31 USC 5318(g)(3): Bank Secrecy Act records

          
Sec. 5318. Compliance, exemptions, and summons authority

    (a) General Powers of Secretary.--The Secretary of the Treasury may 
(except under section 5315 of this title and regulations prescribed 
under section 5315)--
        (1) except as provided in subsection (b)(2), delegate duties and 
    powers under this subchapter to an appropriate supervising agency 
    and the United States Postal Service;
        (2) require a class of domestic financial institutions or 
    nonfinancial trades or businesses to maintain appropriate procedures 
    to ensure compliance with this subchapter and regulations prescribed 
    under this subchapter or to guard against money laundering;
        (3) examine any books, papers, records, or other data of 
    domestic financial institutions or nonfinancial trades or businesses 
    relevant to the recordkeeping or reporting requirements of this 
    subchapter;
        (4) summon a financial institution or nonfinancial trade or 
    business, an officer or employee of a financial institution or 
    nonfinancial trade or business (including a former officer or 
    employee), or any person having possession, custody, or care of the 
    reports and records required under this subchapter, to appear before 
    the Secretary of the Treasury or his delegate at a time and place 
    named in the summons and to produce such books, papers, records, or 
    other data, and to give testimony, under oath, as may be relevant or 
    material to an investigation described in subsection (b);
        (5) exempt from the requirements of this subchapter any class of 
    transactions within any State if the Secretary determines that--
            (A) under the laws of such State, that class of transactions 
        is subject to requirements substantially similar to those 
        imposed under this subchapter; and
            (B) there is adequate provision for the enforcement of such 
        requirements; and

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

    (b) Limitations on Summons Power.--
        (1) Scope of power.--The Secretary of the Treasury may take any 
    action described in paragraph (3) or (4) of subsection (a) only in 
    connection with investigations for the purpose of civil enforcement 
    of violations of this subchapter, section 21 of the Federal Deposit 
    Insurance Act, section 411 \1\ of the National Housing Act, or 
    chapter 2 of Public Law 91-508 (12 U.S.C. 1951 et seq.) or any 
    regulation under any such provision.
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    \1\ See References in Text note below.
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        (2) Authority to issue.--A summons may be issued under 
    subsection (a)(4) only by, or with the approval of, the Secretary of 
    the Treasury or a supervisory level delegate of the Secretary of the 
    Treasury.

    (c) Administrative Aspects of Summons.--
        (1) Production at designated site.--A summons issued pursuant to 
    this section may require that books, papers, records, or other data 
    stored or maintained at any place be produced at any designated 
    location in any State or in any territory or other place subject to 
    the jurisdiction of the United States not more than 500 miles 
    distant from any place where the financial institution or 
    nonfinancial trade or business operates or conducts business in the 
    United States.
        (2) Fees and travel expenses.--Persons summoned under this 
    section shall be paid the same fees and mileage for travel in the 
    United States that are paid witnesses in the courts of the United 
    States.
        (3) No liability for expenses.--The United States shall not be 
    liable for any expense, other than an expense described in paragraph 
    (2), incurred in connection with the production of books, papers, 
    records, or other data under this section.

    (d) Service of Summons.--Service of a summons issued under this 
section may be by registered mail or in such other manner calculated to 
give actual notice as the Secretary may prescribe by regulation.
    (e) Contumacy or Refusal.--
        (1) Referral to attorney general.--In case of contumacy by a 
    person issued a summons under paragraph (3) or (4) of subsection (a) 
    or a refusal by such person to obey such summons, the Secretary of 
    the Treasury shall refer the matter to the Attorney General.
        (2) Jurisdiction of court.--The Attorney General may invoke the 
    aid of any court of the United States within the jurisdiction of 
    which--
            (A) the investigation which gave rise to the summons is 
        being or has been carried on;
            (B) the person summoned is an inhabitant; or
            (C) the person summoned carries on business or may be found,

    to compel compliance with the summons.
        (3) Court order.--The court may issue an order requiring the 
    person summoned to appear before the Secretary or his delegate to 
    produce books, papers, records, and other data, to give testimony as 
    may be necessary to explain how such material was compiled and 
    maintained, and to pay the costs of the proceeding.
        (4) Failure to comply with order.--Any failure to obey the order 
    of the court may be punished by the court as a contempt thereof.
        (5) Service of process.--All process in any case under this 
    subsection may be served in any judicial district in which such 
    person may be found.

    (f) Written and Signed Statement Required.--No person shall qualify 
for an exemption under subsection (a)(5) \2\ unless the relevant 
financial institution or nonfinancial trade or business prepares and 
maintains a statement which--
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    \2\ See References in Text note below.
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        (1) describes in detail the reasons why such person is qualified 
    for such exemption; and
        (2) contains the signature of such person.



    (g) Reporting of Suspicious Transactions.--
        (1) In general.--The Secretary may require any financial 
    institution, and any director, officer, employee, or agent of any 
    financial in
    stitution, to report any suspicious transaction relevant to a 
    possible violation of law or regulation.
        (2) Notification prohibited.--
            (A) In general.--If a financial institution or any director, 
        officer, employee, or agent of any financial institution, 
        voluntarily or pursuant to this section or any other authority, 
        reports a suspicious transaction to a government agency--
                (i) the financial institution, director, officer, 
            employee, or agent may not notify any person involved in the 
            transaction that the transaction has been reported; and
                (ii) no officer or employee of the Federal Government or 
            of any State, local, tribal, or territorial government 
            within the United States, who has any knowledge that such 
            report was made may disclose to any person involved in the 
            transaction that the transaction has been reported, other 
            than as necessary to fulfill the official duties of such 
            officer or employee.

