31 U.S.C. 5318 Compliance, exemptions, and summons authority (AML programs, SARs)
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Page 453 TITLE 31—MONEY AND FINANCE § 5318
section 5316 of this title has not been filed or contains (B) the State supervisory agency examines
a material omission or misstatement.’’ the category of financial institution for
1984—Subsecs. (b), (c). Pub. L. 98–473, § 901, added sub- compliance with this subchapter and regula-
sec. (b) and redesignated former subsec. (b) as (c).
tions prescribed under this subchapter; and
Statutory Notes and Related Subsidiaries (7) prescribe an appropriate exemption from
a requirement under this subchapter and regu-
EFFECTIVE DATE OF 1986 AMENDMENT lations prescribed under this subchapter. The
Pub. L. 99–570, title I, § 1364(b), Oct. 27, 1986, 100 Stat. Secretary may revoke an exemption under
3207–34, provided that: ‘‘The amendments made by sec- this paragraph or paragraph (5) by actually or
tions 1355(b) and 1357(a) [amending this section and sec- constructively notifying the parties affected.
tion 5321 of this title] shall apply with respect to viola- A revocation is effective during judicial re-
tions committed after the end of the 3-month period be-
view.
ginning on the date of the enactment of this Act [Oct.
27, 1986].’’ (b) LIMITATIONS ON SUMMONS POWER.—
(1) SCOPE OF POWER.—The Secretary of the
§ 5318. Compliance, exemptions, and summons Treasury may take any action described in
authority paragraph (3) or (4) of subsection (a) only in
(a) GENERAL POWERS OF SECRETARY.—The Sec- connection with investigations for the purpose
retary of the Treasury may (except under sec- of civil enforcement of violations of this sub-
tion 5315 of this title and regulations prescribed chapter, section 21 of the Federal Deposit In-
under section 5315)— surance Act, section 411 1 of the National Hous-
(1) except as provided in subsections (b)(2) ing Act, or chapter 2 of Public Law 91–508 (12
and (h)(4), delegate duties and powers under U.S.C. 1951 et seq.) or any regulation under
this subchapter to an appropriate supervising any such provision.
agency and the United States Postal Service; (2) AUTHORITY TO ISSUE.—A summons may be
(2) require a class of domestic financial in- issued under subsection (a)(4) only by, or with
stitutions or nonfinancial trades or businesses the approval of, the Secretary of the Treasury
to maintain appropriate procedures, including or a supervisory level delegate of the Sec-
the collection and reporting of certain infor- retary of the Treasury.
mation as the Secretary of the Treasury may (c) ADMINISTRATIVE ASPECTS OF SUMMONS.—
prescribe by regulation, to ensure compliance (1) PRODUCTION AT DESIGNATED SITE.—A sum-
with this subchapter and regulations pre- mons issued pursuant to this section may re-
scribed under this subchapter or to guard quire that books, papers, records, or other
against money laundering, the financing of data stored or maintained at any place be pro-
terrorism, or other forms of illicit finance; duced at any designated location in any State
(3) examine any books, papers, records, or or in any territory or other place subject to
other data of domestic financial institutions the jurisdiction of the United States not more
or nonfinancial trades or businesses relevant than 500 miles distant from any place where
to the recordkeeping or reporting require- the financial institution or nonfinancial trade
ments of this subchapter; or business operates or conducts business in
(4) summon a financial institution or non- the United States.
financial trade or business, an officer or em- (2) FEES AND TRAVEL EXPENSES.—Persons
ployee of a financial institution or non- summoned under this section shall be paid the
financial trade or business (including a former same fees and mileage for travel in the United
officer or employee), or any person having pos- States that are paid witnesses in the courts of
session, custody, or care of the reports and the United States.
records required under this subchapter, to ap- (3) NO LIABILITY FOR EXPENSES.—The United
pear before the Secretary of the Treasury or States shall not be liable for any expense,
his delegate at a time and place named in the other than an expense described in paragraph
summons and to produce such books, papers, (2), incurred in connection with the production
records, or other data, and to give testimony, of books, papers, records, or other data under
under oath, as may be relevant or material to this section.
an investigation described in subsection (b); (d) SERVICE OF SUMMONS.—Service of a sum-
(5) exempt from the requirements of this mons issued under this section may be by reg-
subchapter any class of transactions within istered mail or in such other manner calculated
any State if the Secretary determines that— to give actual notice as the Secretary may pre-
(A) under the laws of such State, that class scribe by regulation.
of transactions is subject to requirements (e) CONTUMACY OR REFUSAL.—
substantially similar to those imposed under (1) REFERRAL TO ATTORNEY GENERAL.—In
this subchapter; and case of contumacy by a person issued a sum-
(B) there is adequate provision for the en- mons under paragraph (3) or (4) of subsection
forcement of such requirements; (a) or a refusal by such person to obey such
(6) rely on examinations conducted by a summons, the Secretary of the Treasury shall
State supervisory agency of a category of fi- refer the matter to the Attorney General.
nancial institution, if the Secretary deter- (2) JURISDICTION OF COURT.—The Attorney
mines that— General may invoke the aid of any court of
(A) the category of financial institution is the United States within the jurisdiction of
required to comply with this subchapter and which—
regulations prescribed under this sub-
chapter; or 1 See References in Text note below.
§ 5318 TITLE 31—MONEY AND FINANCE Page 454
(A) the investigation which gave rise to the official duties of such officer or em-
the summons is being or has been carried on; ployee.
(B) the person summoned is an inhabitant; (B) DISCLOSURES IN CERTAIN EMPLOYMENT
or REFERENCES.—
(C) the person summoned carries on busi- (i) RULE OF CONSTRUCTION.—Notwith-
ness or may be found, standing the application of subparagraph
to compel compliance with the summons. (A) in any other context, subparagraph (A)
(3) COURT ORDER.—The court may issue an shall not be construed as prohibiting any
order requiring the person summoned to ap- financial institution, or any director, offi-
pear before the Secretary or his delegate to cer, employee, or agent of such institu-
produce books, papers, records, and other data, tion, from including information that was
to give testimony as may be necessary to ex- included in a report to which subparagraph
plain how such material was compiled and (A) applies—
maintained, and to pay the costs of the pro- (I) in a written employment reference
ceeding. that is provided in accordance with sec-
(4) FAILURE TO COMPLY WITH ORDER.—Any tion 18(w) of the Federal Deposit Insur-
failure to obey the order of the court may be ance Act in response to a request from
punished by the court as a contempt thereof. another financial institution; or
(5) SERVICE OF PROCESS.—All process in any (II) in a written termination notice or
case under this subsection may be served in employment reference that is provided
any judicial district in which such person may in accordance with the rules of a self-
be found. regulatory organization registered with
the Securities and Exchange Commission
(f) WRITTEN AND SIGNED STATEMENT RE-
or the Commodity Futures Trading Com-
QUIRED.—No person shall qualify for an exemp-
mission,
tion under subsection (a)(5) 1 unless the relevant
financial institution or nonfinancial trade or except that such written reference or no-
business prepares and maintains a statement tice may not disclose that such informa-
which— tion was also included in any such report,
(1) describes in detail the reasons why such or that such report was made.
person is qualified for such exemption; and (ii) INFORMATION NOT REQUIRED.—Clause
(2) contains the signature of such person. (i) shall not be construed, by itself, to cre-
ate any affirmative duty to include any in-
(g) REPORTING OF SUSPICIOUS TRANSACTIONS.—
(1) IN GENERAL.—The Secretary may require formation described in clause (i) in any
any financial institution, and any director, of- employment reference or termination no-
ficer, employee, or agent of any financial in- tice referred to in clause (i).
stitution, to report any suspicious transaction (3) LIABILITY FOR DISCLOSURES.—
relevant to a possible violation of law or regu- (A) IN GENERAL.—Any financial institution
lation. that makes a voluntary disclosure of any
(2) NOTIFICATION PROHIBITED.— possible violation of law or regulation to a
(A) IN GENERAL.—If a financial institution government agency or makes a disclosure
or any director, officer, employee, or agent pursuant to this subsection or any other au-
of any financial institution, voluntarily or thority, and any director, officer, employee,
pursuant to this section or any other au- or agent of such institution who makes, or
thority, reports a suspicious transaction to a requires another to make any such disclo-
government agency— sure, shall not be liable to any person under
(i) neither the financial institution, di- any law or regulation of the United States,
rector, officer, employee, or agent of such any constitution, law, or regulation of any
institution (whether or not any such per- State or political subdivision of any State,
son is still employed by the institution), or under any contract or other legally en-
nor any other current or former director, forceable agreement (including any arbitra-
officer, or employee of, or contractor for, tion agreement), for such disclosure or for
the financial institution or other reporting any failure to provide notice of such disclo-
person, may notify any person involved in sure to the person who is the subject of such
the transaction that the transaction has disclosure or any other person identified in
been reported or otherwise reveal any in- the disclosure.
formation that would reveal that the (B) RULE OF CONSTRUCTION.—Subparagraph
transaction has been reported,; 2 and (A) shall not be construed as creating—
(ii) no current or former officer or em- (i) any inference that the term ‘‘person’’,
ployee of or contractor for the Federal as used in such subparagraph, may be con-
Government or of or for any State, local, strued more broadly than its ordinary
tribal, or territorial government within usage so as to include any government or
the United States, who has any knowledge agency of government; or
that such report was made may disclose to (ii) any immunity against, or otherwise
any person involved in the transaction affecting, any civil or criminal action
that the transaction has been reported, or brought by any government or agency of
otherwise reveal any information that government to enforce any constitution,
would reveal that the transaction has been law, or regulation of such government or
reported, other than as necessary to fulfill agency.
