7 November 2008
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[Federal Register: November 7, 2008 (Volume 73, Number 217)]
[Proposed Rules]
[Page 66413-66486]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07no08-22]
[[Page 66413]]
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Part III
Department of the Treasury
31 CFR Part 103
Financial Crimes Enforcement Network
31 CFR Chapter X
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Transfer and Reorganization of Bank Secrecy Act Regulations; Proposed
Rule
[[Page 66414]]
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DEPARTMENT OF THE TREASURY
31 CFR Part 103
Financial Crimes Enforcement Network
31 CFR Chapter X
RIN 1506-0092
Transfer and Reorganization of Bank Secrecy Act Regulations
AGENCY: Financial Crimes Enforcement Network (FinCEN), Department of
the Treasury.
ACTION: Notice of proposed rulemaking and request for comments.
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SUMMARY: FinCEN proposes to move Bank Secrecy Act (BSA) regulations to
a new chapter in the Code of Federal Regulations (CFR). The new chapter
would contain the BSA regulations, which would generally be reorganized
by financial industry. Moving the BSA regulations to a new chapter and
organizing the chapter by financial industry would create a user-
friendly way to find regulations applicable to a particular financial
industry. This new organization within the new chapter also allows for
the renumbering of the BSA regulations in a manner that would make it
easier to find regulatory requirements than under the numbering system
currently used in the existing regulations. FinCEN also proposes to
make minor technical changes to the BSA regulations such as updating
mailing addresses and points of contact.
DATES: Written comments must be submitted on or before March 9, 2009.
ADDRESSES: Those submitting comments are encouraged to do so via the
Internet. Comments submitted via the Internet may be submitted at
http://www.regulations.gov/search/index.jsp with the caption in the
body of the text, ``Attention: Chapter X.'' Comments may also be
submitted by written mail to: Financial Crimes Enforcement Network,
Department of the Treasury, P.O. Box 39, Vienna, VA 22183, Attention:
Chapter X. Please submit comments by one method only. All comments
submitted in response to this notice of proposed rulemaking will become
a matter of public record; therefore, you should submit only
information that you wish to make publicly available.
Inspection of comments: Comments may be inspected between 10 a.m.
and 4 p.m. in the FinCEN reading room in Vienna, VA. Persons wishing to
inspect the comments submitted must request an appointment with the
Disclosure Officer by telephoning (703) 905-5034 (not a toll free
call). In general, FinCEN will make all comments publicly available by
posting them on http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: The FinCEN Regulatory Helpline at
(800) 949-2732 (toll-free number).
SUPPLEMENTARY INFORMATION:
I. Introduction
As part of its effort to increase the efficiency and effectiveness
of BSA obligations, FinCEN proposes to move, without substantive
change, the regulations promulgated under the BSA and the USA PATRIOT
Act to a new chapter within the Code of Federal Regulations. Moving the
regulations to a new chapter within Title 31 provides FinCEN with the
opportunity to restructure its regulations to make them more easily
identifiable by a particular regulated industry. Making the regulatory
obligations more clear in their structure and more readily accessible
to regulatory institutions will facilitate compliance and thereby
advance the purposes of the BSA.
II. Background
In September 2005, the eRulemaking program launched the Federal
Docket Management System (FDMS), greatly expanding public access to
information and improving agency management of the rulemaking process.
FDMS, publicly accessible at http://www.regulations.gov, serves as an
electronic document repository, enabling departments and agencies to
post all rulemaking and non-rulemaking documents for public access and
comment. This access is revolutionizing the way the government involves
the public in its decision-making by moving from paper-based processes
to new e-government innovations, which will lead to more efficient
interactions between government and the public.
Currently, FinCEN is included in FDMS as a departmental office of
Treasury and FinCEN's rulemaking is included with all other
departmental offices, not separately. By having its own chapter, FinCEN
will be listed separately in FDMS. This separate FDMS listing will make
it easier for the public to locate and comment on future FinCEN
rulemaking documents.
Moving the regulations to a new chapter also provides the
opportunity for FinCEN to organize the existing rules in a way that
will add value to financial institutions, regulators, and law
enforcement entities that deal with these rules by making them easier
to find. FinCEN has not proposed any substantive amendments or
revisions to the Part 103 regulations. The information collection,
reporting, and recordkeeping requirements will remain the same for all
regulated entities.\1\ However, in addition to adding a new chapter and
restructuring the organization of its regulations, FinCEN proposes to
make necessary technical corrections, such as updating references,
mailing addresses, and points of contact.
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\1\ To the extent that the renumbering of regulations will
require making changes to regulations referenced on various FinCEN
information collection forms, it will not change the information
fields in such forms and the manner in which the forms are completed
will not be altered.
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FinCEN has not published any of the Appendices in 31 CFR part 103
with this proposal. As explained in greater detail below, FinCEN
proposes to publish the Appendices that will be part of Chapter X in a
subsequent notice of proposed rulemaking.
III. Proposed Changes
A. Structure of Chapter X
FinCEN proposes to organize Chapter X by financial industry so as
to create a user-friendly way to find regulations which apply to a
particular industry. This methodology and format is currently used by
several state jurisdictions. In this new structure, definitions and
regulatory obligations applicable to all or a number of regulated
persons and financial institutions will be located in a Part titled
``General Provisions.'' Regulatory obligations applicable to a
particular industry will be located in an industry-specific Part. If a
regulatory obligation in the General Provisions Part is applicable to a
particular industry, there will be a statement in the industry-specific
Part referring the industry to the obligation contained in the General
Provisions Part. FinCEN is proposing this structure so that individuals
interested in finding the rules applicable to a particular category of
financial institution need only to look in two places. The proposed
Parts are as follows:
1010 General Provisions
1020 Rules for Banks
1021 Rules for Casinos and Card Clubs
1022 Rules for Money Services Businesses
1023 Rules for Brokers or Dealers in Securities
1024 Rules for Mutual Funds
1025 Rules for Insurance Companies
1026 Rules for Futures Commission Merchants and Introducing Brokers
in Commodities
1027 Rules for Dealers in Precious Metals, Precious Stones, or
Jewels
1028 Rules for Operators of Credit Card Systems
1029-1099 [RESERVED]
[[Page 66415]]
Additionally, FinCEN will use Chapter X to reorganize provisions
currently divided into several layers of subparagraphs throughout a
particular Part 103 subpart in a manner that will be simpler to follow.
For example, FinCEN is proposing to divide the regulations relating to
currency transaction reporting (CTR) regulations into separately
numbered sections. Interested parties will be able to identify specific
CTR requirements, including those relating to filing reports,
identification, aggregation, and structured transactions, more readily
as they have been grouped together, rather than throughout the subpart
or in several subparagraphs within a section. Current CTR requirements
for financial institutions other than casinos and card clubs will be
located in the General Provisions Part because those regulations apply
to several industries. CTR requirements for casinos and card clubs that
use different language due to the unique nature of the industry will be
located within Part 1021 only.
FinCEN is taking a tiered approach to removing the BSA regulations
from 31 CFR part 103 and adding them in 31 CFR Chapter X. As part of
this tiered approach, FinCEN intends to publish a subsequent notice of
proposed rulemaking with any revisions or deletions necessary to move
the Appendices contained in 31 CFR part 103 to 31 CFR Chapter X.
Because the current notice is focusing on the restructuring effort,
within this notice, FinCEN has proposed the new location of each 31 CFR
part 103 Appendix in the Distribution Table below as well as in the
table of contents contained in the proposed rulemaking. In the
subsequent notice of proposed rulemaking, FinCEN will publish those
Appendices that should be moved to 31 CFR Chapter X.