            (B) Disclosures in certain employment references.--
                (i) Rule of construction.--Notwithstanding the 
            application of subparagraph (A) in any other context, 
            subparagraph (A) shall not be construed as prohibiting any 
            financial institution, or any director, officer, employee, 
            or agent of such institution, from including information 
            that was included in a report to which subparagraph (A) 
            applies--
                    (I) in a written employment reference that is 
                provided in accordance with section 18(w) of the Federal 
                Deposit Insurance Act in response to a request from 
                another financial institution; or
                    (II) in a written termination notice or employment 
                reference that is provided in accordance with the rules 
                of a self-regulatory organization registered with the 
                Securities and Exchange Commission or the Commodity 
                Futures Trading Commission,

          except that such written reference or notice may not disclose 
            that such information was also included in any such report, 
            or that such report was made.
                (ii) Information not required.--Clause (i) shall not be 
            construed, by itself, to create any affirmative duty to 
            include any information described in clause (i) in any 
            employment reference or termination notice referred to in 
            clause (i).

        

            
 
          

        (3) Liability for disclosures.--
            (A) In general.--Any financial institution that makes a 
        voluntary disclosure of any possible violation of law or 
        regulation to a government agency or makes a disclosure pursuant 
        to this subsection or any other authority, and any director, 
        officer, employee, or agent of such institution who makes, or 
        requires another to make any such disclosure, shall not be 
        liable to any person under any law or regulation of the United 
        States, any constitution, law, or regulation of any State or 
        political subdivision of any State, or under any contract or 
        other legally enforceable agreement (including any arbitration 
        agreement), for such disclosure or for any failure to provide 
        notice of such disclosure to the person who is the subject of 
        such disclosure or any other person identified in the 
        disclosure.
            (B) Rule of construction.--Subparagraph (A) shall not be 
        construed as creating--
                (i) any inference that the term ``person'', as used in 
            such subparagraph, may be construed more broadly than its 
            ordinary usage so as to include any government or agency of 
            government; or
                (ii) any immunity against, or otherwise affecting, any 
            civil or criminal action brought by any government or agency 
            of government to enforce any constitution, law, or 
            regulation of such government or agency.

        (4) Single designee for reporting suspicious transactions.--
            (A) In general.--In requiring reports under paragraph (1) of 
        suspicious transactions, the Secretary of the Treasury shall 
        designate, to the extent practicable and appropriate, a single 
        officer or agency of the United States to whom such reports 
        shall be made.
            (B) Duty of designee.--The officer or agency of the United 
        States designated by the Secretary of the Treasury pursuant to 
        subparagraph (A) shall refer any report of a suspicious 
        transaction to any appropriate law enforcement, supervisory 
        agency, or United States intelligence agency for use in the 
        conduct of intelligence or counterintelligence activities, 
        including analysis, to protect against international terrorism.
            (C) Coordination with other reporting requirements.--
        Subparagraph (A) shall not be construed as precluding any 
        supervisory agency for any financial institution from requiring 
        the financial institution to submit any information or report to 
        the agency or another agency pursuant to any other applicable 
        provision of law.

    (h) Anti-Money Laundering Programs.--
        (1) In general.--In order to guard against money laundering 
    through financial institutions, each financial institution shall 
    establish anti-money laundering programs, including, at a minimum--
            (A) the development of internal policies, procedures, and 
        controls;
            (B) the designation of a compliance officer;
            (C) an ongoing employee training program; and
            (D) an independent audit function to test programs.

        (2) Regulations.--The Secretary of the Treasury, after 
    consultation with the appropriate Federal functional regulator (as 
    defined in section 509 of the Gramm-Leach-Bliley Act), may prescribe 
    minimum standards for programs established under paragraph (1), and 
    may exempt from the application of those standards any financial 
    institution that is not subject to the provisions of the rules 
    contained in part 103 of title 31, of the Code of
    Federal Regulations, or any successor rule thereto, for so long as 
    such financial institution is not subject to the provisions of such 
    rules.
        (3) Concentration accounts.--The Secretary may prescribe 
    regulations under this subsection that govern maintenance of 
    concentration accounts by financial institutions, in order to ensure 
    that such accounts are not used to prevent association of the 
    identity of an individual customer with the movement of funds of 
    which the customer is the direct or beneficial owner, which 
    regulations shall, at a minimum--
            (A) prohibit financial institutions from allowing clients to 
        direct transactions that move their funds into, out of, or 
        through the concentration accounts of the financial institution;
            (B) prohibit financial institutions and their employees from 
        informing customers of the existence of, or the means of 
        identifying, the concentration accounts of the institution; and
            (C) require each financial institution to establish written 
        procedures governing the documentation of all transactions 
        involving a concentration account, which procedures shall ensure 
        that, any time a transaction involving a concentration account 
        commingles funds belonging to 1 or more customers, the identity 
        of, and specific amount belonging to, each customer is 
        documented.

    (i) Due Diligence for United States Private Banking and 
Correspondent Bank Accounts Involving Foreign Persons.--
        (1) In general.--Each financial institution that establishes, 
    maintains, administers, or manages a private banking account or a 
    correspondent account in the United States for a non-United States 
    person, including a foreign individual visiting the United States, 
    or a representative of a non-United States person shall establish 
    appropriate, specific, and, where necessary, enhanced, due diligence 
    policies, procedures, and controls that are reasonably designed to 
    detect and report instances of money laundering through those 
    accounts.
        (2) Additional standards for certain correspondent accounts.--
            (A) In general.--Subparagraph (B) shall apply if a 
        correspondent account is requested or maintained by, or on 
        behalf of, a foreign bank operating--
                (i) under an offshore banking license; or
                (ii) under a banking license issued by a foreign country 
            that has been designated--
                    (I) as noncooperative with international anti-money 
                laundering principles or procedures by an 
                intergovernmental group or organization of which the 
                United States is a member, with which designation the 
                United States representative to the group or 
                organization concurs; or
                    (II) by the Secretary of the Treasury as warranting 
                special measures due to money laundering concerns.

