(a) (1)
After July 7, 1987, each dealer in foreign exchange shall secure and
maintain a record of the taxpayer identification number of each person
for whom a transaction account is opened or a line of credit is extended
within 30 days after such account is opened or credit line extended.
Where a person is a non-resident alien, the dealer in foreign exchange
shall also record the person’s passport number or a description
of some other government document used to verify his identity. Where
the account or credit line is in the names of two or more persons,
the dealer in foreign exchange shall secure the taxpayer identification
number of a person having a financial interest in the account or credit
line. In the event that a dealer in foreign exchange has been unable
to secure the identification required within the 30-day period specified,
it shall nevertheless not be deemed to be in violation of this section
if:
(i) It has made
a reasonable effort to secure such identification, and
(ii) It maintains a list containing
the names, addresses, and account or credit line numbers of those
persons from whom it has been unable to secure such identification,
and makes the names, addresses, and account or credit line numbers
of those persons available to the Secretary as directed by him.
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(2) The 30-day period provided for
in paragraph (a)(1) of this section shall be extended where the person
opening the account or credit line has applied for a taxpayer identification
or social security number on Form SS-4 or SS-5, until such time as
the person maintaining the account or credit line has had a reasonable
opportunity to secure such number and furnish it to the dealer in
foreign exchange.
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(3) A taxpayer identification
number for an account or credit line required under paragraph (a)(1)
of this section need not be secured in the following instances:
(i) Accounts for public
funds opened by agencies and instrumentalities of Federal, state,
local or foreign governments,
(ii) Accounts for aliens who are—
(A) Ambassadors, ministers, career diplomatic
or consular officers, or
(B) Naval,
military or other attaches of foreign embassies, and legations, and
for members of their immediate families,
(iii) Accounts for aliens who are accredited
representatives to international organizations which are entitled
to enjoy privileges, exemptions, and immunities as an international
organization under the International Organizations Immunities Act
of December 29, 1945 (22 U.S.C. 288), and for the members of their
immediate families,
(iv) Aliens
temporarily residing in the United States for a period not to exceed
180 days,
(v) Aliens not engaged
in a trade or business in the United States who are attending a recognized
college or any training program, supervised or conducted by any agency
of the Federal Government, and
(vi) Unincorporated subordinate units of a tax exempt central organization
which are covered by a group exemption letter.
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(b) Each dealer in foreign exchange shall retain either the original
or a microfilm or other copy or reproduction of each of the following:
(1) Statements of accounts
from banks, including paid checks, charges or other debit entry memoranda,
deposit slips and other credit memoranda representing the entries
reflected on such statements;
(2)
Daily work records, including purchase and sales slips or other memoranda
needed to identify and reconstruct currency transactions with customers
and foreign banks;
(3) A record
of each exchange of currency involving transactions in excess of $1000,
including the name and address of the customer (and passport number
or taxpayer identification number unless received by mail or common
carrier) date and amount of the transaction and currency name, country,
and total amount of each foreign currency;
(4) Signature cards or other documents
evidencing signature authority over each deposit or security account,
containing the name of the depositor, street address, taxpayer identification
number (TIN) or employer identification number (EIN) and the signature
of the depositor or of a person authorized to sign on the account
(if customer accounts are maintained in a code name, a record of the
actual owner of the account);
(5)
Each item, including checks, drafts, or transfers of credit, of more
than $10,000 remitted or transferred to a person, account or place
outside the United States;
(6) A
record of each receipt of currency, other monetary instruments, investment
securities and checks, and of each transfer of funds or credit, or
more than $10,000 received on any one occasion directly and not through
a domestic financial institution, from any person, account or place
outside the United States;
(7) Records
prepared or received by a dealer in the ordinary course of business,
that would be needed to reconstruct an account and trace a check in
excess of $100 deposited in such account through its internal recordkeeping
system to its depository institution, or to supply a description of
a deposited check in excess of $100;
(8) A record maintaining the name, address and taxpayer identification
number, if available, of any person presenting a certificate of deposit
for payment, as well as a description of the instrument and date of
transaction;
(9) A system of books
and records that will enable the dealer in foreign exchange to prepare
an accurate balance sheet and income statement.
(c)
This section does not apply to banks that offer services in dealing
or changing currency to their customers as an adjunct to their regular
service.
