31 U.S.C. § 5311 — Declaration of purpose

Page 433 TITLE 31—MONEY AND FINANCE § 5311 § 5304. Regulations With the approval of the President, the Sec- retary of the Treasury may prescribe regula- tions— (1) to carry out section 5301 of this title; and (2) the Secretary considers necessary to carry out section 5302 of this title. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 994.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 5304 ......... 31:822. May 12, 1933, ch. 25, § 44, 48 Stat. 53. 31:822b. Jan. 30, 1934, ch. 6, § 11, 48 Stat. 342. Before clause (1), the words ‘‘prescribe regulations’’ are substituted for ‘‘make and promulgate rules and regulations’’ in 31:822 and ‘‘issue . . . such rules and regulations’’ in 31:822b for consistency. In clause (1), the words ‘‘to carry out’’ are substituted for ‘‘covering any action taken or to be taken by the President under’’ in 31:822 to eliminate unnecessary words. In clause (2), the words ‘‘or proper’’ in 31:822b and ‘‘the purposes of’’ are omitted as surplus. Reference to 31:821 is omitted as obsolete because silver is no longer coined. Reference to 31:824 is omitted as obsolete be- cause 31:824 is executed and is not part of the revised title. SUBCHAPTER II—RECORDS AND REPORTS ON MONETARY INSTRUMENTS TRANS- ACTIONS § 5311. Declaration of purpose It is the purpose of this subchapter (except section 5315) to— (1) require certain reports or records that are highly useful in— (A) criminal, tax, or regulatory investiga- tions, risk assessments, or proceedings; or (B) intelligence or counterintelligence ac- tivities, including analysis, to protect against terrorism; (2) prevent the laundering of money and the financing of terrorism through the establish- ment by financial institutions of reasonably designed risk-based programs to combat money laundering and the financing of ter- rorism; (3) facilitate the tracking of money that has been sourced through criminal activity or is intended to promote criminal or terrorist ac- tivity; (4) assess the money laundering, terrorism finance, tax evasion, and fraud risks to finan- cial institutions, products, or services to— (A) protect the financial system of the United States from criminal abuse; and (B) safeguard the national security of the United States; and (5) establish appropriate frameworks for in- formation sharing among financial institu- tions, their agents and service providers, their regulatory authorities, associations of finan- cial institutions, the Department of the Treas- ury, and law enforcement authorities to iden- tify, stop, and apprehend money launderers and those who finance terrorists. (Added Pub. L. 116–283, div. F, title LXI, § 6101(a), Jan. 1, 2021, 134 Stat. 4549.) Editorial Notes PRIOR PROVISIONS A prior section 5311, Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 995; Pub. L. 107–56, title III, § 358(a), Oct. 26, 2001, 115 Stat. 326, related to purpose of this subchapter, prior to repeal by Pub. L. 116–283, div. F, title LXI, § 6101(a), Jan. 1, 2021, 134 Stat. 4549. Statutory Notes and Related Subsidiaries SHORT TITLE This subchapter and chapter 21 (§ 1951 et seq.) of Title 12, Banks and Banking, are each popularly known as the ‘‘Bank Secrecy Act’’. See Short Title note set out under section 1951 of Title 12. SEVERABILITY Pub. L. 116–283, div. F, title LXV, § 6511, Jan. 1, 2021, 134 Stat. 4633, provided that: ‘‘If any provision of this division [see Tables for classification], an amendment made by this division, or the application of such provi- sion or amendment to any person or circumstance is held to be unconstitutional, the remainder of this divi- sion, the amendments made by this division, and the application of the provisions of such to any person or circumstance shall not be affected thereby.’’ PURPOSES Pub. L. 116–283, div. F, § 6002, Jan. 1, 2021, 134 Stat. 4547, provided that: ‘‘The purposes of this division [see Tables for classification] are— ‘‘(1) to improve coordination and information shar- ing among the agencies tasked with administering anti-money laundering and countering the financing of terrorism requirements, the agencies that examine financial institutions for compliance with those re- quirements, Federal law enforcement agencies, na- tional security agencies, the intelligence community, and financial institutions; ‘‘(2) to modernize anti-money laundering and coun- tering the financing of terrorism laws to adapt the government and private sector response to new and emerging threats; ‘‘(3) to encourage technological innovation and the adoption of new technology by financial institutions to more effectively counter money laundering and the financing of terrorism; ‘‘(4) to reinforce that the anti-money laundering and countering the financing of terrorism policies, procedures, and controls of financial institutions shall be risk-based; ‘‘(5) to establish uniform beneficial ownership infor- mation reporting requirements to— ‘‘(A) improve transparency for national security, intelligence, and law enforcement agencies and fi- nancial institutions concerning corporate struc- tures and insight into the flow of illicit funds through those structures; ‘‘(B) discourage the use of shell corporations as a tool to disguise and move illicit funds; ‘‘(C) assist national security, intelligence, and law enforcement agencies with the pursuit of crimes; and ‘‘(D) protect the national security of the United States; and ‘‘(6) to establish a secure, nonpublic database at FinCEN [Financial Crimes Enforcement Network of the Department of the Treasury] for beneficial owner- ship information.’’ [For definition of ‘‘financial institution’’ as used in section 6002 of Pub. L. 116–283, set out above, see section 6003 of Pub. L. 116–283, set out below.] INTERAGENCY ANTI-MONEY LAUNDERING AND COUN- TERING THE FINANCING OF TERRORISM PERSONNEL ROTATION PROGRAM Pub. L. 116–283, div. F, title LXI, § 6104, Jan. 1, 2021, 134 Stat. 4555, provided that: ‘‘To promote greater effec- Page 434 TITLE 31—MONEY AND FINANCE § 5311 tiveness and efficiency in combating money laundering, the financing of terrorism, proliferation financing, seri- ous tax fraud, trafficking, sanctions evasion and other financial crimes, the Secretary [of the Treasury] shall maintain and accelerate efforts to strengthen anti- money laundering and countering the financing of ter- rorism efforts through a personnel rotation program between the Federal functional regulators and the De- partment of Justice, the Federal Bureau of Investiga- tion, the Department of Homeland Security, the De- partment of Defense, and such other agencies as the Secretary determines are appropriate.’’ [For definition of ‘‘Federal functional regulator’’ as used in section 6104 of Pub. L. 116–283, set out above, see section 6003 of Pub. L. 116–283, set out below.] INTERNATIONAL COORDINATION Pub. L. 116–283, div. F, title LXI, § 6112(a), Jan. 1, 2021, 134 Stat. 4564, provided that: ‘‘The Secretary [of the Treasury] shall work with foreign counterparts of the Secretary, including through bilateral contacts, the Fi- nancial Action Task Force, the International Monetary Fund, the World Bank, the Egmont Group of Financial Intelligence Units, the Organisation for Economic Co- operation and Development, the Basel Committee on Banking Supervision, and the United Nations, to pro- mote stronger anti-money laundering frameworks and enforcement of anti-money laundering laws.’’ ANNUAL REPORTING REQUIREMENTS Pub. L. 116–283, div. F, title LXII, § 6201, Jan. 1, 2021, 134 Stat. 4565, provided that: ‘‘(a) ANNUAL REPORT.—Not later than 1 year after the date of enactment of this Act [Jan. 1, 2021], and annu- ally thereafter, the Attorney General, in consultation with the Secretary [of the Treasury], Federal law en- forcement agencies, the Director of National Intel- ligence, Federal functional regulators, and the heads of other appropriate Federal agencies, shall submit to the Secretary a report that contains statistics, metrics, and other information on the use of data derived from financial institutions reporting under the Bank Se- crecy Act (referred to in this subsection as the ‘re- ported data’), including— ‘‘(1) the frequency with which the reported data contains actionable information that leads to— ‘‘(A) further procedures by law enforcement agen- cies, including the use of a subpoena, warrant, or other legal process; or ‘‘(B) actions taken by intelligence, national secu- rity, or homeland security agencies; ‘‘(2) calculations of the time between the date on which the reported data is reported and the date on which the reported data is used by law enforcement, intelligence, national security, or homeland security agencies, whether through the use of— ‘‘(A) a subpoena or warrant; or ‘‘(B) other legal process or action; ‘‘(3) an analysis of the transactions associated with the reported data, including whether— ‘‘(A) the suspicious accounts that are the subject of the reported data were held by legal entities or individuals; and ‘‘(B) there are trends and patterns in cross-border transactions to certain countries; ‘‘(4) the number of legal entities and individuals identified by the reported data; ‘‘(5) information on the extent to which arrests, in- dictments, convictions, criminal pleas, civil enforce- ment or forfeiture actions, or actions by national se- curity, intelligence, or homeland security agencies were related to the use of the reported data; and ‘‘(6) data on the investigations carried out by State and Federal authorities resulting from the reported data. ‘‘(b) REPORT.—Beginning with the fifth report sub- mitted under subsection (a), and once every 5 years thereafter, that report shall include a section describ- ing the use of data derived from reporting by financial institutions under the Bank Secrecy Act over the 5 years preceding the date on which the report is sub- mitted, which shall include a description of long-term trends and the use of long-term statistics, metrics, and other information. ‘‘(c) TRENDS, PATTERNS, AND THREATS.—Each report required under subsection (a) and each section included under subsection (b) shall contain a description of ret- rospective trends and emerging patterns and threats in money laundering and the financing of terrorism, in- cluding national and regional trends, patterns, and threats relevant to the classes of financial institutions that the Attorney General determines appropriate. ‘‘(d) USE OF REPORT INFORMATION.