US Laws, Codes, Statutes & Cases

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[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
  January 7, 2003 and December 19, 2003]
[CITE: 31USC5313]

 
                       TITLE 31--MONEY AND FINANCE
 
                           SUBTITLE IV--MONEY
 
                    CHAPTER 53--MONETARY TRANSACTIONS
 
 SUBCHAPTER II--RECORDS AND REPORTS ON MONETARY INSTRUMENTS TRANSACTIONS
 
Sec. 5313. Reports on domestic coins and currency transactions

    (a) When a domestic financial institution is involved in a 
transaction for the payment, receipt, or transfer of United States coins 
or currency (or other monetary instruments the Secretary of the Treasury 
prescribes), in an amount, denomination, or amount and denomination, or 
under circumstances the Secretary prescribes by regulation, the 
institution and any other participant in the transaction the Secretary 
may prescribe shall file a report on the transaction at the time and in 
the way the Secretary prescribes. A participant acting for another 
person shall make the report as the agent or bailee of the person and 
identify the person for whom the transaction is being made.
    (b) The Secretary may designate a domestic financial institution as 
an agent of the United States Government to receive a report under this 
section. However, the Secretary may designate a domestic financial 
institution that is not insured, chartered, examined, or registered as a 
domestic financial institution only if the institution consents. The 
Secretary may suspend or revoke a designation for a violation of this 
subchapter or a regulation under this subchapter (except a violation of 
section 5315 of this title or a regulation prescribed under section 
5315), section 411 \1\ of the National Housing Act (12 U.S.C. 1730d), or 
section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b).
---------------------------------------------------------------------------
    \1\ See References in Text note below.
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    (c)(1) A person (except a domestic financial institution designated 
under subsection (b) of this section) required to file a report under 
this section shall file the report--
        (A) with the institution involved in the transaction if the 
    institution was designated;
        (B) in the way the Secretary prescribes when the institution was 
    not designated; or
        (C) with the Secretary.

    (2) The Secretary shall prescribe--
        (A) the filing procedure for a domestic financial institution 
    designated under subsection (b) of this section; and
        (B) the way the institution shall submit reports filed with it.

    (d) Mandatory Exemptions From Reporting Requirements.--
        (1) In general.--The Secretary of the Treasury shall exempt, 
    pursuant to section 5318(a)(6), a depository institution from the 
    reporting requirements of subsection (a) with respect to 
    transactions between the depository institution and the following 
    categories of entities:
            (A) Another depository institution.
            (B) A department or agency of the United States, any State, 
        or any political subdivision of any State.
            (C) Any entity established under the laws of the United 
        States, any State, or any political subdivision of any State, or 
        under an interstate compact between 2 or more States, which 
        exercises governmental authority on behalf of the United States 
        or any such State or political subdivision.
            (D) Any business or category of business the reports on 
        which have little or no value for law enforcement purposes.

        (2) Notice of exemption.--The Secretary of the Treasury shall 
    publish in the Federal Register at such times as the Secretary 
    determines to be appropriate (but not less frequently than once each 
    year) a list of all the entities whose transactions with a 
    depository institution are exempt under this subsection from the 
    reporting requirements of subsection (a).

    (e) Discretionary Exemptions From Reporting Requirements.--
        (1) In general.--The Secretary of the Treasury may exempt, 
    pursuant to section 5318(a)(6), a depository institution from the 
    reporting requirements of subsection (a) with respect to 
    transactions between the depository institution and a qualified 
    business customer of the institution on the basis of information 
    submitted to the Secretary by the institution in accordance with 
    procedures which the Secretary shall establish.
        (2) Qualified business customer defined.--For purposes of this 
    subsection, the term ``qualified business customer'' means a 
    business which--
            (A) maintains a transaction account (as defined in section 
        19(b)(1)(C) of the Federal Reserve Act) at the depository 
        institution;
            (B) frequently engages in transactions with the depository 
        institution which are subject to the reporting requirements of 
        subsection (a); and
            (C) meets criteria which the Secretary determines are 
        sufficient to ensure that the purposes of this subchapter are 
        carried out without requiring a report with respect to such 
        transactions.

        (3) Criteria for exemption.--The Secretary of the Treasury shall 
    establish, by regulation, the criteria for granting and maintaining 
    an exemption under paragraph (1).
        (4) Guidelines.--
            (A) In general.--The Secretary of the Treasury shall 
        establish guidelines for depository institutions to follow in 
        selecting customers for an exemption under this subsection.
            (B) Contents.--The guidelines may include a description of 
        the types of businesses or an itemization of specific businesses 
        for which no exemption will be granted under this subsection to 
        any depository institution.

        (5) Annual review.--The Secretary of the Treasury shall 
    prescribe regulations requiring each depository institution to--
            (A) review, at least once each year, the qualified business 
        customers of such institution with respect to whom an exemption 
        has been granted under this subsection; and
            (B) upon the completion of such review, resubmit information 
        about such customers, with such modifications as the institution 
        determines to be appropriate, to the Secretary for the 
        Secretary's approval.