            (B) Policies, procedures, and controls.--The enhanced due 
        diligence policies, procedures, and controls required under 
        paragraph (1) shall, at a minimum, ensure that the financial 
        institution in the United States takes reasonable steps--
                (i) to ascertain for any such foreign bank, the shares 
            of which are not publicly traded, the identity of each of 
            the owners of the foreign bank, and the nature and extent of 
            the ownership interest of each such owner;
                (ii) to conduct enhanced scrutiny of such account to 
            guard against money laundering and report any suspicious 
            transactions under subsection (g); and
                (iii) to ascertain whether such foreign bank provides 
            correspondent accounts to other foreign banks and, if so, 
            the identity of those foreign banks and related due 
            diligence information, as appropriate under paragraph (1).

        (3) Minimum standards for private banking accounts.--If a 
    private banking account is requested or maintained by, or on behalf 
    of, a non-United States person, then the due diligence policies, 
    procedures, and controls required under paragraph (1) shall, at a 
    minimum, ensure that the financial institution takes reasonable 
    steps--
            (A) to ascertain the identity of the nominal and beneficial 
        owners of, and the source of funds deposited into, such account 
        as needed to guard against money laundering and report any 
        suspicious transactions under subsection (g); and
            (B) to conduct enhanced scrutiny of any such account that is 
        requested or maintained by, or on behalf of, a senior foreign 
        political figure, or any immediate family member or close 
        associate of a senior foreign political figure, that is 
        reasonably designed to detect and report transactions that may 
        involve the proceeds of foreign corruption.

        (4) Definitions.--For purposes of this subsection, the following 
    definitions shall apply:
            (A) Offshore banking license.--The term ``offshore banking 
        license'' means a license to conduct banking activities which, 
        as a condition of the license, prohibits the licensed entity 
        from conducting banking activities with the citizens of, or with 
        the local currency of, the country which issued the license.
            (B) Private banking account.--The term ``private banking 
        account'' means an account (or any combination of accounts) 
        that--
                (i) requires a minimum aggregate deposits of funds or 
            other assets of not less than $1,000,000;
                (ii) is established on behalf of 1 or more individuals 
            who have a direct or beneficial ownership interest in the 
            account; and
                (iii) is assigned to, or is administered or managed by, 
            in whole or in part, an officer, employee, or agent of a 
            financial institution acting as a liaison between the 
            financial institution and the direct or beneficial owner of 
            the account.

    (j) Prohibition on United States Correspondent Accounts With Foreign 
Shell Banks.--
        (1) In general.--A financial institution described in 
    subparagraphs (A) through (G) of section 5312(a)(2) (in this 
    subsection referred to as a ``covered financial institution'') shall 
    not establish, maintain, administer, or manage a correspondent 
    account in the United States for, or on behalf of, a foreign bank 
    that does not have a physical presence in any country.
        (2) Prevention of indirect service to foreign shell banks.--A 
    covered financial institution shall take reasonable steps to ensure 
    that any correspondent account established, maintained, 
    administered, or managed by that covered financial institution in 
    the United States for a foreign bank is not being used by that 
    foreign bank to indirectly provide banking services to another 
    foreign bank that does not have a physical presence in any country. 
    The Secretary of the Treasury shall, by regulation, delineate the 
    reasonable steps necessary to comply with this paragraph.
        (3) Exception.--Paragraphs (1) and (2) do not prohibit a covered 
    financial institution from providing a correspondent account to a 
    foreign bank, if the foreign bank--
            (A) is an affiliate of a depository institution, credit 
        union, or foreign bank that maintains a physical presence in the 
        United States or a foreign country, as applicable; and
            (B) is subject to supervision by a banking authority in the 
        country regulating the affiliated depository institution, credit 
        union, or foreign bank described in subparagraph (A), as 
        applicable.

        (4) Definitions.--For purposes of this subsection--
            (A) the term ``affiliate'' means a foreign bank that is 
        controlled by or is under common control with a depository 
        institution, credit union, or foreign bank; and
            (B) the term ``physical presence'' means a place of business 
        that--
                (i) is maintained by a foreign bank;
                (ii) is located at a fixed address (other than solely an 
            electronic address) in a country in which the foreign bank 
            is authorized to conduct banking activities, at which 
            location the foreign bank--
                    (I) employs 1 or more individuals on a full-time 
                basis; and
                    (II) maintains operating records related to its 
                banking activities; and

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

    (k) Bank Records Related to Anti-Money Laundering Programs.--
        (1) Definitions.--For purposes of this subsection, the following 
    definitions shall apply:
            (A) Appropriate federal banking agency.--The term 
        ``appropriate Federal banking agency'' has the same meaning as 
        in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
        1813).
            (B) Incorporated term.--The term ``correspondent account'' 
        has the same meaning as in section 5318A(e)(1)(B).

        (2) 120-hour rule.--Not later than 120 hours after receiving a 
    request by an appropriate Federal banking agency for information 
    related to anti-money laundering compliance by a covered financial 
    institution or a customer of such institution, a covered financial 
    institution shall provide to the appropriate Federal banking agency, 
    or make available at a location specified by the representative of 
    the appropriate Federal banking agency, information and account 
    documentation for any account opened, maintained, administered or 
    managed in the United States by the covered financial institution.
        (3) Foreign bank records.--
            (A) Summons or subpoena of records.--
                (i) In general.--The Secretary of the Treasury or the 
            Attorney General may issue a summons or subpoena to any 
            foreign bank that maintains a correspondent account in the 
            United States and request records related to such 
            correspondent account, including records maintained outside 
            of the United States relating to the deposit of funds into 
            the foreign bank.
                (ii) Service of summons or subpoena.--A summons or 
            subpoena referred to in clause (i) may be served on the 
            foreign bank in the United States if the foreign bank has a 
            representative in the United States, or in a foreign country 
            pursuant to any mutual legal assistance treaty, multilateral 
            agreement, or other request for international law 
            enforcement assistance.