—The Secretary shall use the information reported under subsections (a), (b), and (c)— ‘‘(1) to help assess the usefulness of reporting under the Bank Secrecy Act to— ‘‘(A) criminal and civil law enforcement agencies; ‘‘(B) intelligence, defense, and homeland security agencies; and ‘‘(C) Federal functional regulators; ‘‘(2) to enhance feedback and communications with financial institutions and other entities subject to re- quirements under the Bank Secrecy Act, including by providing more detail in the reports published and distributed under section 314(d) of the USA PATRIOT Act (31 U.S.C. 5311 note); ‘‘(3) to assist FinCEN [Financial Crimes Enforce- ment Network of Department of the Treasury] in con- sidering revisions to the reporting requirements pro- mulgated under section 314(d) of the USA PATRIOT Act (31 U.S.C. 5311 note); and ‘‘(4) for any other purpose the Secretary determines is appropriate. ‘‘(e) CONFIDENTIALITY.—Any information received by a financial institution under this section shall be sub- ject to confidentiality requirements established by the Secretary.’’ [For definitions of terms used in section 6201 of Pub. L. 116–283, set out above, see section 6003 of Pub. L. 116–283, set out below.] ESTABLISHMENT OF BANK SECRECY ACT INNOVATION OFFICERS Pub. L. 116–283, div. F, title LXII, § 6208, Jan. 1, 2021, 134 Stat. 4573, provided that: ‘‘(a) APPOINTMENT OF OFFICERS.—Not later than 1 year after the effective date of the regulations promul- gated under subsection (d) of section 310 of title 31, United States Code, as added by section 6103 of this di- vision, an Innovation Officer shall be appointed within FinCEN [Financial Crimes Enforcement Network of De- partment of the Treasury] and each Federal functional regulator. ‘‘(b) INNOVATION OFFICER.—The Innovation Officer shall be appointed by, and report to, the Director of FinCEN or the head of the Federal functional regu- lator, as applicable. ‘‘(c) DUTIES.—Each Innovation Officer, in coordina- tion with other Innovation Officers and the agencies of the Innovation Officers, shall— ‘‘(1) provide outreach to law enforcement agencies, State bank supervisors, financial institutions and as- sociations of financial institutions, agents of finan- cial institutions, and other persons (including service providers, vendors and technology companies) with respect to innovative methods, processes, and new technologies that may assist in compliance with the requirements of the Bank Secrecy Act; ‘‘(2) provide technical assistance or guidance relat- ing to the implementation of responsible innovation and new technology by financial institutions and as- sociations of financial institutions, agents of finan- cial institutions, and other persons (including service providers, vendors and technology companies), in a manner that complies with the requirements of the Bank Secrecy Act; ‘‘(3) if appropriate, explore opportunities for public- private partnerships; and Page 435 TITLE 31—MONEY AND FINANCE § 5311 ‘‘(4) if appropriate, develop metrics of success.’’ [For definitions of terms used in section 6208 of Pub. L. 116–283, set out above, see section 6003 of Pub. L. 116–283, set out below.] FINANCIAL CRIMES TECH SYMPOSIUM Pub. L. 116–283, div. F, title LXII, § 6211, Jan. 1, 2021, 134 Stat. 4575, provided that: ‘‘(a) PURPOSE.—The purposes of this section are to— ‘‘(1) promote greater international collaboration in the effort to prevent and detect financial crimes and suspicious activities; and ‘‘(2) facilitate the investigation, development, and timely adoption of new technologies aimed at pre- venting and detecting financial crimes and other il- licit activities. ‘‘(b) PERIODIC MEETINGS.—The Secretary [of the Treasury] shall, in coordination with the Sub- committee on Innovation and Technology established under subsection (d) of section 1564 of the Annunzio- Wylie Anti-Money Laundering Act, as added by section 6207 of this division [section 1564(d) of title XV of Pub. L. 102–550, set out as a note below], periodically con- vene a global anti-money laundering and financial crime symposium focused on how new technology can be used to more effectively combat financial crimes and other illicit activities. ‘‘(c) ATTENDEES.—Attendees at each symposium con- vened under this section shall include domestic and international financial regulators, senior executives from regulated firms, technology providers, representa- tives from law enforcement and national security agen- cies, academic and other experts, and other individuals that the Secretary determines are appropriate. ‘‘(d) PANELS.—At each symposium convened under this section, the Secretary shall convene panels in order to review new technologies and permit attendees to demonstrate proof of concept. ‘‘(e) IMPLEMENTATION AND REPORTS.—The Secretary shall, to the extent practicable and necessary, work to provide policy clarity, which may include providing re- ports or guidance to stakeholders, regarding innovative technologies and practices presented at each sympo- sium convened under this section, to the extent that those technologies and practices further the purposes of this section. ‘‘(f) FINCEN BRIEFING.—Not later than 90 days after the date of enactment of this Act [Jan. 1, 2021], the Di- rector of FinCEN [Financial Crimes Enforcement Net- work of the Department of the Treasury] shall brief the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the use of emerging technologies, including— ‘‘(1) the status of implementation and internal use of emerging technologies, including artificial intel- ligence, digital identity technologies, distributed ledger technologies, and other innovative tech- nologies within FinCEN; ‘‘(2) whether artificial intelligence, digital identity technologies, distributed ledger technologies, and other innovative technologies can be further lever- aged to make data analysis by FinCEN more efficient and effective; ‘‘(3) whether FinCEN could better use artificial in- telligence, digital identity technologies, distributed ledger technologies, and other innovative tech- nologies to— ‘‘(A) more actively analyze and disseminate the information FinCEN collects and stores to provide investigative leads to Federal, State, Tribal, and local law enforcement agencies and other Federal agencies; and ‘‘(B) better support ongoing investigations by FinCEN when referring a case to the agencies de- scribed in subparagraph (A); ‘‘(4) with respect to each of paragraphs (1), (2), and (3), any best practices or significant concerns identi- fied by the Director, and their applicability to artifi- cial intelligence, digital identity technologies, dis- tributed ledger technologies, and other innovative technologies with respect to United States efforts to combat money laundering and other forms of illicit finance; ‘‘(5) any policy recommendations that could facili- tate and improve communication and coordination between the private sector, FinCEN, and the agencies described in paragraph (3) through the implementa- tion of innovative approaches to meet the obligations of the agencies under the Bank Secrecy Act and anti- money laundering compliance; and ‘‘(6) any other matter the Director determines is appropriate.’’ [For definition of ‘‘Bank Secrecy Act’’ as used in sec- tion 6211 of Pub. L. 116–283, set out above, see section 6003 of Pub. L. 116–283, set out below.] SUPERVISORY TEAM FOR ENCOURAGING INFORMATION SHARING AND PUBLIC-PRIVATE PARTNERSHIPS Pub. L. 116–283, div. F, title LXII, § 6214, Jan. 1, 2021, 134 Stat. 4579, as amended by Pub. L. 117–81, div. F, title LXI, § 6106(a), Dec. 27, 2021, 135 Stat. 2387, provided that: ‘‘(a) IN GENERAL.—The Secretary [of the Treasury] shall convene a supervisory team of relevant Federal agencies, private sector experts in banking, national security, and law enforcement, and other stakeholders to examine strategies to increase cooperation between the public and private sectors for purposes of coun- tering illicit finance, including proliferation finance and sanctions evasion. ‘‘(b) MEETINGS.—The supervisory team convened under subsection (a) shall meet periodically to advise on strategies for the purposes of countering illicit fi- nance, including proliferation finance and sanctions evasion. ‘‘(c) FEDERAL ADVISORY COMMITTEE ACT.—The Fed- eral Advisory Committee Act ([former] 5 U.S.C. App.) [see 5 U.S.C. 1001 et seq.] shall not apply to the super- visory team convened under subsection (a) or to the ac- tivities of the supervisory team.’’ REVIEW OF REGULATIONS AND GUIDANCE Pub. L. 116–283, div. F, title LXII, § 6216, Jan. 1, 2021, 134 Stat. 4582, provided that: ‘‘(a) IN GENERAL.—The Secretary [of the Treasury], in consultation with the Federal functional regulators, the Financial Institutions Examination Council, the Attorney General, Federal law enforcement agencies, the Director of National Intelligence, the Secretary of Homeland Security, and the Commissioner of Internal Revenue, shall— ‘‘(1) undertake a formal review of the regulations implementing the Bank Secrecy Act and guidance re- lated to that Act— ‘‘(A) to ensure the Department of the Treasury provides, on a continuing basis, for appropriate safeguards to protect the financial system from threats, including money laundering and the fi- nancing of terrorism and proliferation, to national security posed by various forms of financial crime; ‘‘(B) to ensure that those provisions will continue to require certain reports or records that are highly useful in countering financial crime; and ‘‘(C) to identify those regulations and guidance that— ‘‘(i) may be outdated, redundant, or otherwise do not promote a risk-based anti-money laun- dering compliance and countering the financing of terrorism regime for financial institutions; or ‘‘(ii) do not conform with the commitments of the United States to meet international stand- ards to combat money laundering, financing of terrorism, serious tax fraud, or other financial crimes; and ‘‘(2) make appropriate changes to the regulations and guidance described in paragraph (1) to improve, as appropriate, the efficiency of those provisions. ‘‘(b) PUBLIC COMMENT.—The Secretary shall solicit public comment as part of the review required under subsection (a). Page 436 TITLE 31—MONEY AND FINANCE § 5311 ‘‘(c) REPORT.—Not later than 1 year after the date of enactment of this Act [Jan. 1, 2021], the Secretary, in consultation with the Financial Institutions Examina- tion Council, the Federal functional regulators, the At- torney General, Federal law enforcement agencies, the Director of National Intelligence, the Secretary of Homeland Security, and the Commissioner of Internal Revenue, shall submit to Congress a report that con- tains all findings and determinations made in carrying out the review required under subsection (a), including administrative or legislative recommendations.’’ [For definitions of ‘‘Federal functional regulator’’ and ‘‘Bank Secrecy Act’’ as used in section 6216 of Pub. L. 116–283, set out above, see section 6003 of Pub. L. 116–283, set out below.] ESTABLISHMENT OF BANK SECRECY ACT INFORMATION SECURITY OFFICERS Pub. L. 116–283, div. F, title LXIII, § 6303, Jan. 1, 2021, 134 Stat. 4585, provided that: ‘‘(a) APPOINTMENT OF OFFICERS.—Not later than 1 year after the effective date of the regulations promul- gated under subsection (d) of section 310 of title 31, United States Code, as added by section 6103 of this di- vision, a Bank Secrecy Act Information Security Offi- cer shall be appointed, from among individuals with ex- pertise in Federal information security or privacy laws or Bank Secrecy Act disclosure policies and proce- dures— ‘‘(1) within each Federal functional regulator, by the head of the Federal functional regulator; ‘‘(2) within FinCEN [Financial Crimes Enforcement Network of the Department of the Treasury], by the Director of FinCEN; and ‘‘(3) within the Internal Revenue Service, by the Secretary. ‘‘(b) DUTIES.—Each Bank Secrecy Act Information Security Officer shall, with respect to the applicable regulator, bureau, or Center within which the Officer is located— ‘‘(1) be consulted each time Bank Secrecy Act regu- lations affecting information security or disclosure of Bank Secrecy Act information are developed or re- viewed; ‘‘(2) be consulted on information-sharing policies under the Bank Secrecy Act, including those that allow financial institutions to share information with each other and foreign affiliates, and those that allow Federal agencies to share with regulated entities; ‘‘(3) be consulted on coordination and clarity be- tween proposed Bank Secrecy Act regulations and in- formation security and confidentiality requirements, including with respect to the reporting of suspicious transactions under section 5318(g) of title 31, United States Code; ‘‘(4) be consulted on— ‘‘(A) the development of new technologies that may strengthen information security and compli- ance with the Bank Secrecy Act; and ‘‘(B) the protection of information collected by each Federal functional regulator under the Bank Secrecy Act; and ‘‘(5) develop metrics of program success.’’ [For definitions of ‘‘Bank Secrecy Act’’ and ‘‘Federal functional regulator’’ as used in section 6303 of Pub. L. 116–283, set out above, see section 6003 of Pub. L. 116–283, set out below.] REVISED DUE DILIGENCE RULEMAKING Pub. L. 116–283, div. F, title LXIV, § 6403(d), Jan. 1, 2021, 134 Stat. 4624, provided that: ‘‘(1) IN GENERAL.—Not later than 1 year after the ef- fective date of the regulations promulgated under sec- tion 5336(b)(4) of title 31, United States Code, as added by subsection (a) of this section, the Secretary of the Treasury shall revise the final rule entitled ‘Customer Due Diligence Requirements for Financial Institutions’ (81 Fed. Reg. 29397 (May 11, 2016)) to— ‘‘(A) bring the rule into conformance with this divi- sion [see Tables for classification] and the amend- ments made by this division; ‘‘(B) account for the access of financial institutions to beneficial ownership information filed by report- ing companies under section 5336, and provided in the form and manner prescribed by the Secretary [of the Treasury], in order to confirm the beneficial owner- ship information provided directly to the financial institutions to facilitate the compliance of those fi- nancial institutions with anti-money laundering, countering the financing of terrorism, and customer due diligence requirements under applicable law; and ‘‘(C) reduce any burdens on financial institutions and legal entity customers that are, in light of the enactment of this division and the amendments made by this division, unnecessary or duplicative. ‘‘(2) CONFORMANCE.— ‘‘(A) IN GENERAL.—In carrying out paragraph (1), the Secretary of the Treasury shall rescind para- graphs (b) through (j) of section 1010.230 of title 31, Code of Federal Regulations upon the effective date of the revised rule promulgated under this sub- section. ‘‘(B) RULE OF CONSTRUCTION.—Nothing in this sec- tion may be construed to authorize the Secretary of the Treasury to repeal the requirement that financial institutions identify and verify beneficial owners of legal entity customers under section 1010.230(a) of title 31, Code of Federal Regulations. ‘‘(3) CONSIDERATIONS.—In fulfilling the requirements under this subsection, the Secretary of the Treasury shall consider— ‘‘(A) the use of risk-based principles for requiring reports of beneficial ownership information; ‘‘(B) the degree of reliance by financial institutions on information provided by FinCEN [Financial Crimes Enforcement Network of the Department of the Treasury] for purposes of obtaining and updating beneficial ownership information; ‘‘(C) strategies to improve the accuracy, complete- ness, and timeliness of the beneficial ownership infor- mation reported to the Secretary; and ‘‘(D) any other matter that the Secretary deter- mines is appropriate.’’ [For definition of ‘‘financial institution’’ as used in section 6403(d) of Pub. L. 116–283, set out above, see sec- tion 6003 of Pub. L. 116–283, set out below.] STATEMENT OF POLICY Pub. L. 116–283, div. H, title XCVII, § 9712, Jan. 1, 2021, 134 Stat. 4838, provided that: ‘‘It is the policy of the United States to— ‘‘(1) protect the United States financial sector from abuse by malign actors; and ‘‘(2) use all available financial tools to counter ad- versaries.’’ STORED VALUE Pub. L. 111–24, title V, § 503, May 22, 2009, 123 Stat. 1756, provided that: ‘‘(a) IN GENERAL.—Not later than 270 days after the date of enactment of this Act [May 22, 2009], the Sec- retary of the Treasury, in consultation with the Sec- retary of Homeland Security, shall issue regulations in final form implementing the Bank Secrecy Act [see Short Title note under section 1951 of Title 12, Banks and Banking], regarding the sale, issuance, redemption, or international transport of stored value, including stored value cards. ‘‘(b) CONSIDERATION OF INTERNATIONAL TRANSPORT.— Regulations under this section regarding international transport of stored value may include reporting re- quirements pursuant to section 5316 of title 31, United States Code. ‘‘(c) EMERGING METHODS FOR TRANSMITTAL AND STOR- AGE IN ELECTRONIC FORM.—Regulations under this sec- tion shall take into consideration current and future needs and methodologies for transmitting and storing value in electronic form.’’ IMPROVEMENT OF INTERNATIONAL STANDARDS AND COOPERATION TO FIGHT TERRORIST FINANCING Pub. L. 108–458, title VII, §§ 7701, 7702, 7704, Dec. 17, 2004, 118 Stat. 3858–3860, provided that: Page 437 TITLE 31—MONEY AND FINANCE § 5311 ‘‘SEC. 7701. IMPROVING INTERNATIONAL STAND- ARDS AND COOPERATION TO FIGHT TER- RORIST FINANCING. ‘‘(a) FINDINGS.—Congress makes the following find- ings: ‘‘(1) The global war on terrorism and cutting off terrorist financing is a policy priority for the United States and its partners, working bilaterally and mul- tilaterally through the United Nations, the United Nations Security Council and its committees, such as the 1267 and 1373 Committees, the Financial Action Task Force (FATF), and various international finan- cial institutions, including the International Mone- tary Fund (IMF), the International Bank for Recon- struction and Development (IBRD), and the regional multilateral development banks, and other multilat- eral fora. ‘‘(2) The international financial community has be- come engaged in the global fight against terrorist fi- nancing. The Financial Action Task Force has fo- cused on the new threat posed by terrorist financing to the international financial system, resulting in the establishment of the FATF’s Eight Special Rec- ommendations on Terrorist Financing as the inter- national standard on combating terrorist financing. The Group of Seven and the Group of Twenty Finance Ministers are developing action plans to curb the fi- nancing of terror. In addition, other economic and re- gional fora, such as the Asia-Pacific Economic Co- operation (APEC) Forum, and the Western Hemi- sphere Financial Ministers, have been used to mar- shal political will and actions in support of com- bating the financing of terrorism (CFT) standards. ‘‘(3) FATF’s Forty Recommendations on Money Laundering and the Eight Special Recommendations on Terrorist Financing are the recognized global standards for fighting money laundering and terrorist financing. The FATF has engaged in an assessment process for jurisdictions based on their compliance with these standards. ‘‘(4) In March 2004, the IMF and IBRD Boards agreed to make permanent a pilot program of collaboration with the FATF to assess global compliance with the FATF Forty Recommendations on Money Laundering and the Eight Special Recommendations on Terrorist Financing. As a result, anti-money laundering (AML) and combating the financing of terrorism (CFT) as- sessments are now a regular part of their Financial Sector Assessment Program (FSAP) and Offshore Fi- nancial Center assessments, which provide for a com- prehensive analysis of the strength of a jurisdiction’s financial system. These reviews assess potential sys- temic vulnerabilities, consider sectoral development needs and priorities, and review the state of imple- mentation of and compliance with key financial codes and regulatory standards, among them the AML and CFT standards. ‘‘(5) To date, 70 FSAPs have been conducted, with over 24 of those incorporating AML and CFT assess- ments. The international financial institutions (IFIs), the FATF, and the FATF-style regional bodies together are expected to assess AML and CFT re- gimes in up to 40 countries or jurisdictions per year. This will help countries and jurisdictions identify de- ficiencies in their AML and CFT regimes and help focus technical assistance efforts. ‘‘(6) Technical assistance programs from the United States and other nations, coordinated with the De- partment of State and other departments and agen- cies, are playing an important role in helping coun- tries and jurisdictions address shortcomings in their AML and CFT regimes and bringing their regimes into conformity with international standards. Train- ing is coordinated within the United States Govern- ment, which leverages multilateral organizations and bodies and international financial institutions to internationalize the conveyance of technical assist- ance. ‘‘(7) In fulfilling its duties in advancing incorpora- tion of AML and CFT standards into the IFIs as part of the IFIs’ work on protecting the integrity of the international monetary system, the Department of the Treasury, under the guidance of the Secretary of the Treasury, has effectively brought together all of the key United States Government agencies. In par- ticular, United States Government agencies continue to work together to foster broad support for this im- portant undertaking in various multilateral fora, and United States Government agencies recognize the need for close coordination and communication with- in our own Government. ‘‘(b) SENSE OF CONGRESS REGARDING SUCCESS IN MUL- TILATERAL ORGANIZATIONS.