31 USC 5311-5331: Records and reports on monetary instruments transactions
About This Project
This project uses data compiled by the Sunshine in Government initiative, a coalition of journalism and transparency groups. SGI compiled data from federal agency annual FOIA reports to track how often b(3) exemptions were used. SGI also standardized the exemptions since some agencies used slightly different citations of the same laws. In some cases, agencies listed general laws without specifying a section under which information was withheld. This project does not include information from agencies that use no b(3) exemptions in 2008 or 2009. ProPublica compiled information about FOIA denials.
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TITLE 31--MONEY AND FINANCE
SUBTITLE IV--MONEY
CHAPTER 53--MONETARY TRANSACTIONS
SUBCHAPTER II--RECORDS AND REPORTS ON MONETARY INSTRUMENTS TRANSACTIONS
Sec. 5311. Declaration of purpose
It is the purpose of this subchapter (except section 5315) to
require certain reports or records where they have a high degree of
usefulness in criminal, tax, or regulatory investigations or
proceedings, or in the conduct of intelligence or counterintelligence
activities, including analysis, to protect against international
terrorism.
(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 995; Pub. L. 107-56, title
III, Sec. 358(a), Oct. 26, 2001, 115 Stat. 326.)
Historical and Revision Notes
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Revised Section Source (U.S. Code) Source (Statutes at Large)
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5311................................. 31:1051. Oct. 26, 1970, Pub. L. 91-508, Sec. 202,
84 Stat. 1118.
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Amendments
2001--Pub. L. 107-56 inserted ``, or in the conduct of intelligence
or counterintelligence activities, including analysis, to protect
against international terrorism'' before period at end.
Effective Date of 2001 Amendment
Amendment by Pub. L. 107-56 applicable with respect to reports filed
or records maintained on, before, or after Oct. 26, 2001, see section
358(h) of Pub. L. 107-56, set out as a note under section 1829b of Title
12, Banks and Banking.
Short Title
This subchapter and chapter 21 (Sec. 1951 et seq.) of Title 12,
Banks and Banking, are each popularly known as the ``Bank Secrecy Act''.
See Short Title note set out under section 1951 of Title 12.
Improvement of International Standards and Cooperation To Fight
Terrorist Financing
Pub. L. 108-458, title VII, Secs. 7701, 7702, 7704, Dec. 17,
2004, 118 Stat. 3858-3860, provided that:
``SEC. 7701. IMPROVING INTERNATIONAL STANDARDS AND COOPERATION TO FIGHT
TERRORIST FINANCING.
``(a) Findings.--Congress makes the following findings:
``(1) The global war on terrorism and cutting off terrorist
financing is a policy priority for the United States and its
partners, working bilaterally and multilaterally through the United
Nations, the United Nations Security Council and its committees,
such as the 1267 and 1373 Committees, the Financial Action Task
Force (FATF), and various international financial institutions,
including the International Monetary Fund (IMF), the International
Bank for Reconstruction and Development (IBRD), and the regional
multilateral development banks, and other multilateral fora.
``(2) The international financial community has become engaged
in the global fight against terrorist financing. The Financial
Action Task Force has focused on the new threat posed by terrorist
financing to the international financial system, resulting in the
establishment of the FATF's Eight Special Recommendations on
Terrorist Financing as the international standard on combating
terrorist financing. The Group of Seven and the Group of Twenty
Finance Ministers are developing action plans to curb the financing
of terror. In addition, other economic and regional fora, such as
the Asia-Pacific Economic Cooperation (APEC) Forum, and the Western
Hemisphere Financial Ministers, have been used to marshal political
will and actions in support of combating the financing of terrorism
(CFT) standards.
``(3) FATF's Forty Recommendations on Money Laundering and the
Eight Special Recommendations on Terrorist Financing are the
recognized global standards for fighting money laundering and
terrorist financing. The FATF has engaged in an assessment process
for jurisdictions based on their compliance with these standards.
``(4) In March 2004, the IMF and IBRD Boards agreed to make
permanent a pilot program of collaboration with the FATF to assess
global compliance with the FATF Forty Recommendations on Money
Laundering and the Eight Special Recommendations on Terrorist
Financing. As a result, anti-money laundering (AML) and combating
the financing of terrorism (CFT) assessments are now a regular part
of their Financial Sector Assessment Program (FSAP) and Offshore
Financial Center assessments, which provide for a comprehensive
analysis of the strength of a jurisdiction's financial system. These
reviews assess potential systemic vulnerabilities, consider sectoral
development needs and priorities, and review the state of
implementation of and compliance with key financial codes and
regulatory standards, among them the AML and CFT standards.
``(5) To date, 70 FSAPs have been conducted, with over 24 of
those incorporating AML and CFT assessments. The international
financial institutions (IFIs), the FATF, and the FATF-style regional
bodies together are expected to assess AML and CFT regimes in up to
40 countries or jurisdictions per year. This will help countries and
jurisdictions identify deficiencies in their AML and CFT regimes and
help focus technical assistance efforts.
