31 U.S.C. § 5314 — Records and reports on foreign financial

Page 449 TITLE 31—MONEY AND FINANCE § 5314 ‘‘(c) REPORT AND RULEMAKINGS.—Not later than 1 year after the date of enactment of this Act [Jan. 1, 2021], the Secretary, in consultation with the Attorney General, the Director of National Intelligence, the Sec- retary of Homeland Security, the Federal functional regulators, State bank supervisors, State credit union supervisors, and other relevant stakeholders, shall— ‘‘(1) publish a report of the findings from the review required under subsection (a); and ‘‘(2) propose rulemakings, as appropriate, to imple- ment the findings and determinations described in paragraph (1). ‘‘(d) UPDATES.—Not less frequently than once every 5 years during the 10-year period beginning on the date of enactment of this Act, the Secretary shall— ‘‘(1) evaluate findings and rulemakings described in subsection (c); and ‘‘(2) transmit a written summary of the evaluation to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate; and ‘‘(3) propose rulemakings, as appropriate, in re- sponse to the evaluation required under paragraph (1).’’ [For definitions of terms used in section 6205 of Pub. L. 116–283, set out above, see section 6003 of Pub. L. 116–283, set out as a Definitions note under section 5311 of this title.] EFFICIENT USE OF CURRENCY TRANSACTION REPORT SYSTEM Pub. L. 107–56, title III, § 366, Oct. 26, 2001, 115 Stat. 335, provided that: ‘‘(a) FINDINGS.—The Congress finds the following: ‘‘(1) The Congress established the currency trans- action reporting requirements in 1970 because the Congress found then that such reports have a high de- gree of usefulness in criminal, tax, and regulatory in- vestigations 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 cri- teria 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 in- stitutions are not utilizing the exemption system, or are filing reports even if there is an exemption in ef- fect, with the result that the volume of currency transaction reports is once again interfering with ef- fective law enforcement. ‘‘(b) STUDY AND REPORT.— ‘‘(1) STUDY REQUIRED.—The Secretary shall conduct a study of— ‘‘(A) the possible expansion of the statutory ex- emption 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 submission of currency trans- action reports that have little or no value for law enforcement purposes, including improvements in the systems in effect at financial institutions for regular review of the exemption procedures used at the institution and the training of personnel in its effective use. ‘‘(2) REPORT REQUIRED.—The Secretary of the Treas- ury shall submit a report to the Congress before the end of the 1-year period beginning on the date of en- actment of this Act [Oct. 26, 2001] containing the find- ings and conclusions of the Secretary with regard to the study required under subsection (a), and such rec- ommendations for legislative or administrative ac- tion as the Secretary determines to be appropriate.’’ REPORT REDUCTION GOAL; STREAMLINED CURRENCY TRANSACTION REPORTS Pub. L. 103–325, title IV, § 402(b), (c), Sept. 23, 1994, 108 Stat. 2245, provided that: ‘‘(b) REPORT REDUCTION GOAL; REPORTS.— ‘‘(1) IN GENERAL.—In implementing the amendment made by subsection (a) [amending this section], the Secretary of the Treasury shall seek to reduce, with- in a reasonable period of time, the number of reports required to be filed in the aggregate by depository in- stitutions pursuant to section 5313(a) of title 31, United States Code, by at least 30 percent of the num- ber filed during the year preceding the date of enact- ment of this Act [Sept. 23, 1994]. ‘‘(2) INTERIM REPORT.—The Secretary of the Treas- ury shall submit a report to the Congress not later than the end of the 180-day period beginning on the date of enactment of this Act on the progress made by the Secretary in implementing the amendment made by subsection (a). ‘‘(3) ANNUAL REPORT.—The Secretary of the Treas- ury shall submit an annual report to the Congress after the end of each of the first 5 calendar years which begin after the date of enactment of this Act on the extent to which the Secretary has reduced the overall number of currency transaction reports filed with the Secretary pursuant to section 5313(a) of title 31, United States Code, consistent with the purposes of such section and effective law enforcement. ‘‘(c) STREAMLINED CURRENCY TRANSACTION REPORTS.— The Secretary of the Treasury shall take such action as may be appropriate to— ‘‘(1) redesign the format of reports required to be filed under section 5313(a) of title 31, United States Code, by any financial institution (as defined in sec- tion 5312(a)(2) of such title) to eliminate the need to report information which has little or no value for law enforcement purposes; and ‘‘(2) reduce the time and effort required to prepare such report for filing by any such financial institu- tion under such section.’’ § 5314. Records and reports on foreign financial agency transactions (a) Considering the need to avoid impeding or controlling the export or import of monetary in- struments and the need to avoid burdening un- reasonably a person making a transaction with a foreign financial agency, the Secretary of the Treasury shall require a resident or citizen of the United States or a person in, and doing busi- ness in, the United States, to keep records, file reports, or keep records and file reports, when the resident, citizen, or person makes a trans- action or maintains a relation for any person with a foreign financial agency. The records and reports shall contain the following information in the way and to the extent the Secretary pre- scribes: (1) the identity and address of participants in a transaction or relationship. (2) the legal capacity in which a participant is acting. (3) the identity of real parties in interest. (4) a description of the transaction. (b) The Secretary may prescribe— (1) a reasonable classification of persons sub- ject to or exempt from a requirement under this section or a regulation under this section; Page 450 TITLE 31—MONEY AND FINANCE § 5315 1 See References in Text note below. (2) a foreign country to which a requirement or a regulation under this section applies if the Secretary decides applying the require- ment or regulation to all foreign countries is unnecessary or undesirable; (3) the magnitude of transactions subject to a requirement or a regulation under this sec- tion; (4) the kind of transaction subject to or ex- empt from a requirement or a regulation under this section; and (5) other matters the Secretary considers necessary to carry out this section or a regula- tion under this section. (c) A person shall be required to disclose a record required to be kept under this section or under a regulation under this section only as re- quired by law. