, 2252, added items 5329 and
    5330.
      1992 - Pub. L. 102-550, title XV, Sec. 1511(c), 1563(b), Oct. 28,
    1992, 106 Stat. 4057, 4073, added items 5327 and 5328.
      1988 - Pub. L. 100-690, title VI, Sec. 6185(f), Nov. 18, 1988,
    102 Stat. 4357, added items 5325 and 5326.
      1986 - Pub. L. 99-570, title I, Sec. 1354(b), 1356(d), Oct. 27,
    1986, 100 Stat. 3207-22, 3207-25, substituted ''Compliance,
    exemptions, and summons authority'' for ''Compliance and
    exemptions'' in item 5318 and added item 5324.
      1984 - Pub. L. 98-473, title II, Sec. 901(f), Oct. 12, 1984, 98
    Stat. 2136, added item 5323.
 
-SECREF-
                   CHAPTER REFERRED TO IN OTHER SECTIONS
      This chapter is referred to in section 9703 of this title; title
    18 section 1510; title 19 sections 1431, 1613b.
 

-CITE-
    31 USC SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY
                  INSTRUMENTS TRANSACTIONS                       01/22/02
 
-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE IV - MONEY
    CHAPTER 53 - MONETARY TRANSACTIONS
    SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS
         TRANSACTIONS
    .
 
-HEAD-
    SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS
    TRANSACTIONS
 
-SECREF-
                  SUBCHAPTER REFERRED TO IN OTHER SECTIONS
      This subchapter is referred to in section 310 of this title;
    title 12 sections 1464, 1786, 1817, 1818, 1829b, 3401, 3413; title
    15 sections 78q, 6802; title 18 sections 1952, 1956, 1961; title 22
    section 2714.
 
-CITE-
    31 USC Sec. 5311                                             01/22/02
 
-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE IV - MONEY
    CHAPTER 53 - MONETARY TRANSACTIONS
    SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS
         TRANSACTIONS
 
-HEAD-
    Sec. 5311. Declaration of purpose
 
-STATUTE-
      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.
 
-SOURCE-
    (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 995; Pub. L. 107-56,
    title III, Sec. 358(a), Oct. 26, 2001, 115 Stat. 326.)
 