``(6) Technical assistance programs from the United States and
other nations, coordinated with the Department of State and other
departments and agencies, are playing an important role in helping
countries and jurisdictions address shortcomings in their AML and
CFT regimes and bringing their regimes into conformity with
international standards. Training is coordinated within the United
States Government, which leverages multilateral organizations and
bodies and international financial institutions to internationalize
the conveyance of technical assistance.
``(7) In fulfilling its duties in advancing incorporation of AML
and CFT standards into the IFIs as part of the IFIs' work on
protecting the integrity of the international monetary system, the
Department of the Treasury, under the guidance of the Secretary of
the Treasury, has effectively brought together all of the key United
States Government agencies. In particular, United States Government
agencies continue to work together to foster broad support for this
im
portant undertaking in various multilateral fora, and United States
Government agencies recognize the need for close coordination and
communication within our own Government.
``(b) Sense of Congress Regarding Success in Multilateral
Organizations.--It is the sense of Congress that the Secretary of the
Treasury should continue to promote the dissemination of international
AML and CFT standards, and to press for full implementation of the FATF
40 + 8 Recommendations by all countries in order to curb financial risks
and hinder terrorist financing around the globe. The efforts of the
Secretary in this regard should include, where necessary or appropriate,
multilateral action against countries whose counter-money laundering
regimes and efforts against the financing of terrorism fall below
recognized international standards.
``SEC. 7702. DEFINITIONS.
``In this subtitle [subtitle G (Secs. 7701-7704) of title VII of
Pub. L. 108-458, amending sections 262o-2 and 262r-4 of Title 22,
Foreign Relations and Intercourse]--
``(1) the term `international financial institutions' has the
same meaning as in section 1701(c)(2) of the International Financial
Institutions Act [22 U.S.C. 262r(c)(2)];
``(2) the term `Financial Action Task Force' means the
international policy-making and standard-setting body dedicated to
combating money laundering and terrorist financing that was created
by the Group of Seven in 1989; and
``(3) the terms `Interagency Paper on Sound Practices to
Strengthen the Resilience of the U.S. Financial System' and
`Interagency Paper' mean the interagency paper prepared by the Board
of Governors of the Federal Reserve System, the Comptroller of the
Currency, and the Securities and Exchange Commission that was
announced in the Federal Register on April 8, 2003.
``SEC. 7704. COORDINATION OF UNITED STATES GOVERNMENT EFFORTS.
``The Secretary of the Treasury, or the designee of the Secretary,
as the lead United States Government official to the Financial Action
Task Force (FATF), shall continue to convene the interagency United
States Government FATF working group. This group, which includes
representatives from all relevant Federal agencies, shall meet at least
once a year to advise the Secretary on policies to be pursued by the
United States regarding the development of common international AML and
CFT standards, to assess the adequacy and implementation of such
standards, and to recommend to the Secretary improved or new standards,
as necessary.''
International Money Laundering Abatement and Financial Anti-Terrorism
Act of 2001; Findings and Purposes
Pub. L. 107-56, title III, Sec. 302, Oct. 26, 2001, 115 Stat. 296,
as amended by Pub. L. 108-458, title VI, Sec. 6202(c), Dec. 17, 2004,
118 Stat. 3745, provided that:
``(a) Findings.--The Congress finds that--
``(1) money laundering, estimated by the International Monetary
Fund to amount to between 2 and 5 percent of global gross domestic
product, which is at least $600,000,000,000 annually, provides the
financial fuel that permits transnational criminal enterprises to
conduct and expand their operations to the detriment of the safety
and security of American citizens;
``(2) money laundering, and the defects in financial
transparency on which money launderers rely, are critical to the
financing of global terrorism and the provision of funds for
terrorist attacks;
``(3) money launderers subvert legitimate financial mechanisms
and banking relationships by using them as protective covering for
the movement of criminal proceeds and the financing of crime and
terrorism, and, by so doing, can threaten the safety of United
States citizens and undermine the integrity of United States
financial institutions and of the global financial and trading
systems upon which prosperity and growth depend;
``(4) certain jurisdictions outside of the United States that
offer `offshore' banking and related facilities designed to provide
anonymity, coupled with weak financial supervisory and enforcement
regimes, provide essential tools to disguise ownership and movement
of criminal funds derived from, or used to commit, offenses ranging
from narcotics trafficking, terrorism, arms smuggling, and
trafficking in human beings, to financial frauds that prey on law-
abiding citizens;
``(5) transactions involving such offshore jurisdictions make it
difficult for law enforcement officials and regulators to follow the
trail of money earned by criminals, organized international criminal
enterprises, and global terrorist organizations;
``(6) correspondent banking facilities are one of the banking
mechanisms susceptible in some circumstances to manipulation by
foreign banks to permit the laundering of funds by hiding the
identity of real parties in interest to financial transactions;
``(7) private banking services can be susceptible to
manipulation by money launderers, for example corrupt foreign
government officials, particularly if those services include the
creation of offshore accounts and facilities for large personal
funds transfers to channel funds into accounts around the globe;
``(8) United States anti-money laundering efforts are impeded by
outmoded and inadequate statutory provisions that make
investigations, prosecutions, and forfeitures more difficult,
particularly in cases in which money laundering involves foreign
persons, foreign banks, or foreign countries;
``(9) the ability to mount effective counter-measures to
international money launderers requires national, as well as
bilateral and multilateral action, using tools specially designed
for that effort; and
``(10) the Basle Committee on Banking Regulation and Supervisory
Practices and the Financial Action Task Force on Money Laundering,
of both of which the United States is a member, have each adopted
international anti-money laundering principles and recommendations.
