Each financial institution shall
retain either the original or a copy or reproduction of each of the
following:
(a) A record of each extension of credit
in an amount in excess of $10,000, except an extension of credit secured
by an interest in real property, which record shall contain the name
and address of the person to whom the extension of credit is made,
the amount thereof, the nature or purpose thereof, and the date thereof;
(b) A record of each advice, request, or instruction
received or given regarding any transaction resulting (or intended
to result and later canceled if such a record is normally made) in
the transfer of currency or other monetary instruments, funds, checks,
investment securities, or credit, of more than $10,000 to or from
any person, account, or place outside the United States.
(c) A record of each advice, request, or instruction
given to another financial institution or other person located within
or without the United States, regarding a transaction intended to
result in the 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.
(d) A record of such information for such period of time
as the Secretary may require in an order issued under section 1010.370(a),
not to exceed five years.
3-1703.11
(e) Nonbank financial institutions. Each agent,
agency, branch, or office located within the United States of a financial
institution other than a bank is subject to the requirements of this
paragraph (e) with respect to a transmittal of funds in the amount
of $3,000 or more:
(1) Recordkeeping
requirements.
(i) For each transmittal order that
it accepts as a transmittor’s financial institution, a financial institution
shall obtain and retain either the original or a microfilm, other
copy, or electronic record of the following information relating to
the transmittal order:
(A) The name and address of the transmittor;
(B) The amount of the transmittal
order;
(C) The execution
date of the transmittal order;
(D) Any payment instructions received from
the transmittor with the transmittal order;
(E) The identity of the recipient’s financial
institution;
(F) As many
of the following items as are received with the transmittal order:
1(1) The name and address of the recipient;
(2) The account number of the recipient;
and
(3) Any other
specific identifier of the recipient; and
(G) Any form relating to the
transmittal of funds that is completed or signed by the person placing
the transmittal order.
(ii) For each transmittal order that
it accepts as an intermediary financial institution, a financial institution
shall retain either the original or a microfilm, other copy, or electronic
record of the transmittal order.
(iii) For each transmittal order that
it accepts as a recipient’s financial institution, a financial institution
shall retain either the original or a microfilm, other copy, or electronic
record of the transmittal order.
3-1703.12
(2) Transmittors other than established customers. In the case of
a transmittal order from a transmittor that is not an established
customer, in addition to obtaining and retaining the information required
in paragraph (e)(1)(i) of this section:
(i) If the transmittal
order is made in person, prior to acceptance the transmittor’s financial
institution shall verify the identity of the person placing the transmittal
order. If it accepts the transmittal order, the transmittor’s financial
institution 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 transmittor’s financial institution has
knowledge that the person placing the transmittal order is not the
transmittor, the transmittor’s financial institution shall obtain
and retain a record of the transmittor’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 transmittal order accepted by the transmittor’s financial
institution is not made in person, the transmittor’s financial institution
shall obtain and retain a record of the name and address of the person
placing the transmittal 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 transmittal of funds. If the transmittor’s financial
institution has knowledge that the person placing the transmittal
order is not the transmittor, the transmittor’s financial institution
shall obtain and retain a record of the transmittor’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.
3-1703.13
(3) Recipients other than established customers. For each transmittal
order that it accepts as a recipient’s financial institution for a
recipient that is not an established customer, in addition to obtaining
and retaining the information required in paragraph (e)(1)(iii) of
this section:
(i) If the proceeds are delivered in
person to the recipient or its representative or agent, the recipient’s
financial institution 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 recipient’s financial institution
has knowledge that the person receiving the proceeds is not the recipient,
the recipient’s financial institution shall obtain and retain a record
of the recipient’s name and address, as well as the recipient’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 recipient’s financial institution 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.
3-1703.14
(4) Retrievability. The information that a transmittor’s financial
institution must retain under paragraphs (e)(1)(i) and (e)(2) of this
section shall be retrievable by the transmittor’s financial institution
by reference to the name of the transmittor. If the transmittor is
an established customer of the transmittor’s financial institution and has
an account used for transmittals of funds, then the information also
shall be retrievable by account number. The information that a recipient’s
financial institution must retain under paragraphs (e)(1)(iii) and
(e)(3) of this section shall be retrievable by the recipient’s financial
institution by reference to the name of the recipient. If the recipient
is an established customer of the recipient’s financial institution
and has an account used for transmittals of funds, then the information
also shall be retrievable by account number. This information need
not be retained in any particular manner, so long as the financial
institution is able to retrieve the information required by this paragraph,
either by accessing transmittal of funds records directly or through
reference to some other record maintained by the financial institution.
3-1703.15
(5) Verification. Where verification is required under paragraphs
(e)(2) and (e)(3) of this section, a financial institution shall verify
a person’s identity by examination of a document (other than a customer
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).
