31 U.S.C. § 5317 — Search and forfeiture of monetary instru-

Page 451 TITLE 31—MONEY AND FINANCE § 5317 (A) from a place in the United States to or through a place outside the United States; or (B) to a place in the United States from or through a place outside the United States; or (2) receives monetary instruments of more than $10,000 at one time transported into the United States from or through a place outside the United States. (b) A report under this section shall be filed at the time and place the Secretary of the Treas- ury prescribes. The report shall contain the fol- lowing information to the extent the Secretary prescribes: (1) the legal capacity in which the person fil- ing the report is acting. (2) the origin, destination, and route of the monetary instruments. (3) when the monetary instruments are not legally and beneficially owned by the person transporting the instruments, or if the person transporting the instruments personally is not going to use them, the identity of the person that gave the instruments to the person trans- porting them, the identity of the person who is to receive them, or both. (4) the amount and kind of monetary instru- ments transported. (5) additional information. (c) This section or a regulation under this sec- tion does not apply to a common carrier of pas- sengers when a passenger possesses a monetary instrument, or to a common carrier of goods if the shipper does not declare the instrument. (d) CUMULATION OF CLOSELY RELATED EVENTS.—The Secretary of the Treasury may prescribe regulations under this section defining the term ‘‘at one time’’ for purposes of sub- section (a). Such regulations may permit the cu- mulation of closely related events in order that such events may collectively be considered to occur at one time for the purposes of subsection (a). (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 998; Pub. L. 98–473, title II, § 901(c), Oct. 12, 1984, 98 Stat. 2135; Pub. L. 99–570, title I, § 1358, title III, § 3153, Oct. 27, 1986, 100 Stat. 3207–26, 3207–94.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 5316(a) ..... 31:1101(a). Oct. 26, 1970, Pub. L. 91–508, § 231, 84 Stat. 1122. 5316(b) ..... 31:1101(b). 5316(c) ..... 31:1101(c). In subsection (a), before clause (1), the words ‘‘a per- son or an agent or bailee of the person shall’’ are sub- stituted for ‘‘whoever, whether as principal, agent, or bailee, or by an agent or bailee’’ for consistency. The words ‘‘or reports’’ are omitted as unnecessary because of 1:1. In clause (2), the words ‘‘transported into the United States’’ are substituted for ‘‘at the termination of their transportation to the United States’’ for con- sistency and to eliminate unnecessary words. In subsection (b), before clause (1), the word ‘‘re- quired’’ is omitted as surplus. The word ‘‘prescribes’’ is substituted for ‘‘require’’ for consistency in the revised title and with other titles of the United States Code. The words ‘‘to the extent’’ are substituted for ‘‘in such detail’’ for clarity. In clause (1), the words ‘‘with re- spect to the monetary instruments transported’’ are omitted as surplus. In clause (3), the words ‘‘or if the person transporting the instruments personally is not going to use them’’ are substituted for ‘‘or are trans- ported for any purpose other than the use in his own behalf of the person transporting the same’’ for clarity. In subsection (c), the words ‘‘or a regulation under this section’’ are added because of the restatement. Editorial Notes AMENDMENTS 1986—Subsec. (a)(1). Pub. L. 99–570, § 1358(b), sub- stituted ‘‘transports, is about to transport, or has transported’’ for ‘‘transports or has transported, or at- tempts to transport or have transported’’. Subsec. (a)(2). Pub. L. 99–570, §§ 1358(c), 3153, made identical amendments substituting ‘‘$10,000’’ for ‘‘$5,000’’. Subsec. (d). Pub. L. 99–570, § 1358(a), added subsec. (d). 1984—Subsec. (a)(1). Pub. L. 98–473 inserted ‘‘, or at- tempts to transport or have transported,’’ after ‘‘trans- ports or has transported’’ and substituted ‘‘$10,000’’ for ‘‘$5,000’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REGULATIONS PRESCRIBED UNDER 1986 AMENDMENT Pub. L. 99–570, title I, § 1364(d), Oct. 27, 1986, 100 Stat. 3207–34, provided that: ‘‘Any regulation prescribed under the amendments made by section 1358 [amending this section] shall apply with respect to transactions completed after the effective date of such regulation.’’ § 5317. Search and forfeiture of monetary instru- ments (a) The Secretary of the Treasury may apply to a court of competent jurisdiction for a search warrant when the Secretary reasonably believes a monetary instrument is being transported and a report on the instrument under section 5316 of this title has not been filed or contains a mate- rial omission or misstatement. The Secretary shall include a statement of information in sup- port of the warrant. On a showing of probable cause, the court may issue a search warrant for a designated person or a designated or described place or physical object. This subsection does not affect the authority of the Secretary under another law. (b) SEARCHES AT BORDER.—For purposes of en- suring compliance with the requirements of sec- tion 5316, a customs officer may stop and search, at the border and without a search warrant, any vehicle, vessel, aircraft, or other conveyance, any envelope or other container, and any person entering or departing from the United States. (c) FORFEITURE.— (1) CRIMINAL FORFEITURE.— (A) IN GENERAL.—The court in imposing sentence for any violation of section 5313, 5316, or 5324 of this title, or any conspiracy to commit such violation, shall order the de- fendant to forfeit all property, real or per- sonal, involved in the offense and any prop- erty traceable thereto. (B) PROCEDURE.—Forfeitures under this paragraph shall be governed by the proce- dures established in section 413 of the Con- trolled Substances Act. (2) CIVIL FORFEITURE.— (A) IN GENERAL.—Any property involved in a violation of section 5313, 5316, or 5324 of Page 452 TITLE 31—MONEY AND FINANCE § 5317 this title, or any conspiracy to commit any such violation, and any property traceable to any such violation or conspiracy, may be seized and forfeited to the United States in accordance with the procedures governing civil forfeitures in money laundering cases pursuant to section 981(a)(1)(A) of title 18, United States Code. (B) INTERNAL REVENUE SERVICE SEIZURE RE- QUIREMENTS WITH RESPECT TO STRUCTURING TRANSACTIONS.— (i) PROPERTY DERIVED FROM AN ILLEGAL SOURCE.—Property may only be seized by the Internal Revenue Service pursuant to subparagraph (A) by reason of a claimed violation of section 5324 if the property to be seized was derived from an illegal source or the funds were structured for the purpose of concealing the violation of a criminal law or regulation other than sec- tion 5324. (ii) NOTICE.—Not later than 30 days after property is seized by the Internal Revenue Service pursuant to subparagraph (A), the Internal Revenue Service shall— (I) make a good faith effort to find all persons with an ownership interest in such property; and (II) provide each such person so found with a notice of the seizure and of the person’s rights under clause (iv). (iii) EXTENSION OF NOTICE UNDER CERTAIN CIRCUMSTANCES.—The Internal Revenue Service may apply to a court of competent jurisdiction for one 30-day extension of the notice requirement under clause (ii) if the Internal Revenue Service can establish probable cause of an imminent threat to national security or personal safety neces- sitating such extension. (iv) POST-SEIZURE HEARING.—If a person with an ownership interest in property seized pursuant to subparagraph (A) by the Internal Revenue Service requests a hear- ing by a court of competent jurisdiction within 30 days after the date on which no- tice is provided under subclause (ii), such property shall be returned unless the court holds an adversarial hearing and finds within 30 days of such request (or such longer period as the court may provide, but only on request of an interested party) that there is probable cause to believe that there is a violation of section 5324 involv- ing such property and probable cause to believe that the property to be seized was derived from an illegal source or the funds were structured for the purpose of con- cealing the violation of a criminal law or regulation other than section 5324. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 998; Pub. L. 98–473, title II, § 901(d), Oct. 12, 1984, 98 Stat. 2135; Pub. L. 99–570, title I, § 1355, Oct. 27, 1986, 100 Stat. 3207–22; Pub. L. 102–550, title XV, § 1525(c)(2), Oct. 28, 1992, 106 Stat. 4065; Pub. L. 107–56, title III, §§ 365(b)(2)(B), 372(a), Oct. 26, 2001, 115 Stat. 335, 338; Pub. L. 116–25, title I, § 1201, July 1, 2019, 133 Stat. 986.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 5317(a) ..... 31:1105. Oct. 26, 1970, Pub. L. 91–508, §§ 232, 235, 84 Stat. 1123. 5317(b) ..... 