B. Renumbering Logic
FinCEN's proposed renumbering logic is designed to provide
consistency and ease of access. By maintaining a consistent numbering
and division of sections within subparts, regulatory requirements will
be easier to find. For example, each regulatory section in each subpart
A refers to definitions; each regulatory section in each Subpart B is
numbered 10xx.2xx and refers to a program requirement; each regulatory
section in each Subpart C is numbered 10xx.3xx and refers to a
reporting requirement; and each regulatory section in each Subpart D is
numbered 10xx.4xx and refers to a recordkeeping requirement. Therefore,
if a regulation is numbered 10xx.3xx, such as 1010.310, it will be
immediately recognizable as a reporting requirement. If the regulation
is numbered 10xx.4xx, such as 1010.410, it will likewise be
recognizable as a recordkeeping requirement. This renumbering, in
conjunction with the restructuring, will eliminate confusion existing
in the current structure. For instance, currently, Sec. 103.29,
pertaining to ``purchases of bank checks and drafts, cashier's checks,
money orders and traveler's checks,'' is in Subpart B--Reports Required
To Be Made; this specific regulation, however, is a recordkeeping
requirement. In the proposed Chapter X, that regulatory obligation will
be included in the subpart for recordkeeping requirements. FinCEN is
reordering and renumbering the requirement to make this provision, and
others, clearly identifiable and retrievable based on a logical format
that will require less memorization. This renumbering logic will also
allow financial institutions to search for a section in their relevant
Part to determine quickly if there is in fact a current regulatory
requirement. For example, each section that ends with .320 will always
pertain to suspicious activity reporting (SAR) requirements. As
specific examples, 1021.320 will be the SAR requirement for casinos and
card clubs and 1023.320 will be the SAR requirement for broker or
dealers in securities. If a financial institution, such as a dealer in
precious metals, precious stones, or jewels views Part 1027, the
institution will see that 1027.320 is ``Reserved.'' While dealers in
precious metals, precious stones, or jewels are encouraged to file
SARs, they are currently not required to do so.
C. Definitions
General BSA definitions will be found in Sec. 1010.100, with
further definitions in Sec. Sec. 1010.505 and 1010.605, which are
applicable to subparts E and F, respectively, of Part 1010. As
indicated above, definitions specific to a particular financial
industry will always be found in subpart A of that financial industry
Part in a section ending with .100 (e.g., Sec. 1024.100 of Part 1024
and Sec. 1026.100 of Part 1026).
Certain definitions that are not currently located in Sec. 103.11,
but which FinCEN intends to apply to the entire Chapter, unless
otherwise indicated, have been moved into the General Definition Sec.
1010.100. Additionally, definitions have been reordered in Sec.
1010.100 to be consistent with the alphabetical system. These include
the definitions for ``Attorney General,'' ``business day,''
``commodity,'' ``contract of sale,'' ``Federal Functional Regulator,''
``FinCEN,'' ``futures commission merchant,'' ``Indian Gaming Regulatory
Act,'' ``intermediary bank,'' ``introducing broker-commodities,''
``mutual fund,'' ``security,'' ``self-regulatory organization,''
``state,'' ``stored value,'' ``taxpayer identification number,''
``territories and insular provinces,'' ``transaction account,''
``United States Postal Service,'' and ``U.S. person.'' General
Definitions will apply to all FinCEN regulations, unless otherwise
noted.
FinCEN proposes a definition for Bank Secrecy Act (BSA). Currently,
the acronym ``BSA'' and the term ``Bank Secrecy Act'' is used
throughout Part 103, but has not been defined. FinCEN has proposed a
definition of Bank Secrecy Act so that it can be used consistently
throughout the Chapter.
The definition of ``mutual fund'' has been moved from the
substantive text of the regulations to the General Definitions section,
as well as sections where the term is specified according to regulatory
requirements. Where applicable, such as Special Measures requirements
or Customer Identification Program requirements for mutual funds, the
definitions of mutual fund have been reprinted as it was in those
sections in current 31 CFR 103 and relocated as per the proposed
Chapter X renumbering logic.
D. Technical Corrections
The following technical corrections to FinCEN regulations are being
proposed:
1. FinCEN has updated references to its Web site by including
``http://www.fincen.gov'' where current references cite to ``http://
www.treas.gov/fincen.''
2. The FinCEN mailing address has been changed to: P.O. Box 39,
Vienna, Virginia, 22183.
3. When used to refer to Part 103, the word ``part'' or the phrase
``Part 103'' has been changed to ``chapter.''
4. The ``Office of Enforcement'' has been changed to ``FinCEN.''
5. ``Assistant Secretary (Enforcement)'' and ``Director, Office of
Financial Enforcement'' have been updated to ``Director, FinCEN.''
6. ``The Office of the Assistant Secretary (Enforcement)'' has been
changed to ``Director of FinCEN or his designee.''
7. ``Customs'' has been changed to ``Customs and Border
Protection.''
8. FinCEN has replaced ``Commission'' with ``Commodity Futures
Trading Commission'' when the term is used to refer to the Commodity
Futures Trading Commission. The term ``Commission'' is now only used to
refer to the Securities and Exchange Commission.
[[Page 66416]]
9. The definition of FinCEN has been updated to reflect that FinCEN
is now a bureau rather than an office within the Treasury Department
(i.e. proposed Sec. 1010.100(s) versus the prior version Sec.
103.11(qq)).
10. The name of the SAR form that brokers or dealers in securities
and futures commission merchants and introducing brokers in commodities
use to report suspicious transactions has been updated to reflect the
correct name of the form.
11. The references to Treasury Form TD F 90-22.53 have been changed
to FinCEN Form 110.
12. The reference to the New York Stock Exchange and the National
Association of Securities Dealers has been changed to the Financial
Industry Regulatory Authority.
13. Cross references to Sec. 103.21 contained in Sec.
103.22(d)(9) were not updated when the bank SAR rules were moved from
Sec. 103.21 to Sec. 103.18. In Chapter X, the references have been
fixed so that they refer to the bank SAR rules (proposed Sec.
1020.320) rather than to the casino SAR rules (proposed Sec.
1021.320).
14. Sections 103.27(a)(1) and 103.55(c)(1) incorrectly indicate
that the transactions in currency reporting requirements are contained
in Sec. 103.22(a). Prior to 1998, the reporting obligations were
contained in Sec. 103.22(a), but per the Amendments to the Bank
Secrecy Act Regulations--Exemptions from the Requirement to Report
Transactions in Currency--Phase II, 63 FR 50147 (1998), the filing
obligations were moved to Sec. 103.22(b)(1) for financial institutions
other than casinos and Sec. 103.22(b)(2) for casinos. The cross
references to Sec. 103.22(a) in Sec. 103.27(a)(1) (proposed Sec.
1010.306(a)(1)) and Sec. 103.55(c)(1) (proposed Sec. 1010.970(c)(1))
have been corrected to include those Chapter X sections that contain
transactions in currency transaction reporting obligations.
15. All references to ``subpart'' in Sec. 103.38(a)-(d) were
changed to ``chapter'' in proposed Sec. 1010.430(a)-(d).
16. The reference to ``subpart'' in Sec. 103.39 was changed to
``chapter'' in proposed Sec. 1010.440.
17. The word ``Act'' from Sec. 103.62 was changed to the ``Bank
Secrecy Act'' in proposed Sec. 1010.930.
18. The words ``Treasury Department'' in Sec. 103.85 (proposed
Sec. 1010.715) have been changed to ``FinCEN,'' so that now the
provision states that FinCEN will only be bound by a ruling if the
request describes a specifically identified actual situation.
19. The cross reference contained in Sec. 103.140(a)(4)(ii) to
``paragraph (a)(3)(i) of this section'' is incorrect because there is
no (a)(3)(i) in that section. Because this should have been a reference
to (a)(4)(i), the cross-reference should be to proposed Sec.
1027.100(d)(1) in Chapter X.
20. Former Sec. 103.170(c), currently proposed as Sec.
1010.205(c), has been corrected by revising the beginning of the first
sentence to read as follows: ``The exemptions described in paragraph
(b) of this section * * *''. In Part 103, there was a reference to the
exemptions contained in ``paragraphs (a)(2) and (b)'' of Sec. 103.170.
Paragraph (a)(2) was removed and reserved through Corrections published
in the Federal Register (see 67 FR 68935 (Nov. 14, 2002)). Paragraph
(b) is the only paragraph within this section that contains exemptions
(see 67 FR at 67549 (Nov. 6, 2002)).
21. Paragraph (a)(2) of 31 CFR 103.27, which provided that ``A
report required by Sec. 103.22(g) shall be filed by the bank within 15
days after receiving a request for the report,'' is superfluous and has
been deleted. Paragraph (g) of 31 CFR 103.22 was previously removed in
63 FR 50147.
IV. Part-by-Part Analysis
Part 1010 of Chapter X contains the general regulatory provisions
of the Bank Secrecy Act and USA PATRIOT Act. General definitions are in
Subpart A (Sec. 1010.100); programs are in Subpart B (Sec. Sec.
