31 CFR Part 1010 — General Provisions

PART 1010—GENERAL PROVISIONS Authority: 12 U.S.C. 1829b and 1951-1959; 31 U.S.C. 5311-5314, 5316-5336; title III, sec. 314 Pub. L. 107-56, 115 Stat. 307; sec. 2006, Pub. L. 114-41, 129 Stat. 457; sec. 701 Pub. L. 114-74, 129 Stat. 599; sec. 6403, Pub. L. 116-283, 134 Stat. 3388. Source: 75 FR 65812, Oct. 26, 2010, unless otherwise noted. Subpart A—General Definitions § 1010.100 General definitions. Link to an amendment published at 89 FR 72274, Sept. 4, 2024. This amendment was delayed until Jan. 1, 2028, at 91 FR 36, Jan. 2, 2026. When used in this chapter and in forms prescribed under this chapter, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meanings ascribed in this subpart. Terms applicable to a particular type of financial institution or specific part or subpart of this chapter are located in that part or subpart. Terms may have different meanings in different parts or subparts. (a) Accept. (b) At one time. (1) That person either alone, in conjunction with or on behalf of others; (2) Transports, mails, ships or receives in any manner; is about to transport, mail or ship in any manner; or causes the transportation, mailing, shipment or receipt in any manner of; (3) Monetary instruments; (4) Into the United States or out of the United States; (5) Totaling more than $10,000; (6)(i) On one calendar day; or (ii) If for the purpose of evading the reporting requirements of § 1010.340, on one or more days. (c) Attorney General. (d) Bank. (1) A commercial bank or trust company organized under the laws of any State or of the United States; (2) A private bank; (3) A savings and loan association or a building and loan association organized under the laws of any State or of the United States; (4) An insured institution as defined in section 401 of the National Housing Act; (5) A savings bank, industrial bank or other thrift institution; (6) A credit union organized under the law of any State or of the United States; (7) Any other organization (except a money services business) chartered under the banking laws of any state and subject to the supervision of the bank supervisory authorities of a State; (8) A bank organized under foreign law; (9) Any national banking association or corporation acting under the provisions of section 25(a) of the Act of Dec. 23, 1913, as added by the Act of Dec. 24, 1919, ch. 18, 41 Stat. 378, as amended (12 U.S.C. 611-32). (e) Bank Secrecy Act. (f) Beneficiary. (g) Beneficiary's bank. (h) Broker or dealer in securities. (i) Business day. (j) Commodity. (k) Common carrier. (l) Contract of sale. (m) Currency. (n) Deposit account. (o) Domestic. (p) Established customer. e.g., (q) Execution date. (r) Federal functional regulator. (1) The Board of Governors of the Federal Reserve System; (2) The Office of the Comptroller of the Currency; (3) The Board of Directors of the Federal Deposit Insurance Corporation; (4) The Office of Thrift Supervision; (5) The National Credit Union Administration; (6) The Securities and Exchange Commission; or (7) The Commodity Futures Trading Commission. (s) FinCEN. (t) Financial institution. (1) A bank (except bank credit card systems); (2) A broker or dealer in securities; (3) A money services business as defined in paragraph (ff) of this section; (4) A telegraph company; (5)(i) Casino. (ii) For purposes of this paragraph (t)(5), “gross annual gaming revenue” means the gross gaming revenue received by a casino, during either the previous business year or the current business year of the casino. A casino or gambling casino which is a casino for purposes of this chapter solely because its gross annual gaming revenue exceeds $1,000,000 during its current business year, shall not be considered a casino for purposes of this chapter prior to the time in its current business year that its gross annual gaming revenue exceeds $1,000,000. (iii) Any reference in this chapter, other than in this paragraph (t)(5) and in paragraph (t)(6) of this section, to a casino shall also include a reference to a card club, unless the provision in question contains specific language varying its application to card clubs or excluding card clubs from its application; (6)(i) Card club. (ii) For purposes of this paragraph (t)(6), “gross annual gaming revenue” means the gross revenue derived from or generated by customer gaming activity (whether in the form of per-game or per-table fees, however computed, rentals, or otherwise) and received by an establishment, during either the establishment's previous business year or its current business year. A card club that is a financial institution for purposes of this chapter solely because its gross annual revenue exceeds $1,000,000 during its current business year, shall not be considered a financial institution for purposes of this chapter prior to the time in its current business year when its gross annual revenue exceeds $1,000,000; (7) A person subject to supervision by any state or Federal bank supervisory authority; (8) A futures commission merchant; (9) An introducing broker in commodities; or (10) A mutual fund. (u) Foreign bank. (v) Foreign financial agency. (w) Funds transfer. (x) Futures commission merchant. (y) Indian Gaming Regulatory Act. (z) Intermediary bank. (aa) Intermediary financial institution. (bb) Introducing broker-commodities. (cc) Investment security. (1) Is issued in bearer or registered form; (2) Is of a type commonly dealt in upon securities exchanges or markets or commonly recognized in any area in which it is issued or dealt in as a medium for investment; (3) Is either one of a class or series or by its terms is divisible into a class or series of instruments; and (4) Evidences a share, participation or other interest in property or in an enterprise or evidences an obligation of the issuer. (dd) Monetary instruments. (i) Currency; (ii) Traveler's checks in any form; (iii) All negotiable instruments (including personal checks, business checks, official bank checks, cashier's checks, third-party checks, promissory notes (as that term is defined in the Uniform Commercial Code), and money orders) that are either in bearer form, endorsed without restriction, made out to a fictitious payee (for the purposes of § 1010.340), or otherwise in such form that title thereto passes upon delivery; (iv) Incomplete instruments (including personal checks, business checks, official bank checks, cashier's checks, third-party checks, promissory notes (as that term is defined in the Uniform Commercial Code), and money orders) signed but with the payee's name omitted; and (v) Securities or stock in bearer form or otherwise in such form that title thereto passes upon delivery. (2) Monetary instruments do not include warehouse receipts or bills of lading. (ee) [Reserved] (ff) Money services business. , (1) Dealer in foreign exchange. (2) Check casher In general. (ii) Facts and circumstances; Limitations. (A) A person that sells prepaid access in exchange for a check (as defined in the Uniform Commercial Code), monetary instrument or other instrument; (B) A person that solely accepts monetary instruments as payment for goods or services other than check cashing services; (C) A person that engages in check cashing for the verified maker of the check who is a customer otherwise buying goods and services; (D) A person that redeems its own checks; or (E) A person that only holds a customer's check as collateral for repayment by the customer of a loan. (3) Issuer or seller of traveler's checks or money orders. (i) Issues traveler's checks or money orders that are sold in an amount greater than $1,000 to any person on any day in one or more transactions; or (ii) Sells traveler's checks or money orders in an amount greater than $1,000 to any person on any day in one or more transactions. (4) Provider of prepaid access In general. (ii) Considerations for provider determination. (A) Organizing the prepaid program; (B) Setting the terms and conditions of the prepaid program and determining that the terms have not been exceeded; (C) Determining the other businesses that will participate in the prepaid program, which may include the issuing bank, the payment processor, or the distributor; (D) Controlling or directing the appropriate party to initiate, freeze, or terminate prepaid access; and (E) Engaging in activity that demonstrates oversight and control of the prepaid program. (iii) Prepaid program. not (A) It provides closed loop prepaid access to funds not to exceed $2,000 maximum value that can be associated with a prepaid access device or vehicle on any day; (B) It provides prepaid access solely to funds provided by a Federal, State, local, Territory and Insular Possession, or Tribal government agency; (C) It provides prepaid access solely to funds from pre-tax flexible spending arrangements for health care and dependent care expenses, or from Health Reimbursement Arrangements (as defined in 26 U.S.C. 105(b) and 125) for health care expenses; or (D) ( 1 ( i ( ii ( 2 ( i ( ii ( iii (5) Money transmitter In general. and (B) Any other person engaged in the transfer of funds. (ii) Facts and circumstances; Limitations. (A) Provides the delivery, communication, or network access services used by a money transmitter to support money transmission services; (B) Acts as a payment processor to facilitate the purchase of, or payment of a bill for, a good or service through a clearance and settlement system by agreement with the creditor or seller; (C) Operates a clearance and settlement system or otherwise acts as an intermediary solely between BSA regulated institutions. This includes but is not limited to the Fedwire system, electronic funds transfer networks, certain registered clearing agencies regulated by the Securities and Exchange Commission (“SEC”), and derivatives clearing organizations, or other clearinghouse arrangements established by a financial agency or institution; (D) Physically transports currency, other monetary instruments, other commercial paper, or other value that substitutes for currency as a person primarily engaged in such business, such as an armored car, from one person to the same person at another location or to an account belonging to the same person at a financial institution, provided that the person engaged in physical transportation has no more than a custodial interest in the currency, other monetary instruments, other commercial paper, or other value at any point during the transportation; (E) Provides prepaid access; or (F) Accepts and transmits funds only integral to the sale of goods or the provision of services, other than money transmission services, by the person who is accepting and transmitting the funds. (6) U.S. Postal Service. (7) Seller of prepaid access. (i) Sells prepaid access offered under a prepaid program that can be used before verification of customer identification under § 1022.210(d)(1)(iv); or (ii) Sells prepaid access (including closed loop prepaid access) to funds that exceed $10,000 to any person during any one day, and has not implemented policies and procedures reasonably adapted to prevent such a sale. (8) Limitation. (i) A bank or foreign bank; (ii) A person registered with, and functionally regulated or examined by, the SEC or the CFTC, or a foreign financial agency that engages in financial activities that, if conducted in the United States, would require the foreign financial agency to be registered with the SEC or CFTC; or (iii) A natural person who engages in an activity identified in paragraphs (ff)(1) through (ff)(5) of this section on an infrequent basis and not for gain or profit. (gg) Mutual fund. (hh) Option on a commodity. (ii) Originator. (jj) Originator's bank. (kk) Payment date. (ll) Payment order. (1) The instruction does not state a condition to payment to the beneficiary other than time of payment; (2) The receiving bank is to be reimbursed by debiting an account of, or otherwise receiving payment from, the sender; and (3) The instruction is transmitted by the sender directly to the receiving bank or to an agent, funds transfer system, or communication system for transmittal to the receiving bank. (mm) Person. (nn) Receiving bank. (oo) Receiving financial institution. (pp) Recipient. (qq) Recipient's financial institution. (rr) Secretary. (ss) Security. (tt) Self-regulatory organization: (1) Shall have the same meaning as provided in section 3(a)(26) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(26)); and (2) Means a “registered entity” or a “registered futures association” as provided in section 1a(29) or 17, respectively, of the Commodity Exchange Act (7 U.S.C. 1a(29), 21). (uu) Sender. (vv) State. (ww) Prepaid access. (xx) Structure (structuring). (yy) Taxpayer Identification Number. e.g., (zz) Territories and Insular Possessions. (aaa) [Reserved] (bbb) Transaction. (2) For purposes of §§ 1010.311, 1010.313, 1020.315, 1021.311, 1021.313, and other provisions of this chapter relating solely to the report required by those sections, the term “transaction in currency” shall mean a transaction involving the physical transfer of currency from one person to another. A transaction which is a transfer of funds by means of bank check, bank draft, wire transfer, or other written order, and which does not include the physical transfer of currency, is not a transaction in currency for this purpose. (ccc) Transaction account. (ddd) Transmittal of funds. (eee) Transmittal order. (1) The instruction does not state a condition to payment to the recipient other than time of payment; (2) The receiving financial institution is to be reimbursed by debiting an account of, or otherwise receiving payment from, the sender; and (3) The instruction is transmitted by the sender directly to the receiving financial institution or to an agent or communication system for transmittal to the receiving financial institution. (fff) Transmittor. (ggg) Transmittor's financial institution. (hhh) United States. (iii) U.S. person. (jjj) U.S. Postal Service. (kkk) Closed loop prepaid access. (lll) Loan or finance company. (1) Residential mortgage lender or originator. (i) Residential mortgage lender. (ii) Residential mortgage originator. (iii) Residential mortgage loan. (A) A residential structure that contains one to four units, including, if used as a residence, an individual condominium unit, cooperative unit, mobile home or trailer; or (B) Residential real estate upon which such a structure is constructed or intended to be constructed. (2) [Reserved] (mmm) Housing government sponsored enterprise. (i) The Federal National Mortgage Association; (ii) The Federal Home Loan Mortgage Corporation; or (iii) Each Federal Home Loan Bank. (2) The term “housing government sponsored enterprise” does not include any “Entity-Affiliated Party,” as defined in 12 U.S.C. 4502(11). [75 FR 65812, Oct. 26, 2010, as amended at 76 FR 43596, July 21, 2011; 76 FR 45419, July 29, 2011; 77 FR 8157, Feb. 14, 2012; 78 FR 72817, Dec. 4, 2013; 79 FR 10375, Feb. 25, 2014] Subpart B—Programs § 1010.200 General. Each financial institution (as defined in 31 U.S.C. 5312(a)(2) or (c)(1)) should refer to subpart B of its chapter X Part for any additional program requirements. Unless otherwise indicated, the program requirements contained in this subpart B apply to all financial institutions (as defined in 31 U.S.C. 5312(a)(2) or (c)(1)). § 1010.205 Exempted anti-money laundering programs for certain financial institutions. (a) Exempt financial institutions. (1) 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 31 U.S.C. 5312(a)(2); and (2) [Reserved] (b) Temporary exemption for certain financial institutions. (i) Pawnbroker; (ii) Travel agency; (iii) Telegraph company; (iv) Seller of vehicles, including automobiles, airplanes, and boats; (v) Person involved in real estate closings and settlements; (vi) Commodity pool operator; (vii) Commodity trading advisor; or (viii) Investment company. (2)—(3) [Reserved] (c) Limitation on exemption. (d) Compliance obligations of deferred financial institutions. [75 FR 65812, Oct. 26, 2010, as amended at 77 FR 8157, Feb. 14, 2012; 85 FR 57137, Sept. 15, 2020] § 1010.210 Anti-money laundering programs. Each financial institution (as defined in 31 U.S.C. 5312(a)(2) or (c)(1)) should refer to subpart B of its chapter X part for any additional anti-money laundering program requirements. § 1010.220 Customer identification program requirements. Each financial institution (as defined in 31 U.S.C. 5312(a)(2) or (c)(1)) should refer to subpart B of its chapter X part for any additional customer identification program requirements. § 1010.230 Beneficial ownership requirements for legal entity customers. (a) In general. (b) Identification and verification. (1) Identify the beneficial owner(s) of each legal entity customer at the time a new account is opened, unless the customer is otherwise excluded pursuant to paragraph (e) of this section or the account is exempted pursuant to paragraph (h) of this section. A covered financial institution may accomplish this either by obtaining a certification in the form of appendix A of this section from the individual opening the account on behalf of the legal entity customer, or by obtaining from the individual the information required by the form by another means, provided the individual certifies, to the best of the individual's knowledge, the accuracy of the information; and (2) Verify the identity of each beneficial owner identified to the covered financial institution, according to risk-based procedures to the extent reasonable and practicable. At a minimum, these procedures must contain the elements required for verifying the identity of customers that are individuals under § 1020.220(a)(2) of this chapter (for banks); § 1023.220(a)(2) of this chapter (for brokers or dealers in securities); § 1024.220(a)(2) of this chapter (for mutual funds); or § 1026.220(a)(2) of this chapter (for futures commission merchants or introducing brokers in commodities); provided, that in the case of documentary verification, the financial institution may use photocopies or other reproductions of the documents listed in paragraph (a)(2)(ii)(A)( 1 (c) Account. account (d) Beneficial owner. beneficial owner (1) Each individual, if any, who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, owns 25 percent or more of the equity interests of a legal entity customer; and (2) A single individual with significant responsibility to control, manage, or direct a legal entity customer, including: (i) An executive officer or senior manager ( e.g., (ii) Any other individual who regularly performs similar functions. (3) If a trust owns directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, 25 percent or more of the equity interests of a legal entity customer, the beneficial owner for purposes of paragraph (d)(1) of this section shall mean the trustee. If an entity listed in paragraph (e)(2) of this section owns directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, 25 percent or more of the equity interests of a legal entity customer, no individual need be identified for purposes of paragraph (d)(1) of this section with respect to that entity's interests. Note to paragraph ( d The number of individuals that satisfy the definition of “beneficial owner,” and therefore must be identified and verified pursuant to this section, may vary. Under paragraph (d)(1) of this section, depending on the factual circumstances, up to four individuals may need to be identified. Under paragraph (d)(2) of this section, only one individual must be identified. It is possible that in some circumstances the same person or persons might be identified pursuant to paragraphs (d)(1) and (2) of this section. A covered financial institution may also identify additional individuals as part of its customer due diligence if it deems appropriate on the basis of risk. (e) Legal entity customer. (1) Legal entity customer (2) Legal entity customer (i) A financial institution regulated by a Federal functional regulator or a bank regulated by a State bank regulator; (ii) A person described in § 1020.315(b)(2) through (5) of this chapter; (iii) An issuer of a class of securities registered under section 12 of the Securities Exchange Act of 1934 or that is required to file reports under section 15(d) of that Act; (iv) An investment company, as defined in section 3 of the Investment Company Act of 1940, that is registered with the Securities and Exchange Commission under that Act; (v) An investment adviser, as defined in section 202(a)(11) of the Investment Advisers Act of 1940, that is registered with the Securities and Exchange Commission under that Act; (vi) An exchange or clearing agency, as defined in section 3 of the Securities Exchange Act of 1934, that is registered under section 6 or 17A of that Act; (vii) Any other entity registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934; (viii) A registered entity, commodity pool operator, commodity trading advisor, retail foreign exchange dealer, swap dealer, or major swap participant, each as defined in section 1a of the Commodity Exchange Act, that is registered with the Commodity Futures Trading Commission; (ix) A public accounting firm registered under section 102 of the Sarbanes-Oxley Act; (x) A bank holding company, as defined in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841) or savings and loan holding company, as defined in section 10(n) of the Home Owners' Loan Act (12 U.S.C 1467a(n)); (xi) A pooled investment vehicle that is operated or advised by a financial institution excluded under paragraph (e)(2) of this section; (xii) An insurance company that is regulated by a State; (xiii) A financial market utility designated by the Financial Stability Oversight Council under Title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; (xiv) A foreign financial institution established in a jurisdiction where the regulator of such institution maintains beneficial ownership information regarding such institution; (xv) A non-U.S. governmental department, agency or political subdivision that engages only in governmental rather than commercial activities; and (xvi) Any legal entity only to the extent that it opens a private banking account subject to § 1010.620 of this chapter. (3) The following legal entity customers are subject only to the control prong of the beneficial ownership requirement: (i) A pooled investment vehicle that is operated or advised by a financial institution not excluded under paragraph (e)(2) of this section; and (ii) Any legal entity that is established as a nonprofit corporation or similar entity and has filed its organizational documents with the appropriate