-CITE- 31 USC CHAPTER 53 - MONETARY TRANSACTIONS 01/03/2007 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE IV - MONEY CHAPTER 53 - MONETARY TRANSACTIONS -HEAD- CHAPTER 53 - MONETARY TRANSACTIONS -MISC1- SUBCHAPTER I - CREDIT AND MONETARY EXPANSION Sec. 5301. Buying obligations of the United States Government. 5302. Stabilizing exchange rates and arrangements. 5303. Reserved coins and currencies of foreign countries. 5304. Regulations. SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS TRANSACTIONS 5311. Declaration of purpose. 5312. Definitions and application. 5313. Reports on domestic coins and currency transactions. 5314. Records and reports on foreign financial agency transactions. 5315. Reports on foreign currency transactions. 5316. Reports on exporting and importing monetary instruments. 5317. Search and forfeiture of monetary instruments. 5318. Compliance, exemptions, and summons authority. 5318A. Special measures for jurisdictions, financial institutions, international transactions, or types of accounts of primary money laundering concern. 5319. Availability of reports. 5320. Injunctions. 5321. Civil penalties. 5322. Criminal penalties. 5323. Rewards for informants. 5324. Structuring transactions to evade reporting requirement prohibited. 5325. Identification required to purchase certain monetary instruments. 5326. Records of certain domestic coin and currency transactions. [5327. Repealed.] 5328. Whistleblower protections. 5329. Staff commentaries. 5330. Registration of money transmitting businesses. 5331. Reports relating to coins and currency received in nonfinancial trade or business. 5332. Bulk cash smuggling into or out of the United States. SUBCHAPTER III - MONEY LAUNDERING AND RELATED FINANCIAL CRIMES 5340. Definitions. PART 1 - NATIONAL MONEY LAUNDERING AND RELATED FINANCIAL CRIMES STRATEGY 5341. National money laundering and related financial crimes strategy. 5342. High-risk money laundering and related financial crime areas. PART 2 - FINANCIAL CRIME-FREE COMMUNITIES SUPPORT PROGRAM 5351. Establishment of financial crime-free communities support program. 5352. Program authorization. 5353. Information collection and dissemination with respect to grant recipients. 5354. Grants for fighting money laundering and related financial crimes. 5355. Authorization of appropriations. SUBCHAPTER IV - PROHIBITION ON FUNDING OF UNLAWFUL INTERNET GAMBLING 5361. Congressional findings and purpose. 5362. Definitions. 5363. Prohibition on acceptance of any financial instrument for unlawful Internet gambling. 5364. Policies and procedures to identify and prevent restricted transactions. 5365. Civil remedies. 5366. Criminal penalties. 5367. Circumventions prohibited. AMENDMENTS 2006 - Pub. L. 109-347, title VIII, Sec. 802(b), Oct. 13, 2006, 120 Stat. 1961, added subchapter IV heading and items 5361 to 5367. 2004 - Pub. L. 108-458, title VI, Sec. 6203(i), Dec. 17, 2004, 118 Stat. 3747, substituted item 5318A for former item 5318A "Special measures for jurisdictions, financial institutions, or international transactions of primary money laundering concern". Pub. L. 108-458, title VI, Sec. 6202(n)(1), (o), Dec. 17, 2004, 118 Stat. 3746, amended Pub. L. 107-56, Sec. 365. See 2001 Amendment note below. 2001 - Pub. L. 107-56, title III, Sec. 365(d), formerly Sec. 365(c), Oct. 26, 2001, 115 Stat. 335, as renumbered and amended by Pub. L. 108-458, title VI, Sec. 6202(n)(1), (o), Dec. 17, 2004, 118 Stat. 3746, added item 5331. Pub. L. 107-56, title III, Secs. 311(b), 371(c), Oct. 26, 2001, 115 Stat. 304, 338, added items 5318A and 5332. 1998 - Pub. L. 105-310, Sec. 2(b), Oct. 30, 1998, 112 Stat. 2948, added subchapter III heading, parts 1 and 2 headings, and items 5340 to 5355. 1996 - Pub. L. 104-208, div. A, title II, Sec. 2223(2), Sept. 30, 1996, 110 Stat. 3009-415, struck out item 5327 "Identification of financial institutions". 1994 - Pub. L. 103-325, title III, Sec. 311(b), title IV, Sec. 408(d), Sept. 23, 1994, 108 Stat. 2221, 2252, added items 5329 and 5330. 1992 - Pub. L. 102-550, title XV, Secs. 1511(c), 1563(b), Oct. 28, 1992, 106 Stat. 4057, 4073, added items 5327 and 5328. 1988 - Pub. L. 100-690, title VI, Sec. 6185(f), Nov. 18, 1988, 102 Stat. 4357, added items 5325 and 5326. 1986 - Pub. L. 99-570, title I, Secs. 1354(b), 1356(d), Oct. 27, 1986, 100 Stat. 3207-22, 3207-25, substituted "Compliance, exemptions, and summons authority" for "Compliance and exemptions" in item 5318 and added item 5324. 1984 - Pub. L. 98-473, title II, Sec. 901(f), Oct. 12, 1984, 98 Stat. 2136, added item 5323. -End- -CITE- 31 USC SUBCHAPTER I - CREDIT AND MONETARY EXPANSION 01/03/2007 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE IV - MONEY CHAPTER 53 - MONETARY TRANSACTIONS SUBCHAPTER I - CREDIT AND MONETARY EXPANSION -HEAD- SUBCHAPTER I - CREDIT AND MONETARY EXPANSION -End- -CITE- 31 USC Sec. 5301 01/03/2007 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE IV - MONEY CHAPTER 53 - MONETARY TRANSACTIONS SUBCHAPTER I - CREDIT AND MONETARY EXPANSION -HEAD- Sec. 5301. Buying obligations of the United States Government -STATUTE- (a) The President may direct the Secretary of the Treasury to make an agreement with the Federal reserve banks and the Board of Governors of the Federal Reserve System when the President decides that the foreign commerce of the United States is affected adversely because - (1) the value of coins and currency of a foreign country compared to the present standard value of gold is depreciating; (2) action is necessary to regulate and maintain the parity of United States coins and currency; (3) an economic emergency requires an expansion of credit; or (4) an expansion of credit is necessary so that the United States Government and the governments of other countries can stabilize the value of coins and currencies of a country. (b) Under an agreement under subsection (a) of this section, the Board shall permit the banks (and the Board is authorized to permit the banks notwithstanding another law) to agree that the banks will - (1) conduct through each entire specified period open market operations in obligations of the United States Government or corporations in which the Government is the majority stockholder; and (2) buy directly and hold an additional $3,000,000,000 of obligations of the Government for each agreed period, unless the Secretary consents to the sale of the obligations before the end of the period. (c) With the approval of the Secretary, the Board may require Federal reserve banks to take action the Secretary and Board consider necessary to prevent unreasonable credit expansion. -SOURCE- (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 993.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 5301(a), 31:821(less May 12, 1933, ch. 25, Sec. (b) (a)(last sentence)). 43(less (b)(1)(last sentence)), 48 Stat. 51; Jan. 30, 1934, ch. 6, Sec. 12, 48 Stat. 342; Jan. 23, 1937, ch. 5, Sec. 2, 50 Stat. 4; July 6, 1939, ch. 260, Sec. 3, 53 Stat. 998; June 30, 1941, ch. 265, Sec. 2, 55 Stat. 396; June 12, 1945, ch. 186, Sec. 4, 59 Stat. 238; Mar. 18, 1968, Pub. L. 90-269, Sec. 9, 82 Stat. 50. 