``(b) Purposes.--The purposes of this title [see Short Title of 2001
Amendment note set out under section 5301 of this title] are--
``(1) to increase the strength of United States measures to
prevent, detect, and prosecute international money laundering and
the financing of terrorism;
``(2) to ensure that--
``(A) banking transactions and financial relationships and
the conduct of such transactions and relationships, do not
contravene the purposes of subchapter II of chapter 53 of title
31, United States Code, section 21 of the Federal Deposit
Insurance Act [12 U.S.C. 1829b], or chapter 2 of title I of
Public Law 91-508 (84 Stat. 1116) [12 U.S.C. 1951 et seq.], or
facilitate the evasion of any such provision; and
``(B) the purposes of such provisions of law continue to be
fulfilled, and such provisions of law are effectively and
efficiently administered;
``(3) to strengthen the provisions put into place by the Money
Laundering Control Act of 1986 (18 U.S.C. 981 note) [see Short Title
of 1986 Amendment note set out under section 981 of Title 18, Crimes
and Criminal Procedure], especially with respect to crimes by non-
United States nationals and foreign financial institutions;
``(4) to provide a clear national mandate for subjecting to
special scrutiny those foreign jurisdictions, financial institutions
operating outside of the United States, and classes of international
transactions or types of accounts that pose particular, identifiable
opportunities for criminal abuse;
``(5) to provide the Secretary of the Treasury (in this title
referred to as the `Secretary') with broad discretion, subject to
the safeguards provided by the
Administrative Procedure Act under title 5, United States Code [5
U.S.C. 551 et seq., 701 et seq.], to take measures tailored to the
particular money laundering problems presented by specific foreign
jurisdictions, financial institutions operating outside of the
United States, and classes of international transactions or types of
accounts;
``(6) to ensure that the employment of such measures by the
Secretary permits appropriate opportunity for comment by affected
financial institutions;
``(7) to provide guidance to domestic financial institutions on
particular foreign jurisdictions, financial institutions operating
outside of the United States, and classes of international
transactions or types of accounts that are of primary money
laundering concern to the United States Government;
``(8) to ensure that the forfeiture of any assets in connection
with the anti-terrorist efforts of the United States permits for
adequate challenge consistent with providing due process rights;
``(9) to clarify the terms of the safe harbor from civil
liability for filing suspicious activity reports;
``(10) to strengthen the authority of the Secretary to issue and
administer geographic targeting orders, and to clarify that
violations of such orders or any other requirement imposed under the
authority contained in chapter 2 of title I of Public Law 91-508 [12
U.S.C. 1951 et seq.] and subchapter II of chapter 53 of title 31,
United States Code, may result in criminal and civil penalties;
``(11) to ensure that all appropriate elements of the financial
services industry are subject to appropriate requirements to report
potential money laundering transactions to proper authorities, and
that jurisdictional disputes do not hinder examination of compliance
by financial institutions with relevant reporting requirements;
``(12) to strengthen the ability of financial institutions to
maintain the integrity of their employee population; and
``(13) to strengthen measures to prevent the use of the United
States financial system for personal gain by corrupt foreign
officials and to facilitate the repatriation of any stolen assets to
the citizens of countries to whom such assets belong.''
Four-Year Congressional Review; Expedited Consideration
Pub. L. 107-56, title III, Sec. 303, Oct. 26, 2001, 115 Stat. 298,
as amended by Pub. L. 108-458, title VI, Sec. 6202(d), Dec. 17, 2004,
118 Stat. 3745, which provided that, effective on and after the first
day of fiscal year 2005, the provisions of title III of Pub. L. 107-56
and the amendments made by such title would terminate if the Congress
enacted a joint resolution, the text after the resolving clause of which
was as follows: ``That provisions of the International Money Laundering
Abatement and Financial Antiterrorism Act of 2001, and the amendments
made thereby, shall no longer have the force of law.'', was repealed by
Pub. L. 108-458, title VI, Secs. 6204, 6205, Dec. 17, 2004, 118
Stat. 3747, effective as if included in Pub. L. 107-56, as of the date
of enactment of such Act.
Cooperative Efforts To Deter Money Laundering
Pub. L. 107-56, title III, Sec. 314, Oct. 26, 2001, 115 Stat. 307,
as amended by Pub. L. 108-458, title VI, Sec. 6202(f), Dec. 17, 2004,
118 Stat. 3745, provided that:
``(a) Cooperation Among Financial Institutions, Regulatory
Authorities, and Law Enforcement Authorities.--
``(1) Regulations.--The Secretary [of the Treasury] shall,
within 120 days after the date of enactment of this Act [Oct. 26,
2001], adopt regulations to encourage further cooperation among
financial institutions, their regulatory authorities, and law
enforcement authorities, with the specific purpose of encouraging
regulatory authorities and law enforcement authorities to share with
financial institutions information regarding individuals, entities,
and organizations engaged in, or reasonably suspected based on
credible evidence of engaging in, terrorist acts or money laundering
activities.
