US (United States) Code. Title 31. Subtitle IV: Money. Chapter 53: Monetary transactions

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Money and finance

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-CITE-

31 USC CHAPTER 53 - MONETARY TRANSACTIONS 01/06/03

-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 Repealed.]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, Secs. 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, Secs. 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, Secs. 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.

-End-

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31 USC SUBCHAPTER I - CREDIT AND MONETARY EXPANSION 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER I - CREDIT AND MONETARY EXPANSION

-HEAD-

SUBCHAPTER I - CREDIT AND MONETARY EXPANSION

-End-

-CITE-

31 USC Sec. 5301 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER I - CREDIT AND MONETARY EXPANSION

-HEAD-

Sec. 5301. Buying obligations of the United States Government

-STATUTE-

(a) The President may direct the Secretary of the Treasury to

make an agreement with the Federal reserve banks and the Board of

Governors of the Federal Reserve System when the President decides

that the foreign commerce of the United States is affected

adversely because -

(1) the value of coins and currency of a foreign country

compared to the present standard value of gold is depreciating;

(2) action is necessary to regulate and maintain the parity of

United States coins and currency;

(3) an economic emergency requires an expansion of credit; or

(4) an expansion of credit is necessary so that the United

States Government and the governments of other countries can

stabilize the value of coins and currencies of a country.

(b) Under an agreement under subsection (a) of this section, the

Board shall permit the banks (and the Board is authorized to permit

the banks notwithstanding another law) to agree that the banks will

-

(1) conduct through each entire specified period open market

operations in obligations of the United States Government or

corporations in which the Government is the majority stockholder;

and

(2) buy directly and hold an additional $3,000,000,000 of

obligations of the Government for each agreed period, unless the

Secretary consents to the sale of the obligations before the end

of the period.

(c) With the approval of the Secretary, the Board may require

Federal reserve banks to take action the Secretary and Board

consider necessary to prevent unreasonable credit expansion.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 993.)

-MISC1-

HISTORICAL AND REVISION NOTES

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Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

5301(a), 31:821(less May 12, 1933, ch. 25, Sec.

(b) (a)(last sentence)). 43(less (b)(1)(last

sentence)), 48 Stat. 51; Jan.

30, 1934, ch. 6, Sec. 12, 48

Stat. 342; Jan. 23, 1937, ch.

5, Sec. 2, 50 Stat. 4; July 6,

1939, ch. 260, Sec. 3, 53

Stat. 998; June 30, 1941, ch.

265, Sec. 2, 55 Stat. 396;

June 12, 1945, ch. 186, Sec.

4, 59 Stat. 238; Mar. 18,

1968, Pub. L. 90-269, Sec. 9,

82 Stat. 50.

5301(c) 31:821(a)(last

sentence).

--------------------------------------------------------------------

In subsection (a), before clause (1), the text of

31:821(b)(matter before (1)) is omitted as obsolete because clause

(1) is omitted as executed, and clause (2) is omitted as expired.

The text of 31:821(b)(matter after (2)) is omitted as obsolete

because silver is no longer coined. The words "in his discretion"

and "several" are omitted as surplus. The words "Board of Governors

of the Federal Reserve System" are substituted for "Federal Reserve

Board" because of 12:241. The words "upon investigation" are

omitted as surplus. In clause (1), the word "foreign" is

substituted for "of any other government or governments" to

eliminate unnecessary words. The words "coins and" are added for

consistency. In clause (2), the words "United States coins and

currency" are substituted for "currency issues of the United

States" for consistency. In clause (4), the words "so that the

United States Government and the governments of other countries can

stabilize" are substituted for "to secure by international

agreement a stabilization" for clarity. The words "at proper

levels" are omitted as surplus.

In subsection (b), before clause (1), the words "(and the Board

is authorized to permit the banks notwithstanding another law)" are

substituted for "notwithstanding any provisions of law or rules and

regulations to the contrary" for clarity. In clause (1), the words

"pursuant to existing law" are omitted as surplus. The words

"through each entire" are substituted for "throughout" for clarity.

In clause (2), the words "in portfolio", "or periods of time

Treasury bills or other" and "in an aggregate sum of" are omitted

as surplus.

SHORT TITLE OF 2001 AMENDMENT

Pub. L. 107-56, title III, Sec. 301, Oct. 26, 2001, 115 Stat.

296, provided that: "This title [enacting sections 310, 5318A,

5331, and 5332 of this title, section 1681v of Title 15, Commerce

and Trade, and section 262p-4r of Title 22, Foreign Relations and

Intercourse, amending sections 5311, 5312, 5317, 5318, 5319, 5321,

5322, 5324, 5326, 5328, 5330, and 5341 of this title, sections 248,

1828, 1829b, 1842, 1953, 3412, 3414, and 3420 of Title 12, Banks

and Banking, section 1681u of Title 15, sections 470 to 474, 476 to

484, 493, 981 to 983, 1029, 1956, and 1960 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, renumbering former section 310 of this title as section

311, and enacting provisions set out as notes under sections 310,

5311, 5313, 5314, 5318, 5331, and 5332 of this title, sections

1828, 1829b, and 1842 of Title 12, and section 983 of Title 18] may

be cited as the 'International Money Laundering Abatement and

Financial Anti-Terrorism Act of 2001'."

SHORT TITLE OF 1998 AMENDMENT

Pub. L. 105-310, Sec. 1, Oct. 30, 1998, 112 Stat. 2941, provided

that: "This Act [enacting subchapter III of this chapter and

provisions set out as a note under section 5342 of this title] may

be cited as the 'Money Laundering and Financial Crimes Strategy Act

of 1998'."

SHORT TITLE OF 1994 AMENDMENT

Pub. L. 103-325, title IV, Sec. 401, Sept. 23, 1994, 108 Stat.

2243, provided that: "This title [enacting section 5330 of this

title, amending sections 5312, 5313, 5318, 5321, 5322, and 5324 of

this title, sections 93, 1464, 1772d, 1786, 1818, and 1821 of Title

12, Banks and Banking, and sections 984, 986, 1956, 1957, and 1960

of Title 18, Crimes and Criminal Procedure, and enacting provisions

set out as notes under sections 5311, 5313, 5318, and 5330 of this

title] may be cited as the 'Money Laundering Suppression Act of

1994'."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5304 of this title.

-End-

-CITE-

31 USC Sec. 5302 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER I - CREDIT AND MONETARY EXPANSION

-HEAD-

Sec. 5302. Stabilizing exchange rates and arrangements

-STATUTE-

(a)(1) The Department of the Treasury has a stabilization fund.

The fund is available to carry out this section, section 18 of the

Bretton Woods Agreement Act (22 U.S.C. 286e-3), and section 3 of

the Special Drawing Rights Act (22 U.S.C. 286o), and for investing

in obligations of the United States Government those amounts in the

fund the Secretary of the Treasury, with the approval of the

President, decides are not required at the time to carry out this

section. Proceeds of sales and investments, earnings, and interest

shall be paid into the fund and are available to carry out this

section. However, the fund is not available to pay administrative

expenses.

(2) Subject to approval by the President, the fund is under the

exclusive control of the Secretary, and may not be used in a way

that direct control and custody pass from the President and the

Secretary. Decisions of the Secretary are final and may not be

reviewed by another officer or employee of the Government.

(b) Consistent with the obligations of the Government in the

International Monetary Fund on orderly exchange arrangements and a

stable system of exchange rates, the Secretary or an agency

designated by the Secretary, with the approval of the President,

may deal in gold, foreign exchange, and other instruments of credit

and securities the Secretary considers necessary. However, a loan

or credit to a foreign entity or government of a foreign country

may be made for more than 6 months in any 12-month period only if

the President gives Congress a written statement that unique or

emergency circumstances require the loan or credit be for more than

6 months.

(c)(1) By the 30th day after the end of each month, the Secretary

shall give 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 a detailed financial statement on

the stabilization fund showing all agreements made or renewed, all

transactions occurring during the month, and all projected

liabilities.

(2) The Secretary shall report each year to the President and

Congress on the operation of the fund.

(d) A repayment of any part of the first subscription payment of

the Government to the International Monetary Fund, previously paid

from the stabilization fund, shall be deposited in the Treasury as

a miscellaneous receipt.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 994.)

-MISC1-

HISTORICAL AND REVISION NOTES

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Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

5302(a) 31:822a(b)(1). Jan. 30, 1934, ch. 6, Sec.

10(a), (b)(1), (c), 48 Stat.

341, 342; Jan. 23, 1937, ch.

5, Sec. 1, 50 Stat. 4; July 6,

1939, ch. 260, Secs. 1, 2, 53

Stat. 998; June 30, 1941, ch.

265, Sec. 1, 55 Stat. 395;

Apr. 29, 1943, ch. 76, 57

Stat. 68; July 31, 1945, ch.

339, Sec. 7(a), 59 Stat. 514;

Dec. 30, 1970, Pub. L. 91-599,

Secs. 41, 42, 84 Stat. 1659;

Oct. 19, 1976, Pub. L. 94-564,

Sec. 7, 90 Stat. 2661; Oct.

28, 1977, Pub. L. 95-147, Sec.

4(b), 91 Stat. 1229; Nov. 8,

1978, Pub. L. 95-612, Secs. 1,

6, 92 Stat. 3091, 3092.

5302(b) 31:822a(a)(1st

sentence).

5302(c)( 31:822a(b)(2). Jan. 30, 1934, ch. 6, 48 Stat.

1) 337, Sec. 10(b)(2); added Nov.

8, 1978, Pub. L. 95-612, Sec.

6, 92 Stat. 3092.

5302(c)( 31:822a(a)(last

2) sentence).

5302(d) 31:822a(c).

--------------------------------------------------------------------

In subsection (a)(1), the words "The Department of the Treasury

has a stabilization fund" are substituted for "there is

appropriated, out of the receipts which are directed to be covered

into the Treasury under section 408b of this title, the sum of

$2,000,000,000, which sum when available shall be deposited in the

United States Treasury in a stabilization fund" because the fund

has been established. The words "(hereinafter called the 'fund')"

are omitted as unnecessary because of the restatement. The words

"To enable the Secretary of the Treasury" and "The fund shall be

available for expenditure, under the direction of the Secretary of

the Treasury and in his discretion, for any purpose in connection

with carrying out the provisions of this section" are omitted as

surplus. The words "section 18 of the Bretton Woods Agreement Act

(22 U.S.C. 286e-3), and section 3 of the Special Drawing Rights Act

(22 U.S.C. 286o)" are added for clarity. The words "and

reinvestment" and "direct" are omitted as surplus. The word

"Government" is added for consistency. The words "accruing under

the operations of this section" are omitted as surplus. The words

"to carry out this section" after "are available" are substituted

for "for the purposes of the fund" for consistency.

In subsection (b), the words "directly . . . through" and "for

the account of the fund established in this section" are omitted as

surplus. The words "government of a foreign country" are

substituted for "foreign government" for consistency in the revised

title and with other titles of the United States Code. The words

"by or through such fund" are omitted as surplus.

In subsection (c)(1), the word "calendar" is omitted as surplus.

The words "beginning after the effective date of this paragraph"

are omitted as executed. The words "to occur" are omitted as

surplus.

In subsection (d), the words "any part of the first subscription

payment of the Government to the International Monetary Fund,

previously paid from the stabilization fund" are substituted for

31:822a(c)(words before semicolon) and "thereof" for clarity

because the payment has been made.

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee on Banking and

Financial Services of House of Representatives by section 1(a) of

Pub. L. 104-14, set out as a note preceding section 21 of Title 2,

The Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-MISC2-

MEXICAN DEBT DISCLOSURE

Pub. L. 104-6, title IV, Apr. 10, 1995, 109 Stat. 89, provided

that:

"SEC. 401. SHORT TITLE.

"This title may be cited as the 'Mexican Debt Disclosure Act of

1995'.

"SEC. 402. FINDINGS.

"The Congress finds that -

"(1) Mexico is an important neighbor and trading partner of the

United States;

"(2) on January 31, 1995, the President approved a program of

assistance to Mexico, in the form of swap facilities and

securities guarantees in the amount of $20,000,000,000, using the

exchange stabilization fund;

"(3) the program of assistance involves the participation of

the Board of Governors of the Federal Reserve System, the

International Monetary Fund, the Bank for International

Settlements, the International Bank for Reconstruction and

Development, the Inter-American Development Bank, the Bank of

Canada, and several Latin American countries;

"(4) the involvement of the exchange stabilization fund and the

Board of Governors of the Federal Reserve System means that

United States taxpayer funds will be used in the assistance

effort to Mexico;

"(5) assistance provided by the International Monetary Fund,

the International Bank for Reconstruction and Development, and

the Inter-American Development Bank may require additional United

States contributions of taxpayer funds to those entities;

"(6) the immediate use of taxpayer funds and the potential

requirement for additional future United States contributions of

taxpayer funds necessitates congressional oversight of the

disbursement of funds; and

"(7) the efficacy of the assistance to Mexico is contingent on

the pursuit of sound economic policy by the Government of Mexico.

"SEC. 403. PRESIDENTIAL REPORTS.

"(a) Reporting Requirement. - Not later than June 30, 1995, and

every 6 months thereafter, the President shall transmit to the

appropriate congressional committees a report concerning all

guarantees issued to, and short-term and long-term currency swaps

with, the Government of Mexico by the United States Government,

including the Board of Governors of the Federal Reserve System.

"(b) Contents of Reports. - Each report described in subsection

(a) shall contain a description of the following actions taken, or

economic situations existing, during the preceding 6-month period

or, in the case of the initial report, during the period beginning

on the date of enactment of this Act [Apr. 10, 1995]:

"(1) Changes in wage, price, and credit controls in the Mexican

economy.

"(2) Changes in taxation policy of the Government of Mexico.

"(3) Specific actions taken by the Government of Mexico to

further privatize the economy of Mexico.