-MISC1-
 
                       Historical and Revision Notes
    ---------------------------------------------------------------------
    Revised Section        Source (U.S. Code)     Source (Statutes at
                                                   Large)
    ---------------------------------------------------------------------
    5311                   31:1051.               Oct. 26, 1970, Pub.
                                                   L. 91-508, Sec.
                                                   202, 84 Stat. 1118.
                     -------------------------------
                                 AMENDMENTS
      2001 - Pub. L. 107-56 inserted '', or in the conduct of
    intelligence or counterintelligence activities, including analysis,
    to protect against international terrorism'' before period at end.
             EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
      Amendments by title III of Pub. L. 107-56 to terminate effective
    on and after the first day of fiscal year 2005 if Congress enacts a
    joint resolution that such amendments no longer have the force of
    law, see section 303 of Pub. L. 107-56, set out as a Four-Year
    Congressional Review; Expedited Consideration note under this
    section.
      Amendment by Pub. L. 107-56 applicable with respect to reports
    filed or records maintained on, before, or after Oct. 26, 2001, see
    section 358(h) of Pub. L. 107-56, set out as a note under section
    1829b of Title 12, Banks and Banking.
                                SHORT TITLE
      This subchapter and chapter 21 (Sec. 1951 et seq.) of Title 12,
    Banks and Banking, are each popularly known as the ''Bank Secrecy
    Act''. See Short Title note set out under section 1951 of Title 12.
           INTERNATIONAL MONEY LAUNDERING ABATEMENT AND FINANCIAL
             ANTI-TERRORISM ACT OF 2001; FINDINGS AND PURPOSES
      Pub. L. 107-56, title III, Sec. 302, Oct. 26, 2001, 115 Stat.
    296, provided that:
      ''(a) Findings. - The Congress finds that -
        ''(1) money laundering, estimated by the International Monetary
      Fund to amount to between 2 and 5 percent of global gross
      domestic product, which is at least $600,000,000,000 annually,
      provides the financial fuel that permits transnational criminal
      enterprises to conduct and expand their operations to the
      detriment of the safety and security of American citizens;
        ''(2) money laundering, and the defects in financial
      transparency on which money launderers rely, are critical to the
      financing of global terrorism and the provision of funds for
      terrorist attacks;
        ''(3) money launderers subvert legitimate financial mechanisms
      and banking relationships by using them as protective covering
      for the movement of criminal proceeds and the financing of crime
      and terrorism, and, by so doing, can threaten the safety of
      United States citizens and undermine the integrity of United
      States financial institutions and of the global financial and
      trading systems upon which prosperity and growth depend;
        ''(4) certain jurisdictions outside of the United States that
      offer 'offshore' banking and related facilities designed to
      provide anonymity, coupled with weak financial supervisory and
      enforcement regimes, provide essential tools to disguise
      ownership and movement of criminal funds, derived from, or used
      to commit, offenses ranging from narcotics trafficking,
      terrorism, arms smuggling, and trafficking in human beings, to
      financial frauds that prey on law-abiding citizens;
        ''(5) transactions involving such offshore jurisdictions make
      it difficult for law enforcement officials and regulators to
      follow the trail of money earned by criminals, organized
      international criminal enterprises, and global terrorist
      organizations;
        ''(6) correspondent banking facilities are one of the banking
      mechanisms susceptible in some circumstances to manipulation by
      foreign banks to permit the laundering of funds by hiding the
      identity of real parties in interest to financial transactions;
        ''(7) private banking services can be susceptible to
      manipulation by money launderers, for example corrupt foreign
      government officials, particularly if those services include the
      creation of offshore accounts and facilities for large personal
      funds transfers to channel funds into accounts around the globe;
        ''(8) United States anti-money laundering efforts are impeded
      by outmoded and inadequate statutory provisions that make
      investigations, prosecutions, and forfeitures more difficult,
      particularly in cases in which money laundering involves foreign
      persons, foreign banks, or foreign countries;
        ''(9) the ability to mount effective counter-measures to
      international money launderers requires national, as well as
      bilateral and multilateral action, using tools specially designed
      for that effort; and
        ''(10) the Basle Committee on Banking Regulation and
      Supervisory Practices and the Financial Action Task Force on
      Money Laundering, of both of which the United States is a member,
      have each adopted international anti-money laundering principles
      and recommendations.
      ''(b) Purposes. - The purposes of this title (see Short Title of
    2001 Amendment note set out under section 5301 of this title) are -
        ''(1) to increase the strength of United States measures to
      prevent, detect, and prosecute international money laundering and
      the financing of terrorism;
        ''(2) to ensure that -
          ''(A) banking transactions and financial relationships and
        the conduct of such transactions and relationships, do not
        contravene the purposes of subchapter II of chapter 53 of title
        31, United States Code, section 21 of the Federal Deposit
        Insurance Act (12 U.S.C. 1829b), or chapter 2 of title I of
        Public Law 91-508 (84 Stat. 1116) (12 U.S.C. 1951 et seq.), or
        facilitate the evasion of any such provision; and
          ''(B) the purposes of such provisions of law continue to be
        fulfilled, and such provisions of law are effectively and
        efficiently administered;
        ''(3) to strengthen the provisions put into place by the Money
      Laundering Control Act of 1986 (18 U.S.C. 981 note) (see Short
      Title of 1986 Amendment note set out under section 981 of Title
      18, Crimes and Criminal Procedure), especially with respect to
      crimes by non-United States nationals and foreign financial
      institutions;
        ''(4) to provide a clear national mandate for subjecting to
      special scrutiny those foreign jurisdictions, financial
      institutions operating outside of the United States, and classes
      of international transactions or types of accounts that pose
      particular, identifiable opportunities for criminal abuse;
        ''(5) to provide the Secretary of the Treasury (in this title
      referred to as the 'Secretary') with broad discretion, subject to
      the safeguards provided by the Administrative Procedure Act under
      title 5, United States Code (5 U.S.C. 551 et seq., 701 et seq.),
      to take measures tailored to the particular money laundering
      problems presented by specific foreign jurisdictions, financial
      institutions operating outside of the United States, and classes
      of international transactions or types of accounts;
        ''(6) to ensure that the employment of such measures by the
      Secretary permits appropriate opportunity for comment by affected
      financial institutions;
        ''(7) to provide guidance to domestic financial institutions on
      particular foreign jurisdictions, financial institutions
      operating outside of the United States, and classes of
      international transactions that are of primary money laundering
      concern to the United States Government;
        ''(8) to ensure that the forfeiture of any assets in connection
      with the anti-terrorist efforts of the United States permits for
      adequate challenge consistent with providing due process rights;
        ''(9) to clarify the terms of the safe harbor from civil
      liability for filing suspicious activity reports;
        ''(10) to strengthen the authority of the Secretary to issue
      and administer geographic targeting orders, and to clarify that
      violations of such orders or any other requirement imposed under
      the authority contained in chapter 2 of title I of Public Law
      91-508 (12 U.S.C. 1951 et seq.) and subchapters II and III of
      chapter 53 of title 31, United States Code, may result in
      criminal and civil penalties;
        ''(11) to ensure that all appropriate elements of the financial
      services industry are subject to appropriate requirements to
      report potential money laundering transactions to proper
      authorities, and that jurisdictional disputes do not hinder
      examination of compliance by financial institutions with relevant
      reporting requirements;
        ''(12) to strengthen the ability of financial institutions to
      maintain the integrity of their employee population; and
        ''(13) to strengthen measures to prevent the use of the United
      States financial system for personal gain by corrupt foreign
      officials and to facilitate the repatriation of any stolen assets
      to the citizens of countries to whom such assets belong.''
          FOUR-YEAR CONGRESSIONAL REVIEW; EXPEDITED CONSIDERATION
      Pub. L. 107-56, title III, Sec. 303, Oct. 26, 2001, 115 Stat.
    298, provided that:
      ''(a) In General. - Effective on and after the first day of
    fiscal year 2005, the provisions of this title (see Short Title of
    2001 Amendment note set out under section 5301 of this title) and
    the amendments made by this title shall terminate if the Congress
    enacts a joint resolution, the text after the resolving clause of
    which is as follows: 'That provisions of the International Money
    Laundering Abatement and Anti-Terrorist Financing Act of 2001, and
    the amendments made thereby, shall no longer have the force of
    law.'
      ''(b) Expedited Consideration. - Any joint resolution submitted
    pursuant to this section should be considered by the Congress
    expeditiously.  In particular, it shall be considered in the Senate
    in accordance with the provisions of section 601(b) of the
    International Security Assistance and Arms Control Act of 1976
    (Pub. L. 94-329, 90 Stat. 765).''
               COOPERATIVE EFFORTS TO DETER MONEY LAUNDERING
      Pub. L. 107-56, title III, Sec. 314, Oct. 26, 2001, 115 Stat.
    307, provided that:
      ''(a) Cooperation Among Financial Institutions, Regulatory
    Authorities, and Law Enforcement Authorities. -
        ''(1) Regulations. - The Secretary (of the Treasury) shall,
      within 120 days after the date of enactment of this Act (Oct. 26,
      2001), adopt regulations to encourage further cooperation among
      financial institutions, their regulatory authorities, and law
      enforcement authorities, with the specific purpose of encouraging
      regulatory authorities and law enforcement authorities to share
      with financial institutions information regarding individuals,
      entities, and organizations engaged in or reasonably suspected
      based on credible evidence of engaging in terrorist acts or money
      laundering activities.
        ''(2) Cooperation and information sharing procedures. - The
      regulations adopted under paragraph (1) may include or create
      procedures for cooperation and information sharing focusing on -
          ''(A) matters specifically related to the finances of
        terrorist groups, the means by which terrorist groups transfer
        funds around the world and within the United States, including
        through the use of charitable organizations, nonprofit
        organizations, and nongovernmental organizations, and the
        extent to which financial institutions in the United States are
        unwittingly involved in such finances and the extent to which
        such institutions are at risk as a result;
          ''(B) the relationship, particularly the financial
        relationship, between international narcotics traffickers and
        foreign terrorist organizations, the extent to which their
        memberships overlap and engage in joint activities, and the
        extent to which they cooperate with each other in raising and
        transferring funds for their respective purposes; and
          ''(C) means of facilitating the identification of accounts
        and transactions involving terrorist groups and facilitating
        the exchange of information concerning such accounts and
        transactions between financial institutions and law enforcement
        organizations.
        ''(3) Contents. - The regulations adopted pursuant to paragraph
      (1) may -
          ''(A) require that each financial institution designate 1 or
        more persons to receive information concerning, and to monitor
        accounts of individuals, entities, and organizations
        identified, pursuant to paragraph (1); and
          ''(B) further establish procedures for the protection of the
        shared information, consistent with the capacity, size, and
        nature of the institution to which the particular procedures
        apply.
        ''(4) Rule of construction. - The receipt of information by a
      financial institution pursuant to this section shall not relieve
      or otherwise modify the obligations of the financial institution
      with respect to any other person or account.
        ''(5) Use of information. - Information received by a financial
      institution pursuant to this section shall not be used for any
      purpose other than identifying and reporting on activities that
      may involve terrorist acts or money laundering activities.
      ''(b) Cooperation Among Financial Institutions. - Upon notice
    provided to the Secretary, 2 or more financial institutions and any
    association of financial institutions may share information with
    one another regarding individuals, entities, organizations, and
    countries suspected of possible terrorist or money laundering
    activities.  A financial institution or association that transmits,
    receives, or shares such information for the purposes of
    identifying and reporting activities that may involve terrorist
    acts or money laundering activities 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 thereof, 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, except where such
    transmission, receipt, or sharing violates this section or
    regulations promulgated pursuant to this section.
      ''(c) Rule of Construction. - Compliance with the provisions of
    this title (see Short Title of 2001 Amendment note set out under
    section 5301 of this title) requiring or allowing financial
    institutions and any association of financial institutions to
    disclose or share information regarding individuals, entities, and
    organizations engaged in or suspected of engaging in terrorist acts
    or money laundering activities shall not constitute a violation of
    the provisions of title V of the Gramm-Leach-Bliley Act (Public Law
    106-102) (15 U.S.C. 6801 et seq.).
      ''(d) Reports to the Financial Services Industry on Suspicious
    Financial Activities. - At least semiannually, the Secretary shall
    -
        ''(1) publish a report containing a detailed analysis
      identifying patterns of suspicious activity and other
      investigative insights derived from suspicious activity reports
      and investigations conducted by Federal, State, and local law
      enforcement agencies to the extent appropriate; and
        ''(2) distribute such report to financial institutions (as
      defined in section 5312 of title 31, United States Code).''
      REPORT AND RECOMMENDATION ON LEGISLATIVE ACTION ON INTERNATIONAL
                    COUNTER MONEY LAUNDERING PROVISIONS
      Pub. L. 107-56, title III, Sec. 324, Oct. 26, 2001, 115 Stat.
    316, provided that: ''Not later than 30 months after the date of
    enactment of this Act (Oct. 26, 2001), the Secretary (of the
    Treasury), in consultation with the Attorney General, the Federal
    banking agencies (as defined at section 3 of the Federal Deposit
    Insurance Act (12 U.S.C. 1813)), the National Credit Union
    Administration Board, the Securities and Exchange Commission, and
    such other agencies as the Secretary may determine, at the
    discretion of the Secretary, shall evaluate the operations of the
    provisions of this subtitle (subtitle A (Sec. 311-330) of title III
    of Pub. L. 107-56, enacting section 5318A of this title, amending
    sections 5312 and 5318 of this title, sections 1828 and 1842 of
    Title 12, Banks and Banking, sections 981, 983, and 1956 of Title
    18, Crimes and Criminal Procedure, section 853 of Title 21, Food
    and Drugs, and sections 2466 and 2467 of Title 28, Judiciary and
    Judicial Procedure, and enacting provisions set out as notes under
    this section and section 5318 of this title, sections 1828 and 1842
    of Title 12, and section 983 of Title 18) and make recommendations
    to Congress as to any legislative action with respect to this
    subtitle as the Secretary may determine to be necessary or
    advisable.''
     INTERNATIONAL COOPERATION ON IDENTIFICATION OF ORIGINATORS OF WIRE
                                 TRANSFERS
      Pub. L. 107-56, title III, Sec. 328, Oct. 26, 2001, 115 Stat.
    319, provided that: ''The Secretary (of the Treasury) shall -
        ''(1) in consultation with the Attorney General and the
      Secretary of State, take all reasonable steps to encourage
      foreign governments to require the inclusion of the name of the
      originator in wire transfer instructions sent to the United
      States and other countries, with the information to remain with
      the transfer from its origination until the point of
      disbursement; and
        ''(2) report annually to the Committee on Financial Services of
      the House of Representatives and the Committee on Banking,
      Housing, and Urban Affairs of the Senate on -
          ''(A) progress toward the goal enumerated in paragraph (1),
        as well as impediments to implementation and an estimated
        compliance rate; and
          ''(B) impediments to instituting a regime in which all
        appropriate identification, as defined by the Secretary, about
        wire transfer recipients shall be included with wire transfers
        from their point of origination until disbursement.''
                             CRIMINAL PENALTIES
      Pub. L. 107-56, title III, Sec. 329, Oct. 26, 2001, 115 Stat.
    319, provided that: ''Any person who is an official or employee of
    any department, agency, bureau, office, commission, or other entity
    of the Federal Government, and any other person who is acting for
    or on behalf of any such entity, who, directly or indirectly, in
    connection with the administration of this title (see Short Title
    of 2001 Amendment note set out under section 5301 of this title),
    corruptly demands, seeks, receives, accepts, or agrees to receive
    or accept anything of value personally or for any other person or
    entity in return for -
        ''(1) being influenced in the performance of any official act;
        ''(2) being influenced to commit or aid in the committing, or
      to collude in, or allow, any fraud, or make opportunity for the
      commission of any fraud, on the United States; or
        ''(3) being induced to do or omit to do any act in violation of
      the official duty of such official or person,
    shall be fined in an amount not more than 3 times the monetary
    equivalent of the thing of value, or imprisoned for not more than
    15 years, or both.  A violation of this section shall be subject to
    chapter 227 of title 18, United States Code, and the provisions of
    the United States Sentencing Guidelines.''
                       REPORT ON INVESTMENT COMPANIES
      Pub. L. 107-56, title III, Sec. 356(c), Oct. 26, 2001, 115 Stat.
    324, provided that:
      ''(1) In general. - Not later than 1 year after the date of
    enactment of this Act (Oct. 26, 2001), the Secretary (of the
    Treasury), the Board of Governors of the Federal Reserve System,
    and the Securities and Exchange Commission shall jointly submit a
    report to the Congress on recommendations for effective regulations
    to apply the requirements of subchapter II of chapter 53 of title
    31, United States Code, to investment companies pursuant to section
    5312(a)(2)(I) of title 31, United States Code.
      ''(2) Definition. - For purposes of this subsection, the term
    'investment company' -
        ''(A) has the same meaning as in section 3 of the Investment
      Company Act of 1940 (15 U.S.C. 80a-3); and
        ''(B) includes any person that, but for the exceptions provided
      for in paragraph (1) or (7) of section 3(c) of the Investment
      Company Act of 1940 (15 U.S.C. 80a-3(c)), would be an investment
      company.
      ''(3) Additional recommendations. - The report required by
    paragraph (1) may make different recommendations for different
    types of entities covered by this subsection.
      ''(4) Beneficial ownership of personal holding companies. - The
    report described in paragraph (1) shall also include
    recommendations as to whether the Secretary should promulgate
    regulations to treat any corporation or business or other grantor
    trust whose assets are predominantly securities, bank certificates
    of deposit, or other securities or investment instruments (other
    than such as relate to operating subsidiaries of such corporation
    or trust) and that has 5 or fewer common shareholders or holders of
    beneficial or other equity interest, as a financial institution
    within the meaning of that phrase in section 5312(a)(2)(I) and
    whether to require such corporations or trusts to disclose their
    beneficial owners when opening accounts or initiating funds
