31 C.F.R. Subpart E—General Provisions
Title 31 - Money and Finance: Treasury
Source: 37 FR 6912, Apr. 5, 1972, unless otherwise noted. Redesignated at 64 FR 45451, Aug. 20, 1999.
Wherever in this part an amount is stated in dollars, it shall be deemed to mean also the equivalent amount in any foreign currency. Nothing herein contained shall require or authorize the microfilming or other reproduction of (a) Currency or other obligation or security of the United States as defined in 18 U.S.C. 8, or (b) Any obligation or other security of any foreign government, the reproduction of which is prohibited by law. (a) The Secretary may within his discretion disclose information reported under this part for any reason consistent with the purposes of the Bank Secrecy Act, including those set forth in paragraphs (b) through (d) of this section. (b) The Secretary may make any information set forth in any report received pursuant to this part available to another agency of the United States, to an agency of a state or local government or to an agency of a foreign government, upon the request of the head of such department or agency made in writing and stating the particular information desired, the criminal, tax or regulatory purpose for which the information is sought, and the official need for the information. (c) The Secretary may make any information set forth in any report received pursuant to this part available to the Congress, or any committee or subcommittee thereof, upon a written request stating the particular information desired, the criminal, tax or regulatory purpose for which the information is sought, and the official need for the information. (d) The Secretary may make any information set forth in any report received pursuant to this part available to any other department or agency of the United States that is a member of the Intelligence Community, as defined by Executive Order 12333 or any succeeding executive order, upon the request of the head of such department or agency made in writing and stating the particular information desired, the national security matter with which the information is sought and the official need therefor. (e) Any information made available under this section to other department or agencies of the United States, any state or local government, or any foreign government shall be received by them in confidence, and shall not be disclosed to any person except for official purposes relating to the investigation, proceeding or matter in connection with which the information is sought. (f) The Secretary may require that a state or local government department or agency requesting information under paragraph (b) of this section pay fees to reimburse the Department of the Treasury for costs incidental to such disclosure. The amount of such fees will be set in accordance with the statute on fees for government services, 31 U.S.C. 9701. [50 FR 42693, Oct. 22, 1985, as amended at 50 FR 46283, Nov. 7, 1985; 52 FR 35545, Sept. 22, 1987] All reports required under this part and all records of such reports are specifically exempted from disclosure under section 552 of Title 5, United States Code. (a) The Secretary, in his sole discretion, may by written order or authorization make exceptions to or grant exemptions from the requirements of this part. Such exceptions or exemptions may be conditional or unconditional, may apply to particular persons or to classes of persons, and may apply to particular transactions or classes of transactions. They shall, however, be applicable only as expressly stated in the order of authorization, and they shall be revocable in the sole discretion of the Secretary. (b) The Secretary shall have authority to further define all terms used herein. (c)(1) The Secretary may, as an alternative to the reporting and recordkeeping requirements for casinos in §§103.22(a)(2) and 103.25(a)(2), and 103.36, grant exemptions to the casinos in any state whose regulatory system substantially meets the reporting and recordkeeping requirements of this part. (2) In order for a state regulatory system to qualify for an exemption on behalf of its casinos, the state must provide: (i) That the Treasury Department be allowed to evaluate the effectiveness of the state's regulatory system by periodic oversight review of that system; (ii) That the reports required under the state's regulatory system be submitted to the Treasury Department within 15 days of receipt by the state; (iii) That any records required to be maintained by the casinos relevant to any matter under this part and to which the state has access or maintains under its regulatory system be made available to the Treasury Department within 30 days of request; (iv) That the Treasury Department be provided with periodic status reports on the state's compliance efforts and findings; (v) That all but minor violations of the state requirements be reported to Treasury within 15 days of discovery; and (vi) That the state will initiate compliance examinations of specific institutions at the request of Treasury within a reasonable time, not to exceed 90 days where appropriate, and will provide reports of these examinations to Treasury within 15 days of completion or periodically during the course of the examination upon the request of the Secretary. If for any reason the state were not able to conduct an investigation within a reasonable time, the state will permit Treasury to conduct the investigation. (3) Revocation of any exemption under this subsection shall be in the sole discretion of the