"(4) Actions taken by the Government of Mexico in the

development of regulatory policy that significantly affected the

performance of the Mexican economy.

"(5) Consultations concerning the program approved by the

President, including advice on economic, monetary, and fiscal

policy, held between the Government of Mexico and the Secretary

of the Treasury (including any designee of the Secretary) and the

conclusions resulting from any periodic reviews undertaken by the

International Monetary Fund pursuant to the Fund's loan

agreements with Mexico.

"(6) All outstanding loans, credits, and guarantees provided to

the Government of Mexico, by the United States Government,

including the Board of Governors of the Federal Reserve System,

set forth by category of financing.

"(7) The progress the Government of Mexico has made in

stabilizing the peso and establishing an independent central bank

or currency board.

"(c) Summary of Treasury Department Reports. - In addition to the

information required to be included under subsection (b), each

report required under this section shall contain a summary of the

information contained in all reports submitted under section 404

during the period covered by the report required under this

section.

"SEC. 404. REPORTS BY THE SECRETARY OF THE TREASURY.

"(a) Reporting Requirement. - Beginning on the last day of the

first month which begins after the date of enactment of this Act

[Apr. 10, 1995], and on the last day of every month thereafter, the

Secretary of the Treasury shall submit to the appropriate

congressional committees a report concerning all guarantees issued

to, and short-term and long-term currency swaps with, the

Government of Mexico by the United States Government, including the

Board of Governors of the Federal Reserve System.

"(b) Contents of Reports. - Each report described in subsection

(a) shall include a description of the following actions taken, or

economic situations existing, during the month in which the report

is required to be submitted:

"(1) The current condition of the Mexican economy.

"(2) The reserve positions of the central bank of Mexico and

data relating to the functioning of Mexican monetary policy.

"(3) The amount of any funds disbursed from the exchange

stabilization fund pursuant to the program of assistance to the

Government of Mexico approved by the President on January 31,

1995.

"(4) The amount of any funds disbursed by the Board of

Governors of the Federal Reserve System pursuant to the program

of assistance referred to in paragraph (3).

"(5) Financial transactions, both inside and outside of Mexico,

made during the reporting period involving funds disbursed to

Mexico from the exchange stabilization fund or proceeds of

Mexican Government securities guaranteed by the exchange

stabilization fund.

"(6) All outstanding guarantees issued to, and short-term and

medium-term currency swaps with, the Government of Mexico by the

Secretary of the Treasury, set forth by category of financing.

"(7) All outstanding currency swaps with the central bank of

Mexico by the Board of Governors of the Federal Reserve System

and the rationale for, and any expected costs of, such

transactions.

"(8) The amount of payments made by customers of Mexican

petroleum companies that have been deposited in the account at

the Federal Reserve Bank of New York established to ensure

repayment of any payment by the United States Government,

including the Board of Governors of the Federal Reserve System,

in connection with any guarantee issued to, or any swap with, the

Government of Mexico.

"(9) Any setoff by the Federal Reserve Bank of New York against

funds in the account described in paragraph (8).

"(10) To the extent such information is available, once there

has been a setoff by the Federal Reserve Bank of New York, any

interruption in deliveries of petroleum products to existing

customers whose payments were setoff.

"(11) The interest rates and fees charged to compensate the

Secretary of the Treasury for the risk of providing financing.

"SEC. 405. TERMINATION OF REPORTING REQUIREMENTS.

"The requirements of sections 403 and 404 shall terminate on the

date that the Government of Mexico has paid all obligations with

respect to swap facilities and guarantees of securities made

available under the program approved by the President on January

31, 1995.

"SEC. 406. PRESIDENTIAL CERTIFICATION REGARDING SWAP OF

CURRENCIES TO MEXICO THROUGH EXCHANGE STABILIZATION FUND OR

FEDERAL RESERVE.

"(a) In General. - Notwithstanding any other provision of law, no

loan, credit, guarantee, or arrangement for a swap of currencies to

Mexico through the exchange stabilization fund or by the Board of

Governors of the Federal Reserve System may be extended or (if

already extended) further utilized, unless and until the President

submits to the appropriate congressional committees a certification

that -

"(1) there is no projected cost (as defined in the Credit

Reform Act of 1990 [probably means the Federal Credit Reform Act

of 1990, 2 U.S.C. 661 et seq.]) to the United States from the

proposed loan, credit, guarantee, or currency swap;

"(2) all loans, credits, guarantees, and currency swaps are

adequately backed to ensure that all United States funds are

repaid;

"(3) the Government of Mexico is making progress in ensuring an

independent central bank or an independent currency control

mechanism;

"(4) Mexico has in effect a significant economic reform effort;

and

"(5) the President has provided the documents described in

paragraphs (1) through (28) of House Resolution 80, adopted March

1, 1995.

"(b) Treatment of Classified or Privileged Material. - For

purposes of the certification required by subsection (a)(5), the

President shall specify, in the case of any document that is

classified or subject to applicable privileges, that, while such

document may not have been produced to the House of

Representatives, in lieu thereof it has been produced to specified

Members of Congress or their designees by mutual agreement among

the President, the Speaker of the House, and the chairmen and

ranking members of the Committee on Banking and Financial Services

[now Committee on Financial Services], the Committee on

International Relations, and the Permanent Select Committee on

Intelligence of the House.

"SEC. 407. DEFINITIONS.

"For purposes of this title, the following definitions shall

apply:

"(1) Appropriate congressional committees. - The term

'appropriate congressional committees' means the Committees on

International Relations and Banking and Financial Services [now

Committee on Financial Services] of the House of Representatives,

the Committees on Foreign Relations and Banking, Housing, and

Urban Affairs of the Senate, and the Committees on Appropriations

of the House of Representatives and the Senate.

"(2) Exchange stabilization fund. - The term 'exchange

stabilization fund' means the stabilization fund referred to in

section 5302(a)(1) of title 31, United States Code."

-EXEC-

CERTIFICATION REGARDING USE OF EXCHANGE STABILIZATION FUND AND

FEDERAL RESERVE IN RELATION TO ECONOMIC CRISIS IN MEXICO

Memorandum of President of the United States, June 29, 1995, 60

F.R. 35113, provided:

Memorandum for the Secretary of the Treasury

On January 31, 1995, I approved a program of assistance to

Mexico, in the form of swap facilities and securities guarantees in

an amount not to exceed $20 billion, using the Exchange

Stabilization Fund (the "ESF program").

By virtue of the authority vested in me by the Constitution and

the laws of the United States, including section 301 of title 3,

United States Code, and section 406 of the Emergency Supplemental

Appropriations and Rescissions for the Department of Defense to

Preserve and Enhance Military Readiness Act of 1995 (Public Law

104-6) [set out above], I hereby certify that:

(1) There is no projected cost (as defined in the Federal Credit

Reform Act of 1990 [2 U.S.C. 661 et seq.]) to the United States

from the proposed swap transaction.

(2) All loans, credits, guarantees, and currency swaps to Mexico

from the Exchange Stabilization Fund or the Federal Reserve System

are adequately backed to ensure that all United States funds are

repaid.

(3) The Government of Mexico is making progress in ensuring an

independent central bank.

(4) Mexico has in effect a significant economic reform effort.

(5) The Executive Branch has provided the documents requested by

House Resolution 80 adopted March 1, 1995, and described in

paragraphs (1) through (28) of that Resolution. All documents

identified as responsive to the Resolution have been provided to

the entire House of Representatives. Pursuant to the terms of the

Resolution, the Executive Branch has not provided those documents

as to which the Executive Branch has informed the House that it

would be inconsistent with the public interest to provide the

documents to the House. Pursuant to arrangements for safekeeping of

classified materials in House facilities, classified documents have

been provided to the House by making them available either at

designated, secure House facilities or at Executive Branch

facilities. Each agency, including the Federal Reserve Board, has

advised the House of the procedures employed by that agency to

provide the documents requested by House Resolution 80.

I have been informed that the Board of Governors of the Federal

Reserve System has provided the documents requested by House

Resolution 80 and described in paragraphs (1) through (28) of that

Resolution.

I hereby delegate to you the reporting requirement contained in

section 406 of Public Law 104-6 [set out above]. You are authorized

and requested to report this certification immediately to the

Speaker of the House and appropriate congressional committees, as

defined in section 407 of Public Law 104-6 [set out above].

I also hereby delegate to you the reporting requirement contained

in section 403 of Public Law 104-6 [set out above].

You are authorized and directed to publish this memorandum in the

Federal Register.

William J. Clinton.

Prior certifications were contained in the following:

Memorandum of President of the United States, May 17, 1995, 60

F.R. 27395.

Memorandum of President of the United States, Apr. 14, 1995, 60

F.R. 19485.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5304 of this title; title

22 sections 262r-3, 286e-3, 286e-7, 286o, 5411.

-End-

-CITE-

31 USC Sec. 5303 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER I - CREDIT AND MONETARY EXPANSION

-HEAD-

Sec. 5303. Reserved coins and currencies of foreign countries

-STATUTE-

An agency may use coins and currencies of a foreign country the

United States Government holds that are or may be reserved for a

specific program or activity of an agency. The agency shall

reimburse the Treasury from appropriations and shall replace the

coins and currencies when they are needed for the program or

activity for which they were reserved originally.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 994.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

5303 31:938. Oct. 15, 1966, Pub. L. 89-677,

80 Stat. 955.

--------------------------------------------------------------------

The word "Federal" is omitted as unnecessary because of the

definition of "agency" in section 101 of the revised title. The

words "coins and" and "Government" are added for consistency. The

words "or set aside" and "of the Government" are omitted as

surplus. The words "The agency shall reimburse . . . shall replace"

are substituted for "except (1) that reimbursement shall be made .

. . (2) . . . shall be replaced" for clarity. The words "applicable

. . . of the agency concerned" are omitted as surplus. The words

"program or activity" are substituted for "purpose" for clarity and

consistency.

-End-

-CITE-

31 USC Sec. 5304 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER I - CREDIT AND MONETARY EXPANSION

-HEAD-

Sec. 5304. Regulations

-STATUTE-

With the approval of the President, the Secretary of the Treasury

may prescribe regulations -

(1) to carry out section 5301 of this title; and

(2) the Secretary considers necessary to carry out section 5302

of this title.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 994.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

5304 31:822. May 12, 1933, ch. 25, Sec. 44,

48 Stat. 53.

31:822b. Jan. 30, 1934, ch. 6, Sec. 11,

48 Stat. 342.

--------------------------------------------------------------------

Before clause (1), the words "prescribe regulations" are

substituted for "make and promulgate rules and regulations" in

31:822 and "issue . . . such rules and regulations" in 31:822b for

consistency. In clause (1), the words "to carry out" are

substituted for "covering any action taken or to be taken by the

President under" in 31:822 to eliminate unnecessary words. In

clause (2), the words "or proper" in 31:822b and "the purposes of"

are omitted as surplus. Reference to 31:821 is omitted as obsolete

because silver is no longer coined. Reference to 31:824 is omitted

as obsolete because 31:824 is executed and is not part of the

revised title.

-End-

-CITE-

31 USC SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY

INSTRUMENTS TRANSACTIONS 01/06/03

-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, 3322;

title 22 section 2714.

-End-

-CITE-

31 USC Sec. 5311 01/06/03

-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 Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

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 (Secs. 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.

-End-

-CITE-

31 USC Sec. 5312 01/06/03

-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 (!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.

(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) (!2) Certain institutions included in definition. - The

term "financial institution" (as defined in subsection (a))

includes the following:

(A) (!3) Any futures commission merchant, commodity trading

advisor, or commodity pool operator registered, or required to

register, under the Commodity Exchange Act.

-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, Secs. 405, 409, Sept. 23,

1994, 108 Stat. 2247, 2252; Pub. L. 107-56, title III, Secs.

321(a), (b), 359(a), 365(c)(1), (2)(A), Oct. 26, 2001, 115 Stat.

315, 328, 335.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

5312(a)( 31:1052(a), (b), Oct. 26, 1970, Pub. L. 91-508,

1) (g), (i). Sec. 203(a)-(i), (l), 84 Stat.

1118.

5312(a)( 31:1052(e).

2)

5312(a)( 31:1052(l).

3)

5312(a)( 31:1052(c).

4)

5312(a)( 31:1052(d).

5)

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.

-MISC2-

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.

-FOOTNOTE-

(!1) So in original. This title does not contain a section 5333.

(!2) So in original. No par. (2) has been enacted.

(!3) So in original. No subpar. (B) has been enacted.

-End-

-CITE-

31 USC Sec. 5313 01/06/03

-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

(!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).

(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 Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

5313(a) 31:1081. Oct. 26, 1970, Pub. L. 91-508,

Secs. 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 (Secs. 601

et seq.) and II (Secs. 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.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

31 USC Sec. 5314 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS

TRANSACTIONS

-HEAD-

Sec. 5314. Records and reports on foreign financial agency

transactions

-STATUTE-

(a) Considering the need to avoid impeding or controlling the

export or import of monetary instruments and the need to avoid

burdening unreasonably a person making a transaction with a foreign

financial agency, the Secretary of the Treasury shall require a

resident or citizen of the United States or a person in, and doing

business in, the United States, to keep records, file reports, or

keep records and file reports, when the resident, citizen, or

person makes a transaction or maintains a relation for any person

with a foreign financial agency. The records and reports shall

contain the following information in the way and to the extent the

Secretary prescribes:

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

or relationship.

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

(3) the identity of real parties in interest.

(4) a description of the transaction.

(b) The Secretary may prescribe -

(1) a reasonable classification of persons subject to or exempt

from a requirement under this section or a regulation under this

section;

(2) a foreign country to which a requirement or a regulation

under this section applies if the Secretary decides applying the

requirement or regulation to all foreign countries is unnecessary

or undesirable;

(3) the magnitude of transactions subject to a requirement or a

regulation under this section;

(4) the kind of transaction subject to or exempt from a

requirement or a regulation under this section; and

(5) other matters the Secretary considers necessary to carry

out this section or a regulation under this section.