(4) SINGLE DESIGNEE FOR REPORTING SUS-
2 So in original. PICIOUS TRANSACTIONS.—
Page 455 TITLE 31—MONEY AND FINANCE § 5318
(A) IN GENERAL.—In requiring reports receive reporting pursuant to subpara-
under paragraph (1) of suspicious trans- graph (B)(iii), the Secretary of the Treas-
actions, the Secretary of the Treasury shall ury, acting through the Director of the Fi-
designate, to the extent practicable and ap- nancial Crimes Enforcement Network, and
propriate, a single officer or agency of the in consultation with appropriate rep-
United States to whom such reports shall be resentatives of the State bank supervisors,
made. State credit union supervisors, and Fed-
(B) DUTY OF DESIGNEE.—The officer or eral functional regulators, shall—
agency of the United States designated by (I) establish streamlined, including
the Secretary of the Treasury pursuant to automated, processes to, as appropriate,
subparagraph (A) shall refer any report of a permit the filing of noncomplex cat-
suspicious transaction to any appropriate egories of reports that—
law enforcement, supervisory agency, or (aa) reduce burdens imposed on per-
United States intelligence agency for use in sons required to report; and
the conduct of intelligence or counterintel- (bb) do not diminish the usefulness of
ligence activities, including analysis, to pro- the reporting to Federal law enforce-
tect against international terrorism. ment agencies, national security offi-
(C) COORDINATION WITH OTHER REPORTING cials, and the intelligence community
REQUIREMENTS.—Subparagraph (A) shall not in combating financial crime, includ-
be construed as precluding any supervisory ing the financing of terrorism;
agency for any financial institution from re- (II) subject to clause (ii)—
quiring the financial institution to submit (aa) permit streamlined, including
any information or report to the agency or automated, reporting for the cat-
another agency pursuant to any other appli- egories described in subclause (I); and
cable provision of law. (bb) establish the conditions under
(5) CONSIDERATIONS IN IMPOSING REPORTING which the reporting described in item
REQUIREMENTS.—
(aa) is permitted; and
(A) DEFINITIONS.—In this paragraph, the
terms ‘‘Bank Secrecy Act’’, ‘‘Federal func- (III) establish additional systems and
tional regulator’’, ‘‘State bank supervisor’’, processes as necessary to allow for the
and ‘‘State credit union supervisor’’ have reporting described in subclause (II)(aa).
the meanings given the terms in section 6003 (ii) STANDARDS.—The Secretary of the
of the Anti-Money Laundering Act of 2020. Treasury—
(B) REQUIREMENTS.—In imposing any re- (I) in carrying out clause (i), shall es-
quirement to report any suspicious trans- tablish standards to ensure that stream-
action under this subsection, the Secretary lined reports relate to suspicious trans-
of the Treasury, in consultation with the At- actions relevant to potential violations
torney General, appropriate representatives of law (including regulations); and
of State bank supervisors, State credit union (II) in establishing the standards under
supervisors, and the Federal functional regu- subclause (I), shall consider trans-
lators, shall consider items that include— actions, including structured trans-
(i) the national priorities established by actions, designed to evade any regula-
the Secretary; tion promulgated under this subchapter,
(ii) the purposes described in section certain fund and asset transfers with lit-
5311; and tle or no apparent economic or business
(iii) the means by or form in which the purpose, transactions without lawful
Secretary shall receive such reporting, in- purposes, and any other transaction that
cluding the burdens imposed by such the Secretary determines to be appro-
means or form of reporting on persons re- priate.
quired to provide such reporting, the effi-
(iii) RULE OF CONSTRUCTION.—Nothing in
ciency of the means or form, and the bene-
this subparagraph may be construed to
fits derived by the means or form of re- preclude the Secretary of the Treasury
porting by Federal law enforcement agen- from—
cies and the intelligence community in (I) requiring reporting as provided for
countering financial crime, including in subparagraphs (B) and (C); or
money laundering and the financing of ter- (II) notifying Federal law enforcement
rorism. with respect to any transaction that the
(C) COMPLIANCE PROGRAM.—Reports filed Secretary has determined implicates a
under this subsection shall be guided by the national priority established by the Sec-
compliance program of a covered financial retary.
institution with respect to the Bank Secrecy (6) SHARING OF THREAT PATTERN AND TREND
Act, including the risk assessment processes INFORMATION.—
of the covered institution that should in- (A) DEFINITIONS.—In this paragraph—
clude a consideration of priorities estab- (i) the terms ‘‘Bank Secrecy Act’’ and
lished by the Secretary of the Treasury ‘‘Federal functional regulator’’ have the
under section 5318. meanings given the terms in section 6003 of
(D) STREAMLINED DATA AND REAL-TIME RE- the Anti-Money Laundering Act of 2020;
PORTING.— and
(i) REQUIREMENT TO ESTABLISH SYSTEM.— (ii) the term ‘‘typology’’ means a tech-
In considering the means by or form in nique to launder money or finance ter-
which the Secretary of the Treasury shall rorism.
§ 5318 TITLE 31—MONEY AND FINANCE Page 456
(B) SUSPICIOUS ACTIVITY REPORT ACTIVITY (iii) terminate on the date that is 3 years
REVIEW.—Not less frequently than semiannu- after the date of enactment of this para-
ally, the Director of the Financial Crimes graph, except that the Secretary of the
Enforcement Network shall publish threat Treasury may extend the pilot program for
pattern and trend information to provide not more than 2 years upon submitting to
meaningful information about the prepara- the Committee on Banking, Housing, and
tion, use, and value of reports filed under Urban Affairs of the Senate and the Com-
this subsection by financial institutions, as mittee on Financial Services of the House
well as other reports filed by financial insti- of Representatives a report that includes—
tutions under the Bank Secrecy Act. (I) a certification that the extension is
(C) INCLUSION OF TYPOLOGIES.—In each pub- in the national interest of the United
lication published under subparagraph (B), States, with a detailed explanation of
the Director shall provide financial institu- the reasons that the extension is in the
tions and the Federal functional regulators national interest of the United States;
with typologies, including data that can be (II) after appropriate consultation by
adapted in algorithms if appropriate, relat- the Secretary with participants in the
ing to emerging money laundering and ter- pilot program, an evaluation of the use-
fulness of the pilot program, including a
rorist financing threat patterns and trends.
detailed analysis of any illicit activity
(7) RULES OF CONSTRUCTION.—Nothing in this identified or prevented as a result of the
subsection may be construed as precluding the program; and
Secretary of the Treasury from— (III) a detailed legislative proposal pro-
(A) requiring reporting as provided under viding for a long-term extension of ac-
subparagraphs (A) and (B) of paragraph (6); tivities under the pilot program, meas-
or ures to ensure data security, and con-
(B) notifying a Federal law enforcement fidentiality of personally identifiable in-
agency with respect to any transaction that formation, including expected budgetary
the Secretary has determined directly impli- resources for those activities, if the Sec-
cates a national priority established by the retary of the Treasury determines that a
Secretary. long-term extension is appropriate.
(8) PILOT PROGRAM ON SHARING WITH FOREIGN (C) PROHIBITION INVOLVING CERTAIN JURIS-
BRANCHES, SUBSIDIARIES, AND AFFILIATES.— DICTIONS.—
(A) IN GENERAL.— (i) IN GENERAL.—In issuing the rules re-
(i) ISSUANCE OF RULES.—Not later than 1 quired under subparagraph (A), the Sec-
year after the date of enactment of this retary of the Treasury may not permit a
paragraph, the Secretary of the Treasury financial institution to share information
shall issue rules, in coordination with the on reports under this subsection with a
Director of the Financial Crimes Enforce- foreign branch, subsidiary, or affiliate lo-
ment Network, establishing the pilot pro- cated in—
gram described in subparagraph (B). (I) the People’s Republic of China;
(ii) CONSIDERATIONS.—In issuing the (II) the Russian Federation; or
rules required under clause (i), the Sec- (III) a jurisdiction that—
retary shall ensure that the sharing of in- (aa) is a state sponsor of terrorism;
formation described in subparagraph (B)— (bb) is subject to sanctions imposed
(I) is limited by the requirements of by the Federal Government; or
Federal and State law enforcement oper- (cc) the Secretary has determined
ations; cannot reasonably protect the security
(II) takes into account potential con- and confidentiality of such informa-
cerns of the intelligence community; and tion.
(III) is subject to appropriate standards (ii) EXCEPTIONS.—The Secretary is au-
and requirements regarding data secu- thorized to make exceptions, on a case-by-
rity and the confidentiality of personally case basis, for a financial institution lo-
identifiable information. cated in a jurisdiction listed in subclause
(B) PILOT PROGRAM DESCRIBED.—The pilot (I) or (II) of clause (i), if the Secretary no-
program described in this paragraph shall— tifies the Committee on Banking, Housing,
(i) permit a financial institution with a and Urban Affairs of the Senate and the
reporting obligation under this subsection Committee on Financial Services of the
to share information related to reports House of Representatives that such an ex-
under this subsection, including that such ception is in the national security interest
a report has been filed, with the institu- of the United States.
tion’s foreign branches, subsidiaries, and (D) IMPLEMENTATION UPDATES.—Not later
affiliates for the purpose of combating il- than 360 days after the date on which rules
licit finance risks, notwithstanding any are issued under subparagraph (A), and an-
other provision of law except subparagraph nually thereafter for 3 years, the Secretary
(A) or (C); of the Treasury, or the designee of the Sec-
(ii) permit the Secretary to consider, im- retary, shall brief the Committee on Bank-
plement, and enforce provisions that ing, Housing, and Urban Affairs of the Sen-
would hold a foreign affiliate of a United ate and the Committee on Financial Serv-
States financial institution liable for the ices of the House of Representatives on—
disclosure of information related to re- (i) the degree of any information sharing
ports under this section; permitted under the pilot program and a
Page 457 TITLE 31—MONEY AND FINANCE § 5318
description of criteria used by the Sec- pervising and examining compliance with
retary to evaluate the appropriateness of those standards, the Secretary of the Treas-
the information sharing; ury, and the appropriate Federal functional
(ii) the effectiveness of the pilot program regulator (as defined in section 509 of the
in identifying or preventing the violation Gramm-Leach-Bliley Act (12 U.S.C. 6809))
of a United States law or regulation and shall take into account the following:
mechanisms that may improve that effec- (i) Financial institutions are spending
tiveness; and private compliance funds for a public and
(iii) any recommendations to amend the private benefit, including protecting the
design of the pilot program. United States financial system from illicit
(9) TREATMENT OF FOREIGN JURISDICTION- finance risks.
ORIGINATED REPORTS.—Information related to (ii) The extension of financial services to
a report received by a financial institution the underbanked and the facilitation of fi-
from a foreign affiliate with respect to a sus- nancial transactions, including remit-
picious transaction relevant to a possible vio- tances, coming from the United States and
lation of law or regulation shall be subject to abroad in ways that simultaneously pre-
the same confidentiality requirements pro- vent criminal persons from abusing formal
vided under this subsection for a report of a or informal financial services networks are
suspicious transaction described in paragraph key policy goals of the United States.