``(2) Cooperation and information sharing procedures.--The
regulations adopted under paragraph (1) may include or create
procedures for cooperation and information sharing focusing on--
``(A) matters specifically related to the finances of
terrorist groups, the means by which terrorist groups transfer
funds around the world and within the United States, including
through the use of charitable organizations, nonprofit
organizations, and nongovernmental organizations, the extent to
which financial institutions in the United States are
unwittingly involved in such finances, and the extent to which
such institutions are at risk as a result;
``(B) the relationship, particularly the financial
relationship, between international narcotics traffickers and
foreign terrorist organizations, the extent to which their
memberships overlap and engage in joint activities, and the
extent to which they cooperate with each other in raising and
transferring funds for their respective purposes; and
``(C) means of facilitating the identification of accounts
and transactions involving terrorist groups and facilitating the
exchange of information concerning such accounts and
transactions between financial institutions and law enforcement
organizations.
``(3) Contents.--The regulations adopted pursuant to paragraph
(1) may--
``(A) require that each financial institution designate 1 or
more persons to receive information concerning, and monitor
accounts of, individuals, entities, and organizations identified
pursuant to paragraph (1); and
``(B) further establish procedures for the protection of the
shared information, consistent with the capacity, size, and
nature of the financial institution to which the particular
procedures apply.
``(4) Rule of construction.--The receipt of information by a
financial institution pursuant to this section shall not relieve or
otherwise modify the obligations of the financial institution with
respect to any other person or account.
``(5) Use of information.--Information received by a financial
institution pursuant to this section shall not be used for any
purpose other than identifying and reporting on activities that may
involve terrorist acts or money laundering activities.
``(b) Cooperation Among Financial Institutions.--Upon notice
provided to the Secretary, 2 or more financial institutions and any
association of financial institutions may share information with one
another regarding individuals, entities, organizations, and countries
suspected of possible terrorist or money laundering activities. A
financial institution or association that transmits, receives, or shares
such information for the purposes of identifying and reporting
activities that may involve terrorist acts or money laundering
activities shall not be liable to any person under any law or regulation
of the United States, any constitution, law, or regulation of any State
or political subdivision thereof, or under any contract or other legally
enforceable agreement (including any arbitration agreement), for such
disclosure or for any failure to provide notice of such disclosure to
the person who is the subject of such disclosure, or any other person
identified in the disclosure, except where such transmission, receipt,
or sharing violates this section or regulations promulgated pursuant to
this section.
``(c) Rule of Construction.--Compliance with the provisions of this
title [see Short Title of 2001 Amendment note set out under section 5301
of this title] requiring or allowing financial institutions and any
association of financial institutions to disclose or share information
regarding individuals, entities, and organiza
tions engaged in or suspected of engaging in terrorist acts or money
laundering activities shall not constitute a violation of the provisions
of title V of the Gramm-Leach-Bliley Act (Public Law 106-102) [15 U.S.C.
6801 et seq.].
``(d) Reports to the Financial Services Industry on Suspicious
Financial Activities.--At least semiannually, the Secretary shall--
``(1) publish a report containing a detailed analysis
identifying patterns of suspicious activity and other investigative
insights derived from suspicious activity reports and investigations
conducted by Federal, State, and local law enforcement agencies to
the extent appropriate; and
``(2) distribute such report to financial institutions (as
defined in section 5312 of title 31, United States Code).''
Report and Recommendation on Legislative Action on International Counter
Money Laundering Provisions
Pub. L. 107-56, title III, Sec. 324, Oct. 26, 2001, 115 Stat. 316,
provided that: ``Not later than 30 months after the date of enactment of
this Act [Oct. 26, 2001], the Secretary [of the Treasury], in
consultation with the Attorney General, the Federal banking agencies (as
defined at section 3 of the Federal Deposit Insurance Act [12 U.S.C.
1813]), the National Credit Union Administration Board, the Securities
and Exchange Commission, and such other agencies as the Secretary may
determine, at the discretion of the Secretary, shall evaluate the
operations of the provisions of this subtitle [subtitle A
(Secs. 311-330) of title III of Pub. L. 107-56, enacting section
5318A of this title, amending sections 5312 and 5318 of this title,
sections 1828 and 1842 of Title 12, Banks and Banking, sections 981,
983, and 1956 of Title 18, Crimes and Criminal Procedure, section 853 of
Title 21, Food and Drugs, and sections 2466 and 2467 of Title 28,
Judiciary and Judicial Procedure, and enacting provisions set out as
notes under this section and section 5318 of this title, sections 1828
and 1842 of Title 12, and section 983 of Title 18] and make
recommendations to Congress as to any legislative action with respect to
this subtitle as the Secretary may determine to be necessary or
advisable.''
