12 U.S.C. § 1829b — Retention of records by insured deposi-

Page 1134 TITLE 12—BANKS AND BANKING § 1829a PROVISIONS NOT REPEALED, MODIFIED OR AFFECTED Nothing contained in sections 201 to 205 and 207 of Pub. L. 89–695 amending sections 1813 and 1817 to 1820 and repealing section 77 of this title to be construed as repealing, modifying, or affecting this section, see sec- tion 206 of Pub. L. 89–695, set out as a note under sec- tion 1813 of this title. § 1829a. Participation by State nonmember in- sured banks in lotteries and related activi- ties (a) Prohibited activities A State nonmember insured bank may not— (1) deal in lottery tickets; (2) deal in bets used as a means or substitute for participation in a lottery; (3) announce, advertise, or publicize the ex- istence of any lottery; or (4) announce, advertise, or publicize the ex- istence or identity of any participant or win- ner, as such, in a lottery. (b) Use of banking premises prohibited A State nonmember insured bank may not permit— (1) the use of any part of any of its banking offices by any person for any purpose forbid- den to the bank under subsection (a), or (2) direct access by the public from any of its banking offices to any premises used by any person for any purpose forbidden to the bank under subsection (a). (c) Definitions As used in this section— (1) The term ‘‘deal in’’ includes making, tak- ing, buying, selling, redeeming, or collecting. (2) The term ‘‘lottery’’ includes any arrange- ment, other than a savings promotion raffle, whereby three or more persons (the ‘‘partici- pants’’) advance money or credit to another in exchange for the possibility or expectation that one or more but not all of the partici- pants (the ‘‘winners’’) will receive by reason of their advances more than the amounts they have advanced, the identity of the winners being determined by any means which in- cludes— (A) a random selection; (B) a game, race, or contest; or (C) any record or tabulation of the result of one or more events in which any partici- pant has no interest except for its bearing upon the possibility that he may become a winner. (3) The term ‘‘lottery ticket’’ includes any right, privilege, or possibility (and any ticket, receipt, record, or other evidence of any such right, privilege, or possibility), of becoming a winner in a lottery. (4) The term ‘‘savings promotion raffle’’ means a contest in which the sole consider- ation required for a chance of winning des- ignated prizes is obtained by the deposit of a specified amount of money in a savings ac- count or other savings program, where each ticket or entry has an equal chance of being drawn, such contest being subject to regula- tions that may from time to time be promul- gated by the appropriate prudential regulator (as defined in section 5481 of this title). (d) Lawful banking services connected with op- eration of lottery Nothing contained in this section prohibits a State nonmember insured bank from accepting deposits or cashing or otherwise handling checks or other negotiable instruments, or per- forming other lawful banking services for a State operating a lottery, or for an officer or employee of that State who is charged with the administration of the lottery. (e) Regulations; enforcement The Board of Directors shall prescribe such regulations as may be necessary to the strict en- forcement of this section and the prevention of evasions thereof. (Sept. 21, 1950, ch. 967, § 2[20], as added Pub. L. 90–203, § 3, Dec. 15, 1967, 81 Stat. 610; amended Pub. L. 103–325, title VI, § 602(a)(51), Sept. 23, 1994, 108 Stat. 2290; Pub. L. 113–251, § 3(c), Dec. 18, 2014, 128 Stat. 2889.) Editorial Notes AMENDMENTS 2014—Subsec. (c)(2). Pub. L. 113–251, § 3(c)(1), inserted ‘‘, other than a savings promotion raffle,’’ before ‘‘whereby’’ in introductory provisions. Subsec. (c)(4). Pub. L. 113–251, § 3(c)(2), added par. (4). 1994—Subsec. (a)(3). Pub. L. 103–325 inserted ‘‘or’’ at end. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Apr. 1, 1968, see section 6 of Pub. L. 90–203, set out as a note under section 25a of this title. § 1829b. Retention of records by insured deposi- tory institutions (a) Congressional findings and declaration of purpose (1) Findings Congress finds that— (A) adequate records maintained by in- sured depository institutions have a high de- gree of usefulness in criminal, tax, and regu- latory investigations or proceedings, and that, given the threat posed to the security of the Nation on and after the terrorist at- tacks against the United States on Sep- tember 11, 2001, such records may also have a high degree of usefulness in the conduct of intelligence or counterintelligence activi- ties, including analysis, to protect against domestic and international terrorism; and (B) microfilm or other reproductions and other records made by insured depository in- stitutions of checks, as well as records kept by such institutions, of the identity of per- sons maintaining or authorized to act with respect to accounts therein, have been of particular value in proceedings described in subparagraph (A). (2) Purpose It is the purpose of this section to require the maintenance of appropriate types of records by insured depository institutions in the United States where such records have a high degree of usefulness in criminal, tax, or Page 1135 TITLE 12—BANKS AND BANKING § 