(a) Each agent, agency, branch,
or office located within the United States of a bank is subject to
the requirements of this paragraph (a) with respect to a funds transfer
in the amount of $3,000 or more, and is required to retain either
the original or a copy or reproduction of each of the following:
(1) Recordkeeping requirements.
(i) For each payment order
that it accepts as an originator’s bank, a bank shall obtain and retain
either the original or a copy, or electronic record of the following
information relating to the payment order:
(A) The name and
address of the originator;
(B) The amount of the payment order;
(C) The execution date of the payment order;
(D) Any payment instructions
received from the originator with the payment order;
(E) The identity of the beneficiary’s bank;
and
(F) As many of the
following items as are received with the payment order:
1(1) The name and address of the beneficiary;
(2) The account number of the beneficiary;
and
(3) Any other
specific identifier of the beneficiary.
(ii) For each payment
order that it accepts as an intermediary bank, a bank shall retain
either the original or a copy, or electronic record of the payment
order.
(iii) For
each payment order that it accepts as a beneficiary’s bank, a bank
shall retain either the original or a copy, or electronic record of
the payment order.
3-1711.71
(2) Originators
other than established customers. In the case of a payment order
from an originator that is not an established customer, in addition
to obtaining and retaining the information required in paragraph (a)(1)(i)
of this section:
(i) If the payment order is made in
person, prior to acceptance the originator’s bank shall verify the
identity of the person placing the payment order. If it accepts the
payment order, the originator’s bank shall obtain and retain a record
of the name and address, the type of identification reviewed, the
number of the identification document (e.g., driver’s license), as
well as a record of the person’s taxpayer identification number (e.g.,
social security or employer identification number) or, if none, alien
identification number or passport number and country of issuance,
or a notation in the record of the lack thereof. If the originator’s
bank has knowledge that the person placing the payment order is not
the originator, the originator’s bank shall obtain and retain a record
of the originator’s taxpayer identification number (e.g., social security
or employer identification number) or, if none, alien identification
number or passport number and country of issuance, if known by the
person placing the order, or a notation in the record of the lack
thereof.
(ii) If
the payment order accepted by the originator’s bank is not made in
person, the originator’s bank shall obtain and retain a record of
name and address of the person placing the payment order, as well
as the person’s taxpayer identification number (e.g., social security
or employer identification number) or, if none, alien identification
number or passport number and country of issuance, or a notation in
the record of the lack thereof, and a copy or record of the method
of payment (e.g., check or credit card transaction) for the funds
transfer. If the originator’s bank has knowledge that the person placing
the payment order is not the originator, the originator’s bank shall
obtain and retain a record of the originator’s taxpayer identification
number (e.g., social security or employer identification number) or,
if none, alien identification number or passport number
and country of issuance, if known by the person placing the order,
or a notation in the record of the lack thereof.
3-1711.72
(3) Beneficiaries other than established customers. For each payment
order that it accepts as a beneficiary’s bank for a beneficiary that
is not an established customer, in addition to obtaining and retaining
the information required in paragraph (a)(1)(iii) of this section:
(i) If the proceeds are delivered in person to the beneficiary or
its representative or agent, the beneficiary’s bank shall verify the
identity of the person receiving the proceeds and shall obtain and
retain a record of the name and address, the type of identification
reviewed, and the number of the identification document (e.g., driver’s
license), as well as a record of the person’s taxpayer identification
number (e.g., social security or employer identification number) or,
if none, alien identification number or passport number and country
of issuance, or a notation in the record of the lack thereof. If the
beneficiary’s bank has knowledge that the person receiving the proceeds
is not the beneficiary, the beneficiary’s bank shall obtain and retain
a record of the beneficiary’s name and address, as well as the beneficiary’s
taxpayer identification number (e.g., social security or employer
identification number) or, if none, alien identification number or
passport number and country of issuance, if known by the person receiving
the proceeds, or a notation in the record of the lack thereof.
(ii) If the proceeds
are delivered other than in person, the beneficiary’s bank shall retain
a copy of the check or other instrument used to effect payment, or
the information contained thereon, as well as the name and address
of the person to which it was sent.
