31 U.S.C. § 5313 — Reports on domestic coins and currency

Page 446 TITLE 31—MONEY AND FINANCE § 5313 The Commodity Exchange Act, referred to in subsec. (c)(1)(A), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables. AMENDMENTS 2021—Subsec. (a)(1). Pub. L. 116–283, § 6102(d)(1)(A), substituted ‘‘, a transaction in money, credit, securi- ties or gold, or a service provided with respect to money, securities, futures, precious metals, stones and jewels, or value that substitutes for currency’’ for ‘‘, or a transaction in money, credit, securities, or gold’’. Subsec. (a)(2)(J). Pub. L. 116–283, § 6102(d)(1)(B)(i), in- serted ‘‘, or a business engaged in the exchange of cur- rency, funds, or value that substitutes for currency or funds’’ before semicolon at end. Subsec. (a)(2)(R). Pub. L. 116–283, § 6102(d)(i)(B)(ii), substituted ‘‘currency, funds, or value that substitutes for currency,’’ for ‘‘funds,’’. Subsec. (a)(2)(Y) to (AA). Pub. L. 116–283, § 6110(a)(1), added subpar. (Y) and redesignated former subpars. (Y) and (Z) as (Z) and (AA), respectively. Subsec. (a)(3)(D). Pub. L. 116–283, § 6102(d)(1)(C), added subpar. (D). 2004—Subsec. (a)(2)(E). Pub. L. 108–458, § 6202(g), made technical correction to directory language of Pub. L. 107–56, § 321(a). See 2001 Amendment note below. Subsec. (a)(3)(C). Pub. L. 108–458, § 6203(b), substituted ‘‘sections 5316 and 5331’’ for ‘‘sections 5333 and 5316’’. 2001—Subsec. (a)(2)(E). Pub. L. 107–56, § 321(a), as amended by Pub. L. 108–458, § 6202(g), amended subpar. (E) generally. Prior to amendment, subpar. (E) read as follows: ‘‘an insured institution (as defined in section 401(a) of the National Housing Act (12 U.S.C. 1724(a)));’’. Subsec. (a)(2)(R). Pub. L. 107–56, § 359(a), amended sub- par. (R) generally. Prior to amendment, subpar. (R) read as follows: ‘‘a licensed sender of money;’’. Subsec. (a)(3)(C). Pub. L. 107–56, § 365(c)(2)(A), sub- stituted ‘‘sections 5333 and 5316,’’ for ‘‘section 5316,’’. Subsec. (a)(4) to (6). Pub. L. 107–56, § 365(c)(1), added par. (4) and redesignated former pars. (4) and (5) as (5) and (6), respectively. Subsec. (c). Pub. L. 107–56, § 321(b), added subsec. (c). 1994—Subsec. (a)(2)(X) to (Z). Pub. L. 103–325, § 409, added subpar. (X) and redesignated former subpars. (X) and (Y) as (Y) and (Z), respectively. Subsec. (a)(3)(C). Pub. L. 103–325, § 405, added subpar. (C). 1988—Subsec. (a)(2)(T) to (Y). Pub. L. 100–690, § 6185(a), added subpars. (T) to (Y) and struck out former sub- pars. (T) and (U) which read as follows: ‘‘(T) an agency of the United States Government or of a State or local government carrying out a duty or power of a business described in this clause (2), includ- ing the United States Postal Service; or ‘‘(U) another business or agency carrying out a simi- lar, related, or substitute duty or power the Secretary of the Treasury prescribes.’’ Subsec. (a)(5). Pub. L. 100–690, § 6185(g)(1), inserted a comma after ‘‘Puerto Rico’’ and struck out second comma after ‘‘Pacific Islands’’. 1986—Subsec. (a)(2)(T). Pub. L. 99–570, § 1362(a), which directed that the Postal Service be included within United States agencies by amending subsec. (a)(2)(U) of this section by inserting before the semicolon at the end thereof the following ‘‘, including the United States Postal Service’’, was executed to subsec. (a)(2)(T) of this section as the probable intent of Con- gress, because subsec. (a)(2)(U) does not contain a semi- colon and subsec. (a)(2)(T) relates to United States agencies. Subsec. (a)(5). Pub. L. 99–570, § 1362(b), inserted ‘‘the Virgin Islands, Guam, the Northern Mariana Islands, American Samoa, the Trust Territory of the Pacific Is- lands,’’ after ‘‘Puerto Rico’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Pub. L. 116–283, div. F, title LXI, § 6110(a)(2), Jan. 1, 2021, 134 Stat. 4562, provided that: ‘‘Section 5312(a)(2)(Y) of title 31, United States Code, as added by paragraph (1), shall take effect on the effective date of the final rules issued by the Secretary of the Treasury pursuant to subsection (b) [see note below].’’ 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 Title 12, Banks and Banking. RULEMAKING Pub. L. 116–283, div. F, title LXI, § 6110(b), Jan. 1, 2021, 134 Stat. 4562, provided that: ‘‘(1) IN GENERAL.