
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-56 Section 358(a)]
[Document affected by Public Law 107-56 Section 302]
[Document affected by Public Law 107-56 Section 303]
[Document affected by Public Law 107-56 Section 314]
[Document affected by Public Law 107-56 Section 324]
[Document affected by Public Law 107-56 Section 328]
[Document affected by Public Law 107-56 Section 329]
[Document affected by Public Law 107-56 Section 356(c)]
[Document affected by Public Law 107-56 Section 359(d)]
[CITE: 31USC5311]

 
                       TITLE 31--MONEY AND FINANCE
 
                           SUBTITLE IV--MONEY
 
                    CHAPTER 53--MONETARY TRANSACTIONS
 
 SUBCHAPTER II--RECORDS AND REPORTS ON MONETARY INSTRUMENTS TRANSACTIONS
 
Sec. 5311. Declaration of purpose

    It is the purpose of this subchapter (except section 5315) to 
require certain reports or records where they have a high degree of 
usefulness in criminal, tax, or regulatory investigations or 
proceedings.

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 995.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
           Revised Section                   Source (U.S. Code)                
Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
5311.................................  31:1051.                        Oct. 26,
 1970, Pub. L. 91-508, Sec.  202,
                                                                        84 Stat
. 1118.
-------------------------------------------------------------------------------
---------------------------------

   Uniform State Licensing and Regulation of Check Cashing, Currency 
               Exchange, and Money Transmitting Businesses

    Pub. L. 103-325, title IV, Sec. 407, Sept. 23, 1994, 108 Stat. 2247, 
provided that:
    ``(a) Uniform Laws and Enforcement.--For purposes of preventing 
money laundering and protecting the payment system from fraud and abuse, 
it is the sense of the Congress that the several States should--
        ``(1) establish uniform laws for licensing and regulating 
    businesses which--
            ``(A) provide check cashing, currency exchange, or money 
        transmitting or remittance services, or issue or redeem money 
        orders, travelers' checks, and other similar instruments; and
            ``(B) are not depository institutions (as defined in section 
        5313(g) of title 31, United States Code); and
        ``(2) provide sufficient resources to the appropriate State 
    agency to enforce such laws and regulations prescribed pursuant to 
    such laws.
    ``(b) Model Statute.--It is the sense of the Congress that the 
several States should develop, through the auspices of the National 
Conference of Commissioners on Uniform State Laws, the American Law 
Institute, or such other forum as the States may determine to be 
appropriate, a model statute to carry out the goals described in 
subsection (a) which would include the following:
        ``(1) Licensing requirements.--A requirement that any business 
    described in subsection (a)(1) be licensed and regulated by an 
    appropriate State agency in order to engage in any such activity 
    within the State.
        ``(2) Licensing standards.--A requirement that--
            ``(A) in order for any business described in subsection 
        (a)(1) to be licensed in the State, the appropriate State agency 
        shall review and approve--
                ``(i) the business record and the capital adequacy of 
            the business seeking the license; and
                ``(ii) the competence, experience, integrity, and 
            financial ability of any individual who--
          ``(I) is a director, officer, or supervisory employee of such 
                business; or
          ``(II) owns or controls such business; and
            ``(B) any record, on the part of any business seeking the 
        license or any person referred to in subparagraph (A)(ii), of--
                ``(i) any criminal activity;
                ``(ii) any fraud or other act of personal dishonesty;
                ``(iii) any act, omission, or practice which constitutes 
            a breach of a fiduciary duty; or
                ``(iv) any suspension or removal, by any agency or 
            department of the United States or any State, from 
            participation in the conduct of any federally or State 
            licensed or regulated business,
    may be grounds for the denial of any such license by the appropriate 
        State agency.
        ``(3) Reporting requirements.--A requirement that any business 
    described in subsection (a)(1)--
            ``(A) disclose to the appropriate State agency the fees 
        charged to consumers for services described in subsection 
        (a)(1)(A); and
            ``(B) conspicuously disclose to the public, at each location 
        of such business, the fees charged to consumers for such 
        services.
        ``(4) Procedures to ensure compliance with federal cash 
    transaction reporting requirements.--A civil or criminal penalty for 
    operating any business referred to in paragraph (1) without 
    establishing and complying with appropriate procedures to ensure 
    compliance with subchapter II of chapter 53 of title 31, United 
    States Code (relating to records and reports on monetary instruments 
    transactions).
        ``(5) Criminal penalties for operation of business without a 
    license.--A criminal penalty for operating any business referred to 
    in paragraph (1) without a license within the State after the end of 
    an appropriate transition period beginning on the date of enactment 
    of such model statute by the State.
    ``(c) Study Required.--The Secretary of the Treasury shall conduct a 
study of--
        ``(1) the progress made by the several States in developing and 
    enacting a model statute which--
            ``(A) meets the requirements of subsection (b); and
            ``(B) furthers the goals of--
                ``(i) preventing money laundering by businesses which 
            are required to be licensed under any such statute; and
                ``(ii) protecting the payment system, including the 
            receipt, payment, collection, and clearing of checks, from 
            fraud and abuse by such businesses; and
        ``(2) the adequacy of--
            ``(A) the activity of the several States in enforcing the 
        requirements of such statute; and
            ``(B) the resources made available to the appropriate State 
        agencies for such enforcement activity.
    ``(d) Report Required.--Not later than the end of the 3-year period 
beginning on the date of enactment of this Act [Sept. 23, 1994] and not 
later than the end of each of the first two 1-year periods beginning 
after the end of such 3-year period, the Secretary of the Treasury shall 
submit a report to the Congress containing the findings and 
recommendations of the Secretary in connection with the study under 
subsection (c), together with such recommendations for legislative and 
administrative action as the Secretary may determine to be appropriate.
    ``(e) Recommendations in Cases of Inadequate Regulation and 
Enforcement by States.--If the Secretary of the Treasury determines that 
any State has been unable to--
        ``(1) enact a statute which meets the requirements described in 
    subsection (b);
        ``(2) undertake adequate activity to enforce such statute; or
        ``(3) make adequate resources available to the appropriate State 
    agency for such enforcement activity,
the report submitted pursuant to subsection (d) shall contain 
recommendations of the Secretary which are designed to facilitate the 
enactment and enforcement by the State of such a statute.
    ``(f) Federal Funding Study.--
        ``(1) Study required.--The Secretary of the Treasury shall 
    conduct a study to identify possible available sources of Federal 
    funding to cover costs which will be incurred by the States in 
    carrying out the purposes of this section.
        ``(2) Report.--The Secretary of the Treasury shall submit a 
    report to the Congress on the study conducted pursuant to paragraph 
    (1) not later than the end of the 18-month period beginning on the 
    date of enactment of this Act [Sept. 23, 1994].''