(c) A person shall be required to disclose a record required to

be kept under this section or under a regulation under this section

only as required by law.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 997.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

5314(a) 31:1121(a). Oct. 26, 1970, Pub. L. 91-508,

Secs. 241, 242, 84 Stat. 1124.

5314(b) 31:1122.

5314(c) 31:1121(b).

--------------------------------------------------------------------

In subsection (a), before clause (1), the words "currency or

other", "legitimately", "by regulation", and "directly or

indirectly" are omitted as surplus. The words "for any person" are

substituted for "on behalf of himself or another" to eliminate

unnecessary words. The words "and to the extent" are substituted

for "and in such detail" for clarity. In clauses (1) and (2), the

words "participants" and "participant" are substituted for

"parties" for consistency. In clause (2), the words "to the

transaction or relationship" are omitted as surplus. In clause (3),

the words "if one or more of the parties are not acting solely as

principals" are omitted as surplus. In clause (4), the words

"including the amounts of money, credit, or other property

involved" are omitted as surplus.

In subsection (b), the words "or a regulation under this section"

are added because of the restatement. The words "or does not apply"

and "uniform" in clause (2) are omitted as surplus. In clause (5),

the words "carry out" are substituted for "the application of" for

consistency.

In subsection (c), the words "produce or otherwise . . . the

contents of" and "in compliance with a subpena or summons duly

authorized and issued or . . . may otherwise be" are omitted as

surplus. The words "under a regulation" are added because of the

restatement.

COMPLIANCE WITH REPORTING REQUIREMENTS

Pub. L. 107-56, title III, Sec. 361(b), Oct. 26, 2001, 115 Stat.

332, provided that: "The Secretary of the Treasury shall study

methods for improving compliance with the reporting requirements

established in section 5314 of title 31, United States Code, and

shall submit a report on such study to the Congress by the end of

the 6-month period beginning on the date of enactment of this Act

[Oct. 26, 2001] and each 1-year period thereafter. The initial

report shall include historical data on compliance with such

reporting requirements."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5321 of this title.

-End-

-CITE-

31 USC Sec. 5315 01/06/03

-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 Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

5315(a) 31:1141. Sept. 21, 1973, Pub. L.

93-110, Secs. 201, 202, 87

Stat. 353.

5315(b), 31:1142.

(c)

--------------------------------------------------------------------

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.

-End-

-CITE-

31 USC Sec. 5316 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS

TRANSACTIONS

-HEAD-

Sec. 5316. Reports on exporting and importing monetary instruments

-STATUTE-

(a) Except as provided in subsection (c) of this section, a

person or an agent or bailee of the person shall file a report

under subsection (b) of this section when the person, agent, or

bailee knowingly -

(1) transports, is about to transport, or has transported,

monetary instruments of more than $10,000 at one time -

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

outside the United States; or

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

outside the United States; or

(2) receives monetary instruments of more than $10,000 at one

time transported into the United States from or through a place

outside the United States.

(b) A report under this section shall be filed at the time and

place the Secretary of the Treasury prescribes. The report shall

contain the following information to the extent the Secretary

prescribes:

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

acting.

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

instruments.

(3) when the monetary instruments are not legally and

beneficially owned by the person transporting the instruments, or

if the person transporting the instruments personally is not

going to use them, the identity of the person that gave the

instruments to the person transporting them, the identity of the

person who is to receive them, or both.

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

(5) additional information.

(c) This section or a regulation under this section does not

apply to a common carrier of passengers when a passenger possesses

a monetary instrument, or to a common carrier of goods if the

shipper does not declare the instrument.

(d) Cumulation of Closely Related Events. - The Secretary of the

Treasury may prescribe regulations under this section defining the

term "at one time" for purposes of subsection (a). Such regulations

may permit the cumulation of closely related events in order that

such events may collectively be considered to occur at one time for

the purposes of subsection (a).

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 998; Pub. L. 98-473,

title II, Sec. 901(c), Oct. 12, 1984, 98 Stat. 2135; Pub. L.

99-570, title I, Sec. 1358, title III, Sec. 3153, Oct. 27, 1986,

100 Stat. 3207-26, 3207-94.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

5316(a) 31:1101(a). Oct. 26, 1970, Pub. L. 91-508,

Sec. 231, 84 Stat. 1122.

5316(b) 31:1101(b).

5316(c) 31:1101(c).

--------------------------------------------------------------------

In subsection (a), before clause (1), the words "a person or an

agent or bailee of the person shall" are substituted for "whoever,

whether as principal, agent, or bailee, or by an agent or bailee"

for consistency. The words "or reports" are omitted as unnecessary

because of 1:1. In clause (2), the words "transported into the

United States" are substituted for "at the termination of their

transportation to the United States" for consistency and to

eliminate unnecessary words.

In subsection (b), before clause (1), the word "required" is

omitted as surplus. The word "prescribes" is substituted for

"require" for consistency in the revised title and with other

titles of the United States Code. The words "to the extent" are

substituted for "in such detail" for clarity. In clause (1), the

words "with respect to the monetary instruments transported" are

omitted as surplus. In clause (3), the words "or if the person

transporting the instruments personally is not going to use them"

are substituted for "or are transported for any purpose other than

the use in his own behalf of the person transporting the same" for

clarity.

In subsection (c), the words "or a regulation under this section"

are added because of the restatement.

AMENDMENTS

1986 - Subsec. (a)(1). Pub. L. 99-570, Sec. 1358(b), substituted

"transports, is about to transport, or has transported" for

"transports or has transported, or attempts to transport or have

transported".

Subsec. (a)(2). Pub. L. 99-570, Secs. 1358(c), 3153, made

identical amendments substituting "$10,000" for "$5,000".

Subsec. (d). Pub. L. 99-570, Sec. 1358(a), added subsec. (d).

1984 - Subsec. (a)(1). Pub. L. 98-473 inserted ", or attempts to

transport or have transported," after "transports or has

transported" and substituted "$10,000" for "$5,000".

EFFECTIVE DATE OF REGULATIONS PRESCRIBED UNDER 1986 AMENDMENT

Section 1364(d) of Pub. L. 99-570 provided that: "Any regulation

prescribed under the amendments made by section 1358 [amending this

section] shall apply with respect to transactions completed after

the effective date of such regulation."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5312, 5317, 5321, 5324,

5332 of this title; title 12 section 3420; title 19 section 1583.

-End-

-CITE-

31 USC Sec. 5317 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS

TRANSACTIONS

-HEAD-

Sec. 5317. Search and forfeiture of monetary instruments

-STATUTE-

(a) The Secretary of the Treasury may apply to a court of

competent jurisdiction for a search warrant when the Secretary

reasonably believes a monetary instrument is being transported and

a report on the instrument under section 5316 of this title has not

been filed or contains a material omission or misstatement. The

Secretary shall include a statement of information in support of

the warrant. On a showing of probable cause, the court may issue a

search warrant for a designated person or a designated or described

place or physical object. This subsection does not affect the

authority of the Secretary under another law.

(b) Searches at Border. - For purposes of ensuring compliance

with the requirements of section 5316, a customs officer may stop

and search, at the border and without a search warrant, any

vehicle, vessel, aircraft, or other conveyance, any envelope or

other container, and any person entering or departing from the

United States.

(c) Forfeiture. -

(1) Criminal forfeiture. -

(A) In general. - The court in imposing sentence for any

violation of section 5313, 5316, or 5324 of this title, or any

conspiracy to commit such violation, shall order the defendant

to forfeit all property, real or personal, involved in the

offense and any property traceable thereto.

(B) Procedure. - Forfeitures under this paragraph shall be

governed by the procedures established in section 413 of the

Controlled Substances Act.

(2) Civil forfeiture. - Any property involved in a violation of

section 5313, 5316, or 5324 of this title, or any conspiracy to

commit any such violation, and any property traceable to any such

violation or conspiracy, may be seized and forfeited to the

United States in accordance with the procedures governing civil

forfeitures in money laundering cases pursuant to section

981(a)(1)(A) of title 18, United States Code.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 998; Pub. L. 98-473,

title II, Sec. 901(d), Oct. 12, 1984, 98 Stat. 2135; Pub. L.

99-570, title I, Sec. 1355, Oct. 27, 1986, 100 Stat. 3207-22; Pub.

L. 102-550, title XV, Sec. 1525(c)(2), Oct. 28, 1992, 106 Stat.

4065; Pub. L. 107-56, title III, Secs. 365(b)(2)(B), 372(a), Oct.

26, 2001, 115 Stat. 335, 338.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

5317(a) 31:1105. Oct. 26, 1970, Pub. L. 91-508,

Secs. 232, 235, 84 Stat. 1123.

5317(b) 31:1102.

--------------------------------------------------------------------

In subsection (a), the words "The Secretary shall include a

statement of information in support of the warrant" are substituted

for 31:1105(a)(last sentence) to eliminate unnecessary words and

for consistency. The word "for" is substituted for "authorizing the

search of . . . all of the following" to eliminate unnecessary

words. The words "or more" are omitted as unnecessary because the

singular includes the plural under 1:1. The words "or premises",

"letters, parcels, packages, or other", and "vehicles" are omitted

as surplus.

In subsection (b), the words "either" and "the possession of" are

omitted as surplus. The words "United States Postal Service" are

substituted for "postal service" for consistency with title 39. The

words "or retained in" are omitted as surplus.

-REFTEXT-

REFERENCES IN TEXT

Section 413 of the Controlled Substances Act, referred to in

subsec. (c)(1)(B), is classified to section 853 of Title 21, Food

and Drugs.

-MISC2-

AMENDMENTS

2001 - Subsec. (c). Pub. L. 107-56, Sec. 372(a), inserted heading

and amended text of subsec. (c) generally. Prior to amendment, text

read as follows: "If a report required under section 5316 with

respect to any monetary instrument is not filed (or if filed,

contains a material omission or misstatement of fact), the

instrument and any interest in property, including a deposit in a

financial institution, traceable to such instrument may be seized

and forfeited to the United States Government. Any property, real

or personal, involved in a transaction or attempted transaction in

violation of section 5324(c), or any property traceable to such

property, may be seized and forfeited to the United States

Government. A monetary instrument transported by mail or a common

carrier, messenger, or bailee is being transported under this

subsection from the time the instrument is delivered to the United

States Postal Service, common carrier, messenger, or bailee through

the time it is delivered to the addressee, intended recipient, or

agent of the addressee or intended recipient without being

transported further in, or taken out of, the United States."

Pub. L. 107-56, Sec. 365(b)(2)(B), substituted "section 5324(c)"

for "section 5324(b)".

1992 - Subsec. (c). Pub. L. 102-550 inserted after first sentence

"Any property, real or personal, involved in a transaction or

attempted transaction in violation of section 5324(b), or any

property traceable to such property, may be seized and forfeited to

the United States Government."

1986 - Subsec. (b). Pub. L. 99-570, Sec. 1355(a), amended subsec.

(b) generally. Prior to amendment, subsec. (b) read as follows: "A

customs officer may stop and search, without a search warrant, a

vehicle, vessel, aircraft, or other conveyance, envelope or other

container, or person entering or departing from the United States

with respect to which or whom the officer has reasonable cause to

believe there is a monetary instrument being transported in

violation of section 5316 of this title."

Subsec. (c). Pub. L. 99-570, Sec. 1355(b), amended first sentence

generally. Prior to amendment, first sentence read as follows: "A

monetary instrument being transported may be seized and forfeited

to the United States Government when a report on the instrument

under section 5316 of this title has not been filed or contains a

material omission or misstatement."

1984 - Subsecs. (b), (c). Pub. L. 98-473, Sec. 901, added subsec.

(b) and redesignated former subsec. (b) as (c).

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 1986 AMENDMENT

Section 1364(b) of Pub. L. 99-570 provided that: "The amendments

made by sections 1355(b) and 1357(a) [amending this section and

section 5321 of this title] shall apply with respect to violations

committed after the end of the 3-month period beginning on 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 5321 of this title.

-End-

-CITE-

31 USC Sec. 5318 01/06/03

-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 (!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.

(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) (!2) unless the

relevant financial institution or nonfinancial trade or business

prepares and maintains a statement which -

(1) describes in detail the reasons why such person is

qualified for such exemption; and

(2) contains the signature of such person.

(g) Reporting of Suspicious Transactions. -

(1) In general. - The Secretary may require any financial

institution, and any director, officer, employee, or agent of any

financial institution, to report any suspicious transaction

relevant to a possible violation of law or regulation.

(2) Notification prohibited. -

(A) In general. - If a financial institution or any director,

officer, employee, or agent of any financial institution,

voluntarily or pursuant to this section or any other authority,

reports a suspicious transaction to a government agency -

(i) the financial institution, director, officer, employee,

or agent may not notify any person involved in the

transaction that the transaction has been reported; and

(ii) no officer or employee of the Federal Government or of

any State, local, tribal, or territorial government within

the United States, who has any knowledge that such report was

made may disclose to any person involved in the transaction

that the transaction has been reported, other than as

necessary to fulfill the official duties of such officer or

employee.

(B) Disclosures in certain employment references. -

(i) Rule of construction. - Notwithstanding the application

of subparagraph (A) in any other context, subparagraph (A)

shall not be construed as prohibiting any financial

institution, or any director, officer, employee, or agent of

such institution, from including information that was

included in a report to which subparagraph (A) applies -

(I) in a written employment reference that is provided in

accordance with section 18(w) of the Federal Deposit

Insurance Act in response to a request from another

financial institution; or

(II) in a written termination notice or employment

reference that is provided in accordance with the rules of

a self-regulatory organization registered with the

Securities and Exchange Commission or the Commodity Futures

Trading Commission,

except that such written reference or notice may not disclose

that such information was also included in any such report,

or that such report was made.