5301(c) 31:821(a)(last sentence). -------------------------------------------------------------------- In subsection (a), before clause (1), the text of 31:821(b)(matter before (1)) is omitted as obsolete because clause (1) is omitted as executed, and clause (2) is omitted as expired. The text of 31:821(b)(matter after (2)) is omitted as obsolete because silver is no longer coined. The words "in his discretion" and "several" are omitted as surplus. The words "Board of Governors of the Federal Reserve System" are substituted for "Federal Reserve Board" because of 12:241. The words "upon investigation" are omitted as surplus. In clause (1), the word "foreign" is substituted for "of any other government or governments" to eliminate unnecessary words. The words "coins and" are added for consistency. In clause (2), the words "United States coins and currency" are substituted for "currency issues of the United States" for consistency. In clause (4), the words "so that the United States Government and the governments of other countries can stabilize" are substituted for "to secure by international agreement a stabilization" for clarity. The words "at proper levels" are omitted as surplus. In subsection (b), before clause (1), the words "(and the Board is authorized to permit the banks notwithstanding another law)" are substituted for "notwithstanding any provisions of law or rules and regulations to the contrary" for clarity. In clause (1), the words "pursuant to existing law" are omitted as surplus. The words "through each entire" are substituted for "throughout" for clarity. In clause (2), the words "in portfolio", "or periods of time Treasury bills or other" and "in an aggregate sum of" are omitted as surplus. SHORT TITLE OF 2006 AMENDMENT Pub. L. 109-347, title VIII, Sec. 801, Oct. 13, 2006, 120 Stat. 1952, provided that: "This title [enacting sections 5361 to 5367 of this title and provisions set out as a note under section 5361 of this title] may be cited as the 'Unlawful Internet Gambling Enforcement Act of 2006'." SHORT TITLE OF 2004 AMENDMENT Pub. L. 108-458, title VI, Sec. 6201, Dec. 17, 2004, 118 Stat. 3745, provided that: "This subtitle [subtitle C (Secs. 6201-6205) of title VI of Pub. L. 108-458, amending sections 310, 5312, 5318, 5318A, 5324, and 5332 of this title, sections 1828, 1829b, and 1953 of Title 12, Banks and Banking, section 1681v of Title 15, Commerce and Trade, and section 262p-4r of Title 22, Foreign Relations and Intercourse, enacting provisions set out as a note under section 1828 of Title 12, amending provisions set out as notes under sections 310, 5311, and 5331 of this title and sections 1828 and 1842 of Title 12, and repealing provisions set out as a note under section 5311 of this title] may be cited as the 'International Money Laundering Abatement and Financial Antiterrorism Technical Corrections Act of 2004'." SHORT TITLE OF 2001 AMENDMENT Pub. L. 107-56, title III, Sec. 301, Oct. 26, 2001, 115 Stat. 296, provided that: "This title [enacting sections 310, 5318A, 5331, and 5332 of this title, section 1681v of Title 15, Commerce and Trade, and section 262p-4r of Title 22, Foreign Relations and Intercourse, amending sections 5311, 5312, 5317, 5318, 5319, 5321, 5322, 5324, 5326, 5328, 5330, and 5341 of this title, sections 248, 1828, 1829b, 1842, 1953, 3412, 3414, and 3420 of Title 12, Banks and Banking, section 1681u of Title 15, sections 470 to 474, 476 to 484, 493, 981 to 983, 1029, 1956, and 1960 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, renumbering former section 310 of this title as section 311, and enacting provisions set out as notes under sections 310, 5311, 5313, 5314, 5318, 5331, and 5332 of this title, sections 1828, 1829b, and 1842 of Title 12, and section 983 of Title 18] may be cited as the 'International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001'." SHORT TITLE OF 1998 AMENDMENT Pub. L. 105-310, Sec. 1, Oct. 30, 1998, 112 Stat. 2941, provided that: "This Act [enacting subchapter III of this chapter and provisions set out as a note under section 5342 of this title] may be cited as the 'Money Laundering and Financial Crimes Strategy Act of 1998'." SHORT TITLE OF 1994 AMENDMENT Pub. L. 103-325, title IV, Sec. 401, Sept. 23, 1994, 108 Stat. 2243, provided that: "This title [enacting section 5330 of this title, amending sections 5312, 5313, 5318, 5321, 5322, and 5324 of this title, sections 93, 1464, 1772d, 1786, 1818, and 1821 of Title 12, Banks and Banking, and sections 984, 986, 1956, 1957, and 1960 of Title 18, Crimes and Criminal Procedure, and enacting provisions set out as notes under sections 5311, 5313, 5318, and 5330 of this title] may be cited as the 'Money Laundering Suppression Act of 1994'." -End- -CITE- 31 USC Sec. 5302 01/03/2007 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE IV - MONEY CHAPTER 53 - MONETARY TRANSACTIONS SUBCHAPTER I - CREDIT AND MONETARY EXPANSION -HEAD- Sec. 5302. Stabilizing exchange rates and arrangements -STATUTE- (a)(1) The Department of the Treasury has a stabilization fund. The fund is available to carry out this section, section 18 of the Bretton Woods Agreement Act (22 U.S.C. 286e-3), and section 3 of the Special Drawing Rights Act (22 U.S.C. 286o), and for investing in obligations of the United States Government those amounts in the fund the Secretary of the Treasury, with the approval of the President, decides are not required at the time to carry out this section. Proceeds of sales and investments, earnings, and interest shall be paid into the fund and are available to carry out this section. However, the fund is not available to pay administrative expenses. (2) Subject to approval by the President, the fund is under the exclusive control of the Secretary, and may not be used in a way that direct control and custody pass from the President and the Secretary. Decisions of the Secretary are final and may not be reviewed by another officer or employee of the Government. (b) Consistent with the obligations of the Government in the International Monetary Fund on orderly exchange arrangements and a stable system of exchange rates, the Secretary or an agency designated by the Secretary, with the approval of the President, may deal in gold, foreign exchange, and other instruments of credit and securities the Secretary considers necessary. However, a loan or credit to a foreign entity or government of a foreign country may be made for more than 6 months in any 12-month period only if the President gives Congress a written statement that unique or emergency circumstances require the loan or credit be for more than 6 months. (c)(1) By the 30th day after the end of each month, the Secretary shall give 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 a detailed financial statement on the stabilization fund showing all agreements made or renewed, all transactions occurring during the month, and all projected liabilities. (2) The Secretary shall report each year to the President and Congress on the operation of the fund. (d) A repayment of any part of the first subscription payment of the Government to the International Monetary Fund, previously paid from the stabilization fund, shall be deposited in the Treasury as a miscellaneous receipt. -SOURCE- (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 994.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 5302(a) 31:822a(b)(1). Jan. 30, 1934, ch. 6, Sec. 10(a), (b)(1), (c), 48 Stat. 341, 342; Jan. 23, 1937, ch. 5, Sec. 1, 50 Stat. 4; July 6, 1939, ch. 260, Secs. 1, 2, 53 Stat. 998; June 30, 1941, ch. 265, Sec. 1, 55 Stat. 395; Apr. 29, 1943, ch. 76, 57 Stat. 68; July 31, 1945, ch. 339, Sec. 7(a), 59 Stat. 514; Dec. 30, 1970, Pub. L. 91-599, Secs. 41, 42, 84 Stat. 1659; Oct. 19, 1976, Pub. L. 94-564, Sec. 7, 90 Stat. 2661; Oct. 28, 1977, Pub. L. 95-147, Sec. 4(b), 91 Stat. 1229; Nov. 8, 1978, Pub. L. 95-612, Secs. 1, 6, 92 Stat. 3091, 3092. 