[Code of Federal Regulations]
[Title 31, Volume 1]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR103.22]

[Page 356-361]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
                       DEPARTMENT OF THE TREASURY
 
PART 103--FINANCIAL RECORDKEEPING AND REPORTING OF CURRENCY AND FOREIGN 
TRANSACTIONS--Table of Contents
 
                 Subpart B--Reports Required To Be Made
 
Sec. 103.22  Reports of transactions in currency.

    (a) General. This section sets forth the rules for the reporting by 
financial institutions of transactions in currency. The reporting 
obligations themselves are stated in paragraph (b) of this section. The 
reporting rules relating to aggregation are stated in paragraph (c) of 
this section. Rules permitting banks to exempt certain transactions from 
the reporting obligations appear in paragraph (d) of this section.
    (b) Filing obligations--(1) Financial institutions other than 
casinos. Each financial institution other than a casino shall file a 
report of each deposit, withdrawal, exchange of currency or other 
payment or transfer, by, through, or to such financial institution which 
involves a transaction in currency of more than $10,000, except as 
otherwise provided in this section. In the case of the Postal Service, 
the obligation contained in the preceding sentence shall not apply to 
payments or transfers made solely in connection with the purchase of 
postage or philatelic products.
    (2) Casinos. Each casino shall file a report of each transaction in 
currency, involving either cash in or cash out, of more than $10,000.
    (i) Transactions in currency involving cash in include, but are not 
limited to:
    (A) Purchases of chips, tokens, and plaques;
    (B) Front money deposits;
    (C) Safekeeping deposits;
    (D) Payments on any form of credit, including markers and counter 
checks;
    (E) Bets of currency;
    (F) Currency received by a casino for transmittal of funds through 
wire transfer for a customer;
    (G) Purchases of a casino's check; and
    (H) Exchanges of currency for currency, including foreign currency.
    (ii) Transactions in currency involving cash out include, but are 
not limited to:
    (A) Redemptions of chips, tokens, and plaques;
    (B) Front money withdrawals;
    (C) Safekeeping withdrawals;
    (D) Advances on any form of credit, including markers and counter 
checks;
    (E) Payments on bets, including slot jackpots;
    (F) Payments by a casino to a customer based on receipt of funds 
through wire transfer for credit to a customer;
    (G) Cashing of checks or other negotiable instruments;
    (H) Exchanges of currency for currency, including foreign currency; 
and
    (I) Reimbursements for customers' travel and entertainment expenses 
by the casino.
    (c) Aggregation--(1) Multiple branches. A financial institution 
includes all of its domestic branch offices, and any recordkeeping 
facility, wherever located, that contains records relating to the 
transactions of the institution's domestic offices, for purposes of this 
section's reporting requirements.
    (2) Multiple transactions--general. In the case of financial 
institutions other than casinos, for purposes of this section, multiple 
currency transactions shall be treated as a single transaction if the 
financial institution has knowledge that they are by or on behalf of any 
person and result in either cash in or cash out totaling more than 
$10,000 during any one business day (or in the case of the Postal 
Service, any one day). Deposits made at night or over a weekend or 
holiday shall be treated as if received on the next business day 
following the deposit.
    (3) Multiple transactions--casinos. In the case of a casino, 
multiple currency

[[Page 357]]

