12 U.S.C. § 1953 — Recordkeeping and procedures

Page 1273 TITLE 12—BANKS AND BANKING § 1953 Sec. 1952. Reports on ownership and control. 1953. Recordkeeping and procedures. 1954. Injunctions. 1955. Civil penalties. 1956. Criminal penalty. 1957. Additional criminal penalty in certain cases. 1958. Compliance. 1959. Administrative procedure. 1960. Safe harbor with respect to keep open direc- tives. § 1951. Congressional findings and declaration of purpose (a) The Congress finds that certain records maintained by businesses engaged in the func- tions described in section 1953(b) of this title have a high degree of usefulness in criminal, tax, and regulatory investigations and pro- ceedings. The Congress further finds that the power to require reports of changes in the own- ership, control, and managements of types of fi- nancial institutions referred to in section 1952 of this title may be necessary for the same pur- pose. (b) It is the purpose of this chapter to require the maintenance of appropriate types of records and the making of appropriate reports by such businesses in the United States where such records or reports have a high degree of useful- ness in criminal, tax, or regulatory investiga- tions or proceedings. (Pub. L. 91–508, title I, § 121, Oct. 26, 1970, 84 Stat. 1116.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 91–508, title IV, § 401(a), (b), Oct. 26, 1970, 84 Stat. 1125, provided that: ‘‘(a) Except as otherwise provided in this section, ti- tles I, II, and III of this Act and the amendments made thereby [enacting this chapter and sections 1730d and 1829b of this title and section 1051 et seq. of former Title 31, Money and Finance, amending section 78g of Title 15, Commerce and Trade, and enacting provisions set out as notes under section 78g of Title 15 and sec- tion 1051 of former Title 31] take effect on the first day of the seventh calendar month which begins after the date of enactment [Oct. 26, 1970]. ‘‘(b) The Secretary of the Treasury may by regulation provide that any provision of title I or II or any amend- ment made thereby [enacting this chapter and sections 1730d and 1829b of this title] shall be effective on any date not earlier than the publication of the regulation in the Federal Register and not later than the first day of the thirteenth calendar month which begins after the date of enactment [Oct. 26, 1970].’’ SHORT TITLE OF 2014 AMENDMENT Pub. L. 113–156, § 1, Aug. 8, 2014, 128 Stat. 1829, pro- vided that: ‘‘This Act [amending section 1958 of this title and section 5318 of Title 31, Money and Finance, and enacting provisions set out as a note under section 1958 of this title] may be cited as the ‘Money Remit- tances Improvement Act of 2014’.’’ SHORT TITLE Title I of Pub. L. 91–508, title II of Pub. L. 91–508, ti- tles I and II of Pub. L. 91–508, and subchapter II of chap- ter 53 of Title 31, Money and Finance, have each been popularly known as the ‘‘Bank Secrecy Act’’. Title I of Pub. L. 91–508, Oct. 26, 1970, 84 Stat. 1114, as amended, enacted this chapter, former section 1730d of this title, and section 1829b of this title. Title II of Pub. L. 91–508, Oct. 26, 1970, 84 Stat. 1118, as amended, also known as the Currency and Foreign Transactions Reporting Act, enacted chapter 21 (§ 1051 et seq.) of former Title 31, Money and Finance, which was repealed and reenacted as subchapter II of chapter 53 of Title 31, Money and Fi- nance, by Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31. For complete classification of Pub. L. 91–508 to the Code, see Tables. § 1952. Reports on ownership and control Where the Secretary determines that the mak- ing of appropriate reports by uninsured banks or uninsured institutions of any type with respect to their ownership, control, and managements and any changes therein has a high degree of usefulness in criminal, tax, or regulatory inves- tigations or proceedings, he may by regulation require such banks or institutions to make such reports as he determines in respect of such own- ership, control, and managements and changes therein. (Pub. L. 91–508, title I, § 122, Oct. 26, 1970, 84 Stat. 1116.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on first day of seventh calendar month which begins after Oct. 26, 1970, except that the Secretary of the Treasury may, by regulation, provide that this section be effective on any date not earlier than the publication of such regulations in the Federal Register and not later than first day of thirteenth cal- endar month which begins after Oct. 26, 1970, see sec- tion 401(a), (b) of Pub. L. 91–508, set out as a note under section 1951 of this title. § 1953. Recordkeeping and procedures (a) Regulations If the Secretary determines that the mainte- nance of appropriate records and procedures by any uninsured bank or uninsured institution, or any person engaging in the business of carrying on in the United States any of the functions re- ferred to in subsection (b), has a high degree of usefulness in criminal, tax, or regulatory inves- tigations or proceedings, and that, given the threat posed to the security of the Nation on and after the terrorist attacks against the United States on September 11, 2001, such records may also have a high degree of useful- ness in the conduct of intelligence or counter- intelligence activities, including analysis, to protect against international terrorism, he may by regulation require such bank, institution, or person— (1) to require, retain, or maintain, with re- spect to its functions as an uninsured bank or uninsured institution or its functions referred to in subsection (b), any records or evidence of any type which the Secretary is authorized under section 1829b of this title to require in- sured banks to require, retain, or maintain; and (2) to maintain procedures to assure compli- ance with requirements imposed under this chapter. For