—It is the sense of Congress that the Secretary of the Treasury should continue to promote the dissemination of international AML and CFT standards, and to press for full implementation of the FATF 40 + 8 Recommendations by all countries in order to curb financial risks and hinder terrorist fi- nancing around the globe. The efforts of the Secretary in this regard should include, where necessary or appro- priate, multilateral action against countries whose counter-money laundering regimes and efforts against the financing of terrorism fall below recognized inter- national standards. ‘‘SEC. 7702. DEFINITIONS. ‘‘In this subtitle [subtitle G (§§ 7701–7704) of title VII of Pub. L. 108–458, amending sections 262o–2 and 262r–4 of Title 22, Foreign Relations and Intercourse]— ‘‘(1) the term ‘international financial institutions’ has the same meaning as in section 1701(c)(2) of the International Financial Institutions Act [22 U.S.C. 262r(c)(2)]; ‘‘(2) the term ‘Financial Action Task Force’ means the international policy-making and standard-setting body dedicated to combating money laundering and terrorist financing that was created by the Group of Seven in 1989; and ‘‘(3) the terms ‘Interagency Paper on Sound Prac- tices to Strengthen the Resilience of the U.S. Finan- cial System’ and ‘Interagency Paper’ mean the inter- agency paper prepared by the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Securities and Exchange Commis- sion that was announced in the Federal Register on April 8, 2003. ‘‘SEC. 7704. COORDINATION OF UNITED STATES GOVERNMENT EFFORTS. ‘‘The Secretary of the Treasury, or the designee of the Secretary, as the lead United States Government official to the Financial Action Task Force (FATF), shall continue to convene the interagency United States Government FATF working group. This group, which includes representatives from all relevant Fed- eral agencies, shall meet at least once a year to advise the Secretary on policies to be pursued by the United States regarding the development of common inter- national AML and CFT standards, to assess the ade- quacy and implementation of such standards, and to recommend to the Secretary improved or new stand- ards, as necessary.’’ INTERNATIONAL MONEY LAUNDERING ABATEMENT AND FINANCIAL ANTI-TERRORISM ACT OF 2001; FINDINGS AND PURPOSES Pub. L. 107–56, title III, § 302, Oct. 26, 2001, 115 Stat. 296, as amended by Pub. L. 108–458, title VI, § 6202(c), Dec. 17, 2004, 118 Stat. 3745, provided that: ‘‘(a) FINDINGS.—The Congress finds that— ‘‘(1) money laundering, estimated by the Inter- national Monetary Fund to amount to between 2 and 5 percent of global gross domestic product, which is at least $600,000,000,000 annually, provides the finan- cial fuel that permits transnational criminal enter- prises to conduct and expand their operations to the detriment of the safety and security of American citi- zens; ‘‘(2) money laundering, and the defects in financial transparency on which money launderers rely, are Page 438 TITLE 31—MONEY AND FINANCE § 5311 critical to the financing of global terrorism and the provision of funds for terrorist attacks; ‘‘(3) money launderers subvert legitimate financial mechanisms and banking relationships by using them as protective covering for the movement of criminal proceeds and the financing of crime and terrorism, and, by so doing, can threaten the safety of United States citizens and undermine the integrity of United States financial institutions and of the global finan- cial and trading systems upon which prosperity and growth depend; ‘‘(4) certain jurisdictions outside of the United States that offer ‘offshore’ banking and related facili- ties designed to provide anonymity, coupled with weak financial supervisory and enforcement regimes, provide essential tools to disguise ownership and movement of criminal funds derived from, or used to commit, offenses ranging from narcotics trafficking, terrorism, arms smuggling, and trafficking in human beings, to financial frauds that prey on law-abiding citizens; ‘‘(5) transactions involving such offshore jurisdic- tions make it difficult for law enforcement officials and regulators to follow the trail of money earned by criminals, organized international criminal enter- prises, and global terrorist organizations; ‘‘(6) correspondent banking facilities are one of the banking mechanisms susceptible in some cir- cumstances to manipulation by foreign banks to per- mit the laundering of funds by hiding the identity of real parties in interest to financial transactions; ‘‘(7) private banking services can be susceptible to manipulation by money launderers, for example cor- rupt foreign government officials, particularly if those services include the creation of offshore ac- counts and facilities for large personal funds trans- fers to channel funds into accounts around the globe; ‘‘(8) United States anti-money laundering efforts are impeded by outmoded and inadequate statutory provisions that make investigations, prosecutions, and forfeitures more difficult, particularly in cases in which money laundering involves foreign persons, foreign banks, or foreign countries; ‘‘(9) the ability to mount effective counter-meas- ures to international money launderers requires na- tional, as well as bilateral and multilateral action, using tools specially designed for that effort; and ‘‘(10) the Basle Committee on Banking Regulation and Supervisory Practices and the Financial Action Task Force on Money Laundering, of both of which the United States is a member, have each adopted international anti-money laundering principles and recommendations. ‘‘(b) PURPOSES.—The purposes of this title [see Short Title of 2001 Amendment note set out under section 5301 of this title] are— ‘‘(1) to increase the strength of United States meas- ures to prevent, detect, and prosecute international money laundering and the financing of terrorism; ‘‘(2) to ensure that— ‘‘(A) banking transactions and financial relation- ships and the conduct of such transactions and rela- tionships, do not contravene the purposes of sub- chapter II of chapter 53 of title 31, United States Code, section 21 of the Federal Deposit Insurance Act [12 U.S.C. 1829b], or chapter 2 of title I of Public Law 91–508 (84 Stat. 1116) [12 U.S.C. 1951 et seq.], or facilitate the evasion of any such provision; and ‘‘(B) the purposes of such provisions of law con- tinue to be fulfilled, and such provisions of law are effectively and efficiently administered; ‘‘(3) to strengthen the provisions put into place by the Money Laundering Control Act of 1986 (18 U.S.C. 981 note) [see Short Title of 1986 Amendment note set out under section 981 of Title 18, Crimes and Criminal Procedure], especially with respect to crimes by non- United States nationals and foreign financial institu- tions; ‘‘(4) to provide a clear national mandate for sub- jecting to special scrutiny those foreign jurisdictions, financial institutions operating outside of the United States, and classes of international transactions or types of accounts that pose particular, identifiable opportunities for criminal abuse; ‘‘(5) to provide the Secretary of the Treasury (in this title referred to as the ‘Secretary’) with broad discretion, subject to the safeguards provided by the Administrative Procedure Act under title 5, United States Code [5 U.S.C. 551 et seq., 701 et seq.], to take measures tailored to the particular money laundering problems presented by specific foreign jurisdictions, financial institutions operating outside of the United States, and classes of international transactions or types of accounts; ‘‘(6) to ensure that the employment of such meas- ures by the Secretary permits appropriate oppor- tunity for comment by affected financial institu- tions; ‘‘(7) to provide guidance to domestic financial insti- tutions on particular foreign jurisdictions, financial institutions operating outside of the United States, and classes of international transactions or types of accounts that are of primary money laundering con- cern to the United States Government; ‘‘(8) to ensure that the forfeiture of any assets in connection with the anti-terrorist efforts of the United States permits for adequate challenge con- sistent with providing due process rights; ‘‘(9) to clarify the terms of the safe harbor from civil liability for filing suspicious activity reports; ‘‘(10) to strengthen the authority of the Secretary to issue and administer geographic targeting orders, and to clarify that violations of such orders or any other requirement imposed under the authority con- tained in chapter 2 of title I of Public Law 91–508 [12 U.S.C. 1951 et seq.] and subchapter II of chapter 53 of title 31, United States Code, may result in criminal and civil penalties; ‘‘(11) to ensure that all appropriate elements of the financial services industry are subject to appropriate requirements to report potential money laundering transactions to proper authorities, and that jurisdic- tional disputes do not hinder examination of compli- ance by financial institutions with relevant reporting requirements; ‘‘(12) to strengthen the ability of financial institu- tions to maintain the integrity of their employee population; and ‘‘(13) to strengthen measures to prevent the use of the United States financial system for personal gain by corrupt foreign officials and to facilitate the repa- triation of any stolen assets to the citizens of coun- tries to whom such assets belong.’’ FOUR-YEAR CONGRESSIONAL REVIEW; EXPEDITED CONSIDERATION Pub. L. 107–56, title III, § 303, Oct. 26, 2001, 115 Stat. 298, as amended by Pub. L. 108–458, title VI, § 6202(d), Dec. 17, 2004, 118 Stat. 3745, which provided that, effec- tive on and after the first day of fiscal year 2005, the provisions of title III of Pub. L. 107–56 and the amend- ments made by such title would terminate if the Con- gress enacted a joint resolution, the text after the re- solving clause of which was as follows: ‘‘That provi- sions of the International Money Laundering Abate- ment and Financial Antiterrorism Act of 2001, and the amendments made thereby, shall no longer have the force of law.’’, was repealed by Pub. L. 108–458, title VI, §§ 6204, 6205, Dec. 17, 2004, 118 Stat. 3747, effective as if included in Pub. L. 107–56, as of the date of enactment of such Act. COOPERATIVE EFFORTS TO DETER MONEY LAUNDERING Pub. L. 107–56, title III, § 314, Oct. 26, 2001, 115 Stat. 307, as amended by Pub. L. 108–458, title VI, § 6202(f), Dec. 17, 2004, 118 Stat. 3745, provided that: ‘‘(a) COOPERATION AMONG FINANCIAL INSTITUTIONS, REGULATORY AUTHORITIES, AND LAW ENFORCEMENT AU- THORITIES.