        (6) 2-year phase-in provision.--During the 2-year period 
    beginning on the date of enactment of the Money Laundering 
    Suppression Act of 1994, this subsection shall be applied by the 
    Secretary on the basis of such criteria as the Secretary determines 
    to be appropriate to achieve an orderly implementation of the 
    requirements of this subsection.

    (f) Provisions Applicable to Mandatory and Discretionary 
Exemptions.--
        (1) Limitation on liability of depository institutions.--No 
    depository institution shall be subject to any penalty which may be 
    imposed under this subchapter for the failure of the institution to 
    file a report with respect to a transaction with a customer for whom 
    an exemption has been granted under subsection (d) or (e) unless the 
    institution--
            (A) knowingly files false or incomplete information to the 
        Secretary with respect to the transaction or the customer 
        engaging in the transaction; or
            (B) has reason to believe at the time the exemption is 
        granted or the transaction is entered into that the customer or 
        the transaction does not meet the criteria established for 
        granting such exemption.

        (2) Coordination with other provisions.--Any exemption granted 
    by the Secretary of the Treasury under section 5318(a) in accordance 
    with this section, and any transaction which is subject to such 
    exemption, shall be subject to any other provision of law applicable 
    to such exemption, including--
            (A) the authority of the Secretary, under section 
        5318(a)(6), to revoke such exemption at any time; and
            (B) any requirement to report, or any authority to require a 
        report on, any possible violation of any law or regulation or 
        any suspected criminal activity.

    (g) Depository Institution Defined.--For purposes of this section, 
the term ``depository institution''--
        (1) has the meaning given to such term in section 19(b)(1)(A) of 
    the Federal Reserve Act; and
        (2) includes--
            (A) any branch, agency, or commercial lending company (as 
        such terms are defined in section 1(b) of the International 
        Banking Act of 1978);
            (B) any corporation chartered under section 25A of the 
        Federal Reserve Act; and
            (C) any corporation having an agreement or undertaking with 
        the Board of Governors of the Federal Reserve System under 
        section 25 of the Federal Reserve Act.

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 996; Pub. L. 103-325, title 
IV, Sec. 402(a), Sept. 23, 1994, 108 Stat. 2243.)

                                          Historical and Revision Notes
----------------------------------------------------------------------------------------------------------------
           Revised Section                   Source (U.S. Code)                Source (Statutes at Large)
----------------------------------------------------------------------------------------------------------------
5313(a)..............................  31:1081.                        Oct. 26, 1970, Pub. L. 91-508, Secs.  221-
                                                                        223, 84 Stat. 1122.
                                       31:1082.
5313(b)..............................  31:1083(a).
5313(c)..............................  31:1083(b).
----------------------------------------------------------------------------------------------------------------

    In subsection (a), the words ``coins or'' are added, and the words 
``prescribe'' and ``prescribes'' are substituted for ``specify'' in 
31:1081, and ``require'', for consistency. The words ``other parties 
thereto or'' in 31:1082 are omitted as surplus. The words ``to the 
Secretary'' in 31:1081 are omitted as unnecessary and for clarity. The 
words ``in such detail'' are omitted as surplus. The words ``A 
participant acting for another person shall make the report as the agent 
or bailee of the person and identify the person for whom the transaction 
is being made'' are substituted for 31:1082(last sentence) for clarity 
and to eliminate unnecessary words.
    In subsection (b), the words ``in his discretion'' and 
``individually or by class'' are omitted as surplus. The word 
``Government'' is added for consistency. The words ``or a regulation 
under this subchapter'', are added because of the restatement. The words 
``(except a violation of section 5315 of this title or a regulation 
prescribed under section 5315)'' are added because 31:1141-1143 was not 
enacted as a part of the Currency and Foreign Transactions Reporting Act 
that is restated in this subchapter.
    In subsection (c)(1), clause (A) is substituted for ``with respect 
to a domestic financial institution . . . with that institution'' for 
clarity. Clause (C) is substituted for ``any such person may, at his 
election and in lieu of filing the report in the manner hereinabove 
prescribed, file the report with the Secretary'' to eliminate 
unnecessary words.

                       References in Text

    Section 411 of the National Housing Act, referred to in subsec. (b), 
which was classified to section 1730d of Title 12, Banks and Banking, 
was repealed by Pub. L. 101-73, title IV, Sec. 407, Aug. 9, 1989, 103 
Stat. 363.
    Section 19(b)(1)(A) and (C) of the Federal Reserve Act, referred to 
in subsecs. (e)(2)(A) and (g)(1), is classified to section 461(b)(1)(A) 
and (C) of Title 12.
    The date of enactment of the Money Laundering Suppression Act of 
1994, referred to in subsec. (e)(6), is the date of enactment of title 
IV of Pub. L. 103-325, which was approved Sept. 23, 1994.
    Section 1(b) of the International Banking Act of 1978, referred to 
in subsec. (g)(2)(A), is classified to section 3101 of Title 12.
    Sections 25 and 25A of the Federal Reserve Act, referred to in 
subsec. (g)(2)(B), (C), are classified to subchapters I (Secs. 601 et 
seq.) and II (Secs. 611 et seq.), respectively, of chapter 6 of Title 
12.