3-1711.73
(4) Retrievability. The information that an originator’s bank must
retain under paragraphs (a)(1)(i) and (a)(2) of this section shall
be retrievable by the originator’s bank by reference to the name of
the originator. If the originator is an established customer of the
originator’s bank and has an account used for funds transfers, then
the information also shall be retrievable by account number. The information
that a beneficiary’s bank must retain under paragraphs (a)(1)(iii)
and (a)(3) of this section shall be retrievable by the beneficiary’s
bank by reference to the name of the beneficiary. If the beneficiary
is an established customer of the beneficiary’s bank and has an account
used for funds transfers, then the information also shall be retrievable
by account number. This information need not be retained in any particular
manner, so long as the bank is able to retrieve the information required
by this paragraph, either by accessing funds transfer records directly
or through reference to some other record maintained by the bank.
3-1711.74
(5) Verification. Where verification is required under paragraphs
(a)(2) and (a)(3) of this section, a bank shall verify a person’s
identity by examination of a document (other than a bank signature
card), preferably one that contains the person’s name, address, and
photograph, that is normally acceptable by financial institutions
as a means of identification when cashing checks for persons other
than established customers. Verification of the identity of an individual
who indicates that he or she is an alien or is not a resident of the
United States may be made by passport, alien identification card,
or other official document evidencing nationality or residence (e.g.,
a foreign driver’s license with indication of home address).
3-1711.75
(6) Exceptions. The following funds transfers are not subject to
the requirements of this section:
(i) Funds transfers where
the originator and beneficiary are any of the following:
(A) A bank;
(B) A wholly owned domestic
subsidiary of a bank chartered in the United States;
(C) A broker or dealer in securities;
(D) A wholly owned domestic subsidiary
of a broker or dealer in securities;
(E) A futures commission merchant or an introducing
broker in commodities;
(F) A wholly owned domestic subsidiary of a futures commission merchant
or an introducing broker in commodities;
(G) The United States;
(H) A state or local government;
(I) A Federal, State or local
government agency or instrumentality; or
(J) A mutual fund; and
(ii) Funds transfers where
both the originator and the beneficiary are the same person and the
originator’s bank and the beneficiary’s bank are the same bank.
(b) (1) With respect to each certificate
of deposit sold or redeemed after May 31, 1978, and before October
1, 2003, or each deposit or share account opened with a bank after
June 30, 1972, and before October 1, 2003, a bank shall, within 30
days from the date such a transaction occurs or an account is opened,
secure and maintain a record of the taxpayer identification number
of the customer involved; or where the account or certificate is in
the names of two or more persons, the bank shall secure the taxpayer
identification number of a person having a financial interest in the
certificate or account. In the event that a bank has been unable to
secure, within the 30-day period specified, the required identification,
it shall nevertheless not be deemed to be in violation of this section
if it has made a reasonable effort to secure such identification,
and it maintains a list containing the names, addresses, and account
numbers of those persons from whom it has been unable to secure such
identification, and makes the names, addresses, and account numbers
of those persons available to the Secretary as directed by him. A
bank acting as an agent for another person in the purchase or redemption
of a certificate of deposit issued by another bank is responsible
for obtaining and recording the required taxpayer identification,
as well as for maintaining the records referred to in paragraphs (c)(11)
and (12) of this section. The issuing bank can satisfy the recordkeeping
requirement by recording the name and address of the agent together
with a description of the instrument and the date of the transaction.
Where a person is a non-resident alien, the bank shall also record
the person’s passport number or a description of some other government
document used to verify his identity.
(2) The 30-day period provided for in paragraph
(b)(1) of this section shall be extended where the person opening
the account 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 has had a reasonable opportunity to secure such number
and furnish it to the bank.
(3) A taxpayer identification number required
under paragraph (b)(1) of this section need not be secured for accounts
or transactions with the following:
(i) Agencies and instrumentalities
of Federal, State, local or foreign governments;
(ii) Judges, public officials, or clerks
of courts of record as custodians of funds in controversy or under
the control of the court;
(iii) Aliens who are ambassadors, ministers,
career diplomatic or consular officers, or naval, military or other
attaches of foreign embassies and legations, and for the members of
their immediate families;
(iv) Aliens who are accredited representatives
of international organizations which are entitled to enjoy privileges,
exemptions and immunities as an international organization under the
International Organization Immunities Act of December 29, 1945 (22
U.S.C. 288), and the members of their immediate families;
(v) Aliens temporarily
residing in the United States for a period not to exceed
180 days;
(vi) Aliens
not engaged in a trade or business in the United States who are attending
a recognized college or university or any training program, supervised
or conducted by any agency of the Federal Government;
(vii) Unincorporated subordinate units
of a tax exempt central organization which are covered by a group
exemption letter,
(viii) A person under 18 years of age with respect to an account
opened as a part of a school thrift savings program, provided the
annual interest is less than $10;
(ix) A person opening a Christmas club,
vacation club and similar installment savings programs, provided the
annual interest is less than $10; and
(x) Non-resident aliens who are not
engaged in a trade or business in the United States.
