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12 USC CHAPTER 21 - FINANCIAL RECORDKEEPING 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 21 - FINANCIAL RECORDKEEPING

.

-HEAD-

CHAPTER 21 - FINANCIAL RECORDKEEPING

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Sec.

1951. Congressional findings and declaration of purpose.

1952. Reports on ownership and control.

1953. Recordkeeping and procedures.

(a) Regulations.

(b) Institutions subject to recordkeeping

requirements.

(c) Acceptance of automated records.

1954. Injunctions.

1955. Civil penalties.

1956. Criminal penalty.

1957. Additional criminal penalty in certain cases.

1958. Compliance.

1959. Administrative procedure.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in section 3401 of this title; title

15 section 6802; title 31 sections 310, 5318, 9703.

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12 USC Sec. 1951 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 21 - FINANCIAL RECORDKEEPING

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Sec. 1951. Congressional findings and declaration of purpose

-STATUTE-

(a) The Congress finds that certain records maintained by

businesses engaged in the functions described in section 1953(b) of

this title have a high degree of usefulness in criminal, tax, and

regulatory investigations and proceedings. The Congress further

finds that the power to require reports of changes in the

ownership, control, and managements of types of financial

institutions referred to in section 1952 of this title may be

necessary for the same purpose.

(b) It is the purpose of this chapter to require the maintenance

of appropriate types of records and the making of appropriate

reports by such businesses in the United States where such records

or reports have a high degree of usefulness in criminal, tax, or

regulatory investigations or proceedings.

-SOURCE-

(Pub. L. 91-508, title I, Sec. 121, Oct. 26, 1970, 84 Stat. 1116.)

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EFFECTIVE DATE

Section 401(a), (b) of Pub. L. 91-508 provided that:

''(a) Except as otherwise provided in this section, titles I, II,

and III of this Act and the amendments made thereby (enacting this

chapter and sections 1730d and 1829b of this title and section 1051

et seq. of former Title 31, Money and Finance, amending section 78g

of Title 15, Commerce and Trade, and enacting provisions set out as

notes under section 78g of Title 15 and section 1051 of former

Title 31) take effect on the first day of the seventh calendar

month which begins after the date of enactment (Oct. 26, 1970).

''(b) The Secretary of the Treasury may by regulation provide

that any provision of title I or II or any amendment made thereby

(enacting this chapter and sections 1730d and 1829b of this title)

shall be effective on any date not earlier than the publication of

the regulation in the Federal Register and not later than the first

day of the thirteenth calendar month which begins after the date of

enactment (Oct. 26, 1970).''

SHORT TITLE

Title I of Pub. L. 91-508, title II of Pub. L. 91-508, titles I

and II of Pub. L. 91-508, and subchapter II of chapter 53 of Title

31, Money and Finance, have each been popularly known as the ''Bank

Secrecy Act''. Title I of Pub. L. 91-508, Oct. 26, 1970, 84 Stat.

1114, as amended, enacted this chapter, former section 1730d of

this title, and section 1829b of this title. Title II of Pub. L.

91-508, Oct. 26, 1970, 84 Stat. 1118, as amended, also known as the

Currency and Foreign Transactions Reporting Act, enacted chapter 21

(Sec. 1051 et seq.) of former Title 31, Money and Finance, which

was repealed and reenacted as subchapter II of chapter 53 of Title

31, Money and Finance, by Pub. L. 97-258, Sec. 4(b), Sept. 13,

1982, 96 Stat. 1067, the first section of which enacted Title 31.

For complete classification of Pub. L. 91-508 to the Code, see

Tables.

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12 USC Sec. 1952 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 21 - FINANCIAL RECORDKEEPING

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Sec. 1952. Reports on ownership and control

-STATUTE-

Where the Secretary determines that the making of appropriate

reports by uninsured banks or uninsured institutions of any type

with respect to their ownership, control, and managements and any

changes therein has a high degree of usefulness in criminal, tax,

or regulatory investigations or proceedings, he may by regulation

require such banks or institutions to make such reports as he

determines in respect of such ownership, control, and managements

and changes therein.

-SOURCE-

(Pub. L. 91-508, title I, Sec. 122, Oct. 26, 1970, 84 Stat. 1116.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1951 of this title.