Secretary. [38 FR 2176, Jan. 22, 1973, as amended at 50 FR 5069, Feb. 6, 1985; 50 FR 36875, Sept. 10, 1985] (a) Overall authority for enforcement and compliance, including coordination and direction of procedures and activities of all other agencies exercising delegated authority under this part, is delegated to the Assistant Secretary (Enforcement). (b) Authority to examine institutions to determine compliance with the requirements of this part is delegated as follows: (1) To the Comptroller of the Currency with respect to those financial institutions regularly examined for safety and soundness by national bank examiners; (2) To the Board of Governors of the Federal Reserve System with respect to those financial institutions regularly examined for safety and soundness by Federal Reserve bank examiners; (3) To the Federal Deposit Insurance Corporation with respect to those financial institutions regularly examined for safety and soundness by FDIC bank examiners; (4) To the Federal Home Loan Bank Board with respect to those financial institutions regularly examined for safety and soundness by FHLBB bank examiners; (5) To the Chairman of the Board of the National Credit Union Administration with respect to those financial institutions regularly examined for safety and soundness by NCUA examiners. (6) To the Securities and Exchange Commission with respect to brokers and dealers in securities and investment companies as that term is defined in the Investment Company Act of 1940 (15 U.S.C. 80–1 et seq.); (7) To the Commissioner of Customs with respect to §§103.23 and 103.58; (8) To the Commissioner of Internal Revenue with respect to all financial institutions, except brokers or dealers in securities, futures commission merchants, introducing brokers in commodities, and commodity trading advisors, not currently examined by Federal bank supervisory agencies for soundness and safety; and (9) To the Commodity Futures Trading Commission with respect to futures commission merchants, introducing brokers in commodities, and commodity trading advisors. (c) Authority for investigating criminal violations of this part is delegated as follows: (1) To the Commissioner of Customs with respect to §103.23; (2) To the Commissioner of Internal Revenue except with respect to §103.23. (d) Authority for the imposition of civil penalties for violations of this part lies with the Assistant Secretary, and in the Assistant Secretary's absence, the Deputy Assistant Secretary (Law Enforcement). (e) Periodic reports shall be made to the Assistant Secretary by each agency to which compliance authority has been delegated under paragraph (b) of this section. These reports shall be in such a form and submitted at such intervals as the Assistant Secretary may direct. Evidence of specific violations of any of the requirements of this part may be submitted to the Assistant Secretary at any time. (f) The Assistant Secretary or his delegate, and any agency to which compliance has been delegated under paragraph (b) of this section, may examine any books, papers, records, or other data of domestic financial institutions relevant to the recordkeeping or reporting requirements of this part. (g) The authority to enforce the provisions of 31 U.S.C. 5314 and §§103.24 and 103.32 of this part has been redelegated from FinCEN to the Commissioner of Internal Revenue by means of a Memorandum of Agreement between FinCEN and IRS. Such authority includes, with respect to 31 U.S.C. 5314 and §§103.24 and 103.32 of this part, the authority to: assess and collect civil penalties under 31 U.S.C. 5321 and 31 CFR 103.57; investigate possible civil violations of these provisions (in addition to the authority already provided at paragraph (c)(2)) of this section); employ the summons power of subpart F of part 103; issue administrative rulings under subpart G of part 103; and take any other action reasonably necessary for the enforcement of these and related provisions, including pursuit of injunctions. (Sec. 21, Federal Deposit Insurance Act, 84 Stat. 1114, 12 U.S.C. 1829b; 84 Stat. 1116, 12 U.S.C. 1951–1959; and the Currency and Foreign Transactions Reporting Act, 84 Stat. 1118, 31 U.S.C. 1051–1122) [37 FR 6912, Apr. 5, 1972, as amended at 50 FR 42693, Oct. 22, 1985; 52 FR 11445, Apr. 8, 1987. Redesignated and amended at 64 FR 45451, 45453, Aug. 20, 1999; 67 FR 21121, Apr. 29, 2002; 68 FR 26489, May 16, 2003; 68 FR 65399, Nov. 20, 2003] (a) For any willful violation, committed on or before October 12, 1984, of any reporting requirement for financial institutions under this part or of any recordkeeping requirements of §103.22, the Secretary may assess upon any domestic financial institution, and upon any partner, director, officer, or employee thereof who willfully participates in the violation, a civil penalty not to exceed $1,000. (b) For any willful violation committed after October 12, 1984 and before October 28, 1986, of any reporting requirement for financial institutions under this part or of the recordkeeping requirements of §103.32, the Secretary may assess upon any domestic financial institution, and upon any partner, director, officer, or employee thereof who willfully participates in the violation, a civil penalty not to exceed $10,000. (c) For any willful violation of any recordkeeping requirement for financial institutions, except violations of §103.32, under this part, the Secretary may assess upon any domestic financial institution, and upon any partner, director, officer, or employee thereof who willfully participates