(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.