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12 USC Sec. 1953 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 21 - FINANCIAL RECORDKEEPING

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Sec. 1953. Recordkeeping and procedures

-STATUTE-

(a) Regulations

If the Secretary determines that the maintenance of appropriate

records and procedures by any uninsured bank or uninsured

institution, or any person engaging in the business of carrying on

in the United States any of the functions referred to in subsection

(b) of this section, has a high degree of usefulness in criminal,

tax, or regulatory investigations or proceedings, and that, given

the threat posed to the security of the Nation on and after the

terrorist attacks against the United States on September 11, 2001,

such records may also have a high degree of usefulness in the

conduct of intelligence or counterintelligence activities,

including analysis, to protect against international terrorism, he

may by regulation require such bank, institution, or person.

(b) Institutions subject to recordkeeping requirements

The authority of the Secretary of the Treasury under subsection

(a) of this section extends to any financial institution (as

defined in section 5312(a)(2) of title 31), other than any insured

bank (as defined in section 1813(h) of this title) and any insured

institution (as defined in section 1724(a) (FOOTNOTE 1) of this

title), and any partner, officer, director, or employee of any such

financial institution.

(FOOTNOTE 1) See References in Text note below.

(c) Acceptance of automated records

The Secretary shall permit an uninsured bank or financial

institution to retain or maintain records referred to in subsection

(a) of this section in electronic or automated form, subject to

terms and conditions established by the Secretary.

-SOURCE-

(Pub. L. 91-508, title I, Sec. 123, Oct. 26, 1970, 84 Stat. 1116;

Pub. L. 100-690, title VI, Sec. 6185(d)(3)(A), Nov. 18, 1988, 102

Stat. 4357; Pub. L. 103-325, title III, Sec. 310, Sept. 23, 1994,

108 Stat. 2221; Pub. L. 107-56, title III, Sec. 358(e), Oct. 26,

2001, 115 Stat. 327.)

-REFTEXT-

REFERENCES IN TEXT

Section 1724 of this title, referred to in subsec. (b), was

repealed by Pub. L. 101-73, title IV, Sec. 407, Aug. 9, 1989, 103

Stat. 363.

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AMENDMENTS

2001 - Subsec. (a). Pub. L. 107-56 amended subsec. (a)

generally. Prior to amendment, subsec. (a) read as follows:

''Where the Secretary determines that the maintenance of

appropriate records and procedures by any uninsured bank or

uninsured institution, or any person engaging in the business of

carrying on in the United States any of the functions referred to

in subsection (b) of this section, has a high degree of usefulness

in criminal, tax, or regulatory investigations or proceedings, he

may by regulation require such bank, institution, or person -

''(1) to require, retain, or maintain, with respect to its

functions as an uninsured bank or uninsured institution or its

functions referred to in subsection (b) of this section, any

records or evidence of any type which the Secretary is authorized

under section 1829b of this title to require insured banks to

require, retain, or maintain; and

''(2) to maintain procedures to assure compliance with

requirements imposed under this chapter. For the purposes of any

civil or criminal penalty, a separate violation of any

requirement under this paragraph occurs with respect to each day

and each separate office, branch, or place of business in which

the violation occurs or continues.''

1994 - Subsec. (c). Pub. L. 103-325 added subsec. (c).

1988 - Subsec. (b). Pub. L. 100-690 amended subsec. (b)

generally. Prior to amendment, subsec. (b) read as follows: ''The

authority of the Secretary under this section extends to any person

engaging in the business of carrying on any of the following

functions:

''(1) Issuing or redeeming checks, money orders, travelers'

checks, or similar instruments, except as an incident to the

conduct of its own nonfinancial business.

''(2) Transferring funds or credits domestically or

internationally.

''(3) Operating a currency exchange or otherwise dealing in

foreign currencies or credits.

''(4) Operating a credit card system.

''(5) Performing such similar, related, or substitute functions

for any of the foregoing or for banking as may be specified by

the Secretary in regulations.''

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 Title 31, Money and Finance.

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 this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1951 of this title; title

31 sections 5321, 5322, 5324.

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12 USC Sec. 1954 01/06/03

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CHAPTER 21 - FINANCIAL RECORDKEEPING

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Sec. 1954. Injunctions

-STATUTE-

Whenever it appears to the Secretary that any person has engaged,

is engaged, or is about to engage in any acts or practices

constituting a violation of any regulation under this chapter, he

may in his discretion bring an action, in the proper district court

of the United States or the proper United States court of any

territory or other place subject to the jurisdiction of the United

States, to enjoin such acts or practices, and upon a proper showing

a permanent or temporary injunction or restraining order shall be

granted without bond. Upon application of the Secretary, any such

court may also issue mandatory injunctions commanding any person to

comply with any regulation of the Secretary under this chapter.

-SOURCE-

(Pub. L. 91-508, title I, Sec. 124, Oct. 26, 1970, 84 Stat. 1117.)