1829b regulatory investigations or proceedings, rec- ognizing that, given the threat posed to the se- curity of the Nation on and after the terrorist attacks against the United States on Sep- tember 11, 2001, such records may also have a high degree of usefulness in the conduct of in- telligence or counterintelligence activities, in- cluding analysis, to protect against inter- national terrorism. (b) Recordkeeping regulations (1) In general Where the Secretary of the Treasury (re- ferred to in this section as the ‘‘Secretary’’) determines that the maintenance of appro- priate types of records and other evidence by insured depository institutions has a high de- gree of usefulness in criminal, tax, or regu- latory investigations or proceedings, he shall prescribe regulations to carry out the purposes of this section. (2) Domestic funds transfers Whenever the Secretary and the Board of Governors of the Federal Reserve System (hereafter in this section referred to as the ‘‘Board’’) determine that the maintenance of records, by insured depository institutions, of payment orders which direct transfers of funds over wholesale funds transfer systems has a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, the Secretary and the Board shall jointly pre- scribe regulations to carry out the purposes of this section with respect to the maintenance of such records. (3) International funds transfers (A) In general The Secretary and the Board shall jointly prescribe, after consultation with State banking supervisors, final regulations re- quiring that insured depository institutions, businesses that provide check cashing serv- ices, money transmitting businesses, and businesses that issue or redeem money or- ders, travelers’ checks or other similar in- struments maintain such records of payment orders which— (i) involve international transactions; and (ii) direct transfers of funds over whole- sale funds transfer systems or on the books of any insured depository institu- tion, or on the books of any business that provides check cashing services, any money transmitting business, and any business that issues or redeems money or- ders, travelers’ checks or similar instru- ments, that will have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings. (B) Factors for consideration In prescribing the regulations required under subparagraph (A), the Secretary and the Board shall consider— (i) the usefulness in criminal, tax, or reg- ulatory investigations or proceedings of any record required to be maintained pur- suant to the proposed regulations; and (ii) the effect the recordkeeping required pursuant to such proposed regulations will have on the cost and efficiency of the pay- ment system. (C) Availability of records Any records required to be maintained pursuant to the regulations prescribed under subparagraph (A) shall be submitted or made available to the Secretary or the Board upon request. (c) Identity of persons having accounts and per- sons authorized to act with respect to such accounts; exemptions Subject to the requirements of any regula- tions prescribed jointly by the Secretary and the Board under paragraph (2) or (3) of sub- section (b), each insured depository institution shall maintain such records and other evidence, in such form as the Secretary shall require, of the identity of each person having an account in the United States with the insured depository institution and of each individual authorized to sign checks, make withdrawals, or otherwise act with respect to any such account. The Secretary may make such exemptions from any require- ment otherwise imposed under this subsection as are consistent with the purposes of this sec- tion. (d) Reproduction of checks, drafts, and other in- struments; record of transactions; identity of party Each insured depository institution shall make, to the extent that the regulations of the Secretary so require— (1) a microfilm or other reproduction of each check, draft, or similar instrument drawn on it and presented to it for payment; and (2) a record of each check, draft, or similar instrument received by it for deposit or collec- tion, together with an identification of the party for whose account it is to be deposited or collected, unless the insured depository in- stitution has already made a record of the par- ty’s identity pursuant to subsection (c). (e) Identity of persons making reportable cur- rency and foreign transactions Subject to the requirements of any regula- tions prescribed jointly by the Secretary and the Board under paragraph (2) or (3) of sub- section (b), whenever any individual engages (whether as principal, agent, or bailee) in any transaction with an insured depository institu- tion which is required to be reported or recorded under subchapter II of chapter 53 of title 31, the insured depository institution shall require and retain such evidence of the identity of that indi- vidual as the Secretary may prescribe as appro- priate under the circumstances. (f) Additions to or substitutes for required records Subject to the requirements of any regula- tions prescribed jointly by the Secretary and the Board under paragraph (2) or (3) of sub- section (b) and in addition to or in lieu of the records and evidence otherwise referred to in this section, each insured depository institution shall maintain such records and evidence as the Secretary