International Cooperation on Identification of Originators of Wire
Transfers
Pub. L. 107-56, title III, Sec. 328, Oct. 26, 2001, 115 Stat. 319,
provided that: ``The Secretary [of the Treasury] shall--
``(1) in consultation with the Attorney General and the
Secretary of State, take all reasonable steps to encourage foreign
governments to require the inclusion of the name of the originator
in wire transfer instructions sent to the United States and other
countries, with the information to remain with the transfer from its
origination until the point of disbursement; and
``(2) report annually to the Committee on Financial Services of
the House of Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate on--
``(A) progress toward the goal enumerated in paragraph (1),
as well as impediments to implementation and an estimated
compliance rate; and
``(B) impediments to instituting a regime in which all
appropriate identification, as defined by the Secretary, about
wire transfer recipients shall be included with wire transfers
from their point of origination until disbursement.''
Criminal Penalties
Pub. L. 107-56, title III, Sec. 329, Oct. 26, 2001, 115 Stat. 319,
provided that: ``Any person who is an official or employee of any
department, agency, bureau, office, commission, or other entity of the
Federal Government, and any other person who is acting for or on behalf
of any such entity, who, directly or indirectly, in connection with the
administration of this title [see Short Title of 2001 Amendment note set
out under section 5301 of this title], corruptly demands, seeks,
receives, accepts, or agrees to receive or accept anything of value
personally or for any other person or entity in return for--
``(1) being influenced in the performance of any official act;
``(2) being influenced to commit or aid in the committing, or to
collude in, or allow, any fraud, or make opportunity for the
commission of any fraud, on the United States; or
``(3) being induced to do or omit to do any act in violation of
the official duty of such official or person,
shall be fined in an amount not more than 3 times the monetary
equivalent of the thing of value, or imprisoned for not more than 15
years, or both. A violation of this section shall be subject to chapter
227 of title 18, United States Code, and the provisions of the United
States Sentencing Guidelines.''
Report on Investment Companies
Pub. L. 107-56, title III, Sec. 356(c), Oct. 26, 2001, 115 Stat.
324, as amended by Pub. L. 108-458, title VI, Sec. 6202(j), Dec. 17,
2004, 118 Stat. 3746, provided that:
``(1) In general.--Not later than 1 year after the date of enactment
of this Act [Oct. 26, 2001], the Secretary [of the Treasury], the Board
of Governors of the Federal Reserve System, and the Securities and
Exchange Commission shall jointly submit a report to the Congress on
recommendations for effective regulations to apply the requirements of
subchapter II of chapter 53 of title 31, United States Code, to
investment companies pursuant to section 5312(a)(2)(I) of title 31,
United States Code.
``(2) Definition.--For purposes of this subsection, the term
`investment company'--
``(A) has the same meaning as in section 3 of the Investment
Company Act of 1940 (15 U.S.C. 80a-3); and
``(B) includes any person that, but for the exceptions provided
for in paragraph (1) or (7) of section 3(c) of the Investment
Company Act of 1940 (15 U.S.C. 80a-3(c)), would be an investment
company.
``(3) Additional recommendations.--The report required by paragraph
(1) may make different recommendations for different types of entities
covered by this subsection.
``(4) Beneficial ownership of personal holding companies.--The
report described in paragraph (1) shall also include recommendations as
to whether the Secretary should promulgate regulations to treat any
corporation, business trust, or other grantor trust whose assets are
predominantly securities, bank certificates of deposit, or other
securities or investment instruments (other than such as relate to
operating subsidiaries of such corporation or trust) and that has 5 or
fewer common shareholders or holders of beneficial or other equity
interest, as a financial institution within the meaning of that phrase
in section 5312(a)(2)(I) and whether to require such corporations or
trusts to disclose their beneficial owners when opening accounts or
initiating funds transfers at any domestic financial institution.''
Report on Need for Additional Legislation Relating to Informal Money
Transfer Systems
Pub. L. 107-56, title III, Sec. 359(d), Oct. 26, 2001, 115 Stat.
329, provided that: ``Not later than 1 year after the date of enactment
of this Act [Oct. 26, 2001], the Secretary of the Treasury shall report
to Congress on the need for any additional legislation relating to
persons who engage as a business in an informal money transfer system or
any network of people who engage as a business in facilitating the
transfer of money domestically or internationally outside of the
conventional financial institutions system, counter money laundering and
regulatory controls relating to underground money movement and banking
systems, including whether the
threshold for the filing of suspicious activity reports under section
5318(g) of title 31, United States Code should be lowered in the case of
such systems.''
Uniform State Licensing and Regulation of Check Cashing, Currency
Exchange, and Money Transmitting Businesses
Pub. L. 103-325, title IV, Sec. 407, Sept. 23, 1994, 108 Stat. 2247,
provided that:
``(a) Uniform Laws and Enforcement.--For purposes of preventing
money laundering and protecting the payment system from fraud and abuse,
it is the sense of the Congress that the several States should--
``(1) establish uniform laws for licensing and regulating
businesses which--
``(A) provide check cashing, currency exchange, or money
transmitting or remittance services, or issue or redeem money
orders, travelers' checks, and other similar instruments; and
``(B) are not depository institutions (as defined in section
5313(g) of title 31, United States Code); and
``(2) provide sufficient resources to the appropriate State
agency to enforce such laws and regulations prescribed pursuant to
such laws.