—Not later than 360 days after the date of enactment of this Act [Jan. 1, 2021], the Sec- retary of the Treasury shall issue proposed rules to carry out the amendments made by subsection (a) [amending this section]. ‘‘(2) CONSIDERATIONS.—Before issuing a proposed rule under paragraph (1), the Secretary of the Treasury (act- ing through the Director of the FinCEN [Financial Crimes Enforcement Network of the Department of the Treasury]), in coordination with the Federal Bureau of Investigation, the Attorney General, and Homeland Se- curity Investigations, shall consider— ‘‘(A) the appropriate scope for the rulemaking, in- cluding determining which persons should be subject to the rulemaking, by size, type of business, domestic or international geographical locations, or otherwise; ‘‘(B) the degree to which the regulations should focus on high-value trade in antiquities, and on the need to identify the actual purchasers of such antiq- uities, in addition to the agents or intermediaries acting for or on behalf of such purchasers; ‘‘(C) the need, if any, to identify persons who are dealers, advisors, consultants, or any other persons who engage as a business in the trade in antiquities; ‘‘(D) whether thresholds should apply in deter- mining which persons to regulate; ‘‘(E) whether certain exemptions should apply to the regulations; and ‘‘(F) any other matter the Secretary determines ap- propriate.’’ Executive Documents TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS For termination of Trust Territory of the Pacific Is- lands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions. § 5313. Reports on domestic coins and currency transactions (a) When a domestic financial institution is in- volved in a transaction for the payment, receipt, or transfer of United States coins or currency (or other monetary instruments the Secretary of the Treasury prescribes), in an amount, de- nomination, or amount and denomination, or under circumstances the Secretary prescribes by regulation, the institution and any other partic- ipant in the transaction the Secretary may pre- scribe shall file a report on the transaction at the time and in the way the Secretary pre- scribes. A participant acting for another person shall make the report as the agent or bailee of the person and identify the person for whom the transaction is being made. (b) The Secretary may designate a domestic fi- nancial institution as an agent of the United States Government to receive a report under Page 447 TITLE 31—MONEY AND FINANCE § 5313 1 See References in Text note below. this section. However, the Secretary may des- ignate a domestic financial institution that is not insured, chartered, examined, or registered as a domestic financial institution only if the institution consents. The Secretary may sus- pend or revoke a designation for a violation of this subchapter or a regulation under this sub- chapter (except a violation of section 5315 of this title or a regulation prescribed under section 5315), section 411 1 of the National Housing Act (12 U.S.C. 1730d), or section 21 of the Federal De- posit Insurance Act (12 U.S.C. 1829b). (c)(1) A person (except a domestic financial in- stitution designated under subsection (b) of this section) required to file a report under this sec- tion shall file the report— (A) with the institution involved in the transaction if the institution was designated; (B) in the way the Secretary prescribes when the institution was not designated; or (C) with the Secretary. (2) The Secretary shall prescribe— (A) the filing procedure for a domestic finan- cial institution designated under subsection (b) of this section; and (B) the way the institution shall submit re- ports filed with it. (d) MANDATORY EXEMPTIONS FROM REPORTING REQUIREMENTS.— (1) IN GENERAL.—The Secretary of the Treas- ury shall exempt, pursuant to section 5318(a)(6), a depository institution from the re- porting requirements of subsection (a) with re- spect to transactions between the depository institution and the following categories of en- tities: (A) Another depository institution. (B) A department or agency of the United States, any State, or any political subdivi- sion of any State. (C) Any entity established under the laws of the United States, any State, or any polit- ical subdivision of any State, or under an interstate compact between 2 or more States, which exercises governmental au- thority on behalf of the United States or any such State or political subdivision. (D) Any business or category of business the reports on which have little or no value for law enforcement purposes. (2) NOTICE OF EXEMPTION.