    transfers at any domestic financial institution.''
       REPORT ON NEED FOR ADDITIONAL LEGISLATION RELATING TO INFORMAL
                           MONEY TRANSFER SYSTEMS
      Pub. L. 107-56, title III, Sec. 359(d), Oct. 26, 2001, 115 Stat.
    329, provided that: ''Not later than 1 year after the date of
    enactment of this Act (Oct. 26, 2001), the Secretary of the
    Treasury shall report to Congress on the need for any additional
    legislation relating to persons who engage 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, counter money laundering and regulatory controls relating
    to underground money movement and banking systems, including
    whether the threshold for the filing of suspicious activity reports
    under section 5318(g) of title 31, United States Code should be
    lowered in the case of such systems.''
     UNIFORM STATE LICENSING AND REGULATION OF CHECK CASHING, CURRENCY
                EXCHANGE, AND MONEY TRANSMITTING BUSINESSES
      Pub. L. 103-325, title IV, Sec. 407, Sept. 23, 1994, 108 Stat.
    2247, provided that:
      ''(a) Uniform Laws and Enforcement. - For purposes of preventing
    money laundering and protecting the payment system from fraud and
    abuse, it is the sense of the Congress that the several States
    should -
        ''(1) establish uniform laws for licensing and regulating
      businesses which -
          ''(A) provide check cashing, currency exchange, or money
        transmitting or remittance services, or issue or redeem money
        orders, travelers' checks, and other similar instruments; and
          ''(B) are not depository institutions (as defined in section
        5313(g) of title 31, United States Code); and
        ''(2) provide sufficient resources to the appropriate State
      agency to enforce such laws and regulations prescribed pursuant
      to such laws.
      ''(b) Model Statute. - It is the sense of the Congress that the
    several States should develop, through the auspices of the National
    Conference of Commissioners on Uniform State Laws, the American Law
    Institute, or such other forum as the States may determine to be
    appropriate, a model statute to carry out the goals described in
    subsection (a) which would include the following:
        ''(1) Licensing requirements. - A requirement that any business
      described in subsection (a)(1) be licensed and regulated by an
      appropriate State agency in order to engage in any such activity
      within the State.
        ''(2) Licensing standards. - A requirement that -
          ''(A) in order for any business described in subsection
        (a)(1) to be licensed in the State, the appropriate State
        agency shall review and approve -
            ''(i) the business record and the capital adequacy of the
          business seeking the license; and
            ''(ii) the competence, experience, integrity, and financial
          ability of any individual who -
     ''(I) is a director, officer, or supervisory employee of such
            business; or
     ''(II) owns or controls such business; and
          ''(B) any record, on the part of any business seeking the
        license or any person referred to in subparagraph (A)(ii), of -
            ''(i) any criminal activity;
            ''(ii) any fraud or other act of personal dishonesty;
            ''(iii) any act, omission, or practice which constitutes a
          breach of a fiduciary duty; or
            ''(iv) any suspension or removal, by any agency or
          department of the United States or any State, from
          participation in the conduct of any federally or State
          licensed or regulated business,
     may be grounds for the denial of any such license by the
        appropriate State agency.
        ''(3) Reporting requirements. - A requirement that any business
      described in subsection (a)(1) -
          ''(A) disclose to the appropriate State agency the fees
        charged to consumers for services described in subsection
        (a)(1)(A); and
          ''(B) conspicuously disclose to the public, at each location
        of such business, the fees charged to consumers for such
        services.
        ''(4) Procedures to ensure compliance with federal cash
      transaction reporting requirements. - A civil or criminal penalty
      for operating any business referred to in paragraph (1) without
      establishing and complying with appropriate procedures to ensure
      compliance with subchapter II of chapter 53 of title 31, United
      States Code (relating to records and reports on monetary
      instruments transactions).
        ''(5) Criminal penalties for operation of business without a
      license. - A criminal penalty for operating any business referred
      to in paragraph (1) without a license within the State after the
      end of an appropriate transition period beginning on the date of
      enactment of such model statute by the State.
      ''(c) Study Required. - The Secretary of the Treasury shall
    conduct a study of -
        ''(1) the progress made by the several States in developing and
      enacting a model statute which -
          ''(A) meets the requirements of subsection (b); and
          ''(B) furthers the goals of -
            ''(i) preventing money laundering by businesses which are
          required to be licensed under any such statute; and
            ''(ii) protecting the payment system, including the
          receipt, payment, collection, and clearing of checks, from
          fraud and abuse by such businesses; and
        ''(2) the adequacy of -
          ''(A) the activity of the several States in enforcing the
        requirements of such statute; and
          ''(B) the resources made available to the appropriate State
        agencies for such enforcement activity.
      ''(d) Report Required. - Not later than the end of the 3-year
    period beginning on the date of enactment of this Act (Sept. 23,
    1994) and not later than the end of each of the first two 1-year
    periods beginning after the end of such 3-year period, the
    Secretary of the Treasury shall submit a report to the Congress
    containing the findings and recommendations of the Secretary in
    connection with the study under subsection (c), together with such
    recommendations for legislative and administrative action as the
    Secretary may determine to be appropriate.
      ''(e) Recommendations in Cases of Inadequate Regulation and
    Enforcement by States. - If the Secretary of the Treasury
    determines that any State has been unable to -
        ''(1) enact a statute which meets the requirements described in
      subsection (b);
        ''(2) undertake adequate activity to enforce such statute; or
        ''(3) make adequate resources available to the appropriate
      State agency for such enforcement activity,
    the report submitted pursuant to subsection (d) shall contain
    recommendations of the Secretary which are designed to facilitate
    the enactment and enforcement by the State of such a statute.
      ''(f) Federal Funding Study. -
        ''(1) Study required. - The Secretary of the Treasury shall
      conduct a study to identify possible available sources of Federal
      funding to cover costs which will be incurred by the States in
      carrying out the purposes of this section.
        ''(2) Report. - The Secretary of the Treasury shall submit a
      report to the Congress on the study conducted pursuant to
      paragraph (1) not later than the end of the 18-month period
      beginning on the date of enactment of this Act (Sept. 23,
      1994).''
                    ANTI-MONEY LAUNDERING TRAINING TEAM
      Pub. L. 102-550, title XV, Sec. 1518, Oct. 28, 1992, 106 Stat.
    4060, provided that: ''The Secretary of the Treasury and the
    Attorney General shall jointly establish a team of experts to
    assist and provide training to foreign governments and agencies
    thereof in developing and expanding their capabilities for
    investigating and prosecuting violations of money laundering and
    related laws.''
                  ADVISORY GROUP ON REPORTING REQUIREMENTS
      Pub. L. 102-550, title XV, Sec. 1564, Oct. 28, 1992, 106 Stat.
    4073, provided that:
      ''(a) Establishment. - Not later than 90 days after the date of
    the enactment of this Act (Oct. 28, 1992), the Secretary of the
    Treasury shall establish a Bank Secrecy Act Advisory Group
    consisting of representatives of the Department of the Treasury,
    the Department of Justice, and the Office of National Drug Control
    Policy and of other interested persons and financial institutions
    subject to the reporting requirements of subchapter II of chapter
    53 of title 31, United States Code, or section 6050I of the
    Internal Revenue Code of 1986 (26 U.S.C. 6050I).
      ''(b) Purposes. - The Advisory Group shall provide a means by
    which the Secretary -
        ''(1) informs private sector representatives, on a regular
      basis, of the ways in which the reports submitted pursuant to the
      requirements referred to in subsection (a) have been used;
        ''(2) informs private sector representatives, on a regular
      basis, of how information regarding suspicious financial
      transactions provided voluntarily by financial institutions has
      been used; and
        ''(3) receives advice on the manner in which the reporting
      requirements referred to in subsection (a) should be modified to
      enhance the ability of law enforcement agencies to use the
      information provided for law enforcement purposes.
      ''(c) Inapplicability of Federal Advisory Committee Act. - The
    Federal Advisory Committee Act (5 App. U.S.C.) shall not apply to
    the Bank Secrecy Act Advisory Group established pursuant to
    subsection (a).''
       GAO FEASIBILITY STUDY OF FINANCIAL CRIMES ENFORCEMENT NETWORK
      Pub. L. 102-550, title XV, Sec. 1565, Oct. 28, 1992, 106 Stat.
    4074, provided that:
      ''(a) Study Required. - The Comptroller General of the United
    States shall conduct a feasibility study of the Financial Crimes
    Enforcement Network (popularly referred to as 'Fincen') established
    by the Secretary of the Treasury in cooperation with other agencies
    and departments of the United States and appropriate Federal
    banking agencies.
      ''(b) Specific Requirements. - In conducting the study required
    under subsection (a), the Comptroller General shall examine and
    evaluate -
        ''(1) the extent to which Federal, State, and local
      governmental and nongovernmental organizations are voluntarily
      providing information which is necessary for the system to be
      useful for law enforcement purposes;
        ''(2) the extent to which the operational guidelines
      established for the system provide for the coordinated and
      efficient entry of information into, and withdrawal of
      information from, the system;
        ''(3) the extent to which the operating procedures established
      for the system provide appropriate standards or guidelines for
      determining -
          ''(A) who is to be given access to the information in the
        system;
          ''(B) what limits are to be imposed on the use of such
        information; and
          ''(C) how information about activities or relationships which
        involve or are closely associated with the exercise of
        constitutional rights is to be screened out of the system; and
        ''(4) the extent to which the operating procedures established
      for the system provide for the prompt verification of the
      accuracy and completeness of information entered into the system
      and the prompt deletion or correction of inaccurate or incomplete
      information.
      ''(c) Report to Congress. - Before the end of the 1-year period,
    beginning on the date of the enactment of this Act (Oct. 28, 1992),
    the Comptroller General of the United States shall submit a report
    to the Congress containing the findings and conclusions of the
    Comptroller General in connection with the study conducted pursuant
    to subsection (a), together with such recommendations for
    legislative or administrative action as the Comptroller General may
    determine to be appropriate.''
            REPORTS ON USES MADE OF CURRENCY TRANSACTION REPORTS
      Pub. L. 101-647, title I, Sec. 101, Nov. 29, 1990, 104 Stat.
    4789, provided that: ''Not later than 180 days after the effective
    date of this section (Nov. 29, 1990), and every 2 years for 4
    years, the Secretary of the Treasury shall report to the Congress
    the following:
        ''(1) the number of each type of report filed pursuant to
      subchapter II of chapter 53 of title 31, United States Code (or
      regulations promulgated thereunder) in the previous fiscal year;
        ''(2) the number of reports filed pursuant to section 6050I of
      the Internal Revenue Code of 1986 (26 U.S.C. 6050I) (regarding
      transactions involving currency) in the previous fiscal year;
        ''(3) an estimate of the rate of compliance with the reporting
      requirements by persons required to file the reports referred to
      in paragraphs (1) and (2);
        ''(4) the manner in which the Department of the Treasury and
      other agencies of the United States collect, organize, analyze
      and use the reports referred to in paragraphs (1) and (2) to
      support investigations and prosecutions of (A) violations of the
      criminal laws of the United States, (B) violations of the laws of
      foreign countries, and (C) civil enforcement of the laws of the
      United States including the provisions regarding asset
      forfeiture;
        ''(5) a summary of sanctions imposed in the previous fiscal
      year against persons who failed to comply with the reporting
      requirements referred to in paragraphs (1) and (2), and other
      steps taken to ensure maximum compliance;
        ''(6) a summary of criminal indictments filed in the previous
      fiscal year which resulted, in large part, from investigations
      initiated by analysis of the reports referred to in paragraphs
      (1) and (2); and
        ''(7) a summary of criminal indictments filed in the previous
      fiscal year which resulted, in large part, from investigations
      initiated by information regarding suspicious financial
      transactions provided voluntarily by financial institutions.''
                INTERNATIONAL CURRENCY TRANSACTION REPORTING
      Pub. L. 100-690, title IV, Sec. 4701, Nov. 18, 1988, 102 Stat.
    4290, stated Congressional findings concerning success of cash
    transaction and money laundering control statutes in United States
    and desirability of United States playing a leadership role in
    development of similar international system, urged United States
    Government to seek active cooperation of other countries in
    enforcement of such statutes, urged Secretary of the Treasury to
    negotiate with finance ministers of foreign countries to establish
    an international currency control agency to serve as central source
    of information and database for international drug enforcement
    agencies to collect and analyze currency transaction reports filed
    by member countries, and encouraged adoption, by member countries,
    of uniform cash transaction and money laundering statutes, prior to
    repeal by Pub. L. 102-583, Sec. 6(e)(1), Nov. 2, 1992, 106 Stat.
    4933.
            RESTRICTIONS ON LAUNDERING OF UNITED STATES CURRENCY
      Pub. L. 100-690, title IV, Sec. 4702, Nov. 18, 1988, 102 Stat.
    4291, as amended by Pub. L. 103-447, title I, Sec. 103(b), Nov. 2,
    1994, 108 Stat. 4693, provided that:
      ''(a) Findings. - The Congress finds that international currency
    transactions, especially in United States currency, that involve
    the proceeds of narcotics trafficking fuel trade in narcotics in
    the United States and worldwide and consequently are a threat to
    the national security of the United States.
      ''(b) Purpose. - The purpose of this section is to provide for
    international negotiations that would expand access to information
    on transactions involving large amounts of United States currency
    wherever those transactions occur worldwide.
      ''(c) Negotiations. - (1) The Secretary of the Treasury
    (hereinafter in this section referred to as the 'Secretary') shall
    enter into negotiations with the appropriate financial supervisory
    agencies and other officials of any foreign country the financial
    institutions of which do business in United States currency.
    Highest priority shall be attached to countries whose financial
    institutions the Secretary determines, in consultation with the
    Attorney General and the Director of National Drug Control Policy,
    may be engaging in currency transactions involving the proceeds of
    international narcotics trafficking, particularly United States
    currency derived from drug sales in the United States.
      ''(2) The purposes of negotiations under this subsection are -
        ''(A) to reach one or more international agreements to ensure
      that foreign banks and other financial institutions maintain
      adequate records of large United States currency transactions,
      and
        ''(B) to establish a mechanism whereby such records may be made
      available to United States law enforcement officials.
    In carrying out such negotiations, the Secretary should seek to
    enter into and further cooperative efforts, voluntary information
    exchanges, the use of letters rogatory, and mutual legal assistance
    treaties.
      ''(d) Reports. - Not later than 1 year after the date of
    enactment of this Act (Nov. 18, 1988), the Secretary shall submit
    an interim report to the Committee on Banking, Finance and Urban
    Affairs of the House of Representatives and the Committee on
    Banking, Housing, and Urban Affairs of the Senate on progress in
    the negotiations under subsection (c). Not later than 2 years after
    such enactment, the Secretary shall submit a final report to such
    Committees and the President on the outcome of those negotiations
    and shall identify, in consultation with the Attorney General and
    the Director of National Drug Control Policy, countries -
        ''(1) with respect to which the Secretary determines there is
      evidence that the financial institutions in such countries are
      engaging in currency transactions involving the proceeds of
      international narcotics trafficking; and
        ''(2) which have not reached agreement with United States
      authorities on a mechanism for exchanging adequate records on
      international currency transactions in connection with narcotics
      investigations and proceedings.
      ''(e) Authority. - If after receiving the advice of the Secretary
    and in any case at the time of receipt of the Secretary's report,
    the Secretary determines that a foreign country -
        ''(1) has jurisdiction over financial institutions that are
      substantially engaging in currency transactions that effect
      (affect) the United States involving the proceeds of
      international narcotics trafficking;
        ''(2) such country has not reached agreement on a mechanism for
      exchanging adequate records on international currency
      transactions in connection with narcotics investigations and
      proceedings; and
        ''(3) such country is not negotiating in good faith to reach
      such an agreement,
    the President shall impose appropriate penalties and sanctions,
    including temporarily or permanently -
        ''(1) prohibiting such persons, institutions or other entities
      in such countries from participating in any United States dollar
      clearing or wire transfer system; and
        ''(2) prohibiting such persons, institutions or entities in
      such countries from maintaining an account with any bank or other
      financial institution chartered under the laws of the United
      States or any State.
    Any penalties or sanctions so imposed may be delayed or waived upon
    certification of the President to the Congress that it is in the
    national interest to do so.  Financial institutions in such
    countries that maintain adequate records shall be exempt from such
    penalties and sanctions.
      ''(f) Definitions. - For the purposes of this section -
        ''(1) The term 'United States currency' means Federal Reserve
      Notes and United States coins.
        ''(2) The term 'adequate records' means records of United
      States' currency transactions in excess of $10,000 including the
      identification of the person initiating the transaction, the
      person's business or occupation, and the account or accounts
      affected by the transaction, or other records of comparable
      effect.''
        INTERNATIONAL INFORMATION EXCHANGE SYSTEM; STUDY OF FOREIGN
                     BRANCHES OF DOMESTIC INSTITUTIONS
      Pub. L. 99-570, title I, Sec. 1363, Oct. 27, 1986, 100 Stat.
    3207-33, required the Secretary of the Treasury to initiate
    discussions with the central banks or other appropriate
    governmental authorities of other countries and propose that an
    information exchange system be established to reduce international
    flow of money derived from illicit drug operations and other
    criminal activities and to report to Congress before the end of the
    9-month period beginning Oct. 27, 1986. The Secretary of the
    Treasury was also required to conduct a study of (1) the extent to
    which foreign branches of domestic institutions are used to
    facilitate illicit transfers of or to evade reporting requirements
    on transfers of coins, currency, and other monetary instruments
    into and out of the United States; (2) the extent to which the law
    of the United States is applicable to the activities of such
    foreign branches; and (3) methods for obtaining the cooperation of
    the country in which any such foreign branch is located for
    purposes of enforcing the law of the United States with respect to
    transfers, and reports on transfers, of such monetary instruments
    into and out of the United States and to report to Congress before
    the end of the 9-month period beginning Oct. 27, 1986.
 