``(b) Model Statute.--It is the sense of the Congress that the
several States should develop, through the auspices of the National
Conference of Commissioners on Uniform State Laws, the American Law
Institute, or such other forum as the States may determine to be
appropriate, a model statute to carry out the goals described in
subsection (a) which would include the following:
``(1) Licensing requirements.--A requirement that any business
described in subsection (a)(1) be licensed and regulated by an
appropriate State agency in order to engage in any such activity
within the State.
``(2) Licensing standards.--A requirement that--
``(A) in order for any business described in subsection
(a)(1) to be licensed in the State, the appropriate State agency
shall review and approve--
``(i) the business record and the capital adequacy of
the business seeking the license; and
``(ii) the competence, experience, integrity, and
financial ability of any individual who--
``(I) is a director, officer, or supervisory employee of such
business; or
``(II) owns or controls such business; and
``(B) any record, on the part of any business seeking the
license or any person referred to in subparagraph (A)(ii), of--
``(i) any criminal activity;
``(ii) any fraud or other act of personal dishonesty;
``(iii) any act, omission, or practice which constitutes
a breach of a fiduciary duty; or
``(iv) any suspension or removal, by any agency or
department of the United States or any State, from
participation in the conduct of any federally or State
licensed or regulated business,
may be grounds for the denial of any such license by the appropriate
State agency.
``(3) Reporting requirements.--A requirement that any business
described in subsection (a)(1)--
``(A) disclose to the appropriate State agency the fees
charged to consumers for services described in subsection
(a)(1)(A); and
``(B) conspicuously disclose to the public, at each location
of such business, the fees charged to consumers for such
services.
``(4) Procedures to ensure compliance with federal cash
transaction reporting requirements.--A civil or criminal penalty for
operating any business referred to in paragraph (1) without
establishing and complying with appropriate procedures to ensure
compliance with subchapter II of chapter 53 of title 31, United
States Code (relating to records and reports on monetary instruments
transactions).
``(5) Criminal penalties for operation of business without a
license.--A criminal penalty for operating any business referred to
in paragraph (1) without a license within the State after the end of
an appropriate transition period beginning on the date of enactment
of such model statute by the State.
``(c) Study Required.--The Secretary of the Treasury shall conduct a
study of--
``(1) the progress made by the several States in developing and
enacting a model statute which--
``(A) meets the requirements of subsection (b); and
``(B) furthers the goals of--
``(i) preventing money laundering by businesses which
are required to be licensed under any such statute; and
``(ii) protecting the payment system, including the
receipt, payment, collection, and clearing of checks, from
fraud and abuse by such businesses; and
``(2) the adequacy of--
``(A) the activity of the several States in enforcing the
requirements of such statute; and
``(B) the resources made available to the appropriate State
agencies for such enforcement activity.
``(d) Report Required.--Not later than the end of the 3-year period
beginning on the date of enactment of this Act [Sept. 23, 1994] and not
later than the end of each of the first two 1-year periods beginning
after the end of such 3-year period, the Secretary of the Treasury shall
submit a report to the Congress containing the findings and
recommendations of the Secretary in connection with the study under
subsection (c), together with such recommendations for legislative and
administrative action as the Secretary may determine to be appropriate.
``(e) Recommendations in Cases of Inadequate Regulation and
Enforcement by States.--If the Secretary of the Treasury determines that
any State has been unable to--
``(1) enact a statute which meets the requirements described in
subsection (b);
``(2) undertake adequate activity to enforce such statute; or
``(3) make adequate resources available to the appropriate State
agency for such enforcement activity,
the report submitted pursuant to subsection (d) shall contain
recommendations of the Secretary which are designed to facilitate the
enactment and enforcement by the State of such a statute.
``(f) Federal Funding Study.--
``(1) Study required.--The Secretary of the Treasury shall
conduct a study to identify possible available sources of Federal
funding to cover costs which will be incurred by the States in
carrying out the purposes of this section.
``(2) Report.--The Secretary of the Treasury shall submit a
report to the Congress on the study conducted pursuant to paragraph
(1) not later than the end of the 18-month period beginning on the
date of enactment of this Act [Sept. 23, 1994].''
Anti-Money Laundering Training Team
Pub. L. 102-550, title XV, Sec. 1518, Oct. 28, 1992, 106 Stat. 4060,
provided that: ``The Secretary of the Treasury and the Attorney General
shall jointly establish a team of experts to assist and provide training
to foreign governments and agencies thereof in developing and expanding
their capabilities for investigating and prosecuting violations of money
laundering and related laws.''
Advisory Group on Reporting Requirements
Pub. L. 102-550, title XV, Sec. 1564, Oct. 28, 1992, 106 Stat. 4073,
provided that:
``(a) Establishment.--Not later than 90 days after the date of the
enactment of this Act [Oct. 28, 1992], the Secretary of the Treasury
shall establish a Bank Secrecy Act Advisory Group consisting of
representatives
of the Department of the Treasury, the Department of Justice, and the
Office of National Drug Control Policy and of other interested persons
and financial institutions subject to the reporting requirements of
subchapter II of chapter 53 of title 31, United States Code, or section
6050I of the Internal Revenue Code of 1986 [26 U.S.C. 6050I].