(1). (iii) Effective anti-money laundering and
(10) NO OFFSHORING COMPLIANCE.—No finan- countering the financing of terrorism pro-
cial institution may establish or maintain any grams safeguard national security and
operation located outside of the United States generate significant public benefits by pre-
the primary purpose of which is to ensure venting the flow of illicit funds in the fi-
compliance with the Bank Secrecy Act as a re- nancial system and by assisting law en-
sult of the sharing granted under this sub- forcement and national security agencies
section. with the identification and prosecution of
(11) DEFINITIONS.—In this subsection: persons attempting to launder money and
(A) AFFILIATE.—The term ‘‘affiliate’’ undertake other illicit activity through
means an entity that controls, is controlled the financial system.
by, or is under common control with another (iv) Anti-money laundering and coun-
entity. tering the financing of terrorism programs
(B) BANK SECRECY ACT; STATE BANK SUPER- described in paragraph (1) should be—
VISOR; STATE CREDIT UNION SUPERVISOR.—The (I) reasonably designed to assure and
terms ‘‘Bank Secrecy Act’’, ‘‘State bank su- monitor compliance with the require-
pervisor’’, and ‘‘State credit union super- ments of this subchapter and regulations
visor’’ have the meanings given the terms in promulgated under this subchapter; and
section 6003 of the Anti-Money Laundering (II) risk-based, including ensuring that
Act of 2020. more attention and resources of finan-
(h) ANTI-MONEY LAUNDERING PROGRAMS.— cial institutions should be directed to-
(1) IN GENERAL.—In order to guard against ward higher-risk customers and activi-
money laundering and the financing of ter- ties, consistent with the risk profile of a
rorism through financial institutions, each fi- financial institution, rather than toward
nancial institution shall establish anti-money lower-risk customers and activities.
laundering and countering the financing of (3) CONCENTRATION ACCOUNTS.—The Sec-
terrorism programs, including, at a min- retary may prescribe regulations under this
imum— subsection that govern maintenance of con-
(A) the development of internal policies, centration accounts by financial institutions,
procedures, and controls; in order to ensure that such accounts are not
(B) the designation of a compliance officer; used to prevent association of the identity of
(C) an ongoing employee training program; an individual customer with the movement of
and funds of which the customer is the direct or
(D) an independent audit function to test beneficial owner, which regulations shall, at a
programs. minimum—
(2) REGULATIONS.— (A) prohibit financial institutions from al-
(A) IN GENERAL.—The Secretary of the lowing clients to direct transactions that
Treasury, after consultation with the appro- move their funds into, out of, or through the
priate Federal functional regulator (as de- concentration accounts of the financial in-
fined in section 509 of the Gramm-Leach-Bli- stitution;
ley Act), may prescribe minimum standards (B) prohibit financial institutions and
for programs established under paragraph their employees from informing customers
(1), and may exempt from the application of of the existence of, or the means of identi-
those standards any financial institution fying, the concentration accounts of the in-
that is not subject to the provisions of the stitution; and
rules contained in part 103 of title 31, of the (C) require each financial institution to es-
Code of Federal Regulations, or any suc- tablish written procedures governing the
cessor rule thereto, for so long as such finan- documentation of all transactions involving
cial institution is not subject to the provi- a concentration account, which procedures
sions of such rules. shall ensure that, any time a transaction in-
(B) FACTORS.—In prescribing the minimum volving a concentration account commingles
standards under subparagraph (A), and in su- funds belonging to 1 or more customers, the
§ 5318 TITLE 31—MONEY AND FINANCE Page 458
identity of, and specific amount belonging (i) DUE DILIGENCE FOR UNITED STATES PRIVATE
to, each customer is documented. BANKING AND CORRESPONDENT BANK ACCOUNTS
(4) PRIORITIES.— INVOLVING FOREIGN PERSONS.—
(A) IN GENERAL.—Not later than 180 days (1) IN GENERAL.—Each financial institution
that establishes, maintains, administers, or
after the date of enactment of this para-
manages a private banking account or a cor-
graph, the Secretary of the Treasury, in con-
respondent account in the United States for a
sultation with the Attorney General, Fed-
non-United States person, including a foreign
eral functional regulators (as defined in sec-
individual visiting the United States, or a rep-
tion 509 of the Gramm-Leach-Bliley Act (15
resentative of a non-United States person
U.S.C. 6809)), relevant State financial regu-
shall establish appropriate, specific, and,
lators, and relevant national security agen-
where necessary, enhanced, due diligence poli-
cies, shall establish and make public prior-
cies, procedures, and controls that are reason-
ities for anti-money laundering and coun- ably designed to detect and report instances of
tering the financing of terrorism policy. money laundering through those accounts.
(B) UPDATES.—Not less frequently than (2) ADDITIONAL STANDARDS FOR CERTAIN COR-
once every 4 years, the Secretary of the RESPONDENT ACCOUNTS.—
Treasury, in consultation with the Attorney (A) IN GENERAL.—Subparagraph (B) shall
General, Federal functional regulators (as apply if a correspondent account is re-
defined in section 509 of the Gramm-Leach- quested or maintained by, or on behalf of, a
Bliley Act (15 U.S.C. 6809)), relevant State fi- foreign bank operating—
nancial regulators, and relevant national se- (i) under an offshore banking license; or
curity agencies, shall update the priorities (ii) under a banking license issued by a
established under subparagraph (A). foreign country that has been designated—
(C) RELATION TO NATIONAL STRATEGY.—The (I) as noncooperative with inter-
Secretary of the Treasury shall ensure that national anti-money laundering prin-
the priorities established under subpara- ciples or procedures by an intergovern-
graph (A) are consistent with the national mental group or organization of which
strategy for countering the financing of ter- the United States is a member, with
rorism and related forms of illicit finance which designation the United States rep-
developed under section 261 of the Coun- resentative to the group or organization
tering Russian Influence in Europe and Eur- concurs; or
asia Act of 2017 (Public Law 115–44; 131 Stat. (II) by the Secretary of the Treasury as
934). warranting special measures due to
(D) RULEMAKING.—Not later than 180 days money laundering concerns.
after the date on which the Secretary of the (B) POLICIES, PROCEDURES, AND CONTROLS.—
Treasury establishes the priorities under The enhanced due diligence policies, proce-
subparagraph (A), the Secretary of the dures, and controls required under paragraph
Treasury, acting through the Director of the (1) shall, at a minimum, ensure that the fi-
Financial Crimes Enforcement Network and nancial institution in the United States
in consultation with the Federal functional takes reasonable steps—
regulators (as defined in section 509 of the (i) to ascertain for any such foreign
Gramm-Leach-Bliley Act (15 U.S.C. 6809)) bank, the shares of which are not publicly
and relevant State financial regulators, traded, the identity of each of the owners
shall, as appropriate, promulgate regula- of the foreign bank, and the nature and ex-
tions to carry out this paragraph. tent of the ownership interest of each such
(E) SUPERVISION AND EXAMINATION.—The owner;
review by a financial institution of the pri- (ii) to conduct enhanced scrutiny of such
orities established under subparagraph (A) account to guard against money laun-
and the incorporation of those priorities, as dering and report any suspicious trans-
appropriate, into the risk-based programs actions under subsection (g); and
established by the financial institution to (iii) to ascertain whether such foreign
meet obligations under this subchapter, the bank provides correspondent accounts to
USA PATRIOT Act (Public Law 107–56; 115 other foreign banks and, if so, the identity
Stat. 272), and other anti-money laundering of those foreign banks and related due dili-
and countering the financing of terrorism gence information, as appropriate under
laws and regulations shall be included as a paragraph (1).
measure on which a financial institution is
(3) MINIMUM STANDARDS FOR PRIVATE BANKING
supervised and examined for compliance
ACCOUNTS.—If a private banking account is re-
with those obligations.
quested or maintained by, or on behalf of, a
(5) DUTY.—The duty to establish, maintain non-United States person, then the due dili-
and enforce an anti-money laundering and gence policies, procedures, and controls re-
countering the financing of terrorism program quired under paragraph (1) shall, at a min-
as required by this subsection shall remain the imum, ensure that the financial institution
responsibility of, and be performed by, persons takes reasonable steps—
in the United States who are accessible to, and (A) to ascertain the identity of the nomi-
subject to oversight and supervision by, the nal and beneficial owners of, and the source
Secretary of the Treasury and the appropriate of funds deposited into, such account as
Federal functional regulator (as defined in sec- needed to guard against money laundering
tion 509 of the Gramm-Leach-Bliley Act (15 and report any suspicious transactions under
U.S.C. 6809)). subsection (g); and
Page 459 TITLE 31—MONEY AND FINANCE § 5318
(B) to conduct enhanced scrutiny of any filiated depository institution, credit union,
such account that is requested or main- or foreign bank described in subparagraph
tained by, or on behalf of, a senior foreign (A), as applicable.
political figure, or any immediate family (4) DEFINITIONS.—For purposes of this sub-
member or close associate of a senior foreign section—
political figure, that is reasonably designed (A) the term ‘‘affiliate’’ means a foreign
to detect and report transactions that may bank that is controlled by or is under com-
involve the proceeds of foreign corruption. mon control with a depository institution,
(4) DEFINITIONS.—For purposes of this sub- credit union, or foreign bank; and
section, the following definitions shall apply: (B) the term ‘‘physical presence’’ means a
(A) OFFSHORE BANKING LICENSE.—The term place of business that—
‘‘offshore banking license’’ means a license (i) is maintained by a foreign bank;
to conduct banking activities which, as a (ii) is located at a fixed address (other
condition of the license, prohibits the li- than solely an electronic address) in a
censed entity from conducting banking ac- country in which the foreign bank is au-
tivities with the citizens of, or with the thorized to conduct banking activities, at
local currency of, the country which issued which location the foreign bank—
the license. (I) employs 1 or more individuals on a
(B) PRIVATE BANKING ACCOUNT.—The term full-time basis; and
‘‘private banking account’’ means an ac- (II) maintains operating records re-
count (or any combination of accounts) lated to its banking activities; and
that—
(iii) is subject to inspection by the bank-
(i) requires a minimum aggregate depos-
ing authority which licensed the foreign
its of funds or other assets of not less than
bank to conduct banking activities.
$1,000,000;
(ii) is established on behalf of 1 or more (k) BANK RECORDS RELATED TO ANTI-MONEY
individuals who have a direct or beneficial LAUNDERING PROGRAMS.—
ownership interest in the account; and (1) DEFINITIONS.—For purposes of this sub-
(iii) is assigned to, or is administered or section, the following definitions shall apply:
managed by, in whole or in part, an officer, (A) APPROPRIATE FEDERAL BANKING AGEN-
employee, or agent of a financial institu- CY.—The term ‘‘appropriate Federal banking
tion acting as a liaison between the finan- agency’’ has the same meaning as in section
cial institution and the direct or beneficial 3 of the Federal Deposit Insurance Act (12
owner of the account. U.S.C. 1813).
(B) COVERED FINANCIAL INSTITUTION.—The
(j) PROHIBITION ON UNITED STATES COR-
term ‘‘covered financial institution’’ means
RESPONDENT ACCOUNTS WITH FOREIGN SHELL
an institution referred to in subsection (j)(1).