-CITE-
    31 USC Sec. 5312                                             01/22/02
 
-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE IV - MONEY
    CHAPTER 53 - MONETARY TRANSACTIONS
    SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS
         TRANSACTIONS
 
-HEAD-
    Sec. 5312. Definitions and application
 
-STATUTE-
      (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 5333 (FOOTNOTE 1) and 5316,
        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.
       (FOOTNOTE 1) So in original.  This title does not contain a
    section 5333.
        (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) (FOOTNOTE 2) Certain institutions included in definition. -
      The term ''financial institution'' (as defined in subsection (a))
      includes the following:
       (FOOTNOTE 2) So in original.  No par. (2) has been enacted.
          (A) (FOOTNOTE 3) Any futures commission merchant, commodity
        trading advisor, or commodity pool operator registered, or
        required to register, under the Commodity Exchange Act.
       (FOOTNOTE 3) So in original.  No subpar. (B) has been enacted.
 
-SOURCE-
    (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 995; Pub. L. 99-570,
    title I, Sec. 1362, Oct. 27, 1986, 100 Stat. 3207-33; Pub. L.
    100-690, title VI, Sec. 6185(a), (g)(1), Nov. 18, 1988, 102 Stat.
    4354, 4357; Pub. L. 103-325, title IV, Sec. 405, 409, Sept. 23,
    1994, 108 Stat. 2247, 2252; Pub. L. 107-56, title III, Sec. 321(a),
    (b), 359(a), 365(c)(1), (2)(A), Oct. 26, 2001, 115 Stat. 315, 328,
    335.)
 
-MISC1-
 
                       Historical and Revision Notes
    ---------------------------------------------------------------------
    Revised Section        Source (U.S. Code)     Source (Statutes at
                                                   Large)
    ---------------------------------------------------------------------
    5312(a)(1)             31:1052(a), (b),       Oct. 26, 1970, Pub.
                            (g), (i).              L. 91-508, Sec.
                                                   203(a)-(i), (l), 84
                                                   Stat. 1118.
    5312(a)(2)             31:1052(e).
    5312(a)(3)             31:1052(l).
    5312(a)(4)             31:1052(c).
    5312(a)(5)             31:1052(d).
    5312(b)                31:1052(f), (h).
                     -------------------------------
      In subsection (a)(1), the text of 31:1052(a) is omitted as
    unnecessary.  The text of 31:1052(b) is omitted because of the
    restatement.  The text of 31:1052(i) is omitted as unnecessary
    because the source provision is restated where necessary in the
    revised subchapter.
      In subsection (a)(2), (3), (4), and (5), the words ''the
    Secretary . . . prescribes'' are substituted for ''specified by the
    Secretary by regulation'', ''as the Secretary may by regulation
    specify'', ''specified by the Secretary'', and ''the Secretary
    shall by regulation specify'' for consistency.
      In subsection (a)(2) and (3), the words ''for the purposes of the
    provision of this chapter to which the regulation relates'' are
    omitted as surplus.
      In subsection (a)(2), before subclause (A), the words ''any
    person which does business in any one or more of the following
    capacities'' are omitted as surplus.  In subclause (F), the words
    ''savings bank, building and loan association, credit union,
    industrial bank, or other'' are omitted as surplus.  In subclause
    (T), the words ''agency of the United States Government or of a
    State or local government'' are substituted for ''Federal, State,
    or local government institution'' for consistency.  In subclause
    (U), the words ''type of'' are omitted as surplus.  The word
    ''agency'' is substituted for ''institution'' for consistency.
      In subsection (a)(3)(B)-(5), the word ''prescribe'' is
    substituted for ''specify'' for consistency in the revised title
    and with other titles of the United States Code.
      In subsection (a)(3)(B), the words ''in addition'', and ''and
    such types of'' are omitted as surplus.  The words ''similar
    material'' are substituted for ''the equivalent thereof'' for
    clarity.
      In subsection (a)(4), the words ''in addition to its meaning
    under section 1 of title 1'' are substituted for ''natural persons,
    partnerships, . . . associations, corporations, and all entities
    cognizable as legal personalities'' for consistency because 1:1 is
    applicable to all laws unless otherwise provided.  The words ''a
    trustee, a representative of an estate'' are substituted for
    ''trusts, estates'', and the word ''entity'' is substituted for
    ''department or agency'', for consistency.  The words ''either for
    the purpose of this chapter generally or any particular requirement
    thereunder'' are omitted as surplus.
      In subsection (a)(5), the words ''used in a geographic sense''
    are omitted because of the restatement.  The words ''either for the
    purposes of this chapter generally or any particular requirement
    thereunder'' are omitted as surplus.  The words ''territory or''
    are added for consistency.
      Subsection (b) is substituted for 31:1052(f) and (h) to eliminate
    unnecessary words and for consistency.
 
-REFTEXT-
                             REFERENCES IN TEXT
      The Securities Exchange Act of 1934, referred to in subsec.
    (a)(2)(G), is act June 6, 1934, ch. 404, 48 Stat. 881, as amended,
    which is classified principally to chapter 2B (Sec. 78a et seq.) of
    Title 15, Commerce and Trade. For complete classification of this
    Act to the Code, see section 78a of Title 15 and Tables.
      The Indian Gaming Regulatory Act, referred to in subsec.
    (a)(2)(X)(ii), is Pub. L. 100-497, Oct. 17, 1988, 102 Stat. 2467,
    as amended, which is classified principally to chapter 29 (Sec.
    2701 et seq.) of Title 25, Indians. Section 4(6) of the Act is
    classified to section 2703(6) of Title 25. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 2701 of this title and Tables.
      The Commodity Exchange Act, referred to in subsec. (c)(1)(A), is
    act Sept. 21, 1922, ch. 369, 42 Stat. 998, as amended, which is
    classified generally to chapter 1 (Sec. 1 et seq.) of Title 7,
    Agriculture. For complete classification of this Act to the Code,
    see section 1 of Title 7 and Tables.
 
-COD-
                                CODIFICATION
      Another section 365(c) of Pub. L. 107-56 amended the table of
    sections at the beginning of this chapter.
 
-MISC3-
                                 AMENDMENTS
      2001 - Subsec. (a)(2)(E). Pub. L. 107-56, Sec. 321(a), which
    directed the general amendment of par. (2)(E) of this section, was
    executed to subsec. (a)(2)(E) of this section to reflect the
    probable intent of Congress. Prior to amendment, subsec. (a)(2)(E)
    read as follows: ''an insured institution (as defined in section
    401(a) of the National Housing Act (12 U.S.C. 1724(a)));''.
      Subsec. (a)(2)(R). Pub. L. 107-56, Sec. 359(a), amended subpar.
    (R) generally.  Prior to amendment, subpar. (R) read as follows:
    ''a licensed sender of money;''.
      Subsec. (a)(3)(C). Pub. L. 107-56, Sec. 365(c)(2)(A), substituted
    ''sections 5333 and 5316,'' for ''section 5316,''.
      Subsec. (a)(4) to (6). Pub. L. 107-56, Sec. 365(c)(1), added par.
    (4) and redesignated former pars. (4) and (5) as (5) and (6),
    respectively.
      Subsec. (c). Pub. L. 107-56, Sec. 321(b), added subsec. (c).
      1994 - Subsec. (a)(2)(X) to (Z). Pub. L. 103-325, Sec. 409, added
    subpar. (X) and redesignated former subpars. (X) and (Y) as (Y) and
    (Z), respectively.
      Subsec. (a)(3)(C). Pub. L. 103-325, Sec. 405, added subpar. (C).
      1988 - Subsec. (a)(2)(T) to (Y). Pub. L. 100-690, Sec. 6185(a),
    added subpars. (T) to (Y) and struck out former subpars. (T) and
    (U) which read as follows:
      ''(T) 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 clause (2), including the United States Postal
    Service; or
      ''(U) another business or agency carrying out a similar, related,
    or substitute duty or power the Secretary of the Treasury
    prescribes.''
      Subsec. (a)(5). Pub. L. 100-690, Sec. 6185(g)(1), inserted a
    comma after ''Puerto Rico'' and struck out second comma after
    ''Pacific Islands''.
      1986 - Subsec. (a)(2)(T). Pub. L. 99-570, Sec. 1362(a), which
    directed that the Postal Service be included within United States
    agencies by amending subsec. (a)(2)(U) of this section by inserting
    before the semicolon at the end thereof the following '', including
    the United States Postal Service'', was executed to subsec.
    (a)(2)(T) of this section as the probable intent of Congress,
    because subsec. (a)(2)(U) does not contain a semicolon and subsec.
    (a)(2)(T) relates to United States agencies.
      Subsec. (a)(5). Pub. L. 99-570, Sec. 1362(b), inserted ''the
    Virgin Islands, Guam, the Northern Mariana Islands, American Samoa,
    the Trust Territory of the Pacific Islands,'' after ''Puerto
    Rico''.
                     TERMINATION DATE OF 2001 AMENDMENT
      Amendments by title III of Pub. L. 107-56 to terminate effective
    on and after the first day of fiscal year 2005 if Congress enacts a
    joint resolution that such amendments no longer have the force of
    law, see section 303 of Pub. L. 107-56, set out as a Four-Year
    Congressional Review; Expedited Consideration note under section
    5311 of this title.
 
