31 CFR 1022.320 Reports by MSBs of suspicious transactions ($2,000)
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§ 1022.300 31 CFR Ch. X (7–1–25 Edition)
an anti-money laundering program reports of transactions in currency for
that complies with the requirements of money services businesses.
this section on or before the later of
July 24, 2002, and the end of the 90-day § 1022.320 Reports by money services
period beginning on the day following businesses of suspicious trans-
the date the business is established. actions.
[75 FR 65812, Oct. 26, 2010, as amended at 76 (a) General. (1) Every money services
FR 43597, July 21, 2011; 76 FR 45419, July 29, business described in § 1010.100(ff)(1),
2011] (3), (4), (5), (6), and (7) of this chapter,
shall file with the Treasury Depart-
Subpart C—Reports Required To ment, to the extent and in the manner
Be Made By Money Services required by this section, a report of
Businesses any suspicious transaction relevant to
a possible violation of law or regula-
§ 1022.300 General. tion. Any money services business may
also file with the Treasury Depart-
Money services businesses are subject
ment, by using the form specified in
to the reporting requirements set forth
paragraph (b)(1) of this section, or oth-
and cross referenced in this subpart.
Money services businesses should also erwise, a report of any suspicious
refer to subpart C of part 1010 of this transaction that it believes is relevant
chapter for reporting requirements to the possible violation of any law or
contained in that subpart which apply regulation but whose reporting is not
to money services businesses. required by this section.
(2) A transaction requires reporting
§ 1022.310 Reports of transactions in under the terms of this section if it is
currency. conducted or attempted by, at, or
The reports of transactions in cur- through a money services business, in-
rency requirements for money services volves or aggregates funds or other as-
businesses are located in subpart C of sets of at least $2,000 (except as pro-
part 1010 of this chapter and this sub- vided in paragraph (a)(3) of this sec-
part. tion), and the money services business
knows, suspects, or has reason to sus-
§ 1022.311 Filing obligations. pect that the transaction (or a pattern
Refer to § 1010.311 of this chapter for of transactions of which the trans-
reports of transactions in currency fil- action is a part):
ing obligations for money services (i) Involves funds derived from illegal
businesses. activity or is intended or conducted in
order to hide or disguise funds or assets
§ 1022.312 Identification required. derived from illegal activity (includ-
Refer to § 1010.312 of this chapter for ing, without limitation, the ownership,
identification requirements for reports nature, source, location, or control of
of transactions in currency filed by such funds or assets) as part of a plan
money services businesses. to violate or evade any Federal law or
regulation or to avoid any transaction
§ 1022.313 Aggregation. reporting requirement under Federal
Refer to § 1010.313 of this chapter for law or regulation;
reports of transactions in currency ag- (ii) Is designed, whether through
gregation requirements for money structuring or other means, to evade
services businesses. any requirements of this chapter or of
any other regulations promulgated
§ 1022.314 Structured transactions. under the Bank Secrecy Act; or
Refer to § 1010.314 of this chapter for (iii) Serves no business or apparent
rules regarding structured transactions lawful purpose, and the reporting
for money services businesses. money services business knows of no
reasonable explanation for the trans-
skersey on DSK4WB1RN3PROD with CFR
§ 1022.315 Exemptions. action after examining the available
Refer to § 1010.315 of this chapter for facts, including the background and
exemptions from the obligation to file possible purpose of the transaction.
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Financial Crimes Enforc. Network, Treas. § 1022.320
(iv) Involves use of the money serv- as ongoing money laundering schemes,
ices business to facilitate criminal ac- the money services business shall im-
tivity. mediately notify by telephone an ap-
(3) To the extent that the identifica- propriate law enforcement authority in
tion of transactions required to be re- addition to filing a SAR. Money serv-
ported is derived from a review of ices businesses wishing voluntarily to
clearance records or other similar report suspicious transactions that
records of money orders or traveler’s may relate to terrorist activity may
checks that have been sold or proc- call FinCEN’s Financial Institutions
essed, an issuer of money orders or Hotline at 1–866–556–3974 in addition to
traveler’s checks shall only be required filing timely a SAR if required by this
to report a transaction or pattern of section.
transactions that involves or aggre- (c) Retention of records. A money serv-
gates funds or other assets of at least ices business shall maintain a copy of
$5,000. any SAR filed and the original or busi-
(4) The obligation to identify and ness record equivalent of any sup-
properly and timely to report a sus- porting documentation for a period of
picious transaction rests with each five years from the date of filing the
money services business involved in SAR. Supporting documentation shall
the transaction, provided that no more be identified as such and maintained by
than one report is required to be filed the money services business, and shall
by the money services businesses in- be deemed to have been filed with the
volved in a particular transaction (so
SAR. A money services business shall
long as the report filed contains all rel-
make all supporting documentation
evant facts). Whether, in addition to
available to FinCEN or any Federal,
any liability on its own for failure to
State, or local law enforcement agen-
report, a money services business that
cy, or any Federal regulatory author-
issues the instrument or provides the
ity that examines the money services
funds transfer service involved in the
business for compliance with the Bank
transaction may be liable for the fail-
Secrecy Act, or any State regulatory
ure of another money services business
authority administering a State law
involved in the transaction to report
that requires the money services busi-
that transaction depends upon the na-
ture of the contractual or other rela- ness to comply with the Bank Secrecy
tionship between the businesses, and Act or otherwise authorizes the State
the legal effect of the facts and cir- authority to ensure that the money
cumstances of the relationship and services business complies with the
transaction involved, under general Bank Secrecy Act.
