(a) Promulgation of reporting requirements. The Secretary, when
he deems appropriate, may promulgate regulations requiring specified
financial institutions to file reports of certain transactions with
designated foreign financial agencies. If any such regulation is issued
as a final rule without notice and opportunity for public comment,
then a finding of good cause for dispensing with notice and comment
in accordance with 5 U.S.C. 553(b) will be included in the regulation.
If any such regulation is not published in the Federal Register, then any financial institution subject to the regulation will be
named and personally served or otherwise given actual notice in accordance
with 5 U.S.C. 553(b). If a financial institution is given notice of
a reporting requirement under this section by means other than publication
in the Federal Register, the Secretary may prohibit disclosure
of the existence or provisions of that reporting requirement to the
designated foreign financial agency or agencies and to any other party.
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(b) Information subject to reporting requirements. A regulation
promulgated pursuant to paragraph (a) of this section shall designate
one or more of the following categories of information to be reported:
(1) Checks or drafts, including
traveler’s checks, received by respondent financial institution
for collection or credit to the account of a foreign financial agency,
sent by respondent financial institution to a foreign country for
collection or payment, drawn by respondent financial institution on
a foreign financial agency, drawn by a foreign financial agency on
respondent financial institution—including the following information:
(i) Name of maker or drawer;
(ii) Name of drawee or drawee financial
institution;
(iii)
Name of payee;
(iv)
Date and amount of instrument;
(v) Names of all endorsers.
(2) Transmittal orders
received by a respondent financial institution from a foreign financial
agency or sent by respondent financial institution to a foreign financial
agency, including all information maintained by that institution pursuant
to sections 1010.410 and 1020.410.
(3) Loans made by respondent financial
institution to or through a foreign financial agency—including
the following information:
(i) Name of borrower;
(ii) Name of person acting for borrower;
(iii) Date and amount
of loan;
(iv) Terms
of repayment;
(v)
Name of guarantor;
(vi) Rate of interest;
(vii) Method of disbursing proceeds;
(viii) Collateral
for loan.
(4) Commercial paper received or shipped by the respondent financial
institution—including the following information:
(i) Name
of maker;
(ii) Date
and amount of paper;
(iii) Due date;
(iv) Certificate number;
(v) Amount of transaction.
(5) Stocks received or
shipped by respondent financial institution—including the following
information:
(i) Name of corporation;
(ii) Type of stock;
(iii) Certificate number;
(iv) Number of shares;
(v) Date of certificate;
(vi) Name of registered
holder;
(vii) Amount
of transaction.
(6) Bonds received or shipped by respondent
financial institution—including the following information:
(i) Name of issuer;
(ii) Bond number;
(iii) Type of bond series;
(iv) Date issued;
(v) Due date;
(vi) Rate of interest;
(vii) Amount of transaction;
(viii) Name of registered
holder.
(7) Certificates of deposit received or shipped by respondent financial
institution—including the following information:
(i) Name
and address of issuer;
(ii) Date issued;
(iii) Dollar amount;
(iv) Name of registered holder;
(v) Due date;
(vi) Rate of interest;
(vii) Certificate number;
(viii) Name and address
of issuing agent.
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(c) Scope of reports. In issuing regulations
as provided in paragraph (a) of this section, the Secretary will prescribe:
(1) A reasonable classification
of financial institutions subject to or exempt from a reporting requirement;
(2) A foreign country
to which a reporting requirement applies if the Secretary decides that applying
the requirement to all foreign countries is unnecessary or undesirable;
(3) The magnitude of
transactions subject to a reporting requirement; and
(4) The kind of transaction subject to
or exempt from a reporting requirement.
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(d) Form of reports. Regulations
issued pursuant to paragraph (a) of this section may prescribe the
manner in which the information is to be reported. However, the Secretary
may authorize a designated financial institution to report in a different
manner if the institution demonstrates to the Secretary that the form
of the required report is unnecessarily burdensome on the institution
as prescribed; that a report in a different form will provide all
the information the Secretary deems necessary; and that submission
of the information in a different manner will not unduly hinder the
effective administration of this chapter.
3-1702.99
(e) Limitations.
(1) In issuing regulations under paragraph
(a) of this section, the Secretary shall consider the need to avoid
impeding or controlling the export or import of monetary instruments
and the need to avoid burdening unreasonably a person making a transaction
with a foreign financial agency.
(2) The Secretary shall not issue a regulation
under paragraph (a) of this section for the purpose of obtaining individually
identifiable account information concerning a customer, as defined
by the Right to Financial Privacy Act (12 U.S.C. 3401 et seq.), where that customer is already the subject of an ongoing investigation
for possible violation of the Currency and Foreign Transactions Reporting
Act, or is known by the Secretary to be the subject of an investigation
for possible violation of any other Federal law.
(3) The Secretary may issue a regulation
pursuant to paragraph (a) of this section requiring a financial institution
to report transactions completed prior to the date it received notice
of the reporting requirement. However, with respect to completed transactions,
a financial institution may be required to provide information only
from records required to be maintained pursuant to the requirements
of this chapter, or any other provision of state or Federal law, or
otherwise maintained in the regular course of business.