            (B) Acceptance of service.--
                (i) Maintaining records in the united states.--Any 
            covered financial institution which maintains a 
            correspondent account in the United States for a foreign 
            bank shall maintain records in the United States identifying 
            the owners of such foreign bank and the name and address of 
            a person who resides in the United States and is authorized 
            to accept service of legal process for records regarding the 
            correspondent account.
                (ii) Law enforcement request.--Upon receipt of a written 
            request from a Federal law enforcement officer for 
            information required to be maintained under this paragraph, 
            the covered financial institution shall provide the 
            information to the requesting officer not later than 7 days 
            after receipt of the request.

            (C) Termination of correspondent relationship.--
                (i) Termination upon receipt of notice.--A covered 
            financial institution shall terminate any correspondent 
            relationship with a foreign bank not later than 10 business 
            days after receipt of written notice from the Secretary or 
            the Attorney General (in each case, after consultation with 
            the other) that the foreign bank has failed--
                    (I) to comply with a summons or subpoena issued 
                under subparagraph (A); or
                    (II) to initiate proceedings in a United States 
                court contesting such summons or subpoena.

                (ii) Limitation on liability.--A covered financial 
            institution shall not be liable to
            any person in any court or arbitration proceeding for 
            terminating a correspondent relationship in accordance with 
            this subsection.
                (iii) Failure to terminate relationship.--Failure to 
            terminate a correspondent relationship in accordance with 
            this subsection shall render the covered financial 
            institution liable for a civil penalty of up to $10,000 per 
            day until the correspondent relationship is so terminated.

    (l) Identification and Verification of Accountholders.--
        (1) In general.--Subject to the requirements of this subsection, 
    the Secretary of the Treasury shall prescribe regulations setting 
    forth the minimum standards for financial institutions and their 
    customers regarding the identity of the customer that shall apply in 
    connection with the opening of an account at a financial 
    institution.
        (2) Minimum requirements.--The regulations shall, at a minimum, 
    require financial institutions to implement, and customers (after 
    being given adequate notice) to comply with, reasonable procedures 
    for--
            (A) verifying the identity of any person seeking to open an 
        account to the extent reasonable and practicable;
            (B) maintaining records of the information used to verify a 
        person's identity, including name, address, and other 
        identifying information; and
            (C) consulting lists of known or suspected terrorists or 
        terrorist organizations provided to the financial institution by 
        any government agency to determine whether a person seeking to 
        open an account appears on any such list.

        (3) Factors to be considered.--In prescribing regulations under 
    this subsection, the Secretary shall take into consideration the 
    various types of accounts maintained by various types of financial 
    institutions, the various methods of opening accounts, and the 
    various types of identifying information available.
        (4) Certain financial institutions.--In the case of any 
    financial institution the business of which is engaging in financial 
    activities described in section 4(k) of the Bank Holding Company Act 
    of 1956 (including financial activities subject to the jurisdiction 
    of the Commodity Futures Trading Commission), the regulations 
    prescribed by the Secretary under paragraph (1) shall be prescribed 
    jointly with each Federal functional regulator (as defined in 
    section 509 of the Gramm-Leach-Bliley Act, including the Commodity 
    Futures Trading Commission) appropriate for such financial 
    institution.
        (5) Exemptions.--The Secretary (and, in the case of any 
    financial institution described in paragraph (4), any Federal agency 
    described in such paragraph) may, by regulation or order, exempt any 
    financial institution or type of account from the requirements of 
    any regulation prescribed under this subsection in accordance with 
    such standards and procedures as the Secretary may prescribe.
        (6) Effective date.--Final regulations prescribed under this 
    subsection shall take effect before the end of the 1-year period 
    beginning on the date of enactment of the International Money 
    Laundering Abatement and Financial Anti-Terrorism Act of 2001.

    (m) Applicability of Rules.--Any rules promulgated pursuant to the 
authority contained in section 21 of the Federal Deposit Insurance Act 
(12 U.S.C. 1829b) shall apply, in addition to any other financial 
institution to which such rules apply, to any person that engages as a 
business in the transmission of funds, including any person who engages 
as a business in an informal money transfer system or any network of 
people who engage as a business in facilitating the transfer of money 
domestically or internationally outside of the conventional financial 
institutions system.
    (n) Reporting of Certain Cross-Border Transmittals of Funds.--
        (1) In general.--Subject to paragraphs (3) and (4), the 
    Secretary shall prescribe regulations requiring such financial 
    institutions as the Secretary determines to be appropriate to report 
    to the Financial Crimes Enforcement Network certain cross-border 
    electronic transmittals of funds, if the Secretary determines that 
    reporting of such transmittals is reasonably necessary to conduct 
    the efforts of the Secretary against money laundering and terrorist 
    financing.
        (2) Limitation on reporting requirements.--Information required 
    to be reported by the regulations prescribed under paragraph (1) 
    shall not exceed the information required to be retained by the 
    reporting financial institution pursuant to section 21 of the 
    Federal Deposit Insurance Act and the regulations promulgated 
    thereunder, unless--
            (A) the Board of Governors of the Federal Reserve System and 
        the Secretary jointly determine that a particular item or items 
        of information are not currently required to be retained under 
        such section or such regulations; and
            (B) the Secretary determines, after consultation with the 
        Board of Governors of the Federal Reserve System, that the 
        reporting of such information is reasonably necessary to conduct 
        the efforts of the Secretary to identify cross-border money 
        laundering and terrorist financing.