``(b) Purposes.--The Advisory Group shall provide a means by which
the Secretary--
``(1) informs private sector representatives, on a regular
basis, of the ways in which the reports submitted pursuant to the
requirements referred to in subsection (a) have been used;
``(2) informs private sector representatives, on a regular
basis, of how information regarding suspicious financial
transactions provided voluntarily by financial institutions has been
used; and
``(3) receives advice on the manner in which the reporting
requirements referred to in subsection (a) should be modified to
enhance the ability of law enforcement agencies to use the
information provided for law enforcement purposes.
``(c) Inapplicability of Federal Advisory Committee Act.--The
Federal Advisory Committee Act [5 U.S.C. App.] shall not apply to the
Bank Secrecy Act Advisory Group established pursuant to subsection
(a).''
GAO Feasibility Study of Financial Crimes Enforcement Network
Pub. L. 102-550, title XV, Sec. 1565, Oct. 28, 1992, 106 Stat. 4074,
provided that:
``(a) Study Required.--The Comptroller General of the United States
shall conduct a feasibility study of the Financial Crimes Enforcement
Network (popularly referred to as `Fincen') established by the Secretary
of the Treasury in cooperation with other agencies and departments of
the United States and appropriate Federal banking agencies.
``(b) Specific Requirements.--In conducting the study required under
subsection (a), the Comptroller General shall examine and evaluate--
``(1) the extent to which Federal, State, and local governmental
and nongovernmental organizations are voluntarily providing
information which is necessary for the system to be useful for law
enforcement purposes;
``(2) the extent to which the operational guidelines established
for the system provide for the coordinated and efficient entry of
information into, and withdrawal of information from, the system;
``(3) the extent to which the operating procedures established
for the system provide appropriate standards or guidelines for
determining--
``(A) who is to be given access to the information in the
system;
``(B) what limits are to be imposed on the use of such
information; and
``(C) how information about activities or relationships
which involve or are closely associated with the exercise of
constitutional rights is to be screened out of the system; and
``(4) the extent to which the operating procedures established
for the system provide for the prompt verification of the accuracy
and completeness of information entered into the system and the
prompt deletion or correction of inaccurate or incomplete
information.
``(c) Report to Congress.--Before the end of the 1-year period,
beginning on the date of the enactment of this Act [Oct. 28, 1992], the
Comptroller General of the United States shall submit a report to the
Congress containing the findings and conclusions of the Comptroller
General in connection with the study conducted pursuant to subsection
(a), together with such recommendations for legislative or
administrative action as the Comptroller General may determine to be
appropriate.''
Reports on Uses Made of Currency Transaction Reports
Pub. L. 101-647, title I, Sec. 101, Nov. 29, 1990, 104 Stat. 4789,
provided that: ``Not later than 180 days after the effective date of
this section [Nov. 29, 1990], and every 2 years for 4 years, the
Secretary of the Treasury shall report to the Congress the following:
``(1) the number of each type of report filed pursuant to
subchapter II of chapter 53 of title 31, United States Code (or
regulations promulgated thereunder) in the previous fiscal year;
``(2) the number of reports filed pursuant to section 6050I of
the Internal Revenue Code of 1986 [26 U.S.C. 6050I] (regarding
transactions involving currency) in the previous fiscal year;
``(3) an estimate of the rate of compliance with the reporting
requirements by persons required to file the reports referred to in
paragraphs (1) and (2);
``(4) the manner in which the Department of the Treasury and
other agencies of the United States collect, organize, analyze and
use the reports referred to in paragraphs (1) and (2) to support
investigations and prosecutions of (A) violations of the criminal
laws of the United States, (B) violations of the laws of foreign
countries, and (C) civil enforcement of the laws of the United
States including the provisions regarding asset forfeiture;
``(5) a summary of sanctions imposed in the previous fiscal year
against persons who failed to comply with the reporting requirements
referred to in paragraphs (1) and (2), and other steps taken to
ensure maximum compliance;
``(6) a summary of criminal indictments filed in the previous
fiscal year which resulted, in large part, from investigations
initiated by analysis of the reports referred to in paragraphs (1)
and (2); and
``(7) a summary of criminal indictments filed in the previous
fiscal year which resulted, in large part, from investigations
initiated by information regarding suspicious financial transactions
provided voluntarily by financial institutions.''
International Currency Transaction Reporting
Pub. L. 100-690, title IV, Sec. 4701, Nov. 18, 1988, 102 Stat. 4290,
stated Congressional findings concerning success of cash transaction and
money laundering control statutes in United States and desirability of
United States playing a leadership role in development of similar
international system, urged United States Government to seek active
cooperation of other countries in enforcement of such statutes, urged
Secretary of the Treasury to negotiate with finance ministers of foreign
countries to establish an international currency control agency to serve
as central source of information and database for international drug
enforcement agencies to collect and analyze currency transaction reports
filed by member countries, and encouraged adoption, by member countries,
of uniform cash transaction and money laundering statutes, prior to
repeal by Pub. L. 102-583, Sec. 6(e)(1), Nov. 2, 1992, 106 Stat. 4933.