-TRANS-
           TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS
      For termination of Trust Territory of the Pacific Islands, see
    note set out preceding section 1681 of Title 48, Territories and
    Insular Possessions.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 5318, 5331, 5340 of this
    title; title 12 section 1953; title 18 sections 986, 1956, 2339B;
    title 19 sections 1401, 1607; title 26 section 6050I; title 50
    section 438.
 
-CITE-
    31 USC Sec. 5313                                             01/22/02
 
-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE IV - MONEY
    CHAPTER 53 - MONETARY TRANSACTIONS
    SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS
         TRANSACTIONS
 
-HEAD-
    Sec. 5313. Reports on domestic coins and currency transactions
 
-STATUTE-
      (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
    (FOOTNOTE 1) of the National Housing Act (12 U.S.C. 1730d), or
    section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b).
       (FOOTNOTE 1) See References in Text note below.
      (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.
 
-SOURCE-
    (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 996; Pub. L. 103-325,
    title IV, Sec. 402(a), Sept. 23, 1994, 108 Stat. 2243.)
 
-MISC1-
 
                       Historical and Revision Notes
    ---------------------------------------------------------------------
    Revised Section        Source (U.S. Code)     Source (Statutes at
                                                   Large)
    ---------------------------------------------------------------------
    5313(a)                31:1081.               Oct. 26, 1970, Pub.
                                                   L. 91-508, Sec. 221-
                                                  223, 84 Stat. 1122.
                           31:1082.
    5313(b)                31:1083(a).
    5313(c)                31:1083(b).
                     -------------------------------
      In subsection (a), the words ''coins or'' are added, and the
    words ''prescribe'' and ''prescribes'' are substituted for
    ''specify'' in 31:1081, and ''require'', for consistency.  The
    words ''other parties thereto or'' in 31:1082 are omitted as
    surplus.  The words ''to the Secretary'' in 31:1081 are omitted as
    unnecessary and for clarity.  The words ''in such detail'' are
    omitted as surplus.  The words ''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''
    are substituted for 31:1082(last sentence) for clarity and to
    eliminate unnecessary words.
      In subsection (b), the words ''in his discretion'' and
    ''individually or by class'' are omitted as surplus.  The word
    ''Government'' is added for consistency.  The words ''or a
    regulation under this subchapter'', are added because of the
    restatement.  The words ''(except a violation of section 5315 of
    this title or a regulation prescribed under section 5315)'' are
    added because 31:1141-1143 was not enacted as a part of the
    Currency and Foreign Transactions Reporting Act that is restated in
    this subchapter.
      In subsection (c)(1), clause (A) is substituted for ''with
    respect to a domestic financial institution . . . with that
    institution'' for clarity.  Clause (C) is substituted for ''any
    such person may, at his election and in lieu of filing the report
    in the manner hereinabove prescribed, file the report with the
    Secretary'' to eliminate unnecessary words.
 
-REFTEXT-
                             REFERENCES IN TEXT
      Section 411 of the National Housing Act, referred to in subsec.
    (b), which was classified to section 1730d of Title 12, Banks and
    Banking, was repealed by Pub. L. 101-73, title IV, Sec. 407, Aug.
    9, 1989, 103 Stat. 363.
      Section 19(b)(1)(A) and (C) of the Federal Reserve Act, referred
    to in subsecs. (e)(2)(A) and (g)(1), is classified to section
    461(b)(1)(A) and (C) of Title 12.
      The date of enactment of the Money Laundering Suppression Act of
    1994, referred to in subsec. (e)(6), is the date of enactment of
    title IV of Pub. L. 103-325, which was approved Sept. 23, 1994.
      Section 1(b) of the International Banking Act of 1978, referred
    to in subsec. (g)(2)(A), is classified to section 3101 of Title 12.
      Sections 25 and 25A of the Federal Reserve Act, referred to in
    subsec. (g)(2)(B), (C), are classified to subchapters I (Sec. 601
    et seq.) and II (Sec. 611 et seq.), respectively, of chapter 6 of
    Title 12.
 
-MISC2-
                                 AMENDMENTS
      1994 - Subsecs. (d) to (g). Pub. L. 103-325 added subsecs. (d) to
    (g).
            EFFICIENT USE OF CURRENCY TRANSACTION REPORT SYSTEM
      Pub. L. 107-56, title III, Sec. 366, Oct. 26, 2001, 115 Stat.
    335, provided that:
      ''(a) Findings. - The Congress finds the following:
        ''(1) The Congress established the currency transaction
      reporting requirements in 1970 because the Congress found then
      that such reports have a high degree of usefulness in criminal,
      tax, and regulatory investigations and proceedings and the
      usefulness of such reports has only increased in the years since
      the requirements were established.
        ''(2) In 1994, in response to reports and testimony that excess
      amounts of currency transaction reports were interfering with
      effective law enforcement, the Congress reformed the currency
      transaction report exemption requirements to provide -
          ''(A) mandatory exemptions for certain reports that had
        little usefulness for law enforcement, such as cash transfers
        between depository institutions and cash deposits from
        government agencies; and
          ''(B) discretionary authority for the Secretary of the
        Treasury to provide exemptions, subject to criteria and
        guidelines established by the Secretary, for financial
        institutions with regard to regular business customers that
        maintain accounts at an institution into which frequent cash
        deposits are made.
        ''(3) Today there is evidence that some financial institutions
      are not utilizing the exemption system, or are filing reports
      even if there is an exemption in effect, with the result that the
      volume of currency transaction reports is once again interfering
      with effective law enforcement.
      ''(b) Study and Report. -
        ''(1) Study required. - The Secretary shall conduct a study of
      -
          ''(A) the possible expansion of the statutory exemption
        system in effect under section 5313 of title 31, United States
        Code; and
          ''(B) methods for improving financial institution utilization
        of the statutory exemption provisions as a way of reducing the
        submission of currency transaction reports that have little or
        no value for law enforcement purposes, including improvements
        in the systems in effect at financial institutions for regular
        review of the exemption procedures used at the institution and
        the training of personnel in its effective use.
        ''(2) Report required. - The Secretary of the Treasury shall
      submit a report to the Congress before the end of the 1-year
      period beginning on the date of enactment of this Act (Oct. 26,
      2001) containing the findings and conclusions of the Secretary
      with regard to the study required under subsection (a), and such
      recommendations for legislative or administrative action as the
      Secretary determines to be appropriate.''
      REPORT REDUCTION GOAL; STREAMLINED CURRENCY TRANSACTION REPORTS
      Section 402(b), (c) of Pub. L. 103-325 provided that:
      ''(b) Report Reduction Goal; Reports. -
        ''(1) In general. - In implementing the amendment made by
      subsection (a) (amending this section), the Secretary of the
      Treasury shall seek to reduce, within a reasonable period of
      time, the number of reports required to be filed in the aggregate
      by depository institutions pursuant to section 5313(a) of title
      31, United States Code, by at least 30 percent of the number
      filed during the year preceding the date of enactment of this Act
      (Sept. 23, 1994).
        ''(2) Interim report. - The Secretary of the Treasury shall
      submit a report to the Congress not later than the end of the
      180-day period beginning on the date of enactment of this Act on
      the progress made by the Secretary in implementing the amendment
      made by subsection (a).
        ''(3) Annual report. - The Secretary of the Treasury shall
      submit an annual report to the Congress after the end of each of
      the first 5 calendar years which begin after the date of
      enactment of this Act on the extent to which the Secretary has
      reduced the overall number of currency transaction reports filed
      with the Secretary pursuant to section 5313(a) of title 31,
      United States Code, consistent with the purposes of such section
      and effective law enforcement.
      ''(c) Streamlined Currency Transaction Reports. - The Secretary
    of the Treasury shall take such action as may be appropriate to -
        ''(1) redesign the format of reports required to be filed under
      section 5313(a) of title 31, United States Code, by any financial
      institution (as defined in section 5312(a)(2) of such title) to
      eliminate the need to report information which has little or no
      value for law enforcement purposes; and
        ''(2) reduce the time and effort required to prepare such
      report for filing by any such financial institution under such
      section.''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 5312, 5317, 5324, 5330,
    5331 of this title; title 12 section 3420; title 26 section 6103;
    title 28 section 524.
 

-CITE-
    31 USC Sec. 5315                                             01/22/02
 
-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE IV - MONEY
    CHAPTER 53 - MONETARY TRANSACTIONS
    SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS
         TRANSACTIONS
 
-HEAD-
    Sec. 5315. Reports on foreign currency transactions
 
-STATUTE-
      (a) Congress finds that -
        (1) moving mobile capital can have a significant impact on the
      proper functioning of the international monetary system;
        (2) it is 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.
 
-SOURCE-
    (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 997.)
 
-MISC1-
 
                       Historical and Revision Notes
    ---------------------------------------------------------------------
    Revised Section        Source (U.S. Code)     Source (Statutes at
                                                   Large)
    ---------------------------------------------------------------------
    5315(a)                31:1141.               Sept. 21, 1973, Pub.
                                                   L. 93-110, Sec.
                                                   201, 202, 87 Stat.
                                                   353.
    5315(b), (c)           31:1142.
                     -------------------------------
      In subsection (a)(3), the words ''it is desirable to emphasize
    this objective . . . existing legal'' are omitted as unnecessary.
      In subsection (c), the words ''(hereafter referred to as the
    'Secretary')'' are omitted because of the restatement.  The words
    ''under the authority of this subchapter and any other authority
    conferred by law'' are omitted as surplus.  The word ''prescribe''
    is substituted for ''supplement'' for clarity.  The words ''the
    statement of findings under'' and ''the submission of'' are omitted
    as surplus.  The words ''Reports required under this subchapter
    shall cover foreign currency transactions'' are omitted because of
    the restatement.  The words ''such terms are'' and ''the policy
    of'' are omitted as surplus.
 
-REFTEXT-
                             REFERENCES IN TEXT
      Section 5(b) of the Trading With the Enemy Act, referred to in
    subsec. (a)(3), is also classified to section 95a of Title 12,
    Banks and Banking.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 5311, 5313, 5318, 5321,
    5322 of this title.
 

