31 CFR 1010.100 General definitions (incl. (ff) MSB and (ff)(5) money transmitter), CFR edition of July 1, 2025
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§ 1010.100 31 CFR Ch. X (7–1–25 Edition)
Subpart H—Enforcement; Penalties; and (a) Accept. A receiving financial insti-
Forfeiture tution, other than the recipient’s fi-
nancial institution, accepts a trans-
1010.810 Enforcement.
mittal order by executing the trans-
1010.820 [Reserved]
1010.821 Penalty adjustment and table.
mittal order. A recipient’s financial in-
1010.830 Forfeiture of currency or monetary stitution accepts a transmittal order
instruments. by paying the recipient, by notifying
1010.840 Criminal penalty. the recipient of the receipt of the order
1010.850 Enforcement authority with respect or by otherwise becoming obligated to
to transportation of currency or mone- carry out the order.
tary instruments. (b) At one time. For purposes of
§ 1010.340 of this part, a person who
Subpart I—Summons transports, mails, ships or receives; is
1010.911 General. about to or attempts to transport, mail
1010.912 Persons who may issue summons. or ship; or causes the transportation,
1010.913 Contents of summons. mailing, shipment or receipt of mone-
1010.914 Service of summons. tary instruments, is deemed to do so
1010.915 Examination of witnesses and ‘‘at one time’’ if:
records. (1) That person either alone, in con-
1010.916 Enforcement of summons.
junction with or on behalf of others;
1010.917 Payment of expenses.
(2) Transports, mails, ships or re-
Subpart J—Miscellaneous ceives in any manner; is about to
transport, mail or ship in any manner;
1010.920 Access to records. or causes the transportation, mailing,
1010.930 Rewards for informants. shipment or receipt in any manner of;
1010.940 Photographic or other reproduc- (3) Monetary instruments;
tions of Government obligations.
(4) Into the United States or out of
1010.950 Availability of information—gen-
eral. the United States;
1010.955 Availability of beneficial ownership (5) Totaling more than $10,000;
information reported under this part. (6)(i) On one calendar day; or
1010.960 Disclosure. (ii) If for the purpose of evading the
1010.970 Exceptions, exemptions, and re- reporting requirements of § 1010.340, on
ports. one or more days.
1010.980 Dollars as including foreign cur- (c) Attorney General. The Attorney
rency.
General of the United States.
AUTHORITY: 12 U.S.C. 1829b and 1951–1959; 31 (d) Bank. Each agent, agency, branch
U.S.C. 5311–5314, 5316–5336; title III, sec. 314 or office within the United States of
Pub. L. 107–56, 115 Stat. 307; sec. 2006, Pub. L. any person doing business in one or
114–41, 129 Stat. 457; sec. 701 Pub. L. 114–74, more of the capacities listed below:
129 Stat. 599; sec. 6403, Pub. L. 116–283, 134
Stat. 3388.
(1) A commercial bank or trust com-
pany organized under the laws of any
SOURCE: 75 FR 65812, Oct. 26, 2010, unless State or of the United States;
otherwise noted. (2) A private bank;
(3) A savings and loan association or
Subpart A—General Definitions a building and loan association orga-
nized under the laws of any State or of
§ 1010.100 General definitions. the United States;
When used in this chapter and in (4) An insured institution as defined
forms prescribed under this chapter, in section 401 of the National Housing
where not otherwise distinctly ex- Act;
pressed or manifestly incompatible (5) A savings bank, industrial bank or
with the intent thereof, terms shall other thrift institution;
have the meanings ascribed in this sub- (6) A credit union organized under
part. Terms applicable to a particular the law of any State or of the United
type of financial institution or specific States;
part or subpart of this chapter are lo- (7) Any other organization (except a
skersey on DSK4WB1RN3PROD with CFR
cated in that part or subpart. Terms money services business) chartered
may have different meanings in dif- under the banking laws of any state
ferent parts or subparts. and subject to the supervision of the
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Financial Crimes Enforc. Network, Treas. § 1010.100
bank supervisory authorities of a (l) Contract of sale. Any sale, agree-
State; ment of sale, or agreement to sell as
(8) A bank organized under foreign described in section 1a(7) of the CEA, 7
law; U.S.C. 1a(7).