— Page 439 TITLE 31—MONEY AND FINANCE § 5311 ‘‘(1) REGULATIONS.—The Secretary [of the Treasury] shall, within 120 days after the date of enactment of this Act [Oct. 26, 2001], adopt regulations to encour- age further cooperation among financial institutions, their regulatory authorities, and law enforcement au- thorities, with the specific purpose of encouraging regulatory authorities and law enforcement authori- ties to share with financial institutions information regarding individuals, entities, and organizations en- gaged in, or reasonably suspected based on credible evidence of engaging in, terrorist acts or money laun- dering activities. ‘‘(2) COOPERATION AND INFORMATION SHARING PROCE- DURES.—The regulations adopted under paragraph (1) may include or create procedures for cooperation and information sharing focusing on— ‘‘(A) matters specifically related to the finances of terrorist groups, the means by which terrorist groups transfer funds around the world and within the United States, including through the use of charitable organizations, nonprofit organizations, and nongovernmental organizations, the extent to which financial institutions in the United States are unwittingly involved in such finances, and the extent to which such institutions are at risk as a result; ‘‘(B) the relationship, particularly the financial relationship, between international narcotics traf- fickers and foreign terrorist organizations, the ex- tent to which their memberships overlap and en- gage in joint activities, and the extent to which they cooperate with each other in raising and transferring funds for their respective purposes; and ‘‘(C) means of facilitating the identification of ac- counts and transactions involving terrorist groups and facilitating the exchange of information con- cerning such accounts and transactions between fi- nancial institutions and law enforcement organiza- tions. ‘‘(3) CONTENTS.—The regulations adopted pursuant to paragraph (1) may— ‘‘(A) require that each financial institution des- ignate 1 or more persons to receive information concerning, and monitor accounts of, individuals, entities, and organizations identified pursuant to paragraph (1); and ‘‘(B) further establish procedures for the protec- tion of the shared information, consistent with the capacity, size, and nature of the financial institu- tion to which the particular procedures apply. ‘‘(4) RULE OF CONSTRUCTION.—The receipt of infor- mation by a financial institution pursuant to this section shall not relieve or otherwise modify the obli- gations of the financial institution with respect to any other person or account. ‘‘(5) USE OF INFORMATION.—Information received by a financial institution pursuant to this section shall not be used for any purpose other than identifying and reporting on activities that may involve terrorist acts or money laundering activities. ‘‘(b) COOPERATION AMONG FINANCIAL INSTITUTIONS.— Upon notice provided to the Secretary, 2 or more finan- cial institutions and any association of financial insti- tutions may share information with one another re- garding individuals, entities, organizations, and coun- tries suspected of possible terrorist or money laun- dering activities. A financial institution or association that transmits, receives, or shares such information for the purposes of identifying and reporting activities that may involve terrorist acts or money laundering activities shall not be liable to any person under any law or regulation of the United States, any constitu- tion, law, or regulation of any State or political sub- division thereof, or under any contract or other legally enforceable agreement (including any arbitration agreement), for such disclosure or for any failure to provide notice of such disclosure to the person who is the subject of such disclosure, or any other person iden- tified in the disclosure, except where such trans- mission, receipt, or sharing violates this section or reg- ulations promulgated pursuant to this section. ‘‘(c) RULE OF CONSTRUCTION.—Compliance with the provisions of this title [see Short Title of 2001 Amend- ment note set out under section 5301 of this title] re- quiring or allowing financial institutions and any asso- ciation of financial institutions to disclose or share in- formation regarding individuals, entities, and organiza- tions engaged in or suspected of engaging in terrorist acts or money laundering activities shall not con- stitute a violation of the provisions of title V of the Gramm-Leach-Bliley Act (Public Law 106–102) [15 U.S.C. 6801 et seq.]. ‘‘(d) REPORTS TO THE FINANCIAL SERVICES INDUSTRY ON SUSPICIOUS FINANCIAL ACTIVITIES.—At least semi- annually, the Secretary shall— ‘‘(1) publish a report containing a detailed analysis identifying patterns of suspicious activity and other investigative insights derived from suspicious activ- ity reports and investigations conducted by Federal, State, and local law enforcement agencies to the ex- tent appropriate; and ‘‘(2) distribute such report to financial institutions (as defined in section 5312 of title 31, United States Code).’’ REPORT AND RECOMMENDATION ON LEGISLATIVE ACTION ON INTERNATIONAL COUNTER MONEY LAUNDERING PROVISIONS Pub. L. 107–56, title III, § 324, Oct. 26, 2001, 115 Stat. 316, provided that: ‘‘Not later than 30 months after the date of enactment of this Act [Oct. 26, 2001], the Sec- retary [of the Treasury], in consultation with the At- torney General, the Federal banking agencies (as de- fined at section 3 of the Federal Deposit Insurance Act [12 U.S.C. 1813]), the National Credit Union Administra- tion Board, the Securities and Exchange Commission, and such other agencies as the Secretary may deter- mine, at the discretion of the Secretary, shall evaluate the operations of the provisions of this subtitle [sub- title A (§§ 311–330) of title III of Pub. L. 107–56, enacting section 5318A of this title, amending sections 5312 and 5318 of this title, sections 1828 and 1842 of Title 12, Banks and Banking, sections 981, 983, and 1956 of Title 18, Crimes and Criminal Procedure, section 853 of Title 21, Food and Drugs, and sections 2466 and 2467 of Title 28, Judiciary and Judicial Procedure, and enacting pro- visions set out as notes under this section and section 5318 of this title, sections 1828 and 1842 of Title 12, and section 983 of Title 18] and make recommendations to Congress as to any legislative action with respect to this subtitle as the Secretary may determine to be nec- essary or advisable.’’ INTERNATIONAL COOPERATION ON IDENTIFICATION OF ORIGINATORS OF WIRE TRANSFERS Pub. L. 107–56, title III, § 328, Oct. 26, 2001, 115 Stat. 319, provided that: ‘‘The Secretary [of the Treasury] shall— ‘‘(1) in consultation with the Attorney General and the Secretary of State, take all reasonable steps to encourage foreign governments to require the inclu- sion of the name of the originator in wire transfer in- structions sent to the United States and other coun- tries, with the information to remain with the trans- fer from its origination until the point of disburse- ment; and ‘‘(2) report annually to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on— ‘‘(A) progress toward the goal enumerated in paragraph (1), as well as impediments to implemen- tation and an estimated compliance rate; and ‘‘(B) impediments to instituting a regime in which all appropriate identification, as defined by the Secretary, about wire transfer recipients shall be included with wire transfers from their point of origination until disbursement.’’ CRIMINAL PENALTIES Pub. L. 107–56, title III, § 329, Oct. 26, 2001, 115 Stat. 319, provided that: ‘‘Any person who is an official or Page 440 TITLE 31—MONEY AND FINANCE § 5311 employee of any department, agency, bureau, office, commission, or other entity of the Federal Govern- ment, and any other person who is acting for or on be- half of any such entity, who, directly or indirectly, in connection with the administration of this title [see Short Title of 2001 Amendment note set out under sec- tion 5301 of this title], corruptly demands, seeks, re- ceives, accepts, or agrees to receive or accept anything of value personally or for any other person or entity in return for— ‘‘(1) being influenced in the performance of any offi- cial act; ‘‘(2) being influenced to commit or aid in the com- mitting, or to collude in, or allow, any fraud, or make opportunity for the commission of any fraud, on the United States; or ‘‘(3) being induced to do or omit to do any act in violation of the official duty of such official or per- son, shall be fined in an amount not more than 3 times the monetary equivalent of the thing of value, or impris- oned for not more than 15 years, or both. A violation of this section shall be subject to chapter 227 of title 18, United States Code, and the provisions of the United States Sentencing Guidelines.’’ REPORT ON INVESTMENT COMPANIES Pub. L. 107–56, title III, § 356(c), Oct. 26, 2001, 115 Stat. 324, as amended by Pub. L. 108–458, title VI, § 6202(j), Dec. 17, 2004, 118 Stat. 3746, provided that: ‘‘(1) IN GENERAL.—Not later than 1 year after the date of enactment of this Act [Oct. 26, 2001], the Secretary [of the Treasury], the Board of Governors of the Fed- eral Reserve System, and the Securities and Exchange Commission shall jointly submit a report to the Con- gress on recommendations for effective regulations to apply the requirements of subchapter II of chapter 53 of title 31, United States Code, to investment companies pursuant to section 5312(a)(2)(I) of title 31, United States Code. ‘‘(2) DEFINITION.—For purposes of this subsection, the term ‘investment company’— ‘‘(A) has the same meaning as in section 3 of the In- vestment Company Act of 1940 (15 U.S.C. 80a–3); and ‘‘(B) includes any person that, but for the excep- tions provided for in paragraph (1) or (7) of section 3(c) of the Investment Company Act of 1940 (15 U.S.C. 80a–3(c)), would be an investment company. ‘‘(3) ADDITIONAL RECOMMENDATIONS.—The report re- quired by paragraph (1) may make different rec- ommendations for different types of entities covered by this subsection. ‘‘(4) BENEFICIAL OWNERSHIP OF PERSONAL HOLDING COM- PANIES.