-CITE-
    31 USC Sec. 5318                                             01/22/02
 
-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE IV - MONEY
    CHAPTER 53 - MONETARY TRANSACTIONS
    SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS
         TRANSACTIONS
 
-HEAD-
    Sec. 5318. Compliance, exemptions, and summons authority
 
-STATUTE-
      (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 trades or businesses 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 trades or
      businesses relevant to the recordkeeping or reporting
      requirements of this subchapter;
        (4) summon a financial institution or nonfinancial trade or
      business, an officer or employee of a financial institution or
      nonfinancial trade or business (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 (FOOTNOTE 1) 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.
       (FOOTNOTE 1) See References in Text note below.
        (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
      than 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, and 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) (FOOTNOTE 2)
    unless the relevant financial institution or nonfinancial trade or
    business prepares and maintains a statement which -
       (FOOTNOTE 2) See References in Text note below.
        (1) describes in detail the reasons why such person is
      qualified for such exemption; and
        (2) contains the signature of such person.
      (g) Reporting of Suspicious Transactions. -
        (1) In general. - The Secretary may require any financial
      institution, and any director, officer, employee, or agent of any
      financial institution, to report any suspicious transaction
      relevant to a possible violation of law or regulation.
        (2) Notification prohibited. -
          (A) In general. - If a financial institution or any director,
        officer, employee, or agent of any financial institution,
        voluntarily or pursuant to this section or any other authority,
        reports a suspicious transaction to a government agency -
            (i) the financial institution, director, officer, employee,
          or agent may not notify any person involved in the
          transaction that the transaction has been reported; and
            (ii) no officer or employee of the Federal Government or of
          any State, local, tribal, or territorial government within
          the United States, who has any knowledge that such report was
          made may disclose to any person involved in the transaction
          that the transaction has been reported, other than as
          necessary to fulfill the official duties of such officer or
          employee.
          (B) Disclosures in certain employment references. -
            (i) Rule of construction. - Notwithstanding the application
          of subparagraph (A) in any other context, subparagraph (A)
          shall not be construed as prohibiting any financial
          institution, or any director, officer, employee, or agent of
          such institution, from including information that was
          included in a report to which subparagraph (A) applies -
              (I) in a written employment reference that is provided in
            accordance with section 18(w) of the Federal Deposit
            Insurance Act in response to a request from another
            financial institution; or
              (II) in a written termination notice or employment
            reference that is provided in accordance with the rules of
            a self-regulatory organization registered with the
            Securities and Exchange Commission or the Commodity Futures
            Trading Commission,
         except that such written reference or notice may not disclose
          that such information was also included in any such report,
          or that such report was made.
            (ii) Information not required. - Clause (i) shall not be
          construed, by itself, to create any affirmative duty to
          include any information described in clause (i) in any
          employment reference or termination notice referred to in
          clause (i).
        (3) Liability for disclosures. -
          (A) In general. - Any financial institution that makes a
        voluntary disclosure of any possible violation of law or
        regulation to a government agency or makes a disclosure
        pursuant to this subsection or any other authority, and any
        director, officer, employee, or 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, 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, each financial institution shall
      establish 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, and 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) Definition. - 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, at 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(f)(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 or
          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 so terminated.
      (l) (FOOTNOTE 3) Identification and Verification of
    Accountholders. -
       (FOOTNOTE 3) So in original.  Two subsecs. (l) have been
    enacted.
        (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 terrorists 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.
      (l) (FOOTNOTE 3) 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.
 
-SOURCE-
    (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 999; Pub. L. 99-570,
    title I, Sec. 1356(a), (b), (c)(2), Oct. 27, 1986, 100 Stat.
    3207-23, 3207-24; Pub. L. 100-690, title VI, Sec. 6185(e), 6469(c),
    Nov. 18, 1988, 102 Stat. 4357, 4377; Pub. L. 102-550, title XV,
    Sec. 1504(d)(1), 1513, 1517(b), Oct. 28, 1992, 106 Stat. 4055,
    4058, 4059; Pub. L. 103-322, title XXXIII, Sec. 330017(b)(1), Sept.
    13, 1994, 108 Stat. 2149; Pub. L. 103-325, title IV, Sec. 403(a),
    410, 413(b)(1), Sept. 23, 1994, 108 Stat. 2245, 2252, 2254; Pub. L.
    107-56, title III, Sec. 312(a), 313(a), 319(b), 325, 326(a), 351,
    352(a), 358(b), 359(c), 365(c)(2)(B), Oct. 26, 2001, 115 Stat. 304,
    306, 312, 317, 320, 322, 326, 328, 335.)
 
-MISC1-
                       Historical and Revision Notes
    ---------------------------------------------------------------------
    Revised Section        Source (U.S. Code)     Source (Statutes at
                                                   Large)
    ---------------------------------------------------------------------
    5318                   31:1054(a), (b)(1st    Oct. 26, 1970, Pub.
                            sentence).             L. 91-508, Sec.
                                                   205(a), (b)(1st
                                                   sentence), 206, 84
                                                   Stat. 1120.
                           31:1055.
                     -------------------------------
      In the section, before clause (1), the words ''have the
    responsibility to assure compliance with the requirements of this
    chapter'' in 31:1054(a) are omitted as unnecessary because of
    section 321 of the revised title.  The words ''(except under
    section 5315 of this title and regulations prescribed under section
    5315)'' are added because 31:1141-1143 was not enacted as a part of
    the Currency and Foreign Transactions Reporting Act that is
    restated in this subchapter.  In clause (1), the words ''duties and
    powers'' are substituted for ''responsibilities'' for consistency
    in the revised title and with other titles of the United States
    Code. The words ''bank supervisory agency, or other'' are omitted
    as surplus.  In clause (2), the words ''by regulation'' and ''as he
    may deem'' are omitted as surplus.  The words ''and regulations
    prescribed under this subchapter'' are added because of the
    restatement.  In clause (3), the word ''prescribe'' is substituted
    for ''make'' in 31:1055 for consistency in the revised title and
    with other titles of the Code. The words ''otherwise imposed'',
    31:1055(1st sentence), and the words ''in his discretion'' are
    omitted as surplus.
 
-REFTEXT-
                             REFERENCES IN TEXT
      Section 21 of the Federal Deposit Insurance Act, referred to in
    subsecs. (b)(1) and (l), is classified to section 1829b of Title
    12, Banks and Banking.
      Section 411 of the National Housing Act, referred to in subsec.
    (b)(1), which was classified to section 1730d of Title 12, was
    repealed by Pub. L. 101-73, title IV, Sec. 407, Aug. 9, 1989, 103
    Stat. 363.
      Chapter 2 of Public Law 91-508 (12 U.S.C. 1951 et seq.), referred
    to in subsec. (b)(1), probably means chapter 2 (Sec. 121 to 129) of
    title I of Pub. L. 91-508, Oct. 26, 1970, 84 Stat. 1116, which is
    classified generally to chapter 21 (Sec. 1951 et seq.) of Title 12.
    For complete classification of chapter 2 to the Code, see Tables.
      Subsection (a)(5), referred to in subsec. (f), was redesignated
    subsection (a)(6) by section 410(a)(2) of Pub. L. 103-325.
      Section 18(w) of the Federal Deposit Insurance Act, referred to
    in subsec. (g)(2)(B)(i)(I), is classified to section 1828(w) of
    Title 12, Banks and Banking.
      Section 509 of the Gramm-Leach-Bliley Act, referred to in
    subsecs. (h)(2) and (l)(4), is classified to section 6809 of Title
    15, Commerce and Trade.
      Section 4(k) of the Bank Holding Company Act of 1956, referred to
    in subsec. (l)(4), is classified to section 1843(k) of Title 12,
    Banks and Banking.
      The date of enactment of the International Money Laundering
    Abatement and Financial Anti-Terrorism Act of 2001, referred to in
    subsec. (l)(6), is the date of enactment of title III of Pub. L.
    107-56, which was approved Oct. 26, 2001.
 
-COD-
                                CODIFICATION
      Another section 365(c) of Pub. L. 107-56 amended the table of
    sections at the beginning of this chapter.
 