(9) Any national banking association (m) Currency. The coin and paper
or corporation acting under the provi- money of the United States or of any
sions of section 25(a) of the Act of Dec. other country that is designated as
23, 1913, as added by the Act of Dec. 24, legal tender and that circulates and is
1919, ch. 18, 41 Stat. 378, as amended (12 customarily used and accepted as a me-
U.S.C. 611–32). dium of exchange in the country of
(e) Bank Secrecy Act. The Currency issuance. Currency includes U.S. silver
and Foreign Transactions Reporting certificates, U.S. notes and Federal Re-
Act, its amendments, and the other serve notes. Currency also includes of-
statutes relating to the subject matter ficial foreign bank notes that are cus-
of that Act, have come to be referred to tomarily used and accepted as a me-
as the Bank Secrecy Act. These stat- dium of exchange in a foreign country.
utes are codified at 12 U.S.C. 1829b, 12 (n) Deposit account. Deposit accounts
U.S.C. 1951–1959, 18 U.S.C. 1956, 18 include transaction accounts described
U.S.C. 1957, 18 U.S.C. 1960, and 31 U.S.C. in paragraph (ccc) of this section, sav-
5311–5314 and 5316–5332 and notes there- ings accounts, and other time deposits.
to. (o) Domestic. When used herein, refers
(f) Beneficiary. The person to be paid to the doing of business within the
by the beneficiary’s bank. United States, and limits the applica-
(g) Beneficiary’s bank. The bank or bility of the provision where it appears
foreign bank identified in a payment to the performance by such institu-
order in which an account of the bene- tions or agencies of functions within
ficiary is to be credited pursuant to the the United States.
order or which otherwise is to make (p) Established customer. A person
payment to the beneficiary if the order with an account with the financial in-
does not provide for payment to an ac- stitution, including a loan account or
count. deposit or other asset account, or a
(h) Broker or dealer in securities. A person with respect to which the finan-
broker or dealer in securities, reg- cial institution has obtained and main-
istered or required to be registered tains on file the person’s name and ad-
with the Securities and Exchange Com- dress, as well as taxpayer identifica-
mission under the Securities Exchange tion number (e.g., social security or
Act of 1934, except persons who register employer identification number) or, if
pursuant to section 15(b)(11) of the Se- none, alien identification number or
curities Exchange Act of 1934. passport number and country of
(i) Business day. As used in this chap- issuance, and to which the financial in-
ter with respect to banks, business day stitution provides financial services re-
means that day, as normally commu- lying on that information.
nicated to its depository customers, on (q) Execution date. The day on which
which a bank routinely posts a par- the receiving financial institution may
ticular transaction to its customer’s properly issue a transmittal order in
account. execution of the sender’s order. The
(j) Commodity. Any good, article, execution date may be determined by
service, right, or interest described in instruction of the sender but cannot be
section 1a(4) of the Commodity Ex- earlier than the day the order is re-
change Act (‘‘CEA’’), 7 U.S.C. 1a(4). ceived, and, unless otherwise deter-
(k) Common carrier. Any person en- mined, is the day the order is received.
gaged in the business of transporting If the sender’s instruction states a pay-
individuals or goods for a fee who holds ment date, the execution date is the
himself out as ready to engage in such payment date or an earlier date on
transportation for hire and who under- which execution is reasonably nec-
skersey on DSK4WB1RN3PROD with CFR
takes to do so indiscriminately for all essary to allow payment to the recipi-
persons who are prepared to pay the fee ent on the payment date.
for the particular service offered. (r) Federal functional regulator.
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§ 1010.100 31 CFR Ch. X (7–1–25 Edition)
(1) The Board of Governors of the sino for purposes of this chapter prior
Federal Reserve System; to the time in its current business year
(2) The Office of the Comptroller of that its gross annual gaming revenue
the Currency; exceeds $1,000,000.
(3) The Board of Directors of the Fed- (iii) Any reference in this chapter,
eral Deposit Insurance Corporation; other than in this paragraph (t)(5) and
(4) The Office of Thrift Supervision; in paragraph (t)(6) of this section, to a
(5) The National Credit Union Admin- casino shall also include a reference to
istration; a card club, unless the provision in
(6) The Securities and Exchange question contains specific language
Commission; or varying its application to card clubs or
(7) The Commodity Futures Trading excluding card clubs from its applica-
Commission. tion;
(s) FinCEN. FinCEN means the Fi- (6)(i) Card club. A card club, gaming
nancial Crimes Enforcement Network, club, card room, gaming room, or simi-
a bureau of the Department of the
lar gaming establishment that is duly
Treasury.
licensed or authorized to do business as
(t) Financial institution. Each agent,
such in the United States, whether
agency, branch, or office within the
under the laws of a State, of a Terri-
United States of any person doing busi-
tory or Insular Possession of the
ness, whether or not on a regular basis
United States, or of a political subdivi-
or as an organized business concern, in
sion of any of the foregoing, or under
one or more of the capacities listed
the Indian Gaming Regulatory Act or
below:
other Federal, State, or tribal law or
(1) A bank (except bank credit card
arrangement affecting Indian lands (in-
systems);
(2) A broker or dealer in securities; cluding, without limitation, an estab-
(3) A money services business as de- lishment operating on the assumption
fined in paragraph (ff) of this section; or under the view that no such author-
(4) A telegraph company; ization is required for operation on In-
(5)(i) Casino. A casino or gambling ca- dian lands for an establishment of such
sino that: Is duly licensed or author- type), and that has gross annual gam-
ized to do business as such in the ing revenue in excess of $1,000,000. The
United States, whether under the laws term includes the principal head-
of a State or of a Territory or Insular quarters and every domestic branch or
Possession of the United States, or place of business of the establishment.