—The report described in paragraph (1) shall also include recommendations as to whether the Sec- retary should promulgate regulations to treat any cor- poration, business trust, or other grantor trust whose assets are predominantly securities, bank certificates of deposit, or other securities or investment instru- ments (other than such as relate to operating subsidi- aries of such corporation or trust) and that has 5 or fewer common shareholders or holders of beneficial or other equity interest, as a financial institution within the meaning of that phrase in section 5312(a)(2)(I) and whether to require such corporations or trusts to dis- close their beneficial owners when opening accounts or initiating funds transfers at any domestic financial in- stitution.’’ REPORT ON NEED FOR ADDITIONAL LEGISLATION RELATING TO INFORMAL MONEY TRANSFER SYSTEMS Pub. L. 107–56, title III, § 359(d), Oct. 26, 2001, 115 Stat. 329, provided that by 1 year after Oct. 26, 2001, the Sec- retary of the Treasury would report to Congress on the need for any additional legislation relating to persons who engage as a business in an informal money transfer system or any network of people who engage as a busi- ness in facilitating the transfer of money domestically or internationally outside of the conventional financial institutions system. UNIFORM STATE LICENSING AND REGULATION OF CHECK CASHING, CURRENCY EXCHANGE, AND MONEY TRANS- MITTING BUSINESSES Pub. L. 103–325, title IV, § 407, Sept. 23, 1994, 108 Stat. 2247, provided that: ‘‘(a) UNIFORM LAWS AND ENFORCEMENT.—For purposes of preventing money laundering and protecting the payment system from fraud and abuse, it is the sense of the Congress that the several States should— ‘‘(1) establish uniform laws for licensing and regu- lating businesses which— ‘‘(A) provide check cashing, currency exchange, or money transmitting or remittance services, or issue or redeem money orders, travelers’ checks, and other similar instruments; and ‘‘(B) are not depository institutions (as defined in section 5313(g) of title 31, United States Code); and ‘‘(2) provide sufficient resources to the appropriate State agency to enforce such laws and regulations prescribed pursuant to such laws. ‘‘(b) MODEL STATUTE.—It is the sense of the Congress that the several States should develop, through the auspices of the National Conference of Commissioners on Uniform State Laws, the American Law Institute, or such other forum as the States may determine to be appropriate, a model statute to carry out the goals de- scribed in subsection (a) which would include the fol- lowing: ‘‘(1) LICENSING REQUIREMENTS.—A requirement that any business described in subsection (a)(1) be licensed and regulated by an appropriate State agency in order to engage in any such activity within the State. ‘‘(2) LICENSING STANDARDS.—A requirement that— ‘‘(A) in order for any business described in sub- section (a)(1) to be licensed in the State, the appro- priate State agency shall review and approve— ‘‘(i) the business record and the capital ade- quacy of the business seeking the license; and ‘‘(ii) the competence, experience, integrity, and financial ability of any individual who— ‘‘(I) is a director, officer, or supervisory em- ployee of such business; or ‘‘(II) owns or controls such business; and ‘‘(B) any record, on the part of any business seek- ing the license or any person referred to in subpara- graph (A)(ii), of— ‘‘(i) any criminal activity; ‘‘(ii) any fraud or other act of personal dishon- esty; ‘‘(iii) any act, omission, or practice which con- stitutes a breach of a fiduciary duty; or ‘‘(iv) any suspension or removal, by any agency or department of the United States or any State, from participation in the conduct of any federally or State licensed or regulated business, may be grounds for the denial of any such license by the appropriate State agency. ‘‘(3) REPORTING REQUIREMENTS.—A requirement that any business described in subsection (a)(1)— ‘‘(A) disclose to the appropriate State agency the fees charged to consumers for services described in subsection (a)(1)(A); and ‘‘(B) conspicuously disclose to the public, at each location of such business, the fees charged to con- sumers for such services. ‘‘(4) PROCEDURES TO ENSURE COMPLIANCE WITH FED- ERAL CASH TRANSACTION REPORTING REQUIREMENTS.—A civil or criminal penalty for operating any business referred to in paragraph (1) without establishing and complying with appropriate procedures to ensure compliance with subchapter II of chapter 53 of title 31, United States Code (relating to records and re- ports on monetary instruments transactions). ‘‘(5) CRIMINAL PENALTIES FOR OPERATION OF BUSINESS WITHOUT A LICENSE.—A criminal penalty for operating any business referred to in paragraph (1) without a li- Page 441 TITLE 31—MONEY AND FINANCE § 5311 cense within the State after the end of an appropriate transition period beginning on the date of enactment of such model statute by the State. ‘‘(c) STUDY REQUIRED.—The Secretary of the Treasury shall conduct a study of— ‘‘(1) the progress made by the several States in de- veloping and enacting a model statute which— ‘‘(A) meets the requirements of subsection (b); and ‘‘(B) furthers the goals of— ‘‘(i) preventing money laundering by businesses which are required to be licensed under any such statute; and ‘‘(ii) protecting the payment system, including the receipt, payment, collection, and clearing of checks, from fraud and abuse by such businesses; and ‘‘(2) the adequacy of— ‘‘(A) the activity of the several States in enforc- ing the requirements of such statute; and ‘‘(B) the resources made available to the appro- priate State agencies for such enforcement activ- ity. ‘‘(d) REPORT REQUIRED.—Not later than the end of the 3-year period beginning on the date of enactment of this Act [Sept. 23, 1994] and not later than the end of each of the first two 1-year periods beginning after the end of such 3-year period, the Secretary of the Treasury shall submit a report to the Congress containing the findings and recommendations of the Secretary in con- nection with the study under subsection (c), together with such recommendations for legislative and admin- istrative action as the Secretary may determine to be appropriate. ‘‘(e) RECOMMENDATIONS IN CASES OF INADEQUATE REG- ULATION AND ENFORCEMENT BY STATES.—If the Sec- retary of the Treasury determines that any State has been unable to— ‘‘(1) enact a statute which meets the requirements described in subsection (b); ‘‘(2) undertake adequate activity to enforce such statute; or ‘‘(3) make adequate resources available to the ap- propriate State agency for such enforcement activ- ity, the report submitted pursuant to subsection (d) shall contain recommendations of the Secretary which are designed to facilitate the enactment and enforcement by the State of such a statute. ‘‘(f) FEDERAL FUNDING STUDY.— ‘‘(1) STUDY REQUIRED.—The Secretary of the Treas- ury shall conduct a study to identify possible avail- able sources of Federal funding to cover costs which will be incurred by the States in carrying out the purposes of this section. ‘‘(2) REPORT.—The Secretary of the Treasury shall submit a report to the Congress on the study con- ducted pursuant to paragraph (1) not later than the end of the 18-month period beginning on the date of enactment of this Act [Sept. 23, 1994].’’ ANTI-MONEY LAUNDERING TRAINING TEAM Pub. L. 102–550, title XV, § 1518, Oct. 28, 1992, 106 Stat. 4060, provided that: ‘‘The Secretary of the Treasury and the Attorney General shall jointly establish a team of experts to assist and provide training to foreign gov- ernments and agencies thereof in developing and ex- panding their capabilities for investigating and pros- ecuting violations of money laundering and related laws.’’ ADVISORY GROUP ON REPORTING REQUIREMENTS Pub. L. 102–550, title XV, § 1564, Oct. 28, 1992, 106 Stat. 4073, as amended by Pub. L. 116–283, div. F, title LXII, § 6207, title LXIII, § 6302, Jan. 1, 2021, 134 Stat. 4572, 4584; Pub. L. 117–286, § 4(a)(197), Dec. 27, 2022, 136 Stat. 4327, provided that: ‘‘(a) ESTABLISHMENT.—Not later than 90 days after the date of the enactment of this Act [Oct. 28, 1992], the Secretary of the Treasury shall establish a Bank Se- crecy Act Advisory Group consisting of representatives of the Department of the Treasury, the Department of Justice, and the Office of National Drug Control Policy and of other interested persons and financial institu- tions subject to the reporting requirements of sub- chapter II of chapter 53 of title 31, United States Code, or section 6050I of the Internal Revenue Code of 1986 [26 U.S.C. 6050I]. ‘‘(b) PURPOSES.—The Advisory Group shall provide a means by which the Secretary— ‘‘(1) informs private sector representatives, on a regular basis, of the ways in which the reports sub- mitted pursuant to the requirements referred to in subsection (a) have been used; ‘‘(2) informs private sector representatives, on a regular basis, of how information regarding sus- picious financial transactions provided voluntarily by financial institutions has been used; and ‘‘(3) receives advice on the manner in which the re- porting requirements referred to in subsection (a) should be modified to enhance the ability of law en- forcement agencies to use the information provided for law enforcement purposes. ‘‘(c) INAPPLICABILITY OF CHAPTER 10 OF TITLE 5, UNITED STATES CODE.—Chapter 10 of title 5, United States Code, shall not apply to the Bank Secrecy Act Advisory Group established pursuant to subsection (a). ‘‘(d) SUBCOMMITTEE ON INNOVATION AND TECHNOLOGY.— ‘‘(1) DEFINITIONS.—In this subsection, the terms ‘Bank Secrecy Act’, ‘State bank supervisor’, and ‘State credit union supervisor’ have the meanings given the terms in section 6003 of the Anti-Money Laundering Act of 2020 [div. F of Pub. L. 116–283; see note below]. ‘‘(2) ESTABLISHMENT.—There shall be within the Bank Secrecy Act Advisory Group a subcommittee to be known as the ‘Subcommittee on Innovation and Technology’ to— ‘‘(A) advise the Secretary of the Treasury regard- ing means by which the Department of the Treas- ury, FinCEN, the Federal functional regulators, State bank supervisors, and State credit union su- pervisors, as appropriate, can most effectively en- courage and support technological innovation in the area of anti-money laundering and countering the financing of terrorism and proliferation; and ‘‘(B) reduce, to the extent practicable, obstacles to innovation that may arise from existing regula- tions, guidance, and examination practices related to compliance of financial institutions with the Bank Secrecy Act. ‘‘(3) MEMBERSHIP.— ‘‘(A) IN GENERAL.