-MISC3-
                                 AMENDMENTS
      2001 - Subsec. (a)(2), (3). Pub. L. 107-56, Sec.
    365(c)(2)(B)(ii), inserted ''or nonfinancial trades or businesses''
    after ''financial institutions''.
      Subsec. (a)(4). Pub. L. 107-56, Sec. 365(c)(2)(B)(i), inserted
    ''or nonfinancial trade or business'' after ''financial
    institution'' in two places.
      Subsec. (c)(1). Pub. L. 107-56, Sec. 365(c)(2)(B)(i), inserted
    ''or nonfinancial trade or business'' after ''financial
    institution''.
      Subsec. (f). Pub. L. 107-56, Sec. 365(c)(2)(B)(i), inserted ''or
    nonfinancial trade or business'' after ''financial institution'' in
    introductory provisions.
      Subsec. (g)(2). Pub. L. 107-56, Sec. 351(b), reenacted heading
    without change and amended text generally.  Prior to amendment,
    text read as follows: ''A financial institution, and a director,
    officer, employee, or agent of any financial institution, who
    voluntarily reports a suspicious transaction, or that reports a
    suspicious transaction pursuant to this section or any other
    authority, may not notify any person involved in the transaction
    that the transaction has been reported.''
      Subsec. (g)(3). Pub. L. 107-56, Sec. 351(a), reenacted heading
    without change and amended text generally.  Prior to amendment,
    text read as follows: ''Any financial institution that makes a
    disclosure of any possible violation of law or regulation or a
    disclosure pursuant to this subsection or any other authority, and
    any director, officer, employee, or agent of such institution,
    shall not be liable to any person under any law or regulation of
    the United States or any constitution, law, or regulation of any
    State or political subdivision thereof, for such disclosure or for
    any failure to notify the person involved in the transaction or any
    other person of such disclosure.''
      Subsec. (g)(4)(B). Pub. L. 107-56, Sec. 358(b), substituted '',
    supervisory agency, or United States intelligence agency for use in
    the conduct of intelligence or counterintelligence activities,
    including analysis, to protect against international terrorism''
    for ''or supervisory agency''.
      Subsec. (h). Pub. L. 107-56, Sec. 352(a), reenacted heading
    without change and amended text of subsec. (h) generally.  Prior to
    amendment, text read as follows:
      ''(1) In general. - In order to guard against money laundering
    through financial institutions, the Secretary may require financial
    institutions to carry out 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 may prescribe minimum
    standards for programs established under paragraph (1).''
      Subsec. (h)(3). Pub. L. 107-56, Sec. 325, which directed
    amendment of subsec. (h) of this section, ''as amended by section
    202 of this title'', by adding par. (3), was executed by adding
    par. (3) to subsec. (h) of this section, as amended by section 352
    of title III of Pub. L. 107-56, to reflect the probable intent of
    Congress.
      Subsec. (i). Pub. L. 107-56, Sec. 312(a), added subsec. (i).
      Subsec. (j). Pub. L. 107-56, Sec. 313(a), added subsec. (j).
      Subsec. (k). Pub. L. 107-56, Sec. 319(b), added subsec. (k).
      Subsec. (l). Pub. L. 107-56, Sec. 359(c), added subsec. (l)
    relating to applicability of rules.
      Pub. L. 107-56, Sec. 326(a), added subsec. (l) relating to
    identification and verification of accountholders.
      1994 - Subsec. (a)(5). Pub. L. 103-325, Sec. 410(a), added par.
    (5). Former par. (5) redesignated (6).
      Subsec. (a)(6). Pub. L. 103-325, Sec. 410(b), inserted ''under
    this paragraph or paragraph (5)'' after ''revoke an exemption'' in
    penultimate sentence.
      Pub. L. 103-325, Sec. 410(a)(2), redesignated par. (5) as (6).
      Subsec. (g). Pub. L. 103-322, Sec. 330017(b)(1), and Pub. L.
    103-325, Sec. 413(b)(1), amended directory language of Pub. L.
    102-550, Sec. 1517(b), identically.  See 1992 Amendment note below.
      Subsec. (g)(4). Pub. L. 103-325, Sec. 403(a), added par. (4).
      Subsec. (h). Pub. L. 103-322, Sec. 330017(b)(1), and Pub. L.
    103-325, Sec. 413(b)(1), amended directory language of Pub. L.
    102-550, Sec. 1517(b), identically.  See 1992 Amendment note below.
      1992 - Subsec. (a)(1). Pub. L. 102-550, Sec. 1504(d)(1),
    substituted ''supervising agency and the United States Postal
    Service'' for ''supervising agency or the Postal Inspection Service
    and the Postal Service''.
      Subsec. (a)(2). Pub. L. 102-550, Sec. 1513, inserted before
    semicolon ''or to guard against money laundering''.
      Subsecs. (g), (h). Pub. L. 102-550, Sec. 1517(b), as amended by
    Pub. L. 103-322, Sec. 330017(b)(1), and Pub. L. 103-325, Sec.
    413(b)(1), added subsecs. (g) and (h).
      1988 - Subsec. (a)(1). Pub. L. 100-690, Sec. 6469(c), inserted
    ''or the Postal Inspection Service'' after ''appropriate
    supervising agency''.
      Pub. L. 100-690, Sec. 6185(e), inserted ''and the Postal
    Service'' after ''appropriate supervising agency''.
      1986 - Pub. L. 99-570, Sec. 1356(c)(2), substituted ''Compliance,
    exemptions, and summons authority'' for ''Compliance and
    exemptions'' in section catchline.
      Subsec. (a). Pub. L. 99-570, Sec. 1356(a)(1)-(5), designated
    existing provisions as subsec. (a), added subsec. heading, inserted
    ''except as provided in subsection (b)(2),'' in par. (1), added
    pars. (3) and (4), and redesignated former par. (3) as (5).
      Subsecs. (b) to (e). Pub. L. 99-570, Sec. 1356(a)(6), added
    subsecs. (b) to (e).
      Subsec. (f). Pub. L. 99-570, Sec. 1356(b), added subsec. (f).
             EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
      Amendments by title III of Pub. L. 107-56 to terminate effective
    on and after the first day of fiscal year 2005 if Congress enacts a
    joint resolution that such amendments no longer have the force of
    law, see section 303 of Pub. L. 107-56, set out as a Four-Year
    Congressional Review; Expedited Consideration note under section
    5311 of this title.
      Pub. L. 107-56, title III, Sec. 312(b)(2), Oct. 26, 2001, 115
    Stat. 306, provided that: ''Section 5318(i) of title 31, United
    States Code, as added by this section, shall take effect 270 days
    after the date of enactment of this Act (Oct. 26, 2001), whether or
    not final regulations are issued under paragraph (1) (set out
    below), and the failure to issue such regulations shall in no way
    affect the enforceability of this section (amending this section
    and enacting provisions set out as a note below) or the amendments
    made by this section.  Section 5318(i) of title 31, United States
    Code, as added by this section, shall apply with respect to
    accounts covered by that section 5318(i), that are opened before,
    on, or after the date of enactment of this Act.''
      Pub. L. 107-56, title III, Sec. 313(b), Oct. 26, 2001, 115 Stat.
    307, provided that: ''The amendment made by subsection (a)
    (amending this section) shall take effect at the end of the 60-day
    period beginning on the date of enactment of this Act (Oct. 26,
    2001).''
      Pub. L. 107-56, title III, Sec. 352(b), Oct. 26, 2001, 115 Stat.
    322, provided that: ''The amendment made by subsection (a)
    (amending this section) shall take effect at the end of the 180-day
    period beginning on the date of enactment of this Act (Oct. 26,
    2001).''
      Amendment by section 358(b) of Pub. L. 107-56 applicable with
    respect to reports filed or records maintained on, before, or after
    Oct. 26, 2001, see section 358(h) of Pub. L. 107-56, set out as a
    note under section 1829b of Title 12, Banks and Banking.
                      EFFECTIVE DATE OF 1994 AMENDMENT
      Section 330017(b)(1) of Pub. L. 103-322 and section 413(b)(1) of
    Pub. L. 103-325 provided that the identical amendments made by
    those sections are effective Oct. 28, 1992.
                                REGULATIONS
      Pub. L. 107-56, title III, Sec. 312(b)(1), Oct. 26, 2001, 115
    Stat. 305, provided that: ''Not later than 180 days after the date
    of enactment of this Act (Oct. 26, 2001), the Secretary (of the
    Treasury), in consultation with the appropriate Federal functional
    regulators (as defined in section 509 of the Gramm-Leach-Bliley Act
    (15 U.S.C. 6809)) of the affected financial institutions, shall
    further delineate, by regulation, the due diligence policies,
    procedures, and controls required under section 5318(i)(1) of title
    31, United States Code, as added by this section.''
      Pub. L. 107-56, title III, Sec. 352(c), Oct. 26, 2001, 115 Stat.
    322, provided that: ''Before the end of the 180-day period
    beginning on the date of enactment of this Act (Oct. 26, 2001), the
    Secretary (of the Treasury) shall prescribe regulations that
    consider the extent to which the requirements imposed under this
    section (amending this section and enacting provisions set out as a
    note above) are commensurate with the size, location, and
    activities of the financial institutions to which such regulations
    apply.''
                                GRACE PERIOD
      Pub. L. 107-56, title III, Sec. 319(c), Oct. 26, 2001, 115 Stat.
    314, provided that: ''Financial institutions shall have 60 days
    from the date of enactment of this Act (Oct. 26, 2001) to comply
    with the provisions of section 5318(k) of title 31, United States
    Code, as added by this section.''
    ''FEDERAL FUNCTIONAL REGULATOR'' INCLUDES COMMODITY FUTURES TRADING
                                 COMMISSION
      Pub. L. 107-56, title III, Sec. 321(c), Oct. 26, 2001, 115 Stat.
    315, provided that: ''For purposes of this Act (probably should be
    ''title'', see Short Title of 2001 Amendment note set out under
    section 5301 of this title) and any amendment made by this Act to
    any other provision of law, the term 'Federal functional regulator'
    includes the Commodity Futures Trading Commission.''
        REPORTING OF SUSPICIOUS ACTIVITIES BY SECURITIES BROKERS AND
                     DEALERS; INVESTMENT COMPANY STUDY
      Pub. L. 107-56, title III, Sec. 356(a), (b), Oct. 26, 2001, 115
    Stat. 324, provided that:
      ''(a) Deadline for Suspicious Activity Reporting Requirements for
    Registered Brokers and Dealers. - The Secretary (of the Treasury),
    after consultation with the Securities and Exchange Commission and
    the Board of Governors of the Federal Reserve System, shall publish
    proposed regulations in the Federal Register before January 1,
    2002, requiring brokers and dealers registered with the Securities
    and Exchange Commission under the Securities Exchange Act of 1934
    (15 U.S.C. 78a et seq.) to submit suspicious activity reports under
    section 5318(g) of title 31, United States Code. Such regulations
    shall be published in final form not later than July 1, 2002.
      ''(b) Suspicious Activity Reporting Requirements For Futures
    Commission Merchants, Commodity Trading Advisors, and Commodity
    Pool Operators. - The Secretary, in consultation with the Commodity
    Futures Trading Commission, may prescribe regulations requiring
    futures commission merchants, commodity trading advisors, and
    commodity pool operators registered under the Commodity Exchange
    Act (7 U.S.C. 1 et seq.) to submit suspicious activity reports
    under section 5318(g) of title 31, United States Code.''
                                  REPORTS
      Section 403(b) of Pub. L. 103-325 provided that:
      ''(1) Reports required. - The Secretary of the Treasury shall
    submit an annual report to the Congress at the times required under
    paragraph (2) on the number of suspicious transactions reported to
    the officer or agency designated under section 5318(g)(4)(A) of
    title 31, United States Code, during the period covered by the
    report and the disposition of such reports.
      ''(2) Time for submitting reports. - The 1st report required
    under paragraph (1) shall be filed before the end of the 1-year
    period beginning on the date of enactment of the Money Laundering
    Suppression Act of 1994 (Sept. 23, 1994) and each subsequent report
    shall be filed within 90 days after the end of each of the 5
    calendar years which begin after such date of enactment.''
               DESIGNATION REQUIRED TO BE MADE EXPEDITIOUSLY
      Section 403(c) of Pub. L. 103-325 provided that: ''The initial
    designation of an officer or agency of the United States pursuant
    to the amendment made by subsection (a) (amending this section)
    shall be made before the end of the 180-day period beginning on the
    date of enactment of this Act (Sept. 23, 1994).''
         IMPROVEMENT OF IDENTIFICATION OF MONEY LAUNDERING SCHEMES
      Section 404 of Pub. L. 103-325 provided that:
      ''(a) Enhanced Training, Examinations, and Referrals by Banking
    Agencies. - Before the end of the 6-month period beginning on the
    date of enactment of this Act (Sept. 23, 1994), each appropriate
    Federal banking agency shall, in consultation with the Secretary of
    the Treasury and other appropriate law enforcement agencies -
        ''(1) review and enhance training and examination procedures to
      improve the identification of money laundering schemes involving
      depository institutions; and
        ''(2) review and enhance procedures for referring cases to any
      appropriate law enforcement agency.
      ''(b) Improved Reporting of Criminal Schemes by Law Enforcement
    Agencies. - The Secretary of the Treasury and each appropriate law
    enforcement agency shall provide, on a regular basis, information
    regarding money laundering schemes and activities involving
    depository institutions to each appropriate Federal banking agency
    in order to enhance each agency's ability to examine for and
    identify money laundering activity.
      ''(c) Report to Congress. - The Financial Institutions
    Examination Council shall submit a report on the progress made in
    carrying out subsection (a) and the usefulness of information
    received pursuant to subsection (b) to the Congress by the end of
    the 1-year period beginning on the date of enactment of this Act.
      ''(d) Definition. - For purposes of this section, 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).''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 5313, 5318A, 5321, 5322
    of this title; title 18 section 981.
 
-CITE-
    31 USC Sec. 5318A                                            01/22/02
 
-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE IV - MONEY
    CHAPTER 53 - MONETARY TRANSACTIONS
    SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS
         TRANSACTIONS
 
-HEAD-
    Sec. 5318A. Special measures for jurisdictions, financial
        institutions, or international transactions of primary money
        laundering concern
 
-STATUTE-
      (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, or class of transactions; 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, or class of transactions 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 both, 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;
            (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 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.
 
-SOURCE-
    (Added Pub. L. 107-56, title III, Sec. 311(a), Oct. 26, 2001, 115
    Stat. 298.)
 
-REFTEXT-
                             REFERENCES IN TEXT
      Section 3 of the Federal Deposit Insurance Act, referred to in
    subsec. (a)(4)(A), is classified to section 1813 of Title 12, Banks
    and Banking.
      Section 19(b)(1)(C) of the Federal Reserve Act, referred to in
    subsec. (e)(1)(C), is classified to section 461(b)(1)(C) of Title
    12, Banks and Banking.
      Section 509 of the Gramm-Leach-Bliley Act, referred to in subsec.
    (e)(2), is classified to section 6809 of Title 15, Commerce and
    Trade.
 
-MISC2-
                              TERMINATION DATE
      Amendments by title III of Pub. L. 107-56 to terminate effective
    on and after the first day of fiscal year 2005 if Congress enacts a
    joint resolution that such amendments no longer have the force of
    law, see section 303 of Pub. L. 107-56, set out as a Four-Year
    Congressional Review; Expedited Consideration note under section
    5311 of this title.
    ''FEDERAL FUNCTIONAL REGULATOR'' INCLUDES COMMODITY FUTURES TRADING
                                 COMMISSION
      For purposes of Pub. L. 107-56 and any amendment by Pub. L.
    107-56, the term ''Federal functional regulator'' includes the
    Commodity Futures Trading Commission, see section 321(c) of Pub. L.
    107-56, set out as a note under section 5318 of this title.
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 5318, 5321, 5322 of this
    title.
 