1010.205-1010.220); reports required to be made by financial
institutions are in Subpart C (Sec. Sec. 1010.301-1010.370); records
required to be maintained by financial institutions are in Subpart D
(Sec. Sec. 1010.401-1010.440); special information sharing procedures
to deter money laundering and terrorist activity are in Subpart E
(Sec. Sec. 1010.505-1010.540); special standards of diligence;
prohibitions; and special measures are in Subpart F (Sec. Sec.
1010.605-1010.670); administrative rulings are in Subpart G (Sec. Sec.
1010.710-1010.717); enforcement; penalties; and forfeiture provisions
are in Subpart H (Sec. Sec. 1010.810-1010.850); summons provisions are
in Subpart I (Sec. Sec. 1010.911-1010.917); miscellaneous provisions
are in Subpart J (Sec. Sec. 1010.920-1010.980).
Part 1020 of Chapter X contains regulatory provisions for banks.
Definitions applicable to banks are in Subpart A (Sec. 1020.100);
programs are in Subpart B (Sec. Sec. 1020.210-1020.220); reports
required to be made by banks are in Subpart C (Sec. Sec. 1020.310-
1020.320); records required to be maintained by banks are in Subpart D
(Sec. 1020.410); special information sharing procedures to deter money
laundering and terrorist activity for banks are in Subpart E, and
special standards of diligence; prohibitions; and special measures for
banks are in Subpart F.
Part 1021 of Chapter X contains regulatory provisions for casinos
and card clubs. Definitions for casinos and card clubs are in Subpart A
(Sec. 1021.100); programs are in Subpart B (Sec. 1021.210); reports
required to be made by casinos are in Subpart C (Sec. Sec. 1021.310-
1021.320); records required to be maintained by casinos are in Subpart
D (Sec. 1021.410); special information sharing procedures to deter
money laundering and terrorist activity for casinos are in Subpart E;
and special standards of diligence; prohibitions; and special measures
for casinos are in Subpart F.
Part 1022 of Chapter X contains regulatory provisions for money
services businesses. Definitions for money services business are in
Subpart A (Sec. 1022.100); programs are in Subpart B (Sec. 1022.210);
reports required to be made by money services businesses are in Subpart
C (Sec. Sec. 1022.310-1022.320); records required to be maintained by
money services businesses are in Subpart D (Sec. 1022.410); special
information sharing procedures to deter money laundering and terrorist
activity for money services businesses are in Subpart E; and special
standards of diligence; prohibitions; and special measures for money
services businesses are in Subpart F.
Part 1023 of Chapter X contains regulatory provisions for brokers
or dealers in securities. Definitions for brokers or dealers in
securities are in Subpart A (Sec. 1023.100); programs are in Subpart B
(Sec. Sec. 1023.210-1023.220); reports required to be made by brokers
or dealers in securities are in Subpart C (Sec. Sec. 1023.310-
1023.320); records required to be maintained by brokers or dealers in
securities are in Subpart D (Sec. 1023.410); special information
sharing procedures to deter money laundering and terrorist activity for
brokers or dealers in securities are in Subpart E; and special
standards of diligence; prohibitions; and special measures for money
services businesses are in Subpart F.
Part 1024 of Chapter X contains regulatory provisions for mutual
funds. Definitions for mutual funds are in Subpart A (Sec. 1024.100);
programs are in Subpart B (Sec. Sec. 1024.210-1024.220); reports
required to be made by mutual funds are in Subpart C (Sec. Sec.
1024.310-1024.330); records required to be maintained by mutual funds
are in
[[Page 66417]]
Subpart D (Sec. 1024.410); special information sharing procedures to
deter money laundering and terrorist activity for mutual funds are in
Subpart E; and special standards of diligence; prohibitions; and
special measures for mutual funds are in Subpart F.
Part 1025 of Chapter X contains regulatory provisions for insurance
companies. Definitions for insurance companies are in Subpart A (Sec.
1025.100); programs are in Subpart B (Sec. 1025.210); reports required
to be made by insurance companies are in Subpart C (Sec. Sec.
1025.310-1025.330); records required to be maintained by insurance
companies are in Subpart D (Sec. 1025.410); special information
sharing procedures to deter money laundering and terrorist activity for
insurance companies are in Subpart E; and special standards of
diligence; prohibitions; and special measures for insurance companies
are in Subpart F.
Part 1026 of Chapter X contains regulatory provisions for futures
commission merchants and introducing brokers in commodities.
Definitions for futures commission merchants and introducing brokers in
commodities are in Subpart A (Sec. 1026.100); programs are in Subpart
B (Sec. Sec. 1026.210-1026.220); reports required to be made by
futures commission merchants and introducing brokers in commodities are
in Subpart C (Sec. Sec. 1026.310-1026.330); records required to be
maintained by futures commission merchants and introducing brokers in
commodities are in Subpart D (Sec. 1026.410); special information
sharing procedures to deter money laundering and terrorist activity for
futures commission merchants and introducing brokers in commodities are
in Subpart E; and special standards of diligence; prohibitions; and
special measures for futures commission merchants and introducing
brokers in commodities are in Subpart F.
Part 1027 of Chapter X contains regulatory provisions for dealers
in precious metals, precious stones, or jewels. Definitions for dealers
in precious metals, precious stones, or jewels are in Subpart A (Sec.
1027.100); programs are in Subpart B (Sec. 1027.210); reports required
to be made by dealers in precious metals, precious stones, or jewels
are in Subpart C (Sec. Sec. 1027.310-1027.330); records required to be
maintained by dealers in precious metals, precious stones, or jewels
are in Subpart D (Sec. 1027.410); special information sharing
procedures to deter money laundering and terrorist activity for dealers
in precious metals, precious stones, or jewels are in Subpart E; and
special standards of diligence; prohibitions; and special measures for
dealers in precious metals, precious stones, or jewels are in Subpart
F.
Part 1028 of Chapter X contains regulatory provisions for operators
of credit card systems. Definitions for operators of credit card
systems are in Subpart A (Sec. 1028.100); programs are in Subpart B
(Sec. 1028.210); reports required to be made by operators of credit
card systems are in Subpart C (Sec. Sec. 1028.310-1028.330); records
required to be maintained by operators of credit card systems are in
Subpart D (Sec. 1028.410); special information sharing procedures to
deter money laundering and terrorist activity for operators of credit
card systems are in Subpart E; and special standards of diligence;
prohibitions; and special measures for operators of credit card systems
are in Subpart F.
At this time, Parts 1029-1099 of Chapter X are reserved and the
Appendices to Chapter X will remain the same as those currently
contained in title 31 CFR Part 103 until further notice.
For convenience, FinCEN is providing a table summarizing the
redistribution of the 31 CFR Part 103 provisions to the proposed layout
of Chapter X as follows:
Distribution Table
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31 CFR parts 1000-1099
31 CFR part 103 section (Chapter X) section
------------------------------------------------------------------------
103.11.................................... 1010.100.
103.12.................................... 1010.301.
103.15(a)-(g)............................. 1024.320(a)-(g).
103.16(a)................................. Deleted.
103.16(b)-(i)............................. 1025.320(a)-(h).
103.17(a)-(h)............................. 1026.320(a)-(h).
103.18(a)-(f)............................. 1020.320(a)-(f).
103.19(a)-(h)............................. 1023.320(a)-(h).
103.20(a)-(f)............................. 1022.320(a)-(f).
103.21(a)-(g)............................. 1021.320(a)-(g).
103.22(a)................................. Deleted.
103.22(b)(1).............................. 1010.311.
103.22(b)(2)(i)-(iii)..................... 1021.311(a)-(c).
103.22(c)(1) & (2)........................ 1010.313(a) & (b).
103.22(c)(3).............................. 1021.313.
103.22(d)................................. 1020.315(a)-(k).
103.23(a)-(d)............................. 1010.340(a)-(d).
103.24.................................... 1010.350.
103.25(a)-(e)............................. 1010.360(a)-(e).
103.26(a)-(d)............................. 1010.370(a)-(d).
103.27(a)(1).............................. 1010.306(a)(1).
103.27(a)(2).............................. Deleted.
103.27(a)(3) & (4)........................ 1010.306(a)(2) & (3).
103.27(b)-(e)............................. 1010.306(b)-(e).