BANKS.—
(C) INCORPORATED TERM.—The term ‘‘cor-
(1) IN GENERAL.—A financial institution de-
respondent account’’ has the same meaning
scribed in subparagraphs (A) through (G) of
as in section 5318A(e)(1)(B).
section 5312(a)(2) (in this subsection referred
to as a ‘‘covered financial institution’’) shall (2) 120-HOUR RULE.—Not later than 120 hours
not establish, maintain, administer, or man- after receiving a request by an appropriate
age a correspondent account in the United Federal banking agency for information re-
States for, or on behalf of, a foreign bank that lated to anti-money laundering compliance by
does not have a physical presence in any coun- a covered financial institution or a customer
try. of such institution, a covered financial insti-
(2) PREVENTION OF INDIRECT SERVICE TO FOR- tution shall provide to the appropriate Federal
EIGN SHELL BANKS.—A covered financial insti- banking agency, or make available at a loca-
tution shall take reasonable steps to ensure tion specified by the representative of the ap-
that any correspondent account established, propriate Federal banking agency, informa-
maintained, administered, or managed by that tion and account documentation for any ac-
covered financial institution in the United count opened, maintained, administered or
States for a foreign bank is not being used by managed in the United States by the covered
that foreign bank to indirectly provide bank- financial institution.
ing services to another foreign bank that does (3) FOREIGN BANK RECORDS.—
not have a physical presence in any country. (A) SUBPOENA OF RECORDS.—
The Secretary of the Treasury shall, by regu- (i) IN GENERAL.—Notwithstanding sub-
lation, delineate the reasonable steps nec- section (b), the Secretary of the Treasury
essary to comply with this paragraph. or the Attorney General may issue a sub-
(3) EXCEPTION.—Paragraphs (1) and (2) do not poena to any foreign bank that maintains
prohibit a covered financial institution from a correspondent account in the United
providing a correspondent account to a foreign States and request any records relating to
bank, if the foreign bank— the correspondent account or any account
(A) is an affiliate of a depository institu- at the foreign bank, including records
tion, credit union, or foreign bank that maintained outside of the United States,
maintains a physical presence in the United that are the subject of—
States or a foreign country, as applicable; (I) any investigation of a violation of a
and criminal law of the United States;
(B) is subject to supervision by a banking (II) any investigation of a violation of
authority in the country regulating the af- this subchapter;
§ 5318 TITLE 31—MONEY AND FINANCE Page 460
(III) a civil forfeiture action; or quired to be maintained under this para-
(IV) an investigation pursuant to sec- graph, a covered financial institution shall
tion 5318A. provide the information to the requesting
(ii) PRODUCTION OF RECORDS.—The for- officer not later than 7 days after receipt
eign bank on which a subpoena described of the request.
in clause (i) is served shall produce all re- (C) NONDISCLOSURE OF SUBPOENA.—
quested records and authenticate all re- (i) IN GENERAL.—No officer, director,
quested records with testimony in the partner, employee, or shareholder of, or
manner described in— agent or attorney for, a foreign bank on
(I) rule 902(12) of the Federal Rules of which a subpoena is served under this
Evidence; or paragraph shall, directly or indirectly, no-
(II) section 3505 of title 18. tify any account holder involved or any
(iii) ISSUANCE AND SERVICE OF SUB- person named in the subpoena issued under
POENA.—A subpoena described in clause subparagraph (A)(i) and served on the for-
(i)— eign bank about the existence or contents
(I) shall designate— of the subpoena.
(aa) a return date; and (ii) DAMAGES.—Upon application by the
(bb) the judicial district in which the Attorney General for a violation of this
related investigation is proceeding; subparagraph, a foreign bank on which a
and subpoena is served under this paragraph
shall be liable to the United States Gov-
(II) may be served— ernment for a civil penalty in an amount
(aa) in person; equal to—
(bb) by mail or fax in the United (I) double the amount of the suspected
States if the foreign bank has a rep- criminal proceeds sent through the cor-
resentative in the United States; or respondent account of the foreign bank
(cc) if applicable, in a foreign coun- in the related investigation; or
try under any mutual legal assistance (II) if no such proceeds can be identi-
treaty, multilateral agreement, or fied, not more than $250,000.
other request for international legal or
law enforcement assistance. (D) ENFORCEMENT.—
(i) IN GENERAL.—If a foreign bank fails to
(iv) RELIEF FROM SUBPOENA.— obey a subpoena issued under subpara-
(I) IN GENERAL.—At any time before graph (A)(i), the Attorney General may in-
the return date of a subpoena described voke the aid of the district court of the
in clause (i), the foreign bank on which United States for the judicial district in
the subpoena is served may petition the which the investigation or related pro-
district court of the United States for ceeding is occurring to compel compliance
the judicial district in which the related with the subpoena.
investigation is proceeding, as des- (ii) COURT ORDERS AND CONTEMPT OF
ignated in the subpoena, to modify or COURT.—A court described in clause (i)
quash— may—
(aa) the subpoena; or (I) issue an order requiring the foreign
(bb) the prohibition against disclo- bank to appear before the Secretary of
sure described in subparagraph (C). the Treasury or the Attorney General to
(II) CONFLICT WITH FOREIGN SECRECY OR produce—
CONFIDENTIALITY.—An assertion that (aa) certified records, in accordance
compliance with a subpoena described in with—
clause (i) would conflict with a provision (AA) rule 902(12) of the Federal
of foreign secrecy or confidentiality law Rules of Evidence; or
shall not be a sole basis for quashing or (BB) section 3505 of title 18; or
modifying the subpoena. (bb) testimony regarding the produc-
(B) ACCEPTANCE OF SERVICE.— tion of the certified records; and
(i) MAINTAINING RECORDS IN THE UNITED
(II) punish any failure to obey an order
STATES.—Any covered financial institution
issued under subclause (I) as contempt of
that maintains a correspondent account in
court.
the United States for a foreign bank shall
maintain records in the United States (iii) SERVICE OF PROCESS.—All process in
identifying— a case under this subparagraph shall be
(I) the owners of record and the bene- served on the foreign bank in the same
ficial owners of the foreign bank; and manner as described in subparagraph
(II) the name and address of a person (A)(iii).
who— (E) TERMINATION OF CORRESPONDENT RELA-
(aa) resides in the United States; and TIONSHIP.—
(bb) is authorized to accept service of (i) TERMINATION UPON RECEIPT OF NO-
legal process for records covered under TICE.—A covered financial institution shall
this subsection. terminate any correspondent relationship
(ii) LAW ENFORCEMENT REQUEST.—Upon with a foreign bank not later than 10 busi-
receipt of a written request from a Federal ness days after the date on which the cov-
law enforcement officer for information re- ered financial institution receives written
Page 461 TITLE 31—MONEY AND FINANCE § 5318
notice from the Secretary of the Treasury (iii) under subparagraph (E)(iii)(II).
or the Attorney General if, after consulta- (l) IDENTIFICATION AND VERIFICATION OF
tion with the other, the Secretary of the ACCOUNTHOLDERS.—
Treasury or the Attorney General, as ap- (1) IN GENERAL.—Subject to the requirements
plicable, determines that the foreign bank of this subsection, the Secretary of the Treas-
has failed— ury shall prescribe regulations setting forth
(I) to comply with a subpoena issued
the minimum standards for financial institu-
under subparagraph (A)(i); or
(II) to prevail in proceedings before— tions and their customers regarding the iden-
(aa) the appropriate district court of tity of the customer that shall apply in con-
the United States after challenging a nection with the opening of an account at a fi-
subpoena described in subclause (I) nancial institution.
under subparagraph (A)(iv)(I); or (2) MINIMUM REQUIREMENTS.—The regulations
(bb) a court of appeals of the United shall, at a minimum, require financial institu-
States after appealing a decision of a tions to implement, and customers (after
district court of the United States being given adequate notice) to comply with,
under item (aa). reasonable procedures for—
(A) verifying the identity of any person
(ii) LIMITATION ON LIABILITY.—A covered seeking to open an account to the extent
financial institution shall not be liable to reasonable and practicable;
any person in any court or arbitration pro- (B) maintaining records of the information
ceeding for— used to verify a person’s identity, including
(I) terminating a correspondent rela- name, address, and other identifying infor-
tionship under this subparagraph; or mation; and
(II) complying with a nondisclosure (C) consulting lists of known or suspected
order under subparagraph (C). terrorists or terrorist organizations provided
(iii) FAILURE TO TERMINATE RELATIONSHIP to the financial institution by any govern-
OR FAILURE TO COMPLY WITH A SUBPOENA.— ment agency to determine whether a person
(I) FAILURE TO TERMINATE RELATION- seeking to open an account appears on any
SHIP.—A covered financial institution such list.
that fails to terminate a correspondent
(3) FACTORS TO BE CONSIDERED.—In pre-
relationship under clause (i) shall be lia-
ble for a civil penalty in an amount that scribing regulations under this subsection, the
is not more than $25,000 for each day that Secretary shall take into consideration the
the covered financial institution fails to various types of accounts maintained by var-
terminate the relationship. ious types of financial institutions, the var-
(II) FAILURE TO COMPLY WITH A SUB- ious methods of opening accounts, and the
POENA.— various types of identifying information avail-
(aa) IN GENERAL.—Upon failure to able.
comply with a subpoena under sub- (4) CERTAIN FINANCIAL INSTITUTIONS.—In the
paragraph (A)(i), a foreign bank may case of any financial institution the business
be liable for a civil penalty assessed by of which is engaging in financial activities de-
the issuing agency in an amount that scribed in section 4(k) of the Bank Holding
is not more than $50,000 for each day Company Act of 1956 (including financial ac-
that the foreign bank fails to comply tivities subject to the jurisdiction of the Com-
with the terms of a subpoena. modity Futures Trading Commission), the reg-
(bb) ADDITIONAL PENALTIES.—Begin- ulations prescribed by the Secretary under
ning after the date that is 60 days after paragraph (1) shall be prescribed jointly with
a foreign bank fails to comply with a each Federal functional regulator (as defined
subpoena under subparagraph (A)(i), in section 509 of the Gramm-Leach-Bliley Act,
the Secretary of the Treasury or the including the Commodity Futures Trading
Attorney General may seek additional Commission) appropriate for such financial in-
penalties and compel compliance with stitution.
the subpoena in the appropriate dis- (5) EXEMPTIONS.—The Secretary (and, in the
trict court of the United States. case of any financial institution described in
(cc) VENUE FOR RELIEF.—A foreign paragraph (4), any Federal agency described in
bank may seek review in the appro- such paragraph) may, by regulation or order,
priate district court of the United exempt any financial institution or type of ac-
States of any penalty assessed under count from the requirements of any regulation
this clause and the issuance of a sub- prescribed under this subsection in accordance
poena under subparagraph (A)(i). with such standards and procedures as the
Secretary may prescribe.