-CITE-
    31 USC Sec. 5321                                             01/22/02
 
-EXPCITE-
    TITLE 31 - MONEY AND FINANCE
    SUBTITLE IV - MONEY
    CHAPTER 53 - MONETARY TRANSACTIONS
    SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS
         TRANSACTIONS
 
-HEAD-
    Sec. 5321. Civil penalties
 
-STATUTE-
      (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 willfully violates
      or any person willfully causing any violation of any provision of
      section 5314.
        (B) Maximum amount limitation. - The amount of any civil money
      penalty imposed under subparagraph (A) shall not exceed -
          (i) in the case of violation of such section involving a
        transaction, the greater of -
            (I) the amount (not to exceed $100,000) of the transaction;
          or
            (II) $25,000; and
          (ii) in the case of violation of such section involving a
        failure to report the existence of an account or any
        identifying information required to be provided with respect to
        such account, the greater of -
            (I) an amount (not to exceed $100,000) equal to the balance
          in the account at the time of the violation; or
            (II) $25,000.
      (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 nonfinancial 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 imposed under
    section 5318A.
      (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) (FOOTNOTE 1) of section 5317 of this title or
    civil penalty under subsection (a)(2) of this section.
       (FOOTNOTE 1) So in original.  Section 5317 does not contain a
    subsec. (d).
      (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).
 
-SOURCE-
    (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 999; Pub. L. 98-473,
    title II, Sec. 901(a), Oct. 12, 1984, 98 Stat. 2135; Pub. L.
    99-570, title I, Sec. 1356(c)(1), 1357(a)-(f), (h), Oct. 27, 1986,
    100 Stat. 3207-24 - 3207-26; Pub. L. 100-690, title VI, Sec.
    6185(g)(2), Nov. 18, 1988, 102 Stat. 4357; Pub. L. 102-550, title
    XV, Sec. 1511(b), 1525(b), 1535(a)(2), 1561(a), Oct. 28, 1992, 106
    Stat. 4057, 4065, 4066, 4071; Pub. L. 103-322, title XXXIII, Sec.
    330017(a)(1), Sept. 13, 1994, 108 Stat. 2149; Pub. L. 103-325,
    title IV, Sec. 406, 411(b), 413(a)(1), Sept. 23, 1994, 108 Stat.
    2247, 2253, 2254; Pub. L. 104-208, div.  A, title II, Sec. 2223(3),
    Sept. 30, 1996, 110 Stat. 3009-415; Pub. L. 107-56, title III, Sec.
    353(a), 363(a), 365(c)(2)(B)(i), Oct. 26, 2001, 115 Stat. 322, 332,
    335.)
 
-MISC1-
 
                       Historical and Revision Notes
    ---------------------------------------------------------------------
    Revised Section        Source (U.S. Code)     Source (Statutes at
                                                   Large)
    ---------------------------------------------------------------------
    5321(a)(1)             31:1054(b)(last        Oct. 26, 1970, Pub.
                            sentence related to    L. 91-508, Sec.
                            civil penalties).      205(b)(last
                                                   sentence related to
                                                   civil penalties),
                                                   207, 233, 234, 84
                                                   Stat. 1120, 1123.
                           31:1056(a).
    5321(a)(2)             31:1103.
    5321(a)(3)             31:1143(a),            Sept. 21, 1973, Pub.
                            (b)(words after        L. 93-110, Sec.
                            last comma).           203(a), (b)(words
                                                   after last comma),
                                                   87 Stat. 353.
    5321(b)                31:1056(b).
    5321(c)                31:1104.
                     -------------------------------
      In subsection (a)(1), the words ''or a regulation prescribed
    under this subchapter'' are added because of the restatement.  The
    words ''(except section 5315 of this title or a regulation
    prescribed under section 5315)'' are added because 31:1141-1143 was
    not enacted as a part of the Currency and Foreign Transactions
    Reporting Act that is restated in this subchapter.  The words ''is
    liable to the United States Government for'' are substituted for
    ''the Secretary may assess upon'' in 31:1056(a) for consistency in
    the revised title and with other titles of the United States Code.
    The words ''the purposes of both civil and criminal penalties for''
    in 31:1054(b)(last sentence)(related to civil penalties) are
    omitted, and the words ''or a regulation prescribed under section
    5318(2)'' are added, because of the restatement.  The words ''the
    violation continues'' are added for consistency in the revised
    title and with other titles of the Code. The word ''separate''
    before ''office'' is omitted as surplus.
      In subsection (a)(2), the word ''impose'' is substituted for
    ''assess'' for consistency in the revised title and with other
    titles of the Code. The word ''additional'' is substituted for
    31:1103(last sentence words before last comma) to eliminate
    unnecessary words.  The words ''or a regulation prescribed under
    section 5316'' are added because of the restatement.  The words
    ''amount of this'', ''to be filed'', and ''actually'' are omitted
    as surplus.
      Subsection (a)(3) is substituted for 31:1143(a) and (b)(words
    after last comma) for clarity and consistency and because of the
    restatement.
      In subsection (b), the words ''in the discretion of'', ''in the
    name of the United States'', and ''of any person'' are omitted as
    surplus.
      In subsection (c), the words ''in his discretion'' and ''upon
    such terms and conditions as he deems reasonable and just'' are
    omitted as surplus.  The word ''civil'' is added for clarity.
 
-REFTEXT-
                             REFERENCES IN TEXT
      Sections 3 and 21 of the Federal Deposit Insurance Act, referred
    to in subsecs. (a)(1) and (e)(1), are classified to sections 1813
    and 1829b, respectively, of Title 12, Banks and Banking.
      Section 123 of Public Law 91-508, referred to in subsec. (a)(1),
    is classified to section 1953 of Title 12, Banks and Banking.
 
-COD-
                                CODIFICATION
      Another section 365(c) of Pub. L. 107-56 amended the table of
    sections at the beginning of this chapter.
 
-MISC3-
                                 AMENDMENTS
      2001 - Subsec. (a)(1). Pub. L. 107-56, Sec. 353(a),
    365(c)(2)(B)(i), inserted ''or nonfinancial trade or business''
    after ''financial institution'' in two places, ''or order issued''
    after ''subchapter or a regulation prescribed'', and '', or
    willfully violating a regulation prescribed under section 21 of the
    Federal Deposit Insurance Act or section 123 of Public Law
    91-508,'' after ''sections 5314 and 5315)''.
      Subsec. (a)(6). Pub. L. 107-56, Sec. 365(c)(2)(B)(i), inserted
    ''or nonfinancial trade or business'' after ''financial
    institution'' wherever appearing.
      Subsec. (a)(7). Pub. L. 107-56, Sec. 363(a), added par. (7).
      1996 - Subsec. (a)(7). Pub. L. 104-208 struck out par. (7) which
    read as follows:
      ''(7) Financial institution identification violations. -
        ''(A) Penalty authorized. - The Secretary may impose a civil
      money penalty on any person who willfully violates any provision
      of section 5327 or any regulation prescribed under such section.
        ''(B) Maximum amount limitation. - The amount of any civil
      money penalty imposed under subparagraph (A) shall not exceed
      $10,000 per day for each day during which a report remains
      unfiled or a report containing a material omission or
      misstatement of fact remains uncorrected.''
      1994 - Subsec. (a)(4)(A). Pub. L. 103-325, Sec. 411(b), struck
    out ''willfully'' before ''violates''.
      Subsec. (a)(5)(A). Pub. L. 103-322, Sec. 330017(a)(1) and Pub. L.
    103-325, Sec. 413(a)(1), amended subpar. (A) identically, inserting
    ''any violation of'' after ''causing''.
      Subsec. (e). Pub. L. 103-325, Sec. 406, added subsec. (e).
      1992 - Subsec. (a)(4)(C). Pub. L. 102-550, Sec. 1525(b), struck
    out ''under section 5317(d)'' after ''forfeiture to the United
    States''.
      Subsec. (a)(5)(A). Pub. L. 102-550, Sec. 1535(a)(2), inserted
    ''or any person willfully causing'' after ''willfully violates''.
      Subsec. (a)(6). Pub. L. 102-550, Sec. 1561(a), amended par. (6)
    generally.  Prior to amendment, par. (6) read as follows:
    ''Negligence. - The Secretary of the Treasury may impose a civil
    money penalty of not more than $500 on any financial institution
    which negligently violates any provision of this subchapter or any
    regulation prescribed under this subchapter.''
      Subsec. (a)(7). Pub. L. 102-550, Sec. 1511(b), added par. (7).
      1988 - Subsec. (a)(1). Pub. L. 100-690 inserted ''(if any)''
    after ''transaction''.
      1986 - Subsec. (a)(1). Pub. L. 99-570, Sec. 1356(c)(1), 1357(b),
    substituted ''sections 5314 and 5315'' for ''section 5315'' in two
    places, substituted ''5318(a)(2)'' for ''5318(2)'' in two places,
    and substituted ''the greater of the amount (not to exceed
    $100,000) involved in the transaction or $25,000'' for ''$10,000''.
      Subsec. (a)(4). Pub. L. 99-570, Sec. 1357(a), added par. (4).
      Subsec. (a)(5). Pub. L. 99-570, Sec. 1357(c), added par. (5).
      Subsec. (a)(6). Pub. L. 99-570, Sec. 1357(d), added par. (6).
      Subsec. (b). Pub. L. 99-570, Sec. 1357(e), amended subsec. (b)
    generally.  Prior to amendment, subsec. (b) read as follows: ''The
    Secretary may bring a civil action to recover a civil penalty under
    subsection (a)(1) or (2) of this section that has not been paid.''
      Subsec. (c). Pub. L. 99-570, Sec. 1357(h), substituted
    ''subsection (c) or (d) of section 5317'' for ''section 5317(b)''.
      Subsec. (d). Pub. L. 99-570, Sec. 1357(f), added subsec. (d).
      1984 - Subsec. (a)(1). Pub. L. 98-473 substituted ''$10,000'' for
    ''$1,000''.
                     TERMINATION DATE OF 2001 AMENDMENT
      Amendments by title III of Pub. L. 107-56 to terminate effective
    on and after the first day of fiscal year 2005 if Congress enacts a
    joint resolution that such amendments no longer have the force of
    law, see section 303 of Pub. L. 107-56, set out as a Four-Year
    Congressional Review; Expedited Consideration note under section
    5311 of this title.
                      EFFECTIVE DATE OF 1992 AMENDMENT
      Section 1561(b) of Pub. L. 102-550 provided that: ''The amendment
    made by subsection (a) (amending this section) shall apply with
    respect to violations committed after the date of the enactment of
    this Act (Oct. 28, 1992).''
                      EFFECTIVE DATE OF 1986 AMENDMENT
      Amendment by section 1357(a) of Pub. L. 99-570, applicable with
    respect to violations committed after the end of the 3-month period
    beginning Oct. 27, 1986, see section 1364(b) of Pub. L. 99-570, set
    out as a note under section 5317 of this title.
      Section 1364(c) of Pub. L. 99-570 provided that: ''The amendments
    made by section 1357 (other than subsection (a) of such section)
    (amending sections 5321 and 5322 of this title) shall apply with
    respect to violations committed after the date of the enactment of
    this Act (Oct. 27, 1986).''
 
-SECREF-
                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 5330 of this title; title
    12 section 1829b.
 

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