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 997.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 5314(a) ..... 31:1121(a). Oct. 26, 1970, Pub. L. 91–508, §§ 241, 242, 84 Stat. 1124. 5314(b) ..... 31:1122. 5314(c) ..... 31:1121(b). In subsection (a), before clause (1), the words ‘‘cur- rency or other’’, ‘‘legitimately’’, ‘‘by regulation’’, and ‘‘directly or indirectly’’ are omitted as surplus. The words ‘‘for any person’’ are substituted for ‘‘on behalf of himself or another’’ to eliminate unnecessary words. The words ‘‘and to the extent’’ are substituted for ‘‘and in such detail’’ for clarity. In clauses (1) and (2), the words ‘‘participants’’ and ‘‘participant’’ are substituted for ‘‘parties’’ for consistency. In clause (2), the words ‘‘to the transaction or relationship’’ are omitted as sur- plus. In clause (3), the words ‘‘if one or more of the par- ties are not acting solely as principals’’ are omitted as surplus. In clause (4), the words ‘‘including the amounts of money, credit, or other property involved’’ are omitted as surplus. In subsection (b), the words ‘‘or a regulation under this section’’ are added because of the restatement. The words ‘‘or does not apply’’ and ‘‘uniform’’ in clause (2) are omitted as surplus. In clause (5), the words ‘‘carry out’’ are substituted for ‘‘the application of’’ for con- sistency. In subsection (c), the words ‘‘produce or otherwise . . . the contents of’’ and ‘‘in compliance with a sub- pena or summons duly authorized and issued or . . . may otherwise be’’ are omitted as surplus. The words ‘‘under a regulation’’ are added because of the restate- ment. Statutory Notes and Related Subsidiaries COMPLIANCE WITH REPORTING REQUIREMENTS Pub. L. 107–56, title III, § 361(b), Oct. 26, 2001, 115 Stat. 332, provided that: ‘‘The Secretary of the Treasury shall study methods for improving compliance with the reporting requirements established in section 5314 of title 31, United States Code, and shall submit a report on such study to the Congress by the end of the 6- month period beginning on the date of enactment of this Act [Oct. 26, 2001] and each 1-year period there- after. The initial report shall include historical data on compliance with such reporting requirements.’’ § 5315. Reports on foreign currency transactions (a) Congress finds that— (1) moving mobile capital can have a signifi- cant impact on the proper functioning of the international monetary system; (2) it is important to have the most feasible current and complete information on the kind and source of capital flows, including trans- actions by large United States businesses and their foreign affiliates; and (3) additional authority should be provided to collect information on capital flows under section 5(b) of the Trading With the Enemy Act (50 App. U.S.C. 5(b)) 1 and section 8 of the Bretton Woods Agreement Act (22 U.S.C. 286f). (b) In this section, ‘‘United States person’’ and ‘‘foreign person controlled by a United States person’’ have the same meanings given those terms in section 7(f)(2)(A) and (C), respectively, of the Securities and Exchange Act of 1934 (15 U.S.C. 78g(f)(2)(A), (C)). (c) The Secretary of the Treasury shall pre- scribe regulations consistent with subsection (a) of this section requiring reports on foreign cur- rency transactions conducted by a United States person or a foreign person controlled by a United States person. The regulations shall re- quire that a report contain information and be submitted at the time and in the way, with rea- sonable exceptions and classifications, necessary to carry out this section. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 997.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 5315(a) ..... 31:1141. Sept. 21, 1973, Pub. L. 93–110, §§ 201, 202, 87 Stat. 353. 5315(b), (c). 31:1142. In subsection (a)(3), the words ‘‘it is desirable to em- phasize this objective . . . existing legal’’ are omitted as unnecessary. In subsection (c), the words ‘‘(hereafter referred to as the ‘Secretary’)’’ are omitted because of the restate- ment. The words ‘‘under the authority of this sub- chapter and any other authority conferred by law’’ are omitted as surplus. The word ‘‘prescribe’’ is substituted for ‘‘supplement’’ for clarity. The words ‘‘the state- ment of findings under’’ and ‘‘the submission of’’ are omitted as surplus. The words ‘‘Reports required under this subchapter shall cover foreign currency trans- actions’’ are omitted because of the restatement. The words ‘‘such terms are’’ and ‘‘the policy of’’ are omit- ted as surplus. Editorial Notes REFERENCES IN TEXT Section 5(b) of the Trading With the Enemy Act (50 App. U.S.C. 5(b)), referred to in subsec. (a)(3), is section 5(b) of act Oct. 6, 1917, ch. 106, 40 Stat. 415, which was editorially transferred and is now classified to section 4305(b) of Title 50, War and National Defense. § 5316. Reports on exporting and importing mon- etary instruments (a) Except as provided in subsection (c) of this section, a person or an agent or bailee of the person shall file a report under subsection (b) of this section when the person, agent, or bailee knowingly— (1) transports, is about to transport, or has transported, monetary instruments of more than $10,000 at one time—