(ii) Information not required. - Clause (i) shall not be

construed, by itself, to create any affirmative duty to

include any information described in clause (i) in any

employment reference or termination notice referred to in

clause (i).

(3) Liability for disclosures. -

(A) In general. - Any financial institution that makes a

voluntary disclosure of any possible violation of law or

regulation to a government agency or makes a disclosure

pursuant to this subsection or any other authority, and any

director, officer, employee, or 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) (!3) Identification and Verification of Accountholders. -

(1) In general. - Subject to the requirements of this

subsection, the Secretary of the Treasury shall prescribe

regulations setting forth the minimum standards for financial

institutions and their customers regarding the identity of the

customer that shall apply in connection with the opening of an

account at a financial institution.

(2) Minimum requirements. - The regulations shall, at a

minimum, require financial institutions to implement, and

customers (after being given adequate notice) to comply with,

reasonable procedures for -

(A) verifying the identity of any person seeking to open an

account to the extent reasonable and practicable;

(B) maintaining records of the information used to verify a

person's identity, including name, address, and other

identifying information; and

(C) consulting lists of known or suspected 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) (!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, Secs. 6185(e),

6469(c), Nov. 18, 1988, 102 Stat. 4357, 4377; Pub. L. 102-550,

title XV, Secs. 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, Secs.

403(a), 410, 413(b)(1), Sept. 23, 1994, 108 Stat. 2245, 2252, 2254;

Pub. L. 107-56, title III, Secs. 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 Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

5318 31:1054(a), (b)(1st Oct. 26, 1970, Pub. L. 91-508,

sentence). Secs. 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 (Secs. 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.

-MISC2-

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.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) See References in Text note below.

(!3) So in original. Two subsecs. (l) have been enacted.

-End-

-CITE-

31 USC Sec. 5318A 01/06/03

-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.

-MISC1-

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.

-End-

-CITE-

31 USC Sec. 5319 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS

TRANSACTIONS

-HEAD-

Sec. 5319. Availability of reports

-STATUTE-

The Secretary of the Treasury shall make information in a report

filed under this subchapter available to an agency, including any

State financial institutions supervisory agency, United States

intelligence agency or self-regulatory organization registered with

the Securities and Exchange Commission or the Commodity Futures

Trading Commission, upon request of the head of the agency or

organization. The report shall be available for a purpose that is

consistent with this subchapter. The Secretary may only require

reports on the use of such information by any State financial

institutions supervisory agency for other than supervisory purposes

or by United States intelligence agencies. However, a report and

records of reports are exempt from disclosure under section 552 of

title 5..

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 999; Pub. L. 102-550,

title XV, Sec. 1506, Oct. 28, 1992, 106 Stat. 4055; Pub. L. 107-56,

title III, Sec. 358(c), Oct. 26, 2001, 115 Stat. 326.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

5319 31:1052(j). Oct. 26, 1970, Pub. L. 91-508,

Secs. 203(j), 212, 84 Stat.

1120, 1121.

31:1061.

--------------------------------------------------------------------

The words "upon such conditions and pursuant to such procedures

as he may by regulation prescribe" and "set forth" in 31:1061, and

the word "specifically" in 31:1052(j), are omitted as surplus.

AMENDMENTS

2001 - Pub. L. 107-56 reenacted section catchline without change

and amended text generally. Prior to amendment, text read as

follows: "The Secretary of the Treasury shall make information in a

report filed under section 5313, 5314, or 5316 of this title

available to an agency, including any State financial institutions

supervisory agency, on request of the head of the agency. The

report shall be available for a purpose consistent with those

sections or a regulation prescribed under those sections. The

Secretary may only require reports on the use of such information

by any State financial institutions supervisory agency for other

than supervisory purposes. However, a report and records of reports

are exempt from disclosure under section 552 of title 5."

1992 - Pub. L. 102-550 substituted "to an agency, including any

State financial institutions supervisory agency," for "to an

agency" in first sentence and inserted after second sentence "The

Secretary may only require reports on the use of such information

by any State financial institutions supervisory agency for other

than supervisory purposes."

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.

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.

-End-

-CITE-

31 USC Sec. 5320 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS

TRANSACTIONS

-HEAD-

Sec. 5320. Injunctions

-STATUTE-

When the Secretary of the Treasury believes a person has

violated, is violating, or will violate this subchapter or a

regulation prescribed or order issued under this subchapter, the

Secretary may bring a civil action in the appropriate district

court of the United States or appropriate United States court of a

territory or possession of the United States to enjoin the

violation or to enforce compliance with the subchapter, regulation,

or order. An injunction or temporary restraining order shall be

issued without bond.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 999.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

5320 31:1057. Oct. 26, 1970, Pub. L. 91-508,

Sec. 208, 84 Stat. 1120.

31:1143(b)(words Sept. 21, 1973, Pub. L.

before last comma). 93-110, Sec. 203(b)(words

before last comma), 87 Stat.

353.

--------------------------------------------------------------------

The words "has violated, is violating, or will violate this

subchapter" are substituted for "has engaged, is engaged, or is

about to engage in any acts or practices constituting a violation

of the provisions of this chapter" in 31:1057 and "failed to submit

a report required under any rule or regulation issued under this

subchapter or has violated any rule or regulation issued hereunder"

in 31:1143(b)(words before last comma) to eliminate unnecessary

words. The words "or a regulation prescribed" are added because of

the restatement. The words "in his discretion" are omitted as

surplus. The word "civil" is added because of rule 2 of the Federal

Rules of Civil Procedure (28 App. U.S.C.). The word "possession" is

substituted for "other place subject to the jurisdiction" for

consistency in the revised title and with other titles of the

United States Code. The words "or to enforce compliance with the

subchapter, regulation, or order" are substituted for 31:1057(last

sentence) and the words "a mandatory injunction commanding such

person to comply with such rule or regulation" in 31:1143(b)(words

before last comma) to eliminate unnecessary words. The words "and

upon a proper showing . . . permanent or" are omitted as surplus.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5321 of this title.

-End-

-CITE-

31 USC Sec. 5321 01/06/03

-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) (!1) of section 5317 of this title or civil

penalty under subsection (a)(2) of this section.

(d) Criminal Penalty Not Exclusive of Civil Penalty. - A civil

money penalty may be imposed under subsection (a) with respect to

any violation of this subchapter notwithstanding the fact that a

criminal penalty is imposed with respect to the same violation.

(e) Delegation of Assessment Authority to Banking Agencies. -

(1) In general. - The Secretary of the Treasury shall delegate,

in accordance with section 5318(a)(1) and subject to such terms

and conditions as the Secretary may impose in accordance with

paragraph (3), any authority of the Secretary to assess a civil

money penalty under this section on depository institutions (as

defined in section 3 of the Federal Deposit Insurance Act) to the

appropriate Federal banking agencies (as defined in such section

3).

(2) Authority of agencies. - Subject to any term or condition

imposed by the Secretary of the Treasury under paragraph (3), the

provisions of this section shall apply to an appropriate Federal

banking agency to which is delegated any authority of the

Secretary under this section in the same manner such provisions

apply to the Secretary.

(3) Terms and conditions. -

(A) In general. - The Secretary of the Treasury shall

prescribe by regulation the terms and conditions which shall

apply to any delegation under paragraph (1).

(B) Maximum dollar amount. - The terms and conditions

authorized under subparagraph (A) may include, in the

Secretary's sole discretion, a limitation on the amount of any

civil penalty which may be assessed by an appropriate Federal

banking agency pursuant to a delegation under paragraph (1).

-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, Secs. 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, Secs. 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, Secs. 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,

Secs. 353(a), 363(a), 365(c)(2)(B)(i), Oct. 26, 2001, 115 Stat.

322, 332, 335.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

5321(a)( 31:1054(b)(last Oct. 26, 1970, Pub. L. 91-508,

1) sentence related to Secs. 205(b)(last sentence

civil penalties). related to civil penalties),

207, 233, 234, 84 Stat. 1120,

1123.

31:1056(a).

5321(a)( 31:1103.

2)

5321(a)( 31:1143(a), Sept. 21, 1973, Pub. L.

3) (b)(words after 93-110, Sec. 203(a), (b)(words

last comma). 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.

-MISC2-

AMENDMENTS

2001 - Subsec. (a)(1). Pub. L. 107-56, Secs. 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, Secs. 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.

-FOOTNOTE-

(!1) So in original. Section 5317 does not contain a subsec. (d).

-End-

-CITE-

31 USC Sec. 5322 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS

TRANSACTIONS

-HEAD-

Sec. 5322. Criminal penalties

-STATUTE-

(a) A person willfully violating this subchapter or a regulation

prescribed or order issued under this subchapter (except section

5315 or 5324 of this title or a regulation prescribed under section

5315 or 5324), or willfully violating a regulation prescribed under

section 21 of the Federal Deposit Insurance Act or section 123 of

Public Law 91-508, shall be fined not more than $250,000, or

imprisoned for not more than five years, or both.

(b) A person willfully violating this subchapter or a regulation

prescribed or order issued under this subchapter (except section

5315 or 5324 of this title or a regulation prescribed under section

5315 or 5324), or willfully violating a regulation prescribed under

section 21 of the Federal Deposit Insurance Act or section 123 of

Public Law 91-508, while violating another law of the United States

or as part of a pattern of any illegal activity involving more than

$100,000 in a 12-month period, shall be fined not more than

$500,000, imprisoned for not more than 10 years, or both.

(c) For a violation of section 5318(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.

(d) A financial institution or agency that violates any provision

of subsection (i) or (j) of section 5318, or any special measures

imposed under section 5318A, or any regulation prescribed under

subsection (i) or (j) of section 5318 or section 5318A, shall be

fined in an amount equal to not less than 2 times the amount of the

transaction, but not more than $1,000,000.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 1000; Pub. L. 98-473,

title II, Sec. 901(b), Oct. 12, 1984, 98 Stat. 2135; Pub. L.

99-570, title I, Secs. 1356(c)(1), 1357(g), Oct. 27, 1986, 100

Stat. 3207-24, 3207-26; Pub. L. 102-550, title XV, Sec. 1504(d)(2),

Oct. 28, 1992, 106 Stat. 4055; Pub. L. 103-325, title IV, Sec.

411(c)(1), Sept. 23, 1994, 108 Stat. 2253; Pub. L. 107-56, title

III, Secs. 353(b), 363(b), Oct. 26, 2001, 115 Stat. 323, 332.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

5322(a) 31:1058. Oct. 26, 1970, Pub. L. 91-508,

Secs. 205(b)(last sentence

related to criminal

penalties), 209, 210, 84 Stat.

1120, 1121.

5322(b) 31:1059.

5322(c) 31:1054(b)(last

sentence related to

criminal penalties).

--------------------------------------------------------------------

In subsections (a) and (b), 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 part of the Currency

and Foreign Transactions Reporting Act that is restated in the

subchapter.

In subsection (a), the word "prescribed" is added for

consistency.

In subsection (b), the words "or a regulation prescribed under

this subchapter" are added because of the restatement. The words

"committed" and "the commission of" are omitted as surplus. The

words "United States" are substituted for "Federal" for consistency

in the revised title and with other titles of the United States

Code.

In subsection (c), the words "the purposes of both civil and

criminal penalties for" are omitted because of the restatement. The

word "separate" before "office" is omitted as surplus.

-REFTEXT-

REFERENCES IN TEXT

Section 21 of the Federal Deposit Insurance Act, referred to in

subsecs. (a) and (b), is classified to section 1829b of Title 12,

Banks and Banking.

Section 123 of Public Law 91-508, referred to in subsecs. (a) and

(b), is classified to section 1953 of Title 12, Banks and Banking.

-MISC2-

AMENDMENTS

2001 - Subsec. (a). Pub. L. 107-56, Sec. 353(b)(1), inserted "or

order issued" after "willfully violating this 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 "under section 5315 or

5324)".

Subsec. (b). Pub. L. 107-56, Sec. 353(b)(2), inserted "or order

issued" after "willfully violating this 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 "under section 5315 or 5324),".

Subsec. (d). Pub. L. 107-56, Sec. 363(b), added subsec. (d).

1994 - Subsecs. (a), (b). Pub. L. 103-325 inserted "or 5324"

after "section 5315" wherever appearing.

1992 - Subsec. (a). Pub. L. 102-550 substituted "imprisoned for"

for "imprisonment".

1986 - Subsec. (b). Pub. L. 99-570, Sec. 1357(g), substituted

"any illegal activity involving" for "illegal activity involving

transactions of" and "10 years" for "5 years".

Subsec. (c). Pub. L. 99-570, Sec. 1356(c)(1), substituted

"5318(a)(2)" for "5318(2)" in two places.

1984 - Subsec. (a). Pub. L. 98-473, which directed the

substitution of "$250,000, or imprisonment not more than five

years, or both" for "$1,000, or imprisonment not more than one

year, or both", was executed by substituting the quoted wording for

"$1,000, imprisoned for not more than one year, or both" to reflect

the probable intent of Congress.

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 1986 AMENDMENT

Amendment by section 1357(g) of Pub. L. 99-570 applicable with

respect to violations committed after Oct. 27, 1986, see section

1364(c) of Pub. L. 99-570, set out as a note under section 5321 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5321 of this title; title

12 sections 93, 1464, 1772d, 1786, 1818, 1821, 3105; title 18

sections 986, 1956, 2516.

-End-

-CITE-

31 USC Sec. 5323 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS

TRANSACTIONS

-HEAD-

Sec. 5323. Rewards for informants

-STATUTE-

(a) The Secretary may pay a reward to an individual who provides

original information which leads to a recovery of a criminal fine,

civil penalty, or forfeiture, which exceeds $50,000, for a

violation of this chapter.

(b) The Secretary shall determine the amount of a reward under

this section. The Secretary may not award more than 25 per centum

of the net amount of the fine, penalty, or forfeiture collected or

$150,000, whichever is less.