                   Anti-Money Laundering Training Team

    Pub. L. 102-550, title XV, Sec. 1518, Oct. 28, 1992, 106 Stat. 4060, 
provided that: ``The Secretary of the Treasury and the Attorney General 
shall jointly establish a team of experts to assist and provide training 
to foreign governments and agencies thereof in developing and expanding 
their capabilities for investigating and prosecuting violations of money 
laundering and related laws.''


                Advisory Group on Reporting Requirements

    Pub. L. 102-550, title XV, Sec. 1564, Oct. 28, 1992, 106 Stat. 4073, 
provided that:
    ``(a) Establishment.--Not later than 90 days after the date of the 
enactment of this Act [Oct. 28, 1992], the Secretary of the Treasury 
shall establish a Bank Secrecy Act Advisory Group consisting of 
representatives of the Department of the Treasury, the Department of 
Justice, and the Office of National Drug Control Policy and of other 
interested persons and financial institutions subject to the reporting 
requirements of subchapter II of chapter 53 of title 31, United States 
Code, or section 6050I of the Internal Revenue Code of 1986 [26 U.S.C. 
6050I].
    ``(b) Purposes.--The Advisory Group shall provide a means by which 
the Secretary--
        ``(1) informs private sector representatives, on a regular 
    basis, of the ways in which the reports submitted pursuant to the 
    requirements referred to in subsection (a) have been used;
        ``(2) informs private sector representatives, on a regular 
    basis, of how information regarding suspicious financial 
    transactions provided voluntarily by financial institutions has been 
    used; and
        ``(3) receives advice on the manner in which the reporting 
    requirements referred to in subsection (a) should be modified to 
    enhance the ability of law enforcement agencies to use the 
    information provided for law enforcement purposes.
    ``(c) Inapplicability of Federal Advisory Committee Act.--The 
Federal Advisory Committee Act [5 App. U.S.C.] shall not apply to the 
Bank Secrecy Act Advisory Group established pursuant to subsection 
(a).''