State authority as necessary. (f) Covered financial institution. covered financial institution (g) New account. new account (h) Exemptions. (i) At the point-of-sale to provide credit products, including commercial private label credit cards, solely for the purchase of retail goods and/or services at these retailers, up to a limit of $50,000; (ii) To finance the purchase of postage and for which payments are remitted directly by the financial institution to the provider of the postage products; (iii) To finance insurance premiums and for which payments are remitted directly by the financial institution to the insurance provider or broker; (iv) To finance the purchase or leasing of equipment and for which payments are remitted directly by the financial institution to the vendor or lessor of this equipment. (2) Limitations on Exemptions. (ii) If there is the possibility of a cash refund on the account activity identified in paragraphs (h)(1)(ii) through (iv) of this section, then beneficial ownership of the legal entity customer must be identified and verified by the financial institution as required by this section, either at the time of initial remittance, or at the time such refund occurs. (i) Recordkeeping. (1) Required records. (i) For identification, any identifying information obtained by the covered financial institution pursuant to paragraph (b) of this section, including without limitation the certification (if obtained); and (ii) For verification, a description of any document relied on (noting the type, any identification number, place of issuance and, if any, date of issuance and expiration), of any non-documentary methods and the results of any measures undertaken, and of the resolution of each substantive discrepancy. (2) Retention of records. (j) Reliance on another financial institution. (1) Such reliance is reasonable under the circumstances; (2) The other financial institution is subject to a rule implementing 31 U.S.C. 5318(h) and is regulated by a Federal functional regulator; and (3) The other financial institution enters into a contract requiring it to certify annually to the covered financial institution that it has implemented its anti-money laundering program, and that it will perform (or its agent will perform) the specified requirements of the covered financial institution's procedures to comply with the requirements of this section. [81 FR 29451, May 11, 2016, as amended at 82 FR 45183, Sept. 28, 2017] Subpart C—Reports Required To Be Made § 1010.300 General. Each financial institution (as defined in 31 U.S.C. 5312(a)(2) or (c)(1)) should refer to its chapter X part for any additional reporting requirements. Unless otherwise indicated, the reporting requirements contained in this subpart C apply to all financial institutions. § 1010.301 Determination by the Secretary. The Secretary hereby determines that the reports required by this chapter have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings. § 1010.305 [Reserved] § 1010.306 Filing of reports. (a)(1) A report required by § 1010.311 or § 1021.311, shall be filed by the financial institution within 15 days following the day on which the reportable transaction occurred. (2) A copy of each report filed pursuant to §§ 1010.311, 1010.313, 1020.315, 1021.311 and 1021.313, shall be retained by the financial institution for a period of five years from the date of the report. (3) All reports required to be filed by §§ 1010.311, 1010.313, 1020.315, 1021.311 and 1021.313, shall be filed with FinCEN, unless otherwise specified. (b)(1) A report required by § 1010.340(a) shall be filed at the time of entry into the United States or at the time of departure, mailing or shipping from the United States, unless otherwise specified by the Commissioner of Customs and Border Protection. (2) A report required by § 1010.340(b) shall be filed within 15 days after receipt of the currency or other monetary instruments. (3) All reports required by § 1010.340 shall be filed with the Customs officer in charge at any port of entry or departure, or as otherwise specified by the Commissioner of Customs and Border Protection. Reports required by § 1010.340(a) for currency or other monetary instruments not physically accompanying a person entering or departing from the United States, may be filed by mail on or before the date of entry, departure, mailing or shipping. All reports required by § 1010.340(b) may also be filed by mail. Reports filed by mail shall be addressed to the Commissioner of Customs and Border Protection, Attention: Currency Transportation Reports, Washington, DC 20229. (c) Reports required to be filed by § 1010.350 shall be filed with FinCEN on or before June 30 of each calendar year with respect to foreign financial accounts exceeding $10,000 maintained during the previous calendar year. (d) Reports required by § 1010.311, § 1010.313, § 1010.340, § 1010.350, § 1020.315, § 1021.311 or § 1021.313 of this chapter shall be filed on forms prescribed by the Secretary. All information called for in such forms shall be furnished. (e) Forms to be used in making the reports required by § 1010.311, § 1010.313, § 1010.350, § 1020.315, § 1021.311 or § 1021.313 of this chapter may be obtained from BSA E-Filing System. Forms to be used in making the reports required by § 1010.340 may be obtained from the U.S. Customs and Border Protection or FinCEN. [75 FR 65812, Oct. 26, 2010, as amended at 81 FR 76864, Nov. 4, 2016] § 1010.310 Reports of transactions in currency. Sections 1010.310 through 1010.314 set forth the rules for the reporting by financial institutions of transactions in currency. Unless otherwise indicated, the transactions in currency reporting requirements in §§ 1010.310 through 1010.314 apply to all financial institutions. Each financial institution should refer to subpart C of its chapter X part for any additional transactions in currency reporting requirements. § 1010.311 Filing obligations for reports of transactions in currency. Each financial institution other than a casino shall file a report of each deposit, withdrawal, exchange of currency or other payment or transfer, by, through, or to such financial institution which involves a transaction in currency of more than $10,000, except as otherwise provided in this section. In the case of the U.S. Postal Service, the obligation contained in the preceding sentence shall not apply to payments or transfers made solely in connection with the purchase of postage or philatelic products. § 1010.312 Identification required. Before concluding any transaction with respect to which a report is required under § 1010.311, § 1010.313, § 1020.315, § 1021.311 or § 1021.313 of this chapter, a financial institution shall verify and record the name and address of the individual presenting a transaction, as well as record the identity, account number, and the social security or taxpayer identification number, if any, of any person or entity on whose behalf such transaction is to be effected. Verification of the identity of an individual who indicates that he or she is an alien or is not a resident of the United States must be made by passport, alien identification card, or other official document evidencing nationality or residence ( e.g., e.g., i.e., etc. § 1010.313 Aggregation. (a) Multiple branches. (b) Multiple transactions. § 1010.314 Structured transactions. No person shall for the purpose of evading the transactions in currency reporting requirements of this chapter with respect to such transaction: (a) Cause or attempt to cause a domestic financial institution to fail to file a report required under the transactions in currency reporting requirements of this chapter; (b) Cause or attempt to cause a domestic financial institution to file a report required under the transactions in currency reporting requirements of this chapter that contains a material omission or misstatement of fact; or (c) Structure (as that term is defined in § 1010.100(xx)) or assist in structuring, or attempt to structure or assist in structuring, any transaction with one or more domestic financial institutions. § 1010.315 Exemptions for non-bank financial institutions. A non-bank financial institution is not required to file a report otherwise required by § 1010.311 with respect to a transaction in currency between the institution and a commercial bank. § 1010.320 Reports of suspicious transactions. Each financial institution (as defined in 31 U.S.C. 5312(a)(2) or (c)(1)) should refer to subpart C of its financial institution part in this chapter for any additional suspicious transaction reporting requirements. § 1010.330 Reports relating to currency in excess of $10,000 received in a trade or business. (a) Reporting requirement Reportable transactions In general. (ii) Certain financial transactions. (2) Currency received for the account of another. i.e., (3) Currency received by agents General rule. (ii) Exception. (iii) Example. Example. B, the principal, gives D, an attorney, $75,000 in currency to purchase real property on behalf of B. Within 15 days D purchases real property for currency from E, a real estate developer, and discloses to E, B's name, address, and taxpayer identification number. Because the transaction qualifies for the exception provided in paragraph (a)(3)(ii) of this section, D need not report with respect to the initial receipt of currency under this section. The exception does not apply, however, if D pays E by means other than currency, or effects the purchase more than 15 days following receipt of the currency from B, or fails to disclose B's name, address, and taxpayer identification number (assuming D does not know that E already has B's address and taxpayer identification number), or purchases the property from a person whose sale of the property is not in the course of that person's trade or business. In any such case, D is required to report the receipt of currency from B under this section. (b) Multiple payments. (1) Initial payment in excess of $10,000. (2) Initial payment of $10,000 or less. (3) Subsequent payments. (4) Example. Example. On January 10, Year 1, M receives an initial payment in currency of $11,000 with respect to a transaction. M receives subsequent payments in currency with respect to the same transaction of $4,000 on February 15, Year 1, $6,000 on March 20, Year 1, and $12,000 on May 15, Year 1. M must make a report with respect to the payment received on January 10, Year 1, by January 25, Year 1. M must also make a report with respect to the payments totaling $22,000 received from February 15, Year 1, through May 15, Year 1. This report must be made by May 30, Year 1, that is, within 15 days of the date that the subsequent payments, all of which were received within a 12-month period, exceeded $10,000. (c) Meaning of terms. (1) Currency. currency (i) The coin and currency of the United States or of any other country, which circulate in and are customarily used and accepted as money in the country in which issued; and (ii) A cashier's check (by whatever name called, including “treasurer's check” and “bank check”), bank draft, traveler's check, or money order having a face amount of not more than $10,000— (A) Received in a designated reporting transaction as defined in paragraph (c)(2) of this section (except as provided in paragraphs (c)(3), (4), and (5) of this section), or (B) Received in any transaction in which the recipient knows that such instrument is being used in an attempt to avoid the reporting of the transaction under section 5331 and this section. (2) Designated reporting transaction. (i) A consumer durable, (ii) A collectible, or (iii) A travel or entertainment activity. (3) Exception for certain loans. (4) Exception for certain installment sales. (i) Promissory notes or installment sales contracts with the same or substantially similar terms are used in the ordinary course of the recipient's trade or business in connection with sales to ultimate consumers; and (ii) The total amount of payments with respect to the sale that are received on or before the 60th day after the date of the sale does not exceed 50 percent of the purchase price of the sale. (5) Exception for certain down payment plans. (i) The recipient uses payment plans with the same or substantially similar terms in the ordinary course of its trade or business in connection with sales to ultimate consumers; and (ii) The instrument is received more than 60 days prior to the date of the sale (in the case of an item of travel or entertainment, the date on which the final payment is due). (6) Examples. Example 1. D, an individual, purchases gold coins from M, a coin dealer, for $13,200. D tenders to M in payment United States currency in the amount of $6,200 and a cashier's check in the face amount of $7,000 which D had purchased. Because the sale is a designated reporting transaction, the cashier's check is treated as currency for purposes of 31 U.S.C. 5331 and this section. Therefore, because M has received more than $10,000 in currency with respect to the transaction, M must make the report required by 31 U.S.C. 5331 and this section. Example 2. E, an individual, purchases an automobile from Q, an automobile dealer, for $11,500. E tenders to Q in payment United States currency in the amount of $2,000 and a cashier's check payable to E and Q in the amount of $9,500. The cashier's check constitutes the proceeds of a loan from the bank issuing the check. The origin of the proceeds is evident from provisions inserted by the bank on the check that instruct the dealer to cause a lien to be placed on the vehicle as security for the loan. The sale of the automobile is a designated reporting transaction. However, under paragraph (c)(3) of this section, because E has furnished Q documentary information establishing that the cashier's check constitutes the proceeds of a loan from the bank issuing the check, the cashier's check is not treated as currency pursuant to paragraph (c)(1)(ii)(A) of this section. Example 3. F, an individual, purchases an item of jewelry from S, a retail jeweler, for $12,000. F gives S traveler's checks totaling $2,400 and pays the balance with a personal check payable to S in the amount of $9,600. Because the sale is a designated reporting transaction, the traveler's checks are treated as currency for purposes of section 5331 and this section. However, because the personal check is not treated as currency for purposes of section 5331 and this section, S has not received more than $10,000 in currency in the transaction and no report is required to be filed under section 5331 and this section. Example 4. G, an individual, purchases a boat from T, a boat dealer, for $16,500. G pays T with a cashier's check payable to T in the amount of $16,500. The cashier's check is not treated as currency because the face amount of the check is more than $10,000. Thus, no report is required to be made by T under section 5331 and this section. Example 5. H, an individual, arranges with W, a travel agent, for the chartering of a passenger aircraft to transport a group of individuals to a sports event in another city. H also arranges with W for hotel accommodations for the group and for admission tickets to the sports event. In payment, H tenders to W money orders which H had previously purchased. The total amount of the money orders, none of which individually exceeds $10,000 in face amount, exceeds $10,000. Because the transaction is a designated reporting transaction, the money orders are treated as currency for purposes of section 5331 and this section. Therefore, because W has received more than $10,000 in currency with respect to the transaction, W must make the report required by section 5331 and this section. (7) Consumer durable. consumer durable (8) Collectible. collectible (9) Travel or entertainment activity. travel or entertainment activity (10) Retail sale. retail sale (11) Trade or business. trade or business (12) Transaction. transaction (ii) The term related transactions (iii) The following examples illustrate the definition of paragraphs (c)(12)(i) and (ii) of this section: Example 1. A person has a tacit agreement with a gold dealer to purchase $36,000 in gold bullion. The $36,000 purchase represents a single transaction under paragraph (c)(12)(i) of this section and the reporting requirements of this section cannot be avoided by recasting the single sales transaction into 4 separate $9,000 sales transactions. Example 2. An attorney agrees to represent a client in a criminal case with the attorney's fee to be determined on an hourly basis. In the first month in which the attorney represents the client, the bill for the attorney's services comes to $8,000 which the client pays in currency. In the second month in which the attorney represents the client, the bill for the attorney's services comes to $4,000, which the client again pays in currency. The aggregate amount of currency paid ($12,000) relates to a single transaction as defined in paragraph (c)(12)(i) of this section, the sale of legal services relating to the criminal case, and the receipt of currency must be reported under this section. Example 3. A person intends to contribute a total of $45,000 to a trust fund, and the trustee of the fund knows or has reason to know of that intention. The $45,000 contribution is a single transaction under paragraph (c)(12)(i) of this section and the reporting requirement of this section cannot be avoided by the grantor's making five separate $9,000 contributions of currency to a single fund or by making five $9,000 contributions of currency to five separate funds administered by a common trustee. Example 4. K, an individual, attends a one day auction and purchases for currency two items, at a cost of $9,240 and $1,732.50 respectively (tax and buyer's premium included). Because the transactions are related transactions as defined in paragraph (c)(12)(ii) of this section, the auction house is required to report the aggregate amount of currency received from the related sales ($10,972.50), even though the auction house accounts separately on its books for each item sold and presents the purchaser with separate bills for each item purchased. Example 5. F, a coin dealer, sells for currency $9,000 worth of gold coins to an individual on three successive days. Under paragraph (c)(12)(ii) of this section the three $9,000 transactions are related transactions aggregating $27,000 if F knows, or has reason to know, that each transaction is one of a series of connected transactions. (13) Recipient. recipient (ii) A branch that receives currency payments will not be deemed a separate recipient if the branch (or a central unit linking such branch with other branches) would in the ordinary course of business have reason to know the identity of payers making currency payments to other branches of such person. (iii) Examples. Example 1. N, an individual, purchases regulated futures contracts at a cost of $7,500 and $5,000, respectively, through two different branches of Commodities Broker X on the same day. N pays for each purchase with currency. Each branch of Commodities Broker X transmits the sales information regarding each of N's purchases to a central unit of Commodities Broker X (which settles the transactions against N's account). Under paragraph (c)(13)(ii) of this section the separate branches of Commodities Broker X are not deemed to be separate recipients; therefore, Commodities Broker X must report with respect to the two related regulated futures contracts sales in accordance with this section. Example 2. P, a corporation, owns and operates a racetrack. P's racetrack contains 100 betting windows at which pari-mutuel wagers may be made. R, an individual, places currency wagers of $3,000 each at five separate betting windows. Assuming that in the ordinary course of business each betting window (or a central unit linking windows) does not have reason to know the identity of persons making wagers at other betting windows, each betting window would be deemed to be a separate currency recipient under paragraph (c)(13)(i) of this section. As no individual recipient received currency in excess of $10,000, no report need be made by P under this section. (d) Exceptions to the reporting requirements of 31 U.S.C. 5331 Receipt is made with respect to a foreign currency transaction In general. (ii) Example. Example. W, an individual engaged in the trade or business of selling aircraft, reaches an agreement to sell an airplane to a U.S. citizen living in Mexico. The agreement, no portion of which is formulated in the United States, calls for a purchase price of $125,000 and requires delivery of and payment for the airplane to be made in Mexico. Upon delivery of the airplane in Mexico, W receives $125,000 in currency. W is not required to report under 31 U.S.C. 5331 or this section because the exception provided in paragraph (d)(1)(i) of this section (“foreign transaction exception”) applies. If, however, any part of the agreement to sell had been formulated in the United States, the foreign transaction exception would not apply and W would be required to report the receipt of currency under 31 U.S.C. 5331 and this section. (2) Receipt of currency not in the course of the recipient's trade or business. (e) Time, manner, and form of reporting In general. (2) Verification. (3) Retention of reports. [75 FR 65812, Oct. 26, 2010, as amended at 77 FR 33637, June 7, 2012] § 1010.331 Reports relating to currency in excess of $10,000 received as bail by court clerks. (a) Reporting requirement In general. (2) Certain financial transactions. (b) Meaning of terms. (1) The term currency (i) The coin and currency of the United States, or of any other country, that circulate in and are customarily used and accepted as money in the country in which issued; and (ii) A cashier's check (by whatever name called, including treasurer's check and bank check), bank draft, traveler's check, or money order having a face amount of not more than $ 10,000. (2) The term specified criminal offense (i) A Federal criminal offense involving a controlled substance (as defined in section 802 of title 21 of the United States Code), provided the offense is described in Part D of Subchapter I or Subchapter II of title 21 of the United States Code; (ii) Racketeering (as defined in section 1951, 1952, or 1955 of title 18 of the United States Code); (iii) Money laundering (as defined in section 1956 or 1957 of title 18 of the United States Code); and (iv) Any State criminal offense substantially similar to an offense described in this paragraph (b)(2) of this section. (c) Time, form, and manner of reporting. In