(c) An officer or employee of the United States, a State, or a

local government who provides information described in subsection

(a) in the performance of official duties is not eligible for a

reward under this section.

(d) There are authorized to be appropriated such sums as may be

necessary to carry out the provisions of this section.

-SOURCE-

(Added Pub. L. 98-473, title II, Sec. 901(e), Oct. 12, 1984, 98

Stat. 2135.)

-End-

-CITE-

31 USC Sec. 5324 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS

TRANSACTIONS

-HEAD-

Sec. 5324. Structuring transactions to evade reporting requirement

prohibited

-STATUTE-

(a) Domestic Coin and Currency Transactions Involving Financial

Institutions. - No person shall, for the purpose of evading the

reporting requirements of section 5313(a) or 5325 or any regulation

prescribed under any such section, the reporting or recordkeeping

requirements imposed by any order issued under section 5326, or the

recordkeeping requirements imposed by any regulation prescribed

under section 21 of the Federal Deposit Insurance Act or section

123 of Public Law 91-508 -

(1) cause or attempt to cause a domestic financial institution

to fail to file a report required under section 5313(a) or 5325

or any regulation prescribed under any such section, to file a

report or to maintain a record required by an order issued under

section 5326, or to maintain a record required pursuant to any

regulation prescribed under section 21 of the Federal Deposit

Insurance Act or section 123 of Public Law 91-508;

(2) cause or attempt to cause a domestic financial institution

to file a report required under section 5313(a) or 5325 or any

regulation prescribed under any such section, to file a report or

to maintain a record required by any order issued under section

5326, or to maintain a record required pursuant to any regulation

prescribed under section 5326, or to maintain a record required

pursuant to any regulation prescribed under section 21 of the

Federal Deposit Insurance Act or section 123 of Public Law

91-508, that contains a material omission or misstatement of

fact; or

(3) structure or assist in structuring, or attempt to structure

or assist in structuring, any transaction with one or more

domestic financial institutions.

(b) Domestic Coin and Currency Transactions Involving

Nonfinancial Trades or Businesses. - No person shall, for the

purpose of evading the report requirements of section 5333 (!1) or

any regulation prescribed under such section -

(1) cause or attempt to cause a nonfinancial trade or business

to fail to file a report required under section 5333 (!1) or any

regulation prescribed under such section;

(2) cause or attempt to cause a nonfinancial trade or business

to file a report required under section 5333 (!1) or any

regulation prescribed under such section that contains a material

omission or misstatement of fact; or

(3) structure or assist in structuring, or attempt to structure

or assist in structuring, any transaction with 1 or more

nonfinancial trades or businesses.

(c) International Monetary Instrument Transactions. - No person

shall, for the purpose of evading the reporting requirements of

section 5316 -

(1) fail to file a report required by section 5316, or cause or

attempt to cause a person to fail to file such a report;

(2) file or cause or attempt to cause a person to file a report

required under section 5316 that contains a material omission or

misstatement of fact; or

(3) structure or assist in structuring, or attempt to structure

or assist in structuring, any importation or exportation of

monetary instruments.

(d) Criminal Penalty. -

(1) In general. - Whoever violates this section shall be fined

in accordance with title 18, United States Code, imprisoned for

not more than 5 years, or both.

(2) Enhanced penalty for aggravated cases. - Whoever violates

this section while violating another law of the United States or

as part of a pattern of any illegal activity involving more than

$100,000 in a 12-month period shall be fined twice the amount

provided in subsection (b)(3) or (c)(3) (as the case may be) of

section 3571 of title 18, United States Code, imprisoned for not

more than 10 years, or both.

-SOURCE-

(Added Pub. L. 99-570, title I, Sec. 1354(a), Oct. 27, 1986, 100

Stat. 3207-22; amended Pub. L. 102-550, title XV, Secs. 1517(a),

1525(a), 1535(a)(1), Oct. 28, 1992, 106 Stat. 4059, 4064, 4066;

Pub. L. 103-322, title XXXIII, Sec. 330017(a)(2), Sept. 13, 1994,

108 Stat. 2149; Pub. L. 103-325, title IV, Secs. 411(a), 413(a)(2),

Sept. 23, 1994, 108 Stat. 2253, 2254; Pub. L. 107-56, title III,

Secs. 353(c), 365(b)(1), (2)(A), Oct. 26, 2001, 115 Stat. 323, 334,

335.)

-REFTEXT-

REFERENCES IN TEXT

Section 21 of the Federal Deposit Insurance Act, referred to in

subsec. (a), is classified to section 1829b of Title 12, Banks and

Banking.

Section 123 of Public Law 91-508, referred to in subsec. (a), is

classified to section 1953 of Title 12, Banks and Banking.

-MISC1-

AMENDMENTS

2001 - Subsec. (a). Pub. L. 107-56, Secs. 353(c)(1), (2),

365(b)(2)(A), inserted "Involving Financial Institutions" after

"Transactions" in heading, and in introductory provisions, inserted

comma after "No person shall" and substituted "section, the

reporting or recordkeeping requirements imposed by any order issued

under section 5326, or the recordkeeping requirements imposed by

any regulation prescribed under section 21 of the Federal Deposit

Insurance Act or section 123 of Public Law 91-508 - " for "section

- ".

Subsec. (a)(1). Pub. L. 107-56, Sec. 353(c)(3), inserted ", to

file a report or to maintain a record required by an order issued

under section 5326, or to maintain a record required pursuant to

any regulation prescribed under section 21 of the Federal Deposit

Insurance Act or section 123 of Public Law 91-508" before semicolon

at end.

Subsec. (a)(2). Pub. L. 107-56, Sec. 353(c)(4), inserted ", to

file a report or to maintain a record required by any order issued

under section 5326, or to maintain a record required pursuant to

any regulation prescribed under section 5326, or to maintain a

record required pursuant to any regulation prescribed under section

21 of the Federal Deposit Insurance Act or section 123 of Public

Law 91-508," after "regulation prescribed under any such section".

Subsecs. (b) to (d). Pub. L. 107-56, Sec. 365(b)(1), added

subsec. (b) and redesignated former subsecs. (b) and (c) as (c) and

(d), respectively.

1994 - Subsec. (a). Pub. L. 103-322, Sec. 330017(a)(2) and Pub.

L. 103-325, Sec. 413(a)(2), amended subsec. (a), introductory

provisions, identically, substituting "section 5313(a) or 5325 or

any regulation prescribed under any such section" for "section

5313(a), section 5325, or the regulations issued thereunder or

section 5325 or regulations prescribed under such section 5325" and

striking out "with respect to such transaction" before dash.

Subsec. (a)(1), (2). Pub. L. 103-322, Sec. 330017(a)(2)(A) and

Pub. L. 103-325, Sec. 413(a)(2)(A), amended pars. (1) and (2)

identically, substituting "section 5313(a) or 5325 or any

regulation prescribed under any such section" for "section 5313(a),

section 5325, or the regulations issued thereunder or section 5325

or regulations prescribed under such section 5325".

Subsec. (c). Pub. L. 103-325, Sec. 411(a), added subsec. (c).

1992 - Pub. L. 102-550, Sec. 1525(a)(1), designated existing

provisions as subsec. (a), inserted heading, and added subsec. (b).

Pub. L. 102-550, Secs. 1517(a), 1535(a)(1), inserted the

following duplicative provisions "or section 5325 or regulations

prescribed under such section 5325" and ", section 5325, or the

regulations issued thereunder" after "section 5313(a)" wherever

appearing.

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

Section 1364(a) of Pub. L. 99-570 provided that: "The amendment

made by section 1354 [enacting this section] shall apply with

respect to transactions for the payment, receipt, or transfer of

United States coins or currency or other monetary instruments

completed after the end of the 3-month period beginning on the date

of the enactment of this Act [Oct. 27, 1986]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5317, 5321, 5322 of this

title; title 12 sections 93, 1464, 1772d, 1786, 1818, 1821, 3420;

title 18 sections 986, 1956; title 28 section 524.

-FOOTNOTE-

(!1) So in original. Probably should be section "5331".

-End-

-CITE-

31 USC Sec. 5325 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS

TRANSACTIONS

-HEAD-

Sec. 5325. Identification required to purchase certain monetary

instruments

-STATUTE-

(a) In General. - No financial institution may issue or sell a

bank check, cashier's check, traveler's check, or money order to

any individual in connection with a transaction or group of such

contemporaneous transactions which involves United States coins or

currency (or such other monetary instruments as the Secretary may

prescribe) in amounts or denominations of $3,000 or more unless -

(1) the individual has a transaction account with such

financial institution and the financial institution -

(A) verifies that fact through a signature card or other

information maintained by such institution in connection with

the account of such individual; and

(B) records the method of verification in accordance with

regulations which the Secretary of the Treasury shall

prescribe; or

(2) the individual furnishes the financial institution with

such forms of identification as the Secretary of the Treasury may

require in regulations which the Secretary shall prescribe and

the financial institution verifies and records such information

in accordance with regulations which such Secretary shall

prescribe.

(b) Report to Secretary Upon Request. - Any information required

to be recorded by any financial institution under paragraph (1) or

(2) of subsection (a) shall be reported by such institution to the

Secretary of the Treasury at the request of such Secretary.

(c) Transaction Account Defined. - For purposes of this section,

the term "transaction account" has the meaning given to such term

in section 19(b)(1)(C) of the Federal Reserve Act.

-SOURCE-

(Added Pub. L. 100-690, title VI, Sec. 6185(b), Nov. 18, 1988, 102

Stat. 4355.)

-REFTEXT-

REFERENCES IN TEXT

Section 19(b)(1)(C) of the Federal Reserve Act, referred to in

subsec. (c), is classified to section 461(b)(1)(C) of Title 12,

Banks and Banking.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5324 of this title.

-End-

-CITE-

31 USC Sec. 5326 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS

TRANSACTIONS

-HEAD-

Sec. 5326. Records of certain domestic coin and currency

transactions

-STATUTE-

(a) In General. - If the Secretary of the Treasury finds, upon

the Secretary's own initiative or at the request of an appropriate

Federal or State law enforcement official, that reasonable grounds

exist for concluding that additional recordkeeping and reporting

requirements are necessary to carry out the purposes of this

subtitle and prevent evasions thereof, the Secretary may issue an

order requiring any domestic financial institution or nonfinancial

trade or business or group of domestic financial institutions or

nonfinancial trades or businesses in a geographic area -

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

such order concerning -

(A) any transaction in which such financial institution or

nonfinancial trade or business is involved for the payment,

receipt, or transfer of United States coins or currency (or

such other monetary instruments as the Secretary may describe

in such order) the total amounts or denominations of which are

equal to or greater than an amount which the Secretary may

prescribe; and

(B) any other person participating in such transaction;

(2) to maintain a record of such information for such period of

time as the Secretary may require; and

(3) to file a report with respect to any transaction described

in paragraph (1)(A) in the manner and to the extent specified in

the order.

(b) Authority To Order Depository Institutions To Obtain Reports

From Customers. -

(1) In general. - The Secretary of the Treasury may, by

regulation or order, require any depository institution (as

defined in section 3(c) of the Federal Deposit Insurance Act) -

(A) to request any financial institution or nonfinancial

trade or business (other than a depository institution) which

engages in any reportable transaction with the depository

institution to provide the depository institution with a copy

of any report filed by the financial institution or

nonfinancial trade or business under this subtitle with respect

to any prior transaction (between such financial institution or

nonfinancial trade or business and any other person) which

involved any portion of the coins or currency (or monetary

instruments) which are involved in the reportable transaction

with the depository institution; and

(B) if no copy of any report described in subparagraph (A) is

received by the depository institution in connection with any

reportable transaction to which such subparagraph applies, to

submit (in addition to any report required under this subtitle

with respect to the reportable transaction) a written notice to

the Secretary that the financial institution or nonfinancial

trade or business failed to provide any copy of such report.

(2) Reportable transaction defined. - For purposes of this

subsection, the term "reportable transaction" means any

transaction involving coins or currency (or such other monetary

instruments as the Secretary may describe in the regulation or

order) the total amounts or denominations of which are equal to

or greater than an amount which the Secretary may prescribe.

(c) Nondisclosure of Orders. - No financial institution or

nonfinancial trade or business or officer, director, employee or

agent of a financial institution or nonfinancial trade or business

subject to an order under this section may disclose the existence

of, or terms of, the order to any person except as prescribed by

the Secretary.

(d) Maximum Effective Period for Order. - No order issued under

subsection (a) shall be effective for more than 180 days unless

renewed pursuant to the requirements of subsection (a).

-SOURCE-

(Added Pub. L. 100-690, title VI, Sec. 6185(c), Nov. 18, 1988, 102

Stat. 4355; amended Pub. L. 102-550, title XV, Secs. 1514, 1562,

Oct. 28, 1992, 106 Stat. 4058, 4072; Pub. L. 107-56, title III,

Secs. 353(d), 365(c)(2)(B), Oct. 26, 2001, 115 Stat. 323, 335.)

-REFTEXT-

REFERENCES IN TEXT

Section 3(c) of the Federal Deposit Insurance Act, referred to in

subsec. (b)(1), is classified to section 1813(c) 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.

-MISC1-

AMENDMENTS

2001 - Subsec.(a). Pub. L. 107-56, Sec. 365(c)(2)(B), inserted

"or nonfinancial trade or business" after "financial institution"

and "or nonfinancial trades or businesses" for "financial

institutions" in introductory provisions.

Subsec. (a)(1)(A). Pub. L. 107-56, Sec. 365(c)(2)(B)(i), inserted

"or nonfinancial trade or business" after "financial institution".

Subsec. (b)(1)(A). Pub. L. 107-56, Sec. 365(c)(2)(B)(i), inserted

"or nonfinancial trade or business" after "financial institution"

wherever appearing.

Subsec. (b)(1)(B). Pub. L. 107-56, Sec. 365(c)(2)(B)(i), inserted

"or nonfinancial trade or business" after "financial institution".