5302(b) 31:822a(a)(1st sentence). 5302(c)( 31:822a(b)(2). Jan. 30, 1934, ch. 6, 48 Stat. 1) 337, Sec. 10(b)(2); added Nov. 8, 1978, Pub. L. 95-612, Sec. 6, 92 Stat. 3092. 5302(c)( 31:822a(a)(last 2) sentence). 5302(d) 31:822a(c). -------------------------------------------------------------------- In subsection (a)(1), the words "The Department of the Treasury has a stabilization fund" are substituted for "there is appropriated, out of the receipts which are directed to be covered into the Treasury under section 408b of this title, the sum of $2,000,000,000, which sum when available shall be deposited in the United States Treasury in a stabilization fund" because the fund has been established. The words "(hereinafter called the 'fund')" are omitted as unnecessary because of the restatement. The words "To enable the Secretary of the Treasury" and "The fund shall be available for expenditure, under the direction of the Secretary of the Treasury and in his discretion, for any purpose in connection with carrying out the provisions of this section" are omitted as surplus. The words "section 18 of the Bretton Woods Agreement Act (22 U.S.C. 286e-3), and section 3 of the Special Drawing Rights Act (22 U.S.C. 286o)" are added for clarity. The words "and reinvestment" and "direct" are omitted as surplus. The word "Government" is added for consistency. The words "accruing under the operations of this section" are omitted as surplus. The words "to carry out this section" after "are available" are substituted for "for the purposes of the fund" for consistency. In subsection (b), the words "directly . . . through" and "for the account of the fund established in this section" are omitted as surplus. The words "government of a foreign country" are substituted for "foreign government" for consistency in the revised title and with other titles of the United States Code. The words "by or through such fund" are omitted as surplus. In subsection (c)(1), the word "calendar" is omitted as surplus. The words "beginning after the effective date of this paragraph" are omitted as executed. The words "to occur" are omitted as surplus. In subsection (d), the words "any part of the first subscription payment of the Government to the International Monetary Fund, previously paid from the stabilization fund" are substituted for 31:822a(c)(words before semicolon) and "thereof" for clarity because the payment has been made. -CHANGE- CHANGE OF NAME Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104-14, set out as a note preceding section 21 of Title 2, The Congress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Representatives, and jurisdiction over matters relating to securities and exchanges and insurance generally transferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. -MISC2- MEXICAN DEBT DISCLOSURE Pub. L. 104-6, title IV, Apr. 10, 1995, 109 Stat. 89, provided that: "SEC. 401. SHORT TITLE. "This title may be cited as the 'Mexican Debt Disclosure Act of 1995'. "SEC. 402. FINDINGS. "The Congress finds that - "(1) Mexico is an important neighbor and trading partner of the United States; "(2) on January 31, 1995, the President approved a program of assistance to Mexico, in the form of swap facilities and securities guarantees in the amount of $20,000,000,000, using the exchange stabilization fund; "(3) the program of assistance involves the participation of the Board of Governors of the Federal Reserve System, the International Monetary Fund, the Bank for International Settlements, the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Bank of Canada, and several Latin American countries; "(4) the involvement of the exchange stabilization fund and the Board of Governors of the Federal Reserve System means that United States taxpayer funds will be used in the assistance effort to Mexico; "(5) assistance provided by the International Monetary Fund, the International Bank for Reconstruction and Development, and the Inter-American Development Bank may require additional United States contributions of taxpayer funds to those entities; "(6) the immediate use of taxpayer funds and the potential requirement for additional future United States contributions of taxpayer funds necessitates congressional oversight of the disbursement of funds; and "(7) the efficacy of the assistance to Mexico is contingent on the pursuit of sound economic policy by the Government of Mexico. "SEC. 403. PRESIDENTIAL REPORTS. "(a) Reporting Requirement. - Not later than June 30, 1995, and every 6 months thereafter, the President shall transmit to the appropriate congressional committees a report concerning all guarantees issued to, and short-term and long-term currency swaps with, the Government of Mexico by the United States Government, including the Board of Governors of the Federal Reserve System. "(b) Contents of Reports. - Each report described in subsection (a) shall contain a description of the following actions taken, or economic situations existing, during the preceding 6-month period or, in the case of the initial report, during the period beginning on the date of enactment of this Act [Apr. 10, 1995]: "(1) Changes in wage, price, and credit controls in the Mexican economy. "(2) Changes in taxation policy of the Government of Mexico. "(3) Specific actions taken by the Government of Mexico to further privatize the economy of Mexico. "(4) Actions taken by the Government of Mexico in the development of regulatory policy that significantly affected the performance of the Mexican economy. "(5) Consultations concerning the program approved by the President, including advice on economic, monetary, and fiscal policy, held between the Government of Mexico and the Secretary of the Treasury (including any designee of the Secretary) and the conclusions resulting from any periodic reviews undertaken by the International Monetary Fund pursuant to the Fund's loan agreements with Mexico. "(6) All outstanding loans, credits, and guarantees provided to the Government of Mexico, by the United States Government, including the Board of Governors of the Federal Reserve System, set forth by category of financing. "(7) The progress the Government of Mexico has made in stabilizing the peso and establishing an independent central bank or currency board. "(c) Summary of Treasury Department Reports. - In addition to the information required to be included under subsection (b), each report required under this section shall contain a summary of the information contained in all reports submitted under section 404 during the period covered by the report required under this section. "SEC. 404. REPORTS BY THE SECRETARY OF THE TREASURY. "(a) Reporting Requirement. - Beginning on the last day of the first month which begins after the date of enactment of this Act [Apr. 10, 1995], and on the last day of every month thereafter, the Secretary of the Treasury shall submit to the appropriate congressional committees a report concerning all guarantees issued to, and short-term and long-term currency swaps with, the Government of Mexico by the United States Government, including the Board of Governors of the Federal Reserve System. "(b) Contents of Reports. - Each report described in subsection (a) shall include a description of the following actions taken, or economic situations existing, during the month in which the report