principles of the law of agency. (d) Confidentiality of SARs. A SAR,
(b) Filing procedures—(1) What to file. and any information that would reveal
A suspicious transaction shall be re- the existence of a SAR, are confiden-
ported by completing a Suspicious Ac- tial and shall not be disclosed except as
tivity Report(‘‘SAR’’), and collecting authorized in this paragraph (d). For
and maintaining supporting docu- purposes of this paragraph (d) only, a
mentation as required by paragraph (c) SAR shall include any suspicious activ-
of this section. ity report filed with FinCEN pursuant
(2) Where to file. The SAR shall be to any regulation in this chapter.
filed in a central location to be deter- (1) Prohibition on disclosures by money
mined by FinCEN, as indicated in the services businesses—(i) General rule. No
instructions to the SAR. money services business, and no direc-
(3) When to file. A money services tor, officer, employee, or agent of any
business subject to this section is re- money services business, shall disclose
quired to file each SAR no later than 30 a SAR or any information that would
calendar days after the date of the ini- reveal the existence of a SAR. Any
tial detection by the money services money services business, and any direc-
business of facts that may constitute a tor, officer, employee, or agent of any
skersey on DSK4WB1RN3PROD with CFR
basis for filing a SAR under this sec- money services business that is subpoe-
tion. In situations involving violations naed or otherwise requested to disclose
that require immediate attention, such a SAR or any information that would
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§ 1022.380 31 CFR Ch. X (7–1–25 Edition)
reveal the existence of a SAR, shall de- purposes of this section, ‘‘official du-
cline to produce the SAR or such infor- ties’’ shall not include the disclosure of
mation, citing this section and 31 a SAR, or any information that would
U.S.C. 5318(g)(2)(A)(i), and shall notify reveal the existence of a SAR, in re-
FinCEN of any such request and the re- sponse to a request for disclosure of
sponse thereto. non-public information or a request for
(ii) Rules of Construction. Provided use in a private legal proceeding, in-
that no person involved in any reported cluding a request pursuant to 31 CFR
suspicious transaction is notified that 1.11.
the transaction has been reported, this (e) Limitation on liability. A money
paragraph (d)(1) shall not be construed services business, and any director, of-
as prohibiting: ficer, employee, or agent of any money
(A) The disclosure by a money serv- services business, that makes a vol-
ices business, or any director, officer, untary disclosure of any possible viola-
employee, or agent of a money services tion of law or regulation to a govern-
business, of: ment agency or makes a disclosure
(1) A SAR, or any information that pursuant to this section or any other
would reveal the existence of a SAR, to authority, including a disclosure made
FinCEN or any Federal, State, or local jointly with another institution, shall
law enforcement agency, or any Fed- be protected from liability to any per-
eral regulatory authority that exam- son for any such disclosure, or for fail-
ines the money services business for ure to provide notice of such disclosure
compliance with the Bank Secrecy Act, to any person identified in the disclo-
or any State regulatory authority ad- sure, or both, to the full extent pro-
ministering a State law that requires vided by 31 U.S.C. 5318(g)(3).
the money services business to comply (f) Compliance. Money services busi-
with the Bank Secrecy Act or other- nesses shall be examined by FinCEN or
wise authorizes the State authority to its delegatees for compliance with this
ensure that the money services busi- section. Failure to satisfy the require-
ness complies with the Bank Secrecy ments of this section may be a viola-
Act; or tion of the Bank Secrecy Act and of
(2) The underlying facts, trans- this chapter.
actions, and documents upon which a (g) Applicability date. This section ap-
SAR is based, including but not limited plies to transactions occurring after
to, disclosures to another financial in- December 31, 2001.
stitution, or any director, officer, em- [75 FR 65812, Oct. 26, 2010, as amended at 75
ployee, or agent of a financial institu- FR 10518, Feb. 25, 2011; 76 FR 45420, July 29,
tion, for the preparation of a joint 2011; 81 FR 76865, Nov. 4, 2016]
SAR.
(B) The sharing by a money services § 1022.380 Registration of money serv-
business, or any director, officer, em- ices businesses.
ployee, or agent of the money services (a) Registration requirement—(1) In
business, of a SAR, or any information general. Except as provided in para-
that would reveal the existence of a graph (a)(3) of this section, relating to
SAR, within the money services agents, and except for sellers of prepaid
business’s corporate organizational access as defined in § 1010.100(ff)(7) of
structure for purposes consistent with this chapter to the extent that they are
Title II of the Bank Secrecy Act as de- not already agents, each money serv-
termined by regulation or in guidance. ices business (whether or not licensed
(2) Prohibition on disclosures by govern- as a money services business by any
ment authorities. A Federal, State, State) must register with FinCEN.
local, territorial, or Tribal government Each provider of prepaid access must
authority, or any director, officer, em- identify each prepaid program for
ployee, or agent of any of the fore- which it is the provider of prepaid ac-
going, shall not disclose a SAR, or any cess. Each money services business
information that would reveal the ex- must, as part of its registration, main-
skersey on DSK4WB1RN3PROD with CFR
istence of a SAR, except as necessary tain a list of its agents as required by
to fulfill official duties consistent with 31 U.S.C. 5330 and this section. This
Title II of the Bank Secrecy Act. For section does not apply to the United
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