—The Secretary of the Treasury shall publish in the Federal Reg- ister at such times as the Secretary deter- mines to be appropriate (but not less fre- quently than once each year) a list of all the entities whose transactions with a depository institution are exempt under this subsection from the reporting requirements of subsection (a). (e) DISCRETIONARY EXEMPTIONS FROM REPORT- ING REQUIREMENTS.— (1) IN GENERAL.—The Secretary of the Treas- ury may exempt, pursuant to section 5318(a)(6), a depository institution from the re- porting requirements of subsection (a) with re- spect to transactions between the depository institution and a qualified business customer of the institution on the basis of information submitted to the Secretary by the institution in accordance with procedures which the Sec- retary shall establish. (2) QUALIFIED BUSINESS CUSTOMER DEFINED.— For purposes of this subsection, the term ‘‘qualified business customer’’ means a busi- ness which— (A) maintains a transaction account (as defined in section 19(b)(1)(C) of the Federal Reserve Act) at the depository institution; (B) frequently engages in transactions with the depository institution which are subject to the reporting requirements of sub- section (a); and (C) meets criteria which the Secretary de- termines are sufficient to ensure that the purposes of this subchapter are carried out without requiring a report with respect to such transactions. (3) CRITERIA FOR EXEMPTION.—The Secretary of the Treasury shall establish, by regulation, the criteria for granting and maintaining an exemption under paragraph (1). (4) GUIDELINES.— (A) IN GENERAL.—The Secretary of the Treasury shall establish guidelines for de- pository institutions to follow in selecting customers for an exemption under this sub- section. (B) CONTENTS.—The guidelines may in- clude a description of the types of businesses or an itemization of specific businesses for which no exemption will be granted under this subsection to any depository institu- tion. (5) ANNUAL REVIEW.—The Secretary of the Treasury shall prescribe regulations requiring each depository institution to— (A) review, at least once each year, the qualified business customers of such institu- tion with respect to whom an exemption has been granted under this subsection; and (B) upon the completion of such review, re- submit information about such customers, with such modifications as the institution determines to be appropriate, to the Sec- retary for the Secretary’s approval. (6) 2-YEAR PHASE-IN PROVISION.—During the 2- year period beginning on the date of enact- ment of the Money Laundering Suppression Act of 1994, this subsection shall be applied by the Secretary on the basis of such criteria as the Secretary determines to be appropriate to achieve an orderly implementation of the re- quirements of this subsection. (f) PROVISIONS APPLICABLE TO MANDATORY AND DISCRETIONARY EXEMPTIONS.— (1) LIMITATION ON LIABILITY OF DEPOSITORY INSTITUTIONS.—No depository institution shall be subject to any penalty which may be im- posed under this subchapter for the failure of the institution to file a report with respect to a transaction with a customer for whom an ex- emption has been granted under subsection (d) or (e) unless the institution— (A) knowingly files false or incomplete in- formation to the Secretary with respect to the transaction or the customer engaging in the transaction; or Page 448 TITLE 31—MONEY AND FINANCE § 5313 (B) has reason to believe at the time the exemption is granted or the transaction is entered into that the customer or the trans- action does not meet the criteria established for granting such exemption. (2) COORDINATION WITH OTHER PROVISIONS.