[Code of Federal Regulations]
[Title 30, Volume 1]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR103.30]

[Page 393-399]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
                      CHAPTER I--MONETARY OFFICES,
                       DEPARTMENT OF THE TREASURY
 
PART 103_FINANCIAL RECORDKEEPING AND REPORTING OF CURRENCY AND FOREIGN 
 
                  Subpart B_Reports Required To Be Made
 
Sec. 103.30  Reports relating to currency in excess of $10,000 received in a 

trade or business.

    (a) Reporting requirement--(1) Reportable transactions--(i) In 
general. Any person (solely for purposes of section 5331 of title 31, 
United States Code and this section, ``person'' shall have the same 
meaning as under 26 U.S.C. 7701 (a)(1)) who, in the course of a trade or 
business in which such person is engaged, receives currency in excess of 
$10,000 in 1 transaction (or 2 or more related transactions) shall, 
except as otherwise provided, make a report of information with respect 
to the receipt of currency. This section does not apply to amounts 
received in a transaction reported under 31 U.S.C. 5313 and Sec. 
103.22.
    (ii) Certain financial transactions. Section 6050I of title 26 of 
the United States Code requires persons to report information about 
financial transactions to the IRS, and 31 U.S.C. 5331 requires persons 
to report similar information about certain transactions to the 
Financial Crimes Enforcement Network. This information shall be reported 
on the same form as prescribed by the Secretary.
    (2) Currency received for the account of another. Currency in excess 
of $10,000 received by a person for the account of another must be 
reported under this section. Thus, for example, a person who collects 
delinquent accounts receivable for an automobile dealer must report with 
respect to the receipt of currency in excess of $10,000 from the

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collection of a particular account even though the proceeds of the 
collection are credited to the account of the automobile dealer (i.e., 
where the rights to the proceeds from the account are retained by the 
automobile dealer and the collection is made on a fee-for-service 
basis).
    (3) Currency received by agents--(i) General rule. Except as 
provided in paragraph (a)(3)(ii) of this section, a person who in the 
course of a trade or business acts as an agent (or in some other similar 
capacity) and receives currency in excess of $10,000 from a principal 
must report the receipt of currency under this section.
    (ii) Exception. An agent who receives currency from a principal and 
uses all of the currency within 15 days in a currency transaction (the 
``second currency transaction'') which is reportable under section 5312 
of title 31, or 31 U.S.C. 5331 and this section, and who discloses the 
name, address, and taxpayer identification number of the principal to 
the recipient in the second currency transaction need not report the 
initial receipt of currency under this section. An agent will be deemed 
to have met the disclosure requirements of this paragraph (a)(3)(ii) if 
the agent discloses only the name of the principal and the agent knows 
that the recipient has the principal's address and taxpayer 
identification number.
    (iii) Example. The following example illustrates the application of 
the rules in paragraphs (a)(3)(i) and (ii) of this section:

    Example. B, the principal, gives D, an attorney, $75,000 in currency 
to purchase real property on behalf of B. Within 15 days D purchases 
real property for currency from E, a real estate developer, and 
discloses to E, B's name, address, and taxpayer identification number. 
Because the transaction qualifies for the exception provided in 
paragraph (a)(3)(ii) of this section, D need not report with respect to 
the initial receipt of currency under this section. The exception does 
not apply, however, if D pays E by means other than currency, or effects 
the purchase more than 15 days following receipt of the currency from B, 
or fails to disclose B's name, address, and taxpayer identification 
number (assuming D does not know that E already has B's address and 
taxpayer identification number), or purchases the property from a person 
whose sale of the property is not in the course of that person's trade 
or business. In any such case, D is required to report the receipt of 
currency from B under this section.

    (b) Multiple payments. The receipt of multiple currency deposits or 
currency installment payments (or other similar payments or prepayments) 
relating to a single transaction (or two or more related transactions), 
is reported as set forth in paragraphs (b)(1) through (b)(3) of this 
section.
    (1) Initial payment in excess of $10,000. If the initial payment 
exceeds $10,000, the recipient must report the initial payment within 15 
days of its receipt.
    (2) Initial payment of $10,000 or less. If the initial payment does 
not exceed $10,000, the recipient must aggregate the initial payment and 
subsequent payments made within one year of the initial payment until 
the aggregate amount exceeds $10,000, and report with respect to the 
aggregate amount within 15 days after receiving the payment that causes 
the aggregate amount to exceed $10,000.
    (3) Subsequent payments. In addition to any other required report, a 
report must be made each time that previously unreportable payments made 
within a 12-month period with respect to a single transaction (or two or 
more related transactions), individually or in the aggregate, exceed 
$10,000. The report must be made within 15 days after receiving the 
payment in excess of $10,000 or the payment that causes the aggregate 
amount received in the 12-month period to exceed $10,000. (If more than 
one report would otherwise be required for multiple currency payments 
within a 15-day period that relate to a single transaction (or two or 
more related transactions), the recipient may make a single combined 
report with respect to the payments. The combined report must be made no 
later than the date by which the first of the separate reports would 
otherwise be required to be made.)
    (4) Example. The following example illustrates the application of 
the rules in paragraphs (b)(1) through (b)(3) of this section:

    Example. On January 10, Year 1, M receives an initial payment in 
currency of $11,000 with respect to a transaction. M receives subsequent 
payments in currency with respect to the same transaction of $4,000 on

[[Page 395]]

February 15, Year 1, $6,000 on March 20, Year 1, and $12,000 on May 15, 
Year 1. M must make a report with respect to the payment received on 
January 10, Year 1, by January 25, Year 1. M must also make a report 
with respect to the payments totaling $22,000 received from February 15, 
Year 1, through May 15, Year 1. This report must be made by May 30, Year 
1, that is, within 15 days of the date that the subsequent payments, all 
of which were received within a 12-month period, exceeded $10,000.