may prescribe to carry out the pur- poses of this section. Page 1136 TITLE 12—BANKS AND BANKING § 1829b (g) Retention period Any type of record or evidence required under this section shall be retained for such period as the Secretary may prescribe for the type in question. Any period so prescribed shall not ex- ceed six years unless the Secretary determines, having regard for the purposes of this section, that a longer period is necessary in the case of a particular type of record or evidence. (h) Report to Congress by Secretary of the Treas- ury The Secretary shall include in his annual re- port to the Congress information on his imple- mentation of the authority conferred by this section and any similar authority with respect to recordkeeping or reporting requirements con- ferred by other provisions of law. (i) Application of provisions to foreign banks The provisions of this section shall not apply to any foreign bank except with respect to the transactions and records of any insured branch of such a bank. (j) Civil penalties (1) Penalty imposed Any insured depository institution and any director, officer, or employee of an insured de- pository institution who willfully or through gross negligence violates, or any person who willfully causes such a violation, any regula- tion prescribed under subsection (b) shall be liable to the United States for a civil penalty of not more than $10,000. (2) Treatment of continuing violation A separate violation of any regulation pre- scribed under subsection (b) of this section oc- curs for each day the violation continues and at each office, branch, or place of business at which such violation occurs. (3) Assessment Any penalty imposed under paragraph (1) shall be assessed, mitigated, and collected in the manner provided in subsections (b) and (c) of section 5321 of title 31. (Sept. 21, 1950, ch. 967, § 2[21], as added Pub. L. 91–508, title I, § 101, Oct. 26, 1970, 84 Stat. 1114; amended Pub. L. 95–369, § 6(c)(29), Sept. 17, 1978, 92 Stat. 620; Pub. L. 100–690, title VI, § 6185(d)(1), Nov. 18, 1988, 102 Stat. 4356; Pub. L. 101–73, title II, § 201(a), Aug. 9, 1989, 103 Stat. 187; Pub. L. 102–550, title XV, §§ 1515(a), (b), 1535(b), Oct. 28, 1992, 106 Stat. 4058, 4059, 4066; Pub. L. 103–325, title VI, § 602(a)(52)–(54), Sept. 23, 1994, 108 Stat. 2290; Pub. L. 107–56, title III, § 358(d), Oct. 26, 2001, 115 Stat. 326; Pub. L. 108–458, title VI, § 6203(k), Dec. 17, 2004, 118 Stat. 3747.) Editorial Notes CODIFICATION In subsec. (e), ‘‘subchapter II of chapter 53 of title 31’’ was substituted for ‘‘the Currency and Foreign Trans- actions Reporting Act [31 U.S.C. 1051 et seq.]’’ on au- thority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance. AMENDMENTS 2004—Subsec. (a)(2). Pub. L. 108–458 substituted ‘‘rec- ognizing that’’ for ‘‘recognizes that’’. 2001—Subsec. (a). Pub. L. 107–56 reenacted heading without change and amended text generally. Prior to amendment, text read as follows: ‘‘(1) The Congress finds that adequate records main- tained by insured depository institutions have a high degree of usefulness in criminal, tax, and regulatory in- vestigations and proceedings. The Congress further finds that microfilm or other reproductions and other records made by banks of checks, as well as records kept by banks of the identity of persons maintaining or authorized to act with respect to accounts therein, have been of particular value in this respect. ‘‘(2) It is the purpose of this section to require the maintenance of appropriate types of records by insured depository institutions in the United States where such records have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings.’’ 1994—Subsecs. (c), (d)(2), (e). Pub. L. 103–325 sub- stituted ‘‘the insured depository institution’’ for ‘‘the bank’’. 1992—Subsec. (b). Pub. L. 102–550, § 1515(a), inserted heading, designated existing provisions as par. (1) and inserted heading, and added pars. (2) and (3). Subsec. (c). Pub. L. 102–550, § 1515(b)(1), substituted ‘‘Subject to the requirements of any regulations pre- scribed jointly by the Secretary and the Board under paragraph (2) or (3) of subsection (b), each insured’’ for ‘‘Each insured’’. Subsec. (e). Pub. L. 102–550, § 1515(b)(2), substituted ‘‘Subject to the requirements of any regulations pre- scribed jointly by the Secretary and the Board under paragraph (2) or (3) of subsection (b), whenever any’’ for ‘‘Whenever any’’. Subsec. (f). Pub. L. 102–550, § 1515(b)(3), substituted ‘‘Subject to the requirements of any regulations pre- scribed jointly by the Secretary and the Board under paragraph (2) or (3) of subsection (b) and in addition to’’ for ‘‘In addition to’’. Subsec. (j)(1). Pub. L. 102–550, § 1535(b), inserted ‘‘, or any person who willfully causes such a violation,’’ after ‘‘gross negligence violates’’. 1989—Pub. L. 101–73 substituted references to insured depository institutions for references to insured banks wherever appearing in this section. 1988—Subsec. (j). Pub. L. 100–690 added subsec. (j). 1978—Subsec. (i). Pub. L. 95–369 added subsec. (i). 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 Pub. L. 107–56, title III, § 358(h), Oct. 26, 2001, 115 Stat. 328, provided that: ‘‘The amendments made by this sec- tion [enacting section 1681v of Title 15, Commerce and Trade, amending this section and sections 1953, 3412, 3414, and 3420 of this title, section 1681u of Title 15, and sections 5311, 5318, and 5319 of Title 31, Money and Fi- nance] shall apply with respect to reports filed or records maintained on, before, or after the date of en- actment of this Act [Oct. 26, 2001].’’ 