— Any exemption granted by the Secretary of the Treasury under section 5318(a) in accord- ance with this section, and any transaction which is subject to such exemption, shall be subject to any other provision of law applica- ble to such exemption, including— (A) the authority of the Secretary, under section 5318(a)(6), to revoke such exemption at any time; and (B) any requirement to report, or any au- thority to require a report on, any possible violation of any law or regulation or any suspected criminal activity. (g) DEPOSITORY INSTITUTION DEFINED.—For purposes of this section, the term ‘‘depository institution’’— (1) has the meaning given to such term in section 19(b)(1)(A) of the Federal Reserve Act; and (2) includes— (A) any branch, agency, or commercial lending company (as such terms are defined in section 1(b) of the International Banking Act of 1978); (B) any corporation chartered under sec- tion 25A of the Federal Reserve Act; and (C) any corporation having an agreement or undertaking with the Board of Governors of the Federal Reserve System under section 25 of the Federal Reserve Act. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 996; Pub. L. 103–325, title IV, § 402(a), Sept. 23, 1994, 108 Stat. 2243.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 5313(a) ..... 31:1081. Oct. 26, 1970, Pub. L. 91–508, §§ 221–223, 84 Stat. 1122. 31:1082. 5313(b) ..... 31:1083(a). 5313(c) ..... 31:1083(b). In subsection (a), the words ‘‘coins or’’ are added, and the words ‘‘prescribe’’ and ‘‘prescribes’’ are substituted for ‘‘specify’’ in 31:1081, and ‘‘require’’, for consistency. The words ‘‘other parties thereto or’’ in 31:1082 are omitted as surplus. The words ‘‘to the Secretary’’ in 31:1081 are omitted as unnecessary and for clarity. The words ‘‘in such detail’’ are omitted as surplus. The words ‘‘A participant acting for another person shall make the report as the agent or bailee of the person and identify the person for whom the transaction is being made’’ are substituted for 31:1082(last sentence) for clarity and to eliminate unnecessary words. In subsection (b), the words ‘‘in his discretion’’ and ‘‘individually or by class’’ are omitted as surplus. The word ‘‘Government’’ is added for consistency. The words ‘‘or a regulation under this subchapter’’, are added because of the restatement. The words ‘‘(except a violation of section 5315 of this title or a regulation prescribed under section 5315)’’ are added because 31:1141–1143 was not enacted as a part of the Currency and Foreign Transactions Reporting Act that is re- stated in this subchapter. In subsection (c)(1), clause (A) is substituted for ‘‘with respect to a domestic financial institution . . . with that institution’’ for clarity. Clause (C) is sub- stituted for ‘‘any such person may, at his election and in lieu of filing the report in the manner hereinabove prescribed, file the report with the Secretary’’ to elimi- nate unnecessary words. Editorial Notes REFERENCES IN TEXT Section 411 of the National Housing Act, referred to in subsec. (b), which was classified to section 1730d of Title 12, Banks and Banking, was repealed by Pub. L. 101–73, title IV, § 407, Aug. 9, 1989, 103 Stat. 363. Section 19(b)(1)(A) and (C) of the Federal Reserve Act, referred to in subsecs. (e)(2)(A) and (g)(1), is classified to section 461(b)(1)(A) and (C) of Title 12. The date of enactment of the Money Laundering Sup- pression Act of 1994, referred to in subsec. (e)(6), is the date of enactment of title IV of Pub. L. 103–325, which was approved Sept. 23, 1994. Section 1(b) of the International Banking Act of 1978, referred to in subsec. (g)(2)(A), is classified to section 3101 of Title 12. Sections 25 and 25A of the Federal Reserve Act, re- ferred to in subsec. (g)(2)(B), (C), are classified to sub- chapters I (§§ 601 et seq.) and II (§§ 611 et seq.), respec- tively, of chapter 6 of Title 12. AMENDMENTS 1994—Subsecs. (d) to (g). Pub. L. 103–325 added sub- secs. (d) to (g). Statutory Notes and Related Subsidiaries CURRENCY TRANSACTION REPORTS AND SUSPICIOUS ACTIVITY REPORTS THRESHOLDS REVIEW Pub. L. 116–283, div. F, title LXII, § 6205, Jan. 1, 2021, 134 Stat. 4570, provided that: ‘‘(a) REVIEW OF THRESHOLDS FOR CERTAIN CURRENCY TRANSACTION REPORTS AND SUSPICIOUS ACTIVITY RE- PORTS.—The Secretary [of the Treasury], in consulta- tion with the Attorney General, the Director of Na- tional Intelligence, the Secretary of Homeland Secu- rity, the Federal functional regulators, State bank su- pervisors, State credit union supervisors, and other rel- evant stakeholders, shall review and determine wheth- er the dollar thresholds, including aggregate thresh- olds, under sections 5313, 5318(g), and 5331 of title 31, United States Code, including regulations issued under those sections, should be adjusted. ‘‘(b) CONSIDERATIONS.