(F) ENFORCEMENT OF CIVIL PENALTIES.— (6) EFFECTIVE DATE.—Final regulations pre-
Upon application by the United States, any scribed under this subsection shall take effect
funds held in the correspondent account of a before the end of the 1-year period beginning
foreign bank that is maintained in the on the date of enactment of the International
United States with a covered financial insti- Money Laundering Abatement and Financial
tution may be seized by the United States to Anti-Terrorism Act of 2001.
satisfy any civil penalties that are im-
posed— (m) APPLICABILITY OF RULES.—Any rules pro-
(i) under subparagraph (C)(ii); mulgated pursuant to the authority contained
(ii) by a court for contempt under sub- in section 21 of the Federal Deposit Insurance
paragraph (D); or Act (12 U.S.C. 1829b) shall apply, in addition to
§ 5318 TITLE 31—MONEY AND FINANCE Page 462
any other financial institution to which such reports that may be required under such
rules apply, to any person that engages as a regulations;
business in the transmission of funds, including (iii) identifies the technology necessary
any person who engages as a business in an in- for the Financial Crimes Enforcement Net-
formal money transfer system or any network of work to receive, keep, exploit, protect the
people who engage as a business in facilitating security of, and disseminate information
the transfer of money domestically or inter- from reports of cross-border electronic
nationally outside of the conventional financial transmittals of funds to law enforcement
institutions system. and other entities engaged in efforts
(n) REPORTING OF CERTAIN CROSS-BORDER against money laundering and terrorist fi-
TRANSMITTALS OF FUNDS.— nancing; and
(1) IN GENERAL.—Subject to paragraphs (3) (iv) discusses the information security
and (4), the Secretary shall prescribe regula- protections required by the exercise of the
tions requiring such financial institutions as Secretary’s authority under this sub-
the Secretary determines to be appropriate to section.
report to the Financial Crimes Enforcement
Network certain cross-border electronic trans- (B) CONSULTATION.—In reporting the feasi-
mittals of funds, if the Secretary determines bility report under subparagraph (A), the
that reporting of such transmittals is reason- Secretary may consult with the Bank Se-
ably necessary to conduct the efforts of the crecy Act Advisory Group established by the
Secretary against money laundering and ter- Secretary, and any other group considered
rorist financing. by the Secretary to be relevant.
(2) LIMITATION ON REPORTING REQUIRE- (5) REGULATIONS.—
MENTS.—Information required to be reported (A) IN GENERAL.—Subject to subparagraph
by the regulations prescribed under paragraph (B), the regulations required by paragraph
(1) shall not exceed the information required (1) shall be prescribed in final form by the
to be retained by the reporting financial insti- Secretary, in consultation with the Board of
tution pursuant to section 21 of the Federal Governors of the Federal Reserve System,
Deposit Insurance Act and the regulations pro- before the end of the 3-year period beginning
mulgated thereunder, unless— on the date of enactment of the National In-
(A) the Board of Governors of the Federal
telligence Reform Act of 2004.
Reserve System and the Secretary jointly (B) TECHNOLOGICAL FEASIBILITY.—No regu-
determine that a particular item or items of
lations shall be prescribed under this sub-
information are not currently required to be
section before the Secretary certifies to the
retained under such section or such regula-
Congress that the Financial Crimes Enforce-
tions; and
(B) the Secretary determines, after con- ment Network has the technological sys-
sultation with the Board of Governors of the tems in place to effectively and efficiently
Federal Reserve System, that the reporting receive, keep, exploit, protect the security
of such information is reasonably necessary of, and disseminate information from re-
to conduct the efforts of the Secretary to ports of cross-border electronic transmittals
identify cross-border money laundering and of funds to law enforcement and other enti-
terrorist financing. ties engaged in efforts against money laun-
dering and terrorist financing.
(3) FORM AND MANNER OF REPORTS.—In pre-
scribing the regulations required under para- (o) TESTING.—
graph (1), the Secretary shall, subject to para- (1) IN GENERAL.—The Secretary of the Treas-
graph (2), determine the appropriate form, ury, in consultation with the head of each
manner, content, and frequency of filing of the agency to which the Secretary has delegated
required reports. duties or powers under subsection (a), shall
(4) FEASIBILITY REPORT.— issue a rule to specify with respect to tech-
(A) IN GENERAL.—Before prescribing the nology and related technology internal proc-
regulations required under paragraph (1), esses designed to facilitate compliance with
and as soon as is practicable after the date the requirements under this subchapter, the
of enactment of the Intelligence Reform and standards by which financial institutions are
Terrorism Prevention Act of 2004, the Sec- to test the technology and related technology
retary shall submit a report to the Com- internal processes.
mittee on Banking, Housing, and Urban Af- (2) STANDARDS.—The standards described in
fairs of the Senate and the Committee on Fi- paragraph (1) may include—
nancial Services of the House of Representa- (A) an emphasis on using innovative ap-
tives that— proaches such as machine learning or other
(i) identifies the information in cross- enhanced data analytics processes;
border electronic transmittals of funds (B) risk-based testing, oversight, and other
that may be found in particular cases to be risk management approaches of the regime,
reasonably necessary to conduct the ef- prior to and after implementation, to facili-
forts of the Secretary to identify money tate calibration of relevant systems and pru-
laundering and terrorist financing, and dently evaluate and monitor the effective-
outlines the criteria to be used by the Sec- ness of their implementation;
retary to select the situations in which re- (C) specific criteria for when and how risk-
porting under this subsection may be re- based testing against existing processes
quired; should be considered to test and validate the
(ii) outlines the appropriate form, man- effectiveness of relevant systems and situa-
ner, content, and frequency of filing of the tions and standards for when other risk
Page 463 TITLE 31—MONEY AND FINANCE § 5318
management processes, including those de- (q) INTERAGENCY COORDINATION AND CONSULTA-
veloped by or through third party risk and TION.—
compliance management systems, and over- (1) IN GENERAL.—The Secretary of the Treas-
sight may be more appropriate; ury shall, as appropriate, invite an appropriate
(D) specific standards for a risk govern- State bank supervisor and an appropriate
ance framework for financial institutions to State credit union supervisor to participate in
provide oversight and to prudently evaluate the interagency consultation and coordination
and monitor systems and testing processes with the Federal depository institution regu-
both pre- and post-implementation; lators regarding the development or modifica-
(E) requirements for appropriate data pri- tion of any rule or regulation carrying out
vacy and information security; and this subchapter.
(F) a requirement that the system configu- (2) RULES OF CONSTRUCTION.—Nothing in this
rations, including any applicable algorithms subsection may be construed to—
and any validation of those configurations (A) affect, modify, or limit the discretion
used by the regime be disclosed to the Fi- of the Secretary of the Treasury with re-
nancial Crimes Enforcement Network and spect to the methods or forms of interagency
the appropriate Federal functional regulator consultation and coordination; or
upon request. (B) require the Secretary of the Treasury
(3) CONFIDENTIALITY OF ALGORITHMS.— or a Federal depository institution regulator
(A) IN GENERAL.—If a financial institution to coordinate or consult with an appropriate
or any director, officer, employee, or agent State bank supervisor or to invite such su-
of any financial institution, voluntarily or pervisor to participate in interagency con-
pursuant to this subsection or any other au- sultation and coordination with respect to a
thority, discloses the algorithms of the fi- matter, including a rule or regulation, spe-
nancial institution to a government agency, cifically affecting only Federal depository
the algorithms and any materials associated institutions or Federal credit unions.
with the creation or adaption of such algo-
(3) DEFINITIONS.—In this subsection:
rithms shall be considered confidential and
(A) APPROPRIATE STATE BANK SUPER-
not subject to public disclosure.
VISOR.—The term ‘‘appropriate State bank
(B) FREEDOM OF INFORMATION ACT.—Section
552(a)(3) of title 5 (commonly known as the supervisor’’ means the Chairman or mem-
‘‘Freedom of Information Act’’) shall not bers of the State Liaison Committee of the
apply to any request for algorithms de- Financial Institutions Examination Council.
scribed in subparagraph (A) and any mate- (B) APPROPRIATE STATE CREDIT UNION SU-
PERVISOR.—The term ‘‘appropriate State
rials associated with the creation or adapta-
tion of the algorithms. credit union supervisor’’ means the Chair-
man or members of the State Liaison Com-
(4) DEFINITION.—In this subsection, the term mittee of the Financial Institutions Exam-
‘‘Federal functional regulator’’ means— ination Council.
(A) the Board of Governors of the Federal (C) FEDERAL CREDIT UNION.—The term
Reserve System; ‘‘Federal credit union’’ has the meaning
(B) the Office of the Comptroller of the given the term in section 101 of the Federal
Currency; Credit Union Act (12 U.S.C. 1752).
(C) the Federal Deposit Insurance Corpora-
(D) FEDERAL DEPOSITORY INSTITUTION.—The
tion;
(D) the National Credit Union Administra- term ‘‘Federal depository institution’’ has
tion; the meaning given the term in section 3 of
(E) the Securities and Exchange Commis- the Federal Deposit Insurance Act (12 U.S.C.
sion; and 1813).
(F) the Commodity Futures Trading Com- (E) FEDERAL DEPOSITORY INSTITUTION REGU-
mission. LATORS.—The term ‘‘Federal depository in-
stitution regulator’’ means a member of the
(p) SHARING OF COMPLIANCE RESOURCES.— Financial Institutions Examination Council
(1) SHARING PERMITTED.—In order to more ef-
to which is delegated any authority of the
ficiently comply with the requirements of this
Secretary under subsection (a)(1).
subchapter, 2 or more financial institutions
may enter into collaborative arrangements, as (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 999; Pub.
described in the statement entitled ‘‘Inter- L. 99–570, title I, § 1356(a), (b), (c)(2), Oct. 27, 1986,
agency Statement on Sharing Bank Secrecy 100 Stat. 3207–23, 3207–24; Pub. L. 100–690, title VI,
Act Resources’’, published on October 3, 2018, §§ 6185(e), 6469(c), Nov. 18, 1988, 102 Stat. 4357,
by the Board of Governors of the Federal Re- 4377; Pub. L. 102–550, title XV, §§ 1504(d)(1), 1513,
serve System, the Federal Deposit Insurance 1517(b), Oct. 28, 1992, 106 Stat. 4055, 4058, 4059;
Corporation, the Financial Crimes Enforce- Pub. L. 103–322, title XXXIII, § 330017(b)(1), Sept.
ment Network, the National Credit Union Ad- 13, 1994, 108 Stat. 2149; Pub. L. 103–325, title IV,
ministration, and the Office of the Comp- §§ 403(a), 410, 413(b)(1), Sept. 23, 1994, 108 Stat.
troller of the Currency. 2245, 2252, 2254; Pub. L. 107–56, title III, §§ 312(a),
(2) OUTREACH.—The Secretary of the Treas- 313(a), 319(b), 325, 326(a), 351, 352(a), 358(b), 359(c),
ury and the appropriate supervising agencies 365(c)(2)(B), Oct. 26, 2001, 115 Stat. 304, 306, 312,
shall carry out an outreach program to pro- 317, 320, 322, 326, 328, 335; Pub. L. 108–159, title
vide financial institutions with information, VIII, § 811(g), Dec. 4, 2003, 117 Stat. 2012; Pub. L.
including best practices, with respect to the 108–458, title VI, §§ 6202(h), 6203(c), (d), 6302, Dec.
collaborative arrangements described in para- 17, 2004, 118 Stat. 3746–3748; Pub. L. 109–177, title
graph (1). IV, § 407, Mar. 9, 2006, 120 Stat. 245; Pub. L. 112–74,
§ 5318 TITLE 31—MONEY AND FINANCE Page 464
div. C, title I, § 118, Dec. 23, 2011, 125 Stat. 891; The USA PATRIOT Act (Public Law 107–56; 115 Stat.