103.28.................................... 1010.312.
103.29(a)-(c)............................. 1010.415(a)-(c).
103.30(a)-(c)............................. 1010.330(a)-(c).
103.30(d)(1)(i)-(iv)...................... 1021.330(a)-(d).
103.30(d)(2).............................. 1010.330(d)(2).
103.30(d)(3).............................. 1010.330(d)(1).
103.30(e)................................. 1010.330(e).
103.31.................................... 1010.401.
103.32.................................... 1010.420.
103.33(a)-(d)............................. 1010.410(a)-(d).
103.33(e)................................. 1020.410(a).
103.33(f) & (g)........................... 1010.410(e) & (f).
103.34(a) & (b)........................... 1020.410(b) & (c).
103.35(a) & (b)........................... 1023.410(a) & (b).
103.36(a)-(c)............................. 1021.410(a)-(c).
103.37(a)-(c)............................. 1022.410(a)-(c).
103.38(a)-(d)............................. 1010.430(a)-(d).
103.39.................................... 1010.440.
103.41(a)-(f)............................. 1022.380(a)-(f).
103.51.................................... 1010.980.
103.52(a) & (b)........................... 1010.940(a) & (b).
103.53(a)-(f)............................. 1010.950(a)-(f).
103.54.................................... 1010.960.
103.55(a)-(c)............................. 1010.970(a)-(c).
103.56(a)-(g)............................. 1010.810(a)-(g).
103.57(a)-(h)............................. 1010.820(a)-(h).
103.58.................................... 1010.830.
103.59(a)-(d)............................. 1010.840(a)-(d).
103.60(a)-(c)............................. 1010.850(a)-(c).
103.61.................................... 1010.920.
103.62(a)-(c)............................. 1010.930(a)-(c).
103.63(a)-(c)............................. 1010.314(a)-(c).
103.64(a)................................. 1021.210(b).
103.64(b)(1).............................. 1021.100(a).
103.64(b)(2).............................. 1021.100(b).
103.64(b)(3).............................. 1021.100(c).
103.64(b)(4).............................. 1021.100(d).
103.64(b)(5).............................. 1021.100(e).
103.71.................................... 1010.911.
103.72(a)-(c)............................. 1010.912(a)-(c).
103.73(a) & (b)........................... 1010.913(a) & (b).
103.74(a)-(c)............................. 1010.914(a)-(c).
103.75(a)-(c)............................. 1010.915(a)-(c).
103.76.................................... 1010.916.
103.77.................................... 1010.917.
103.80.................................... 1010.710.
103.81(a)-(e)............................. 1010.711(a)-(e).
103.82.................................... 1010.712.
103.83(a) & (b)........................... 1010.713(a) & (b).
103.84.................................... 1010.714.
103.85.................................... 1010.715.
103.86(a)-(d)............................. 1010.716(a)-(d).
103.87(a) & (b)........................... 1010.717(a) & (b).
103.90(a)................................. 1010.505(b).
103.90(b)................................. 1010.505(c).
103.90(c)................................. 1010.505(a).
103.90(d)................................. 1010.505(d).
103.100(a)(1) & (a)(3).................... Deleted.
103.100(a)(2)............................. 1010.520(a)(1).
103.100(b)................................ 1010.520(b).
103.110(a)(1)............................. Deleted.
103.110(a)(2) & (3)....................... 1010.540(a)(1) & (2).
103.110(b)-(d)............................ 1010.540(b)-(d).
103.120(a)(1)............................. 1020.100(d)(1).
1023.100(e)(1).
103.120(a)(2)............................. 1010.100(r).
103.120(a)(3)............................. 1010.100(tt).
103.120(a)(4)............................. Deleted.
103.120(b)................................ 1020.210.
103.120(c)(1) & (2)....................... 1023.210(a) & (b).
1026.210(b)(1) & (2).
103.120(d)................................ 1021.210(a).
103.121(a)(1)............................. 1020.100(a).
103.121(a)(2)............................. 1020.100(b).
103.121(a)(3)............................. 1020.100(c).
103.121(a)(4)............................. Deleted.
103.121(a)(5)............................. 1020.100(d)(2).
103.121(a)(6)............................. 1010.100(yy).
103.121(a)(7)............................. 1010.100(iii).
103.121(a)(8)............................. 1010.100(iii).
103.121(b)-(d)............................ 1020.220(a)-(c).
103.122(a)(1)............................. 1023.100(a).
[[Page 66418]]
103.122(a)(2)............................. 1023.100(b).
103.122(a)(3)............................. 1023.100(c).
103.122(a)(4)............................. 1023.100(d).
103.122(a)(5)............................. Deleted.
103.122(a)(6)............................. 1023.100(e).
103.122(a)(7)............................. Deleted.
103.122(a)(8)............................. Deleted.
103.122(a)(9)............................. Deleted.
103.122(b)-(d)............................ 1023.220(a)-(c).
103.123(a)(1)............................. 1026.100(a).
103.123(a)(2)............................. Deleted.
103.123(a)(3)............................. 1026.100(b).
103.123(a)(4)............................. 1026.100(c).
103.123(a)(5)............................. 1026.100(d).
103.123(a)(6)............................. Deleted.
103.123(a)(7)............................. 1026.100(e).
103.123(a)(8)............................. 1026.100(f).
103.123(a)(9)............................. 1026.100(g).
103.123(a)(10)............................ 1026.100(h).
103.123(a)(11)............................ Deleted.
103.123(a)(12)............................ Deleted.
103.123(a)(13)............................ Deleted.
103.123(b)-(d)............................ 1026.220(a)-(c).
103.125(a)-(e)............................ 1022.210(a)-(e).
103.130(a)................................ 1024.100(e)(1).
103.130(b) & (c).......................... 1024.210(a) & (b).
103.131(a)(1)............................. 1024.100(a).
103.131(a)(2)............................. 1024.100(c).
103.131(a)(3)............................. 1010.100(r).
103.131(a)(4)............................. 1024.100(d).
103.131(a)(5)............................. 1024.100(e)(2).
103.131(a)(6)............................. 1010.100(iii).
103.131(a)(7)............................. 1010.100(yy).
103.131(a)(8)............................. 1010.100(iii).
103.131(b)-(d)............................ 1024.220(a)-(c).
103.135(a)(1)............................. 1028.100(e).
103.135(a)(2)............................. 1028.100(d).
103.135(a)(3)............................. 1028.100(a).
103.135(a)(4)............................. 1028.100(f).
103.135(a)(5)............................. 1028.100(b).
103.135(a)(6)............................. 1028.100(c).
103.135(b) & (c).......................... 1028.210(a) & (b).
103.137(a)(1)............................. 1025.100(a).
103.137(a)(2)............................. Deleted.
103.137(a)(3)............................. Deleted.
103.137(a)(4)............................. 1025.100(b).
103.137(a)(5)............................. 1025.100(c).
103.137(a)(6)............................. 1025.100(d).
103.137(a)(7)............................. 1025.100(e).
103.137(a)(8)............................. 1025.100(f).
103.137(a)(9)............................. 1025.100(g).
103.137(a)(10)............................ 1025.100(h).
103.137(a)(11)............................ Deleted.
103.137(a)(12)............................ Deleted.
103.137(b)-(e)............................ 1025.210(a)-(d).
103.140(a)(1)............................. 1027.100(a).
103.140(a)(2)............................. 1027.100(b).
103.140(a)(3)............................. 1027.100(c).
103.140(a)(4)............................. 1027.100(d).
103.140(a)(5)............................. 1027.100(e).
103.140(a)(6)............................. Deleted.
103.140(a)(7)............................. 1027.100(f).
103.140(b)-(d)............................ 1027.210(a)-(c).
103.170(a)-(d)............................ 1010.205(a)-(d).
103.175(a)................................ 1010.100(c).
103.175(b)................................ 1010.605(a).
103.175(c)................................ 1010.605(b).
103.175(d)................................ 1010.605(c).
103.175(e)................................ 1010.605(d).
103.175(f)................................ 1010.605(e).
103.175(g)................................ Deleted.
103.175(h)................................ 1010.605(f).
103.175(i)................................ 1010.605(g).
103.175(j)................................ 1010.605(h).
103.175(k)................................ 1010.605(i).
103.175(l)................................ 1010.605(j).
103.175(m)................................ 1010.605(k).