      GAO Feasibility Study of Financial Crimes Enforcement Network

    Pub. L. 102-550, title XV, Sec. 1565, Oct. 28, 1992, 106 Stat. 4074, 
provided that:
    ``(a) Study Required.--The Comptroller General of the United States 
shall conduct a feasibility study of the Financial Crimes Enforcement 
Network (popularly referred to as `Fincen') established by the Secretary 
of the Treasury in cooperation with other agencies and departments of 
the United States and appropriate Federal banking agencies.
    ``(b) Specific Requirements.--In conducting the study required under 
subsection (a), the Comptroller General shall examine and evaluate--
        ``(1) the extent to which Federal, State, and local governmental 
    and nongovernmental organizations are voluntarily providing 
    information which is necessary for the system to be useful for law 
    enforcement purposes;
        ``(2) the extent to which the operational guidelines established 
    for the system provide for the coordinated and efficient entry of 
    information into, and withdrawal of information from, the system;
        ``(3) the extent to which the operating procedures established 
    for the system provide appropriate standards or guidelines for 
    determining--
            ``(A) who is to be given access to the information in the 
        system;
            ``(B) what limits are to be imposed on the use of such 
        information; and
            ``(C) how information about activities or relationships 
        which involve or are closely associated with the exercise of 
        constitutional rights is to be screened out of the system; and
        ``(4) the extent to which the operating procedures established 
    for the system provide for the prompt verification of the accuracy 
    and completeness of information entered into the system and the 
    prompt deletion or correction of inaccurate or incomplete 
    information.
    ``(c) Report to Congress.--Before the end of the 1-year period, 
beginning on the date of the enactment of this Act [Oct. 28, 1992], the 
Comptroller General of the United States shall submit a report to the 
Congress containing the findings and conclusions of the Comptroller 
General in connection with the study conducted pursuant to subsection 
(a), together with such recommendations for legislative or 
administrative action as the Comptroller General may determine to be 
appropriate.''


          Reports on Uses Made of Currency Transaction Reports

    Pub. L. 101-647, title I, Sec. 101, Nov. 29, 1990, 104 Stat. 4789, 
provided that: ``Not later than 180 days after the effective date of 
this section [Nov. 29, 1990], and every 2 years for 4 years, the 
Secretary of the Treasury shall report to the Congress the following:
        ``(1) the number of each type of report filed pursuant to 
    subchapter II of chapter 53 of title 31, United States Code (or 
    regulations promulgated thereunder) in the previous fiscal year;
        ``(2) the number of reports filed pursuant to section 6050I of 
    the Internal Revenue Code of 1986 [26 U.S.C. 6050I] (regarding 
    transactions involving currency) in the previous fiscal year;
        ``(3) an estimate of the rate of compliance with the reporting 
    requirements by persons required to file the reports referred to in 
    paragraphs (1) and (2);
        ``(4) the manner in which the Department of the Treasury and 
    other agencies of the United States collect, organize, analyze and 
    use the reports referred to in paragraphs (1) and (2) to support 
    investigations and prosecutions of (A) violations of the criminal 
    laws of the United States, (B) violations of the laws of foreign 
    countries, and (C) civil enforcement of the laws of the United 
    States including the provisions regarding asset forfeiture;
        ``(5) a summary of sanctions imposed in the previous fiscal year 
    against persons who failed to comply with the reporting requirements 
    referred to in paragraphs (1) and (2), and other steps taken to 
    ensure maximum compliance;
        ``(6) a summary of criminal indictments filed in the previous 
    fiscal year which resulted, in large part, from investigations 
    initiated by analysis of the reports referred to in paragraphs (1) 
    and (2); and
        ``(7) a summary of criminal indictments filed in the previous 
    fiscal year which resulted, in large part, from investigations 
    initiated by information regarding suspicious financial transactions 
    provided voluntarily by financial institutions.''


              International Currency Transaction Reporting

    Pub. L. 100-690, title IV, Sec. 4701, Nov. 18, 1988, 102 Stat. 4290, 
stated Congressional findings concerning success of cash transaction and 
money laundering control statutes in United States and desirability of 
United States playing a leadership role in development of similar 
international system, urged United States Government to seek active 
cooperation of other countries in enforcement of such statutes, urged 
Secretary of the Treasury to negotiate with finance ministers of foreign 
countries to establish an international currency control agency to serve 
as central source of information and database for international drug 
enforcement agencies to collect and analyze currency transaction reports 
filed by member countries, and encouraged adoption, by member countries, 
of uniform cash transaction and money laundering statutes, prior to 
repeal by Pub. L. 102-583, Sec. 6(e)(1), Nov. 2, 1992, 106 Stat. 4933.