is required to be submitted: "(1) The current condition of the Mexican economy. "(2) The reserve positions of the central bank of Mexico and data relating to the functioning of Mexican monetary policy. "(3) The amount of any funds disbursed from the exchange stabilization fund pursuant to the program of assistance to the Government of Mexico approved by the President on January 31, 1995. "(4) The amount of any funds disbursed by the Board of Governors of the Federal Reserve System pursuant to the program of assistance referred to in paragraph (3). "(5) Financial transactions, both inside and outside of Mexico, made during the reporting period involving funds disbursed to Mexico from the exchange stabilization fund or proceeds of Mexican Government securities guaranteed by the exchange stabilization fund. "(6) All outstanding guarantees issued to, and short-term and medium-term currency swaps with, the Government of Mexico by the Secretary of the Treasury, set forth by category of financing. "(7) All outstanding currency swaps with the central bank of Mexico by the Board of Governors of the Federal Reserve System and the rationale for, and any expected costs of, such transactions. "(8) The amount of payments made by customers of Mexican petroleum companies that have been deposited in the account at the Federal Reserve Bank of New York established to ensure repayment of any payment by the United States Government, including the Board of Governors of the Federal Reserve System, in connection with any guarantee issued to, or any swap with, the Government of Mexico. "(9) Any setoff by the Federal Reserve Bank of New York against funds in the account described in paragraph (8). "(10) To the extent such information is available, once there has been a setoff by the Federal Reserve Bank of New York, any interruption in deliveries of petroleum products to existing customers whose payments were setoff. "(11) The interest rates and fees charged to compensate the Secretary of the Treasury for the risk of providing financing. "SEC. 405. TERMINATION OF REPORTING REQUIREMENTS. "The requirements of sections 403 and 404 shall terminate on the date that the Government of Mexico has paid all obligations with respect to swap facilities and guarantees of securities made available under the program approved by the President on January 31, 1995. "SEC. 406. PRESIDENTIAL CERTIFICATION REGARDING SWAP OF CURRENCIES TO MEXICO THROUGH EXCHANGE STABILIZATION FUND OR FEDERAL RESERVE. "(a) In General. - Notwithstanding any other provision of law, no loan, credit, guarantee, or arrangement for a swap of currencies to Mexico through the exchange stabilization fund or by the Board of Governors of the Federal Reserve System may be extended or (if already extended) further utilized, unless and until the President submits to the appropriate congressional committees a certification that - "(1) there is no projected cost (as defined in the Credit Reform Act of 1990 [probably means the Federal Credit Reform Act of 1990, 2 U.S.C. 661 et seq.]) to the United States from the proposed loan, credit, guarantee, or currency swap; "(2) all loans, credits, guarantees, and currency swaps are adequately backed to ensure that all United States funds are repaid; "(3) the Government of Mexico is making progress in ensuring an independent central bank or an independent currency control mechanism; "(4) Mexico has in effect a significant economic reform effort; and "(5) the President has provided the documents described in paragraphs (1) through (28) of House Resolution 80, adopted March 1, 1995. "(b) Treatment of Classified or Privileged Material. - For purposes of the certification required by subsection (a)(5), the President shall specify, in the case of any document that is classified or subject to applicable privileges, that, while such document may not have been produced to the House of Representatives, in lieu thereof it has been produced to specified Members of Congress or their designees by mutual agreement among the President, the Speaker of the House, and the chairmen and ranking members of the Committee on Banking and Financial Services [now Committee on Financial Services], the Committee on International Relations, and the Permanent Select Committee on Intelligence of the House. "SEC. 407. DEFINITIONS. "For purposes of this title, the following definitions shall apply: "(1) Appropriate congressional committees. - The term 'appropriate congressional committees' means the Committees on International Relations and Banking and Financial Services [now Committee on Financial Services] of the House of Representatives, the Committees on Foreign Relations and Banking, Housing, and Urban Affairs of the Senate, and the Committees on Appropriations of the House of Representatives and the Senate. "(2) Exchange stabilization fund. - The term 'exchange stabilization fund' means the stabilization fund referred to in section 5302(a)(1) of title 31, United States Code." -EXEC- CERTIFICATION REGARDING USE OF EXCHANGE STABILIZATION FUND AND FEDERAL RESERVE IN RELATION TO ECONOMIC CRISIS IN MEXICO Memorandum of President of the United States, June 29, 1995, 60 F.R. 35113, provided: Memorandum for the Secretary of the Treasury On January 31, 1995, I approved a program of assistance to Mexico, in the form of swap facilities and securities guarantees in an amount not to exceed $20 billion, using the Exchange Stabilization Fund (the "ESF program"). By virtue of the authority vested in me by the Constitution and the laws of the United States, including section 301 of title 3, United States Code, and section 406 of the Emergency Supplemental Appropriations and Rescissions for the Department of Defense to Preserve and Enhance Military Readiness Act of 1995 (Public Law 104- 6) [set out above], I hereby certify that: (1) There is no projected cost (as defined in the Federal Credit Reform Act of 1990 [2 U.S.C. 661 et seq.]) to the United States from the proposed swap transaction. (2) All loans, credits, guarantees, and currency swaps to Mexico from the Exchange Stabilization Fund or the Federal Reserve System are adequately backed to ensure that all United States funds are repaid. (3) The Government of Mexico is making progress in ensuring an independent central bank. (4) Mexico has in effect a significant economic reform effort. (5) The Executive Branch has provided the documents requested by House Resolution 80 adopted March 1, 1995, and described in paragraphs (1) through (28) of that Resolution. All documents identified as responsive to the Resolution have been provided to the entire House of Representatives. Pursuant to the terms of the Resolution, the Executive Branch has not provided those documents as to which the Executive Branch has informed the House that it would be inconsistent with the public interest to provide the documents to the House. Pursuant to arrangements for safekeeping of classified materials in House facilities, classified documents have been provided to the House by making them available either at designated, secure House facilities or at Executive Branch facilities. Each agency, including the Federal Reserve Board, has advised the House of the procedures employed by that agency to provide the documents requested by House Resolution 80. I have been informed that the Board of Governors of the Federal Reserve System has provided the documents requested by House Resolution 80 and described in paragraphs (1) through (28) of that Resolution. I hereby delegate to you the reporting requirement contained in section 406 of Public Law 104-6 [set out above]. You are authorized and requested to report this certification immediately to the Speaker of the House and appropriate congressional committees, as defined in section 407 of Public Law 104-6 [set out above]. I also hereby delegate to you the reporting requirement contained in section 403 of Public Law 104-6 [set out above]. You are authorized and directed to publish this memorandum in the Federal Register. William J. Clinton. Prior certifications were contained in the following: Memorandum of President of the United States, May 17, 1995, 60 F.R. 27395. Memorandum of President of the United States, Apr. 14, 1995, 60 F.R. 19485. -End- -CITE- 31 USC Sec. 5303 01/03/2007 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE IV - MONEY CHAPTER 53 - MONETARY TRANSACTIONS SUBCHAPTER I - CREDIT AND MONETARY EXPANSION -HEAD- Sec. 5303. Reserved coins and currencies of foreign countries -STATUTE- An agency may use coins and currencies of a foreign country the United States Government holds that are or may be reserved for a specific program or activity of an agency. The agency shall reimburse the Treasury from appropriations and shall replace the coins and currencies when they are needed for the program or activity for which they were reserved originally. -SOURCE- (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 994.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 5303 31:938. Oct. 15, 1966, Pub. L. 89-677, 80 Stat. 955. -------------------------------------------------------------------- The word "Federal" is omitted as unnecessary because of the definition of "agency" in section 101 of the revised title. The words "coins and" and "Government" are added for consistency. The words "or set aside" and "of the Government" are omitted as surplus. The words "The agency shall reimburse . . . shall replace" are substituted for "except (1) that reimbursement shall be made . . . (2) . . . shall be replaced" for clarity. The words "applicable . . . of the agency concerned" are omitted as surplus. The words "program or activity" are substituted for "purpose" for clarity and consistency. -End- -CITE- 31 USC Sec. 5304 01/03/2007 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE IV - MONEY CHAPTER 53 - MONETARY TRANSACTIONS SUBCHAPTER I - CREDIT AND MONETARY EXPANSION -HEAD- Sec. 5304. Regulations -STATUTE- With the approval of the President, the Secretary of the Treasury may prescribe regulations - (1) to carry out section 5301 of this title; and (2) the Secretary considers necessary to carry out section 5302 of this title. -SOURCE- (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 994.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 5304 31:822. May 12, 1933, ch. 25, Sec. 44, 48 Stat. 53. 31:822b. Jan. 30, 1934, ch. 6, Sec. 11, 48 Stat. 342. -------------------------------------------------------------------- Before clause (1), the words "prescribe regulations" are substituted for "make and promulgate rules and regulations" in 31:822 and "issue . . . such rules and regulations" in 31:822b for consistency. In clause (1), the words "to carry out" are substituted for "covering any action taken or to be taken by the President under" in 31:822 to eliminate unnecessary words. In clause (2), the words "or proper" in 31:822b and "the purposes of" are omitted as surplus. Reference to 31:821 is omitted as obsolete because silver is no longer coined. Reference to 31:824 is omitted as obsolete because 31:824 is executed and is not part of the revised title. -End- -CITE- 31 USC SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS TRANSACTIONS 01/03/2007 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE IV - MONEY CHAPTER 53 - MONETARY TRANSACTIONS SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS TRANSACTIONS -HEAD- SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS TRANSACTIONS -End- -CITE- 31 USC Sec. 5311 01/03/2007 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE IV - MONEY CHAPTER 53 - MONETARY TRANSACTIONS SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS TRANSACTIONS -HEAD- Sec. 5311. Declaration of purpose -STATUTE- 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. -SOURCE- (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.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 5311 31:1051. Oct. 26, 1970, Pub. L. 91-508, Sec. 202, 84 Stat. 1118. -------------------------------------------------------------------- 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 important 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 organizations 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 'Secretary') 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. -End- -CITE- 31 USC Sec. 5312 01/03/2007 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE IV - MONEY CHAPTER 53 - MONETARY TRANSACTIONS SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS TRANSACTIONS -HEAD- Sec. 5312. Definitions and application -STATUTE- (a) In this subchapter - (1) "financial agency" means a person acting for a person (except for a country, a monetary or financial authority acting as a monetary or financial authority, or an international financial institution of which the United States Government is a member) as a financial institution, bailee, depository trustee, or agent, or acting in a similar way related to money, credit, securities, gold, or a transaction in money, credit, securities, or gold. (2) "financial institution" means - (A) an insured bank (as defined in section 3(h) of the Federal Deposit Insurance Act (12 U.S.C. 1813(h))); (B) a commercial bank or trust company; (C) a private banker; (D) an agency or branch of a foreign bank in the United States; (E) any credit union; (F) a thrift institution; (G) a broker or dealer registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (H) a broker or dealer in securities or commodities; (I) an investment banker or investment company; (J) a currency exchange; (K) an issuer, redeemer, or cashier of travelers' checks, checks, money orders, or similar instruments; (L) an operator of a credit card system; (M) an insurance company; (N) a dealer in precious metals, stones, or jewels; (O) a pawnbroker; (P) a loan or finance company; (Q) a travel agency; (R) a licensed sender of money or any other person who 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; (S) a telegraph company; (T) a business engaged in vehicle sales, including automobile, airplane, and boat sales; (U) persons involved in real estate closings and settlements; (V) the United States Postal Service; (W) an agency of the United States Government or of a State or local government carrying out a duty or power of a business described in this paragraph; (X) a casino, gambling casino, or gaming establishment with an annual gaming revenue of more than $1,000,000 which - (i) is licensed as a casino, gambling casino, or gaming establishment under the laws of any State or any political subdivision of any State; or (ii) is an Indian gaming operation conducted under or pursuant to the Indian Gaming Regulatory Act other than an operation which is limited to class I gaming (as defined in section 4(6) of such Act); (Y) any business or agency which engages in any activity which the Secretary of the Treasury determines, by regulation, to be an activity which is similar to, related to, or