        (3) Form and manner of reports.--In prescribing the regulations 
    required under paragraph (1), the Secretary shall, subject to 
    paragraph (2), determine the appropriate form, manner, content, and 
    frequency of filing of the required reports.
        (4) Feasibility report.--
            (A) In general.--Before prescribing the regulations required 
        under paragraph (1), and as soon as is practicable after the 
        date of enactment of the Intelligence Reform and Terrorism 
        Prevention Act of 2004, the Secretary shall submit a report to 
        the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on Financial Services of the House of 
        Representatives that--
                (i) identifies the information in cross-border 
            electronic transmittals of funds
            that may be found in particular cases to be reasonably 
            necessary to conduct the efforts of the Secretary to 
            identify money laundering and terrorist financing, and 
            outlines the criteria to be used by the Secretary to select 
            the situations in which reporting under this subsection may 
            be required;
                (ii) outlines the appropriate form, manner, content, and 
            frequency of filing of the reports that may be required 
            under such regulations;
                (iii) identifies the technology necessary for the 
            Financial Crimes Enforcement Network to receive, keep, 
            exploit, protect the security of, and disseminate 
            information from reports of cross-border electronic 
            transmittals of funds to law enforcement and other entities 
            engaged in efforts against money laundering and terrorist 
            financing; and
                (iv) discusses the information security protections 
            required by the exercise of the Secretary's authority under 
            this subsection.

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

        (5) Regulations.--
            (A) In general.--Subject to subparagraph (B), the 
        regulations required by paragraph (1) shall be prescribed in 
        final form by the Secretary, in consultation with the Board of 
        Governors of the Federal Reserve System, before the end of the 
        3-year period beginning on the date of enactment of the National 
        Intelligence Reform Act of 2004.
            (B) Technological feasibility.--No regulations shall be 
        prescribed under this subsection before the Secretary certifies 
        to the Congress that the Financial Crimes Enforcement Network 
        has the technological systems in place to effectively and 
        efficiently receive, keep, exploit, protect the security of, and 
        disseminate information from reports of cross-border electronic 
        transmittals of funds to law enforcement and other entities 
        engaged in efforts against money laundering and terrorist 
        financing.

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 999; Pub. L. 99-570, title I, 
Sec. 1356(a), (b), (c)(2), Oct. 27, 1986, 100 Stat. 3207-23, 3207-24; 
Pub. L. 100-690, title VI, Secs. 6185(e), 6469(c), Nov. 18, 1988, 
102 Stat. 4357, 4377; Pub. L. 102-550, title XV, Secs. 1504(d)(1), 
1513, 1517(b), Oct. 28, 1992, 106 Stat. 4055, 4058, 4059; Pub. L. 103-
322, title XXXIII, Sec. 330017(b)(1), Sept. 13, 1994, 108 Stat. 2149; 
Pub. L. 103-325, title IV, Secs. 403(a), 410, 413(b)(1), Sept. 23, 
1994, 108 Stat. 2245, 2252, 2254; Pub. L. 107-56, title III, 
Secs. 312(a), 313(a), 319(b), 325, 326(a), 351, 352(a), 358(b), 
359(c), 365(c)(2)(B), Oct. 26, 2001, 115 Stat. 304, 306, 312, 317, 320, 
322, 326, 328, 335; Pub. L. 108-159, title VIII, Sec. 811(g), Dec. 4, 
2003, 117 Stat. 2012; Pub. L. 108-458, title VI, Secs. 6202(h), 
6203(c), (d), 6302, Dec. 17, 2004, 118 Stat. 3746-3748; Pub. L. 109-177, 
title IV, Sec. 407, Mar. 9, 2006, 120 Stat. 245.)

                                          Historical and Revision Notes
----------------------------------------------------------------------------------------------------------------
           Revised Section                   Source (U.S. Code)                Source (Statutes at Large)
----------------------------------------------------------------------------------------------------------------
5318.................................  31:1054(a), (b)(1st sentence).  Oct. 26, 1970, Pub. L. 91-508, Secs.
                                                                        205(a), (b)(1st sentence), 206, 84 Stat.
                                                                        1120.
                                       31:1055.
----------------------------------------------------------------------------------------------------------------

    In the section, before clause (1), the words ``have the 
responsibility to assure compliance with the requirements of this 
chapter'' in 31:1054(a) are omitted as unnecessary because of section 
321 of the revised title. The words ``(except under section 5315 of this 
title and regulations prescribed under section 5315)'' are added because 
31:1141-1143 was not enacted as a part of the Currency and Foreign 
Transactions Reporting Act that is restated in this subchapter. In 
clause (1), the words ``duties and powers'' are substituted for 
``responsibilities'' for consistency in the revised title and with other 
titles of the United States Code. The words ``bank supervisory agency, 
or other'' are omitted as surplus. In clause (2), the words ``by 
regulation'' and ``as he may deem'' are omitted as surplus. The words 
``and regulations prescribed under this subchapter'' are added because 
of the restatement. In clause (3), the word ``prescribe'' is substituted 
for ``make'' in 31:1055 for consistency in the revised title and with 
other titles of the Code. The words ``otherwise imposed'', 31:1055(1st 
sentence), and the words ``in his discretion'' are omitted as surplus.