Pub. L. 113–156, § 2(a), Aug. 8, 2014, 128 Stat. 1829; 272), referred to in subsec. (h)(4)(E), is Pub. L. 107—56,
Pub. L. 116–283, div. F, title LXI, §§ 6101(b), Oct. 26, 2001, 115 Stat. 272, also known as the Uniting
and Strengthening America by Providing Appropriate
6102(c), title LXII, §§ 6202, 6206, 6209(a), 6212,
Tools Required to Intercept and Obstruct Terrorism
6213(a), title LXIII, §§ 6301, 6308(a), Jan. 1, 2021, Act of 2001. For complete classification of this Act to
134 Stat. 4550, 4553, 4566, 4571, 4573, 4576, 4579, 4584, the Code, see Short Title of 2001 Amendment note set
4590.) out under section 1 of Title 18, Crimes and Criminal
Procedure, and Tables.
HISTORICAL AND REVISION NOTES The Federal Rules of Evidence, referred to in subsec.
(k)(3)(A)(ii)(I), (D)(ii)(I)(aa)(AA), are set out in the Ap-
Revised Source (U.S. Code) Source (Statutes at Large)
Section pendix to Title 28, Judiciary and Judicial Procedure.
Section 4(k) of the Bank Holding Company Act of
5318 ......... 31:1054(a), (b)(1st Oct. 26, 1970, Pub. L. 91–508, 1956, referred to in subsec. (l)(4), is classified to section
sentence). §§ 205(a), (b)(1st sentence),
206, 84 Stat. 1120. 1843(k) of Title 12, Banks and Banking.
31:1055. The date of enactment of the International Money
Laundering Abatement and Financial Anti-Terrorism
In the section, before clause (1), the words ‘‘have the Act of 2001, referred to in subsec. (l)(6), is the date of
responsibility to assure compliance with the require- enactment of title III of Pub. L. 107–56, which was ap-
ments of this chapter’’ in 31:1054(a) are omitted as un- proved Oct. 26, 2001.
necessary because of section 321 of the revised title. The date of enactment of the Intelligence Reform and
The words ‘‘(except under section 5315 of this title and Terrorism Prevention Act of 2004, referred to in subsec.
regulations prescribed under section 5315)’’ are added (n)(4)(A), is the date of enactment of Pub. L. 108–458,
because 31:1141–1143 was not enacted as a part of the which was approved Dec. 17, 2004.
Currency and Foreign Transactions Reporting Act that The date of enactment of the National Intelligence
is restated in this subchapter. In clause (1), the words Reform Act of 2004, referred to in subsec. (n)(5)(A),
‘‘duties and powers’’ are substituted for ‘‘responsibil- probably means the date of enactment of the National
ities’’ for consistency in the revised title and with Security Intelligence Reform Act of 2004, title I of Pub.
other titles of the United States Code. The words L. 108–458, which was approved Dec. 17, 2004.
‘‘bank supervisory agency, or other’’ are omitted as For provisions relating to the Bank Secrecy Act Ad-
surplus. In clause (2), the words ‘‘by regulation’’ and visory Group, referred to in subsec. (n)(4)(B), see sec-
‘‘as he may deem’’ are omitted as surplus. The words tion 1564 of Pub. L. 102–550, which is set out as a note
‘‘and regulations prescribed under this subchapter’’ are under section 5311 of this title.
added because of the restatement. In clause (3), the AMENDMENTS
word ‘‘prescribe’’ is substituted for ‘‘make’’ in 31:1055
for consistency in the revised title and with other titles 2021—Subsec. (a)(1). Pub. L. 116–283, § 6101(b)(1), sub-
of the Code. The words ‘‘otherwise imposed’’, 31:1055(1st stituted ‘‘subsections (b)(2) and (h)(4)’’ for ‘‘subsection
sentence), and the words ‘‘in his discretion’’ are omit- (b)(2)’’.
Subsec. (a)(2). Pub. L. 116–283, § 6101(c), inserted
ted as surplus.
‘‘, including the collection and reporting of certain in-
formation as the Secretary of the Treasury may pre-
Editorial Notes scribe by regulation,’’ after ‘‘appropriate procedures’’
REFERENCES IN TEXT and ‘‘, the financing of terrorism, or other forms of il-
licit finance’’ after ‘‘money laundering’’.
Section 21 of the Federal Deposit Insurance Act, re- Subsec. (g)(2)(A)(i). Pub. L. 116–283, § 6212(b)(1), in-
ferred to in subsecs. (b)(1), (m), and (n)(2), is classified serted ‘‘or otherwise reveal any information that would
to section 1829b of Title 12, Banks and Banking. reveal that the transaction has been reported,’’ after
Section 411 of the National Housing Act, referred to ‘‘transaction has been reported’’.
in subsec. (b)(1), which was classified to section 1730d of Subsec. (g)(2)(A)(ii). Pub. L. 116–283, § 6212(b)(2), in-
Title 12, was repealed by Pub. L. 101–73, title IV, § 407, serted ‘‘or otherwise reveal any information that would
Aug. 9, 1989, 103 Stat. 363. reveal that the transaction has been reported,’’ after
Chapter 2 of Public Law 91–508 (12 U.S.C. 1951 et seq.), ‘‘transaction has been reported,’’.
referred to in subsec. (b)(1), probably means chapter 2 Subsec. (g)(5). Pub. L. 116–283, § 6202, added par. (5).
(§§ 121 to 129) of title I of Pub. L. 91–508, Oct. 26, 1970, 84 Subsec. (g)(6), (7). Pub. L. 116–283, § 6206, added pars.
Stat. 1116, which is classified generally to chapter 21 (6) and (7).
(§ 1951 et seq.) of Title 12. For complete classification of Subsec. (g)(8) to (11). Pub. L. 116–283, § 6212(a), added
chapter 2 to the Code, see Tables. pars. (8) to (11).
Subsection (a)(5), referred to in subsec. (f), was redes- Subsec. (h)(1). Pub. L. 116–283, § 6101(b)(2)(A), inserted
ignated subsection (a)(6) by section 410(a)(2) of Pub. L. ‘‘and the financing of terrorism’’ after ‘‘money laun-
103–325. dering’’ and ‘‘and countering the financing of ter-
Section 18(w) of the Federal Deposit Insurance Act, rorism’’ after ‘‘anti-money laundering’’ in introductory
referred to in subsec. (g)(2)(B)(i)(I), is classified to sec- provisions.
tion 1828(w) of Title 12, Banks and Banking. Subsec. (h)(2). Pub. L. 116–283, § 6101(b)(2)(B), inserted
Section 6003 of the Anti-Money Laundering Act of subpar. (A) designation and heading and added subpar.
2020, referred to in subsec. (g)(5)(A), (6)(A)(i), (11)(B), is (B).
Subsec. (h)(4), (5). Pub. L. 116–283, § 6101(b)(2)(C), added
section 6003 of Pub. L. 116–283, div. F, Jan. 1, 2021, 134
pars. (4) and (5).
Stat. 4548, which is set out as a note under section 5311
Subsec. (k)(1)(B), (C). Pub. L. 116–283, § 6308(a)(1),
of this title.
added subpar. (B) and redesignated subpar. (B) as (C).
The date of enactment of this paragraph, referred to Subsec. (k)(3). Pub. L. 116–283, § 6308(a)(2), added par.
in subsecs. (g)(8)(A)(i), (B)(iii), and (h)(4)(A), is the date (3) and struck out former par (3), which related to for-
of enactment of Pub. L. 116–283, which was approved eign bank records, including summons or subpoena of
Jan. 1, 2021. records, acceptance of service, and termination of cor-
Section 509 of the Gramm-Leach-Bliley Act, referred respondent relationship.
to in subsecs. (h)(2), (4)(A), (B), (D), (5) and (l)(4), is clas- Subsec. (o). Pub. L. 116–283, § 6209(a), added subsec. (o).
sified to section 6809 of Title 15, Commerce and Trade. Subsec. (p). Pub. L. 116–283, § 6213(a), added subsec. (p).
Section 261 of the Countering Russian Influence in Subsec. (q). Pub. L. 116–283, § 6301, added subsec. (q).
Europe and Eurasia Act of 2017 (Public Law 115–44; 131 2014—Subsec. (a)(6), (7). Pub. L. 113–156 added par. (6)
Stat. 934), referred to in subsec. (h)(4)(C), probably and redesignated former par. (6) as (7).
means section 261 of title II of Pub. L. 115–44, Aug. 2, 2011—Subsec. (g)(2)(A)(i). Pub. L. 112–74, § 118(1), added
2017, 131 Stat. 934, which is not classified to the Code. cl. (i) and struck out former cl. (i) which read as fol-
Page 465 TITLE 31—MONEY AND FINANCE § 5318
lows: ‘‘the financial institution, director, officer, em- Subsec. (h)(3). Pub. L. 107–56, § 325, as amended by
ployee, or agent may not notify any person involved in Pub. L. 108–458, § 6202(h), added par. (3).
the transaction that the transaction has been reported; Subsec. (i). Pub. L. 107–56, § 312(a), added subsec. (i).
and’’. Subsec. (j). Pub. L. 107–56, § 313(a), added subsec. (j).
Subsec. (g)(2)(A)(ii). Pub. L. 112–74, § 118(2), sub- Subsec. (k). Pub. L. 107–56, § 319(b), added subsec. (k).
stituted ‘‘no current or former officer or employee of or Subsec. (l). Pub. L. 107–56, § 359(c), added subsec. (l) re-
contractor for’’ for ‘‘no officer or employee of’’ and in- lating to applicability of rules.
serted ‘‘or for’’ before ‘‘any State’’. Pub. L. 107–56, § 326(a), added subsec. (l) relating to
2006—Subsec. (n)(4)(A). Pub. L. 109–177 substituted identification and verification of accountholders.