transactions shall be treated as a single transaction if the casino has 
knowledge that they are by or on behalf of any person and result in 
either cash in or cash out totaling more than $10,000 during any gaming 
day. For purposes of this paragraph (c)(3), a casino shall be deemed to 
have the knowledge described in the preceding sentence, if: any sole 
proprietor, partner, officer, director, or employee of the casino, 
acting within the scope of his or her employment, has knowledge that 
such multiple currency transactions have occurred, including knowledge 
from examining the books, records, logs, information retained on 
magnetic disk, tape or other machine-readable media, or in any manual 
system, and similar documents and information, which the casino 
maintains pursuant to any law or regulation or within the ordinary 
course of its business, and which contain information that such multiple 
currency transactions have occurred.
    (d) Transactions of exempt persons--(1) General. No bank is required 
to file a report otherwise required by paragraph (b) of this section 
with respect to any transaction in currency between an exempt person and 
such bank, or, to the extent provided in paragraph (d)(6)(vi) of this 
section, between such exempt person and other banks affiliated with such 
bank. In addition, a non-bank financial institution is not required to 
file a report otherwise required by paragraph (b) of this section with 
respect to a transaction in currency between the institution and a 
commercial bank. (A limitation on the exemption described in this 
paragraph (d)(1) is set forth in paragraph (d)(7) of this section.)
    (2) Exempt person. For purposes of this section, an exempt person 
is:
    (i) A bank, to the extent of such bank's domestic operations;
    (ii) A department or agency of the United States, of any State, or 
of any political subdivision of any State;
    (iii) Any entity established under the laws of the United States, of 
any State, or of any political subdivision of any State, or under an 
interstate compact between two or more States, that exercises 
governmental authority on behalf of the United States or any such State 
or political subdivision;
    (iv) Any entity, other than a bank, whose common stock or analogous 
equity interests are listed on the New York Stock Exchange or the 
American Stock Exchange or whose common stock or analogous equity 
interests have been designated as a Nasdaq National Market Security 
listed on the Nasdaq Stock Market (except stock or interests listed 
under the separate ``Nasdaq Small-Cap Issues'' heading), provided that, 
for purposes of this paragraph (d)(2)(iv), a person that is a financial 
institution, other than a bank, is an exempt person only to the extent 
of its domestic operations;
    (v) Any subsidiary, other than a bank, of any entity described in 
paragraph (d)(2)(iv) of this section (a ``listed entity'') that is 
organized under the laws of the United States or of any State and at 
least 51 percent of whose common stock or analogous equity interest is 
owned by the listed entity, provided that, for purposes of this 
paragraph (d)(2)(v), a person that is a financial institution, other 
than a bank, is an exempt person only to the extent of its domestic 
operations;
    (vi) To the extent of its domestic operations and only with respect 
to transactions conducted through its exemptible accounts, any other 
commercial enterprise (for purposes of this paragraph (d), a ``non-
listed business''), other than an enterprise specified in paragraph 
(d)(6)(viii) of this section, that:
    (A) Has maintained a transaction account, as defined in paragraph 
(d)(6)(ix) of this section, at the bank for at least 12 months;
    (B) Frequently engages in transactions in currency with the bank in 
excess of $10,000; and
    (C) Is incorporated or organized under the laws of the United States 
or a State, or is registered as and eligible to do business within the 
United States or a State; or
    (vii) With respect solely to withdrawals for payroll purposes from 
existing exemptible accounts, any other person (for purposes of this 
paragraph (d), a ``payroll customer'') that:
    (A) Has maintained a transaction account, as defined in paragraph 
(d)(6)(ix) of this section, at the bank for at least 12 months;

[[Page 358]]