a substitute for any activity in which any business described in this paragraph is authorized to engage; or (Z) any other business designated by the Secretary whose cash transactions have a high degree of usefulness in criminal, tax, or regulatory matters. (3) "monetary instruments" means - (A) United States coins and currency; (B) as the Secretary may prescribe by regulation, coins and currency of a foreign country, travelers' checks, bearer negotiable instruments, bearer investment securities, bearer securities, stock on which title is passed on delivery, and similar material; and (C) as the Secretary of the Treasury shall provide by regulation for purposes of sections 5316 and 5331, checks, drafts, notes, money orders, and other similar instruments which are drawn on or by a foreign financial institution and are not in bearer form. (4) Nonfinancial trade or business. - The term "nonfinancial trade or business" means any trade or business other than a financial institution that is subject to the reporting requirements of section 5313 and regulations prescribed under such section. (5) "person", in addition to its meaning under section 1 of title 1, includes a trustee, a representative of an estate and, when the Secretary prescribes, a governmental entity. (6) "United States" means the States of the United States, the District of Columbia, and, when the Secretary prescribes by regulation, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, American Samoa, the Trust Territory of the Pacific Islands, a territory or possession of the United States, or a military or diplomatic establishment. (b) In this subchapter - (1) "domestic financial agency" and "domestic financial institution" apply to an action in the United States of a financial agency or institution. (2) "foreign financial agency" and "foreign financial institution" apply to an action outside the United States of a financial agency or institution. (c) Additional Definitions. - For purposes of this subchapter, the following definitions shall apply: (1) (!1) Certain institutions included in definition. - The term "financial institution" (as defined in subsection (a)) includes the following: (A) (!2) Any futures commission merchant, commodity trading advisor, or commodity pool operator registered, or required to register, under the Commodity Exchange Act. -SOURCE- (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 995; Pub. L. 99-570, title I, Sec. 1362, Oct. 27, 1986, 100 Stat. 3207-33; Pub. L. 100- 690, title VI, Sec. 6185(a), (g)(1), Nov. 18, 1988, 102 Stat. 4354, 4357; Pub. L. 103-325, title IV, Secs. 405, 409, Sept. 23, 1994, 108 Stat. 2247, 2252; Pub. L. 107-56, title III, Secs. 321(a), (b), 359(a), 365(c)(1), (2)(A), Oct. 26, 2001, 115 Stat. 315, 328, 335; Pub. L. 108-458, title VI, Secs. 6202(g), 6203(b), Dec. 17, 2004, 118 Stat. 3746.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 5312(a)( 31:1052(a), (b), Oct. 26, 1970, Pub. L. 91-508, 1) (g), (i). Sec. 203(a)-(i), (l), 84 Stat. 1118. 5312(a)( 31:1052(e). 2) 5312(a)( 31:1052(l). 3) 5312(a)( 31:1052(c). 4) 5312(a)( 31:1052(d). 5) 5312(b) 31:1052(f), (h). -------------------------------------------------------------------- In subsection (a)(1), the text of 31:1052(a) is omitted as unnecessary. The text of 31:1052(b) is omitted because of the restatement. The text of 31:1052(i) is omitted as unnecessary because the source provision is restated where necessary in the revised subchapter. In subsection (a)(2), (3), (4), and (5), the words "the Secretary . . . prescribes" are substituted for "specified by the Secretary by regulation", "as the Secretary may by regulation specify", "specified by the Secretary", and "the Secretary shall by regulation specify" for consistency. In subsection (a)(2) and (3), the words "for the purposes of the provision of this chapter to which the regulation relates" are omitted as surplus. In subsection (a)(2), before subclause (A), the words "any person which does business in any one or more of the following capacities" are omitted as surplus. In subclause (F), the words "savings bank, building and loan association, credit union, industrial bank, or other" are omitted as surplus. In subclause (T), the words "agency of the United States Government or of a State or local government" are substituted for "Federal, State, or local government institution" for consistency. In subclause (U), the words "type of" are omitted as surplus. The word "agency" is substituted for "institution" for consistency. In subsection (a)(3)(B)-(5), the word "prescribe" is substituted for "specify" for consistency in the revised title and with other titles of the United States Code. In subsection (a)(3)(B), the words "in addition", and "and such types of" are omitted as surplus. The words "similar material" are substituted for "the equivalent thereof" for clarity. In subsection (a)(4), the words "in addition to its meaning under section 1 of title 1" are substituted for "natural persons, partnerships, . . . associations, corporations, and all entities cognizable as legal personalities" for consistency because 1:1 is applicable to all laws unless otherwise provided. The words "a trustee, a representative of an estate" are substituted for "trusts, estates", and the word "entity" is substituted for "department or agency", for consistency. The words "either for the purpose of this chapter generally or any particular requirement thereunder" are omitted as surplus. In subsection (a)(5), the words "used in a geographic sense" are omitted because of the restatement. The words "either for the purposes of this chapter generally or any particular requirement thereunder" are omitted as surplus. The words "territory or" are added for consistency. Subsection (b) is substituted for 31:1052(f) and (h) to eliminate unnecessary words and for consistency. -REFTEXT- REFERENCES IN TEXT The Securities Exchange Act of 1934, referred to in subsec. (a)(2)(G), is act June 6, 1934, ch. 404, 48 Stat. 881, as amended, which is classified principally to chapter 2B (Sec. 78a et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 78a of Title 15 and Tables. The Indian Gaming Regulatory Act, referred to in subsec. (a)(2)(X)(ii), is Pub. L. 100-497, Oct. 17, 1988, 102 Stat. 2467, as amended, which is classified principally to chapter 29 (Sec. 2701 et seq.) of Title 25, Indians. Section 4(6) of the Act is classified to section 2703(6) of Title 25. For complete classification of this Act to the Code, see Short Title note set out under section 2701 of this title and Tables. The Commodity Exchange Act, referred to in subsec. (c)(1)(A), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as amended, which is classified generally to chapter 1 (Sec. 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables. -MISC2- AMENDMENTS 2004 - Subsec. (a)(2)(E). Pub. L. 108-458, Sec. 6202(g), made technical correction to directory language of Pub. L. 107-56, Sec. 321(a). See 2001 Amendment note below. Subsec. (a)(3)(C). Pub. L. 108-458, Sec. 6203(b), substituted "sections 5316 and 5331" for "sections 5333 and 5316". 