general. (2) Verification of identity. [77 FR 33637, June 7, 2012] § 1010.340 Reports of transportation of currency or monetary instruments. (a) Each person who physically transports, mails, or ships, or causes to be physically transported, mailed, or shipped, or attempts to physically transport, mail or ship, or attempts to cause to be physically transported, mailed or shipped, currency or other monetary instruments in an aggregate amount exceeding $10,000 at one time from the United States to any place outside the United States, or into the United States from any place outside the United States, shall make a report thereof. A person is deemed to have caused such transportation, mailing or shipping when he aids, abets, counsels, commands, procures, or requests it to be done by a financial institution or any other person. (b) Each person who receives in the U.S. currency or other monetary instruments in an aggregate amount exceeding $10,000 at one time which have been transported, mailed, or shipped to such person from any place outside the United States with respect to which a report has not been filed under paragraph (a) of this section, whether or not required to be filed thereunder, shall make a report thereof, stating the amount, the date of receipt, the form of monetary instruments, and the person from whom received. (c) This section shall not require reports by: (1) A Federal Reserve; (2) A bank, a foreign bank, or a broker or dealer in securities, in respect to currency or other monetary instruments mailed or shipped through the postal service or by common carrier; (3) A commercial bank or trust company organized under the laws of any State or of the United States with respect to overland shipments of currency or monetary instruments shipped to or received from an established customer maintaining a deposit relationship with the bank, in amounts which the bank may reasonably conclude do not exceed amounts commensurate with the customary conduct of the business, industry or profession of the customer concerned; (4) A person who is not a citizen or resident of the United States in respect to currency or other monetary instruments mailed or shipped from abroad to a bank or broker or dealer in securities through the postal service or by common carrier; (5) A common carrier of passengers in respect to currency or other monetary instruments in the possession of its passengers; (6) A common carrier of goods in respect to shipments of currency or monetary instruments not declared to be such by the shipper; (7) A travelers' check issuer or its agent in respect to the transportation of travelers' checks prior to their delivery to selling agents for eventual sale to the public; (8) By a person with respect to a restrictively endorsed traveler's check that is in the collection and reconciliation process after the traveler's check has been negotiated; (9) Nor by a person engaged as a business in the transportation of currency, monetary instruments and other commercial papers with respect to the transportation of currency or other monetary instruments overland between established offices of banks or brokers or dealers in securities and foreign persons. (d) A transfer of funds through normal banking procedures which does not involve the physical transportation of currency or monetary instruments is not required to be reported by this section. This section does not require that more than one report be filed covering a particular transportation, mailing or shipping of currency or other monetary instruments with respect to which a complete and truthful report has been filed by a person. However, no person required by paragraph (a) or (b) of this section to file a report shall be excused from liability for failure to do so if, in fact, a complete and truthful report has not been filed. § 1010.350 Reports of foreign financial accounts. (a) In general. See (b) United States person. (1) A citizen of the United States; (2) A resident of the United States. A resident of the United States is an individual who is a resident alien under 26 U.S.C. 7701(b) and the regulations thereunder but using the definition of “United States” provided in 31 CFR 1010.100(hhh) rather than the definition of “United States” in 26 CFR 301.7701(b)-1(c)(2)(ii); and (3) An entity, including but not limited to, a corporation, partnership, trust, or limited liability company created, organized, or formed under the laws of the United States, any State, the District of Columbia, the Territories and Insular Possessions of the United States, or the Indian Tribes. (c) Types of reportable accounts. (1) Bank account. (2) Securities account. (3) Other financial account. (i) An account with a person that is in the business of accepting deposits as a financial agency; (ii) An account that is an insurance or annuity policy with a cash value; (iii) An account with a person that acts as a broker or dealer for futures or options transactions in any commodity on or subject to the rules of a commodity exchange or association; or (iv) An account with— (A) Mutual fund or similar pooled fund. (B) Other investment fund. (4) Exceptions for certain accounts. (ii) An account of an international financial institution of which the United States government is a member is not required to be reported. (iii) An account in an institution known as a “United States military banking facility” (or “United States military finance facility”) operated by a United States financial institution designated by the United States Government to serve United States government installations abroad is not required to be reported even though the United States military banking facility is located in a foreign country. (iv) Correspondent or nostro accounts that are maintained by banks and used solely for bank-to-bank settlements are not required to be reported. (d) Foreign country. (e) Financial interest. (1) Owner of record or holder of legal title. (2) Other financial interest. (i) A person acting as an agent, nominee, attorney or in some other capacity on behalf of the United States person with respect to the account; (ii) A corporation in which the United States person owns directly or indirectly more than 50 percent of the voting power or the total value of the shares, a partnership in which the United States person owns directly or indirectly more than 50 percent of the interest in profits or capital, or any other entity (other than an entity in paragraphs (e)(2)(iii) through (iv) of this section) in which the United States person owns directly or indirectly more than 50 percent of the voting power, total value of the equity interest or assets, or interest in profits; (iii) A trust, if the United States person is the trust grantor and has an ownership interest in the trust for United States Federal tax purposes. See (iv) A trust in which the United States person either has a present beneficial interest in more than 50 percent of the assets or from which such person receives more than 50 percent of the current income. (3) Anti-avoidance rule. (f) Signature or other authority In general. (2) Exceptions (ii) An officer or employee of a financial institution that is registered with and examined by the Securities and Exchange Commission or Commodity Futures Trading Commission need not report that he has signature or other authority over a foreign financial account owned or maintained by such financial institution if the officer or employee has no financial interest in the account. (iii) An officer or employee of an Authorized Service Provider need not report that he has signature or other authority over a foreign financial account owned or maintained by an investment company that is registered with the Securities and Exchange Commission if the officer or employee has no financial interest in the account. “Authorized Service Provider” means an entity that is registered with and examined by the Securities and Exchange Commission and that provides services to an investment company registered under the Investment Company Act of 1940. (iv) An officer or employee of an entity with a class of equity securities listed (or American depository receipts listed) on any United States national securities exchange need not report that he has signature or other authority over a foreign financial account of such entity if the officer or employee has no financial interest in the account. An officer or employee of a United States subsidiary of a United States entity with a class of equity securities listed on a United States national securities exchange need not file a report concerning signature or other authority over a foreign financial account of the subsidiary if he has no financial interest in the account and the United States subsidiary is included in a consolidated report of the parent filed under this section. (v) An officer or employee of an entity that has a class of equity securities registered (or American depository receipts in respect of equity securities registered) under section 12(g) of the Securities Exchange Act need not report that he has signature or other authority over the foreign financial accounts of such entity or if he has no financial interest in the accounts. (g) Special rules Financial interest in 25 or more foreign financial accounts. (2) Signature or other authority over 25 or more foreign financial accounts. (3) Consolidated reports. (4) Participants and beneficiaries in certain retirement plans. (5) Certain trust beneficiaries. [76 FR 10245, Feb. 24, 2011, as amended at 76 FR 37000, June 24, 2011] § 1010.360 Reports of transactions with foreign financial agencies. (a) Promulgation of reporting requirements. Federal Register, Federal Register, (b) Information subject to reporting requirements. (1) Checks or drafts, including traveler's checks, received by respondent financial institution for collection or credit to the account of a foreign financial agency, sent by respondent financial institution to a foreign country for collection or payment, drawn by respondent financial institution on a foreign financial agency, drawn by a foreign financial agency on respondent financial institution—including the following information. (i) Name of maker or drawer; (ii) Name of drawee or drawee financial institution; (iii) Name of payee; (iv) Date and amount of instrument; (v) Names of all endorsers. (2) Transmittal orders received by a respondent financial institution from a foreign financial agency or sent by respondent financial institution to a foreign financial agency, including all information maintained by that institution pursuant to §§ 1010.410 and 1020.410. (3) Loans made by respondent financial institution to or through a foreign financial agency—including the following information: (i) Name of borrower; (ii) Name of person acting for borrower; (iii) Date and amount of loan; (iv) Terms of repayment; (v) Name of guarantor; (vi) Rate of interest; (vii) Method of disbursing proceeds; (viii) Collateral for loan. (4) Commercial paper received or shipped by the respondent financial institution—including the following information: (i) Name of maker; (ii) Date and amount of paper; (iii) Due date; (iv) Certificate number; (v) Amount of transaction. (5) Stocks received or shipped by respondent financial institution—including the following information: (i) Name of corporation; (ii) Type of stock; (iii) Certificate number; (iv) Number of shares; (v) Date of certificate; (vi) Name of registered holder; (vii) Amount of transaction. (6) Bonds received or shipped by respondent financial institution—including the following information: (i) Name of issuer; (ii) Bond number; (iii) Type of bond series; (iv) Date issued; (v) Due date; (vi) Rate of interest; (vii) Amount of transaction; (viii) Name of registered holder. (7) Certificates of deposit received or shipped by respondent financial institution—including the following information: (i) Name and address of issuer; (ii) Date issued; (iii) Dollar amount; (iv) Name of registered holder; (v) Due date; (vi) Rate of interest; (vii) Certificate number; (viii) Name and address of issuing agent. (c) Scope of reports. (1) A reasonable classification of financial institutions subject to or exempt from a reporting requirement; (2) A foreign country to which a reporting requirement applies if the Secretary decides that applying the requirement to all foreign countries is unnecessary or undesirable; (3) The magnitude of transactions subject to a reporting requirement; and (4) The kind of transaction subject to or exempt from a reporting requirement. (d) Form of reports. (e) Limitations. (2) The Secretary shall not issue a regulation under paragraph (a) of this section for the purpose of obtaining individually identifiable account information concerning a customer, as defined by the Right to Financial Privacy Act (12 U.S.C. 3401 et seq. (3) The Secretary may issue a regulation pursuant to paragraph (a) of this section requiring a financial institution to report transactions completed prior to the date it received notice of the reporting requirement. However, with respect to completed transactions, a financial institution may be required to provide information only from records required to be maintained pursuant to the requirements of this chapter, or any other provision of state or Federal law, or otherwise maintained in the regular course of business. § 1010.370 Reports of certain domestic transactions. (a)(1) If the Secretary of the Treasury finds, upon the Secretary's own initiative or at the request of an appropriate Federal or State law enforcement official, that reasonable grounds exist for concluding that additional recordkeeping and/or reporting requirements are necessary to carry out the purposes of this chapter or to prevent persons from evading the reporting/recordkeeping requirements of this chapter, the Secretary may issue an order requiring any domestic financial institution or group of domestic financial institutions, or any domestic nonfinancial trade or business or group of domestic nonfinancial trades or businesses, in a geographic area, and any other person participating in the type of transaction, to file a report in the manner and to the extent specified in such order. The order shall contain such information as the Secretary may describe concerning any transaction in which such financial institution or group of domestic financial institutions, or domestic nonfinancial trade or business or group of domestic nonfinancial trades or businesses is involved for the payment, receipt, or transfer of funds (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. (2) The Secretary may, by regulation or order, require any depository institution (as defined in section 3(c) of the Federal Deposit Insurance Act)— (i) 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 the Title 31 provisions of the Bank Secrecy Act 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 funds which are involved in the reportable transaction with the depository institution; and (ii) If no copy of any report described in paragraph (a)(2)(i) of this section is received by the depository institution in connection with any reportable transaction to which paragraph (a)(2)(i) applies, to submit (in addition to any report required under this subchapter 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. (3) For purposes of paragraph (a)(2) of this section, the term reportable transaction (b) An order issued under paragraph (a) of this section shall be directed to the Chief Executive Officer of the financial institution or nonfinancial trade or business and shall designate one or more of the following categories of information to be reported: Each deposit, withdrawal, exchange of funds or other payment or transfer, by, through or to such financial institution specified in the order, which involves all or any class of transactions in funds equal to or exceeding an amount specified in the order. (c) In issuing an order under paragraph (a) of this section, the Secretary will prescribe: (1) The dollar amount of transactions subject to the reporting requirement in the order; (2) The type of transaction or transactions subject to or exempt from a reporting requirement in the order; (3) The appropriate form for reporting the transactions required in the order; (4) The address to which reports required in the order are to be sent or from which they will be picked up; (5) The starting and ending dates by which such transactions specified in the order are to be reported; (6) The name of a Treasury official to be contacted for any additional information or questions; (7) The amount of time the reports and records of reports generated in response to the order will have to be retained by the financial institution; and (8) Any other information deemed necessary to carry out the purposes of the order. (d)(1) No order issued pursuant to paragraph (a) of this section shall prescribe a reporting period of more than 180 days unless renewed pursuant to the requirements of paragraph (a). (2) Any revisions to an order issued under this section will not be effective until made in writing by the Secretary. (3) Unless otherwise specified in the order, a bank receiving an order under this section may continue to use the exemptions granted under § 1020.315 of this chapter prior to the receipt of the order, but may not grant additional exemptions. (4) For purposes of this section, the term geographic area (e) 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. [75 FR 65812, Oct. 26, 2010, as amended at 86 FR 62915, Nov. 15, 2021] § 1010.380 Reports of beneficial ownership information. (a) Reports required; timing of reports Initial report. (i) Any entity that becomes a reporting company on or after March 26, 2025 shall file a report within 30 calendar days of the earlier of the date on which it receives actual notice that it has been registered to do business or the date on which a secretary of state or similar office first provides public notice, such as through a publicly accessible registry, that the reporting company has been registered to do business. (ii) Any entity that became a reporting company before March 26, 2025 shall file a report no later than April 25, 2025. (iii) Any entity that no longer meets the criteria for any exemption under paragraph (c)(2) of this section shall file a report within 30 calendar days after the date that it no longer meets the criteria for any exemption. (2) Updated report. (ii) If a reporting company meets the criteria for any exemption under paragraph (c)(2) of this section subsequent to the filing of an initial report, this change will be deemed a change with respect to information previously submitted to FinCEN, and the entity shall file an updated report. (iii) If an individual is a beneficial owner of a reporting company by virtue of property interests or other rights subject to transfer upon death, and such individual dies, a change with respect to required information will be deemed to occur when the estate of the deceased beneficial owner is settled, either through the operation of the intestacy laws of a jurisdiction within the United States or through a testamentary deposition. The updated report shall, to the extent appropriate, identify any new beneficial owners. (iv) If a reporting company has reported information with respect to a parent or legal guardian of a minor child pursuant to paragraphs (b)(2)(ii) and (d)(3)(i) of this section, a change with respect to required information will be deemed to occur when the minor child attains the age of majority. (v) With respect to an image of an identifying document required to be reported pursuant to paragraph (b)(1)(ii)(E) of this section, a change with respect to required information will be deemed to occur when the name, date of birth, address, or unique identifying number on such document changes. (vi) Paragraphs (a)(2)(i) through (v) of this section shall only apply to reporting companies after March 26, 2025. (3)(i) Corrected report. (ii) Paragraph (a)(3)(i) of this section shall only apply to reporting companies after March 26, 2025. (b) Content, form, and manner of reports. (1) Initial report. (i) For the reporting company: (A) The full legal name of the reporting company; (B) Any trade name or “doing business as” name of the reporting company; (C) A complete current address consisting of: ( 1 ( 2 (D) The foreign jurisdiction of formation of the reporting company; (E) The State or Tribal jurisdiction where the reporting company first registers; and (F) The Internal Revenue Service (IRS) Taxpayer Identification Number (TIN) (including an Employer Identification Number (EIN)) of the reporting company, or where a reporting company has not been issued a TIN, a tax identification number issued by a foreign jurisdiction and the name of such jurisdiction; (ii) For every individual who is a beneficial owner of such reporting company, and every individual who is a company applicant with respect to such reporting company: (A) The full legal name of the individual; (B) The date of birth of the individual; (C) A complete current address consisting of: ( 1 ( 2 (D) A unique identifying number and the issuing jurisdiction from one of the following documents: ( 1 ( 2 ( 3 ( 4 1 2 3 (E) An image of the document from which the unique identifying number in paragraph (b)(1)(ii)(D) of this section was obtained. (2) Special rules Reporting company owned by exempt entity. (ii) Minor child. (iii) Foreign pooled investment vehicle. (iv) Company applicant for existing companies. (3) Contents of updated or corrected reports Updated reports—in general. (ii) Updated reports—newly exempt entities. (iii) Corrected reports. (4) FinCEN identifier Application. (B) A reporting company may obtain a FinCEN identifier by submitting to FinCEN an application at or after the time that the entity submits an initial report required under paragraph (b)(1) of this section. (C) Each FinCEN identifier shall be specific to each such individual or reporting company, and each such individual or reporting company (including any successor reporting company) may obtain only one FinCEN identifier. (ii) Use of the FinCEN identifier. (B) A reporting company may report another entity's FinCEN identifier and full legal name in lieu of the information required under paragraph (b)(1)(ii) of this section with respect to the beneficial owners of the reporting company only if: ( 1 ( 2 ( 3 (iii) Updates and corrections. ( 1 ( 2 (B) Any reporting company that has obtained a FinCEN identifier shall file an updated or corrected report to update or correct any information previously submitted to FinCEN. Such updated or corrected report shall be filed at