31:1102. In subsection (a), the words ‘‘The Secretary shall in- clude a statement of information in support of the war- rant’’ are substituted for 31:1105(a)(last sentence) to eliminate unnecessary words and for consistency. The word ‘‘for’’ is substituted for ‘‘authorizing the search of . . . all of the following’’ to eliminate unnecessary words. The words ‘‘or more’’ are omitted as unneces- sary because the singular includes the plural under 1:1. The words ‘‘or premises’’, ‘‘letters, parcels, packages, or other’’, and ‘‘vehicles’’ are omitted as surplus. In subsection (b), the words ‘‘either’’ and ‘‘the posses- sion of’’ are omitted as surplus. The words ‘‘United States Postal Service’’ are substituted for ‘‘postal serv- ice’’ for consistency with title 39. The words ‘‘or re- tained in’’ are omitted as surplus. Editorial Notes REFERENCES IN TEXT Section 413 of the Controlled Substances Act, referred to in subsec. (c)(1)(B), is classified to section 853 of Title 21, Food and Drugs. AMENDMENTS 2019—Subsec. (c)(2). Pub. L. 116–25 designated existing provisions as subpar. (A), inserted heading, and added subpar. (B). 2001—Subsec. (c). Pub. L. 107–56, § 372(a), inserted heading and amended text of subsec. (c) generally. Prior to amendment, text read as follows: ‘‘If a report required under section 5316 with respect to any mone- tary instrument is not filed (or if filed, contains a ma- terial omission or misstatement of fact), the instru- ment and any interest in property, including a deposit in a financial institution, traceable to such instrument may be seized and forfeited to the United States Gov- ernment. Any property, real or personal, involved in a transaction or attempted transaction in violation of section 5324(c), or any property traceable to such prop- erty, may be seized and forfeited to the United States Government. A monetary instrument transported by mail or a common carrier, messenger, or bailee is being transported under this subsection from the time the in- strument is delivered to the United States Postal Serv- ice, common carrier, messenger, or bailee through the time it is delivered to the addressee, intended recipi- ent, or agent of the addressee or intended recipient without being transported further in, or taken out of, the United States.’’ Pub. L. 107–56, § 365(b)(2)(B), substituted ‘‘section 5324(c)’’ for ‘‘section 5324(b)’’. 1992—Subsec. (c). Pub. L. 102–550 inserted after first sentence ‘‘Any property, real or personal, involved in a transaction or attempted transaction in violation of section 5324(b), or any property traceable to such prop- erty, may be seized and forfeited to the United States Government.’’ 1986—Subsec. (b). Pub. L. 99–570, § 1355(a), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: ‘‘A customs officer may stop and search, without a search warrant, a vehicle, vessel, air- craft, or other conveyance, envelope or other container, or person entering or departing from the United States with respect to which or whom the officer has reason- able cause to believe there is a monetary instrument being transported in violation of section 5316 of this title.’’ Subsec. (c). Pub. L. 99–570, § 1355(b), amended first sen- tence generally. Prior to amendment, first sentence read as follows: ‘‘A monetary instrument being trans- ported may be seized and forfeited to the United States Government when a report on the instrument under Page 453 TITLE 31—MONEY AND FINANCE § 5318 1 See References in Text note below. section 5316 of this title has not been filed or contains a material omission or misstatement.’’ 1984—Subsecs. (b), (c). Pub. L. 98–473, § 901, added sub- sec. (b) and redesignated former subsec. (b) as (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1986 AMENDMENT Pub. L. 99–570, title I, § 1364(b), Oct. 27, 1986, 100 Stat. 3207–34, provided that: ‘‘The amendments made by sec- tions 1355(b) and 1357(a) [amending this section and sec- tion 5321 of this title] shall apply with respect to viola- tions committed after the end of the 3-month period be- ginning on the date of the enactment of this Act [Oct. 27, 1986].’’ § 5318. Compliance, exemptions, and summons authority (a) GENERAL POWERS OF SECRETARY.