          Restrictions on Laundering of United States Currency

    Pub. L. 100-690, title IV, Sec. 4702, Nov. 18, 1988, 102 Stat. 4291, 
as amended by Pub. L. 103-447, title I, Sec. 103(b), Nov. 2, 1994, 108 
Stat. 4693, provided that:
    ``(a) Findings.--The Congress finds that international currency 
transactions, especially in United States currency, that involve the 
proceeds of narcotics trafficking fuel trade in narcotics in the United 
States and worldwide and consequently are a threat to the national 
security of the United States.
    ``(b) Purpose.--The purpose of this section is to provide for 
international negotiations that would expand access to information on 
transactions involving large amounts of United States currency wherever 
those transactions occur worldwide.
    ``(c) Negotiations.--(1) The Secretary of the Treasury (hereinafter 
in this section referred to as the `Secretary') shall enter into 
negotiations with the appropriate financial supervisory agencies and 
other officials of any foreign country the financial institutions of 
which do business in United States currency. Highest priority shall be 
attached to countries whose financial institutions the Secretary 
determines, in consultation with the Attorney General and the Director 
of National Drug Control Policy, may be engaging in currency 
transactions involving the proceeds of international narcotics 
trafficking, particularly United States currency derived from drug sales 
in the United States.
    ``(2) The purposes of negotiations under this subsection are--
        ``(A) to reach one or more international agreements to ensure 
    that foreign banks and other financial institutions maintain 
    adequate records of large United States currency transactions, and
        ``(B) to establish a mechanism whereby such records may be made 
    available to United States law enforcement officials.
In carrying out such negotiations, the Secretary should seek to enter 
into and further cooperative efforts, voluntary information exchanges, 
the use of letters rogatory, and mutual legal assistance treaties.
    ``(d) Reports.--Not later than 1 year after the date of enactment of 
this Act [Nov. 18, 1988], the Secretary shall submit an interim report 
to the Committee on Banking, Finance and Urban Affairs of the House of 
Representatives and the Committee on Banking, Housing, and Urban Affairs 
of the Senate on progress in the negotiations under subsection (c). Not 
later than 2 years after such enactment, the Secretary shall submit a 
final report to such Committees and the President on the outcome of 
those negotiations and shall identify, in consultation with the Attorney 
General and the Director of National Drug Control Policy, countries--
        ``(1) with respect to which the Secretary determines there is 
    evidence that the financial institutions in such countries are 
    engaging in currency transactions involving the proceeds of 
    international narcotics trafficking; and
        ``(2) which have not reached agreement with United States 
    authorities on a mechanism for exchanging adequate records on 
    international currency transactions in connection with narcotics 
    investigations and proceedings.
    ``(e) Authority.--If after receiving the advice of the Secretary and 
in any case at the time of receipt of the Secretary's report, the 
Secretary determines that a foreign country--
        ``(1) has jurisdiction over financial institutions that are 
    substantially engaging in currency transactions that effect [affect] 
    the United States involving the proceeds of international narcotics 
    trafficking;
        ``(2) such country has not reached agreement on a mechanism for 
    exchanging adequate records on international currency transactions 
    in connection with narcotics investigations and proceedings; and
        ``(3) such country is not negotiating in good faith to reach 
    such an agreement,
the President shall impose appropriate penalties and sanctions, 
including temporarily or permanently--
        ``(1) prohibiting such persons, institutions or other entities 
    in such countries from participating in any United States dollar 
    clearing or wire transfer system; and
        ``(2) prohibiting such persons, institutions or entities in such 
    countries from maintaining an account with any bank or other 
    financial institution chartered under the laws of the United States 
    or any State.
Any penalties or sanctions so imposed may be delayed or waived upon 
certification of the President to the Congress that it is in the 
national interest to do so. Financial institutions in such countries 
that maintain adequate records shall be exempt from such penalties and 
sanctions.
    ``(f) Definitions.--For the purposes of this section--
        ``(1) The term `United States currency' means Federal Reserve 
    Notes and United States coins.
        ``(2) The term `adequate records' means records of United 
    States' currency transactions in excess of $10,000 including the 
    identification of the person initiating the transaction, the 
    person's business or occupation, and the account or accounts 
    affected by the transaction, or other records of comparable 
    effect.''


International Information Exchange System; Study of Foreign Branches of 
                          Domestic Institutions

    Pub. L. 99-570, title I, Sec. 1363, Oct. 27, 1986, 100 Stat. 3207-
33, required the Secretary of the Treasury to initiate discussions with 
the central banks or other appropriate governmental authorities of other 
countries and propose that an information exchange system be established 
to reduce international flow of money derived from illicit drug 
operations and other criminal activities and to report to Congress 
before the end of the 9-month period beginning Oct. 27, 1986. The 
Secretary of the Treasury was also required to conduct a study of (1) 
the extent to which foreign branches of domestic institutions are used 
to facilitate illicit transfers of or to evade reporting requirements on 
transfers of coins, currency, and other monetary instruments into and 
out of the United States; (2) the extent to which the law of the United 
States is applicable to the activities of such foreign branches; and (3) 
methods for obtaining the cooperation of the country in which any such 
foreign branch is located for purposes of enforcing the law of the 
United States with respect to transfers, and reports on transfers, of 
such monetary instruments into and out of the United States and to 
report to Congress before the end of the 9-month period beginning Oct. 
27, 1986.