—In making the determinations required under subsection (a), the Secretary, in con- sultation with the Attorney General, the Director of National Intelligence, the Secretary of Homeland Secu- rity, the Federal functional regulators, State bank su- pervisors, State credit union supervisors, and other rel- evant stakeholders, shall— ‘‘(1) rely substantially on information obtained through the BSA Data Value Analysis Project con- ducted by FinCEN [Financial Crimes Enforcement Network of the Department of the Treasury] and on information obtained through the Currency Trans- action Report analyses conducted by the Comptroller General of the United States; and ‘‘(2) consider— ‘‘(A) the effects that adjusting the thresholds would have on law enforcement, intelligence, na- tional security, and homeland security agencies; ‘‘(B) the costs likely to be incurred or saved by fi- nancial institutions from any adjustment to the thresholds; ‘‘(C) whether adjusting the thresholds would bet- ter conform the United States with international norms and standards to counter money laundering and the financing of terrorism; ‘‘(D) whether currency transaction report thresh- olds should be tied to inflation or otherwise be ad- justed based on other factors consistent with the purposes of the Bank Secrecy Act; ‘‘(E) any other matter that the Secretary deter- mines is appropriate. Page 449 TITLE 31—MONEY AND FINANCE § 5314 ‘‘(c) REPORT AND RULEMAKINGS.—Not later than 1 year after the date of enactment of this Act [Jan. 1, 2021], the Secretary, in consultation with the Attorney General, the Director of National Intelligence, the Sec- retary of Homeland Security, the Federal functional regulators, State bank supervisors, State credit union supervisors, and other relevant stakeholders, shall— ‘‘(1) publish a report of the findings from the review required under subsection (a); and ‘‘(2) propose rulemakings, as appropriate, to imple- ment the findings and determinations described in paragraph (1). ‘‘(d) UPDATES.—Not less frequently than once every 5 years during the 10-year period beginning on the date of enactment of this Act, the Secretary shall— ‘‘(1) evaluate findings and rulemakings described in subsection (c); and ‘‘(2) transmit a written summary of the evaluation to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate; and ‘‘(3) propose rulemakings, as appropriate, in re- sponse to the evaluation required under paragraph (1).’’ [For definitions of terms used in section 6205 of Pub. L. 116–283, set out above, see section 6003 of Pub. L. 116–283, set out as a Definitions note under section 5311 of this title.] EFFICIENT USE OF CURRENCY TRANSACTION REPORT SYSTEM Pub. L. 107–56, title III, § 366, Oct. 26, 2001, 115 Stat. 335, provided that: ‘‘(a) FINDINGS.—The Congress finds the following: ‘‘(1) The Congress established the currency trans- action reporting requirements in 1970 because the Congress found then that such reports have a high de- gree of usefulness in criminal, tax, and regulatory in- vestigations and proceedings and the usefulness of such reports has only increased in the years since the requirements were established. ‘‘(2) In 1994, in response to reports and testimony that excess amounts of currency transaction reports were interfering with effective law enforcement, the Congress reformed the currency transaction report exemption requirements to provide— ‘‘(A) mandatory exemptions for certain reports that had little usefulness for law enforcement, such as cash transfers between depository institutions and cash deposits from government agencies; and ‘‘(B) discretionary authority for the Secretary of the Treasury to provide exemptions, subject to cri- teria and guidelines established by the Secretary, for financial institutions with regard to regular business customers that maintain accounts at an institution into which frequent cash deposits are made. ‘‘(3) Today there is evidence that some financial in- stitutions are not utilizing the exemption system, or are filing reports even if there is an exemption in ef- fect, with the result that the volume of currency transaction reports is once again interfering with ef- fective law enforcement. ‘‘(b) STUDY AND REPORT.