103.175(n)................................ 1010.605(l).
103.175(o)................................ 1010.605(m).
103.175(p)................................ 1010.605(n).
103.175(q)................................ 1010.605(o).
103.175(r)................................ 1010.605(p).
103.175(s)................................ Deleted.
103.175(t)................................ Deleted.
103.176(a)-(g)............................ 1010.610(a)-(g).
103.177(a)-(f)............................ 1010.630(a)-(f).
103.178(a)-(e)............................ 1010.620(a)-(e).
103.185(a)-(f)............................ 1010.670(a)-(f).
103.186(a)(1)............................. 1010.651(a)(2).
103.186(a)(2)............................. 1010.651(a)(3).
103.186(a)(3)............................. 1010.651(a)(1).
103.186(b)................................ 1010.651(b).
103.187(a)(1)............................. 1010.652(a)(2).
103.187(a)(2)............................. 1010.652(a)(3).
103.187(a)(3)............................. 1010.652(a)(4).
103.187(a)(4)............................. 1010.652(a)(1).
103.187(b)................................ 1010.652(b).
103.188(a)(1)............................. 1010.653(a)(1).
103.188(a)(2)............................. 1010.653(a)(2).
103.188(a)(3)............................. 1010.653(a)(3).
103.188(a)(4)............................. 1010.653(a)(4).
103.188(b)................................ 1010.653(b).
103.192(a)(1)............................. 1010.654(a)(1).
103.192(a)(2)............................. 1010.654(a)(2).
103.192(a)(3)............................. 1010.654(a)(3).
103.192(a)(4)............................. 1010.654(a)(4).
103.192(b)................................ 1010.654(b).
103.193(a)(1)............................. 1010.655(a)(1).
103.193(a)(2)............................. 1010.655(a)(2).
103.193(a)(3)............................. 1010.655(a)(3).
103.193(a)(4)............................. 1010.655(a)(4).
103.193(b)................................ 1010.655(b).
Appendix A to Subpart H................... Appendix A.
Appendix A to Subpart I................... Appendix C.
Appendix B to Subpart I................... Appendix D.
Appendix A to Part 103.................... Appendix E.
Appendix B to Part 103.................... Appendix B.
Appendix C to Part 103.................... Appendix F.
------------------------------------------------------------------------
V. Request for Comments
FinCEN invites comment on all aspects of the proposed restructuring
of the regulations, and specifically seeks comment on the following
issues:
1. Whether the structure and numbering logic of the sections and
parts within Chapter X makes FinCEN regulations more easily accessible.
2. Whether alphabetical order and the maintenance of alphabetical
order is clear, effective and of such value that FinCEN should renumber
the definitions at this time and each time a new one is added.
VI. Regulatory Matters
A. Executive Order 12866
It has been determined that this proposed rule is not a significant
regulatory action for purposes of Executive Order 12866. Accordingly, a
regulatory impact analysis is not required.
B. Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995 (``Unfunded
Mandates Act''), Public Law 104-4 (March 22, 1995), requires that an
agency prepare a budgetary impact statement before promulgating a rule
that may result in expenditure by state, local, and tribal governments,
in the aggregate, or by the private sector, of $100 million or more in
any one year. If a budgetary impact statement is required, section 202
of the Unfunded Mandates Act also requires an agency to identify and
consider a reasonable number of regulatory alternatives before
promulgating a rule. FinCEN has determined that it is not required to
prepare a written statement under Section 202 and has concluded that on
balance the proposals in the Notice of Proposed Rulemaking provide the
most cost-effective and least burdensome alternative to achieve the
objectives of the rule.
C. Regulatory Flexibility Act
Pursuant to the Regulatory Flexibility Act (RFA) (5 U.S.C. 602 et
seq.), FinCEN certifies that this proposed regulation would not have a
significant economic impact on a substantial number of small entities.
The proposed regulation merely restructures and re-codifies existing
regulations.
FinCEN believes the costs that may arise as a result of
restructuring these regulations will be confined to training,
publication and computer programming. The new regulatory structure will
require financial institution compliance personnel to be retrained to
assure familiarity with the new numbering format. FinCEN has attempted
to mitigate any substantial costs of retraining by providing two aids:
(1) III Proposed Changes--D. Technical Corrections, and (2) IV Part by
Part Analysis.
Publication costs incurred to reproduce informational materials
supplied by financial institutions to customers and the public should
be minimized by the time interval afforded between the proposed rule,
analysis and publication of a final rule.
[[Page 66419]]
FinCEN's analysis of the small entities that are subject to this
regulation indicates that the vast majority of such entities file paper
reports with FinCEN. These entities should incur no additional filing
costs because they will continue to obtain the most current copy of the
form available on the FinCEN Web site to file a report. However, for
small entities that utilize a computer system to generate reports,
there may be some recoding or reprogramming of existing software or the
purchase of new software to file under this regulation. A current
survey of the size of the financial institutions that file
electronically indicates that this would be a small number of the total
filers.
D. Paperwork Reduction Act
This proposed rule contains no new information collection
requirements subject to review and approval by the Office of Management
and Budget under the Paperwork Reduction Act of 1995 (44 U.S.C.
3507(d), et seq.). The information collection requirements for the Bank
Secrecy Act, currently codified at 31 CFR part 103, were previously
approved by the Office of Management and Budget under OMB Control
numbers 1506-0001 through 1506-0046.
List of Subjects in 31 CFR Part 103 and 31 CFR Parts 1010 and 1020
Through 1028
Administrative practice and procedure, Banks, banking, Brokers,
Currency, Foreign banking, Foreign currencies, Gambling,
Investigations, Penalties, Reporting and recordkeeping requirements,
Securities, Terrorism.
Department of the Treasury
31 CFR Chapter I
Authority and Issuance
For the reasons set forth above, under the authority of 12 U.S.C.
1829b and 1951-1959; 31 U.S.C. 5311-5314, 5316-5332; title III, sec.
314, Pub. L. 107-56, 115 Stat. 307, Chapter I of Title 31 of the Code
of Federal Regulations is proposed to be amended by removing Part 103.
Department of the Treasury
Financial Crimes Enforcement Network
31 CFR Chapter X
Authority and Issuance
For the reasons set forth above, Chapter X, consisting of parts
1000 through 1099, is proposed to be added to Title 31 to read as
follows:
Chapter X--Financial Crimes Enforcement Network, Department of the
Treasury
PARTS 1000-1009 [RESERVED]
PART 1010--GENERAL PROVISIONS
Subpart A--General Definitions
Sec.
1010.100 General definitions.
Subpart B--Programs
1010.200 General.
1010.205 Exempted anti-money laundering programs for certain
financial institutions.
1010.210 Anti-money laundering programs.
1010.220 Customer identification program requirements.
Subpart C--Reports Required To Be Made
1010.300 General.
1010.301 Determination by the Secretary.
1010.305 [Reserved]
1010.306 Filing of reports.
1010.310 Reports of transactions in currency.
1010.311 Filing obligations for reports of transactions in currency.
1010.312 Identification required.
1010.313 Aggregation.
1010.314 Structured transactions.
1010.315 Exemptions for non-bank financial institutions.
1010.320 Reports of suspicious transactions.
1010.330 Reports relating to currency in excess of $10,000 received
in a trade or business.
1010.340 Reports of transportation of currency or monetary
instruments.
1010.350 Reports of foreign financial accounts.
1010.360 Reports of transactions with foreign financial agencies.
1010.370 Reports of certain domestic coin and currency transactions.
Subpart D--Records Required To Be Maintained
1010.400 General.
1010.401 Determination by the Secretary.
1010.405 [Reserved]
1010.410 Records to be made and retained by financial institutions.
1010.415 Purchases of bank checks and drafts, cashier's checks,
money orders and traveler's checks.
1010.420 Records to be made and retained by persons having financial
interests in foreign financial accounts.
1010.430 Nature of records and retention period.
1010.440 Person outside the United States.
Subpart E--Special Information Sharing Procedures To Deter Money
Laundering and Terrorist Activity
1010.500 General.
1010.505 Definitions.
1010.520 Information sharing between Federal law enforcement
agencies and financial institutions.