in the violation, a civil penalty not to exceed $1,000. (d) For any failure to file a report required under §103.23 or for filing such a report containing any material omission or misstatement, the Secretary may assess a civil penalty up to the amount of the currency or monetary instruments transported, mailed or shipped, less any amount forfeited under §103.58. (e) For any willful violation of §103.63 committed after January 26, 1987, the Secretary may assess upon any person a civil penalty not to exceed the amount of coins and currency involved in the transaction with respect to which such penalty is imposed. The amount of any civil penalty assessed under this paragraph shall be reduced by the amount of any forfeiture to the United States in connection with the transaction for which the penalty was imposed. (f) For any willful violation committed after October 27, 1986, of any reporting requirement for financial institutions under this part (except §103.24, §103.25 or §103.32), the Secretary may assess upon any domestic financial institution, and upon any partner, director, officer, or employee thereof who willfully participates in the violation, a civil penalty not to exceed the greater of the amount (not to exceed $100,000) involved in the transaction or $25,000. (g) For any willful violation committed after October 27, 1986, of any requirement of §103.24, §103.25, or §103.32, the Secretary may assess upon any person, a civil penalty: (1) In the case of a violation of §103.25 involving a transaction, a civil penalty not to exceed the greater of the amount (not to exceed $100,000) of the transaction, or $25,000; and (2) In the case of a violation of §103.24 or §103.32 involving a failure to report the existence of an account or any identifying information required to be provided with respect to such account, a civil penalty not to exceed the greater of the amount (not to exceed $100,000) equal to the balance in the account at the time of the violation, or $25,000. (h) For each negligent violation of any requirement of this part, committed after October 27, 1986, the Secretary may assess upon any financial institution a civil penalty not to exceed $500. [37 FR 6912, Apr. 5, 1972, as amended at 52 FR 11445, Apr. 8, 1987; 52 FR 12641, Apr. 17, 1987. Redesignated and amended at 64 FR 45451, 45453, Aug. 20, 1999] Any currency or other monetary instruments which are in the process of any transportation with respect to which a report is required under §103.23 are subject to seizure and forfeiture to the United States if such report has not been filed as required in §103.25, or contains material omissions or misstatements. The Secretary may, in his sole discretion, remit or mitigate any such forfeiture in whole or in part upon such terms and conditions as he deems reasonable. (a) Any person who willfully violates any provision of Title I of Pub. L. 91–508, or of this part authorized thereby may, upon conviction thereof, be fined not more than $1,000 or be imprisoned not more than 1 year, or both. Such person may in addition, if the violation is of any provision authorized by Title I of Pub. L. 91–508 and if the violation is committed in furtherance of the commission of any violation of Federal law punishable by imprisonment for more than 1 year, be fined not more than $10,000 or be imprisoned not more than 5 years, or both. (b) Any person who willfully violates any provision of Title II of Pub. L. 91–508, or of this part authorized thereby, may, upon conviction thereof, be fined not more than $250,000 or be imprisoned not more than 5 years, or both. (c) Any person who willfully violates any provision of Title II of Pub. L. 91–508, or of this part authorized thereby, where the violation is either (1) Committed while violating another law of the United States, or (2) Committed as part of a pattern of any illegal activity involving more than $100,000 in any 12-month period, may, upon conviction thereof, be fined not more than $500,000 or be imprisoned not more than 10 years, or both. (d) Any person who knowingly makes any false, fictitious or fraudulent statement or representation in any report required by this part may, upon conviction thereof, be fined not more than $10,000 or be imprisoned not more than 5 years, or both. [37 FR 6912, Apr. 5, 1972, as amended at 50 FR 18479, May 1, 1985; 53 FR 4138, Feb. 12, 1988] (a) If a customs officer has reasonable cause to believe that there is a monetary instrument being transported without the filing of the report required by §§103.23 and 103.25 of this chapter, he may stop and search, without a search warrant, a vehicle, vessel, aircraft, or other conveyance, envelope or other container, or person entering or departing from the United States with respect to which or whom the officer reasonably believes is transporting such instrument. (b) If the Secretary has reason to believe that currency or monetary instruments are in the process of transportation and with respect to which a report required under §103.23 has not been filed or contains material omissions or misstatements, he may apply to any court of competent jurisdiction for a search warrant. Upon a showing of probable cause, the court may issue a warrant authorizing the search of any or all of the following: (1) One or more designated persons. (2) One or more designated or described places or premises. (3) One or more designated or described letters, parcels, packages, or other physical objects. (4) One or more designated or described vehicles. Any application for a search