    (B) Operates a firm that regularly withdraws more than $10,000 in 
order to pay its United States employees in currency; and
    (C) Is incorporated or organized under the laws of the United States 
or a State, or is registered as and eligible to do business within the 
United States or a State.
    (3) Initial designation of exempt persons--(i) General. A bank must 
designate each exempt person with which it engages in transactions in 
currency by the close of the 30-day period beginning after the day of 
the first reportable transaction in currency with that person sought to 
be exempted from reporting under the terms of this paragraph (d). Except 
as provided in paragraph (d)(3)(ii) of this section, designation by a 
bank of an exempt person shall be made by a single filing of Treasury 
Form TD F 90-22.53. (A bank is not required to file a Treasury Form TD F 
90-22.53 with respect to the transfer of currency to or from any of the 
twelve Federal Reserve Banks.) The designation must be made separately 
by each bank that treats the person in question as an exempt person, 
except as provided in paragraph (d)(6)(vi) of this section. The 
designation requirements of this paragraph (d)(3) apply whether or not 
the particular exempt person to be designated has previously been 
treated as exempt from the reporting requirements of prior 
Sec. 103.22(a) under the rules contained in 31 CFR 103.22(a) through 
(g), as in effect on October 20, 1998 (see 31 CFR Parts 0 to 199 revised 
as of July 1, 1998). A special transitional rule, which extends the time 
for initial designation for customers that have been previously treated 
as exempt under such prior rules, is contained in paragraph (d)(11) of 
this section.
    (ii) Special rules for banks. When designating another bank as an 
exempt person, a bank must either make the filing required by paragraph 
(d)(3)(i) of this section or file, in such a format and manner as FinCEN 
may specify, a current list of its domestic bank customers. In the event 
that a bank files its current list of domestic bank customers, the bank 
must make the filing as described in paragraph (d)(3)(i) of this section 
for each bank that is a new customer and for which an exemption is 
sought under this paragraph (d).
    (4) Annual review. The information supporting each designation of an 
exempt person, and the application to each account of an exempt person 
described in paragraphs (d)(2)(vi) or (d)(2)(vii) of this section of the 
monitoring system required to be maintained by paragraph (d)(9)(ii) of 
this section, must be reviewed and verified at least once each year.
    (5) Biennial filing with respect to certain exempt persons--(i) 
General. A biennial filing, as described in paragraph (d)(5)(ii) of this 
section, is required for continuation of the treatment as an exempt 
person of a customer described in paragraph (d)(2)(vi) or (vii) of this 
section. No biennial filing is required for continuation of the 
treatment as an exempt person of a customer described in paragraphs 
(d)(2)(i) through (v) of this section.
    (ii) Non-listed businesses and payroll customers. The designation of 
a non-listed business or a payroll customer as an exempt person must be 
renewed biennially, beginning on March 15 of the second calendar year 
following the year in which the first designation of such customer as an 
exempt person is made, and every other March 15 thereafter, on Treasury 
Form TD F 90-22.53. Biennial renewals must include a statement 
certifying that the bank's system of monitoring the transactions in 
currency of an exempt person for suspicious activity, required to be 
maintained by paragraph (d)(9)(ii) of this section, has been applied as 
necessary, but at least annually, to the account of the exempt person to 
whom the biennial renewal applies. Biennial renewals also must include 
information about any change in control of the exempt person involved of 
which the bank knows (or should know on the basis of its records).
    (6) Operating rules--(i) General rule. Subject to the specific rules 
of this paragraph (d), a bank must take such steps to assure itself that 
a person is an exempt person (within the meaning of the applicable 
provision of paragraph (d)(2) of this section), to document the basis 
for its conclusions, and document its compliance, with the

[[Page 359]]

terms of this paragraph (d), that a reasonable and prudent bank would 
take and document to protect itself from loan or other fraud or loss 
based on misidentification of a person's status, and in the case of the 
monitoring system requirement set forth in paragraph (d)(9)(ii) of this 
section, such steps that a reasonable and prudent bank would take and 
document to identify suspicious transactions as required by paragraph 
(d)(9)(ii) of this section.
    (ii) Governmental departments and agencies. A bank may treat a 
person as a governmental department, agency, or entity if the name of 
such person reasonably indicates that it is described in paragraph 
(d)(2)(ii) or (d)(2)(iii) of this section, or if such person is known 
generally in the community to be a State, the District of Columbia, a 
tribal government, a Territory or Insular Possession of the United 
States, or a political subdivision or a wholly-owned agency or 
instrumentality of any of the foregoing. An entity generally exercises 
governmental authority on behalf of the United States, a State, or a 
political subdivision, for purposes of paragraph (d)(2)(iii) of this 
section, only if its authorities include one or more of the powers to 
tax, to exercise the authority of eminent domain, or to exercise police 
powers with respect to matters within its jurisdiction. Examples of 
entities that exercise governmental authority include, but are not 
limited to, the New Jersey Turnpike Authority and the Port Authority of 
New York and New Jersey.
    (iii) Stock exchange listings. In determining whether a person is 
described in paragraph (d)(2)(iv) of this section, a bank may rely on 
any New York, American or Nasdaq Stock Market listing published in a 
newspaper of general circulation, on any commonly accepted or published 
stock symbol guide, on any information contained in the Securities and 
Exchange Commission ``Edgar'' System, or on any information contained on 
an Internet World-Wide Web site or sites maintained by the New York 
Stock Exchange, the American Stock Exchange, or the National Association 
of Securities Dealers.
    (iv) Listed company subsidiaries. In determining whether a person is 
described in paragraph (d)(2)(v) of this section, a bank may rely upon:
    (A) Any reasonably authenticated corporate officer's certificate;
    (B) Any reasonably authenticated photocopy of Internal Revenue 
Service Form 851 (Affiliation Schedule) or the equivalent thereof for 
the appropriate tax year; or
    (C) A person's Annual Report or Form 10-K, as filed in each case 
with the Securities and Exchange Commission.
    (v) Aggregated accounts. In determining the qualification of a 
customer as a non-listed business or a payroll customer, a bank may 
treat all exemptible accounts of the customer as a single account. If a 
bank elects to treat all exemptible accounts of a customer as a single 
account, the bank must continue to treat such accounts consistently as a 
single account for purposes of determining the qualification of the 
customer as a non-listed business or payroll customer.
    (vi) Affiliated banks. The designation required by paragraph (d)(3) 
of this section may be made by a parent bank holding company or one of 
its bank subsidiaries on behalf of all bank subsidiaries of the holding 
company, so long as the designation lists each bank subsidiary to which 
the designation shall apply.
    (vii) Sole proprietorships. A sole proprietorship may be treated as 
a non-listed business if it otherwise meets the requirements of 
paragraph (d)(2)(vi) of this section, as applicable. In addition, a sole 
proprietorship may be treated as a payroll customer if it otherwise 
meets the requirements of paragraph (d)(2)(vii) of this section, as 
applicable.
    (viii) Ineligible businesses. A business engaged primarily in one or 
more of the following activities may not be treated as a non-listed 
business for purposes of this paragraph (d): serving as financial 
institutions or agents of financial institutions of any type; purchase 
or sale to customers of motor vehicles of any kind, vessels, aircraft, 
farm equipment or mobile homes; the practice of law, accountancy, or 
medicine; auctioning of goods; chartering or operation of ships, buses, 
or aircraft;