under the Indian Gaming Regulatory The term ‘‘casino,’’ as used in this
Act or other Federal, State, or tribal chapter shall include a reference to
law or arrangement affecting Indian ‘‘card club’’ to the extent provided in
lands (including, without limitation, a paragraph (t)(5)(iii) of this section.
casino operating on the assumption or (ii) For purposes of this paragraph
under the view that no such authoriza- (t)(6), ‘‘gross annual gaming revenue’’
tion is required for casino operation on means the gross revenue derived from
Indian lands); and has gross annual or generated by customer gaming ac-
gaming revenue in excess of $1 million. tivity (whether in the form of per-game
The term includes the principal head- or per-table fees, however computed,
quarters and every domestic branch or rentals, or otherwise) and received by
place of business of the casino. an establishment, during either the es-
(ii) For purposes of this paragraph tablishment’s previous business year or
(t)(5), ‘‘gross annual gaming revenue’’ its current business year. A card club
means the gross gaming revenue re- that is a financial institution for pur-
ceived by a casino, during either the poses of this chapter solely because its
previous business year or the current gross annual revenue exceeds $1,000,000
business year of the casino. A casino or during its current business year, shall
gambling casino which is a casino for not be considered a financial institu-
purposes of this chapter solely because tion for purposes of this chapter prior
skersey on DSK4WB1RN3PROD with CFR
its gross annual gaming revenue ex- to the time in its current business year
ceeds $1,000,000 during its current busi- when its gross annual revenue exceeds
ness year, shall not be considered a ca- $1,000,000;
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Financial Crimes Enforc. Network, Treas. § 1010.100
(7) A person subject to supervision by codified at 25 U.S.C. 2701–2721 and 18
any state or Federal bank supervisory U.S.C. 1166–68.
authority; (z) Intermediary bank. A receiving
(8) A futures commission merchant; bank other than the originator’s bank
(9) An introducing broker in com- or the beneficiary’s bank.
modities; or (aa) Intermediary financial institution.
(10) A mutual fund. A receiving financial institution, other
(u) Foreign bank. A bank organized than the transmittor’s financial insti-
under foreign law, or an agency, branch tution or the recipient’s financial insti-
or office located outside the United tution. The term intermediary finan-
States of a bank. The term does not in- cial institution includes an inter-
clude an agent, agency, branch or of- mediary bank.
fice within the United States of a bank (bb) Introducing broker-commodities.
organized under foreign law. Any person registered or required to be
(v) Foreign financial agency. A person registered as an introducing broker
acting outside the United States for a with the CFTC under the CEA, except
person (except for a country, a mone- persons who register pursuant to sec-
tary or financial authority acting as a tion 4f(a)(2) of the CEA, 7 U.S.C.
monetary or financial authority, or an 6f(a)(2).
international financial institution of (cc) Investment security. An instru-
which the United States Government is ment which:
a member) as a financial institution, (1) Is issued in bearer or registered
bailee, depository trustee, or agent, or form;
acting in a similar way related to (2) Is of a type commonly dealt in
money, credit, securities, gold, or a upon securities exchanges or markets
transaction in money, credit, securi- or commonly recognized in any area in
ties, or gold. which it is issued or dealt in as a me-
(w) Funds transfer. The series of dium for investment;
transactions, beginning with the origi- (3) Is either one of a class or series or
nator’s payment order, made for the by its terms is divisible into a class or
purpose of making payment to the ben- series of instruments; and
eficiary of the order. The term includes (4) Evidences a share, participation
any payment order issued by the origi- or other interest in property or in an
nator’s bank or an intermediary bank enterprise or evidences an obligation of
intended to carry out the originator’s the issuer.