—The Sec- retary of the Treasury may (except under sec- tion 5315 of this title and regulations prescribed under section 5315)— (1) except as provided in subsections (b)(2) and (h)(4), delegate duties and powers under this subchapter to an appropriate supervising agency and the United States Postal Service; (2) require a class of domestic financial in- stitutions or nonfinancial trades or businesses to maintain appropriate procedures, including the collection and reporting of certain infor- mation as the Secretary of the Treasury may prescribe by regulation, to ensure compliance with this subchapter and regulations pre- scribed under this subchapter or to guard against money laundering, the financing of terrorism, or other forms of illicit finance; (3) examine any books, papers, records, or other data of domestic financial institutions or nonfinancial trades or businesses relevant to the recordkeeping or reporting require- ments of this subchapter; (4) summon a financial institution or non- financial trade or business, an officer or em- ployee of a financial institution or non- financial trade or business (including a former officer or employee), or any person having pos- session, custody, or care of the reports and records required under this subchapter, to ap- pear before the Secretary of the Treasury or his delegate at a time and place named in the summons and to produce such books, papers, records, or other data, and to give testimony, under oath, as may be relevant or material to an investigation described in subsection (b); (5) exempt from the requirements of this subchapter any class of transactions within any State if the Secretary determines that— (A) under the laws of such State, that class of transactions is subject to requirements substantially similar to those imposed under this subchapter; and (B) there is adequate provision for the en- forcement of such requirements; (6) rely on examinations conducted by a State supervisory agency of a category of fi- nancial institution, if the Secretary deter- mines that— (A) the category of financial institution is required to comply with this subchapter and regulations prescribed under this sub- chapter; or (B) the State supervisory agency examines the category of financial institution for compliance with this subchapter and regula- tions prescribed under this subchapter; and (7) prescribe an appropriate exemption from a requirement under this subchapter and regu- lations prescribed under this subchapter. The Secretary may revoke an exemption under this paragraph or paragraph (5) by actually or constructively notifying the parties affected. A revocation is effective during judicial re- view. (b) LIMITATIONS ON SUMMONS POWER.— (1) SCOPE OF POWER.—The Secretary of the Treasury may take any action described in paragraph (3) or (4) of subsection (a) only in connection with investigations for the purpose of civil enforcement of violations of this sub- chapter, section 21 of the Federal Deposit In- surance Act, section 411 1 of the National Hous- ing Act, or chapter 2 of Public Law 91–508 (12 U.S.C. 1951 et seq.) or any regulation under any such provision. (2) AUTHORITY TO ISSUE.—A summons may be issued under subsection (a)(4) only by, or with the approval of, the Secretary of the Treasury or a supervisory level delegate of the Sec- retary of the Treasury. (c) ADMINISTRATIVE ASPECTS OF SUMMONS.— (1) PRODUCTION AT DESIGNATED SITE.—A sum- mons issued pursuant to this section may re- quire that books, papers, records, or other data stored or maintained at any place be pro- duced at any designated location in any State or in any territory or other place subject to the jurisdiction of the United States not more than 500 miles distant from any place where the financial institution or nonfinancial trade or business operates or conducts business in the United States. (2) FEES AND TRAVEL EXPENSES.—Persons summoned under this section shall be paid the same fees and mileage for travel in the United States that are paid witnesses in the courts of the United States. (3) NO LIABILITY FOR EXPENSES.—The United States shall not be liable for any expense, other than an expense described in paragraph (2), incurred in connection with the production of books, papers, records, or other data under this section. (d) SERVICE OF SUMMONS.—Service of a sum- mons issued under this section may be by reg- istered mail or in such other manner calculated to give actual notice as the Secretary may pre- scribe by regulation. (e) CONTUMACY OR REFUSAL.— (1) REFERRAL TO ATTORNEY GENERAL.—In case of contumacy by a person issued a sum- mons under paragraph (3) or (4) of subsection (a) or a refusal by such person to obey such summons, the Secretary of the Treasury shall refer the matter to the Attorney General. (2) JURISDICTION OF COURT.—The Attorney General may invoke the aid of any court of the United States within the jurisdiction of which—