[[Page 360]]

gaming of any kind (other than licensed parimutuel betting at race 
tracks); investment advisory services or investment banking services; 
real estate brokerage; pawn brokerage; title insurance and real estate 
closing; trade union activities; and any other activities that may be 
specified by FinCEN. A business that engages in multiple business 
activities may be treated as a non-listed business so long as no more 
than 50% of its gross revenues is derived from one or more of the 
ineligible business activities listed in this paragraph (d)(6)(viii).
    (ix) Exemptible accounts of a non-listed business or payroll 
customer. The exemptible accounts of a non-listed business or payroll 
customer include transaction accounts and money market deposit accounts. 
However, money market deposit accounts maintained other than in 
connection with a commercial enterprise are not exemptible accounts. A 
transaction account, for purposes of this paragraph (d), is any account 
described in section 19(b)(1)(C) of the Federal Reserve Act, 12 U.S.C. 
461(b)(1)(C), and its implementing regulations (12 CFR part 204). A 
money market deposit account, for purposes of this paragraph (d), is any 
interest-bearing account that is described as a money market deposit 
account in 12 CFR 204.2(d)(2).
    (x) Documentation. The records maintained by a bank to document its 
compliance with and administration of the rules of this paragraph (d) 
shall be maintained in accordance with the provisions of Sec. 103.38.
    (7) Limitation on exemption. A transaction carried out by an exempt 
person as an agent for another person who is the beneficial owner of the 
funds that are the subject of a transaction in currency is not subject 
to the exemption from reporting contained in paragraph (d)(1) of this 
section.
    (8) Limitation on liability. (i) No bank shall be subject to penalty 
under this part for failure to file a report required by paragraph (b) 
of this section with respect to a transaction in currency by an exempt 
person with respect to which the requirements of this paragraph (d) have 
been satisfied, unless the bank:
    (A) Knowingly files false or incomplete information with respect to 
the transaction or the customer engaging in the transaction; or
    (B) Has reason to believe that the customer does not meet the 
criteria established by this paragraph (d) for treatment of the 
transactor as an exempt person or that the transaction is not a 
transaction of the exempt person.
    (ii) Subject to the specific terms of this paragraph (d), and absent 
any specific knowledge of information indicating that a customer no 
longer meets the requirements of an exempt person, a bank satisfies the 
requirements of this paragraph (d) to the extent it continues to treat 
that customer as an exempt person until the date of that customer's next 
periodic review, which, as required by paragraph (d)(4) of this section, 
shall occur no less than once each year.
    (iii) A bank that files a report with respect to a currency 
transaction by an exempt person rather than treating such person as 
exempt shall remain subject, with respect to each such report, to the 
rules for filing reports, and the penalties for filing false or 
incomplete reports that are applicable to reporting of transactions in 
currency by persons other than exempt persons.
    (9) Obligations to file suspicious activity reports and maintain 
system for monitoring transactions in currency. (i) Nothing in this 
paragraph (d) relieves a bank of the obligation, or reduces in any way 
such bank's obligation, to file a report required by Sec. 103.21 with 
respect to any transaction, including any transaction in currency that a 
bank knows, suspects, or has reason to suspect is a transaction or 
attempted transaction that is described in Sec. 103.21(a)(2)(i), (ii), 
or (iii), or relieves a bank of any reporting or recordkeeping 
obligation imposed by this part (except the obligation to report 
transactions in currency pursuant to this section to the extent provided 
in this paragraph (d)). Thus, for example, a sharp increase from one 
year to the next in the gross total of currency transactions made by an 
exempt customer, or similarly anomalous transaction trends or patterns, 
may trigger the obligations of a bank under Sec. 103.21.
    (ii) Consistent with its annual review obligations under paragraph 
(d)(4)of this section, a bank shall establish and