payment order. A funds transfer is (dd) Monetary instruments. (1) Mone-
completed by acceptance by the bene- tary instruments include:
ficiary’s bank of a payment order for (i) Currency;
the benefit of the beneficiary of the (ii) Traveler’s checks in any form;
originator’s payment order. Electronic (iii) All negotiable instruments (in-
fund transfers as defined in section cluding personal checks, business
903(7) of the Electronic Fund Transfer checks, official bank checks, cashier’s
Act (15 U.S.C. 1693a(7)), as well as any checks, third-party checks, promissory
other funds transfers that are made notes (as that term is defined in the
through an automated clearinghouse, Uniform Commercial Code), and money
an automated teller machine, or a orders) that are either in bearer form,
point-of-sale system, are excluded from endorsed without restriction, made out
this definition. to a fictitious payee (for the purposes
(x) Futures commission merchant. Any of § 1010.340), or otherwise in such form
person registered or required to be reg- that title thereto passes upon delivery;
istered as a futures commission mer- (iv) Incomplete instruments (includ-
chant with the Commodity Futures ing personal checks, business checks,
Trading Commission (‘‘CFTC’’) under official bank checks, cashier’s checks,
the CEA, except persons who register third-party checks, promissory notes
pursuant to section 4f(a)(2) of the CEA, (as that term is defined in the Uniform
skersey on DSK4WB1RN3PROD with CFR
7 U.S.C. 6f(a)(2). Commercial Code), and money orders)
(y) Indian Gaming Regulatory Act. The signed but with the payee’s name omit-
Indian Gaming Regulatory Act of 1988, ted; and
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§ 1010.100 31 CFR Ch. X (7–1–25 Edition)
(v) Securities or stock in bearer form check who is a customer otherwise
or otherwise in such form that title buying goods and services;
thereto passes upon delivery. (D) A person that redeems its own
(2) Monetary instruments do not in- checks; or
clude warehouse receipts or bills of lad- (E) A person that only holds a cus-
ing. tomer’s check as collateral for repay-
(ee) [Reserved] ment by the customer of a loan.
(ff) Money services business. A person (3) Issuer or seller of traveler’s checks or
wherever located doing business, money orders. A person that
whether or not on a regular basis or as (i) Issues traveler’s checks or money
an organized or licensed business con- orders that are sold in an amount
cern, wholly or in substantial part greater than $1,000 to any person on
within the United States, in one or any day in one or more transactions; or
more of the capacities listed in para- (ii) Sells traveler’s checks or money
graphs (ff)(1) through (ff)(7) of this sec- orders in an amount greater than $1,000
tion. This includes but is not limited to to any person on any day in one or
maintenance of any agent, agency, more transactions.
branch, or office within the United (4) Provider of prepaid access—(i) In
States. general. A provider of prepaid access is
the participant within a prepaid pro-
(1) Dealer in foreign exchange. A per-
gram that agrees to serve as the prin-
son that accepts the currency, or other
cipal conduit for access to information
monetary instruments, funds, or other
from its fellow program participants.
instruments denominated in the cur-
The participants in each prepaid access
rency, of one or more countries in ex-
program must determine a single par-
change for the currency, or other mon-
ticipant within the prepaid program to
etary instruments, funds, or other in-
serve as the provider of prepaid access.
struments denominated in the cur-
(ii) Considerations for provider deter-
rency, of one or more other countries
mination. In the absence of registration
in an amount greater than $1,000 for
as the provider of prepaid access for a
any other person on any day in one or
prepaid program by one of the partici-
more transactions, whether or not for
pants in a prepaid access program, the
same-day delivery.
provider of prepaid access is the person
(2) Check casher—(i) In general. A per- with principal oversight and control
son that accepts checks (as defined in over the prepaid program. Which per-
the Uniform Commercial Code), or son exercises ‘‘principal oversight and
monetary instruments (as defined at control’’ is a matter of facts and cir-
§ 1010.100(dd)(1)(ii), (iii), (iv), and (v)) in cumstances. Activities that indicate
return for currency or a combination of ‘‘principal oversight and control’’ in-
currency and other monetary instru- clude:
ments or other instruments, in an (A) Organizing the prepaid program;
amount greater than $1,000 for any per- (B) Setting the terms and conditions
son on any day in one or more trans- of the prepaid program and deter-
actions. mining that the terms have not been
(ii) Facts and circumstances; Limita- exceeded;
tions. Whether a person is a check (C) Determining the other businesses
casher as described in this section is a that will participate in the prepaid pro-
matter of facts and circumstances. The gram, which may include the issuing
term ‘‘check casher’’ shall not include: bank, the payment processor, or the
(A) A person that sells prepaid access distributor;
in exchange for a check (as defined in (D) Controlling or directing the ap-
the Uniform Commercial Code), mone- propriate party to initiate, freeze, or
tary instrument or other instrument; terminate prepaid access; and
(B) A person that solely accepts mon- (E) Engaging in activity that dem-
etary instruments as payment for onstrates oversight and control of the
goods or services other than check prepaid program.
skersey on DSK4WB1RN3PROD with CFR
cashing services; (iii) Prepaid program. A prepaid pro-
(C) A person that engages in check gram is an arrangement under which
cashing for the verified maker of the one or more persons acting together
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Financial Crimes Enforc. Network, Treas. § 1010.100
provide(s) prepaid access. However, an (ii) Facts and circumstances; Limita-
arrangement is not a prepaid program tions. Whether a person is a money
if: transmitter as described in this section
(A) It provides closed loop prepaid ac- is a matter of facts and circumstances.