2001 - Subsec. (a)(2)(E). Pub. L. 107-56, Sec. 321(a), as amended by Pub. L. 108-458, Sec. 6202(g), amended subpar. (E) generally. Prior to amendment, subpar. (E) read as follows: "an insured institution (as defined in section 401(a) of the National Housing Act (12 U.S.C. 1724(a)));". Subsec. (a)(2)(R). Pub. L. 107-56, Sec. 359(a), amended subpar. (R) generally. Prior to amendment, subpar. (R) read as follows: "a licensed sender of money;". Subsec. (a)(3)(C). Pub. L. 107-56, Sec. 365(c)(2)(A), substituted "sections 5333 and 5316," for "section 5316,". Subsec. (a)(4) to (6). Pub. L. 107-56, Sec. 365(c)(1), added par. (4) and redesignated former pars. (4) and (5) as (5) and (6), respectively. Subsec. (c). Pub. L. 107-56, Sec. 321(b), added subsec. (c). 1994 - Subsec. (a)(2)(X) to (Z). Pub. L. 103-325, Sec. 409, added subpar. (X) and redesignated former subpars. (X) and (Y) as (Y) and (Z), respectively. Subsec. (a)(3)(C). Pub. L. 103-325, Sec. 405, added subpar. (C). 1988 - Subsec. (a)(2)(T) to (Y). Pub. L. 100-690, Sec. 6185(a), added subpars. (T) to (Y) and struck out former subpars. (T) and (U) which read as follows: "(T) an agency of the United States Government or of a State or local government carrying out a duty or power of a business described in this clause (2), including the United States Postal Service; or "(U) another business or agency carrying out a similar, related, or substitute duty or power the Secretary of the Treasury prescribes." Subsec. (a)(5). Pub. L. 100-690, Sec. 6185(g)(1), inserted a comma after "Puerto Rico" and struck out second comma after "Pacific Islands". 1986 - Subsec. (a)(2)(T). Pub. L. 99-570, Sec. 1362(a), which directed that the Postal Service be included within United States agencies by amending subsec. (a)(2)(U) of this section by inserting before the semicolon at the end thereof the following ", including the United States Postal Service", was executed to subsec. (a)(2)(T) of this section as the probable intent of Congress, because subsec. (a)(2)(U) does not contain a semicolon and subsec. (a)(2)(T) relates to United States agencies. Subsec. (a)(5). Pub. L. 99-570, Sec. 1362(b), inserted "the Virgin Islands, Guam, the Northern Mariana Islands, American Samoa, the Trust Territory of the Pacific Islands," after "Puerto Rico". EFFECTIVE DATE OF 2004 AMENDMENT Amendment by 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. -TRANS- TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions. -FOOTNOTE- (!1) So in original. No par. (2) has been enacted. (!2) So in original. No subpar. (B) has been enacted. -End- -CITE- 31 USC Sec. 5313 01/03/2007 -EXPCITE- TITLE 31 - MONEY AND FINANCE SUBTITLE IV - MONEY CHAPTER 53 - MONETARY TRANSACTIONS SUBCHAPTER II - RECORDS AND REPORTS ON MONETARY INSTRUMENTS TRANSACTIONS -HEAD- Sec. 5313. Reports on domestic coins and currency transactions -STATUTE- (a) When a domestic financial institution is involved in a transaction for the payment, receipt, or transfer of United States coins or currency (or other monetary instruments the Secretary of the Treasury prescribes), in an amount, denomination, or amount and denomination, or under circumstances the Secretary prescribes by regulation, the institution and any other participant in the transaction the Secretary may prescribe shall file a report on the transaction at the time and in the way the Secretary prescribes. A participant acting for another person shall make the report as the agent or bailee of the person and identify the person for whom the transaction is being made. (b) The Secretary may designate a domestic financial institution as an agent of the United States Government to receive a report under this section. However, the Secretary may designate a domestic financial institution that is not insured, chartered, examined, or registered as a domestic financial institution only if the institution consents. The Secretary may suspend or revoke a designation for a violation of this subchapter or a regulation under this subchapter (except a violation of section 5315 of this title or a regulation prescribed under section 5315), section 411 (!1) of the National Housing Act (12 U.S.C. 1730d), or section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b). (c)(1) A person (except a domestic financial institution designated under subsection (b) of this section) required to file a report under this section shall file the report - (A) with the institution involved in the transaction if the institution was designated; (B) in the way the Secretary prescribes when the institution was not designated; or (C) with the Secretary. (2) The Secretary shall prescribe - (A) the filing procedure for a domestic financial institution designated under subsection (b) of this section; and (B) the way the institution shall submit reports filed with it. (d) Mandatory Exemptions From Reporting Requirements. - (1) In general. - The Secretary of the Treasury shall exempt, pursuant to section 5318(a)(6), a depository institution from the reporting requirements of subsection (a) with respect to transactions between the depository institution and the following categories of entities: (A) Another depository institution. (B) A department or agency of the United States, any State, or any political subdivision of any State. (C) Any entity established under the laws of the United States, any State, or any political subdivision of any State, or under an interstate compact between 2 or more States, which exercises governmental authority on behalf of the United States or any such State or political subdivision. (D) Any business or category of business the reports on which have little or no value for law enforcement purposes. (2) Notice of exemption. - The Secretary of the Treasury shall publish in the Federal Register at such times as the Secretary determines to be appropriate (but not less frequently than once each year) a list of all the entities whose transactions with a depository institution are exempt under this subsection from the reporting requirements of subsection (a). (e) Discretionary Exemptions From Reporting Requirements. - (1) In general. - The Secretary of the Treasury may exempt, pursuant to section 5318(a)(6), a depository institution from the reporting requirements of subsection (a) with respect to transactions between the depository institution and a qualified business customer of the institution on the basis of information submitted to the Secretary by the institution in accordance with procedures which the Secretary shall establish. (2) Qualified business customer defined. - For purposes of this subsection, the term "qualified business customer" means a business which - (A) maintains a transaction account (as defined in section 19(b)(1)(C) of the Federal Reserve Act) at the depository institution; (B) frequently engages in transactions with the depository institution which are subject to the reporting requirements of subsection (a); and (C) meets criteria which the Secretary determines are sufficient to ensure that the purposes of this subchapter are carried out without requiring a report with respect to such transactions. (3) Criteria for exemption. - The Secretary of the Treasury shall establish, by regulation, the criteria for granting and maintaining an exemption under paragraph (1). (4) Guidelines. - (A) In general. - The Secretary of the Treasury shall establish guidelines for depository institutions to follow in selecting customers for an exemption under this subsection. (B) Contents. - The guidelines may include a description of the types of businesses or an itemization of specific businesses for which no exemption will be granted under this subsection to any depository institution. (5) Annual review. - The Secretary of the Treasury shall prescribe regulations requiring each depository institution to - (A) review, at