1010.530 [Reserved]
1010.540 Voluntary information sharing among financial institutions.
Subpart F--Special Standards of Diligence; Prohibitions; and Special
Measures
1010.600 General.
Special Due Diligence for Correspondent Accounts and Private Banking
Accounts
1010.605 Definitions.
1010.610 Due diligence programs for correspondent accounts for
foreign financial institutions.
1010.620 Due diligence programs for private banking accounts.
1010.630 Prohibition on correspondent accounts for foreign shell
banks; records concerning owners of foreign banks and agents for
service of legal process.
1010.640 [Reserved]
Special Measures Under Section 311 of the USA PATRIOT Act and Law
Enforcement Access to Foreign Bank Records
1010.651 Special measures against Burma.
1010.652 Special measures against Myanmar Mayflower Bank and Asia
Wealth Bank.
1010.653 Special measures against Commercial Bank of Syria.
1010.654 Special measures against VEF Bank.
1010.655 Special measures against Banco Delta Asia.
1010.670 Summons or subpoena of foreign bank records; termination of
correspondent relationship.
Subpart G--Administrative Rulings
1010.710 Scope.
1010.711 Submitting requests.
1010.712 Nonconforming requests.
1010.713 Oral communications.
1010.714 Withdrawing requests.
1010.715 Issuing rulings.
1010.716 Modifying or rescinding rulings.
1010.717 Disclosing information.
Subpart H--Enforcement; Penalties; and Forfeiture
1010.810 Enforcement.
1010.820 Civil penalty.
1010.830 Forfeiture of currency or monetary instruments.
1010.840 Criminal penalty.
1010.850 Enforcement authority with respect to transportation of
currency or monetary instruments.
Subpart I--Summons
1010.911 General.
1010.912 Persons who may issue summons.
1010.913 Contents of summons.
1010.914 Service of summons.
1010.915 Examination of witnesses and records.
1010.916 Enforcement of summons.
1010.917 Payment of expenses.
Subpart J--Miscellaneous
1010.920 Access to records.
1010.930 Rewards for informants.
1010.940 Photographic or other reproductions of Government
obligations.
1010.950 Availability of information.
1010.960 Disclosure.
1010.970 Exceptions, exemptions, and reports.
[[Page 66420]]
1010.980 Dollars as including foreign currency.
Authority: 12 U.S.C. 1829b and 1951-1959; 31 U.S.C. 5311-5314,
5316-5332; title III, sec. 314, Pub. L. 107-56, 115 Stat. 307.
Subpart A--General Definitions
Sec. 1010.100 General definitions.
When used in this chapter and in forms prescribed under this
chapter, where not otherwise distinctly expressed or manifestly
incompatible with the intent thereof, terms shall have the meanings
ascribed in this subpart. Terms applicable to a particular type of
financial institution or specific part or subpart of this chapter are
located in that part or subpart. Terms may have different meanings in
different parts or subparts.
(a) Accept. A receiving financial institution, other than the
recipient's financial institution, accepts a transmittal order by
executing the transmittal order. A recipient's financial institution
accepts a transmittal order by paying the recipient, by notifying the
recipient of the receipt of the order or by otherwise becoming
obligated to carry out the order.
(b) At one time. For purposes of Sec. 1010.340 of this part, a
person who transports, mails, ships or receives; is about to or
attempts to transport, mail or ship; or causes the transportation,
mailing, shipment or receipt of monetary instruments, is deemed to do
so ``at one time'' if:
(1) That person either alone, in conjunction with or on behalf of
others;
(2) Transports, mails, ships or receives in any manner; is about to
transport, mail or ship in any manner; or causes the transportation,
mailing, shipment or receipt in any manner of;
(3) Monetary instruments;
(4) Into the United States or out of the United States;
(5) Totaling more than $10,000;
(6)(i) On one calendar day; or
(ii) If for the purpose of evading the reporting requirements of
Sec. 1010.340, on one or more days.
(c) Attorney General. The Attorney General of the United States.
(d) Bank. Each agent, agency, branch or office within the United
States of any person doing business in one or more of the capacities
listed below:
(1) A commercial bank or trust company organized under the laws of
any State or of the United States;
(2) A private bank;
(3) A savings and loan association or a building and loan
association organized under the laws of any State or of the United
States;
(4) An insured institution as defined in section 401 of the
National Housing Act;
(5) A savings bank, industrial bank or other thrift institution;
(6) A credit union organized under the law of any State or of the
United States;
(7) Any other organization (except a money services business)
chartered under the banking laws of any state and subject to the
supervision of the bank supervisory authorities of a State;
(8) A bank organized under foreign law;
(9) Any national banking association or corporation acting under
the provisions of section 25(a) of the Act of Dec. 23, 1913, as added
by the Act of Dec. 24, 1919, ch. 18, 41 Stat. 378, as amended (12
U.S.C. 611-32).
(e) Bank Secrecy Act. The Currency and Foreign Transactions
Reporting Act, its amendments, and the other statutes relating to the
subject matter of that Act, have come to be referred to as the Bank
Secrecy Act. These statutes are codified at 12 U.S.C. 1829b, 12 U.S.C.
1951-1959, 18 U.S.C. 1956, 18 U.S.C. 1957, 18 U.S.C. 1960, and 31
U.S.C. 5311-5314 and 5316-5332 and notes thereto.
(f) Beneficiary. The person to be paid by the beneficiary's bank.
(g) Beneficiary's bank. The bank or foreign bank identified in a
payment order in which an account of the beneficiary is to be credited
pursuant to the order or which otherwise is to make payment to the
beneficiary if the order does not provide for payment to an account.
(h) Broker or dealer in securities. A broker or dealer in
securities, registered or required to be registered with the Securities
and Exchange Commission under the Securities Exchange Act of 1934,
except persons who register pursuant to section 15(b)(11) of the
Securities Exchange Act of 1934.
(i) Business day. As used in this chapter with respect to banks,
business day means that day, as normally communicated to its depository
customers, on which a bank routinely posts a particular transaction to
its customer's account.
(j) Commodity. Any good, article, service, right, or interest
described in section 1a(4) of the Commodity Exchange Act (``CEA''), 7
U.S.C. 1a(4).
(k) Common carrier. Any person engaged in the business of
transporting individuals or goods for a fee who holds himself out as
ready to engage in such transportation for hire and who undertakes to
do so indiscriminately for all persons who are prepared to pay the fee
for the particular service offered.
(l) Contract of sale. Any sale, agreement of sale, or agreement to
sell as described in section 1a(7) of the CEA, 7 U.S.C. 1a(7).
(m) Currency. The coin and paper money of the United States or of
any other country that is designated as legal tender and that
circulates and is customarily used and accepted as a medium of exchange
in the country of issuance. Currency includes U.S. silver certificates,
U.S. notes and Federal Reserve notes. Currency also includes official
foreign bank notes that are customarily used and accepted as a medium
of exchange in a foreign country.
(n) Deposit account. Deposit accounts include transaction accounts
described in paragraph (ccc) of this section, savings accounts, and
other time deposits.
(o) Domestic. When used herein, refers to the doing of business
within the United States, and limits the applicability of the provision
where it appears to the performance by such institutions or agencies of
functions within the United States.
(p) Established customer. A person with an account with the
financial institution, including a loan account or deposit or other
asset account, or a person with respect to which the financial
institution has obtained and maintains on file the person's name and
address, as well as taxpayer identification number (e.g. , social
security or employer identification number) or, if none, alien
identification number or passport number and country of issuance, and
to which the financial institution provides financial services relying
on that information.
(q) Execution date. The day on which the receiving financial
institution may properly issue a transmittal order in execution of the
sender's order. The execution date may be determined by instruction of
the sender but cannot be earlier than the day the order is received,
and, unless otherwise determined, is the day the order is received. If
the sender's instruction states a payment date, the execution date is
the payment date or an earlier date on which execution is reasonably
necessary to allow payment to the recipient on the payment date.
(r) Federal functional regulator.
(1) The Board of Governors of the Federal Reserve System;
(2) The Office of the Comptroller of the Currency;
(3) The Board of Directors of the Federal Deposit Insurance
Corporation;
(4) The Office of Thrift Supervision;
(5) The National Credit Union Administration;
[[Page 66421]]
(6) The Securities and Exchange Commission; or
(7) The Commodity Futures Trading Commission.
(s) FinCEN. FinCEN means the Financial Crimes Enforcement Network,
a bureau of the Department of the Treasury.