cess to funds not to exceed $2,000 max- The term ‘‘money transmitter’’ shall
imum value that can be associated not include a person that only:
with a prepaid access device or vehicle (A) Provides the delivery, commu-
on any day; nication, or network access services
(B) It provides prepaid access solely used by a money transmitter to sup-
to funds provided by a Federal, State, port money transmission services;
local, Territory and Insular Possession, (B) Acts as a payment processor to
or Tribal government agency; facilitate the purchase of, or payment
(C) It provides prepaid access solely of a bill for, a good or service through
to funds from pre-tax flexible spending a clearance and settlement system by
arrangements for health care and de- agreement with the creditor or seller;
pendent care expenses, or from Health (C) Operates a clearance and settle-
Reimbursement Arrangements (as de- ment system or otherwise acts as an
fined in 26 U.S.C. 105(b) and 125) for intermediary solely between BSA regu-
health care expenses; or lated institutions. This includes but is
(D) (1) It provides prepaid access sole- not limited to the Fedwire system,
ly to:
electronic funds transfer networks, cer-
(i) Employment benefits, incentives,
tain registered clearing agencies regu-
wages or salaries; or
lated by the Securities and Exchange
(ii) Funds not to exceed $1,000 max-
Commission (‘‘SEC’’), and derivatives
imum value and from which no more
clearing organizations, or other clear-
than $1,000 maximum value can be ini-
inghouse arrangements established by
tially or subsequently loaded, used, or
a financial agency or institution;
withdrawn on any day through a device
or vehicle; and (D) Physically transports currency,
(2) It does not permit: other monetary instruments, other
(i) Funds or value to be transmitted commercial paper, or other value that
internationally; substitutes for currency as a person
(ii) Transfers between or among users primarily engaged in such business,
of prepaid access within a prepaid pro- such as an armored car, from one per-
gram; or son to the same person at another loca-
(iii) Loading additional funds or the tion or to an account belonging to the
value of funds from non-depository same person at a financial institution,
sources. provided that the person engaged in
(5) Money transmitter—(i) In general. physical transportation has no more
(A) A person that provides money than a custodial interest in the cur-
transmission services. The term rency, other monetary instruments,
‘‘money transmission services’’ means other commercial paper, or other value
the acceptance of currency, funds, or at any point during the transportation;
other value that substitutes for cur- (E) Provides prepaid access; or
rency from one person and the trans- (F) Accepts and transmits funds only
mission of currency, funds, or other integral to the sale of goods or the pro-
value that substitutes for currency to vision of services, other than money
another location or person by any transmission services, by the person
means. ‘‘Any means’’ includes, but is who is accepting and transmitting the
not limited to, through a financial funds.
agency or institution; a Federal Re- (6) U.S. Postal Service. The United
serve Bank or other facility of one or States Postal Service, except with re-
more Federal Reserve Banks, the Board spect to the sale of postage or phila-
of Governors of the Federal Reserve telic products.
System, or both; an electronic funds (7) Seller of prepaid access. Any person
transfer network; or an informal value that receives funds or the value of
skersey on DSK4WB1RN3PROD with CFR
transfer system; or funds in exchange for an initial loading
(B) Any other person engaged in the or subsequent loading of prepaid access
transfer of funds. if that person:
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§ 1010.100 31 CFR Ch. X (7–1–25 Edition)
(i) Sells prepaid access offered under scribed by instruction, is the date the
a prepaid program that can be used be- order is received by the recipient’s fi-
fore verification of customer identi- nancial institution.
fication under § 1022.210(d)(1)(iv); or (ll) Payment order. An instruction of a
(ii) Sells prepaid access (including sender to a receiving bank, transmitted
closed loop prepaid access) to funds orally, electronically, or in writing, to
that exceed $10,000 to any person dur- pay, or to cause another bank or for-
ing any one day, and has not imple- eign bank to pay, a fixed or deter-
mented policies and procedures reason- minable amount of money to a bene-
ably adapted to prevent such a sale. ficiary if:
(8) Limitation. For the purposes of (1) The instruction does not state a
this section, the term ‘‘money services condition to payment to the bene-
business’’ shall not include: ficiary other than time of payment;
(i) A bank or foreign bank; (2) The receiving bank is to be reim-
(ii) A person registered with, and bursed by debiting an account of, or
functionally regulated or examined by, otherwise receiving payment from, the
the SEC or the CFTC, or a foreign fi- sender; and
nancial agency that engages in finan- (3) The instruction is transmitted by
cial activities that, if conducted in the the sender directly to the receiving
United States, would require the for- bank or to an agent, funds transfer sys-
eign financial agency to be registered tem, or communication system for
with the SEC or CFTC; or transmittal to the receiving bank.