the same time and in the same manner as updated or corrected reports filed under paragraph (a) of this section. (5) Special exemptions. (ii) United States persons are exempt from any requirement under 31 U.S.C. 5336 and this section to provide beneficial ownership information with respect to any reporting company for which they are beneficial owners or company applicants. (c) Reporting company Definition of reporting company. (i) [Reserved] (ii) Any entity that is: (A) A corporation, limited liability company, or other entity; (B) Formed under the law of a foreign country; and (C) Registered to do business in any State or tribal jurisdiction by the filing of a document with a secretary of state or any similar office under the law of that State or Indian tribe. (2) Exemptions. (i) Securities reporting issuer. (A) An issuer of a class of securities registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78l); or (B) Required to file supplementary and periodic information under section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(d)). (ii) Governmental authority. (A) Is established under the laws of the United States, an Indian tribe, a State, or a political subdivision of a State, or under an interstate compact between two or more States; and (B) Exercises governmental authority on behalf of the United States or any such Indian tribe, State, or political subdivision. (iii) Bank. (A) Section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); (B) Section 2(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)); or (C) Section 202(a) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-2(a)). (iv) Credit union. (v) Depository institution holding company. (vi) Money services business. (vii) Broker or dealer in securities. (viii) Securities exchange or clearing agency. (ix) Other Exchange Act registered entity. et seq. (x) Investment company or investment adviser. (A) An investment company as defined in section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a-3), or is an investment adviser as defined in section 202 of the Investment Advisers Act of 1940 (15 U.S.C. 80b-2); and (B) Registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq. et seq. (xi) Venture capital fund adviser. (A) Is described in section 203(l) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-3(l)); and (B) Has filed Item 10, Schedule A, and Schedule B of Part 1A of Form ADV, or any successor thereto, with the Securities and Exchange Commission. (xii) Insurance company. (xiii) State-licensed insurance producer. (A) Is an insurance producer that is authorized by a State and subject to supervision by the insurance commissioner or a similar official or agency of a State; and (B) Has an operating presence at a physical office within the United States. (xiv) Commodity Exchange Act registered entity. (A) Is a registered entity as defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a); or (B) Is: ( 1 ( 2 (xv) Accounting firm. (xvi) Public utility. (xvii) Financial market utility. (xviii) Pooled investment vehicle. (xix) Tax-exempt entity. (A) An organization that is described in section 501(c) of the Internal Revenue Code of 1986 (Code) (determined without regard to section 508(a) of the Code) and exempt from tax under section 501(a) of the Code, except that in the case of any such organization that ceases to be described in section 501(c) and exempt from tax under section 501(a), such organization shall be considered to continue to be described in this paragraph (c)(1)(xix)(A) for the 180-day period beginning on the date of the loss of such tax-exempt status; (B) A political organization, as defined in section 527(e)(1) of the Code, that is exempt from tax under section 527(a) of the Code; or (C) A trust described in paragraph (1) or (2) of section 4947(a) of the Code. (xx) Entity assisting a tax-exempt entity. (A) Operates exclusively to provide financial assistance to, or hold governance rights over, any entity described in paragraph (c)(2)(xix) of this section; (B) Is a United States person; (C) Is beneficially owned or controlled exclusively by one or more United States persons that are United States citizens or lawfully admitted for permanent residence; and (D) Derives at least a majority of its funding or revenue from one or more United States persons that are United States citizens or lawfully admitted for permanent residence. (xxi) Large operating company. (A) Employs more than 20 full time employees in the United States, with “full time employee in the United States” having the meaning provided in 26 CFR 54.4980H-1(a) and 54.4980H-3, except that the term “United States” as used in 26 CFR 54.4980H-1(a) and 54.4980H-3 has the meaning provided in § 1010.100(hhh); (B) Has an operating presence at a physical office within the United States; and (C) Filed a Federal income tax or information return in the United States for the previous year demonstrating more than $5,000,000 in gross receipts or sales, as reported as gross receipts or sales (net of returns and allowances) on the entity's IRS Form 1120, consolidated IRS Form 1120, IRS Form 1120-S, IRS Form 1065, or other applicable IRS form, excluding gross receipts or sales from sources outside the United States, as determined under Federal income tax principles. For an entity that is part of an affiliated group of corporations within the meaning of 26 U.S.C. 1504 that filed a consolidated return, the applicable amount shall be the amount reported on the consolidated return for such group. (xxii) Subsidiary of certain exempt entities. (xxiii) Inactive entity. (A) Was in existence on or before January 1, 2020; (B) Is not engaged in active business; (C) Is not owned by a foreign person, whether directly or indirectly, wholly or partially; (D) Has not experienced any change in ownership in the preceding twelve month period; (E) Has not sent or received any funds in an amount greater than $1,000, either directly or through any financial account in which the entity or any affiliate of the entity had an interest, in the preceding twelve month period; and (F) Does not otherwise hold any kind or type of assets, whether in the United States or abroad, including any ownership interest in any corporation, limited liability company, or other similar entity. (xxiv) Domestic entity. (A) A corporation, limited liability company, or other entity; and (B) Created by the filing of a document with a secretary of state or any similar office under the law of a State or Indian tribe. (d) Beneficial owner. (1) Substantial control Definition of substantial control. (A) Serves as a senior officer of the reporting company; (B) Has authority over the appointment or removal of any senior officer or a majority of the board of directors (or similar body); (C) Directs, determines, or has substantial influence over important decisions made by the reporting company, including decisions regarding: ( 1 ( 2 ( 3 ( 4 ( 5 ( 6 ( 7 (D) Has any other form of substantial control over the reporting company. (ii) Direct or indirect exercise of substantial control. (A) Board representation; (B) Ownership or control of a majority of the voting power or voting rights of the reporting company; (C) Rights associated with any financing arrangement or interest in a company; (D) Control over one or more intermediary entities that separately or collectively exercise substantial control over a reporting company; (E) Arrangements or financial or business relationships, whether formal or informal, with other individuals or entities acting as nominees; or (F) any other contract, arrangement, understanding, relationship, or otherwise. (2) Ownership Interests Definition of ownership interest. (A) Any equity, stock, or similar instrument; preorganization certificate or subscription; or transferable share of, or voting trust certificate or certificate of deposit for, an equity security, interest in a joint venture, or certificate of interest in a business trust; in each such case, without regard to whether any such instrument is transferable, is classified as stock or anything similar, or confers voting power or voting rights; (B) Any capital or profit interest in an entity; (C) Any instrument convertible, with or without consideration, into any share or instrument described in paragraph (d)(2)(i)(A), or (B) of this section, any future on any such instrument, or any warrant or right to purchase, sell, or subscribe to a share or interest described in paragraph (d)(2)(i)(A), or (B) of this section, regardless of whether characterized as debt; (D) Any put, call, straddle, or other option or privilege of buying or selling any of the items described in paragraph (d)(2)(i)(A), (B), or (C) of this section without being bound to do so, except to the extent that such option or privilege is created and held by a third party or third parties without the knowledge or involvement of the reporting company; or (E) Any other instrument, contract, arrangement, understanding, relationship, or mechanism used to establish ownership. (ii) Ownership or control of ownership interest. (A) Joint ownership with one or more other persons of an undivided interest in such ownership interest; (B) Through another individual acting as a nominee, intermediary, custodian, or agent on behalf of such individual; (C) With regard to a trust or similar arrangement that holds such ownership interest: ( 1 ( 2 ( i ( ii ( 3 (D) Through ownership or control of one or more intermediary entities, or ownership or control of the ownership interests of any such entities, that separately or collectively own or control ownership interests of the reporting company. (iii) Calculation of the total ownership interests of a reporting company. (A) Ownership interests of the individual shall be calculated at the present time, and any options or similar interests of the individual shall be treated as exercised; (B) For reporting companies that issue capital or profit interests (including entities treated as partnerships for federal income tax purposes), the individual's ownership interests are the individual's capital and profit interests in the entity, calculated as a percentage of the total outstanding capital and profit interests of the entity; (C) For corporations, entities treated as corporations for federal income tax purposes, and other reporting companies that issue shares of stock, the applicable percentage shall be the greater of: ( 1 ( 2 (D) If the facts and circumstances do not permit the calculations described in either paragraph (d)(2)(iii)(B) or (C) to be performed with reasonable certainty, any individual who owns or controls 25 percent or more of any class or type of ownership interest of a reporting company shall be deemed to own or control 25 percent or more of the ownership interests of the reporting company. (3) Exceptions. (i) A minor child, as defined under the law of the State or Indian tribe in which a reporting company is first registered, provided the reporting company reports the required information of a parent or legal guardian of the minor child as specified in paragraph (b)(2)(ii) of this section; (ii) An individual acting as a nominee, intermediary, custodian, or agent on behalf of another individual; (iii) An employee of a reporting company, acting solely as an employee, whose substantial control over or economic benefits from such entity are derived solely from the employment status of the employee, provided that such person is not a senior officer as defined in paragraph (f)(8) of this section; (iv) An individual whose only interest in a reporting company is a future interest through a right of inheritance; (v) A creditor of a reporting company. For purposes of this paragraph (d)(3)(v), a creditor is an individual who meets the requirements of paragraph (d) of this section solely through rights or interests for the payment of a predetermined sum of money, such as a debt incurred by the reporting company, or a loan covenant or other similar right associated with such right to receive payment that is intended to secure the right to receive payment or enhance the likelihood of repayment. (e) Company applicant. (1) [Reserved] (2) The individual who directly files the document that first registers the reporting company as described in paragraph (c)(1)(ii) of this section; and (3) The individual who is primarily responsible for directing or controlling such filing if more than one individual is involved in the filing of the document. (f) Definitions. (1) Employee. (2) FinCEN identifier. (3) Foreign person. (4) Indian tribe. (5) Lawfully admitted for permanent residence. (6) Operating presence at a physical office within the United States. (7) Pooled investment vehicle. (i) Any investment company, as defined in section 3(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-3(a)); or (ii) Any company that: (A) Would be an investment company under that section but for the exclusion provided from that definition by paragraph (1) or (7) of section 3(c) of that Act (15 U.S.C. 80a-3(c)); and (B) Is identified by its legal name by the applicable investment adviser in its Form ADV (or successor form) filed with the Securities and Exchange Commission or will be so identified in the next annual updating amendment to Form ADV required to be filed by the applicable investment adviser pursuant to rule 204-1 under the Investment Advisers Act of 1940 (17 CFR 275.204-1). (8) Senior officer. (9) State. (10) United States person. (g) Reporting violations. (1) The term “person” includes any individual, reporting company, or other entity. (2) The term “beneficial ownership information” includes any information provided to FinCEN under this section. (3) A person provides or attempts to provide beneficial ownership information to FinCEN if such person does so directly or indirectly, including by providing such information to another person for purposes of a report or application under this section. (4) A person fails to report complete or updated beneficial ownership information to FinCEN if, with respect to an entity: (i) such entity is required, pursuant to title 31, United States Code, section 5336, or its implementing regulations, to report information to FinCEN; (ii) the reporting company fails to report such information to FinCEN; and (iii) such person either causes the failure, or is a senior officer of the entity at the time of the failure. [87 FR 59591, Sept. 30, 2022, as amended at 88 FR 76997, Nov. 8, 2023; 88 FR 83504, Nov. 30, 2023; 89 FR 83783, Oct. 18, 2024; 90 FR 13697, Mar. 26, 2025; 91 FR 52528, Aug. 14, 2026] Subpart D—Records Required To Be Maintained § 1010.400 General. Each financial institution (as defined in 31 U.S.C. 5312(a)(2) or (c)(1)) should refer to its chapter X part for any additional recordkeeping requirements. Unless otherwise indicated, the recordkeeping requirements contained in this subpart D apply to all financial institutions. § 1010.401 Determination by the Secretary. The Secretary hereby determines that the records required to be kept by this chapter have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings. § 1010.405 [Reserved] § 1010.410 Records to be made and retained by financial institutions. Link to an amendment published at 89 FR 72274, Sept. 4, 2024. This amendment was delayed until Jan. 1, 2028, at 91 FR 36, Jan. 2, 2026. Each financial institution shall retain either the original or a copy or reproduction of each of the following: (a) A record of each extension of credit in an amount in excess of $10,000, except an extension of credit secured by an interest in real property, which record shall contain the name and address of the person to whom the extension of credit is made, the amount thereof, the nature or purpose thereof, and the date thereof; (b) A record of each advice, request, or instruction received or given regarding any transaction resulting (or intended to result and later canceled if such a record is normally made) in the transfer of currency or other monetary instruments, funds, checks, investment securities, or credit, of more than $10,000 to or from any person, account, or place outside the United States. (c) A record of each advice, request, or instruction given to another financial institution or other person located within or without the United States, regarding a transaction intended to result in the transfer of funds, or of currency, other monetary instruments, checks, investment securities, or credit, of more than $10,000 to a person, account or place outside the United States. (d) A record of such information for such period of time as the Secretary may require in an order issued under § 1010.370(a), not to exceed five years. (e) Nonbank financial institutions. (1) Recordkeeping requirements. (A) The name and address of the transmittor; (B) The amount of the transmittal order; (C) The execution date of the transmittal order; (D) Any payment instructions received from the transmittor with the transmittal order; (E) The identity of the recipient's financial institution; (F) As many of the following items as are received with the transmittal order: 1 1 ( 1 ( 2 ( 3 (G) Any form relating to the transmittal of funds that is completed or signed by the person placing the transmittal order. (ii) For each transmittal order that it accepts as an intermediary financial institution, a financial institution shall retain either the original or a microfilm, other copy, or electronic record of the transmittal order. (iii) For each transmittal order that it accepts as a recipient's financial institution, a financial institution shall retain either the original or a microfilm, other copy, or electronic record of the transmittal order. (2) Transmittors other than established customers. (i) If the transmittal order is made in person, prior to acceptance the transmittor's financial institution shall verify the identity of the person placing the transmittal order. If it accepts the transmittal order, the transmittor's financial institution shall obtain and retain a record of the name and address, the type of identification reviewed, and the number of the identification document ( e.g., e.g., e.g., (ii) If the transmittal order accepted by the transmittor's financial institution is not made in person, the transmittor's financial institution shall obtain and retain a record of the name and address of the person placing the transmittal order, as well as the person's taxpayer identification number ( e.g., e.g., e.g., (3) Recipients other than established customers. (i) If the proceeds are delivered in person to the recipient or its representative or agent, the recipient's financial institution shall verify the identity of the person receiving the proceeds and shall obtain and retain a record of the name and address, the type of identification reviewed, and the number of the identification document ( e.g., e.g., e.g., (ii) If the proceeds are delivered other than in person, the recipient's financial institution shall retain a copy of the check or other instrument used to effect payment, or the information contained thereon, as well as the name and address of the person to which it was sent. (4) Retrievability. (5) Verification. e.g., (6) Exceptions. (i) Transmittals of funds where the transmittor and the recipient are any of the following: (A) A bank; (B) A wholly-owned domestic subsidiary of a bank chartered in the United States; (C) A broker or dealer in securities; (D) A wholly-owned domestic subsidiary of a broker or dealer in securities; (E) A futures commission merchant or an introducing broker in commodities; (F) A wholly-owned domestic subsidiary of a futures commission merchant or an introducing broker in commodities; (G) The United States; (H) A state or local government; or (I) A Federal, State or local government agency or instrumentality; or (J) A mutual fund; and (ii) Transmittals of funds where both the transmittor and the recipient are the same person and the transmittor's financial institution and the recipient's financial institution are the same broker or dealer in securities. (f) Any transmittor's financial institution or intermediary financial institution located within the United States shall include in any transmittal order for a transmittal of funds in the amount of $3,000 or more, information as required in this paragraph (f): (1) A transmittor's financial institution shall include in a transmittal order, at the time it is sent to a receiving financial institution, the following information: (i) The name and, if the payment is ordered from an account, the account number of the transmittor; (ii) The address of the transmittor, except for a transmittal order through Fedwire until such time as the bank that sends the order to the Federal Reserve Bank completes its conversion to the expanded Fedwire format; (iii) The amount of the transmittal order; (iv) The execution date of the transmittal order; (v) The identity of the recipient's financial institution; (vi) As many of the following items as are received with the transmittal order: 2 2 (A) The name and address of the recipient; (B) The account number of the recipient; (C) Any other specific identifier of the recipient; and (vii) Either the name and address or numerical identifier of the transmittor's financial institution. (2) A receiving financial institution that acts as an intermediary financial institution, if it accepts a transmittal order, shall include in a corresponding transmittal order at the time it is sent to the next receiving financial institution, the following information, if received from the sender: (i) The name and the account number of the transmittor; (ii) The address of the transmittor, except for a transmittal order through Fedwire until such time as the bank that sends the order to the Federal Reserve Bank completes its conversion to the expanded Fedwire format; (iii) The amount of the transmittal order; (iv) The execution date of the transmittal order; (v) The identity of the recipient's financial institution; (vi) As many of the following items as are received with the transmittal order: 3 3 (A) The name and address of the recipient; (B) The account number of the recipient; (C) Any other specific identifier of the recipient; and (vii) Either the name and address or numerical identifier of the transmittor's financial institution. (3) Safe harbor for transmittals of funds prior to conversion to the expanded Fedwire message format. (i) Transmittor's financial institution. (A) Includes in the transmittal order, at the time it is sent to the receiving financial institution, the information specified in paragraphs (f)(1)(iii) through (v), and the information specified in paragraph (f)(1)(vi) of this