(t) Financial institution. Each agent, agency, branch, or office
within the United States of any person doing business, whether or not
on a regular basis or as an organized business concern, in one or more
of the capacities listed below:
(1) A bank (except bank credit card systems);
(2) A broker or dealer in securities;
(3) A money services business as defined in paragraph (ff) of this
section;
(4) A telegraph company;
(5)(i) Casino. A casino or gambling casino that: Is duly licensed
or authorized to do business as such in the United States, whether
under the laws of a State or of a Territory or Insular Possession of
the United States, or under the Indian Gaming Regulatory Act or other
federal, state, or tribal law or arrangement affecting Indian lands
(including, without limitation, a casino operating on the assumption or
under the view that no such authorization is required for casino
operation on Indian lands); and has gross annual gaming revenue in
excess of $1 million. The term includes the principal headquarters and
every domestic branch or place of business of the casino.
(ii) For purposes of this paragraph (t)(5), ``gross annual gaming
revenue'' means the gross gaming revenue received by a casino, during
either the previous business year or the current business year of the
casino. A casino or gambling casino which is a casino for purposes of
this chapter solely because its gross annual gaming revenue exceeds
$1,000,000 during its current business year, shall not be considered a
casino for purposes of this chapter prior to the time in its current
business year that its gross annual gaming revenue exceeds $1,000,000.
(iii) Any reference in this chapter, other than in this paragraph
(t)(5) and in paragraph (t)(6) of this section, to a casino shall also
include a reference to a card club, unless the provision in question
contains specific language varying its application to card clubs or
excluding card clubs from its application;
(6)(i) Card club. A card club, gaming club, card room, gaming room,
or similar gaming establishment that is duly licensed or authorized to
do business as such in the United States, whether under the laws of a
State, of a Territory or Insular Possession of the United States, or of
a political subdivision of any of the foregoing, or under the Indian
Gaming Regulatory Act or other federal, state, or tribal law or
arrangement affecting Indian lands (including, without limitation, an
establishment operating on the assumption or under the view that no
such authorization is required for operation on Indian lands for an
establishment of such type), and that has gross annual gaming revenue
in excess of $1,000,000. The term includes the principal headquarters
and every domestic branch or place of business of the establishment.
The term ``casino,'' as used in this chapter shall include a reference
to ``card club'' to the extent provided in paragraph (t)(5)(iii) of
this section.
(ii) For purposes of this paragraph (t)(6), ``gross annual gaming
revenue'' means the gross revenue derived from or generated by customer
gaming activity (whether in the form of per-game or per-table fees,
however computed, rentals, or otherwise) and received by an
establishment, during either the establishment's previous business year
or its current business year. A card club that is a financial
institution for purposes of this chapter solely because its gross
annual revenue exceeds $1,000,000 during its current business year,
shall not be considered a financial institution for purposes of this
chapter prior to the time in its current business year when its gross
annual revenue exceeds $1,000,000;
(7) A person subject to supervision by any state or federal bank
supervisory authority;
(8) A futures commission merchant; or
(9) An introducing broker in commodities.
(u) Foreign bank. A bank organized under foreign law, or an agency,
branch or office located outside the United States of a bank. The term
does not include an agent, agency, branch or office within the United
States of a bank organized under foreign law.
(v) Foreign financial agency. A person acting outside the United
States 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.
(w) Funds transfer. The series of transactions, beginning with the
originator's payment order, made for the purpose of making payment to
the beneficiary of the order. The term includes any payment order
issued by the originator's bank or an intermediary bank intended to
carry out the originator's payment order. A funds transfer is completed
by acceptance by the beneficiary's bank of a payment order for the
benefit of the beneficiary of the originator's payment order. Funds
transfers governed by the Electronic Fund Transfer Act of 1978 (Title
XX, Pub. L. 95-630, 92 Stat. 3728, 15 U.S.C. 1693, et seq.), as well as
any other funds transfers that are made through an automated
clearinghouse, an automated teller machine, or a point-of-sale system,
are excluded from this definition.
(x) Futures commission merchant. Any person registered or required
to be registered as a futures commission merchant with the Commodity
Futures Trading Commission [bs](``CFTC'') under the
CEA, except persons who register pursuant to section 4f(a)(2) of the
CEA, 7 U.S.C. 6f(a)(2).
(y) Indian Gaming Regulatory Act. The Indian Gaming Regulatory Act
of 1988, codified at 25 U.S.C. 2701-2721 and 18 U.S.C. 1166-68.
(z) Intermediary bank. A receiving bank other than the originator's
bank or the beneficiary's bank.
(aa) Intermediary financial institution. A receiving financial
institution, other than the transmittor's financial institution or the
recipient's financial institution. The term intermediary financial
institution includes an intermediary bank.
(bb) Introducing broker-commodities. Any person registered or
required to be registered as an introducing broker with the CFTC under
the CEA, except persons who register pursuant to section 4f(a)(2) of
the CEA, 7 U.S.C. 6f(a)(2).
(cc) Investment security. An instrument which:
(1) Is issued in bearer or registered form;
(2) Is of a type commonly dealt in upon securities exchanges or
markets or commonly recognized in any area in which it is issued or
dealt in as a medium for investment;
(3) Is either one of a class or series or by its terms is divisible
into a class or series of instruments; and
(4) Evidences a share, participation or other interest in property
or in an enterprise or evidences an obligation of the issuer.
(dd) Monetary instruments. (1) Monetary instruments include:
(i) Currency;
(ii) Traveler's checks in any form;
(iii) All negotiable instruments (including personal checks,
business
[[Page 66422]]
checks, official bank checks, cashier's checks, third-party checks,
promissory notes (as that term is defined in the Uniform Commercial
Code), and money orders) that are either in bearer form, endorsed
without restriction, made out to a fictitious payee (for the purposes
of Sec. 1010.340), or otherwise in such form that title thereto passes
upon delivery;
(iv) Incomplete instruments (including personal checks, business
checks, official bank checks, cashier's checks, third-party checks,
promissory notes (as that term is defined in the Uniform Commercial
Code), and money orders) signed but with the payee's name omitted; and
(v) Securities or stock in bearer form or otherwise in such form
that title thereto passes upon delivery.
(2) Monetary instruments do not include warehouse receipts or bills
of lading.
(ee) [Reserved]
(ff) Money services business. Each agent, agency, branch, or office
within the United States of any person doing business, whether or not
on a regular basis or as an organized business concern, in one or more
of the capacities listed in paragraphs (ff)(1) through (ff)(6) of this
section. Notwithstanding the preceding sentence, the term ``money
services business'' shall not include a bank, nor shall it include a
person registered with, and regulated or examined by, the Securities
and Exchange Commission or the Commodity Futures Trading Commission.
(1) Currency dealer or exchanger. A currency dealer or exchanger
(other than a person who does not exchange currency in an amount
greater than $1,000 in currency or monetary or other instruments for
any person on any day in one or more transactions).
(2) Check casher. A person engaged in the business of a check
casher (other than a person who does not cash checks in an amount
greater than $1,000 in currency or monetary or other instruments for
any person on any day in one or more transactions).
(3) Issuer of traveler's checks, money orders, or stored value. An
issuer of traveler's checks, money orders, or, stored value (other than
a person who does not issue such checks or money orders or stored value
in an amount greater than $1,000 in currency or monetary or other
instruments to any person on any day in one or more transactions).
(4) Seller or redeemer of traveler's checks, money orders, or
stored value. A seller or redeemer of traveler's checks, money orders,
or stored value (other than a person who does not sell such checks or
money orders or stored value in an amount greater than $1,000 in
currency or monetary or other instruments to or redeem such instruments
for an amount greater than $1,000 in currency or monetary or other
instruments from, any person on any day in one or more transactions).
(5) Money transmitter--(i) In general. Money transmitter:
(A) Any person, whether or not licensed or required to be licensed,
who engages as a business in accepting currency, or funds denominated
in currency, and transmits the currency or funds, or the value of the
currency or funds, by any means through a financial agency or
institution, a Federal Reserve Bank or other facility of one or more
Federal Reserve Banks, the Board of Governors of the Federal Reserve
System, or both, or an electronic funds transfer network; or
(B) Any other person engaged as a business in the transfer of
funds.
(ii) Facts and circumstances; Limitation. Whether a person
``engages as a business'' in the activities described in paragraph
(ff)(5)(i) of this section is a matter of facts and circumstances.