(iii) A natural person who engages in (mm) Person. An individual, a cor-
an activity identified in paragraphs poration, a partnership, a trust or es-
(ff)(1) through (ff)(5) of this section on tate, a joint stock company, an asso-
an infrequent basis and not for gain or ciation, a syndicate, joint venture, or
profit. other unincorporated organization or
(gg) Mutual fund. An ‘‘investment group, an Indian Tribe (as that term is
company’’ (as the term is defined in defined in the Indian Gaming Regu-
section 3 of the Investment Company latory Act), and all entities cognizable
Act (15 U.S.C. 80a–3)) that is an ‘‘open- as legal personalities.
end company’’ (as that term is defined (nn) Receiving bank. The bank or for-
in section 5 of the Investment Com- eign bank to which the sender’s in-
pany Act (15 U.S.C. 80a–5)) that is reg- struction is addressed.
istered or is required to register with (oo) Receiving financial institution.
the Commission under section 8 of the The financial institution or foreign fi-
Investment Company Act (15 U.S.C. nancial agency to which the sender’s
80a–8). instruction is addressed. The term re-
(hh) Option on a commodity. Any ceiving financial institution includes a
agreement, contract, or transaction de- receiving bank.
scribed in section 1a(26) of the CEA, 7 (pp) Recipient. The person to be paid
U.S.C. 1a(26). by the recipient’s financial institution.
(ii) Originator. The sender of the first The term recipient includes a bene-
payment order in a funds transfer. ficiary, except where the recipient’s fi-
(jj) Originator’s bank. The receiving nancial institution is a financial insti-
bank to which the payment order of tution other than a bank.
the originator is issued if the origi- (qq) Recipient’s financial institution.
nator is not a bank or foreign bank, or The financial institution or foreign fi-
the originator if the originator is a nancial agency identified in a trans-
bank or foreign bank. mittal order in which an account of the
(kk) Payment date. The day on which recipient is to be credited pursuant to
the amount of the transmittal order is the transmittal order or which other-
payable to the recipient by the recipi- wise is to make payment to the recipi-
ent’s financial institution. The pay- ent if the order does not provide for
ment date may be determined by in- payment to an account. The term re-
struction of the sender, but cannot be cipient’s financial institution includes
skersey on DSK4WB1RN3PROD with CFR
earlier than the day the order is re- a beneficiary’s bank, except where the
ceived by the recipient’s financial in- beneficiary is a recipient’s financial in-
stitution and, unless otherwise pre- stitution.
1112
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Financial Crimes Enforc. Network, Treas. § 1010.100
(rr) Secretary. The Secretary of the (yy) Taxpayer Identification Number.
Treasury or any person duly authorized Taxpayer Identification Number
by the Secretary to perform the func- (‘‘TIN’’) is defined by section 6109 of
tion mentioned. the Internal Revenue Code of 1986 (26
(ss) Security. Security means any in- U.S.C. 6109) and the Internal Revenue
strument or interest described in sec- Service regulations implementing that
tion 3(a)(10) of the Securities Exchange section (e.g., social security number or
Act of 1934, 15 U.S.C. 78c(a)(10). employer identification number).
(tt) Self-regulatory organization: (zz) Territories and Insular Possessions.
(1) Shall have the same meaning as The Commonwealth of Puerto Rico, the
provided in section 3(a)(26) of the Secu- United States Virgin Islands, Guam,
rities Exchange Act of 1934 (15 U.S.C. the Commonwealth of the Northern
78c(a)(26)); and Mariana Islands, and all other terri-
(2) Means a ‘‘registered entity’’ or a tories and possessions of the United
‘‘registered futures association’’ as pro- States other than the Indian lands and
vided in section 1a(29) or 17, respec- the District of Columbia.
tively, of the Commodity Exchange Act (aaa) [Reserved]
(7 U.S.C. 1a(29), 21). (bbb) Transaction. (1) Except as pro-
(uu) Sender. The person giving the in- vided in paragraph (bbb)(2) of this sec-
struction to the receiving financial in- tion, transaction means a purchase,
stitution. sale, loan, pledge, gift, transfer, deliv-
(vv) State. The States of the United ery, or other disposition, and with re-
States and, wherever necessary to spect to a financial institution includes
carry out the provisions of this chap- a deposit, withdrawal, transfer between
ter, the District of Columbia. accounts, exchange of currency, loan,
(ww) Prepaid access. Access to funds extension of credit, purchase or sale of
or the value of funds that have been any stock, bond, certificate of deposit,
paid in advance and can be retrieved or or other monetary instrument, secu-
transferred at some point in the future rity, contract of sale of a commodity
through an electronic device or vehi- for future delivery, option on any con-
cle, such as a card, code, electronic se- tract of sale of a commodity for future
rial number, mobile identification delivery, option on a commodity, pur-
number, or personal identification chase or redemption of any money
number. order, payment or order for any money
(xx) Structure (structuring). For pur- remittance or transfer, purchase or re-
poses of § 1010.314, a person structures a demption of casino chips or tokens, or
transaction if that person, acting other gaming instruments or any other
alone, or in conjunction with, or on be- payment, transfer, or delivery by,
half of, other persons, conducts or at- through, or to a financial institution,
tempts to conduct one or more trans- by whatever means effected.