(4) In instances described
in paragraphs (b)(3)(viii) and (ix) of this section, the bank shall,
within 15 days following the end of any calendar year in which the
interest accrued in that year is $10 or more use its best effort to
secure and maintain the appropriate taxpayer identification number
or application form therefor.
(5) The rules and regulations issued by
the Internal Revenue Service under section 6109 of the Internal Revenue
Code of 1954 shall determine what constitutes a taxpayer identification
number and whose number shall be obtained in the case of an account
maintained by one or more persons.
(c)
Each bank shall, in addition, retain either the original or a copy
or reproduction of each of the following:
(1) Each document granting signature authority
over each deposit or share account, including any notations, if such
are normally made, of specific identifying information verifying the
identity of the signer (such as a driver’s license number or credit
card number);
(2) Each
statement, ledger card or other record on each deposit or share account,
showing each transaction in, or with respect to, that account;
(3) Each check, clean
draft, or money order drawn on the bank or issued and payable by it,
except those drawn for $100 or less or those drawn on accounts which
can be expected to have drawn on them an average of at least 100 checks
per month over the calendar year or on each occasion on which such
checks are issued, and which are:
(i) Dividend checks,
(ii) Payroll checks,
(iii) Employee benefit
checks,
(iv) Insurance
claim checks,
(v)
Medical benefit checks,
(vi) Checks drawn on government agency
accounts,
(vii) Checks
drawn by brokers or dealers in securities,
(viii) Checks drawn on fiduciary accounts,
(ix) Checks drawn on
other financial institutions, or
(x) Pension or annuity checks;
(4) Each item in excess
of $100 (other than bank charges or periodic charges made pursuant
to agreement with the customer), comprising a debit to a customer’s
deposit or share account, not required to be kept, and not specifically
exempted, under paragraph (c)(3) of this section;
(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 remittance
or transfer of funds, or of currency, other monetary instruments,
checks, investment securities, or credit, of more than $10,000 to
a person, account or place outside the United States;
(7) Each check or draft in
an amount in excess of $10,000 drawn on or issued by a foreign bank
which the domestic bank has paid or presented to a nonbank drawee
for payment;
(8) Each
item, including checks, drafts or transfers of credit, of more than
$10,000 received directly and not through a domestic financial institution,
by letter, cable or any other means, from a bank, broker or dealer
in foreign exchange outside the United States;
(9) A record of each receipt of currency,
other monetary instruments, investment securities or checks, and of each
transfer of funds or credit, of more than $10,000 received on any
one occasion directly and not through a domestic financial institution,
from a bank, broker or dealer in foreign exchange outside the United
States; and
(10) Records
prepared or received by a bank in the ordinary course of business,
which would be needed to reconstruct a transaction account and to
trace a check in excess of $100 deposited in such account through
its domestic processing system or to supply a description of a deposited
check in excess of $100. This subparagraph shall be applicable only
with respect to demand deposits.
(11) A record containing the name, address,
and taxpayer identification number as determined under section 6109
of the Internal Revenue Code of 1986, if available, of the purchaser
of each certificate of deposit, as well as a description of the instrument,
a notation of the method of payment, and the date of the transaction.
(12) A record containing
the name, address and taxpayer identification number as determined
under section 6109 of the Internal Revenue Code of 1986, if available,
of any person presenting a certificate of deposit for payment, as
well as a description of the instrument and the date of the transaction.
(13) Each deposit slip
or credit ticket reflecting a transaction in excess of $100 or the
equivalent record for direct deposit or other wire transfer deposit
transactions. The slip or ticket shall record the amount of any currency
involved.