[[Page 361]]

maintain a monitoring system that is reasonably designed to detect, for 
each account of a non-listed business or payroll customer, those 
transactions in currency involving such account that would require a 
bank to file a suspicious transaction report. The statement in the 
preceding sentence with respect to accounts of non-listed and payroll 
customers does not limit the obligation of banks generally to take the 
steps necessary to satisfy the terms of paragraph (d)(9)(i) of this 
section and Sec. 103.21 with respect to all exempt persons.
    (10) Revocation. The status of any person as an exempt person under 
this paragraph (d) may be revoked by FinCEN by written notice, which may 
be provided by publication in the Federal Register in appropriate 
situations, on such terms as are specified in such notice. Without any 
action on the part of the Treasury Department and subject to the 
limitation on liability contained in paragraph (d)(8)(ii) of this 
section:
    (i) The status of an entity as an exempt person under paragraph 
(d)(2)(iv) of this section ceases once such entity ceases to be listed 
on the applicable stock exchange; and
    (ii) The status of a subsidiary as an exempt person under paragraph 
(d)(2)(v) of this section ceases once such subsidiary ceases to have at 
least 51 per cent of its common stock or analogous equity interest owned 
by a listed entity.
    (11) Transitional rule. (i) No accounts may be newly granted an 
exemption or placed on an exempt list on or after October 21, 1998, 
under the rules contained in 31 CFR 103.22(b) through (g), as in effect 
on October 20, 1998 (see 31 CFR Parts 0 to 199 revised as of July 1, 
1998).
    (ii) If a bank properly treated an account (a ``previously exempted 
account'') as exempt on October 20, 1998 under the rules contained in 31 
CFR 103.22(b) through (g), as in effect on October 20, 1998 (see 31 CFR 
Parts 0 to 199 revised as of July 1, 1998), it may continue to treat 
such account as exempt under such prior rules with respect to 
transactions in currency occurring on or before June 30, 2000, provided 
that it does so consistently until the earlier of June 30, 2000, and the 
date on which the bank makes the designation or the determination 
described in paragraph (d)(11)(iii) of this section. A bank that 
continues to treat a previously exempted account as exempt under the 
prior rules, and for the period, specified in the preceding sentence, 
shall remain subject to such prior rules, and to the penalties for 
failing to comply therewith, with respect to transactions in currency 
occurring during such period.
    (iii) A bank must, on or before July 1, 2000, either designate the 
holder of a previously exempted account as an exempt person under 
paragraph (d)(2) of this section or determine that it may not or will 
not treat such holder as an exempt person under paragraph (d)(2) of this 
section (so that it will be required to make reports under paragraph (a) 
of this section with respect to transactions in currency by such person 
occurring on or after the date of determination, but no later than July 
1, 2000). A bank that initially does not designate the holder of a 
previously exempted account as an exempt person for periods beginning 
after June 30, 2000, may later make such a designation, to the extent 
otherwise permitted to do so by this paragraph (d), for periods after 
the effective date of such designation.

(Approved by the Office of Management and Budget under control number 
1506-0009)

[63 FR 50156, Sept. 21, 1998, as amended at 65 FR 46360, July 28, 2000]