actions in currency, in any amount, at (2) For purposes of §§ 1010.311, 1010.313,
one or more financial institutions, on 1020.315, 1021.311, 1021.313, and other
one or more days, in any manner, for provisions of this chapter relating sole-
the purpose of evading the reporting ly to the report required by those sec-
requirements under §§ 1010.311, 1010.313, tions, the term ‘‘transaction in cur-
1020.315, 1021.311 and 1021.313 of this rency’’ shall mean a transaction in-
chapter. ‘‘In any manner’’ includes, but volving the physical transfer of cur-
is not limited to, the breaking down of rency from one person to another. A
a single sum of currency exceeding transaction which is a transfer of funds
$10,000 into smaller sums, including by means of bank check, bank draft,
sums at or below $10,000, or the conduct wire transfer, or other written order,
of a transaction, or series of currency and which does not include the phys-
transactions at or below $10,000. The ical transfer of currency, is not a
transaction or transactions need not transaction in currency for this pur-
exceed the $10,000 reporting threshold pose.
at any single financial institution on (ccc) Transaction account. Trans-
skersey on DSK4WB1RN3PROD with CFR
any single day in order to constitute action accounts include those accounts
structuring within the meaning of this described in 12 U.S.C. 461(b)(1)(C),
definition. money market accounts and similar
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§ 1010.100 31 CFR Ch. X (7–1–25 Edition)
accounts that take deposits and are tion to which the transmittal order of
subject to withdrawal by check or the transmittor is issued if the
other negotiable order. transmittor is not a financial institu-
(ddd) Transmittal of funds. A series of tion or foreign financial agency, or the
transactions beginning with the transmittor if the transmittor is a fi-
transmittor’s transmittal order, made nancial institution or foreign financial
for the purpose of making payment to agency. The term transmittor’s finan-
the recipient of the order. The term in- cial institution includes an originator’s
cludes any transmittal order issued by bank, except where the originator is a
the transmittor’s financial institution transmittor’s financial institution
or an intermediary financial institu- other than a bank or foreign bank.
tion intended to carry out the (hhh) United States. The States of the
transmittor’s transmittal order. The United States, the District of Colum-
term transmittal of funds includes a bia, the Indian lands (as that term is
funds transfer. A transmittal of funds defined in the Indian Gaming Regu-
is completed by acceptance by the re- latory Act), and the Territories and In-
cipient’s financial institution of a sular Possessions of the United States.
transmittal order for the benefit of the (iii) U.S. person. (1) A United States
recipient of the transmittor’s trans- citizen; or (2) A person other than an
mittal order. Electronic fund transfers individual (such as a corporation, part-
as defined in section 903(7) of the Elec- nership or trust), that is established or
tronic Fund Transfer Act (15 U.S.C. organized under the laws of a State or
1693a(7)), as well as any other funds the United States. Non-U.S. person
transfers that are made through an means a person that is not a U.S. per-
automated clearinghouse, an auto- son.
mated teller machine, or a point-of- (jjj) U.S. Postal Service. The United
sale system, are excluded from this def- States Postal Service, except with re-
inition. spect to the sale of postage or phila-
(eee) Transmittal order. The term telic products.
transmittal order includes a payment (kkk) Closed loop prepaid access. Pre-
order and is an instruction of a sender paid access to funds or the value of
to a receiving financial institution, funds that can be used only for goods
transmitted orally, electronically, or or services in transactions involving a
in writing, to pay, or cause another fi- defined merchant or location (or set of
nancial institution or foreign financial locations), such as a specific retailer or
agency to pay, a fixed or determinable retail chain, a college campus, or a
amount of money to a recipient if: subway system.
