(a)(1) If the Secretary of the
Treasury finds, upon the Secretary’s own initiative or at the request
of an appropriate Federal or State law enforcement official, that
reasonable grounds exist for concluding that additional recordkeeping
and/or reporting requirements are necessary to carry out the purposes
of this chapter or to prevent persons from evading the reporting/recordkeeping
requirements of this chapter, the Secretary may issue an order requiring
any domestic financial institution or group of domestic financial
institutions, or any domestic nonfinancial trade or business or group
of domestic nonfinancial trades or businesses, in a geographic area,
and any other person participating in the type of transaction, to
file a report in the manner and to the extent specified in such order.
The order shall contain such information as the Secretary may describe
concerning any transaction in which such financial institution or
group of domestic financial institutions, or domestic nonfinancial
trade or business or group of domestic nonfinancial trades or businesses
is involved for the payment, receipt, or transfer of funds (as the
Secretary may describe in such order) the total amounts or denominations
of which are equal to or greater than an amount which the Secretary
may prescribe.
(2)
The Secretary may, by regulation or order, require any depository
institution (as defined in section 3(c) of the Federal Deposit Insurance
Act)—
(i) To request any financial institution
or nonfinancial trade or business (other than a depository institution)
which engages in any reportable transaction with the depository
institution to provide the depository institution with a copy of any
report filed by the financial institution or nonfinancial trade or
business under the Title 31 provisions of the Bank Secrecy Act with
respect to any prior transaction (between such financial institution
or nonfinancial trade or business and any other person) which involved
any portion of the funds which are involved in the reportable transaction
with the depository institution; and
(ii) If no copy of any report described
in paragraph (a)(2)(i) of this section is received by the depository
institution in connection with any reportable transaction to which
paragraph (a)(2)(i) applies, to submit (in addition to any report
required under this subchapter with respect to the reportable transaction)
a written notice to the Secretary that the financial institution or
nonfinancial trade or business failed to provide any copy of such
report.
(3) For purposes of paragraph (a)(2) of this section, the term reportable
transaction means any transaction involving funds (as the Secretary
may describe in the regulation or order) the total amounts or denominations
of which are equal to or greater than an amount which the Secretary
may prescribe.
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(b) An order
issued under paragraph (a) of this section shall be directed to the
Chief Executive Officer of the financial institution or nonfinancial
trade or business and shall designate one or more of the following
categories of information to be reported: Each deposit, withdrawal,
exchange of funds or other payment or transfer, by, through or to
such financial institution specified in the order, which involves
all or any class of transactions in funds equal to or exceeding an
amount specified in the order.
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(c) In issuing
an order under paragraph (a) of this section, the Secretary will prescribe:
(1) The dollar amount of transactions subject
to the reporting requirement in the order;
(2) The type of transaction or transactions
subject to or exempt from a reporting requirement in the order;
(3) The appropriate form
for reporting the transactions required in the order;
(4) The address to which reports required
in the order are to be sent or from which they will be picked up;
(5) The starting and ending
dates by which such transactions specified in the order are to be
reported;
(6) The name
of a Treasury official to be contacted for any additional information
or questions;
(7) The
amount of time the reports and records of reports generated in response
to the order will have to be retained by the financial institution;
and
(8) Any other information
deemed necessary to carry out the purposes of the order.
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(d)(1) No order issued pursuant
to paragraph (a) of this section shall prescribe a reporting period
of more than 180 days unless renewed pursuant to the requirements
of paragraph (a).
(2)
Any revisions to an order issued under this section will not be effective
until made in writing by the Secretary.
(3) Unless otherwise specified in the order,
a bank receiving an order under this section may continue to use the
exemptions granted under section 1020.315 of this chapter prior to
the receipt of the order, but may not grant additional exemptions.
(4) For purposes of this
section, the term geographic area means any area in one or more States
of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, the United States Virgin Islands, Guam, the Commonwealth
of the Northern Mariana Islands, American Samoa, the Trust Territory
of the Pacific Islands, the territories and possessions of the United
States, and/or political subdivision or subdivisions thereof, as specified
in an order issued pursuant to paragraph (a) of this section.
(e) No financial institution or nonfinancial trade
or business or officer, director, employee, or agent of a financial
institution or nonfinancial trade or business subject to an order
under this section may disclose the existence of, or terms of, the order
to any person except as prescribed by the Secretary.