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. REGULATIONS Pub. L. 102–550, title XV, § 1515(c), Oct. 28, 1992, 106 Stat. 4059, provided that: ‘‘The initial final regulations Page 1137 TITLE 12—BANKS AND BANKING § 1829c prescribed pursuant to section 21(b)(3) of the Federal Deposit Insurance Act [12 U.S.C. 1829b(b)(3)] (as added by subsection (a)(2) of this section) shall take effect be- fore January 1, 1994.’’ ADDITIONAL CRIMINAL PENALTIES Willful violation of regulations under this section punishable by fine of not more than $10,000 or imprison- ment of not more than five years, or both, when such willful violation is committed in furtherance of the commission of any violation of federal law punishable by imprisonment of more than one year, see section 1957 of this title. ADMINISTRATIVE PROCEDURE Administrative procedure and judicial review provi- sions of subchapter II (§ 551 et seq.) of chapter 5 and chapter 7 (§ 701 et seq.) of Title 5, Government Organiza- tion and Employees, applicable to all proceedings under this section, see section 1959 of this title. RESPONSIBILITY FOR COMPLIANCE Responsibility for the Secretary of the Treasury to assure compliance with requirements of this section, and Secretary’s authority to delegate such responsi- bility to the appropriate bank supervisory agency, or other supervisory agency, see section 1958 of this title. § 1829c. Making online banking initiation legal and easy (a) Definitions In this section: (1) Affiliate The term ‘‘affiliate’’ has the meaning given the term in section 1841 of this title. (2) Driver’s license The term ‘‘driver’s license’’ means a license issued by a State to an individual that author- izes the individual to operate a motor vehicle on public streets, roads, or highways. (3) Federal bank secrecy laws The term ‘‘Federal bank secrecy laws’’ means— (A) section 1829b of this title; (B) section 1953 of this title; and (C) subchapter II of chapter 53 of title 31. (4) Financial institution The term ‘‘financial institution’’ means— (A) an insured depository institution; (B) an insured credit union; or (C) any affiliate of an insured depository institution or insured credit union. (5) Financial product or service The term ‘‘financial product or service’’ has the meaning given the term in section 5481 of this title. (6) Insured credit union The term ‘‘insured credit union’’ has the meaning given the term in section 1752 of this title. (7) Insured depository institution The term ‘‘insured depository institution’’ has the meaning given the term in section 1813 of this title. (8) Online service The term ‘‘online service’’ means any Inter- net-based service, such as a website or mobile application. (9) Personal identification card The term ‘‘personal identification card’’ means an identification document issued by a State or local government to an individual solely for the purpose of identification of that individual. (10) Personal information The term ‘‘personal information’’ means the information displayed on or electronically en- coded on a driver’s license or personal identi- fication card that is reasonably necessary to fulfill the purpose and uses permitted by sub- section (b). (11) Scan The term ‘‘scan’’ means the act of using a device or software to decipher, in an electroni- cally readable format, personal information displayed on or electronically encoded on a driver’s license or personal identification card. (12) State The term ‘‘State’’ means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any other commonwealth, possession, or territory of the United States. (b) Use of a driver’s license or personal identi- fication card (1) In general When an individual initiates a request through an online service to open an account with a financial institution or obtain a finan- cial product or service from a financial insti- tution, the financial institution may record personal information from a scan of the driv- er’s license or personal identification card of the individual, or make a copy or receive an image of the driver’s license or personal iden- tification card of the individual, and store or retain such information in any electronic for- mat for the purposes described in paragraph (2). (2) Uses of information Except as required to comply with Federal bank secrecy laws, a financial institution may only use the information obtained under para- graph (1)— (A) to verify the authenticity of the driv- er’s license or personal identification card; (B) to verify the identity of the individual; and (C) to comply with a legal requirement to record, retain, or transmit the personal in- formation in connection with opening an ac- count or obtaining a financial product or service. (3) Deletion of image A financial institution that makes a copy or receives an image of a driver’s license or per- sonal identification card of an individual in accordance with paragraphs (1) and (2) shall, after using the image for the purposes de- scribed in paragraph (2), permanently delete— (A) any image of the driver’s license or personal identification card, as applicable; and (B) any copy of any such image.