3-1703.16
(6) Exceptions. The following transmittals of funds are not subject
to the requirements of this section:
(i) Transmittals of
funds where the transmittor and the recipient 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; or
(I) A Federal, State or local
government agency or instrumentality; or
(J) A mutual fund; and
(ii) Transmittals of
funds where both the transmittor and the recipient are the same person
and the transmittor’s financial institution and the recipient’s financial
institution are the same broker or dealer in securities.
3-1703.17
(f) Any transmittor’s financial institution or intermediary
financial institution located within the United States shall include
in any transmittal order for a transmittal of funds in the amount
of $3,000 or more, information as required in this paragraph (f):
(1) A transmittor’s financial
institution shall include in a transmittal order, at the time it is
sent to a receiving financial institution, the following information:
(i) The name and, if the payment is ordered from an account, the
account number of the transmittor;
(ii) The address of the transmittor,
except for a transmittal order through Fedwire until such time as
the bank that sends the order to the Federal Reserve Bank completes
its conversion to the expanded Fedwire format;
(iii) The amount of the transmittal
order;
(iv) The
execution date of the transmittal order;
(v) The identity of the recipient’s
financial institution;
(vi) As many of the following items
as are received with the transmittal order:
2(A) The name and address of the
recipient;
(B) The account
number of the recipient;
(C) Any other specific identifier of the recipient; and
(vii) Either the name
and address or numerical identifier of the transmittor’s financial
institution.
3-1703.18
(2) A receiving financial institution that
acts as an intermediary financial institution, if it accepts a transmittal
order, shall include in a corresponding transmittal order at the time
it is sent to the next receiving financial institution, the following
information, if received from the sender:
(i) The name and the
account number of the transmittor;
(ii) The address of the transmittor,
except for a transmittal order through Fedwire until such time as
the bank that sends the order to the Federal Reserve Bank completes
its conversion to the expanded Fedwire format;
(iii) The amount of the transmittal
order;
(iv) The execution
date of the transmittal order;
(v) The identity of the recipient’s
financial institution;
(vi) As many of the following items as are received with the transmittal
order:
3(A) The name and address of the
recipient;
(B) The account
number of the recipient;
(C) Any other specific identifier of the recipient; and
(vii) Either the name
and address or numerical identifier of the transmittor’s financial
institution.
3-1703.19
(3) Safe harbor
for transmittals of funds prior to conversion to the expanded Fedwire
message format. The following provisions apply to transmittals
of funds effected through the Federal Reserve’s Fedwire funds transfer
system or otherwise by a financial institution before the bank that
sends the order to the Federal Reserve Bank or otherwise completes
its conversion to the expanded Fedwire message format.
(i) Transmittor’s financial institution. A
transmittor’s financial institution will be deemed to be in compliance
with the provisions of paragraph (f)(1) of this section if it:
(A) Includes in the transmittal order, at the time it is sent to
the receiving financial institution, the information specified in
paragraphs (f)(1)(iii) through (v), and the information specified
in paragraph (f)(1)(vi) of this section to the extent that such information
has been received by the financial institution, and
(B) Provides the information specified in
paragraphs (f)(1)(i), (ii) and (vii) of this section to a financial
institution that acted as an intermediary financial institution or
recipient’s financial institution in connection with the transmittal
order, within a reasonable time after any such financial institution
makes a request therefor in connection with the requesting financial
institution’s receipt of a lawful request for such information from
a Federal, State, or local law enforcement or financial regulatory
agency, or in connection with the requesting financial institution’s
own Bank Secrecy Act compliance program.
3-1703.191
(ii) Intermediary financial institution. An intermediary
financial institution will be deemed to be in compliance with the
provisions of paragraph (f)(2) of this section if it:
(A) Includes in
the transmittal order, at the time it is sent to the receiving financial
institution, the information specified in paragraphs (f)(2)(iii) through
(f)(2)(vi) of this section, to the extent that such information has
been received by the intermediary financial institution; and
(B) Provides the information
specified in paragraphs (f)(2)(i), (ii) and (vii) of this section,
to the extent that such information has been received by the intermediary
financial institution, to a financial institution that acted as an
intermediary financial institution or recipient’s financial institution
in connection with the transmittal order, within a reasonable time
after any such financial institution makes a request therefor in connection
with the requesting financial institution’s receipt of a lawful request
for such information from a Federal, State, or local law enforcement
or regulatory agency, or in connection with the requesting financial
institution’s own Bank Secrecy Act compliance program.
(iii) Obligation of requesting financial institution. Any information requested under paragraph (f)(3)(i)(B) or (f)(3)(ii)(B)
of this section shall be treated by the requesting institution, once
received, as if it had been included in the transmittal order to which
such information relates.
3-1703.192
(4) Exceptions. The requirements of this paragraph (f) shall not apply to transmittals
of funds that are listed in paragraph (e)(6) of this section or section
1020.410(a)(6) of this chapter.