                       References in Text

    Section 21 of the Federal Deposit Insurance Act, referred to in 
subsecs. (b)(1), (m), and (n)(2), is classified to section 1829b of 
Title 12, Banks and Banking.
    Section 411 of the National Housing Act, referred to in subsec. 
(b)(1), which was classified to section 1730d of Title 12, was repealed 
by Pub. L. 101-73, title IV, Sec. 407, Aug. 9, 1989, 103 Stat. 363.
    Chapter 2 of Public Law 91-508 (12 U.S.C. 1951 et seq.), referred to 
in subsec. (b)(1), probably means chapter 2 (Secs. 121 to 129) of 
title I of Pub. L. 91-508, Oct. 26, 1970, 84 Stat. 1116, which is 
classified generally to chapter 21 (Sec. 1951 et seq.) of Title 12. For 
complete classification of chapter 2 to the Code, see Tables.
    Subsection (a)(5), referred to in subsec. (f), was redesignated 
subsection (a)(6) by section 410(a)(2) of Pub. L. 103-325.
    Section 18(w) of the Federal Deposit Insurance Act, referred to in 
subsec. (g)(2)(B)(i)(I), is classified to section 1828(w) of Title 12, 
Banks and Banking.
    Section 509 of the Gramm-Leach-Bliley Act, referred to in subsecs. 
(h)(2) and (l)(4), is classified to section 6809 of Title 15, Commerce 
and Trade.
    Section 4(k) of the Bank Holding Company Act of 1956, referred to in 
subsec. (l)(4), is classified to section 1843(k) of Title 12, Banks and 
Banking.
    The date of enactment of the International Money Laundering 
Abatement and Financial Anti-Terrorism Act of 2001, referred to in 
subsec. (l)(6), is the date of enactment of title III of Pub. L. 107-56, 
which was approved Oct. 26, 2001.
    The date of enactment of the Intelligence Reform and Terrorism 
Prevention Act of 2004, referred to in subsec. (n)(4)(A), is the date of 
enactment of Pub. L. 108-458, which was approved Dec. 17, 2004.
    The date of enactment of the National Intelligence Reform Act of 
2004, referred to in subsec. (n)(5)(A), probably means the date of 
enactment of the National Security Intelligence Reform Act of 2004, 
title I of Pub. L. 108-458, which was approved Dec. 17, 2004.
    For provisions relating to the Bank Secrecy Act Advisory Group, 
referred to in subsec. (n)(4)(B), see section 1564 of Pub. L. 102-550, 
which is set out as a note under section 5311 of this title.
                               Amendments

    2006--Subsec. (n)(4)(A). Pub. L. 109-177 substituted ``Intelligence 
Reform and Terrorism Prevention Act of
2004'' for ``National Intelligence Reform Act of 2004'' in introductory 
provisions.
    2004--Subsec. (h)(3). Pub. L. 108-458, Sec. 6202(h), made technical 
correction to directory language of Pub. L. 107-56, Sec. 325. See 2001 
Amendment note below.
    Subsec. (i)(3)(B). Pub. L. 108-458, Sec. 6203(c)(1), inserted comma 
before ``that is reasonably designed''.
    Subsec. (i)(4). Pub. L. 108-458, Sec. 6203(c)(2), substituted 
``Definitions'' for ``Definition'' in heading.
    Subsec. (k)(1)(B). Pub. L. 108-458, Sec. 6203(d), substituted 
``section 5318A(e)(1)(B)'' for ``section 5318A(f)(1)(B)''.
    Subsec. (n). Pub. L. 108-458, Sec. 6302, added subsec. (n).
    2003--Subsecs. (l), (m). Pub. L. 108-159 redesignated subsec. (l), 
relating to applicability of rules, as (m).
    2001--Subsec. (a)(2), (3). Pub. L. 107-56, Sec. 365(c)(2)(B)(ii), 
inserted ``or nonfinancial trades or businesses'' after ``financial 
institutions''.
    Subsec. (a)(4). Pub. L. 107-56, Sec. 365(c)(2)(B)(i), inserted ``or 
nonfinancial trade or business'' after ``financial institution'' in two 
places.
    Subsec. (c)(1). Pub. L. 107-56, Sec. 365(c)(2)(B)(i), inserted ``or 
nonfinancial trade or business'' after ``financial institution''.
    Subsec. (f). Pub. L. 107-56, Sec. 365(c)(2)(B)(i), inserted ``or 
nonfinancial trade or business'' after ``financial institution'' in 
introductory provisions.
    Subsec. (g)(2). Pub. L. 107-56, Sec. 351(b), reenacted heading 
without change and amended text generally. Prior to amendment, text read 
as follows: ``A financial institution, and a director, officer, 
employee, or agent of any financial institution, who voluntarily reports 
a suspicious transaction, or that reports a suspicious transaction 
pursuant to this section or any other authority, may not notify any 
person involved in the transaction that the transaction has been 
reported.''
    Subsec. (g)(3). Pub. L. 107-56, Sec. 351(a), reenacted heading 
without change and amended text generally. Prior to amendment, text read 
as follows: ``Any financial institution that makes a disclosure of any 
possible violation of law or regulation or a disclosure pursuant to this 
subsection or any other authority, and any director, officer, employee, 
or agent of such institution, shall not be liable to any person under 
any law or regulation of the United States or any constitution, law, or 
regulation of any State or political subdivision thereof, for such 
disclosure or for any failure to notify the person involved in the 
transaction or any other person of such disclosure.''
    Subsec. (g)(4)(B). Pub. L. 107-56, Sec. 358(b), substituted ``, 
supervisory agency, or United States intelligence agency for use in the 
conduct of intelligence or counterintelligence activities, including 
analysis, to protect against international terrorism'' for ``or 
supervisory agency''.
    Subsec. (h). Pub. L. 107-56, Sec. 352(a), reenacted heading without 
change and amended text of subsec. (h) generally. Prior to amendment, 
text read as follows:
    ``(1) In general.--In order to guard against money laundering 
through financial institutions, the Secretary may require financial 
institutions to carry out anti-money laundering programs, including at a 
minimum
        ``(A) the development of internal policies, procedures, and 
    controls,
        ``(B) the designation of a compliance officer,
        ``(C) an ongoing employee training program, and
        ``(D) an independent audit function to test programs.
    ``(2) Regulations.--The Secretary may prescribe minimum standards 
for programs established under paragraph (1).''
    Subsec. (h)(3). Pub. L. 107-56, Sec. 325, as amended by Pub. L. 108-
458, Sec. 6202(h), added par. (3).
    Subsec. (i). Pub. L. 107-56, Sec. 312(a), added subsec. (i).
    Subsec. (j). Pub. L. 107-56, Sec. 313(a), added subsec. (j).
    Subsec. (k). Pub. L. 107-56, Sec. 319(b), added subsec. (k).
    Subsec. (l). Pub. L. 107-56, Sec. 359(c), added subsec. (l) relating 
to applicability of rules.
    Pub. L. 107-56, Sec. 326(a), added subsec. (l) relating to 
identification and verification of accountholders.
    1994--Subsec. (a)(5). Pub. L. 103-325, Sec. 410(a), added par. (5). 
Former par. (5) redesignated (6).
    Subsec. (a)(6). Pub. L. 103-325, Sec. 410(b), inserted ``under this 
paragraph or paragraph (5)'' after ``revoke an exemption'' in 
penultimate sentence.
    Pub. L. 103-325, Sec. 410(a)(2), redesignated par. (5) as (6).
    Subsec. (g). Pub. L. 103-322, Sec. 330017(b)(1), and Pub. L. 103-
325, Sec. 413(b)(1), amended directory language of Pub. L. 102-550, 
Sec. 1517(b), identically. See 1992 Amendment note below.
    Subsec. (g)(4). Pub. L. 103-325, Sec. 403(a), added par. (4).
    Subsec. (h). Pub. L. 103-322, Sec. 330017(b)(1), and Pub. L. 103-
325, Sec. 413(b)(1), amended directory language of Pub. L. 102-550, 
Sec. 1517(b), identically. See 1992 Amendment note below.
    1992--Subsec. (a)(1). Pub. L. 102-550, Sec. 1504(d)(1), substituted 
``supervising agency and the United States Postal Service'' for 
``supervising agency or the Postal Inspection Service and the Postal 
Service''.
    Subsec. (a)(2). Pub. L. 102-550, Sec. 1513, inserted before 
semicolon ``or to guard against money laundering''.
    Subsecs. (g), (h). Pub. L. 102-550, Sec. 1517(b), as amended by Pub. 
L. 103-322, Sec. 330017(b)(1), and Pub. L. 103-325, Sec. 413(b)(1), 
added subsecs. (g) and (h).
    1988--Subsec. (a)(1). Pub. L. 100-690, Sec. 6469(c), inserted ``or 
the Postal Inspection Service'' after ``appropriate supervising 
agency''.
    Pub. L. 100-690, Sec. 6185(e), inserted ``and the Postal Service'' 
after ``appropriate supervising agency''.
    1986--Pub. L. 99-570, Sec. 1356(c)(2), substituted ``Compliance, 
exemptions, and summons authority'' for ``Compliance and exemptions'' in 
section catchline.
    Subsec. (a). Pub. L. 99-570, Sec. 1356(a)(1)-(5), designated 
existing provisions as subsec. (a), added subsec. heading, inserted 
``except as provided in subsection (b)(2),'' in par. (1), added pars. 
(3) and (4), and redesignated former par. (3) as (5).
    Subsecs. (b) to (e). Pub. L. 99-570, Sec. 1356(a)(6), added subsecs. 
(b) to (e).
    Subsec. (f). Pub. L. 99-570, Sec. 1356(b), added subsec. (f).
                    Effective Date of 2004 Amendment