section to the extent that such information has been received by the financial institution, and (B) Provides the information specified in paragraphs (f)(1)(i), (ii) and (vii) of this section to a financial institution that acted as an intermediary financial institution or recipient's financial institution in connection with the transmittal order, within a reasonable time after any such financial institution makes a request therefor in connection with the requesting financial institution's receipt of a lawful request for such information from a Federal, State, or local law enforcement or financial regulatory agency, or in connection with the requesting financial institution's own Bank Secrecy Act compliance program. (ii) Intermediary financial institution. (A) Includes in the transmittal order, at the time it is sent to the receiving financial institution, the information specified in paragraphs (f)(2)(iii) through (f)(2)(vi) of this section, to the extent that such information has been received by the intermediary financial institution; and (B) Provides the information specified in paragraphs (f)(2)(i), (ii) and (vii) of this section, to the extent that such information has been received by the intermediary financial institution, to a financial institution that acted as an intermediary financial institution or recipient's financial institution in connection with the transmittal order, within a reasonable time after any such financial institution makes a request therefor in connection with the requesting financial institution's receipt of a lawful request for such information from a Federal, State, or local law enforcement or regulatory agency, or in connection with the requesting financial institution's own Bank Secrecy Act compliance program. (iii) Obligation of requesting financial institution. (4) Exceptions. [75 FR 65812, Oct. 26, 2010, as amended at 81 FR 76864, Nov. 4, 2016] § 1010.415 Purchases of bank checks and drafts, cashier's checks, money orders and traveler's checks. (a) No financial institution may issue or sell a bank check or draft, cashier's check, money order or traveler's check for $3,000 or more in currency unless it maintains records of the following information, which must be obtained for each issuance or sale of one or more of these instruments to any individual purchaser which involves currency in amounts of $3,000-$10,000 inclusive: (1) If the purchaser has a deposit account with the financial institution: (i)(A) The name of the purchaser; (B) The date of purchase; (C) The type(s) of instrument(s) purchased; (D) The serial number(s) of each of the instrument(s) purchased; and (E) The amount in dollars of each of the instrument(s) purchased. (ii) In addition, the financial institution must verify that the individual is a deposit accountholder or must verify the individual's identity. Verification may be either through a signature card or other file or record at the financial institution provided the deposit accountholder's name and address were verified previously and that information was recorded on the signature card or other file or record; or by examination of a document which is normally acceptable within the banking community as a means of identification when cashing checks for nondepositors and which contains the name and address of the purchaser. If the deposit accountholder's identity has not been verified previously, the financial institution shall verify the deposit accountholder's identity by examination of a document which is normally acceptable within the banking community as a means of identification when cashing checks for nondepositors and which contains the name and address of the purchaser, and shall record the specific identifying information ( e.g., (2) If the purchaser does not have a deposit account with the financial institution: (i)(A) The name and address of the purchaser; (B) The social security number of the purchaser, or if the purchaser is an alien and does not have a social security number, the alien identification number; (C) The date of birth of the purchaser; (D) The date of purchase; (E) The type(s) of instrument(s) purchased; (F) The serial number(s) of the instrument(s) purchased; and (G) The amount in dollars of each of the instrument(s) purchased. (ii) In addition, the financial institution shall verify the purchaser's name and address by examination of a document which is normally acceptable within the banking community as a means of identification when cashing checks for nondepositors and which contains the name and address of the purchaser, and shall record the specific identifying information ( e.g., (b) Contemporaneous purchases of the same or different types of instruments totaling $3,000 or more shall be treated as one purchase. Multiple purchases during one business day totaling $3,000 or more shall be treated as one purchase if an individual employee, director, officer, or partner of the financial institution has knowledge that these purchases have occurred. (c) Records required to be kept shall be retained by the financial institution for a period of five years and shall be made available to the Secretary upon request at any time. § 1010.420 Records to be made and retained by persons having financial interests in foreign financial accounts. Records of accounts required by § 1010.350 to be reported to the Commissioner of Internal Revenue shall be retained by each person having a financial interest in or signature or other authority over any such account. Such records shall contain the name in which each such account is maintained, the number or other designation of such account, the name and address of the foreign bank or other person with whom such account is maintained, the type of such account, and the maximum value of each such account during the reporting period. Such records shall be retained for a period of 5 years and shall be kept at all times available for inspection as authorized by law. In the computation of the period of 5 years, there shall be disregarded any period beginning with a date on which the taxpayer is indicted or information instituted on account of the filing of a false or fraudulent Federal income tax return or failing to file a Federal income tax return, and ending with the date on which final disposition is made of the criminal proceeding. § 1010.430 Nature of records and retention period. (a) Wherever it is required that there be retained either the original or a copy or reproduction of a check, draft, monetary instrument, investment security, or other similar instrument, there shall be retained a copy of both front and back of each such instrument or document, except that no copy need be retained of the back of any instrument or document which is entirely blank or which contains only standardized printed information, a copy of which is on file. (b) Records required by this chapter to be retained by financial institutions may be those made in the ordinary course of business by a financial institution. If no record is made in the ordinary course of business of any transaction with respect to which records are required to be retained by this chapter, then such a record shall be prepared in writing by the financial institution. (c) The rules and regulations issued by the Internal Revenue Service under 26 U.S.C. 6109 determine what constitutes a taxpayer identification number and whose number shall be obtained in the case of an account maintained by one or more persons. (d) All records that are required to be retained by this chapter shall be retained for a period of five years. Records or reports required to be kept pursuant to an order issued under § 1010.370 of this chapter shall be retained for the period of time specified in such order, not to exceed five years. All such records shall be filed or stored in such a way as to be accessible within a reasonable period of time, taking into consideration the nature of the record, and the amount of time expired since the record was made. [75 FR 65812, Oct. 26, 2010, as amended at 81 FR 76864, Nov. 4, 2016] § 1010.440 Person outside the United States. For the purposes of this chapter, a remittance or transfer of funds, or of currency, other monetary instruments, checks, investment securities, or credit to the domestic account of a person whose address is known by the person making the remittance or transfer, to be outside the United States, shall be deemed to be a remittance or transfer to a person outside the United States, except that, unless otherwise directed by the Secretary, this section shall not apply to a transaction on the books of a domestic financial institution involving the account of a customer of such institution whose address is within approximately 50 miles of the location of the institution, or who is known to be temporarily outside the United States. Subpart E—Special Information Sharing Procedures To Deter Money Laundering and Terrorist Activity § 1010.500 General. Sections 1010.505 through 1010.540 of this subpart E were issued pursuant to the requirements of section 314 of the USA PATRIOT Act. Each financial institution (as defined in 31 U.S.C. 5312(a)(2) or (c)(1)) should refer to its chapter X part for any additional special information sharing procedures. § 1010.505 Definitions. For purposes of this subpart E, the following definitions apply: (a) Account (b) Money laundering (c) Terrorist activity (d) Transaction. (2) For purposes of § 1010.520, a transaction shall not mean any transaction conducted through an account. § 1010.520 Information sharing between government agencies and financial institutions. (a) Definitions. (1) Financial institution (2) Law enforcement agency (b) Information requests based on credible evidence concerning terrorist activity or money laundering In general. (2) Requests from FinCEN. (3) Obligations of a financial institution receiving an information request Record search. (A) Any current account maintained for a named suspect; (B) Any account maintained for a named suspect during the preceding twelve months; and (C) Any transaction, as defined by § 1010.505(d), conducted by or on behalf of a named suspect, or any transmittal of funds conducted in which a named suspect was either the transmittor or the recipient, during the preceding six months that is required under law or regulation to be recorded by the financial institution or is recorded and maintained electronically by the institution. (ii) Report to FinCEN. (A) The name of such individual, entity, or organization; (B) The number of each such account, or in the case of a transaction, the date and type of each such transaction; and (C) Any Social Security number, taxpayer identification number, passport number, date of birth, address, or other similar identifying information provided by the individual, entity, or organization when each such account was opened or each such transaction was conducted. (iii) Designation of contact person. (iv) Use and security of information request. ( 1 ( 2 ( 3 (B)( 1 ( 2 1 (C) Each financial institution shall maintain adequate procedures to protect the security and confidentiality of requests from FinCEN for information under this section. The requirements of this paragraph (b)(3)(iv)(C) shall be deemed satisfied to the extent that a financial institution applies to such information procedures that the institution has established to satisfy the requirements of section 501 of the Gramm-Leach-Bliley Act (15 U.S.C. 6801), and applicable regulations issued thereunder, with regard to the protection of its customers' nonpublic personal information. (v) No other action required. (4) Relation to the Right to Financial Privacy Act and the Gramm-Leach-Bliley Act. (5) No effect on law enforcement or regulatory investigations. § 1010.530 [Reserved] § 1010.540 Voluntary information sharing among financial institutions. (a) Definitions. (1) Financial institution. (ii) For purposes of this section, a financial institution shall not mean any institution included within a class of financial institutions that FinCEN has designated as ineligible to share information under this section. (2) Association of financial institutions (b) Voluntary information sharing among financial institutions In general. (2) Notice requirement. http://www.fincen.gov. http://www.fincen.gov., (3) Verification requirement. (4) Use and security of information. (A) Identifying and, where appropriate, reporting on money laundering or terrorist activities; (B) Determining whether to establish or maintain an account, or to engage in a transaction; or (C) Assisting the financial institution in complying with any requirement of this chapter. (ii) Each financial institution or association of financial institutions that engages in the sharing of information pursuant to this section shall maintain adequate procedures to protect the security and confidentiality of such information. The requirements of this paragraph (b)(4)(ii) shall be deemed satisfied to the extent that a financial institution applies to such information procedures that the institution has established to satisfy the requirements of section 501 of the Gramm-Leach-Bliley Act (15 U.S.C. 6801), and applicable regulations issued thereunder, with regard to the protection of its customers' nonpublic personal information. (5) Safe harbor from certain liability In general. (ii) Limitation. (c) Information sharing between financial institutions and the Federal Government. (d) No effect on financial institution reporting obligations. Subpart F—Special Standards of Diligence; Prohibitions; and Special Measures § 1010.600 General. Each financial institution (as defined in 31 U.S.C. 5312(a)(2) or (c)(1)) should refer to its Chapter X Part for any additional special standards of diligence; prohibitions; and special measures requirements. Special Due Diligence for Correspondent Accounts and Private Banking Accounts § 1010.605 Definitions. Link to an amendment published at 89 FR 72274, Sept. 4, 2024. This amendment was delayed until Jan. 1, 2028, at 91 FR 36, Jan. 2, 2026. Except as otherwise provided, the following definitions apply for purposes of §§ 1010.610 through 1010.630 and § 1010.670: (a) Beneficial owner (b) Certification and recertification http://www.fincen.gov. (c) Correspondent account. correspondent account (i) For purposes of § 1010.610(a), (d) and (e), an account established for a foreign financial institution to receive deposits from, or to make payments or other disbursements on behalf of, the foreign financial institution, or to handle other financial transactions related to such foreign financial institution; and (ii) For purposes of §§ 1010.610(b) and (c), 1010.630 and 1010.670, an account established for a foreign bank to receive deposits from, or to make payments or other disbursements on behalf of, the foreign bank, or to handle other financial transactions related to such foreign bank. (2) For purposes of this definition, the term account: (i) As applied to banks (as set forth in paragraphs (e)(1)(i) through (vii) of this section): (A) Means any formal banking or business relationship established by a bank to provide regular services, dealings, and other financial transactions; and (B) Includes a demand deposit, savings deposit, or other transaction or asset account and a credit account or other extension of credit; (ii) As applied to brokers or dealers in securities (as set forth in paragraph (e)(1)(viii) of this section) means any formal relationship established with a broker or dealer in securities to provide regular services to effect transactions in securities, including, but not limited to, the purchase or sale of securities and securities loaned and borrowed activity, and to hold securities or other assets for safekeeping or as collateral; (iii) As applied to futures commission merchants and introducing brokers (as set forth in paragraph (e)(1)(ix) of this section) means any formal relationship established by a futures commission merchant to provide regular services, including, but not limited to, those established to effect transactions in contracts of sale of a commodity for future delivery, options on any contract of sale of a commodity for future delivery, or options on a commodity; and (iv) As applied to mutual funds (as set forth in paragraph (e)(1)(x) of this section) means any contractual or other business relationship established between a person and a mutual fund to provide regular services to effect transactions in securities issued by the mutual fund, including the purchase or sale of securities. (d) Correspondent relationship (e) Covered financial institution (1) For purposes of § 1010.610 and 1010.620: (i) A bank required to have an anti-money laundering compliance program under the regulations implementing 31 U.S.C. 5318(h), 12 U.S.C. 1818(s), or 12 U.S.C. 1786(q)(1); (ii) A broker or dealer in securities registered, or required to be registered, with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq. (iii) A futures commission merchant or an introducing broker registered, or required to be registered, with the Commodity Futures Trading Commission under the Commodity Exchange Act (7 U.S.C. 1 et seq. (iv) A mutual fund; (2) For purposes of §§ 1010.630 and 1010.670: (i) An insured bank (as defined in section 3(h) of the Federal Deposit Insurance Act (12 U.S.C. 1813(h))); (ii) A commercial bank or trust company; (iii) A private banker; (iv) An agency or branch of a foreign bank in the United States; (v) A credit union; (vi) A savings association; (vii) A corporation acting under section 25A of the Federal Reserve Act (12 U.S.C. 611 et seq. (viii) A broker or dealer in securities registered, or required to be registered, with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq. (f) Foreign financial institution. foreign financial institution (i) A foreign bank; (ii) Any branch or office located outside the United States of any covered financial institution described in paragraphs (e)(1)(viii) through (x) of this section; (iii) Any other person organized under foreign law (other than a branch or office of such person in the United States) that, if it were located in the United States, would be a covered financial institution described in paragraphs (e)(1)(viii) through (x) of this section; and (iv) Any person organized under foreign law (other than a branch or office of such person in the United States) that is engaged in the business of, and is readily identifiable as: (A) A dealer in foreign exchange; or (B) A money transmitter. (2) For purposes of paragraph (f)(1)(iv) of this section, a person is not “engaged in the business” of a dealer in foreign exchange or a money transmitter if such transactions are merely incidental to the person's business. (g) Foreign shell bank (h) Non-United States person or non-U.S. person person (i) Offshore banking license (j) Owner. owner (i) Owns, controls, or has the power to vote 25 percent or more of any class of voting securities or other voting interests of a foreign bank; or (ii) Controls in any manner the election of a majority of the directors (or individuals exercising similar functions) of a foreign bank. (2) For purposes of this definition: (i) Members of the same family shall be considered to be one person. (ii) The term same family (iii) Each member of the same family who has an ownership interest in a foreign bank must be identified if the family is an owner as a result of aggregating the ownership interests of the members of the family. In determining the ownership interests of the same family, any voting interest of any family member shall be taken into account. (iv) Voting securities or other voting interests (k) Person (l) Physical presence (1) Is maintained by a foreign bank; (2) Is located at a fixed address (other than solely an electronic address or a post-office box) in a country in which the foreign bank is authorized to conduct banking activities, at which location the foreign bank: (i) Employs one or more individuals on a full-time basis; and (ii) Maintains operating records related to its banking activities; and (3) Is subject to inspection by the banking authority that licensed the foreign bank to conduct banking activities. (m) Private banking account (1) Requires a minimum aggregate deposit of funds or other assets of not less than $1,000,000; (2) Is established on behalf of or for the benefit of one or more non-U.S. persons who are direct or beneficial owners of the account; and (3) Is assigned to, or is administered or managed by, in whole or in part, an officer, employee, or agent of a covered financial institution acting as a liaison between the covered financial institution and the direct or beneficial owner of the account. (n) Regulated affiliate. regulated affiliate (i) 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 (ii) Is subject to supervision by a banking authority in the country regulating such affiliated depository institution, credit union, or foreign bank. (2) For purposes of this definition: (i) Affiliate (ii) Control (A) Ownership, control, or power to vote 50 percent or more of any class of voting securities or other voting interests of another company; or (B) Control in any manner the election of a majority of the directors (or individuals exercising similar functions) of another company. (o) Secretary (p) Senior foreign political figure. senior foreign political figure (i) A current or former: (A) Senior official in the executive, legislative, administrative, military, or judicial branches of a foreign government (whether elected or not); (B) Senior official of a major foreign political party; or (C) Senior executive of a foreign government-owned commercial enterprise; (ii) A corporation, business, or other entity that has been formed by, or for the benefit of, any such individual; (iii) An immediate family member of any such individual; and (iv) A person who is widely and publicly known (or is actually known by the relevant covered financial institution) to be a close associate of such individual. (2) For purposes of this definition: (i) Senior official or executive (ii) Immediate family member [75 FR 65812, Oct. 26, 2010, as amended at 76 FR 43596, July 21, 2011; 85 FR 57137, Sept. 15, 2020] § 1010.610 Due diligence programs for correspondent accounts for foreign financial institutions. (a) In general. (1) Determining whether any such correspondent account is subject to paragraph (b) of this section; (2) Assessing the money laundering risk presented by such correspondent account, based on a consideration of all relevant factors, which shall include, as appropriate: (i) The nature of the foreign financial institution's business and the markets it serves; (ii) The