Subsec. (c). Pub. L. 107-56, Sec. 365(c)(2)(B)(i), inserted "or

nonfinancial trade or business" after "financial institution" in

two places.

Subsec. (d). Pub. L. 107-56, Sec. 353(d), substituted "more than

180 days" for "more than 60 days".

1992 - Subsecs. (b) to (d). Pub. L. 102-550 added subsecs. (b)

and (c) and redesignated former subsec. (b) as (d).

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 310, 5318A, 5324 of this

title.

-End-

-CITE-

31 USC Sec. 5327 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS

TRANSACTIONS

-HEAD-

[Sec. 5327. Repealed. Pub. L. 104-208, div. A, title II, Sec.

2223(1), Sept. 30, 1996, 110 Stat. 3009-415]

-MISC1-

Section, added Pub. L. 102-550, title XV, Sec. 1511(a), Oct. 28,

1992, 106 Stat. 4056, required Secretary to prescribe regulations

requiring depository institutions to identify and report on

financial institution customers.

-End-

-CITE-

31 USC Sec. 5328 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS

TRANSACTIONS

-HEAD-

Sec. 5328. Whistleblower protections

-STATUTE-

(a) Prohibition Against Discrimination. - No financial

institution or nonfinancial trade or business may discharge or

otherwise discriminate against any employee with respect to

compensation, terms, conditions, or privileges of employment

because the employee (or any person acting pursuant to the request

of the employee) provided information to the Secretary of the

Treasury, the Attorney General, or any Federal supervisory agency

regarding a possible violation of any provision of this subchapter

or section 1956, 1957, or 1960 of title 18, or any regulation under

any such provision, by the financial institution or nonfinancial

trade or business or any director, officer, or employee of the

financial institution or nonfinancial trade or business.

(b) Enforcement. - Any employee or former employee who believes

that such employee has been discharged or discriminated against in

violation of subsection (a) may file a civil action in the

appropriate United States district court before the end of the

2-year period beginning on the date of such discharge or

discrimination.

(c) Remedies. - If the district court determines that a violation

has occurred, the court may order the financial institution or

nonfinancial trade or business which committed the violation to -

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

(2) pay compensatory damages; or

(3) take other appropriate actions to remedy any past

discrimination.

(d) Limitation. - The protections of this section shall not apply

to any employee who -

(1) deliberately causes or participates in the alleged

violation of law or regulation; or

(2) knowingly or recklessly provides substantially false

information to the Secretary, the Attorney General, or any

Federal supervisory agency.

(e) Coordination With Other Provisions of Law. - This section

shall not apply with respect to any financial institution or

nonfinancial trade or business which is subject to section 33 of

the Federal Deposit Insurance Act, section 213 of the Federal

Credit Union Act, or section 21A(q) of the Home Owners' Loan Act

(!1) (as added by section 251(c) of the Federal Deposit Insurance

Corporation Improvement Act of 1991).

-SOURCE-

(Added Pub. L. 102-550, title XV, Sec. 1563(a), Oct. 28, 1992, 106

Stat. 4072; amended Pub. L. 107-56, title III, Sec.

365(c)(2)(B)(i), Oct. 26, 2001, 115 Stat. 335.)

-REFTEXT-

REFERENCES IN TEXT

Section 33 of the Federal Deposit Insurance Act, referred to in

subsec. (e), is classified to section 1831j of Title 12, Banks and

Banking.

Section 213 of the Federal Credit Union Act, referred to in

subsec. (e), is classified to section 1790b of Title 12.

Section 21A(q) of the Home Owners' Loan Act, referred to in

subsec. (e), probably means section 21A(q) of the Federal Home Loan

Bank Act, which is classified to section 1441a(q) of Title 12.

-COD-

CODIFICATION

Another section 365(c) of Pub. L. 107-56 amended the table of

sections at the beginning of this chapter.

-MISC1-

AMENDMENTS

2001 - Subsecs. (a), (c), (e). Pub. L. 107-56 inserted "or

nonfinancial trade or business" after "financial institution"

wherever appearing.

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.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

31 USC Sec. 5329 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS

TRANSACTIONS

-HEAD-

Sec. 5329. Staff commentaries

-STATUTE-

The Secretary shall -

(1) publish all written rulings interpreting this subchapter;

and

(2) annually issue a staff commentary on the regulations issued

under this subchapter.

-SOURCE-

(Added Pub. L. 103-325, title III, Sec. 311(a), Sept. 23, 1994, 108

Stat. 2221.)

-End-

-CITE-

31 USC Sec. 5330 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS

TRANSACTIONS

-HEAD-

Sec. 5330. Registration of money transmitting businesses

-STATUTE-

(a) Registration With Secretary of the Treasury Required. -

(1) In general. - Any person who owns or controls a money

transmitting business shall register the business (whether or not

the business is licensed as a money transmitting business in any

State) with the Secretary of the Treasury not later than the end

of the 180-day period beginning on the later of -

(A) the date of enactment of the Money Laundering Suppression

Act of 1994; or

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

(2) Form and manner of registration. - Subject to the

requirements of subsection (b), the Secretary of the Treasury

shall prescribe, by regulation, the form and manner for

registering a money transmitting business pursuant to paragraph

(1).

(3) Businesses remain subject to state law. - This section

shall not be construed as superseding any requirement of State

law relating to money transmitting businesses operating in such

State.

(4) False and incomplete information. - The filing of false or

materially incomplete information in connection with the

registration of a money transmitting business shall be considered

as a failure to comply with the requirements of this subchapter.

(b) Contents of Registration. - The registration of a money

transmitting business under subsection (a) shall include the

following information:

(1) The name and location of the business.

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

(A) owns or controls the business;

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

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

the business.

(3) The name and address of any depository institution at which

the business maintains a transaction account (as defined in

section 19(b)(1)(C) of the Federal Reserve Act).

(4) An estimate of the volume of business in the coming year

(which shall be reported annually to the Secretary).

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

require.

(c) Agents of Money Transmitting Businesses. -

(1) Maintenance of lists of agents of money transmitting

businesses. - Pursuant to regulations which the Secretary of the

Treasury shall prescribe, each money transmitting business shall

-

(A) maintain a list containing the names and addresses of all

persons authorized to act as an agent for such business in

connection with activities described in subsection (d)(1)(A)

and such other information about such agents as the Secretary

may require; and

(B) make the list and other information available on request

to any appropriate law enforcement agency.

(2) Treatment of agent as money transmitting business. - The

Secretary of the Treasury shall prescribe regulations

establishing, on the basis of such criteria as the Secretary

determines to be appropriate, a threshold point for treating an

agent of a money transmitting business as a money transmitting

business for purposes of this section.

(d) Definitions. - For purposes of this section, the following

definitions shall apply:

(1) Money transmitting business. - The term "money transmitting

business" means any business other than the United States Postal

Service which -

(A) provides check cashing, currency exchange, or money

transmitting or remittance services, or issues or redeems money

orders, travelers' checks, and other similar instruments or any

other person who engages as a business in the transmission of

funds, including any person who engages as a business in an

informal money transfer system or any network of people who

engage as a business in facilitating the transfer of money

domestically or internationally outside of the conventional

financial institutions system;; (!1)

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

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

5313(g)).

(2) Money transmitting service. - The term "money transmitting

service" includes accepting currency or funds denominated in the

currency of any country and transmitting the currency or funds,

or the value of the currency or funds, by any means through a

financial agency or institution, a Federal reserve bank or other

facility of the Board of Governors of the Federal Reserve System,

or an electronic funds transfer network.

(e) Civil Penalty for Failure To Comply With Registration

Requirements. -

(1) In general. - Any person who fails to comply with any

requirement of this section or any regulation prescribed under

this section shall be liable to the United States for a civil

penalty of $5,000 for each such violation.

(2) Continuing violation. - Each day a violation described in

paragraph (1) continues shall constitute a separate violation for

purposes of such paragraph.

(3) Assessments. - Any penalty imposed under this subsection

shall be assessed and collected by the Secretary of the Treasury

in the manner provided in section 5321 and any such assessment

shall be subject to the provisions of such section.

-SOURCE-

(Added Pub. L. 103-325, title IV, Sec. 408(b), Sept. 23, 1994, 108

Stat. 2250; amended Pub. L. 107-56, title III, Sec. 359(b), Oct.

26, 2001, 115 Stat. 328.)

-REFTEXT-

REFERENCES IN TEXT

The date of enactment of the Money Laundering Suppression Act of

1994, referred to in subsec. (a)(1)(A), is the date of enactment of

title IV of Pub. L. 103-325, which was approved Sept. 23, 1994.

Section 19(b)(1)(C) of the Federal Reserve Act, referred to in

subsec. (b)(3), is classified to section 461(b)(1)(C) of Title 12,

Banks and Banking.

-MISC1-

AMENDMENTS

2001 - Subsec. (d)(1)(A). Pub. L. 107-56 inserted before

semicolon "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;".

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.

FINDINGS AND PURPOSES

Section 408(a) of Pub. L. 103-325 provided that:

"(1) Findings. - The Congress hereby finds the following:

"(A) Money transmitting businesses are subject to the

recordkeeping and reporting requirements of subchapter II of

chapter 53 of title 31, United States Code.

"(B) Money transmitting businesses are largely unregulated

businesses and are frequently used in sophisticated schemes to -

"(i) transfer large amounts of money which are the proceeds

of unlawful enterprises; and

"(ii) evade the requirements of such subchapter II, the

Internal Revenue Code of 1986 [26 U.S.C. 1 et seq.], and other

laws of the United States.

"(C) Information on the identity of money transmitting

businesses and the names of the persons who own or control, or

are officers or employees of, a money transmitting business would

have a high degree of usefulness in criminal, tax, or regulatory

investigations and proceedings.

"(2) Purpose. - It is the purpose of this section [enacting this

section and amending section 1960 of Title 18, Crimes and Criminal

Procedure] to establish a registration requirement for businesses

engaged in providing check cashing, currency exchange, or money

transmitting or remittance services, or issuing or redeeming money

orders, travelers' checks, and other similar instruments to assist

the Secretary of the Treasury, the Attorney General, and other

supervisory and law enforcement agencies to effectively enforce the

criminal, tax, and regulatory laws and prevent such money

transmitting businesses from engaging in illegal activities."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 18 section 1960.

-FOOTNOTE-

(!1) So in original.

-End-

-CITE-

31 USC Sec. 5331 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS

TRANSACTIONS

-HEAD-

Sec. 5331. Reports relating to coins and currency received in

nonfinancial trade or business

-STATUTE-

(a) Coin and Currency Receipts of More Than $10,000. - Any person

-

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

(2) who, in the course of such trade or business, receives more

than $10,000 in coins or currency in 1 transaction (or 2 or more

related transactions),

shall file a report described in subsection (b) with respect to

such transaction (or related transactions) with the Financial

Crimes Enforcement Network at such time and in such manner as the

Secretary may, by regulation, prescribe.

(b) Form and Manner of Reports. - A report is described in this

subsection if such report -

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

(2) contains -

(A) the name and address, and such other identification

information as the Secretary may require, of the person from

whom the coins or currency was received;

(B) the amount of coins or currency received;

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

(D) such other information, including the identification of

the person filing the report, as the Secretary may prescribe.

(c) Exceptions. -

(1) Amounts received by financial institutions. - Subsection

(a) shall not apply to amounts received in a transaction reported

under section 5313 and regulations prescribed under such section.

(2) Transactions occurring outside the united states. - Except

to the extent provided in regulations prescribed by the

Secretary, subsection (a) shall not apply to any transaction if

the entire transaction occurs outside the United States.

(d) Currency Includes Foreign Currency and Certain Monetary

Instruments. -

(1) In general. - For purposes of this section, the term

"currency" includes -

(A) foreign currency; and

(B) to the extent provided in regulations prescribed by the

Secretary, any monetary instrument (whether or not in bearer

form) with a face amount of not more than $10,000.

(2) Scope of application. - Paragraph (1)(B) shall not apply to

any check drawn on the account of the writer in a financial

institution referred to in subparagraph (A), (B), (C), (D), (E),

(F), (G), (J), (K), (R), or (S) of section 5312(a)(2).

-SOURCE-

(Added Pub. L. 107-56, title III, Sec. 365(a), Oct. 26, 2001, 115

Stat. 333.)

-MISC1-

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.

REGULATIONS

Pub. L. 107-56, title III, Sec. 365(f), Oct. 26, 2001, 115 Stat.

335, provided that: "Regulations which the Secretary [of the

Treasury] determines are necessary to implement this section

[enacting this section and amending sections 5312, 5317, 5318,

5321, 5324, 5326, and 5328 of this title] shall be published in

final form before the end of the 6-month period beginning on the

date of enactment of this Act [Oct. 26, 2001]."

-End-

-CITE-

31 USC Sec. 5332 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS

TRANSACTIONS

-HEAD-

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

-STATUTE-

(a) Criminal Offense. -

(1) In general. - Whoever, with the intent to evade a currency

reporting requirement under section 5316, knowingly conceals more

than $10,000 in currency or other monetary instruments on the

person of such individual or in any conveyance, article of

luggage, merchandise, or other container, and transports or

transfers or attempts to transport or transfer such currency or

monetary instruments from a place within the United States to a

place outside of the United States, or from a place outside the

United States to a place within the United States, shall be

guilty of a currency smuggling offense and subject to punishment

pursuant to subsection (b).

(2) Concealment on person. - For purposes of this section, the

concealment of currency on the person of any individual includes

concealment in any article of clothing worn by the individual or

in any luggage, backpack, or other container worn or carried by

such individual.

(b) Penalty. -

(1) Term of imprisonment. - A person convicted of a currency

smuggling offense under subsection (a), or a conspiracy to commit

such offense, shall be imprisoned for not more than 5 years.