‘‘Intelligence Reform and Terrorism Prevention Act of 1994—Subsec. (a)(5). Pub. L. 103–325, § 410(a), added
2004’’ for ‘‘National Intelligence Reform Act of 2004’’ in par. (5). Former par. (5) redesignated (6).
introductory provisions. Subsec. (a)(6). Pub. L. 103–325, § 410(b), inserted ‘‘under
2004—Subsec. (h)(3). Pub. L. 108–458, § 6202(h), made this paragraph or paragraph (5)’’ after ‘‘revoke an ex-
technical correction to directory language of Pub. L. emption’’ in penultimate sentence.
107–56, § 325. See 2001 Amendment note below. Pub. L. 103–325, § 410(a)(2), redesignated par. (5) as (6).
Subsec. (i)(3)(B). Pub. L. 108–458, § 6203(c)(1), inserted Subsec. (g). Pub. L. 103–322, § 330017(b)(1), and Pub. L.
comma before ‘‘that is reasonably designed’’. 103–325, § 413(b)(1), amended directory language of Pub.
Subsec. (i)(4). Pub. L. 108–458, § 6203(c)(2), substituted L. 102–550, § 1517(b), identically. See 1992 Amendment
‘‘Definitions’’ for ‘‘Definition’’ in heading. note below.
Subsec. (k)(1)(B). Pub. L. 108–458, § 6203(d), substituted
Subsec. (g)(4). Pub. L. 103–325, § 403(a), added par. (4).
‘‘section 5318A(e)(1)(B)’’ for ‘‘section 5318A(f)(1)(B)’’.
Subsec. (h). Pub. L. 103–322, § 330017(b)(1), and Pub. L.
Subsec. (n). Pub. L. 108–458, § 6302, added subsec. (n).
2003—Subsecs. (l), (m). Pub. L. 108–159 redesignated 103–325, § 413(b)(1), amended directory language of Pub.
subsec. (l), relating to applicability of rules, as (m). L. 102–550, § 1517(b), identically. See 1992 Amendment
2001—Subsec. (a)(2), (3). Pub. L. 107–56, note below.
§ 365(c)(2)(B)(ii), inserted ‘‘or nonfinancial trades or 1992—Subsec. (a)(1). Pub. L. 102–550, § 1504(d)(1), sub-
businesses’’ after ‘‘financial institutions’’. stituted ‘‘supervising agency and the United States
Subsec. (a)(4). Pub. L. 107–56, § 365(c)(2)(B)(i), inserted Postal Service’’ for ‘‘supervising agency or the Postal
‘‘or nonfinancial trade or business’’ after ‘‘financial in- Inspection Service and the Postal Service’’.
stitution’’ in two places. Subsec. (a)(2). Pub. L. 102–550, § 1513, inserted before
Subsec. (c)(1). Pub. L. 107–56, § 365(c)(2)(B)(i), inserted semicolon ‘‘or to guard against money laundering’’.
‘‘or nonfinancial trade or business’’ after ‘‘financial in- Subsecs. (g), (h). Pub. L. 102–550, § 1517(b), as amended
stitution’’. by Pub. L. 103–322, § 330017(b)(1), and Pub. L. 103–325,
Subsec. (f). Pub. L. 107–56, § 365(c)(2)(B)(i), inserted ‘‘or § 413(b)(1), added subsecs. (g) and (h).
nonfinancial trade or business’’ after ‘‘financial insti- 1988—Subsec. (a)(1). Pub. L. 100–690, § 6469(c), inserted
tution’’ in introductory provisions. ‘‘or the Postal Inspection Service’’ after ‘‘appropriate
Subsec. (g)(2). Pub. L. 107–56, § 351(b), reenacted head- supervising agency’’.
ing without change and amended text generally. Prior Pub. L. 100–690, § 6185(e), inserted ‘‘and the Postal
to amendment, text read as follows: ‘‘A financial insti- Service’’ after ‘‘appropriate supervising agency’’.
tution, and a director, officer, employee, or agent of 1986—Pub. L. 99–570, § 1356(c)(2), substituted ‘‘Compli-
any financial institution, who voluntarily reports a ance, exemptions, and summons authority’’ for ‘‘Com-
suspicious transaction, or that reports a suspicious pliance and exemptions’’ in section catchline.
transaction pursuant to this section or any other au- Subsec. (a). Pub. L. 99–570, § 1356(a)(1)–(5), designated
thority, may not notify any person involved in the existing provisions as subsec. (a), added subsec. head-
transaction that the transaction has been reported.’’ ing, inserted ‘‘except as provided in subsection (b)(2),’’
Subsec. (g)(3). Pub. L. 107–56, § 351(a), reenacted head- in par. (1), added pars. (3) and (4), and redesignated
ing without change and amended text generally. Prior former par. (3) as (5).
to amendment, text read as follows: ‘‘Any financial in- Subsecs. (b) to (e). Pub. L. 99–570, § 1356(a)(6), added
stitution that makes a disclosure of any possible viola- subsecs. (b) to (e).
tion of law or regulation or a disclosure pursuant to Subsec. (f). Pub. L. 99–570, § 1356(b), added subsec. (f).
this subsection or any other authority, and any direc-
tor, officer, employee, or agent of such institution, Statutory Notes and Related Subsidiaries
shall not be liable to any person under any law or regu-
lation of the United States or any constitution, law, or EFFECTIVE DATE OF 2004 AMENDMENT
regulation of any State or political subdivision thereof, Amendment by sections 6202(h) and 6203(c), (d) of Pub.
for such disclosure or for any failure to notify the per- L. 108–458 effective as if included in Pub. L. 107–56, as of
son involved in the transaction or any other person of the date of enactment of such Act, and no amendment
such disclosure.’’ made by Pub. L. 107–56 that is inconsistent with such
Subsec. (g)(4)(B). Pub. L. 107–56, § 358(b), substituted amendment to be deemed to have taken effect, see sec-
‘‘, supervisory agency, or United States intelligence tion 6205 of Pub. L. 108–458, set out as a note under sec-
agency for use in the conduct of intelligence or coun- tion 1828 of Title 12, Banks and Banking.
terintelligence activities, including analysis, to protect
against international terrorism’’ for ‘‘or supervisory EFFECTIVE DATE OF 2003 AMENDMENT
agency’’. Amendment by Pub. L. 108–159 subject to joint regu-
Subsec. (h). Pub. L. 107–56, § 352(a), reenacted heading
lations establishing effective dates as prescribed by
without change and amended text of subsec. (h) gen-
Federal Reserve Board and Federal Trade Commission,
erally. Prior to amendment, text read as follows:
except as otherwise provided, see section 3 of Pub. L.
‘‘(1) IN GENERAL.—In order to guard against money
108–159, set out as a note under section 1681 of Title 15,
laundering through financial institutions, the Sec-
Commerce and Trade.
retary may require financial institutions to carry out
anti-money laundering programs, including at a min- EFFECTIVE DATE OF 2001 AMENDMENT
imum
‘‘(A) the development of internal policies, proce- Pub. L. 107–56, title III, § 312(b)(2), Oct. 26, 2001, 115
dures, and controls, Stat. 306, provided that: ‘‘Section 5318(i) of title 31,
‘‘(B) the designation of a compliance officer, United States Code, as added by this section, shall take
‘‘(C) an ongoing employee training program, and effect 270 days after the date of enactment of this Act
‘‘(D) an independent audit function to test pro- [Oct. 26, 2001], whether or not final regulations are
grams. issued under paragraph (1) [set out below], and the fail-
‘‘(2) REGULATIONS.—The Secretary may prescribe ure to issue such regulations shall in no way affect the
minimum standards for programs established under enforceability of this section [amending this section
paragraph (1).’’ and enacting provisions set out as a note below] or the
§ 5318 TITLE 31—MONEY AND FINANCE Page 466
amendments made by this section. Section 5318(i) of picious activity reports filed by those financial insti-
title 31, United States Code, as added by this section, tutions and discuss trends in suspicious activity ob-
shall apply with respect to accounts covered by that served by FinCEN.
section 5318(i), that are opened before, on, or after the ‘‘(2) COORDINATION WITH FEDERAL FUNCTIONAL REGU-
date of enactment of this Act.’’ LATORS AND STATE BANK SUPERVISORS AND STATE CRED-
Pub. L. 107–56, title III, § 313(b), Oct. 26, 2001, 115 Stat. IT UNION SUPERVISORS.—FinCEN shall provide any
307, provided that: ‘‘The amendment made by sub- feedback solicited under paragraph (1) to the appro-
section (a) [amending this section] shall take effect at priate Federal functional regulator, State bank su-
the end of the 60-day period beginning on the date of pervisor, or State credit union supervisor during the
enactment of this Act [Oct. 26, 2001].’’ regularly scheduled examination of the applicable fi-
Pub. L. 107–56, title III, § 352(b), Oct. 26, 2001, 115 Stat. nancial institution by the Federal functional regu-
322, provided that: ‘‘The amendment made by sub- lator, State bank supervisor, or State credit union
section (a) [amending this section] shall take effect at supervisor, as applicable.
the end of the 180-day period beginning on the date of ‘‘(b) DISCLOSURE REQUIRED.—
enactment of this Act [Oct. 26, 2001].’’ ‘‘(1) IN GENERAL.—
Amendment by section 358(b) of Pub. L. 107–56 appli- ‘‘(A) PERIODIC DISCLOSURE.—Except as provided in
cable with respect to reports filed or records main- paragraph (2), FinCEN shall, to the extent prac-
tained on, before, or after Oct. 26, 2001, see section ticable, periodically disclose to each financial insti-
358(h) of Pub. L. 107–56, set out as a note under section tution, in summary form, information on sus-
1829b of Title 12, Banks and Banking. picious activity reports filed that proved useful to
Federal or State criminal or civil law enforcement
EFFECTIVE DATE OF 1994 AMENDMENT agencies during the period since the most recent
Pub. L. 103–322, title XXXIII, § 330017(b)(1), Sept. 13, disclosure under this paragraph to the financial in-
1994, 108 Stat. 2149, and Pub. L. 103–325, title IV, stitution.
§ 413(b)(1), Sept. 23, 1994, 108 Stat. 2254, provided that the ‘‘(B) RULE OF CONSTRUCTION.—Nothing in this
identical amendments made by those sections are effec- paragraph may be construed to require the public
tive Oct. 28, 1992. disclosure of any information filed with the Depart-
ment of the Treasury under the Bank Secrecy Act.