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12 USC Sec. 1955 01/06/03

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CHAPTER 21 - FINANCIAL RECORDKEEPING

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Sec. 1955. Civil penalties

-STATUTE-

(a) For each willful or grossly negligent violation of any

regulation under this chapter, the Secretary may assess upon any

person to which the regulation applies, or any person willfully

causing a violation of the regulation, and, if such person is a

partnership, corporation, or other entity, upon any partner,

director, officer, or employee thereof who willfully or through

gross negligence participates in the violation, a civil penalty not

exceeding $10,000.

(b) In the event of the failure of any person to pay any penalty

assessed under this section, a civil action for the recovery

thereof may, in the discretion of the Secretary, be brought in the

name of the United States.

-SOURCE-

(Pub. L. 91-508, title I, Sec. 125, Oct. 26, 1970, 84 Stat. 1117;

Pub. L. 100-690, title VI, Sec. 6185(d)(3)(B), Nov. 18, 1988, 102

Stat. 4357; Pub. L. 102-550, title XV, Sec. 1535(c)(1), Oct. 28,

1992, 106 Stat. 4067.)

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AMENDMENTS

1992 - Subsec. (a). Pub. L. 102-550 inserted ''or any person

willfully causing a violation of the regulation,'' after

''applies,''.

1988 - Subsec. (a). Pub. L. 100-690 inserted ''or grossly

negligent'' after ''willful'' and ''or through gross negligence''

after ''willfully'' and substituted ''$10,000'' for ''$1,000''.

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12 USC Sec. 1956 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 21 - FINANCIAL RECORDKEEPING

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Sec. 1956. Criminal penalty

-STATUTE-

Whoever willfully violates any regulation under this chapter

shall be fined not more than $1,000 or imprisoned not more than one

year, or both.

-SOURCE-

(Pub. L. 91-508, title I, Sec. 126, Oct. 26, 1970, 84 Stat. 1118.)

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12 USC Sec. 1957 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 21 - FINANCIAL RECORDKEEPING

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Sec. 1957. Additional criminal penalty in certain cases

-STATUTE-

Whoever willfully violates, or willfully causes a violation of

any regulation under this chapter, section 1829b of this title, or

section 1730d (FOOTNOTE 1) of this title, where the violation is

committed in furtherance of the commission of any violation of

Federal law punishable by imprisonment for more than one year,

shall be fined not more than $10,000 or imprisoned not more than

five years, or both.

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(Pub. L. 91-508, title I, Sec. 127, Oct. 26, 1970, 84 Stat. 1118;

Pub. L. 102-550, title XV, Sec. 1535(c)(2), Oct. 28, 1992, 106

Stat. 4067.)

-REFTEXT-

REFERENCES IN TEXT

Section 1730d of this title, referred to in text, was repealed by

Pub. L. 101-73, title IV, Sec. 407, Aug. 9, 1989, 103 Stat. 363.

-MISC2-

AMENDMENTS

1992 - Pub. L. 102-550 inserted '', or willfully causes a

violation of'' after ''Whoever willfully violates''.

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12 USC Sec. 1958 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 21 - FINANCIAL RECORDKEEPING

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Sec. 1958. Compliance

-STATUTE-

The Secretary shall have the responsibility to assure compliance

with the requirements of this chapter and sections 1730d (FOOTNOTE

1) and 1829b of this title and may delegate such responsibility to

the appropriate bank supervisory agency, or other supervisory

agency.

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(Pub. L. 91-508, title I, Sec. 128, Oct. 26, 1970, 84 Stat. 1118.)

-REFTEXT-

REFERENCES IN TEXT

Section 1730d of this title, referred to in text, was repealed by

Pub. L. 101-73, title IV, Sec. 407, Aug. 9, 1989, 103 Stat. 363.

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12 USC Sec. 1959 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 21 - FINANCIAL RECORDKEEPING

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Sec. 1959. Administrative procedure

-STATUTE-

The administrative procedure and judicial review provisions of

subchapter II of chapter 5 and chapter 7 of title 5 shall apply to

all proceedings under this chapter, section 1829b of this title,

and section 1730d (FOOTNOTE 1) of this title.

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(Pub. L. 91-508, title I, Sec. 129, Oct. 26, 1970, 84 Stat. 1118.)

-REFTEXT-

REFERENCES IN TEXT

Section 1730d of this title, referred to in text, was repealed by

Pub. L. 101-73, title IV, Sec. 407, Aug. 9, 1989, 103 Stat. 363.

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