type, purpose, and anticipated activity of such correspondent account; (iii) The nature and duration of the covered financial institution's relationship with the foreign financial institution (and any of its affiliates); (iv) The anti-money laundering and supervisory regime of the jurisdiction that issued the charter or license to the foreign financial institution, and, to the extent that information regarding such jurisdiction is reasonably available, of the jurisdiction in which any company that is an owner of the foreign financial institution is incorporated or chartered; and (v) Information known or reasonably available to the covered financial institution about the foreign financial institution's anti-money laundering record; and (3) Applying risk-based procedures and controls to each such correspondent account reasonably designed to detect and report known or suspected money laundering activity, including a periodic review of the correspondent account activity sufficient to determine consistency with information obtained about the type, purpose, and anticipated activity of the account. (b) Enhanced due diligence for certain foreign banks. (1) Conduct enhanced scrutiny of such correspondent account to guard against money laundering and to identify and report any suspicious transactions in accordance with applicable law and regulation. This enhanced scrutiny shall reflect the risk assessment of the account and shall include, as appropriate: (i) Obtaining and considering information relating to the foreign bank's anti-money laundering program to assess the risk of money laundering presented by the foreign bank's correspondent account; (ii) Monitoring transactions to, from, or through the correspondent account in a manner reasonably designed to detect money laundering and suspicious activity; and (iii)(A) Obtaining information from the foreign bank about the identity of any person with authority to direct transactions through any correspondent account that is a payable-through account, and the sources and beneficial owner of funds or other assets in the payable-through account. (B) For purposes of paragraph (b)(1)(iii)(A) of this section, a payable-through account (2) Determine whether the foreign bank for which the correspondent account is established or maintained in turn maintains correspondent accounts for other foreign banks that use the foreign correspondent account established or maintained by the covered financial institution and, if so, take reasonable steps to obtain information relevant to assess and mitigate money laundering risks associated with the foreign bank's correspondent accounts for other foreign banks, including, as appropriate, the identity of those foreign banks. (3)(i) Determine, for any correspondent account established or maintained for a foreign bank whose shares are not publicly traded, the identity of each owner of the foreign bank and the nature and extent of each owner's ownership interest. (ii) For purposes of paragraph (b)(3)(i) of this section: (A) Owner ( 1 ( 2 Same family (B) Publicly traded (c) Foreign banks to be accorded enhanced due diligence. (1) An offshore banking license; (2) A banking license issued by a foreign country that has been designated as non-cooperative with international anti-money laundering principles or procedures by an intergovernmental group or organization of which the United States is a member and with which designation the U.S. representative to the group or organization concurs; or (3) A banking license issued by a foreign country that has been designated by the Secretary as warranting special measures due to money laundering concerns. (d) Special procedures when due diligence or enhanced due diligence cannot be performed. (e) Applicability rules for general due diligence. (1) General rules Correspondent accounts established on or after July 5, 2006. (ii) Correspondent accounts established before July 5, 2006. (2) Special rules for certain banks. (3) Special rules for all other covered financial institutions. (f) Applicability rules for enhanced due diligence. (1) General rules Correspondent accounts established on or after February 5, 2008. (ii) Correspondent accounts established before February 5, 2008. (2) Special rules for certain banks. (3) Special rules for all other covered financial institutions. (g) Exemptions Exempt financial institutions. (2) Other compliance obligations of financial institutions unaffected. § 1010.620 Due diligence programs for private banking accounts. (a) In general. (b) Minimum requirements. (1) Ascertain the identity of all nominal and beneficial owners of a private banking account; (2) Ascertain whether any person identified under paragraph (b)(1) of this section is a senior foreign political figure; (3) Ascertain the source(s) of funds deposited into a private banking account and the purpose and expected use of the account; and (4) Review the activity of the account to ensure that it is consistent with the information obtained about the client's source of funds, and with the stated purpose and expected use of the account, as needed to guard against money laundering, and to report, in accordance with applicable law and regulation, any known or suspected money laundering or suspicious activity conducted to, from, or through a private banking account. (c) Special requirements for senior foreign political figures. (2) For purposes of this paragraph (c), the term proceeds of foreign corruption (d) Special procedures when due diligence cannot be performed. (e) Applicability rules. (1) General rules (ii) Private banking accounts established before July 5, 2006. Effective October 2, 2006, the requirements of this section shall apply to each private banking account established before July 5, 2006. (2) Special rules for certain banks and for brokers or dealers in securities, futures commission merchants, and introducing brokers. (3) Special rules for federally regulated trust banks or trust companies, and mutual funds. (4) Exemptions Exempt financial institutions. (ii) Other compliance obligations of financial institutions unaffected. § 1010.630 Prohibition on correspondent accounts for foreign shell banks; records concerning owners of foreign banks and agents for service of legal process. (a) Requirements for covered financial institutions Prohibition on correspondent accounts for foreign shell banks. (ii) 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 a foreign shell bank. (iii) Nothing in paragraph (a)(1) of this section prohibits a covered financial institution from providing a correspondent account or banking services to a regulated affiliate. (2) Records of owners and agents. (ii) A covered financial institution need not maintain records of the owners of any foreign bank that is required to have on file with the Federal Reserve Board a Form FR Y-7 that identifies the current owners of the foreign bank as required by such form. (iii) For purposes of paragraph (a)(2)(i) of this section, publicly traded (b) Safe harbor. (c) Interim verification. (d) Closure of correspondent accounts Accounts existing on October 28, 2002. (2) Accounts established after October 28, 2002. (3) Verification of previously provided information. (4) Reestablishment of closed accounts and establishment of new accounts. (5) Limitation on liability. (e) Recordkeeping requirement. (f) Special rules concerning information requested prior to October 28, 2002 Definition. (i) The Interim Guidance of the Department of the Treasury dated November 20, 2001 and published in the Federal Register (ii) The guidance issued in a document published in the Federal Register (2) Use of Interim Guidance certification. (3) Recordkeeping requirement. § 1010.640 [Reserved] Special Measures Under Section 311 of the USA Patriot Act and Law Enforcement Access to Foreign Bank Records § 1010.651 Special measures against Burma. (a) Definitions. (1) Burmese banking institution (2) Correspondent account (3) Covered financial institution (i) A futures commission merchant or an introducing broker registered, or required to register, with the Commodity Futures Trading Commission under the Commodity Exchange Act (7 U.S.C. 1 et seq. (ii) An investment company (as defined in section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a-5)) that is an open-end company (as defined in section 5 of the Investment Company Act (15 U.S.C. 80a-5)) and that is registered, or required to register, with the Securities and Exchange Commission pursuant to that Act. (b) Requirements for covered financial institutions Prohibition on correspondent accounts. (2) Prohibition on indirect correspondent accounts. (ii) A covered financial institution required to terminate an account pursuant to paragraph (b)(2)(i) of this section: (A) Shall do so within a commercially reasonable time, and shall not permit the foreign bank to establish any new positions or execute any transactions through such account, other than those necessary to close the account; and (B) May reestablish an account closed pursuant to this paragraph if it determines that the account will not be used to provide banking services indirectly to a Burmese banking institution. (3) Exception. (4) Reporting and recordkeeping not required. § 1010.653 Special measures against Commercial Bank of Syria. (a) Definitions. (1) Commercial Bank of Syria (2) Correspondent account (3) Covered financial institution (i) An insured bank (as defined in section 3(h) of the Federal Deposit Insurance Act (12 U.S.C. 1813(h))); (ii) A commercial bank; (iii) An agency or branch of a foreign bank in the United States; (iv) A federally insured credit union; (v) A savings association; (vi) A corporation acting under section 25A of the Federal Reserve Act (12 U.S.C. 611 et seq. (vii) A trust bank or trust company that is federally regulated and is subject to an anti-money laundering program requirement; (viii) A broker or dealer in securities registered, or required to be registered, with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq. (ix) A futures commission merchant or an introducing broker registered, or required to be registered, with the Commodity Futures Trading Commission under the Commodity Exchange Act (7 U.S.C. 1 et seq. (x) A mutual fund, which means an investment company (as defined in section 3(a)(1) of the Investment Company Act of 1940 ((“Investment Company Act”) (15 U.S.C. 80a-3(a)(1))) that is an open-end company (as defined in section 5(a)(1) of the Investment Company Act (15 U.S.C. 80a-5(a)(1))) and that is registered, or is required to register with the Securities and Exchange Commission pursuant to the Investment Company Act. (4) Subsidiary (b) Requirements for covered financial institutions Prohibition on direct use of correspondent accounts. (2) Due diligence of correspondent accounts to prohibit indirect use. (A) Notifying correspondent account holders that the correspondent account may not be used to provide Commercial Bank of Syria with access to the covered financial institution; and (B) Taking reasonable steps to identify any indirect use of its correspondent accounts by Commercial Bank of Syria, to the extent that such indirect use can be determined from transactional records maintained in the covered financial institution's normal course of business. (ii) A covered financial institution shall take a risk-based approach when deciding what, if any, additional due diligence measures it should adopt to guard against the indirect use of its correspondent accounts by Commercial Bank of Syria. (iii) A covered financial institution that obtains knowledge that a correspondent account is being used by the foreign bank to provide indirect access to Commercial Bank of Syria shall take all appropriate steps to prevent such indirect access, including, where necessary, terminating the correspondent account. (iv) A covered financial institution required to terminate a correspondent account pursuant to paragraph (b)(2)(iii) of this section: (A) Should do so within a commercially reasonable time, and should not permit the foreign bank to establish any new positions or execute any transaction through such correspondent account, other than those necessary to close the correspondent account; and (B) May reestablish a correspondent account closed pursuant to this paragraph if it determines that the correspondent account will not be used to provide banking services indirectly to Commercial Bank of Syria. (3) Recordkeeping and reporting. (ii) Nothing in this section shall require a covered financial institution to report any information not otherwise required to be reported by law or regulation. § 1010.658 Special measures against FBME Bank, Ltd. (a) Definitions. (1) FBME Bank, Ltd. (2) Correspondent account (3) Covered financial institution (4) Subsidiary (b) Prohibition on accounts and due diligence requirements for covered financial institutions Prohibition on use of correspondent accounts. (2) Special due diligence of correspondent accounts to prohibit use (A) Notifying those correspondent account holders that the covered financial institution knows or has reason to know provide services to FBME Bank, Ltd., that such correspondents may not provide FBME Bank, Ltd. with access to the correspondent account maintained at the covered financial institution; and (B) Taking reasonable steps to identify any use of its foreign correspondent accounts by FBME Bank, Ltd., to the extent that such use can be determined from transactional records maintained in the covered financial institution's normal course of business. (ii) A covered financial institution shall take a risk-based approach when deciding what, if any, other due diligence measures it reasonably must adopt to guard against the use of its foreign correspondent accounts to process transactions involving FBME Bank, Ltd. (iii) A covered financial institution that obtains knowledge that a foreign correspondent account may be being used to process transactions involving FBME Bank, Ltd. shall take all appropriate steps to further investigate and prevent such access, including the notification of its correspondent account holder under paragraph (b)(2)(i)(A) of this section and, where necessary, termination of the correspondent account. (iv) A covered financial institution required to terminate a correspondent account pursuant to paragraph (b)(2)(iii) of this section: (A) Should do so within a commercially reasonable time, and should not permit the foreign bank to establish any new positions or execute any transaction through such correspondent account, other than those necessary to close the correspondent account; and (B) May reestablish a correspondent account closed pursuant to this paragraph if it determines that the correspondent account will not be used to provide banking services indirectly to FBME Bank Ltd. (3) Recordkeeping and reporting. (ii) Nothing in this paragraph (b) shall require a covered financial institution to report any information not otherwise required to be reported by law or regulation. [81 FR 18493, Mar. 31, 2016] § 1010.659 Special measures against North Korea. (a) Definitions. (1) North Korean banking institution (2) North Korean financial institution (3) Foreign bank (4) Correspondent account (5) Covered financial institution (6) Subsidiary (b) Prohibition on accounts and due diligence requirements for covered financial institutions Opening or maintenance of correspondent accounts for a North Korean banking institution. (2) Prohibition on use of correspondent accounts involving North Korean financial institutions. (3) Special due diligence of correspondent accounts to prohibit use. (A) Notifying those foreign correspondent account holders that the covered financial institution knows or has reason to believe provide services to a North Korean financial institution that such correspondents may not provide a North Korean financial institution with access to the correspondent account maintained at the covered financial institution; and (B) Taking reasonable steps to identify any use of its foreign correspondent accounts by a North Korean financial institution, to the extent that such use can be determined from transactional records maintained in the covered financial institution's normal course of business. (ii) A covered financial institution shall take a risk-based approach when deciding what, if any, other due diligence measures it reasonably must adopt to guard against the use of its foreign correspondent accounts to process transactions involving North Korean financial institutions. (iii) A covered financial institution that knows or has reason to believe that a foreign bank's correspondent account has been or is being used to process transactions involving a North Korean financial institution shall take all appropriate steps to further investigate and prevent such access, including the notification of its correspondent account holder under paragraph (b)(3)(i)(A) of this section and, where necessary, termination of the correspondent account. (4) Recordkeeping and reporting. (ii) Nothing in this paragraph (b) shall require a covered financial institution to report any information not otherwise required to be reported by law or regulation. [81 FR 78721, Nov. 9, 2016] § 1010.660 Special measures against Bank of Dandong. (a) Definitions. (1) Bank of Dandong (2) Correspondent account (3) Covered financial institution (4) Foreign banking institution (5) Subsidiary (b) Prohibition on accounts and due diligence requirements for covered financial institutions Opening or maintaining correspondent accounts for Bank of Dandong. (2) Prohibition on use of correspondent accounts involving Bank of Dandong. (3) Special due diligence of correspondent accounts to prohibit use. (A) Notifying those foreign correspondent account holders that the covered financial institution knows or has reason to believe provide services to Bank of Dandong that such correspondents may not provide Bank of Dandong with access to the correspondent account maintained at the covered financial institution; and (B) Taking reasonable steps to identify any use of its foreign correspondent accounts by Bank of Dandong, to the extent that such use can be determined from transactional records maintained in the covered financial institution's normal course of business. (ii) A covered financial institution shall take a risk-based approach when deciding what, if any, other due diligence measures it reasonably must adopt to guard against the use of its foreign correspondent accounts to process transactions involving Bank of Dandong. (iii) A covered financial institution that knows or has reason to believe that a foreign bank's correspondent account has been or is being used to process transactions involving Bank of Dandong shall take all appropriate steps to further investigate and prevent such access, including the notification of its correspondent account holder under paragraph (b)(3)(i)(A) of this section and, where necessary, termination of the correspondent account. (4) Recordkeeping and reporting. (ii) Nothing in this paragraph (b) shall require a covered financial institution to report any information not otherwise required to be reported by law or regulation. [82 FR 51765, Nov. 8, 2017] § 1010.661 Special measures against Iran. (a) Definitions. (1) Iranian financial institution (2) Correspondent account (3) Covered financial institution (4) Foreign bank (5) Subsidiary (b) Prohibition on accounts and due diligence requirements for covered financial institutions Opening or maintaining correspondent accounts for Iranian financial institutions. Note 1 to paragraph ( b Note that covered financial institutions should block and report to OFAC any accounts that are blocked pursuant to any OFAC sanctions authority and therefore should continue to maintain such accounts in accordance with the Reporting Procedures and Penalties Regulations, 31 CFR part 501. (2) Prohibition on use of correspondent accounts. et seq. (3) Special due diligence of correspondent accounts to prohibit use. (A) Notifying those foreign correspondent account holders that the covered financial institution knows or has reason to believe the correspondent account is being used to process transactions involving Iranian financial institutions that such prohibited transactions may not take place; and (B) Taking reasonable steps to identify any use of its foreign correspondent accounts for prohibited transactions involving Iranian financial institutions, to the extent that such use can be determined from transactional records maintained in the covered financial institution's normal course of business. (ii) A covered financial institution shall take a risk-based approach when deciding what, if any, other due diligence measures it reasonably must adopt to guard against the use of its foreign correspondent accounts to process prohibited transactions involving Iranian financial institutions. (iii) A covered financial institution that knows or has reason to believe that a foreign bank's correspondent account has been or is being used to process prohibited transactions involving Iranian financial institutions shall take all appropriate steps to further investigate and prevent such access, including the notification of its correspondent account holder under paragraph (b)(3)(i)(A) of this section and, where necessary, termination of the correspondent account. (4) Recordkeeping and reporting. (ii) Nothing in this section shall require a covered financial institution to report any information not otherwise required to be reported by law or regulation. [84 FR 59313, Nov. 14, 2019] § 1010.663 Special measures regarding Al-Huda Bank. (a) Definitions. For purposes of this section, the following terms have the following meanings. (1) Al-Huda Bank. (2) Correspondent account. (3) Covered financial institution. (4) Foreign banking institution. (5) Subsidiary. (b) Prohibition on accounts and due diligence requirements for covered financial institutions—(1) Prohibition on opening or maintaining correspondent accounts for Al-Huda Bank. A covered financial institution shall not open or maintain in the United States a correspondent account for, or on behalf of, Al-Huda Bank. (2) Prohibition on processing transactions involving Al-Huda Bank. (3) Special due diligence of correspondent accounts to prohibit transactions. (A) Notifying those foreign correspondent account holders that the covered financial institution knows or has reason to believe provide services to Al-Huda Bank that such correspondents may not provide Al-Huda Bank with access to the correspondent account maintained at the covered financial institution; and (B) Taking reasonable steps