warrant pursuant to this section shall be accompanied by allegations of fact supporting the application. (c) This section is not in derogation of the authority of the Secretary under any other law or regulation. [37 FR 6912, Apr. 5, 1972, as amended at 50 FR 18479, May 1, 1985] Except as provided in §§103.34(a)(1), 103.35(a)(1), and 103.36(a) and except for the purpose of assuring compliance with the recordkeeping and reporting requirements of this part, this part does not authorize the Secretary or any other person to inspect or review the records required to be maintained by subpart C of this part. Other inspection, review or access to such records is governed by other applicable law. [50 FR 5069, Feb. 6, 1985] (a) If an individual provides original information which leads to a recovery of a criminal fine, civil penalty, or forfeiture, which exceeds $50,000, for a violation of the provisions of the Act or of this part, the Secretary may pay a reward to that individual. (b) The Secretary shall determine the amount of the reward to be paid under this section; however, any reward paid may not be more than 25 percent of the net amount of the fine, penalty or forfeiture collected, or $150,000, whichever is less. (c) An officer or employee of the United States, a State, or a local government who provides original information described in paragraph (a) in the performance of official duties is not eligible for a reward under this section. [50 FR 18479, May 1, 1985] No person shall for the purpose of evading the reporting requirements of §103.22 with respect to such transaction: (a) Cause or attempt to cause a domestic financial institution to fail to file a report required under §103.22; (b) Cause or attempt to cause a domestic financial institution to file a report required under §103.22 that contains a material omission or misstatement of fact; or (c) Structure (as that term is defined in §103.11(n) of this part) or assist in structuring, or attempt to structure or assist in structuring, any transaction with one or more domestic financial institutions. [52 FR 11446, Apr. 8, 1987, as amended at 54 FR 3027, Jan. 23, 1989] (a) Compliance programs. (1) Each casino shall develop and implement a written program reasonably designed to assure and monitor compliance with the requirements set forth in 31 U.S.C. chapter 53, subchapter II and the regulations contained in this part. (2) At a minimum, each compliance program shall provide for: (i) A system of internal controls to assure ongoing compliance; (ii) Internal and/or external independent testing for compliance. The scope and frequency of the testing shall be commensurate with the money laundering and terrorist financing risks posed by the products and services provided by the casino; (iii) Training of casino personnel, including training in the identification of unusual or suspicious transactions, to the extent that the reporting of such transactions is required by this part, by other applicable law or regulation, or by the casino's own administrative and compliance policies; (iv) An individual or individuals to assure day-to-day compliance; (v) Procedures for using all available information to determine: (A) When required by this part, the name, address, social security number, and other information, and verification of the same, of a person; (B) The occurrence of any transactions or patterns of transactions required to be reported pursuant to §103.21; (C) Whether any record as described in subpart C of this part must be made and retained; and (vi) For casinos that have automated data processing systems, the use of automated programs to aid in assuring compliance. (b) Special terms. As used in this part, as applied to casinos: (1) Business year means the annual accounting period, such as a calendar or fiscal year, by which a casino maintains its books and records for purposes of subtitle A of title 26 of the United States Code. (2) Casino account number means any and all numbers by which a casino identifies a customer. (3) Customer includes every person which is involved in a transaction to which this part applies with a casino, whether or not that person participates, or intends to participate, in the gaming activities offered by that casino. (4) Gaming day means the normal business day of a casino. For a casino that offers 24 hour gaming, the term means that 24 hour period by which the casino keeps its books and records for business, accounting, and tax purposes. For purposes of the regulations contained in this part, each casino may have only one gaming day, common to all of its divisions. (5) Machine-readable means capable of being read by an automated data processing system. [58 FR 13549, Mar. 12, 1993, as amended at 59 FR 61662, Dec. 1, 1994; 60 FR 33725, June 29, 1995; 67 FR 60730, Sept. 26, 2002]
Title 31: Money and Finance: Treasury
PART 103—FINANCIAL RECORDKEEPING AND REPORTING OF CURRENCY AND FOREIGN TRANSACTIONS
Subpart E—General Provisions
§ 103.51 Dollars as including foreign currency.
§ 103.52 Photographic or other reproductions of Government obligations.
§ 103.53 Availability of information.
§ 103.54 Disclosure.
§ 103.55 Exceptions, exemptions, and reports.
§ 103.56 Enforcement.
§ 103.57 Civil penalty.
§ 103.58 Forfeiture of currency or monetary instruments.
§ 103.59 Criminal penalty.
§ 103.60 Enforcement authority with respect to transportation of currency or monetary instruments.
§ 103.61 Access to records.
§ 103.62 Rewards for informants.
§ 103.63 Structured transactions.
§ 103.64 Special rules for casinos.