                               Amendments

    1994--Subsecs. (d) to (g). Pub. L. 103-325 added subsecs. (d) to 
(g).


           Efficient Use of Currency Transaction Report System

    Pub. L. 107-56, title III, Sec. 366, Oct. 26, 2001, 115 Stat. 335, 
provided that:
    ``(a) Findings.--The Congress finds the following:
        ``(1) The Congress established the currency transaction 
    reporting requirements in 1970 because the Congress found then that 
    such reports have a high degree of usefulness in criminal, tax, and 
    regulatory investigations and proceedings and the usefulness of such 
    reports has only increased in the years since the requirements were 
    established.
        ``(2) In 1994, in response to reports and testimony that excess 
    amounts of currency transaction reports were interfering with 
    effective law enforcement, the Congress reformed the currency 
    transaction report exemption requirements to provide--
            ``(A) mandatory exemptions for certain reports that had 
        little usefulness for law enforcement, such as cash transfers 
        between depository institutions and cash deposits from 
        government agencies; and
            ``(B) discretionary authority for the Secretary of the 
        Treasury to provide exemptions, subject to criteria and 
        guidelines established by the Secretary, for financial 
        institutions with regard to regular business customers that 
        maintain accounts at an institution into which frequent cash 
        deposits are made.
        ``(3) Today there is evidence that some financial institutions 
    are not utilizing the exemption system, or are filing reports even 
    if there is an exemption in effect, with the result that the volume 
    of currency transaction reports is once again interfering with 
    effective law enforcement.
    ``(b) Study and Report.--
        ``(1) Study required.--The Secretary shall conduct a study of--
            ``(A) the possible expansion of the statutory exemption 
        system in effect under section 5313 of title 31, United States 
        Code; and
            ``(B) methods for improving financial institution 
        utilization of the statutory exemption provisions as a way of 
        reducing the submission of currency transaction reports that 
        have little or no value for law enforcement purposes, including 
        improvements in the systems in effect at financial institutions 
        for regular review of the exemption procedures used at the 
        institution and the training of personnel in its effective use.
        ``(2) Report required.--The Secretary of the Treasury shall 
    submit a report to the Congress before the end of the 1-year period 
    beginning on the date of enactment of this Act [Oct. 26, 2001] 
    containing the findings and conclusions of the Secretary with regard 
    to the study required under subsection (a), and such recommendations 
    for legislative or administrative action as the Secretary determines 
    to be appropriate.''


     Report Reduction Goal; Streamlined Currency Transaction Reports

    Section 402(b), (c) of Pub. L. 103-325 provided that:
    ``(b) Report Reduction Goal; Reports.--
        ``(1) In general.--In implementing the amendment made by 
    subsection (a) [amending this section], the Secretary of the 
    Treasury shall seek to reduce, within a reasonable period of time, 
    the number of reports required to be filed in the aggregate by 
    depository institutions pursuant to section 5313(a) of title 31, 
    United States Code, by at least 30 percent of the number filed 
    during the year preceding the date of enactment of this Act [Sept. 
    23, 1994].
        ``(2) Interim report.--The Secretary of the Treasury shall 
    submit a report to the Congress not later than the end of the 180-
    day period beginning on the date of enactment of this Act on the 
    progress made by the Secretary in implementing the amendment made by 
    subsection (a).
        ``(3) Annual report.--The Secretary of the Treasury shall submit 
    an annual report to the Congress after the end of each of the first 
    5 calendar years which begin after the date of enactment of this Act 
    on the extent to which the Secretary has reduced the overall number 
    of currency transaction reports filed with the Secretary pursuant to 
    section 5313(a) of title 31, United States Code, consistent with the 
    purposes of such section and effective law enforcement.
    ``(c) Streamlined Currency Transaction Reports.--The Secretary of 
the Treasury shall take such action as may be appropriate to--
        ``(1) redesign the format of reports required to be filed under 
    section 5313(a) of title 31, United States Code, by any financial 
    institution (as defined in section 5312(a)(2) of such title) to 
    eliminate the need to report information which has little or no 
    value for law enforcement purposes; and
        ``(2) reduce the time and effort required to prepare such report 
    for filing by any such financial institution under such section.''

                  Section Referred to in Other Sections

    This section is referred to in sections 5312, 5317, 5324, 5330, 5331 
of this title; title 12 section 3420; title 26 section 6103; title 28 
section 524.