Generally, the acceptance and transmission of funds as an integral part
of the execution and settlement of a transaction other than the funds
transmission itself (for example, in connection with a bona fide sale
of securities or other property), will not cause a person to be a money
transmitter within the meaning of paragraph (ff)(5)(i) of this section.
(6) U.S. Postal Service. The United States Postal Service, except
with respect to the sale of postage or philatelic products.
(gg) Mutual fund. An ``investment company'' (as the term is defined
in section 3 of the Investment Company Act (15 U.S.C. 80a-3)) that is
an ``open-end company'' (as that term is defined in section 5 of the
Investment Company Act (15 U.S.C. 80a-5)) that is registered or is
required to register with the Commission under section 8 of the
Investment Company Act (15 U.S.C. 80a-8).
(hh) Option on a commodity. Any agreement, contract, or transaction
described in section 1a(26) of the CEA, 7 U.S.C. 1a(26).
(ii) Originator. The sender of the first payment order in a funds
transfer.
(jj) Originator's bank. The receiving bank to which the payment
order of the originator is issued if the originator is not a bank or
foreign bank, or the originator if the originator is a bank or foreign
bank.
(kk) Payment date. The day on which the amount of the transmittal
order is payable to the recipient by the recipient's financial
institution. The payment date may be determined by instruction of the
sender, but cannot be earlier than the day the order is received by the
recipient's financial institution and, unless otherwise prescribed by
instruction, is the date the order is received by the recipient's
financial institution.
(ll) Payment order. An instruction of a sender to a receiving bank,
transmitted orally, electronically, or in writing, to pay, or to cause
another bank or foreign bank to pay, a fixed or determinable amount of
money to a beneficiary if:
(1) The instruction does not state a condition to payment to the
beneficiary other than time of payment;
(2) The receiving bank is to be reimbursed by debiting an account
of, or otherwise receiving payment from, the sender; and
(3) The instruction is transmitted by the sender directly to the
receiving bank or to an agent, funds transfer system, or communication
system for transmittal to the receiving bank.
(mm) Person. An individual, a corporation, a partnership, a trust
or estate, a joint stock company, an association, a syndicate, joint
venture, or other unincorporated organization or group, an Indian Tribe
(as that term is defined in the Indian Gaming Regulatory Act), and all
entities cognizable as legal personalities.
(nn) Receiving bank. The bank or foreign bank to which the sender's
instruction is addressed.
(oo) Receiving financial institution. The financial institution or
foreign financial agency to which the sender's instruction is
addressed. The term receiving financial institution includes a
receiving bank.
(pp) Recipient. The person to be paid by the recipient's financial
institution. The term recipient includes a beneficiary, except where
the recipient's financial institution is a financial institution other
than a bank.
(qq) Recipient's financial institution. The financial institution
or foreign financial agency identified in a transmittal order in which
an account of the recipient is to be credited pursuant to the
transmittal order or which otherwise is to make payment to the
recipient if the order does not provide for payment to an account. The
term recipient's financial institution includes a beneficiary's bank,
except where the beneficiary is a recipient's financial institution.
(rr) Secretary. The Secretary of the Treasury or any person duly
authorized by the Secretary to perform the function mentioned.
[[Page 66423]]
(ss) Security. Security means any instrument or interest described
in section 3(a)(10) of the Securities Exchange Act of 1934, 15 U.S.C.
78c(a)(10).
(tt) Self-regulatory organization:
(1) Shall have the same meaning as provided in section 3(a)(26) of
the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(26)); and
(2) Means a ``registered entity'' or a ``registered futures
association'' as provided in section 1a(29) or 17, respectively, of the
Commodity Exchange Act (7 U.S.C. 1a(29), 21).
(uu) Sender. The person giving the instruction to the receiving
financial institution.
(vv) State. The States of the United States and, wherever necessary
to carry out the provisions of this chapter, the District of Columbia.
(ww) Stored value. Funds or monetary value represented in digital
electronics format (whether or not specially encrypted) and stored or
capable of storage on electronic media in such a way as to be
retrievable and transferable electronically.
(xx) Structure (structuring). For purposes of Sec. 1010.314, a
person structures a transaction if that person, acting alone, or in
conjunction with, or on behalf of, other persons, conducts or attempts
to conduct one or more transactions in currency, in any amount, at one
or more financial institutions, on one or more days, in any manner, for
the purpose of evading the reporting requirements under Sec. Sec.
1010.311, 1010.313, 1020.315, 1021.311 and 1021.313 of this chapter.
``In any manner'' includes, but is not limited to, the breaking down of
a single sum of currency exceeding $10,000 into smaller sums, including
sums at or below $10,000, or the conduct of a transaction, or series of
currency transactions at or below $10,000. The transaction or
transactions need not exceed the $10,000 reporting threshold at any
single financial institution on any single day in order to constitute
structuring within the meaning of this definition.
(yy) Taxpayer Identification Number. Taxpayer Identification Number
(``TIN'') is defined by section 6109 of the Internal Revenue Code of
1986 (26 U.S.C. 6109) and the Internal Revenue Service regulations
implementing that section (e.g., Social Security number or employer
identification number).
(zz) Territories and Insular Possessions. The Commonwealth of
Puerto Rico, the United States Virgin Islands, Guam, the Commonwealth
of the Northern Mariana Islands, and all other territories and
possessions of the United States other than the Indian lands and the
District of Columbia.
(aaa) [Reserved]
(bbb) Transaction. (1) Except as provided in paragraph (bbb)(2) of
this section, transaction means a purchase, sale, loan, pledge, gift,
transfer, delivery, or other disposition, and with respect to a
financial institution includes a deposit, withdrawal, transfer between
accounts, exchange of currency, loan, extension of credit, purchase or
sale of any stock, bond, certificate of deposit, or other monetary
instrument, security, contract of sale of a commodity for future
delivery, option on any contract of sale of a commodity for future
delivery, option on a commodity, purchase or redemption of any money
order, payment or order for any money remittance or transfer, purchase
or redemption of casino chips or tokens, or other gaming instruments or
any other payment, transfer, or delivery by, through, or to a financial
institution, by whatever means effected.
(2) For purposes of Sec. Sec. 1010.311, 1010.313, 1020.315,
1021.311, 1021.313, and other provisions of this chapter relating
solely to the report required by those sections, the term ``transaction
in currency'' shall mean a transaction involving the physical transfer
of currency from one person to another. A transaction which is a
transfer of funds by means of bank check, bank draft, wire transfer, or
other written order, and which does not include the physical transfer
of currency, is not a transaction in currency for this purpose.
(ccc) Transaction account. Transaction accounts include those
accounts described in 12 U.S.C. 461(b)(1)(C), money market accounts and
similar accounts that take deposits and are subject to withdrawal by
check or other negotiable order.
(ddd) Transmittal of funds. A series of transactions beginning with
the transmittor's transmittal order, made for the purpose of making
payment to the recipient of the order. The term includes any
transmittal order issued by the transmittor's financial institution or
an intermediary financial institution intended to carry out the
transmittor's transmittal order. The term transmittal of funds includes
a funds transfer. A transmittal of funds is completed by acceptance by
the recipient's financial institution of a transmittal order for the
benefit of the recipient of the transmittor's transmittal order. Funds
transfers governed by the Electronic Fund Transfer Act of 1978 (Title
XX, Pub. L. 95-630, 92 Stat. 3728, 15 U.S.C. 1693, et seq.), as well as
any other funds transfers that are made through an automated
clearinghouse, an automated teller machine, or a point-of-sale system,
are excluded from this definition.
(eee) Transmittal order. The term transmittal order includes a
payment order and is an instruction of a sender to a receiving
financial institution, transmitted orally, electronically, or in
writing, to pay, or cause another financial institution or foreign
financial agency to pay, a fixed or determinable amount of money to a
recipient if:
(1) The instruction does not state a condition to payment to the
recipient other than time of payment;
(2) The receiving financial institution is to be reimbursed by
debiting an account of, or otherwise receiving payment from, the
sender; and
(3) The instruction is transmitted by the sender directly to the
receiving financial institution or to an agent or communication system
for transmittal to the receiving financial institution.
(fff) Transmittor. The sender of the first transmittal order in a
transmittal of funds. The term transmittor includes an originator,