Restrictions on Laundering of United States Currency
Pub. L. 100-690, title IV, Sec. 4702, Nov. 18, 1988, 102 Stat. 4291,
as amended by Pub. L. 103-447, title I, Sec. 103(b), Nov. 2, 1994, 108
Stat. 4693, provided that:
``(a) Findings.--The Congress finds that international currency
transactions, especially in United States currency, that involve the
proceeds of narcotics trafficking fuel trade in narcotics in the United
States and worldwide and consequently are a threat to the national
security of the United States.
``(b) Purpose.--The purpose of this section is to provide for
international negotiations that would expand access to information on
transactions involving large amounts of United States currency wherever
those transactions occur worldwide.
``(c) Negotiations.--(1) The Secretary of the Treasury (hereinafter
in this section referred to as the `Sec
retary') shall enter into negotiations with the appropriate financial
supervisory agencies and other officials of any foreign country the
financial institutions of which do business in United States currency.
Highest priority shall be attached to countries whose financial
institutions the Secretary determines, in consultation with the Attorney
General and the Director of National Drug Control Policy, may be
engaging in currency transactions involving the proceeds of
international narcotics trafficking, particularly United States currency
derived from drug sales in the United States.
``(2) The purposes of negotiations under this subsection are--
``(A) to reach one or more international agreements to ensure
that foreign banks and other financial institutions maintain
adequate records of large United States currency transactions, and
``(B) to establish a mechanism whereby such records may be made
available to United States law enforcement officials.
In carrying out such negotiations, the Secretary should seek to enter
into and further cooperative efforts, voluntary information exchanges,
the use of letters rogatory, and mutual legal assistance treaties.
``(d) Reports.--Not later than 1 year after the date of enactment of
this Act [Nov. 18, 1988], the Secretary shall submit an interim report
to the Committee on Banking, Finance and Urban Affairs of the House of
Representatives and the Committee on Banking, Housing, and Urban Affairs
of the Senate on progress in the negotiations under subsection (c). Not
later than 2 years after such enactment, the Secretary shall submit a
final report to such Committees and the President on the outcome of
those negotiations and shall identify, in consultation with the Attorney
General and the Director of National Drug Control Policy, countries--
``(1) with respect to which the Secretary determines there is
evidence that the financial institutions in such countries are
engaging in currency transactions involving the proceeds of
international narcotics trafficking; and
``(2) which have not reached agreement with United States
authorities on a mechanism for exchanging adequate records on
international currency transactions in connection with narcotics
investigations and proceedings.
``(e) Authority.--If after receiving the advice of the Secretary and
in any case at the time of receipt of the Secretary's report, the
Secretary determines that a foreign country--
``(1) has jurisdiction over financial institutions that are
substantially engaging in currency transactions that effect [affect]
the United States involving the proceeds of international narcotics
trafficking;
``(2) such country has not reached agreement on a mechanism for
exchanging adequate records on international currency transactions
in connection with narcotics investigations and proceedings; and
``(3) such country is not negotiating in good faith to reach
such an agreement,
the President shall impose appropriate penalties and sanctions,
including temporarily or permanently--
``(1) prohibiting such persons, institutions or other entities
in such countries from participating in any United States dollar
clearing or wire transfer system; and
``(2) prohibiting such persons, institutions or entities in such
countries from maintaining an account with any bank or other
financial institution chartered under the laws of the United States
or any State.
Any penalties or sanctions so imposed may be delayed or waived upon
certification of the President to the Congress that it is in the
national interest to do so. Financial institutions in such countries
that maintain adequate records shall be exempt from such penalties and
sanctions.
``(f) Definitions.--For the purposes of this section--
``(1) The term `United States currency' means Federal Reserve
Notes and United States coins.
``(2) The term `adequate records' means records of United
States' currency transactions in excess of $10,000 including the
identification of the person initiating the transaction, the
person's business or occupation, and the account or accounts
affected by the transaction, or other records of comparable
effect.''
International Information Exchange System; Study of Foreign Branches of
Domestic Institutions
Pub. L. 99-570, title I, Sec. 1363, Oct. 27, 1986, 100 Stat. 3207-
33, required the Secretary of the Treasury to initiate discussions with
the central banks or other appropriate governmental authorities of other
countries and propose that an information exchange system be established
to reduce international flow of money derived from illicit drug
operations and other criminal activities and to report to Congress
before the end of the 9-month period beginning Oct. 27, 1986. The
Secretary of the Treasury was also required to conduct a study of (1)
the extent to which foreign branches of domestic institutions are used
to facilitate illicit transfers of or to evade reporting requirements on
transfers of coins, currency, and other monetary instruments into and
out of the United States; (2) the extent to which the law of the United
States is applicable to the activities of such foreign branches; and (3)
methods for obtaining the cooperation of the country in which any such
foreign branch is located for purposes of enforcing the law of the
United States with respect to transfers, and reports on transfers, of
such monetary instruments into and out of the United States and to
report to Congress before the end of the 9-month period beginning Oct.
27, 1986.