    Amendment by sections 6202(h) and 6203(c), (d) of Pub. L. 108-458 
effective as if included in Pub. L. 107-56, as of the date of enactment 
of such Act, and no amendment made by Pub. L. 107-56 that is 
inconsistent with such amendment to be deemed to have taken effect, see 
section 6205 of Pub. L. 108-458, set out as a note under section 1828 of 
Title 12, Banks and Banking.
                    Effective Date of 2003 Amendment

    Amendment by Pub. L. 108-159 subject to joint regulations 
establishing effective dates as prescribed by Federal Reserve Board and 
Federal Trade Commission, except as otherwise provided, see section 3 of 
Pub. L. 108-159, set out as a note under section 1681 of Title 15, 
Commerce and Trade.
                    Effective Date of 2001 Amendment

    Pub. L. 107-56, title III, Sec. 312(b)(2), Oct. 26, 2001, 115 Stat. 
306, provided that: ``Section 5318(i) of title 31, United States Code, 
as added by this section, shall take effect 270 days after the date of 
enactment of this Act [Oct. 26, 2001], whether or not final regulations 
are issued under paragraph (1) [set out below], and the failure to issue 
such regulations shall in no way affect the enforceability of this 
section [amending this section and enacting provisions set out as a note 
below] or the amendments made by this section. Section 5318(i) of title 
31, United States Code, as added by this section, shall apply with 
respect to accounts covered by that section 5318(i), that are opened 
before, on, or after the date of enactment of this Act.''
    Pub. L. 107-56, title III, Sec. 313(b), Oct. 26, 2001, 115 Stat. 
307, provided that: ``The amendment made by subsection (a) [amending 
this section] shall take effect at the end of the 60-day period 
beginning on the date of enactment of this Act [Oct. 26, 2001].''
    Pub. L. 107-56, title III, Sec. 352(b), Oct. 26, 2001, 115 Stat. 
322, provided that: ``The amendment made by sub
section (a) [amending this section] shall take effect at the end of the 
180-day period beginning on the date of enactment of this Act [Oct. 26, 
2001].''
    Amendment by section 358(b) of Pub. L. 107-56 applicable with 
respect to reports filed or records maintained on, before, or after Oct. 
26, 2001, see section 358(h) of Pub. L. 107-56, set out as a note under 
section 1829b of Title 12, Banks and Banking.
                    Effective Date of 1994 Amendment

    Section 330017(b)(1) of Pub. L. 103-322 and section 413(b)(1) of 
Pub. L. 103-325 provided that the identical amendments made by those 
sections are effective Oct. 28, 1992.
                               Regulations