least once each year, the qualified business customers of such institution with respect to whom an exemption has been granted under this subsection; and (B) upon the completion of such review, resubmit information about such customers, with such modifications as the institution determines to be appropriate, to the Secretary for the Secretary's approval. (6) 2-year phase-in provision. - During the 2-year period beginning on the date of enactment of the Money Laundering Suppression Act of 1994, this subsection shall be applied by the Secretary on the basis of such criteria as the Secretary determines to be appropriate to achieve an orderly implementation of the requirements of this subsection. (f) Provisions Applicable to Mandatory and Discretionary Exemptions. - (1) Limitation on liability of depository institutions. - No depository institution shall be subject to any penalty which may be imposed under this subchapter for the failure of the institution to file a report with respect to a transaction with a customer for whom an exemption has been granted under subsection (d) or (e) unless the institution - (A) knowingly files false or incomplete information to the Secretary with respect to the transaction or the customer engaging in the transaction; or (B) has reason to believe at the time the exemption is granted or the transaction is entered into that the customer or the transaction does not meet the criteria established for granting such exemption. (2) Coordination with other provisions. - Any exemption granted by the Secretary of the Treasury under section 5318(a) in accordance with this section, and any transaction which is subject to such exemption, shall be subject to any other provision of law applicable to such exemption, including - (A) the authority of the Secretary, under section 5318(a)(6), to revoke such exemption at any time; and (B) any requirement to report, or any authority to require a report on, any possible violation of any law or regulation or any suspected criminal activity. (g) Depository Institution Defined. - For purposes of this section, the term "depository institution" - (1) has the meaning given to such term in section 19(b)(1)(A) of the Federal Reserve Act; and (2) includes - (A) any branch, agency, or commercial lending company (as such terms are defined in section 1(b) of the International Banking Act of 1978); (B) any corporation chartered under section 25A of the Federal Reserve Act; and (C) any corporation having an agreement or undertaking with the Board of Governors of the Federal Reserve System under section 25 of the Federal Reserve Act. -SOURCE- (Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 996; Pub. L. 103-325, title IV, Sec. 402(a), Sept. 23, 1994, 108 Stat. 2243.) -MISC1- HISTORICAL AND REVISION NOTES -------------------------------------------------------------------- Revised Source (U.S. Code) Source (Statutes at Large) Section -------------------------------------------------------------------- 5313(a) 31:1081. Oct. 26, 1970, Pub. L. 91-508, Secs. 221-223, 84 Stat. 1122. 31:1082. 5313(b) 31:1083(a). 5313(c) 31:1083(b). -------------------------------------------------------------------- In subsection (a), the words "coins or" are added, and the words "prescribe" and "prescribes" are substituted for "specify" in 31:1081, and "require", for consistency. The words "other parties thereto or" in 31:1082 are omitted as surplus. The words "to the Secretary" in 31:1081 are omitted as unnecessary and for clarity. The words "in such detail" are omitted as surplus. The words "A participant acting for another person shall make the report as the agent or bailee of the person and identify the person for whom the transaction is being made" are substituted for 31:1082(last sentence) for clarity and to eliminate unnecessary words. In subsection (b), the words "in his discretion" and "individually or by class" are omitted as surplus. The word "Government" is added for consistency. The words "or a regulation under this subchapter", are added because of the restatement. The words "(except a violation of section 5315 of this title or a regulation 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 subsection (c)(1), clause (A) is substituted for "with respect to a domestic financial institution . . . with that institution" for clarity. Clause (C) is substituted for "any such person may, at his election and in lieu of filing the report in the manner hereinabove prescribed, file the report with the Secretary" to eliminate unnecessary words. -REFTEXT- REFERENCES IN TEXT Section 411 of the National Housing Act, referred to in subsec. (b), which was classified to section 1730d of Title 12, Banks and Banking, was repealed by Pub. L. 101-73, title IV, Sec. 407, Aug. 9, 1989, 103 Stat. 363. Section 19(b)(1)(A) and (C) of the Federal Reserve Act, referred to in subsecs. (e)(2)(A) and (g)(1), is classified to section 461(b)(1)(A) and (C) of Title 12. The date of enactment of the Money Laundering Suppression Act of 1994, referred to in subsec. (e)(6), is the date of enactment of title IV of Pub. L. 103-325, which was approved Sept. 23, 1994. Section 1(b) of the International Banking Act of 1978, referred to in subsec. (g)(2)(A), is classified to section 3101 of Title 12. Sections 25 and 25A of the Federal Reserve Act, referred to in subsec. (g)(2)(B), (C), are classified to subchapters I (Secs. 601 et seq.) and II (Secs. 611 et seq.), respectively, of chapter 6 of Title 12. -MISC2- AMENDMENTS 1994 - Subsecs. (d) to (g). Pub. L. 103-325 added subsecs. (d) to (g). EFFICIENT USE OF CURRENCY TRANSACTION REPORT SYSTEM Pub. L. 107-56, title III, Sec. 366, Oct. 26, 2001, 115 Stat. 335, provided that: "(a) Findings. - The Congress finds the following: "(1) The Congress established the currency transaction reporting requirements in 1970 because the Congress found then that such reports have a high degree of usefulness in criminal, tax, and regulatory investigations and proceedings and the usefulness of such reports has only increased in the years since the requirements were established. "(2) In 1994, in response to reports and testimony that excess amounts of currency transaction reports were interfering with effective law enforcement, the Congress reformed the currency transaction report exemption requirements to provide - "(A) mandatory exemptions for certain reports that had little usefulness for law enforcement, such as cash transfers between depository institutions and cash deposits from government agencies; and "(B) discretionary authority for the Secretary of the Treasury to provide exemptions, subject to criteria and guidelines established by the Secretary, for financial institutions with regard to regular business customers that maintain accounts at an institution into which frequent cash deposits are made. "(3) Today there is evidence that some financial institutions are not utilizing the exemption system, or are filing reports even if there is an exemption in effect, with the result that the volume of currency transaction reports is once again interfering with effective law enforcement. "(b) Study and Report. - "(1) Study required. - The Secretary shall conduct a study of - "(A) the possible expansion of the statutory exemption system in effect under section 5313 of title 31, United States Code; and "(B) methods for improving financial institution utilization of the statutory exemption provisions as a way of reducing the submiss