—The subcommittee established under paragraph (1) shall consist of the representa- tives of the heads of the Federal functional regu- lators, including, as appropriate, the Bank Secrecy Act Innovation Officers as established in section 6208 of the Anti-Money Laundering Act of 2020 [see note above], a representative of State bank super- visors, a representative of State credit union super- visors, representatives of a cross-section of finan- cial institutions subject to the Bank Secrecy Act, law enforcement, FinCEN, and any other represent- ative as determined by the Secretary of the Treas- ury. ‘‘(B) REQUIREMENTS.—Each agency representative described in subparagraph (A) shall be an individual who has demonstrated knowledge and competence concerning the application of the Bank Secrecy Act. ‘‘(4) SUNSET.— ‘‘(A) IN GENERAL.—Except as provided in subpara- graph (B), the Subcommittee on Innovation and Technology shall terminate on the date that is 5 years after the date of enactment of this subsection [Jan. 1, 2021]. ‘‘(B) EXCEPTION.—The Secretary of the Treasury may renew the Subcommittee on Innovation for 1- year periods beginning on the date that is 5 years after the date of enactment of this subsection. Page 442 TITLE 31—MONEY AND FINANCE § 5311 ‘‘(e) SUBCOMMITTEE ON INFORMATION SECURITY AND CONFIDENTIALITY.— ‘‘(1) IN GENERAL.—There shall be within the Bank Secrecy Act Advisory Group a subcommittee to be known as the Subcommittee on Information Security and Confidentiality (in this subsection referred to as the ‘Subcommittee’) to advise the Secretary of the Treasury regarding the information security and con- fidentiality implications of regulations, guidance, in- formation sharing programs, and the examination for compliance with and enforcement of the provisions of the Bank Secrecy Act. ‘‘(2) MEMBERSHIP.— ‘‘(A) IN GENERAL.—The Subcommittee shall con- sist of the representatives of the heads of the Fed- eral functional regulators, including, as appro- priate, the Bank Secrecy Act Information Security Officers as established in section 6303 of the Anti- Money Laundering Act of 2020 [see note above], and representatives from financial institutions subject to the Bank Secrecy Act, law enforcement, FinCEN, and any other representatives as deter- mined by the Secretary of the Treasury. ‘‘(B) REQUIREMENTS.—Each agency representative described in subparagraph (A) shall be an individual who has demonstrated knowledge and competence concerning the application of the Bank Secrecy Act and familiarity with and expertise in applicable laws. ‘‘(3) SUNSET.— ‘‘(A) IN GENERAL.—Except as provided in subpara- graph (B), the Subcommittee shall terminate on the date that is 5 years after the date of enactment of this subsection [Jan. 1, 2021]. ‘‘(B) EXCEPTION.—The Secretary of the Treasury may renew the Subcommittee for 1-year periods be- ginning on the date that is 5 years after the date of enactment of this subsection. ‘‘(f) DEFINITIONS.—In this section: ‘‘(1) BANK SECRECY ACT.—The term ‘Bank Secrecy Act’ has the meaning given the term in section 6003 of the Anti-Money Laundering Act of 2020 [see note below]. ‘‘(2) FEDERAL FUNCTIONAL REGULATOR.—The term ‘Federal functional regulator’ has the meaning given the term in section 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6809). ‘‘(3) FINCEN.—The term ‘FinCEN’ means the Finan- cial Crimes Enforcement Network of the Department of the Treasury. ‘‘(4) FINANCIAL INSTITUTION.—The term ‘financial in- stitution’ has the meaning given the term in section 5312 of title 31, United States Code. ‘‘(5) STATE CREDIT UNION SUPERVISOR.—The term ‘State credit union supervisor’ means a State official described in section 107A(e) of the Federal Credit Union Act (12 U.S.C. 1757a(e)).’’ GAO FEASIBILITY STUDY OF FINANCIAL CRIMES ENFORCEMENT NETWORK Pub. L. 102–550, title XV, § 1565, Oct. 28, 1992, 106 Stat. 4074, provided that: ‘‘(a) STUDY REQUIRED.—The Comptroller General of the United States shall conduct a feasibility study of the Financial Crimes Enforcement Network (popularly referred to as ‘Fincen’) established by the Secretary of the Treasury in cooperation with other agencies and departments of the United States and appropriate Fed- eral banking agencies. ‘‘(b) SPECIFIC REQUIREMENTS.—In conducting the study required under subsection (a), the Comptroller General shall examine and evaluate— ‘‘(1) the extent to which Federal, State, and local governmental and nongovernmental organizations are voluntarily providing information which is nec- essary for the system to be useful for law enforce- ment purposes; ‘‘(2) the extent to which the operational guidelines established for the system provide for the coordi- nated and efficient entry of information into, and withdrawal of information from, the system; ‘‘(3) the extent to which the operating procedures established for the system provide appropriate stand- ards or guidelines for determining— ‘‘(A) who is to be given access to the information in the system; ‘‘(B) what limits are to be imposed on the use of such information; and ‘‘(C) how information about activities or relation- ships which involve or are closely associated with the exercise of constitutional rights is to be screened out of the system; and ‘‘(4) the extent to which the operating procedures established for the system provide for the prompt verification of the accuracy and completeness of in- formation entered into the system and the prompt deletion or correction of inaccurate or incomplete in- formation. ‘‘(c) REPORT TO CONGRESS.—Before the end of the 1- year period, beginning on the date of the enactment of this Act [Oct. 28, 1992], the Comptroller General of the United States shall submit a report to the Congress containing the findings and conclusions of the Comp- troller General in connection with the study conducted pursuant to subsection (a), together with such rec- ommendations for legislative or administrative action as the Comptroller General may determine to be appro- priate.’’ REPORTS ON USES MADE OF CURRENCY TRANSACTION REPORTS Pub. L. 101–647, title I, § 101, Nov. 29, 1990, 104 Stat. 4789, provided that: ‘‘Not later than 180 days after the effective date of this section [Nov. 29, 1990], and every 2 years for 4 years, the Secretary of the Treasury shall report to the Congress the following: ‘‘(1) the number of each type of report filed pursu- ant to subchapter II of chapter 53 of title 31, United States Code (or regulations promulgated thereunder) in the previous fiscal year; ‘‘(2) the number of reports filed pursuant to section 6050I of the Internal Revenue Code of 1986 [26 U.S.C. 6050I] (regarding transactions involving currency) in the previous fiscal year; ‘‘(3) an estimate of the rate of compliance with the reporting requirements by persons required to file the reports referred to in paragraphs (1) and (2); ‘‘(4) the manner in which the Department of the Treasury and other agencies of the United States col- lect, organize, analyze and use the reports referred to in paragraphs (1) and (2) to support investigations and prosecutions of (A) violations of the criminal laws of the United States, (B) violations of the laws of foreign countries, and (C) civil enforcement of the laws of the United States including the provisions re- garding asset forfeiture; ‘‘(5) a summary of sanctions imposed in the pre- vious fiscal year against persons who failed to comply with the reporting requirements referred to in para- graphs (1) and (2), and other steps taken to ensure maximum compliance; ‘‘(6) a summary of criminal indictments filed in the previous fiscal year which resulted, in large part, from investigations initiated by analysis of the re- ports referred to in paragraphs (1) and (2); and ‘‘(7) a summary of criminal indictments filed in the previous fiscal year which resulted, in large part, from investigations initiated by information regard- ing suspicious financial transactions provided volun- tarily by financial institutions.’’ INTERNATIONAL CURRENCY TRANSACTION REPORTING Pub. L. 100–690, title IV, § 4701, Nov. 18, 1988, 102 Stat. 4290, stated Congressional findings concerning success of cash transaction and money laundering control stat- utes in United States and desirability of United States playing a leadership role in development of similar international system, urged United States Government to seek active cooperation of other countries in en- forcement of such statutes, urged Secretary of the Page 443 TITLE 31—MONEY AND FINANCE § 5311 Treasury to negotiate with finance ministers of foreign countries to establish an international currency con- trol agency to serve as central source of information and database for international drug enforcement agen- cies to collect and analyze currency transaction reports filed by member countries, and encouraged adoption, by member countries, of uniform cash transaction and money laundering statutes, prior to repeal by Pub. L. 102–583, § 6(e)(1), Nov. 2, 1992, 106 Stat. 4933. RESTRICTIONS ON LAUNDERING OF UNITED STATES CURRENCY Pub. L. 100–690, title IV, § 4702, Nov. 18, 1988, 102 Stat. 4291, as amended by Pub. L. 103–447, title I, § 103(b), Nov. 2, 1994, 108 Stat. 4693, provided that: ‘‘(a) FINDINGS.—The Congress finds that international currency transactions, especially in United States cur- rency, that involve the proceeds of narcotics traf- ficking fuel trade in narcotics in the United States and worldwide and consequently are a threat to the na- tional security of the United States. ‘‘(b) PURPOSE.—The purpose of this section is to pro- vide for international negotiations that would expand access to information on transactions involving large amounts of United States currency wherever those transactions occur worldwide. ‘‘(c) NEGOTIATIONS.—(1) The Secretary of the Treas- ury (hereinafter in this section referred to as the ‘Sec- retary’) shall enter into negotiations with the appro- priate financial supervisory agencies and other officials of any foreign country the financial institutions of which do business in United States currency. Highest priority shall be attached to countries whose financial institutions the Secretary determines, in consultation with the Attorney General and the Director of National Drug Control Policy, may be engaging in currency transactions involving the proceeds of international narcotics trafficking, particularly United States cur- rency derived from drug sales in the United States. ‘‘(2) The purposes of negotiations under this sub- section are— ‘‘(A) to reach one or more international agreements to ensure that foreign banks and other financial in- stitutions maintain adequate records of large United States currency transactions, and ‘‘(B) to establish a mechanism whereby such records may be made available to United States law enforcement officials. In carrying out such negotiations, the Secretary should seek to enter into and further cooperative efforts, vol- untary information exchanges, the use of letters roga- tory, and mutual legal assistance treaties. ‘‘(d) REPORTS.