    Pub. L. 107-56, title III, Sec. 312(b)(1), Oct. 26, 2001, 115 Stat. 
305, provided that: ``Not later than 180 days after the date of 
enactment of this Act [Oct. 26, 2001], the Secretary [of the Treasury], 
in consultation with the appropriate Federal functional regulators (as 
defined in section 509 of the Gramm-Leach-Bliley Act [15 U.S.C. 6809]) 
of the affected financial institutions, shall further delineate, by 
regulation, the due diligence policies, procedures, and controls 
required under section 5318(i)(1) of title 31, United States Code, as 
added by this section.''
    Pub. L. 107-56, title III, Sec. 352(c), Oct. 26, 2001, 115 Stat. 
322, provided that: ``Before the end of the 180-day period beginning on 
the date of enactment of this Act [Oct. 26, 2001], the Secretary [of the 
Treasury] shall prescribe regulations that consider the extent to which 
the requirements imposed under this section [amending this section and 
enacting provisions set out as a note above] are commensurate with the 
size, location, and activities of the financial institutions to which 
such regulations apply.''
                              Grace Period

    Pub. L. 107-56, title III, Sec. 319(c), Oct. 26, 2001, 115 Stat. 
314, provided that: ``Financial institutions shall have 60 days from the 
date of enactment of this Act [Oct. 26, 2001] to comply with the 
provisions of section 5318(k) of title 31, United States Code, as added 
by this section.''
  ``Federal Functional Regulator'' Includes Commodity Futures Trading 
                               Commission

    Pub. L. 107-56, title III, Sec. 321(c), Oct. 26, 2001, 115 Stat. 
315, provided that: ``For purposes of this Act [probably should be 
``title'', see Short Title of 2001 Amendment note set out under section 
5301 of this title] and any amendment made by this Act to any other 
provision of law, the term `Federal functional regulator' includes the 
Commodity Futures Trading Commission.''
 Reporting of Suspicious Activities by Securities Brokers and Dealers; 
                        Investment Company Study

    Pub. L. 107-56, title III, Sec. 356(a), (b), Oct. 26, 2001, 115 
Stat. 324, provided that:
    ``(a) Deadline for Suspicious Activity Reporting Requirements for 
Registered Brokers and Dealers.--The Secretary [of the Treasury], after 
consultation with the Securities and Exchange Commission and the Board 
of Governors of the Federal Reserve System, shall publish proposed 
regulations in the Federal Register before January 1, 2002, requiring 
brokers and dealers registered with the Securities and Exchange 
Commission under the Securities Exchange Act of 1934 [15 U.S.C. 78a et 
seq.] to submit suspicious activity reports under section 5318(g) of 
title 31, United States Code. Such regulations shall be published in 
final form not later than July 1, 2002.
    ``(b) Suspicious Activity Reporting Requirements For Futures 
Commission Merchants, Commodity Trading Advisors, and Commodity Pool 
Operators.--The Secretary, in consultation with the Commodity Futures 
Trading Commission, may prescribe regulations requiring futures 
commission merchants, commodity trading advisors, and commodity pool 
operators registered under the Commodity Exchange Act [7 U.S.C. 1 et 
seq.] to submit suspicious activity reports under section 5318(g) of 
title 31, United States Code.''
                                 Reports

    Section 403(b) of Pub. L. 103-325 provided that:
    ``(1) Reports required.--The Secretary of the Treasury shall submit 
an annual report to the Congress at the times required under paragraph 
(2) on the number of suspicious transactions reported to the officer or 
agency designated under section 5318(g)(4)(A) of title 31, United States 
Code, during the period covered by the report and the disposition of 
such reports.
    ``(2) Time for submitting reports.--The 1st report required under 
paragraph (1) shall be filed before the end of the 1-year period 
beginning on the date of enactment of the Money Laundering Suppression 
Act of 1994 [Sept. 23, 1994] and each subsequent report shall be filed 
within 90 days after the end of each of the 5 calendar years which begin 
after such date of enactment.''
              Designation Required To Be Made Expeditiously

    Section 403(c) of Pub. L. 103-325 provided that: ``The initial 
designation of an officer or agency of the United States pursuant to the 
amendment made by subsection (a) [amending this section] shall be made 
before the end of the 180-day period beginning on the date of enactment 
of this Act [Sept. 23, 1994].''
        Improvement of Identification of Money Laundering Schemes

    Section 404 of Pub. L. 103-325 provided that:
    ``(a) Enhanced Training, Examinations, and Referrals by Banking 
Agencies.--Before the end of the 6-month period beginning on the date of 
enactment of this Act [Sept. 23, 1994], each appropriate Federal banking 
agency shall, in consultation with the Secretary of the Treasury and 
other appropriate law enforcement agencies--
        ``(1) review and enhance training and examination procedures to 
    improve the identification of money laundering schemes involving 
    depository institutions; and
        ``(2) review and enhance procedures for referring cases to any 
    appropriate law enforcement agency.
    ``(b) Improved Reporting of Criminal Schemes by Law Enforcement 
Agencies.--The Secretary of the Treasury and each appropriate law 
enforcement agency shall provide, on a regular basis, information 
regarding money laundering schemes and activities involving depository 
institutions to each appropriate Federal banking agency in order to 
enhance each agency's ability to examine for and identify money 
laundering activity.
    ``(c) Report to Congress.--The Financial Institutions Examination 
Council shall submit a report on the progress made in carrying out 
subsection (a) and the usefulness of information received pursuant to 
subsection (b) to the Congress by the end of the 1-year period beginning 
on the date of enactment of this Act.
    ``(d) Definition.--For purposes of this section, the term 
`appropriate Federal banking agency' has the same meaning as in section 
3 of the Federal Deposit Insurance Act [12 U.S.C. 1813].''