— ‘‘(1) STUDY REQUIRED.—The Secretary shall conduct a study of— ‘‘(A) the possible expansion of the statutory ex- emption system in effect under section 5313 of title 31, United States Code; and ‘‘(B) methods for improving financial institution utilization of the statutory exemption provisions as a way of reducing the submission of currency trans- action reports that have little or no value for law enforcement purposes, including improvements in the systems in effect at financial institutions for regular review of the exemption procedures used at the institution and the training of personnel in its effective use. ‘‘(2) REPORT REQUIRED.—The Secretary of the Treas- ury shall submit a report to the Congress before the end of the 1-year period beginning on the date of en- actment of this Act [Oct. 26, 2001] containing the find- ings and conclusions of the Secretary with regard to the study required under subsection (a), and such rec- ommendations for legislative or administrative ac- tion as the Secretary determines to be appropriate.’’ REPORT REDUCTION GOAL; STREAMLINED CURRENCY TRANSACTION REPORTS Pub. L. 103–325, title IV, § 402(b), (c), Sept. 23, 1994, 108 Stat. 2245, provided that: ‘‘(b) REPORT REDUCTION GOAL; REPORTS.— ‘‘(1) IN GENERAL.—In implementing the amendment made by subsection (a) [amending this section], the Secretary of the Treasury shall seek to reduce, with- in a reasonable period of time, the number of reports required to be filed in the aggregate by depository in- stitutions pursuant to section 5313(a) of title 31, United States Code, by at least 30 percent of the num- ber filed during the year preceding the date of enact- ment of this Act [Sept. 23, 1994]. ‘‘(2) INTERIM REPORT.—The Secretary of the Treas- ury shall submit a report to the Congress not later than the end of the 180-day period beginning on the date of enactment of this Act on the progress made by the Secretary in implementing the amendment made by subsection (a). ‘‘(3) ANNUAL REPORT.—The Secretary of the Treas- ury shall submit an annual report to the Congress after the end of each of the first 5 calendar years which begin after the date of enactment of this Act on the extent to which the Secretary has reduced the overall number of currency transaction reports filed with the Secretary pursuant to section 5313(a) of title 31, United States Code, consistent with the purposes of such section and effective law enforcement. ‘‘(c) STREAMLINED CURRENCY TRANSACTION REPORTS.— The Secretary of the Treasury shall take such action as may be appropriate to— ‘‘(1) redesign the format of reports required to be filed under section 5313(a) of title 31, United States Code, by any financial institution (as defined in sec- tion 5312(a)(2) of such title) to eliminate the need to report information which has little or no value for law enforcement purposes; and ‘‘(2) reduce the time and effort required to prepare such report for filing by any such financial institu- tion under such section.’’ § 5314. Records and reports on foreign financial agency transactions (a) Considering the need to avoid impeding or controlling the export or import of monetary in- struments and the need to avoid burdening un- reasonably a person making a transaction with a foreign financial agency, the Secretary of the Treasury shall require a resident or citizen of the United States or a person in, and doing busi- ness in, the United States, to keep records, file reports, or keep records and file reports, when the resident, citizen, or person makes a trans- action or maintains a relation for any person with a foreign financial agency. The records and reports shall contain the following information in the way and to the extent the Secretary pre- scribes: (1) the identity and address of participants in a transaction or relationship. (2) the legal capacity in which a participant is acting. (3) the identity of real parties in interest. (4) a description of the transaction. (b) The Secretary may prescribe— (1) a reasonable classification of persons sub- ject to or exempt from a requirement under this section or a regulation under this section;