to identify any use of its foreign correspondent accounts by Al-Huda Bank, to the extent that such use can be determined from transactional records maintained in the covered financial institution's normal course of business. (ii) A covered financial institution shall take a risk-based approach when deciding what, if any, other due diligence measures it reasonably must adopt to guard against the use of its foreign correspondent accounts to process transactions involving Al-Huda Bank. (iii) A covered financial institution that knows or has reason to believe that a foreign bank's correspondent account has been or is being used to process transactions involving Al-Huda Bank shall take all appropriate steps to further investigate and prevent such access, including the notification of its correspondent account holder under paragraph (b)(3)(i)(A) of this section and, where necessary, termination of the correspondent account. (4) Recordkeeping and reporting. (ii) Nothing in this paragraph (b) shall require a covered financial institution to report any information not otherwise required to be reported by law or regulation. [89 FR 55058, July 3, 2024] § 1010.664 Special measures regarding Huione Group. (a) Definitions. (1) Huione Group. (2) Correspondent account. (3) Covered financial institution. (4) Foreign banking institution. (5) Subsidiary. (b) Prohibition on accounts and due diligence requirements for covered financial institutions Prohibition on opening or maintaining correspondent accounts for Huione Group. (2) Prohibition on processing transactions involving Huione Group. (3) Special due diligence of correspondent accounts to prohibit transactions. (A) Notifying those foreign correspondent account holders that the covered financial institution knows or has reason to believe provide services to Huione Group that such correspondents may not provide Huione Group with access to the correspondent account maintained at the covered financial institution; and (B) Taking reasonable steps to identify any use of its foreign correspondent accounts by Huione Group, to the extent that such use can be determined from transactional records maintained in the covered financial institution's normal course of business. (ii) A covered financial institution shall take a risk-based approach when deciding what, if any, other due diligence measures it reasonably must adopt to guard against the use of its foreign correspondent accounts to process transactions involving Huione Group. (iii) A covered financial institution that knows or has reason to believe that a foreign bank's correspondent account has been or is being used to process transactions involving Huione Group shall take all appropriate steps to further investigate and prevent such access, including the notification of its correspondent account holder under paragraph (b)(3)(i)(A) of this section and, where necessary, termination of the correspondent account. (4) Recordkeeping and reporting. (ii) Nothing in paragraph (b) of this section shall require a covered financial institution to report any information not otherwise required to be reported by law or regulation. [90 FR 48311, Oct. 16, 2025] § 1010.670 Summons or subpoena of foreign bank records; termination of correspondent relationship. (a) Definitions. (b) Issuance to foreign banks. (c) Issuance to covered financial institutions. (d) Termination upon receipt of notice. (1) To comply with a summons or subpoena issued under paragraph (b) of this section; or (2) To initiate proceedings in a United States court contesting such summons or subpoena. (e) Limitation on liability. (f) Failure to terminate relationship. Subpart G—Administrative Rulings § 1010.710 Scope. This subpart provides that the Director, FinCEN, or his designee, either unilaterally or upon request, may issue administrative rulings interpreting the application of this chapter. § 1010.711 Submitting requests. (a) Each request for an administrative ruling must be in writing and contain the following information: (1) A complete description of the situation for which the ruling is requested, (2) A complete statement of all material facts related to the subject transaction, (3) A concise and unambiguous question to be answered, (4) A statement certifying, to the best of the requestor's knowledge and belief, that the question to be answered is not applicable to any ongoing state or Federal investigation, litigation, grand jury proceeding, or proceeding before any other governmental body involving either the requestor, any other party to the subject transaction, or any other party with whom the requestor has an agency relationship, (5) A statement identifying any information in the request that the requestor considers to be exempt from disclosure under the Freedom of Information Act, 5 U.S.C. 552, and the reason therefor, (6) If the subject situation is hypothetical, a statement justifying why the particular situation described warrants the issuance of a ruling, (7) The signature of the person making the request, or (8) If an agent makes the request, the signature of the agent and a statement certifying the authority under which the request is made. (b) A request filed by a corporation shall be signed by a corporate officer and a request filed by a partnership shall be signed by a partner. (c) A request may advocate a particular proposed interpretation and may set forth the legal and factual basis for that interpretation. (d) Requests shall be addressed to: Director, Financial Crimes Enforcement Network, P.O. Box 39, Vienna, VA 22183. (e) The requester shall advise the Director, FinCEN, immediately in writing of any subsequent change in any material fact or statement submitted with a ruling request in conformity with paragraph (a) of this section. § 1010.712 Nonconforming requests. The Director, FinCEN, or his designee shall notify the requester if the ruling request does not conform with the requirements of § 1010.711. The notice shall be in writing and shall describe the requirements that have not been met. A request that is not brought into conformity with such requirements within 30 days from the date of such notice, unless extended for good cause by FinCEN, shall be treated as though it were withdrawn. § 1010.713 Oral communications. (a) The Director of FinCEN or his designee will not issue administrative rulings in response to oral requests. Oral opinions or advice by Treasury, Customs and Border Protection, the Internal Revenue Service, the Office of the Comptroller of the Currency, or any other bank supervisory agency personnel, regarding the interpretation and application of this chapter, do not bind FinCEN and carry no precedential value. (b) A person who has made a ruling request in conformity with § 1010.711 may request an opportunity for oral discussion of the issues presented in the request. The request should be made to the Director, FinCEN, and any decision to grant such a conference is wholly within the discretion of the Director. Personal conferences or telephone conferences may be scheduled only for the purpose of affording the requester an opportunity to discuss freely and openly the matters set forth in the administrative ruling request. Accordingly, the conferees will not be bound by any argument or position advocated or agreed to, expressly or impliedly, during the conference. Any new arguments or facts put forth by the requester at the meeting must be reduced to writing by the requester and submitted in conformity with § 1010.711 before they may be considered in connection with the request. § 1010.714 Withdrawing requests. A person may withdraw a request for an administrative ruling at any time before the ruling has been issued. § 1010.715 Issuing rulings. The Director, FinCEN, or his designee may issue a written ruling interpreting the relationship between this chapter and each situation for which such a ruling has been requested in conformity with § 1010.711. A ruling issued under this section shall bind FinCEN only in the event that the request describes a specifically identified actual situation. A ruling issued under this section shall have precedential value, and hence may be relied upon by others similarly situated, only if FinCEN makes it available to the public through publication on the FinCEN Web site under the heading “Administrative rulings” or other appropriate forum. All rulings with precedential value will be available by mail to any person upon written request specifically identifying the ruling sought. FinCEN will make every effort to respond to each requestor within 90 days of receiving a request. (Approved by the Office of Management and Budget under control number 1506-0050) [75 FR 65812, Oct. 26, 2010, as amended at 81 FR 76864, Nov. 4, 2016] § 1010.716 Modifying or rescinding rulings. (a) The Director, FinCEN, or his designee may modify or rescind any ruling made pursuant to § 1010.715: (1) When, in light of changes in the statute or regulations, the ruling no longer sets forth the interpretation of the Director, FinCEN with respect to the described situation, (2) When any fact or statement submitted in the original ruling request is found to be materially inaccurate or incomplete, or (3) For other good cause. (b) Any person may submit to the Director, FinCEN a written request that an administrative ruling be modified or rescinded. The request should conform to the requirements of § 1010.711, explain why rescission or modification is warranted, and refer to any reasons in paragraph (a) of this section that are relevant. The request may advocate an alternative interpretation and may set forth the legal and factual basis for that interpretation. (c) FinCEN shall modify an existing administrative ruling by issuing a new ruling that rescinds the relevant prior ruling. Once rescinded, an administrative ruling shall no longer have any precedential value. (d) An administrative ruling may be modified or rescinded retroactively with respect to one or more parties to the original ruling request if the Director, FinCEN, determines that: (1) A fact or statement in the original ruling request was materially inaccurate or incomplete, (2) The requestor failed to notify in writing FinCEN of a material change to any fact or statement in the original request, or (3) A party to the original request acted in bad faith when relying upon the ruling. § 1010.717 Disclosing information. (a) Any part of any administrative ruling, including names, addresses, or information related to the business transactions of private parties, may be disclosed pursuant to a request under the Freedom of Information Act, 5 U.S.C. 552. If the request for an administrative ruling contains information which the requestor wishes to be considered for exemption from disclosure under the Freedom of Information Act, the requestor should clearly identify such portions of the request and the reasons why such information should be exempt from disclosure. (b) A requestor claiming an exemption from disclosure will be notified, at least 10 days before the administrative ruling is issued, of a decision not to exempt any of such information from disclosure so that the underlying request for an administrative ruling can be withdrawn if the requestor so chooses. Subpart H—Enforcement; Penalties; and Forfeiture § 1010.810 Enforcement. Link to an amendment published at 89 FR 72275, Sept. 4, 2024. This amendment was delayed until Jan. 1, 2028, at 91 FR 36, Jan. 2, 2026. (a) Overall authority for enforcement and compliance, including coordination and direction of procedures and activities of all other agencies exercising delegated authority under this chapter, is delegated to the Director, FinCEN. (b) Authority to examine institutions to determine compliance with the requirements of this chapter is delegated as follows: (1) To the Comptroller of the Currency with respect to those financial institutions regularly examined for safety and soundness by national bank examiners; (2) To the Board of Governors of the Federal Reserve System with respect to those financial institutions regularly examined for safety and soundness by Federal Reserve bank examiners; (3) To the Federal Deposit Insurance Corporation with respect to those financial institutions regularly examined for safety and soundness by FDIC bank examiners; (4) To the Federal Home Loan Bank Board with respect to those financial institutions regularly examined for safety and soundness by FHLBB bank examiners; (5) To the Chairman of the Board of the National Credit Union Administration with respect to those financial institutions regularly examined for safety and soundness by NCUA examiners. (6) To the Securities and Exchange Commission with respect to brokers and dealers in securities and investment companies as that term is defined in the Investment Company Act of 1940 (15 U.S.C. 80-1 et seq. (7) To the Commissioner of Customs and Border Protection with respect to §§ 1010.340 and 1010.830; (8) To the Commissioner of Internal Revenue with respect to all financial institutions, except brokers or dealers in securities, mutual funds, futures commission merchants, introducing brokers in commodities, and commodity trading advisors, not currently examined by Federal bank supervisory agencies for soundness and safety; and (9) To the Commodity Futures Trading Commission with respect to futures commission merchants, introducing brokers in commodities, and commodity trading advisors. (10) To the Federal Housing Finance Agency with respect to the housing government sponsored enterprises, as defined in § 1010.100(mmm) of this part. (c) Authority for investigating criminal violations of this chapter is delegated as follows: (1) To the Commissioner of Customs and Border Protection with respect to § 1010.340; (2) To the Commissioner of Internal Revenue except with respect to § 1010.340. (d) Authority for the imposition of civil penalties for violations of this chapter lies with the Director of FinCEN. (e) Periodic reports shall be made to the Director, FinCEN by each agency to which compliance authority has been delegated under paragraph (b) of this section. These reports shall be in such a form and submitted at such intervals as the Director, FinCEN may direct. Evidence of specific violations of any of the requirements of this chapter may be submitted to the Director, FinCEN at any time. (f) The Director, FinCEN or his delegate, and any agency to which compliance has been delegated under paragraph (b) of this section, may examine any books, papers, records, or other data of domestic financial institutions relevant to the recordkeeping or reporting requirements of this chapter. (g) The authority to enforce the provisions of 31 U.S.C. 5314 and §§ 1010.350 and 1010.420 of this chapter has been redelegated from FinCEN to the Commissioner of Internal Revenue by means of a Memorandum of Agreement between FinCEN and IRS. Such authority includes, with respect to 31 U.S.C. 5314 and 1010.350 and 1010.420 of this chapter, the authority to: assess and collect civil penalties under 31 U.S.C. 5321 and 31 CFR 1010.820; investigate possible civil violations of these provisions (in addition to the authority already provided at paragraph (c)(2)) of this section); employ the summons power of subpart I of this part 1010; issue administrative rulings under subpart G of this part 1010; and take any other action reasonably necessary for the enforcement of these and related provisions, including pursuit of injunctions. [75 FR 65812, Oct. 26, 2010, as amended at 79 FR 103755, Feb. 25, 2014] § 1010.820 [Reserved] § 1010.821 Penalty adjustment and table. (a) Inflation adjustments. (b) Maximum civil monetary penalties. Table 1 to § 1010.821—Penalty Adjustment Table U.S. Code citation Civil monetary penalty description Penalties as last Maximum penalty 12 U.S.C. 1829b(j) Relating to Recordkeeping Violations for Funds Transfers $10,000 $26,262 12 U.S.C. 1955 Willful or Grossly Negligent Recordkeeping Violations 10,000 26,262 31 U.S.C. 5318(k)(3)(C) Failure to Terminate Correspondent Relationship with Foreign Bank 10,000 17,765 31 U.S.C. 5321(a)(1) General Civil Penalty Provision for Willful Violations of Bank Secrecy Act Requirements 25,000 71,545 31 U.S.C. 5321(a)(5)(B)(i) Foreign Financial Agency Transaction—Non-Willful Violation of Transaction 10,000 16,536 31 U.S.C. 5321(a)(5)(C)(i)(I) Foreign Financial Agency Transaction—Willful Violation of Transaction 100,000 165,353 31 U.S.C. 5321(a)(6)(A) Negligent Violation by Financial Institution or Non-Financial Trade or Business 500 1,430 31 U.S.C. 5321(a)(6)(B) Pattern of Negligent Activity by Financial Institution or Non-Financial Trade or Business 50,000 111,308 31 U.S.C. 5321(a)(7) Violation of Certain Due Diligence Requirements, Prohibition on Correspondent Accounts for Shell Banks, and Special Measures 1,000,000 1,776,364 31 U.S.C. 5330(e) Civil Penalty for Failure to Register as Money Transmitting Business 5,000 10,556 31 U.S.C. 5336(h)(3)(A)(i) Civil Penalty for Beneficial Ownership Information Reporting Violation 500 606 31 U.S.C. 5336(h)(3)(B)(i) Civil Penalty for Unauthorized Disclosure or Use of Beneficial Ownership Information 500 606 [81 FR 42505, June 30, 2016, as amended at 82 FR 10439, Feb. 10, 2017; 83 FR 11881, Mar. 19, 2018; 85 FR 9371, Feb. 19, 2020; 86 FR 7349, Jan. 28, 2020; 86 FR 7810, Feb. 2, 2021; 87 FR 3434, Jan. 24, 2022; 88 FR 3312, Jan. 19, 2023; 88 FR 7357, Feb. 3, 2023; 89 FR 4821, Jan. 25, 2024; 90 FR 5630, Jan. 17, 2025] § 1010.830 Forfeiture of currency or monetary instruments. Any currency or other monetary instruments which are in the process of any transportation with respect to which a report is required under § 1010.340 are subject to seizure and forfeiture to the United States if such report has not been filed as required in § 1010.360, or contains material omissions or misstatements. The Secretary may, in his sole discretion, remit or mitigate any such forfeiture in whole or in part upon such terms and conditions as he deems reasonable. § 1010.840 Criminal penalty. (a) Any person who willfully violates any provision of Title I of Public Law 91-508, or of this chapter authorized thereby may, upon conviction thereof, be fined not more than $1,000 or be imprisoned not more than 1 year, or both. Such person may in addition, if the violation is of any provision authorized by Title I of Public Law 91-508 and if the violation is committed in furtherance of the commission of any violation of Federal law punishable by imprisonment for more than 1 year, be fined not more than $10,000 or be imprisoned not more than 5 years, or both. (b) Any person who willfully violates any provision of Title II of Public Law 91-508, or of this chapter authorized thereby, may, upon conviction thereof, be fined not more than $250,000 or be imprisoned not more than 5 years, or both. (c) Any person who willfully violates any provision of Title II of Public Law 91-508, or of this chapter authorized thereby, where the violation is either (1) Committed while violating another law of the United States, or (2) Committed as part of a pattern of any illegal activity involving more than $100,000 in any 12-month period, may, upon conviction thereof, be fined not more than $500,000 or be imprisoned not more than 10 years, or both. (d) Any person who knowingly makes any false, fictitious or fraudulent statement or representation in any report required by this chapter may, upon conviction thereof, be fined not more than $10,000 or be imprisoned not more than 5 years, or both. § 1010.850 Enforcement authority with respect to transportation of currency or monetary instruments. (a) If a customs officer has reasonable cause to believe that there is a monetary instrument being transported without the filing of the report required by §§ 1010.340 and 1010.360 of this chapter, he 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 reasonably believes is transporting such instrument. (b) If the Secretary has reason to believe that currency or monetary instruments are in the process of transportation and with respect to which a report required under § 1010.340 has not been filed or contains material omissions or misstatements, he may apply to any court of competent jurisdiction for a search warrant. Upon a showing of probable cause, the court may issue a warrant authorizing the search of any or all of the following: (1) One or more designated persons. (2) One or more designated or described places or premises. (3) One or more designated or described letters, parcels, packages, or other physical objects. (4) One or more designated or described vehicles. Any application for a search warrant pursuant to this section shall be accompanied by allegations of fact supporting the application. (c) This section is not in derogation of the authority of the Secretary under any other law or regulation. Subpart I—Summons § 1010.911 General. For any investigation for the purpose of civil enforcement of violations of the Bank Secrecy Act, or any regulation issued pursuant to the Bank Secrecy Act, the Secretary or delegate of the Secretary may summon a financial institution or an officer or employee of a financial institution (including a former officer or employee), or any person having possession, custody, or care of any of the records and reports required under the Bank Secrecy Act or this chapter to appear before the Secretary or his delegate, at a time and place named in the summons, and to give testimony, under oath, and be examined, and to produce such books, papers, records, or other data as may be relevant or material to such investigation. § 1010.912 Persons who may issue summons. For purposes of this chapter, the following officials are hereby designated as delegates of the Secretary who are authorized to issue a summons under § 1010.911, solely for the purposes of civil enforcement of this chapter: (a) FinCEN. (b) Internal Revenue Service. (c) Customs and Border Protection. § 1010.913 Contents of summons. (a) Summons for testimony. (1) The name, title, address, and telephone number of the person before whom the appearance shall take place (who may be a person other than the persons who are authorized to issue such a summons under § 1010.912 of this chapter); (2) The address to which the person summoned shall report for the appearance; (3) The date and time of the appearance; and (4) The name, title, address, and telephone number of the person who has issued the summons. (b) Summons of books, papers, records, or data. (1) The name, title, address, and telephone number of the person to whom the materials shall be produced (who may be a person other than the persons who are authorized to issue such a summons under § 1010.912 of this chapter); (2) The address at which the person summoned shall produce the materials, not to exceed 500 miles from any place where the financial institution operates or conducts business in the United States; (3) The specific manner of production, whether by personal delivery, by mail, or by messenger service; (4) The date and time for production; and (5) The name, title, address, and telephone number of the person who has issued the summons. § 1010.914 Service of summons. (a) Who may serve. (b) Manner of service. (1) Upon any person, by registered mail, return receipt requested, directed to the person summoned; (2) Upon a natural person by personal delivery; or (3) Upon any other person by delivery to an officer, managing or general agent, or any other agent authorized to receive service of process. (c) Certificate of service. § 1010.915 Examination of witnesses and records. (a) General. (b) Testimony taken under oath. (c) Disclosure of summons, testimony, or records. (1) Make public the name of any person to whom a summons has been issued under this chapter, or release any information to the public concerning that person or the issuance of a summons to that person prior to the time and date set for that person's appearance or production of records; or (2) Disclose any testimony taken (including the name of the witness) or material presented pursuant to the summons, to any person other than an officer or employee of the Treasury Department or of any component thereof. Nothing in the preceding sentence shall preclude a delegate of the Secretary, or other officer or employee of the Treasury Department or any component thereof, from disclosing testimony taken, or material presented pursuant to a summons issued under this chapter, to any person in order to obtain necessary information for investigative purposes relating to the performance of official duties, or to any officer or employee of the Department of Justice in connection with a possible violation of Federal law. § 1010.916 Enforcement of summons. In the case of contumacy by, or refusal to obey a summons issued to, any person under this chapter, the Secretary or any delegate of the Secretary listed under § 1010.912 of this chapter shall refer the matter to the Attorney General or delegate of the Attorney General (including any United States Attorney or Assistant United States Attorney, as appropriate), who may bring an action to compel compliance with the summons in any court of the United States within the jurisdiction of which the investigation which gave rise to the summons being or has been carried on, the jurisdiction in which the person summoned is a resident, or the jurisdiction in which the person summoned carries on business or may be found. When a referral is made by a delegate of the Secretary other than a delegate named in § 1010.912(a) of this chapter, prompt notification of the referral must be made to the Director, FinCEN. The court may issue an order requiring the person summoned to appear before the Secretary or delegate of the Secretary to produce books, papers, records, or other data, to give testimony as may be necessary in order to explain how such material was compiled and maintained, and to pay the costs of the proceeding. Any failure to obey the order of the court may be punished by the court as a contempt thereof. All process in any case under this section may be served in any judicial district in which such person may be found. § 1010.917 Payment of expenses. Persons summoned under this chapter 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. The United States shall not be liable for any other expense incurred in connection with the production of books, papers, records, or other data under this chapter. Subpart J—Miscellaneous § 1010.920 Access to records. Except as provided in §§ 1020.410(b)(1), 1021.410(a), and 1023.410(a)(1), and except for the purpose of assuring compliance with the recordkeeping and reporting requirements of this chapter, this chapter does not authorize the Secretary or any other person to inspect or review the records required to be maintained by this chapter. Other inspection, review or access to such records is governed by other applicable law. § 1010.930 Rewards for informants. (a) If an individual provides original information which leads to a recovery of a criminal fine, civil penalty, or forfeiture, which exceeds $50,000, for a violation of the provisions of the Bank Secrecy Act or of this chapter, the Secretary may pay a reward to that individual. (b) The Secretary shall determine the amount of the reward to be paid under this section; however, any reward paid may not be more than 25 percent 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 original information described in paragraph (a) in the performance of official duties is not eligible for a reward under this section. § 1010.940 Photographic or other reproductions of Government obligations. Nothing herein contained shall require or authorize the reproduction of: (a) Currency or other obligation or security of the United States as defined in 18 U.S.C. 8, or (b) Any obligation or other security of any foreign government, the reproduction of which is prohibited by law. [75 FR 65812, Oct. 26, 2010, as amended at 81 FR 76864, Nov. 4, 2016] § 1010.950 Availability of information—general. (a) The Secretary has the discretion to disclose information reported under this chapter, other than information reported pursuant to § 1010.380, for any reason consistent with the purposes of the Bank Secrecy Act, including those set forth in paragraphs (b) through (d) of this section. FinCEN may disclose information reported pursuant to § 1010.380 only as set forth in § 1010.955, and paragraphs (b) through (f) of this section shall not apply to the disclosure of such information. (b) The Secretary may make any information set forth in any report received pursuant to this chapter available to another agency of the United States, to an agency of a state or local government or to an agency of a foreign government, upon the request of the head of such department or agency made in writing and stating the particular information desired, the criminal, tax or regulatory purpose for which the information is sought, and the official need for the information. (c) The Secretary may make any information set forth in any report received pursuant to this chapter available to the Congress, or any committee or subcommittee thereof, upon a written request stating the particular information desired, the criminal, tax or regulatory purpose for which the information is sought, and the official need for the information. (d) The Secretary may make any information set forth in any report received pursuant to this chapter available to any other department or agency of the United States that is a member of the Intelligence Community, as defined by Executive Order 12333 or any succeeding executive order, upon the request of the head of such department or agency made in writing and stating the particular information desired, the national security matter with which the information is sought and the official need therefor. (e) Any information made available under this section to other department or agencies of the United States, any state or local government, or any foreign government shall be received by them in confidence, and shall not be disclosed to any person except for official purposes relating to the investigation, proceeding or matter in connection with which the information is sought. (f) The Secretary may require that a State or local government department or agency requesting information under paragraph (b) of this section pay fees to reimburse the Department of the Treasury for costs incidental to such disclosure. The amount of such fees will be set in accordance with the statute on fees for government services, 31 U.S.C. 9701. [75 FR 65812, Oct. 26, 2010, as amended at 88 FR 88808, Dec. 22, 2023] § 1010.955 Availability of beneficial ownership information reported under this part. (a) Prohibition on disclosure. (1) An officer, employee, contractor, or agent of the United States; (2) An officer, employee, contractor, or agent of any State, local, or Tribal agency; or (3) A director, officer, employee, contractor, or agent of any financial institution. (b) Disclosure of information by FinCEN Disclosure to Federal agencies for use in furtherance of national security, intelligence, or law enforcement activity. (i) National security activity means activity pertaining to the national defense or foreign relations of the United States, as well as activity to protect against threats to the safety and security of the United States; (ii) Intelligence activity means all activities conducted by elements of the United States Intelligence Community that are authorized pursuant to Executive Order 12333, as amended, or any succeeding executive order; and (iii) Law enforcement activity means investigative and enforcement activities relating to civil or criminal violations of law. Such activity does not include the routine supervision or examination of a financial institution by a Federal regulatory agency with authority described in paragraph (b)(4)(ii)(A) of this section. (2) Disclosure to State, local, and Tribal law enforcement agencies for use in criminal or civil investigations. (i) A court of competent jurisdiction is any court with jurisdiction over the investigation for which a State, local, or Tribal law enforcement agency requests information under this paragraph. (ii) A State, local, or Tribal law enforcement agency is an agency of a State, local, or Tribal government that is authorized by law to engage in the investigation or enforcement of civil or criminal violations of law. (3) Disclosure for use in furtherance of foreign national security, intelligence, or law enforcement activity. (i) The request is for assistance in a law enforcement investigation or prosecution, or for a national security or intelligence activity, that is authorized under the laws of the foreign country; and (ii) The request is: (A) Made under an international treaty, agreement, or convention; or (B) Made, when no such treaty, agreement, or convention is available, as an official request by a law enforcement, judicial, or prosecutorial authority of a foreign country determined by FinCEN, with the concurrence of the Secretary of State and in consultation with the Attorney General or other agencies as necessary and appropriate, to be a trusted foreign country. (iii) For purposes of this paragraph (b)(3), a national security activity authorized under the laws of a foreign country is an activity pertaining to the national defense or foreign relations of a country other than the United States, as well as activity to protect against threats to the safety and security of that country. (iv) For purposes of this paragraph (b)(3), an intelligence activity authorized under the laws of a foreign country is an activity conducted by a foreign government agency that is authorized under a foreign legal authority comparable to Executive Order 12333 that is applicable to the agency. (4) Disclosure to facilitate compliance with customer due diligence requirements Financial institutions. (ii) Regulatory agencies. (A) Is authorized by law to assess, supervise, enforce, or otherwise determine the compliance of such financial institution with customer due diligence requirements under applicable law; (B) Will use the information solely for the purpose of conducting the assessment, supervision, or authorized investigation or activity described in paragraph (b)(4)(ii)(A) of this section; and (C) Has entered into an agreement with FinCEN providing for appropriate protocols governing the safekeeping of the information. (5) Disclosure to officers or employees of the Department of the Treasury. (i) Information reported pursuant to § 1010.380 shall be accessible for inspection or disclosure to officers and employees of the Department of the Treasury whose official duties the Secretary determines require such inspection or disclosure. (ii) Officers and employees of the Department of the Treasury may obtain information reported pursuant to § 1010.380 for tax administration as defined in 26 U.S.C. 6103(b)(4). (c) Use of information Use of information by authorized recipients. (2) Disclosure of information by authorized recipients. (ii) Any director, officer, employee, contractor, or agent of a financial institution who receives information disclosed by FinCEN pursuant to a request under paragraph (b)(4)(i) of this section may disclose such information to another director, officer, employee, contractor, or agent of the same financial institution for the particular purpose or activity for which such information was requested, consistent with the requirements of paragraph (d)(2) of this section. (iii) Any director, officer, employee, contractor, or agent of a financial institution that receives information disclosed by FinCEN pursuant to paragraph (b)(4)(i) of this section may disclose such information to the financial institution's Federal functional regulator, a self-regulatory organization that is registered with or designated by a Federal functional regulator pursuant to Federal statute, or other appropriate regulatory agency, provided that the Federal functional regulator, self-regulatory organization, or other appropriate regulatory agency meets the requirements identified in paragraphs (b)(4)(ii)(A) through (C) of this section. A financial institution may rely on a Federal functional regulator, self-regulatory organization, or other appropriate regulatory agency's representation that it meets the requirements. (iv) Any officer, employee, contractor, or agent of a Federal functional regulator that receives information disclosed by FinCEN pursuant to paragraph (b)(4)(ii) of this section may disclose such information to a self-regulatory organization that is registered with or designated by the Federal functional regulator, provided that the self-regulatory organization meets the requirements of paragraphs (b)(4)(ii)(A) through (C) of this section. (v) Any officer, employee, contractor, or agent of a Federal agency that receives information from FinCEN pursuant to a request made under paragraph (b)(3) of this section may disclose such information to the foreign person on whose behalf the Federal agency made the request. (vi) Any officer, employee, contractor, or agent of a Federal agency engaged in a national security, intelligence, or law enforcement activity, or any officer, employee, contractor, or agent of a State, local, or Tribal law enforcement agency, may disclose information reported pursuant to § 1010.380 that it has obtained directly from FinCEN pursuant to a request under paragraph (b)(1) or (2) of this section to a court of competent jurisdiction or parties to a civil or criminal proceeding. (vii) Any officer, employee, contractor, or agent of a requesting agency who receives information disclosed by FinCEN pursuant to a request under paragraph (b)(1), (b)(4)(ii), or (b)(5) of this section may disclose such information to any officer, employee, contractor, or agent of the United States Department of Justice for purposes of making a referral to the Department of Justice or for use in litigation related to the activity for which the requesting agency requested the information. (viii) Any officer, employee, contractor, or agent of a State, local, or Tribal law enforcement agency who receives information disclosed by FinCEN pursuant to a request under paragraph (b)(2) of this section may disclose such information to any officer, employee, contractor, or agent of another State, local, or Tribal agency for purposes of making a referral for possible prosecution by that agency, or for use in litigation related to the activity for which the requesting agency requested the information. (ix) A law enforcement agency, prosecutor, judge, foreign central authority, or foreign competent authority of another country that receives information from a Federal agency pursuant to a request under paragraph (b)(3)(ii)(A) of this section may disclose and use such information consistent with the international treaty, agreement, or convention under which the request was made. (x) FinCEN may by prior written authorization, or by protocols or guidance that FinCEN may issue, authorize persons to disclose information obtained pursuant to paragraph (b) of this section in furtherance of a purpose or activity described in that paragraph. (d) Security and confidentiality requirements Security and confidentiality requirements for domestic agencies General requirements. (A) Agreement. (B) Standards and procedures. (C) Initial report and certification. (D) Secure system for beneficial ownership information storage. (E) Auditability. (F) Restrictions on personnel access to information. ( 1 ( 2 ( 3 ( 4 ( 5 (G) Audit requirements. ( 1 ( 2 ( 3 (H) Semi-annual certification. (I) Annual report on procedures. (ii) Requirements for requests for disclosure. (A) Minimization. (B) Certifications and other requirements. 1 ( i ( ii ( 2 ( i ( ii ( 3 ( i ( ii ( 4 ( i ( ii ( iii ( 5 ( i ( ii (2) Security and confidentiality requirements for financial institutions. (i) Geographic restrictions on information. (A) The People's Republic of China; (B) The Russian Federation; or (C) A jurisdiction: ( 1 ( 2 i.e., ( 3 (ii) Safeguards. (A) Information procedures. ( 1 et seq. ( 2 (B) Notification of information demand. (iii) Consent to obtain information. (iv) Certification. (A) Is requesting the information to facilitate its compliance with customer due diligence requirements under applicable law; (B) Has obtained and documented the consent of the reporting company to request the information from FinCEN; and (C) Has fulfilled all other requirements of paragraph (d)(2) of this section. (3) Security and confidentiality requirements for foreign recipients of information. (ii) To receive information under paragraph (b)(3)(ii)(B) of this section, a foreign person on whose behalf a Federal agency made the request under that paragraph shall ensure that the following requirements are satisfied: (A) Standards and procedures. (B) Secure system for beneficial ownership information storage. (C) Minimization. (D) Restrictions on personnel access to information. ( 1 ( 2 ( 3 (e) Administration of requests Form and manner of requests. (2) Rejection of requests. (ii) FinCEN may reject any request, or otherwise decline to disclose any information in response to a request made under this section, if FinCEN, in its sole discretion, finds that, with respect to the request: (A) The requester has failed to meet any requirement of this section; (B) The information is being requested for an unlawful purpose; or (C) Other good cause exists to deny the request. (3) Suspension of access. (A) The individual requester or requesting entity has failed to meet any requirement of this section; (B) The individual requester or requesting entity has requested information for an unlawful purpose; or (C) Other good cause exists for such debarment or suspension. (ii) FinCEN may reinstate the access of any individual requester or requesting entity that has been suspended or debarred under this paragraph (e)(3) upon satisfaction of any terms or conditions that FinCEN deems appropriate. (f) Violations Unauthorized disclosure or use. (i) A report submitted to FinCEN under § 1010.380; or (ii) A disclosure made by FinCEN pursuant to paragraph (b) of this section. (2) For purposes of paragraph (f)(1) of this section, unauthorized use shall include accessing information without authorization, and shall include any violation of the requirements described in paragraph (d) of this section in connection with any access. [88 FR 88808, Dec. 22, 2023] § 1010.960 Disclosure. All reports required under this chapter and all records of such reports are specifically exempted from disclosure under section 552 of Title 5, United States Code. § 1010.970 Exceptions, exemptions, and reports. (a) The Secretary, in his sole discretion, may by written order or authorization make exceptions to or grant exemptions from the requirements of this chapter. Such exceptions or exemptions may be conditional or unconditional, may apply to particular persons or to classes of persons, and may apply to particular transactions or classes of transactions. They shall, however, be applicable only as expressly Stated in the order of authorization, and they shall be revocable in the sole discretion of the Secretary. (b) The Secretary shall have authority to further define all terms used herein. (c)(1) The Secretary may, as an alternative to the reporting and recordkeeping requirements for casinos in §§ 1010.306(a), 1021.311, and 1021.410, grant exemptions to the casinos in any State whose regulatory system substantially meets the reporting and recordkeeping requirements of this chapter. (2) In order for a State regulatory system to qualify for an exemption on behalf of its casinos, the State must provide: (i) That the Treasury Department be allowed to evaluate the effectiveness of the State's regulatory system by periodic oversight review of that system; (ii) That the reports required under the State's regulatory system be submitted to the Treasury Department within 15 days of receipt by the State; (iii) That any records required to be maintained by the casinos relevant to any matter under this chapter and to which the State has access or maintains under its regulatory system be made available to the Treasury Department within 30 days of request; (iv) That the Treasury Department be provided with periodic status reports on the State's compliance efforts and findings; (v) That all but minor violations of the State requirements be reported to Treasury within 15 days of discovery; and (vi) That the State will initiate compliance examinations of specific institutions at the request of Treasury within a reasonable time, not to exceed 90 days where appropriate, and will provide reports of these examinations to Treasury within 15 days of completion or periodically during the course of the examination upon the request of the Secretary. If for any reason the State were not able to conduct an investigation within a reasonable time, the State will permit Treasury to conduct the investigation. (3) Revocation of any exemption under this subsection shall be in the sole discretion of the Secretary. § 1010.980 Dollars as including foreign currency. Wherever in this chapter an amount is Stated in dollars, it shall be deemed to mean also the equivalent amount in any foreign currency.

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