the purposes of any civil or criminal penalty, a separate violation of any requirement under this paragraph occurs with respect to each day and each separate office, branch, or place of business in which the viola- tion occurs or continues. Page 1274 TITLE 12—BANKS AND BANKING § 1954 1 See References in Text note below. (b) Institutions subject to recordkeeping require- ments The authority of the Secretary of the Treas- ury under subsection (a) extends to any finan- cial institution (as defined in section 5312(a)(2) of title 31), other than any insured bank (as de- fined in section 1813(h) of this title) and any in- sured institution (as defined in section 1724(a) 1 of this title), and any partner, officer, director, or employee of any such financial institution. (c) Acceptance of automated records The Secretary shall permit an uninsured bank or financial institution to retain or maintain records referred to in subsection (a) in elec- tronic or automated form, subject to terms and conditions established by the Secretary. (Pub. L. 91–508, title I, § 123, Oct. 26, 1970, 84 Stat. 1116; Pub. L. 100–690, title VI, § 6185(d)(3)(A), Nov. 18, 1988, 102 Stat. 4357; Pub. L. 103–325, title III, § 310, Sept. 23, 1994, 108 Stat. 2221; Pub. L. 107–56, title III, § 358(e), Oct. 26, 2001, 115 Stat. 327; Pub. L. 108–458, title VI, § 6202(k), Dec. 17, 2004, 118 Stat. 3746.) Editorial Notes REFERENCES IN TEXT Section 1724 of this title, referred to in subsec. (b), was repealed by Pub. L. 101–73, title IV, § 407, Aug. 9, 1989, 103 Stat. 363. AMENDMENTS 2004—Subsec. (a). Pub. L. 108–458 made technical cor- rection to Pub. L. 107–56. See 2001 Amendment note below. 2001—Subsec. (a). Pub. L. 107–56, as amended by Pub. L. 108–458, amended introductory provisions generally. Prior to amendment, introductory provisions read as follows: ‘‘Where the Secretary determines that the maintenance of appropriate records and procedures by any uninsured bank or uninsured institution, or any person engaging in the business of carrying on in the United States any of the functions referred to in sub- section (b) of this section, has a high degree of useful- ness in criminal, tax, or regulatory investigations or proceedings, he may by regulation require such bank, institution, or person—’’. 1994—Subsec. (c). Pub. L. 103–325 added subsec. (c). 1988—Subsec. (b). Pub. L. 100–690 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as fol- lows: ‘‘The authority of the Secretary under this sec- tion extends to any person engaging in the business of carrying on any of the following functions: ‘‘(1) Issuing or redeeming checks, money orders, travelers’ checks, or similar instruments, except as an incident to the conduct of its own nonfinancial business. ‘‘(2) Transferring funds or credits domestically or internationally. ‘‘(3) Operating a currency exchange or otherwise dealing in foreign currencies or credits. ‘‘(4) Operating a credit card system. ‘‘(5) Performing such similar, related, or substitute functions for any of the foregoing or for banking as may be specified by the Secretary in regulations.’’ Statutory Notes and Related Subsidiaries 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 this title. 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 this title. EFFECTIVE DATE Section effective on first day of seventh calendar month which begins after Oct. 26, 1970, except that the Secretary of the Treasury may, by regulation, provide that this section be effective on any date not earlier than the publication of such regulations in the Federal Register and not later than first day of thirteenth cal- endar month which begins after Oct. 26, 1970, see sec- tion 401(a), (b) of Pub. L. 91–508, set out as a note under section 1951 of this title. § 1954. Injunctions Whenever it appears to the Secretary that any person has engaged, is engaged, or is about to engage in any acts or practices constituting a violation of any regulation under this chapter, he may in his discretion bring an action, in the proper district court of the United States or the proper United States court of any territory or other place subject to the jurisdiction of the United States, to enjoin such acts or practices, and upon a proper showing a permanent or tem- porary injunction or restraining order shall be granted without bond. Upon application of the Secretary, any such court may also issue man- datory injunctions commanding any person to comply with any regulation of the Secretary under this chapter. (Pub. L. 91–508, title I, § 124, Oct. 26, 1970, 84 Stat. 1117.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on first day of seventh calendar month which begins after Oct. 26, 1970, except that the Secretary of the Treasury may, by regulation, provide that this section be effective on any date not earlier than the publication of such regulations in the Federal Register and not later than first day of thirteenth cal- endar month which begins after Oct. 26, 1970, see sec- tion 401(a), (b) of Pub. L. 91–508, set out as a note under section 1951 of this title. § 1955. Civil penalties (a) For each willful or grossly negligent viola- tion of any regulation under this chapter, the Secretary may assess upon any person to which the regulation applies, or any person willfully causing a violation of the regulation, and, if such person is a partnership, corporation, or other entity, upon any partner, director, officer, or employee thereof who willfully or through gross negligence participates in the violation, a civil penalty not exceeding $10,000. (b) In the event of the failure of any person to pay any penalty assessed under this section, a civil action for the recovery thereof may, in the discretion of the Secretary, be brought in the name of the United States. (Pub. L. 91–508, title I, § 125, Oct. 26, 1970, 84 Stat. 1117; Pub. L. 100–690, title VI, § 6185(d)(3)(B), Nov.