REGULATIONS ‘‘(2) EXCEPTION FOR ONGOING OR CLOSED INVESTIGA-
TIONS AND TO PROTECT NATIONAL SECURITY.—FinCEN
Secretary of the Treasury required to consult with
shall not be required to disclose to a financial insti-
State supervisory agencies in issuing rules to carry out
tution any information under paragraph (1) that re-
subsec. (a)(6) of this section, see section 2(c) of Pub. L.
lates to an ongoing or closed investigation or impli-
113–156, set out as a Consultation with State Agencies
cates the national security of the United States.
note under section 1958 of Title 12, Banks and Banking. ‘‘(3) MAINTENANCE OF STATISTICS.—With respect to
Pub. L. 107–56, title III, § 312(b)(1), Oct. 26, 2001, 115 the actions described in paragraph (1), FinCEN shall
Stat. 305, provided that: ‘‘Not later than 180 days after keep records of all such actions taken to assist with
the date of enactment of this Act [Oct. 26, 2001], the the production of the reports described in paragraph
Secretary [of the Treasury], in consultation with the (5) of section 5318(g) of title 31, United States Code, as
appropriate Federal functional regulators (as defined in added by section 6202 of this division, and for other
section 509 of the Gramm-Leach-Bliley Act [15 U.S.C. purposes.
6809]) of the affected financial institutions, shall fur- ‘‘(4) COORDINATION WITH DEPARTMENT OF JUSTICE.—
ther delineate, by regulation, the due diligence poli- The information disclosed by FinCEN under this sub-
cies, procedures, and controls required under section section shall include information from the Depart-
5318(i)(1) of title 31, United States Code, as added by ment of Justice regarding—
this section.’’ ‘‘(A) the review and use by the Department of sus-
Pub. L. 107–56, title III, § 352(c), Oct. 26, 2001, 115 Stat. picious activity reports filed by the applicable fi-
322, provided that: ‘‘Before the end of the 180-day period nancial institution during the period since the most
beginning on the date of enactment of this Act [Oct. 26, recent disclosure under this subsection; and
2001], the Secretary [of the Treasury] shall prescribe ‘‘(B) any trends in suspicious activity observed by
regulations that consider the extent to which the re- the Department.’’
quirements imposed under this section [amending this [For definition of terms used in section 6203 of Pub.
section and enacting provisions set out as a note above] L. 116–283, set out above, see section 6003 of Pub. L.
are commensurate with the size, location, and activi- 116–283, set out as a Definitions note under section 5311
ties of the financial institutions to which such regula- of this title.]
tions apply.’’
UPDATE OF MANUAL
RULE OF CONSTRUCTION
For requirement that Financial Institutions Exam-
Pub. L. 116–283, div. F, title LXII, § 6213(b), Jan. 1, ination Council manual be updated to reflect the rule-
2021, 134 Stat. 4579, provided that: ‘‘The amendment making required by subsec. (o) of this section, as added
made by subsection (a) [amending this section] may by Pub. L. 116–283, see section 6209(b)(1) of Pub. L.
not be construed to require financial institutions to 116–283, set out as a note under section 3305 of Title 12,
share resources.’’ Banks and Banking.
[For definition of ‘‘financial institution’’ as used in
section 6213(b) of Pub. L. 116–283, set out above, see sec- GRACE PERIOD
tion 6003 of Pub. L. 116–283, set out as a Definitions note Pub. L. 107–56, title III, § 319(c), Oct. 26, 2001, 115 Stat.
under section 5311 of this title.] 314, provided that: ‘‘Financial institutions shall have 60
days from the date of enactment of this Act [Oct. 26,
LAW ENFORCEMENT FEEDBACK ON SUSPICIOUS ACTIVITY
2001] to comply with the provisions of section 5318(k) of
REPORTS
title 31, United States Code, as added by this section.’’
Pub. L. 116–283, div. F, title LXII, § 6203, Jan. 1, 2021,
‘‘FEDERAL FUNCTIONAL REGULATOR’’ INCLUDES
134 Stat. 4568, provided that:
COMMODITY FUTURES TRADING COMMISSION
‘‘(a) FEEDBACK.—
‘‘(1) IN GENERAL.—FinCEN [Financial Crimes En- Pub. L. 107–56, title III, § 321(c), Oct. 26, 2001, 115 Stat.
forcement Network of Department of the Treasury] 315, provided that: ‘‘For purposes of this Act [probably
shall, to the extent practicable, periodically solicit should be ‘‘title’’, see Short Title of 2001 Amendment
feedback from individuals designated under section note set out under section 5301 of this title] and any
5318(h)(1)(B) of title 31, United States Code, by a vari- amendment made by this Act to any other provision of
ety of financial institutions representing a cross-sec- law, the term ‘Federal functional regulator’ includes
tion of the reporting industry to review the sus- the Commodity Futures Trading Commission.’’
Page 467 TITLE 31—MONEY AND FINANCE § 5318A
REPORTING OF SUSPICIOUS ACTIVITIES BY SECURITIES ‘‘(c) REPORT TO CONGRESS.—The Financial Institu-
BROKERS AND DEALERS; INVESTMENT COMPANY STUDY tions Examination Council shall submit a report on the
Pub. L. 107–56, title III, § 356(a), (b), Oct. 26, 2001, 115 progress made in carrying out subsection (a) and the
Stat. 324, provided that: usefulness of information received pursuant to sub-
‘‘(a) DEADLINE FOR SUSPICIOUS ACTIVITY REPORTING section (b) to the Congress by the end of the 1-year pe-
REQUIREMENTS FOR REGISTERED BROKERS AND DEAL- riod beginning on the date of enactment of this Act.
ERS.—The Secretary [of the Treasury], after consulta- ‘‘(d) DEFINITION.—For purposes of this section, the
tion with the Securities and Exchange Commission and term ‘appropriate Federal banking agency’ has the
the Board of Governors of the Federal Reserve System, same meaning as in section 3 of the Federal Deposit In-
shall publish proposed regulations in the Federal Reg- surance Act [12 U.S.C. 1813].’’
ister before January 1, 2002, requiring brokers and deal-
ers registered with the Securities and Exchange Com- § 5318A. Special measures for jurisdictions, finan-
mission under the Securities Exchange Act of 1934 [15 cial institutions, international transactions,
U.S.C. 78a et seq.] to submit suspicious activity reports or types of accounts of primary money laun-
under section 5318(g) of title 31, United States Code. dering concern
Such regulations shall be published in final form not
later than July 1, 2002. (a) INTERNATIONAL COUNTER-MONEY LAUN-
‘‘(b) SUSPICIOUS ACTIVITY REPORTING REQUIREMENTS DERING REQUIREMENTS.—
FOR FUTURES COMMISSION MERCHANTS, COMMODITY (1) IN GENERAL.—The Secretary of the Treas-
TRADING ADVISORS, AND COMMODITY POOL OPERATORS.—
ury may require domestic financial institu-
The Secretary, in consultation with the Commodity
Futures Trading Commission, may prescribe regula- tions and domestic financial agencies to take
tions requiring futures commission merchants, com- 1 or more of the special measures described in
modity trading advisors, and commodity pool operators subsection (b) if the Secretary finds that rea-
registered under the Commodity Exchange Act [7 sonable grounds exist for concluding that a ju-
U.S.C. 1 et seq.] to submit suspicious activity reports risdiction outside of the United States, 1 or
under section 5318(g) of title 31, United States Code.’’ more financial institutions operating outside
REPORTS of the United States, 1 or more classes of
Pub. L. 103–325, title IV, § 403(b), Sept. 23, 1994, 108
transactions within, or involving, a jurisdic-
Stat. 2246, provided that: tion outside of the United States, or 1 or more
‘‘(1) REPORTS REQUIRED.—The Secretary of the Treas- types of accounts is of primary money laun-
ury shall submit an annual report to the Congress at dering concern, in accordance with subsection
the times required under paragraph (2) on the number (c).
of suspicious transactions reported to the officer or (2) FORM OF REQUIREMENT.—The special
agency designated under section 5318(g)(4)(A) of title 31, measures described in—
United States Code, during the period covered by the
report and the disposition of such reports.
(A) subsection (b) may be imposed in such
‘‘(2) TIME FOR SUBMITTING REPORTS.—The 1st report sequence or combination as the Secretary
required under paragraph (1) shall be filed before the shall determine;
end of the 1-year period beginning on the date of enact- (B) paragraphs (1) through (4) of subsection
ment of the Money Laundering Suppression Act of 1994 (b) may be imposed by regulation, order, or
[Sept. 23, 1994] and each subsequent report shall be filed otherwise as permitted by law; and
within 90 days after the end of each of the 5 calendar (C) subsection (b)(5) may be imposed only
years which begin after such date of enactment.’’
by regulation.
DESIGNATION REQUIRED TO BE MADE EXPEDITIOUSLY
(3) DURATION OF ORDERS; RULEMAKING.—Any
Pub. L. 103–325, title IV, § 403(c), Sept. 23, 1994, 108 order by which a special measure described in
Stat. 2246, provided that: ‘‘The initial designation of an paragraphs (1) through (4) of subsection (b) is
officer or agency of the United States pursuant to the
amendment made by subsection (a) [amending this sec-
imposed (other than an order described in sec-
tion] shall be made before the end of the 180-day period tion 5326)—
beginning on the date of enactment of this Act [Sept. (A) shall be issued together with a notice
23, 1994].’’ of proposed rulemaking relating to the im-
position of such special measure; and
IMPROVEMENT OF IDENTIFICATION OF MONEY
LAUNDERING SCHEMES (B) may not remain in effect for more than
120 days, except pursuant to a rule promul-
Pub. L. 103–325, title IV, § 404, Sept. 23, 1994, 108 Stat.
gated on or before the end of the 120-day pe-
2246, provided that:
‘‘(a) ENHANCED TRAINING, EXAMINATIONS, AND REFER- riod beginning on the date of issuance of
RALS BY BANKING AGENCIES.—Before the end of the 6- such order.
month period beginning on the date of enactment of
(4) PROCESS FOR SELECTING SPECIAL MEAS-
this Act [Sept. 23, 1994], each appropriate Federal bank-
URES.—In selecting which special measure or
ing agency shall, in consultation with the Secretary of
the Treasury and other appropriate law enforcement measures to take under this subsection, the
agencies— Secretary of the Treasury—
‘‘(1) review and enhance training and examination (A) shall consult with the Chairman of the
procedures to improve the identification of money Board of Governors of the Federal Reserve
laundering schemes involving depository institu- System, any other appropriate Federal
tions; and banking agency (as defined in section 3 of
‘‘(2) review and enhance procedures for referring
cases to any appropriate law enforcement agency. the Federal Deposit Insurance Act) 1 the Sec-
‘‘(b) IMPROVED REPORTING OF CRIMINAL SCHEMES BY retary of State, the Securities and Exchange
LAW ENFORCEMENT AGENCIES.—The Secretary of the Commission, the Commodity Futures Trad-
Treasury and each appropriate law enforcement agency ing Commission, the National Credit Union
shall provide, on a regular basis, information regarding Administration Board, and in the sole dis-
money laundering schemes and activities involving de- cretion of the Secretary, such other agencies
pository institutions to each appropriate Federal bank-
ing agency in order to enhance each agency’s ability to
examine for and identify money laundering activity. 1 So in original. Probably should be followed by a comma.