—Not later than 1 year after the date of enactment of this Act [Nov. 18, 1988], the Secretary shall submit an interim report to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Hous- ing, and Urban Affairs of the Senate on progress in the negotiations under subsection (c). Not later than 2 years after such enactment, the Secretary shall submit a final report to such Committees and the President on the outcome of those negotiations and shall identify, in consultation with the Attorney General and the Direc- tor of National Drug Control Policy, countries— ‘‘(1) with respect to which the Secretary determines there is evidence that the financial institutions in such countries are engaging in currency transactions involving the proceeds of international narcotics trafficking; and ‘‘(2) which have not reached agreement with United States authorities on a mechanism for exchanging adequate records on international currency trans- actions in connection with narcotics investigations and proceedings. ‘‘(e) AUTHORITY.—If after receiving the advice of the Secretary and in any case at the time of receipt of the Secretary’s report, the Secretary determines that a for- eign country— ‘‘(1) has jurisdiction over financial institutions that are substantially engaging in currency transactions that effect [affect] the United States involving the proceeds of international narcotics trafficking; ‘‘(2) such country has not reached agreement on a mechanism for exchanging adequate records on inter- national currency transactions in connection with narcotics investigations and proceedings; and ‘‘(3) such country is not negotiating in good faith to reach such an agreement, the President shall impose appropriate penalties and sanctions, including temporarily or permanently— ‘‘(1) prohibiting such persons, institutions or other entities in such countries from participating in any United States dollar clearing or wire transfer system; and ‘‘(2) prohibiting such persons, institutions or enti- ties in such countries from maintaining an account with any bank or other financial institution char- tered under the laws of the United States or any State. Any penalties or sanctions so imposed may be delayed or waived upon certification of the President to the Congress that it is in the national interest to do so. Fi- nancial institutions in such countries that maintain adequate records shall be exempt from such penalties and sanctions. ‘‘(f) DEFINITIONS.—For the purposes of this section— ‘‘(1) The term ‘United States currency’ means Fed- eral Reserve Notes and United States coins. ‘‘(2) The term ‘adequate records’ means records of United States’ currency transactions in excess of $10,000 including the identification of the person initi- ating the transaction, the person’s business or occu- pation, and the account or accounts affected by the transaction, or other records of comparable effect.’’ INTERNATIONAL INFORMATION EXCHANGE SYSTEM; STUDY OF FOREIGN BRANCHES OF DOMESTIC INSTITU- TIONS Pub. L. 99–570, title I, § 1363, Oct. 27, 1986, 100 Stat. 3207–33, required the Secretary of the Treasury to ini- tiate discussions with the central banks or other appro- priate governmental authorities of other countries and propose that an information exchange system be estab- lished to reduce international flow of money derived from illicit drug operations and other criminal activi- ties and to report to Congress before the end of the 9- month period beginning Oct. 27, 1986. The Secretary of the Treasury was also required to conduct a study of (1) the extent to which foreign branches of domestic insti- tutions are used to facilitate illicit transfers of or to evade reporting requirements on transfers of coins, cur- rency, and other monetary instruments into and out of the United States; (2) the extent to which the law of the United States is applicable to the activities of such foreign branches; and (3) methods for obtaining the co- operation of the country in which any such foreign branch is located for purposes of enforcing the law of the United States with respect to transfers, and reports on transfers, of such monetary instruments into and out of the United States and to report to Congress be- fore the end of the 9-month period beginning Oct. 27, 1986. DEFINITIONS Pub. L. 116–283, div. F, § 6003, Jan. 1, 2021, 134 Stat. 4548, provided that: ‘‘In this division [see Tables for classification]: ‘‘(1) BANK SECRECY ACT.—The term ‘Bank Secrecy Act’ means— ‘‘(A) section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b); ‘‘(B) chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.); and ‘‘(C) subchapter II of chapter 53 of title 31, United States Code. ‘‘(2) ELECTRONIC FUND TRANSFER.—The term ‘elec- tronic fund transfer’ has the meaning given the term in section 903 of the Electronic Fund Transfer Act (15 U.S.C. 1693a). Page 444 TITLE 31—MONEY AND FINANCE § 5312 ‘‘(3) FEDERAL FUNCTIONAL REGULATOR.—The term ‘Federal functional regulator’— ‘‘(A) has the meaning given the term in section 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6809); and ‘‘(B) includes any Federal regulator that exam- ines a financial institution for compliance with the Bank Secrecy Act. ‘‘(4) FINANCIAL AGENCY.—The term ‘financial agen- cy’ has the meaning given the term in section 5312(a) of title 31, United States Code, as amended by section 6102 of this division. ‘‘(5) FINANCIAL INSTITUTION.—The term ‘financial in- stitution’— ‘‘(A) has the meaning given the term in section 5312 of title 31, United States Code; and ‘‘(B) includes— ‘‘(i) an electronic fund transfer network; and ‘‘(ii) a clearing and settlement system. ‘‘(6) FINCEN.—The term ‘FinCEN’ means the Finan- cial Crimes Enforcement Network of the Department of the Treasury. ‘‘(7) SECRETARY.—The term ‘Secretary’ means the Secretary of the Treasury. ‘‘(8) STATE BANK SUPERVISOR.—The term ‘State bank supervisor’ has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). ‘‘(9) STATE CREDIT UNION SUPERVISOR.—The term ‘State credit union supervisor’ means a State official described in section 107A(e) of the Federal Credit Union Act (12 U.S.C. 1757a(e)).’’ § 5312. Definitions and application (a) In this subchapter— (1) ‘‘financial agency’’ means a person acting for a person (except for a country, a monetary or financial authority acting as a monetary or financial authority, or an international finan- cial institution of which the United States Government is a member) as a financial insti- tution, bailee, depository trustee, or agent, or acting in a similar way related to money, credit, securities, gold, a transaction in money, credit, securities or gold, or a service provided with respect to money, securities, fu- tures, precious metals, stones and jewels, or value that substitutes for currency. (2) ‘‘financial institution’’ means— (A) an insured bank (as defined in section 3(h) of the Federal Deposit Insurance Act (12 U.S.C. 1813(h))); (B) a commercial bank or trust company; (C) a private banker; (D) an agency or branch of a foreign bank in the United States; (E) any credit union; (F) a thrift institution; (G) a broker or dealer registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.); (H) a broker or dealer in securities or com- modities; (I) an investment banker or investment company; (J) a currency exchange, or a business en- gaged in the exchange of currency, funds, or value that substitutes for currency or funds; (K) an issuer, redeemer, or cashier of trav- elers’ checks, checks, money orders, or simi- lar instruments; (L) an operator of a credit card system; (M) an insurance company; (N) a dealer in precious metals, stones, or jewels; (O) a pawnbroker; (P) a loan or finance company; (Q) a travel agency; (R) a licensed sender of money or any other person who engages as a business in the transmission of currency, funds, or value that substitutes for currency, including any person who engages as a business in an infor- mal money transfer system or any network of people who engage as a business in facili- tating the transfer of money domestically or internationally outside of the conventional financial institutions system; (S) a telegraph company; (T) a business engaged in vehicle sales, in- cluding automobile, airplane, and boat sales; (U) persons involved in real estate closings and settlements; (V) the United States Postal Service; (W) an agency of the United States Gov- ernment or of a State or local government carrying out a duty or power of a business described in this paragraph; (X) a casino, gambling casino, or gaming establishment with an annual gaming rev- enue of more than $1,000,000 which— (i) is licensed as a casino, gambling ca- sino, or gaming establishment under the laws of any State or any political subdivi- sion of any State; or (ii) is an Indian gaming operation con- ducted under or pursuant to the Indian Gaming Regulatory Act other than an op- eration which is limited to class I gaming (as defined in section 4(6) of such Act); (Y) any business or agency which engages in any activity which the Secretary of the Treasury determines, by regulation, to be an activity which is similar to, related to, or a substitute for any activity in which any business described in this paragraph is au- thorized to engage; or (Z) any other business designated by the Secretary whose cash transactions have a high degree of usefulness in criminal, tax, or regulatory matters. (3) ‘‘monetary instruments’’ means— (A) United States coins and currency; (B) as the Secretary may prescribe by reg- ulation, coins and currency of a foreign country, travelers’ checks, bearer negotiable instruments, bearer investment securities, bearer securities, stock on which title is passed on delivery, and similar material; (C) as the Secretary of the Treasury shall provide by regulation for purposes of sec- tions 5316 and 5331, checks, drafts, notes, money orders, and other similar instruments which are drawn on or by a foreign financial institution and are not in bearer form; and (D) as the Secretary shall provide by regu- lation, value that substitutes for any mone- tary instrument described in subparagraph (A), (B), or (C). (4) NONFINANCIAL TRADE OR BUSINESS.—The term ‘‘nonfinancial trade or business’’ means any trade or business other than a financial institution that is subject to the reporting re-