(2) Forfeiture. - In addition, the court, in imposing sentence

under paragraph (1), shall order that the defendant forfeit to

the United States, any property, real or personal, involved in

the offense, and any property traceable to such property, subject

to subsection (d) (!1) of this section.

(3) Procedure. - The seizure, restraint, and forfeiture of

property under this section shall be governed by section 413 of

the Controlled Substances Act.

(4) Personal money judgment. - If the property subject to

forfeiture under paragraph (2) is unavailable, and the defendant

has insufficient substitute property that may be forfeited

pursuant to section 413(p) of the Controlled Substances Act, the

court shall enter a personal money judgment against the defendant

for the amount that would be subject to forfeiture.

(c) Civil Forfeiture. -

(1) In general. - Any property involved in a violation of

subsection (a), or a conspiracy to commit such violation, and any

property traceable to such violation or conspiracy, may be seized

and, subject to subsection (d) (!1) of this section, forfeited to

the United States.

(2) Procedure. - The seizure and forfeiture shall be governed

by the procedures governing civil forfeitures in money laundering

cases pursuant to section 981(a)(1)(A) of title 18, United States

Code.

(3) Treatment of certain property as involved in the offense. -

For purposes of this subsection and subsection (b), any currency

or other monetary instrument that is concealed or intended to be

concealed in violation of subsection (a) or a conspiracy to

commit such violation, any article, container, or conveyance

used, or intended to be used, to conceal or transport the

currency or other monetary instrument, and any other property

used, or intended to be used, to facilitate the offense, shall be

considered property involved in the offense.

-SOURCE-

(Added Pub. L. 107-56, title III, Sec. 371(c), Oct. 26, 2001, 115

Stat. 337.)

-REFTEXT-

REFERENCES IN TEXT

Section 413 of the Controlled Substances Act, referred to in

subsec. (b)(3), (4), is classified to section 853 of Title 21, Food

and Drugs.

-COD-

CODIFICATION

Another section 371(c) of Pub. L. 107-56 amended the table of

sections at the beginning of this chapter.

-MISC1-

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.

BULK CASH SMUGGLING INTO OR OUT OF THE UNITED STATES

Pub. L. 107-56, title III, Sec. 371(a), (b), Oct. 26, 2001, 115

Stat. 336, 337, provided that:

"(a) Findings. - The Congress finds the following:

"(1) Effective enforcement of the currency reporting

requirements of subchapter II of chapter 53 of title 31, United

States Code, and the regulations prescribed under such

subchapter, has forced drug dealers and other criminals engaged

in cash-based businesses to avoid using traditional financial

institutions.

"(2) In their effort to avoid using traditional financial

institutions, drug dealers and other criminals are forced to move

large quantities of currency in bulk form to and through the

airports, border crossings, and other ports of entry where the

currency can be smuggled out of the United States and placed in a

foreign financial institution or sold on the black market.

"(3) The transportation and smuggling of cash in bulk form may

now be the most common form of money laundering, and the movement

of large sums of cash is one of the most reliable warning signs

of drug trafficking, terrorism, money laundering, racketeering,

tax evasion and similar crimes.

"(4) The intentional transportation into or out of the United

States of large amounts of currency or monetary instruments, in a

manner designed to circumvent the mandatory reporting provisions

of subchapter II of chapter 53 of title 31, United States Code,,

[sic] is the equivalent of, and creates the same harm as, the

smuggling of goods.

"(5) The arrest and prosecution of bulk cash smugglers are

important parts of law enforcement's effort to stop the

laundering of criminal proceeds, but the couriers who attempt to

smuggle the cash out of the United States are typically low-level

employees of large criminal organizations, and thus are easily

replaced. Accordingly, only the confiscation of the smuggled bulk

cash can effectively break the cycle of criminal activity of

which the laundering of the bulk cash is a critical part.

"(6) The current penalties for violations of the currency

reporting requirements are insufficient to provide a deterrent to

the laundering of criminal proceeds. In particular, in cases

where the only criminal violation under current law is a

reporting offense, the law does not adequately provide for the

confiscation of smuggled currency. In contrast, if the smuggling

of bulk cash were itself an offense, the cash could be

confiscated as the corpus delicti of the smuggling offense.

"(b) Purposes. - The purposes of this section [enacting this

section] are -

"(1) to make the act of smuggling bulk cash itself a criminal

offense;

"(2) to authorize forfeiture of any cash or instruments of the

smuggling offense; and

"(3) to emphasize the seriousness of the act of bulk cash

smuggling."

-FOOTNOTE-

(!1) So in original. This section does not contain a subsection (d).

-End-

-CITE-

31 USC SUBCHAPTER III - MONEY LAUNDERING AND RELATED

FINANCIAL CRIMES 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER III - MONEY LAUNDERING AND RELATED FINANCIAL CRIMES

-HEAD-

SUBCHAPTER III - MONEY LAUNDERING AND RELATED FINANCIAL CRIMES

-End-

-CITE-

31 USC Sec. 5340 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER III - MONEY LAUNDERING AND RELATED FINANCIAL CRIMES

-HEAD-

Sec. 5340. Definitions

-STATUTE-

For purposes of this subchapter, the following definitions shall

apply:

(1) Department of the treasury law enforcement organizations. -

The term "Department of the Treasury law enforcement

organizations" has the meaning given to such term in section

9703(p)(1).

(2) Money laundering and related financial crime. - The term

"money laundering and related financial crime" -

(A) means the movement of illicit cash or cash equivalent

proceeds into, out of, or through the United States, or into,

out of, or through United States financial institutions, as

defined in section 5312 of title 31, United States Code; or

(B) has the meaning given that term (or the term used for an

equivalent offense) under State and local criminal statutes

pertaining to the movement of illicit cash or cash equivalent

proceeds.

(3) Secretary. - The term "Secretary" means the Secretary of

the Treasury.

(4) Attorney general. - The term "Attorney General" means the

Attorney General of the United States.

-SOURCE-

(Added Pub. L. 105-310, Sec. 2(a), Oct. 30, 1998, 112 Stat. 2941.)

-End-

-CITE-

31 USC Part 1 - National Money Laundering and Related

Financial Crimes Strategy 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER III - MONEY LAUNDERING AND RELATED FINANCIAL CRIMES

Part 1 - National Money Laundering and Related Financial Crimes

Strategy

-HEAD-

PART 1 - NATIONAL MONEY LAUNDERING AND RELATED FINANCIAL CRIMES

STRATEGY

-End-

-CITE-

31 USC Sec. 5341 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER III - MONEY LAUNDERING AND RELATED FINANCIAL CRIMES

Part 1 - National Money Laundering and Related Financial Crimes

Strategy

-HEAD-

Sec. 5341. National money laundering and related financial crimes

strategy

-STATUTE-

(a) Development and Transmittal to Congress. -

(1) Development. - The President, acting through the Secretary

and in consultation with the Attorney General, shall develop a

national strategy for combating money laundering and related

financial crimes.

(2) Transmittal to congress. - By February 1 of 1999, 2000,

2001, 2002, and 2003, the President shall submit a national

strategy developed in accordance with paragraph (1) to the

Congress.

(3) Separate presentation of classified material. - Any part of

the strategy that involves information which is properly

classified under criteria established by Executive Order shall be

submitted to the Congress separately in classified form.

(b) Development of Strategy. - The national strategy for

combating money laundering and related financial crimes shall

address any area the President, acting through the Secretary and in

consultation with the Attorney General, considers appropriate,

including the following:

(1) Goals, objectives, and priorities. - Comprehensive,

research-based goals, objectives, and priorities for reducing

money laundering and related financial crime in the United

States.

(2) Prevention. - Coordination of regulatory and other efforts

to prevent the exploitation of financial systems in the United

States for money laundering and related financial crimes,

including a requirement that the Secretary shall -

(A) regularly review enforcement efforts under this

subchapter and other provisions of law and, when appropriate,

modify existing regulations or prescribe new regulations for

purposes of preventing such criminal activity; and

(B) coordinate prevention efforts and other enforcement

action with the Board of Governors of the Federal Reserve

System, the Securities and Exchange Commission, the Federal

Trade Commission, other Federal banking agencies, the National

Credit Union Administration Board, and such other Federal

agencies as the Secretary, in consultation with the Attorney

General, determines to be appropriate.

(3) Detection and prosecution initiatives. - A description of

operational initiatives to improve detection and prosecution of

money laundering and related financial crimes and the seizure and

forfeiture of proceeds and instrumentalities derived from such

crimes.

(4) Enhancement of the role of the private financial sector in

prevention. - The enhancement of partnerships between the private

financial sector and law enforcement agencies with regard to the

prevention and detection of money laundering and related

financial crimes, including providing incentives to strengthen

internal controls and to adopt on an industrywide basis more

effective policies.

(5) Enhancement of intergovernmental cooperation. - The

enhancement of -

(A) cooperative efforts between the Federal Government and

State and local officials, including State and local

prosecutors and other law enforcement officials; and

(B) cooperative efforts among the several States and between

State and local officials, including State and local

prosecutors and other law enforcement officials,

for financial crimes control which could be utilized or should be

encouraged.

(6) Project and budget priorities. - A 3-year projection for

program and budget priorities and achievable projects for

reductions in financial crimes.

(7) Assessment of funding. - A complete assessment of how the

proposed budget is intended to implement the strategy and whether

the funding levels contained in the proposed budget are

sufficient to implement the strategy.

(8) Designated areas. - A description of geographical areas

designated as "high-risk money laundering and related financial

crime areas" in accordance with, but not limited to, section

5342.

(9) Persons consulted. - Persons or officers consulted by the

Secretary pursuant to subsection (d).

(10) Data regarding trends in money laundering and related

financial crimes. - The need for additional information necessary

for the purpose of developing and analyzing data in order to

ascertain financial crime trends.

(11) Improved communications systems. - A plan for enhancing

the compatibility of automated information and facilitating

access of the Federal Government and State and local governments

to timely, accurate, and complete information.

(12) Data regarding funding of terrorism. - Data concerning

money laundering efforts related to the funding of acts of

international terrorism, and efforts directed at the prevention,

detection, and prosecution of such funding.

(c) Effectiveness Report. - At the time each national strategy

for combating financial crimes is transmitted by the President to

the Congress (other than the first transmission of any such

strategy) pursuant to subsection (a), the Secretary shall submit a

report containing an evaluation of the effectiveness of policies to

combat money laundering and related financial crimes.

(d) Consultations. - In addition to the consultations required

under this section with the Attorney General, in developing the

national strategy for combating money laundering and related

financial crimes, the Secretary shall consult with -

(1) the Board of Governors of the Federal Reserve System and

other Federal banking agencies and the National Credit Union

Administration Board;

(2) State and local officials, including State and local

prosecutors;

(3) the Securities and Exchange Commission;

(4) the Commodities and Futures Trading Commission;

(5) the Director of the Office of National Drug Control Policy,

with respect to money laundering and related financial crimes

involving the proceeds of drug trafficking;

(6) the Chief of the United States Postal Inspection Service;

(7) to the extent appropriate, State and local officials

responsible for financial institution and financial market

regulation;

(8) any other State or local government authority, to the

extent appropriate;

(9) any other Federal Government authority or instrumentality,

to the extent appropriate; and

(10) representatives of the private financial services sector,

to the extent appropriate.

-SOURCE-

(Added Pub. L. 105-310, Sec. 2(a), Oct. 30, 1998, 112 Stat. 2942;

amended Pub. L. 107-56, title III, Sec. 354, Oct. 26, 2001, 115

Stat. 323.)

-MISC1-

AMENDMENTS

2001 - Subsec. (b)(12). Pub. L. 107-56 added par. (12).

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5342, 5354 of this title.

-End-

-CITE-

31 USC Sec. 5342 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER III - MONEY LAUNDERING AND RELATED FINANCIAL CRIMES

Part 1 - National Money Laundering and Related Financial Crimes

Strategy

-HEAD-

Sec. 5342. High-risk money laundering and related financial crime

areas

-STATUTE-

(a) Findings and Purpose. -

(1) Findings. - The Congress finds the following:

(A) Money laundering and related financial crimes frequently

appear to be concentrated in particular geographic areas,

financial systems, industry sectors, or financial institutions.

(B) While the Secretary has the responsibility to act with

regard to Federal offenses which are being committed in a

particular locality or are directed at a single institution,

because modern financial systems and institutions are

interconnected to a degree which was not possible until

recently, money laundering and other related financial crimes

are likely to have local, State, national, and international

effects wherever they are committed.

(2) Purpose and objective. - It is the purpose of this section

to provide a mechanism for designating any area where money

laundering or a related financial crime appears to be occurring

at a higher than average rate such that -

(A) a comprehensive approach to the problem of such crime in

such area can be developed, in cooperation with State and local

law enforcement agencies, which utilizes the authority of the

Secretary to prevent such activity; or

(B) such area can be targeted for law enforcement action.

(b) Element of National Strategy. - The designation of certain

areas as areas in which money laundering and related financial

crimes are extensive or present a substantial risk shall be an

element of the national strategy developed pursuant to section

5341(b).

(c) Designation of Areas. -

(1) Designation by secretary. - The Secretary, after taking

into consideration the factors specified in subsection (d), shall

designate any geographical area, industry, sector, or institution

in the United States in which money laundering and related

financial crimes are extensive or present a substantial risk as a

"high-risk money laundering and related financial crimes area".

(2) Case-by-case determination in consultation with the

attorney general. - In addition to the factors specified in

subsection (d), any designation of any area under paragraph (1)

shall be made on the basis of a determination by the Secretary,

in consultation with the Attorney General, that the particular

area, industry, sector, or institution is being victimized by, or

is particularly vulnerable to, money laundering and related

financial crimes.

(3) Specific initiatives. - Any head of a department, bureau,

or law enforcement agency, including any State or local

prosecutor, involved in the detection, prevention, and

suppression of money laundering and related financial crimes and

any State or local official or prosecutor may submit -

(A) a written request for the designation of any area as a

high-risk money laundering and related financial crimes area;

or

(B) a written request for funding under section 5351 for a

specific prevention or enforcement initiative, or to determine

the extent of financial criminal activity, in an area.

