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U.S. Code as of:
01/19/04
Section 1829b. Retention of records by insured depository institutions
(a) Congressional findings and declaration of purpose
(1) Findings
Congress finds that -
(A) adequate records maintained by insured depository
institutions have a high degree of usefulness in criminal, tax,
and regulatory investigations or proceedings, and that, given
the threat posed to the security of the Nation on and after the
terrorist attacks against the United States on September 11,
2001, such records may also have a high degree of usefulness in
the conduct of intelligence or counterintelligence activities,
including analysis, to protect against domestic and
international terrorism; and
(B) microfilm or other reproductions and other records made
by insured depository institutions of checks, as well as
records kept by such institutions, of the identity of persons
maintaining or authorized to act with respect to accounts
therein, have been of particular value in proceedings described
in subparagraph (A).
(2) Purpose
It is the purpose of this section to require the maintenance of
appropriate types of records by insured depository institutions
in the United States where such records have a high degree of
usefulness in criminal, tax, or regulatory investigations or
proceedings, recognizes that, given the threat posed to the
security of the Nation on and after the terrorist attacks against
the United States on September 11, 2001, such records may also
have a high degree of usefulness in the conduct of intelligence
or counterintelligence activities, including analysis, to protect
against international terrorism.
(b) Recordkeeping regulations
(1) In general
Where the Secretary of the Treasury (referred to in this
section as the "Secretary") determines that the maintenance of
appropriate types of records and other evidence by insured
depository institutions has a high degree of usefulness in
criminal, tax, or regulatory investigations or proceedings, he
shall prescribe regulations to carry out the purposes of this
section.
(2) Domestic funds transfers
Whenever the Secretary and the Board of Governors of the
Federal Reserve System (hereafter in this section referred to as
the "Board") determine that the maintenance of records, by
insured depository institutions, of payment orders which direct
transfers of funds over wholesale funds transfer systems has a
high degree of usefulness in criminal, tax, or regulatory
investigations or proceedings, the Secretary and the Board shall
jointly prescribe regulations to carry out the purposes of this
section with respect to the maintenance of such records.
(3) International funds transfers
(A) In general
The Secretary and the Board shall jointly prescribe, after
consultation with State banking supervisors, final regulations
requiring that insured depository institutions, businesses that
provide check cashing services, money transmitting businesses,
and businesses that issue or redeem money orders, travelers'
checks or other similar instruments maintain such records of
payment orders which -
(i) involve international transactions; and
(ii) direct transfers of funds over wholesale funds
transfer systems or on the books of any insured depository
institution, or on the books of any business that provides
check cashing services, any money transmitting business, and
any business that issues or redeems money orders, travelers'
checks or similar instruments,
that will have a high degree of usefulness in criminal, tax, or
regulatory investigations or proceedings.
(B) Factors for consideration
In prescribing the regulations required under subparagraph
(A), the Secretary and the Board shall consider -
(i) the usefulness in criminal, tax, or regulatory
investigations or proceedings of any record required to be
maintained pursuant to the proposed regulations; and
(ii) the effect the recordkeeping required pursuant to such
proposed regulations will have on the cost and efficiency of
the payment system.
(C) Availability of records
Any records required to be maintained pursuant to the
regulations prescribed under subparagraph (A) shall be
submitted or made available to the Secretary or the Board upon
request.
(c) Identity of persons having accounts and persons authorized to
act with respect to such accounts; exemptions
Subject to the requirements of any regulations prescribed jointly
by the Secretary and the Board under paragraph (2) or (3) of
subsection (b) of this section, each insured depository institution
shall maintain such records and other evidence, in such form as the
Secretary shall require, of the identity of each person having an
account in the United States with the insured depository
institution and of each individual authorized to sign checks, make
withdrawals, or otherwise act with respect to any such account. The
Secretary may make such exemptions from any requirement otherwise
imposed under this subsection as are consistent with the purposes
of this section.
(d) Reproduction of checks, drafts, and other instruments; record
of transactions; identity of party
Each insured depository institution shall make, to the extent
that the regulations of the Secretary so require -
(1) a microfilm or other reproduction of each check, draft, or
similar instrument drawn on it and presented to it for payment;
and
(2) a record of each check, draft, or similar instrument
received by it for deposit or collection, together with an
identification of the party for whose account it is to be
deposited or collected, unless the insured depository institution
has already made a record of the party's identity pursuant to
subsection (c) of this section.
(e) Identity of persons making reportable currency and foreign
transactions
Subject to the requirements of any regulations prescribed jointly
by the Secretary and the Board under paragraph (2) or (3) of
subsection (b) of this section, whenever any individual engages
(whether as principal, agent, or bailee) in any transaction with an
insured depository institution which is required to be reported or
recorded under subchapter II of chapter 53 of title 31, the insured
depository institution shall require and retain such evidence of
the identity of that individual as the Secretary may prescribe as
appropriate under the circumstances.
(f) Additions to or substitutes for required records
Subject to the requirements of any regulations prescribed jointly
by the Secretary and the Board under paragraph (2) or (3) of
subsection (b) of this section and in addition to or in lieu of the
records and evidence otherwise referred to in this section, each
insured depository institution shall maintain such records and
evidence as the Secretary may prescribe to carry out the purposes
of this section.
(g) Retention period
Any type of record or evidence required under this section shall
be retained for such period as the Secretary may prescribe for the
type in question. Any period so prescribed shall not exceed six
years unless the Secretary determines, having regard for the
purposes of this section, that a longer period is necessary in the
case of a particular type of record or evidence.
(h) Report to Congress by Secretary of the Treasury
The Secretary shall include in his annual report to the Congress
information on his implementation of the authority conferred by
this section and any similar authority with respect to
recordkeeping or reporting requirements conferred by other
provisions of law.
(i) Application of provisions to foreign banks
The provisions of this section shall not apply to any foreign
bank except with respect to the transactions and records of any
insured branch of such a bank.
(j) Civil penalties
(1) Penalty imposed
Any insured depository institution and any director, officer,
or employee of an insured depository institution who willfully or
through gross negligence violates, or any person who willfully
causes such a violation, any regulation prescribed under
subsection (b) of this section shall be liable to the United
States for a civil penalty of not more than $10,000.
(2) Treatment of continuing violation
A separate violation of any regulation prescribed under
subsection (b) of this section occurs for each day the violation
continues and at each office, branch, or place of business at
which such violation occurs.
(3) Assessment
Any penalty imposed under paragraph (1) shall be assessed,
mitigated, and collected in the manner provided in subsections
(b) and (c) of section 5321 of title 31.
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