(1) The instruction does not state a (lll) Loan or finance company. A per-
condition to payment to the recipient son engaged in activities that take
other than time of payment; place wholly or in substantial part
(2) The receiving financial institu- within the United States in one or
tion is to be reimbursed by debiting an more of the capacities listed below,
account of, or otherwise receiving pay- whether or not on a regular basis or as
ment from, the sender; and an organized business concern. This in-
(3) The instruction is transmitted by cludes but is not limited to mainte-
the sender directly to the receiving fi- nance of any agent, agency, branch, or
nancial institution or to an agent or office within the United States. For
communication system for transmittal the purposes of this paragraph (lll), the
to the receiving financial institution. term ‘‘loan or finance company’’ shall
(fff) Transmittor. The sender of the include a sole proprietor acting as a
first transmittal order in a transmittal loan or finance company, and shall not
of funds. The term transmittor in- include: A bank, a person registered
cludes an originator, except where the with and functionally regulated or ex-
transmittor’s financial institution is a amined by the Securities and Exchange
financial institution or foreign finan- Commission or the Commodity Futures
cial agency other than a bank or for- Trading Commission, any government
skersey on DSK4WB1RN3PROD with CFR
eign bank. sponsored enterprise regulated by the
(ggg) Transmittor’s financial institu- Federal Housing Finance Agency, any
tion. The receiving financial institu- Federal or state agency or authority
1114
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Financial Crimes Enforc. Network, Treas. § 1010.205
administering mortgage or housing as- any ‘‘Entity-Affiliated Party,’’ as de-
sistance, fraud prevention or fore- fined in 12 U.S.C. 4502(11).
closure prevention programs, or an in- [75 FR 65812, Oct. 26, 2010, as amended at 76
dividual employed by a loan or finance FR 43596, July 21, 2011; 76 FR 45419, July 29,
company or financial institution under 2011; 77 FR 8157, Feb. 14, 2012; 78 FR 72817,
this part. A loan or finance company is Dec. 4, 2013; 79 FR 10375, Feb. 25, 2014]
not a financial institution as defined in EFFECTIVE DATE NOTE: At 89 FR 72274,
the regulations in this part at Sept. 4, 2024, § 1010.100 was amended, effective
1010.100(t). Jan. 1, 2026.
(1) Residential mortgage lender or origi-
nator. A residential mortgage lender or Subpart B—Programs
originator includes:
(i) Residential mortgage lender. The § 1010.200 General.
person to whom the debt arising from a Each financial institution (as defined
residential mortgage loan is initially in 31 U.S.C. 5312(a)(2) or (c)(1)) should
payable on the face of the evidence of refer to subpart B of its chapter X Part
indebtedness or, if there is no such evi- for any additional program require-
dence of indebtedness, by agreement, ments. Unless otherwise indicated, the
or to whom the obligation is initially program requirements contained in
assigned at or immediately after set- this subpart B apply to all financial in-
tlement. The term ‘‘residential mort- stitutions (as defined in 31 U.S.C.
gage lender’’ shall not include an indi- 5312(a)(2) or (c)(1)).
vidual who finances the sale of the in-
§ 1010.205 Exempted anti-money laun-
dividual’s own dwelling or real prop- dering programs for certain finan-
erty. cial institutions.
(ii) Residential mortgage originator. A
(a) Exempt financial institutions. Sub-
person who accepts a residential mort-
ject to the provisions of paragraphs (c)
gage loan application or offers or nego-
and (d) of this section, the following fi-
tiates terms of a residential mortgage nancial institutions (as defined in 31
loan. U.S.C. 5312(a)(2) or (c)(1)) are exempt
(iii) Residential mortgage loan. A loan from the requirement in 31 U.S.C.
that is secured by a mortgage, deed of 5318(h)(1) concerning the establishment
trust, or other equivalent consensual of anti-money laundering programs:
security interest on: (1) An agency of the United States
(A) A residential structure that con- Government, or of a State or local gov-
tains one to four units, including, if ernment, carrying out a duty or power
used as a residence, an individual con- of a business described in 31 U.S.C.
dominium unit, cooperative unit, mo- 5312(a)(2); and
bile home or trailer; or (2) [Reserved]
(B) Residential real estate upon (b) Temporary exemption for certain fi-
which such a structure is constructed nancial institutions. (1) Subject to the
or intended to be constructed. provisions of paragraphs (c) and (d) of
(2) [Reserved] this section, the following financial in-
(mmm) Housing government sponsored stitutions (as defined in 31 U.S.C.
enterprise. (1) A ‘‘housing government 5312(a)(2) or (c)(1)) are exempt from the
sponsored enterprise’’ is one of the fol- requirement in 31 U.S.C. 5318(h)(1) con-
lowing ‘‘Regulated Entities’’ under 12 cerning the establishment of anti-
U.S.C. 4502(20) subject to the general money laundering programs:
supervision and regulation of the Fed- (i) Pawnbroker;
(ii) Travel agency;
eral Housing Finance Agency (FHFA):
(iii) Telegraph company;
(i) The Federal National Mortgage (iv) Seller of vehicles, including auto-
Association; mobiles, airplanes, and boats;
(ii) The Federal Home Loan Mort- (v) Person involved in real estate
gage Corporation; or closings and settlements;
skersey on DSK4WB1RN3PROD with CFR
(iii) Each Federal Home Loan Bank. (vi) Commodity pool operator;
(2) The term ‘‘housing government (vii) Commodity trading advisor; or
sponsored enterprise’’ does not include (viii) Investment company.
1115
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