(d) Factors. - In considering the designation of any area as a

high-risk money laundering and related financial crimes area, the

Secretary shall, to the extent appropriate and in consultation with

the Attorney General, take into account the following factors:

(1) The population of the area.

(2) The number of bank and nonbank financial institution

transactions which originate in such area or involve institutions

located in such area.

(3) The number of stock or commodities transactions which

originate in such area or involve institutions located in such

area.

(4) Whether the area is a key transportation hub with any

international ports or airports or an extensive highway system.

(5) Whether the area is an international center for banking or

commerce.

(6) The extent to which financial crimes and financial

crime-related activities in such area are having a harmful impact

in other areas of the country.

(7) The number or nature of requests for information or

analytical assistance which -

(A) are made to the analytical component of the Department of

the Treasury; and

(B) originate from law enforcement or regulatory authorities

located in such area or involve institutions or businesses

located in such area or residents of such area.

(8) The volume or nature of suspicious activity reports

originating in the area.

(9) The volume or nature of currency transaction reports or

reports of cross-border movements of currency or monetary

instruments originating in, or transported through, the area.

(10) Whether, and how often, the area has been the subject of a

geographical targeting order.

(11) Observed changes in trends and patterns of money

laundering activity.

(12) Unusual patterns, anomalies, growth, or other changes in

the volume or nature of core economic statistics or indicators.

(13) Statistics or indicators of unusual or unexplained volumes

of cash transactions.

(14) Unusual patterns, anomalies, or changes in the volume or

nature of transactions conducted through financial institutions

operating within or outside the United States.

(15) The extent to which State and local governments and State

and local law enforcement agencies have committed resources to

respond to the financial crime problem in the area and the degree

to which the commitment of such resources reflects a

determination by such government and agencies to address the

problem aggressively.

(16) The extent to which a significant increase in the

allocation of Federal resources to combat financial crimes in

such area is necessary to provide an adequate State and local

response to financial crimes and financial crime-related

activities in such area.

-SOURCE-

(Added Pub. L. 105-310, Sec. 2(a), Oct. 30, 1998, 112 Stat. 2944.)

-MISC1-

REPORT AND RECOMMENDATIONS

Pub. L. 105-310, Sec. 2(c), Oct. 30, 1998, 112 Stat. 2949,

provided that: "Before the end of the 5-year period beginning on

the date the first national strategy for combating money laundering

and related financial crimes is submitted to the Congress pursuant

to section 5341(a)(1) of title 31, United States Code (as added by

section 2(a) of this Act), the Secretary of the Treasury, in

consultation with the Attorney General, shall submit a report to

the Committee on Banking and Financial Services [now Committee on

Financial Services] and the Committee on the Judiciary of the House

of Representatives and the Committee on Banking, Housing, and Urban

Affairs and the Committee on the Judiciary of the Senate on the

effectiveness of and the need for the designation of areas, under

section 5342 of title 31, United States Code (as added by such

section 2(a)), as high-risk money laundering and related financial

crime areas, together with recommendations for such legislation as

the Secretary and the Attorney General may determine to be

appropriate to carry out the purposes of such section."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5341 of this title.

-End-

-CITE-

31 USC Part 2 - Financial Crime-Free Communities Support

Program 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER III - MONEY LAUNDERING AND RELATED FINANCIAL CRIMES

Part 2 - Financial Crime-Free Communities Support Program

-HEAD-

PART 2 - FINANCIAL CRIME-FREE COMMUNITIES SUPPORT PROGRAM

-End-

-CITE-

31 USC Sec. 5351 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER III - MONEY LAUNDERING AND RELATED FINANCIAL CRIMES

Part 2 - Financial Crime-Free Communities Support Program

-HEAD-

Sec. 5351. Establishment of financial crime-free communities

support program

-STATUTE-

(a) Establishment. - The Secretary of the Treasury, in

consultation with the Attorney General, shall establish a program

to support local law enforcement efforts in the development and

implementation of a program for the detection, prevention, and

suppression of money laundering and related financial crimes.

(b) Program. - In carrying out the program, the Secretary of the

Treasury, in consultation with the Attorney General, shall -

(1) make and track grants to grant recipients;

(2) provide for technical assistance and training, data

collection, and dissemination of information on state-of-the-art

practices that the Secretary determines to be effective in

detecting, preventing, and suppressing money laundering and

related financial crimes; and

(3) provide for the general administration of the program.

(c) Administration. - The Secretary shall appoint an

administrator to carry out the program.

(d) Contracting. - The Secretary may employ any necessary staff

and may enter into contracts or agreements with Federal and State

law enforcement agencies to delegate authority for the execution of

grants and for such other activities necessary to carry out this

chapter.

-SOURCE-

(Added Pub. L. 105-310, Sec. 2(a), Oct. 30, 1998, 112 Stat. 2946.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5342 of this title.

-End-

-CITE-

31 USC Sec. 5352 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER III - MONEY LAUNDERING AND RELATED FINANCIAL CRIMES

Part 2 - Financial Crime-Free Communities Support Program

-HEAD-

Sec. 5352. Program authorization

-STATUTE-

(a) Grant Eligibility. - To be eligible to receive an initial

grant or a renewal grant under this part, a State or local law

enforcement agency or prosecutor shall meet each of the following

criteria:

(1) Application. - The State or local law enforcement agency or

prosecutor shall submit an application to the Secretary in

accordance with section 5353(a)(2).

(2) Accountability. - The State or local law enforcement agency

or prosecutor shall -

(A) establish a system to measure and report outcomes -

(i) consistent with common indicators and evaluation

protocols established by the Secretary, in consultation with

the Attorney General; and

(ii) approved by the Secretary;

(B) conduct biennial surveys (or incorporate local surveys in

existence at the time of the evaluation) to measure the

progress and effectiveness of the coalition; and

(C) provide assurances that the entity conducting an

evaluation under this paragraph, or from which the applicant

receives information, has experience in gathering data related

to money laundering and related financial crimes.

(b) Grant Amounts. -

(1) Grants. -

(A) In general. - Subject to subparagraph (D), for a fiscal

year, the Secretary of the Treasury, in consultation with the

Attorney General, may grant to an eligible applicant under this

section for that fiscal year, an amount determined by the

Secretary of the Treasury, in consultation with the Attorney

General, to be appropriate.

(B) Suspension of grants. - If such grant recipient fails to

continue to meet the criteria specified in subsection (a), the

Secretary may suspend the grant, after providing written notice

to the grant recipient and an opportunity to appeal.

(C) Renewal grants. - Subject to subparagraph (D), the

Secretary may award a renewal grant to a grant recipient under

this subparagraph for each fiscal year following the fiscal

year for which an initial grant is awarded.

(D) Limitation. - The amount of a grant award under this

paragraph may not exceed $750,000 for a fiscal year.

(2) Grant awards. -

(A) In general. - Except as provided in subparagraph (B), the

Secretary may, with respect to a community, make a grant to one

eligible applicant that represents that community.

(B) Exception. - The Secretary may make a grant to more than

one eligible applicant that represent (!1) a community if -

(i) the eligible coalitions demonstrate that the coalitions

are collaborating with one another; and

(ii) each of the coalitions has independently met the

requirements set forth in subsection (a).

(c) Condition Relating to Proceeds of Asset Forfeitures. -

(1) In general. - No grant may be made or renewed under this

part to any State or local law enforcement agency or prosecutor

unless the agency or prosecutor agrees to donate to the Secretary

of the Treasury for the program established under this part any

amount received by such agency or prosecutor (after the grant is

made) pursuant to any criminal or civil forfeiture under chapter

46 of title 18, United States Code, or any similar provision of

State law.

(2) Scope of application. - Paragraph (1) shall not apply to

any amount received by a State or local law enforcement agency or

prosecutor pursuant to any criminal or civil forfeiture referred

to in such paragraph in excess of the aggregate amount of grants

received by such agency or prosecutor under this part.

(d) Rolling Grant Application Periods. - In establishing the

program under this part, the Secretary shall take such action as

may be necessary to ensure, to the extent practicable, that -

(1) applications for grants under this part may be filed at any

time during a fiscal year; and

(2) some portion of the funds appropriated under this part for

any such fiscal year will remain available for grant applications

filed later in the fiscal year.

-SOURCE-

(Added Pub. L. 105-310, Sec. 2(a), Oct. 30, 1998, 112 Stat. 2946.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5353 of this title.

-FOOTNOTE-

(!1) So in original. Probably should be "represents".

-End-

-CITE-

31 USC Sec. 5353 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER III - MONEY LAUNDERING AND RELATED FINANCIAL CRIMES

Part 2 - Financial Crime-Free Communities Support Program

-HEAD-

Sec. 5353. Information collection and dissemination with respect to

grant recipients

-STATUTE-

(a) Applicant and Grantee Information. -

(1) Application process. - The Secretary shall issue requests

for proposal, as necessary, regarding, with respect to the grants

awarded under section 5352, the application process, grant

renewal, and suspension or withholding of renewal grants. Each

application under this paragraph shall be in writing and shall be

subject to review by the Secretary.

(2) Reporting. - The Secretary shall, to the maximum extent

practicable and in a manner consistent with applicable law,

minimize reporting requirements by a grant recipient and expedite

any application for a renewal grant made under this part.

(b) Activities of Secretary. - The Secretary may -

(1) evaluate the utility of specific initiatives relating to

the purposes of the program;

(2) conduct an evaluation of the program; and

(3) disseminate information described in this subsection to -

(A) eligible State local law enforcement agencies or

prosecutors; and

(B) the general public.

-SOURCE-

(Added Pub. L. 105-310, Sec. 2(a), Oct. 30, 1998, 112 Stat. 2948.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5352 of this title.

-End-

-CITE-

31 USC Sec. 5354 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER III - MONEY LAUNDERING AND RELATED FINANCIAL CRIMES

Part 2 - Financial Crime-Free Communities Support Program

-HEAD-

Sec. 5354. Grants for fighting money laundering and related

financial crimes

-STATUTE-

(a) In General. - After the end of the 1-year period beginning on

the date the first national strategy for combating money laundering

and related financial crimes is submitted to the Congress in

accordance with section 5341, and subject to subsection (b), the

Secretary may review, select, and award grants for State or local

law enforcement agencies and prosecutors to provide funding

necessary to investigate and prosecute money laundering and related

financial crimes in high-risk money laundering and related

financial crime areas.

(b) Special Preference. - Special preference shall be given to

applications submitted to the Secretary which demonstrate

collaborative efforts of two or more State and local law

enforcement agencies or prosecutors who have a history of Federal,

State, and local cooperative law enforcement and prosecutorial

efforts in responding to such criminal activity.

-SOURCE-

(Added Pub. L. 105-310, Sec. 2(a), Oct. 30, 1998, 112 Stat. 2948.)

-End-

-CITE-

31 USC Sec. 5355 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE IV - MONEY

CHAPTER 53 - MONETARY TRANSACTIONS

SUBCHAPTER III - MONEY LAUNDERING AND RELATED FINANCIAL CRIMES

Part 2 - Financial Crime-Free Communities Support Program

-HEAD-

Sec. 5355. Authorization of appropriations

-STATUTE-

There are authorized to be appropriated the following amounts for

the following fiscal years to carry out the purposes of this

subchapter:

For fiscal year: The amount authorized is:

--------------------------------------------------------------------

1999 $5,000,000.

2000 $7,500,000.

2001 $10,000,000.

2002 $12,500,000.

2003 $15,000,000.

--------------------------------------------------------------------

-SOURCE-

(Added Pub. L. 105-310, Sec. 2(a), Oct. 30, 1998, 112 Stat. 2948.)

-End-

-CITE-

31 USC SUBTITLE V - GENERAL ASSISTANCE ADMINISTRATION 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE V - GENERAL ASSISTANCE ADMINISTRATION

-HEAD-

SUBTITLE V - GENERAL ASSISTANCE ADMINISTRATION

-MISC1-

Chap. Sec.

61. Program Information 6101

62. Consolidated Federal Funds Report 6201

63. Using Procurement Contracts and Grant and

Cooperative Agreements 6301

65. Intergovernmental Cooperation 6501

67. Federal payments (!1) 6701

69. Payment for Entitlement Land 6901

71. Joint Funding Simplification 7101

73. Administering Block Grants 7301

75. Requirements for Single Audits 7501

77. Access to information for debt collection (!1) 7701

AMENDMENTS

1996 - Pub. L. 104-134, title III, Sec. 31001(i)(3)(B), Apr. 26,

1996, 110 Stat. 1321-365, which directed that the table of chapters

for subtitle VI of this title be amended by inserting a new item

for chapter 77 "Access to information for debt collection" before

the item for chapter 91, was executed to the table of chapters for

subtitle V of this title by substituting "Access to information for

debt collection" for "Loan Requirements" in item for chapter 77, to

reflect the probable intent of Congress.

1994 - Pub. L. 103-322, title III, Sec. 31002, Sept. 13, 1994,

108 Stat. 1882, added item for chapter 67.

Pub. L. 103-272, Sec. 4(f)(1)(Y)(ii), July 5, 1994, 108 Stat.

1363, added item for chapter 77.

1986 - Pub. L. 99-547, Sec. 2(c), Oct. 27, 1986, 100 Stat. 3060,

added item for chapter 62.

Pub. L. 99-272, title XIV, Sec. 14001(b)(1), Apr. 7, 1986, 100

Stat. 328, struck out item for chapter 67 "Revenue Sharing".

1984 - Pub. L. 98-502, Sec. 2(c), Oct. 19, 1984, 98 Stat. 2334,

added item for chapter 75.

-FOOTNOTE-

(!1) So in original. Probably should be capitalized.

-End-