    (c) Meaning of terms. The following definitions apply for purposes 
of this section--
    (1) Currency. Solely for purposes of 31 U.S.C. 5331 and this 
section, currency means--
    (i) The coin and currency of the United States or of any other 
country, which circulate in and are customarily used and accepted as 
money in the country in which issued; and
    (ii) A cashier's check (by whatever name called, including 
``treasurer's check'' and ``bank check''), bank draft, traveler's check, 
or money order having a face amount of not more than $10,000--
    (A) Received in a designated reporting transaction as defined in 
paragraph (c)(2) of this section (except as provided in paragraphs 
(c)(3), (4), and (5) of this section), or
    (B) Received in any transaction in which the recipient knows that 
such instrument is being used in an attempt to avoid the reporting of 
the transaction under section 5331 and this section.
    (2) Designated reporting transaction. A designated reporting 
transaction is a retail sale (or the receipt of funds by a broker or 
other intermediary in connection with a retail sale) of--
    (i) A consumer durable, (ii) A collectible, or
    (iii) A travel or entertainment activity.
    (3) Exception for certain loans. A cashier's check, bank draft, 
traveler's check, or money order received in a designated reporting 
transaction is not treated as currency pursuant to paragraph 
(c)(1)(ii)(A) of this section if the instrument constitutes the proceeds 
of a loan from a bank. The recipient may rely on a copy of the loan 
document, a written statement from the bank, or similar documentation 
(such as a written lien instruction from the issuer of the instrument) 
to substantiate that the instrument constitutes loan proceeds.
    (4) Exception for certain installment sales. A cashier's check, bank 
draft, traveler's check, or money order received in a designated 
reporting transaction is not treated as currency pursuant to paragraph 
(c)(1)(ii)(A) of this section if the instrument is received in payment 
on a promissory note or an installment sales contract (including a lease 
that is considered to be a sale for Federal income tax purposes). 
However, the preceding sentence applies only if--
    (i) Promissory notes or installment sales contracts with the same or 
substantially similar terms are used in the ordinary course of the 
recipient's trade or business in connection with sales to ultimate 
consumers; and
    (ii) The total amount of payments with respect to the sale that are 
received on or before the 60th day after the date of the sale does not 
exceed 50 percent of the purchase price of the sale.
    (5) Exception for certain down payment plans. A cashier's check, 
bank draft, traveler's check, or money order received in a designated 
reporting transaction is not treated as currency pursuant to paragraph 
(c)(1)(ii)(A) of this section if the instrument is received pursuant to 
a payment plan requiring one or more down payments and the payment of 
the balance of the purchase price by a date no later than the date of 
the sale (in the case of an item of travel or entertainment, a date no 
later than the earliest date that any item of travel or entertainment 
pertaining to the same trip or event is furnished). However, the 
preceding sentence applies only if--
    (i) The recipient uses payment plans with the same or substantially 
similar terms in the ordinary course of its trade or business in 
connection with sales to ultimate consumers; and
    (ii) The instrument is received more than 60 days prior to the date 
of the sale (in the case of an item of travel or entertainment, the date 
on which the final payment is due).
    (6) Examples. The following examples illustrate the definition of 
``currency''

[[Page 396]]

set forth in paragraphs (c)(1) through (c)(5) of this section:

    Example 1. D, an individual, purchases gold coins from M, a coin 
dealer, for $13,200. D tenders to M in payment United States currency in 
the amount of $6,200 and a cashier's check in the face amount of $7,000 
which D had purchased. Because the sale is a designated reporting 
transaction, the cashier's check is treated as currency for purposes of 
31 U.S.C. 5331 and this section. Therefore, because M has received more 
than $10,000 in currency with respect to the transaction, M must make 
the report required by 31 U.S.C. 5331 and this section.
    Example 2. E, an individual, purchases an automobile from Q, an 
automobile dealer, for $11,500. E tenders to Q in payment United States 
currency in the amount of $2,000 and a cashier's check payable to E and 
Q in the amount of $9,500. The cashier's check constitutes the proceeds 
of a loan from the bank issuing the check. The origin of the proceeds is 
evident from provisions inserted by the bank on the check that instruct 
the dealer to cause a lien to be placed on the vehicle as security for 
the loan. The sale of the automobile is a designated reporting 
transaction. However, under paragraph (c)(3) of this section, because E 
has furnished Q documentary information establishing that the cashier's 
check constitutes the proceeds of a loan from the bank issuing the 
check, the cashier's check is not treated as currency pursuant to 
paragraph (c)(1)(ii)(A) of this section.
    Example 3. F, an individual, purchases an item of jewelry from S, a 
retail jeweler, for $12,000. F gives S traveler's checks totaling $2,400 
and pays the balance with a personal check payable to S in the amount of 
$9,600. Because the sale is a designated reporting transaction, the 
traveler's checks are treated as currency for purposes of section 5331 
and this section. However, because the personal check is not treated as 
currency for purposes of section 5331 and this section, S has not 
received more than $10,000 in currency in the transaction and no report 
is required to be filed under section 5331 and this section.
    Example 4. G, an individual, purchases a boat from T, a boat dealer, 
for $16,500. G pays T with a cashier's check payable to T in the amount 
of $16,500. The cashier's check is not treated as currency because the 
face amount of the check is more than $10,000. Thus, no report is 
required to be made by T under section 5331 and this section.
    Example 5. H, an individual, arranges with W, a travel agent, for 
the chartering of a passenger aircraft to transport a group of 
individuals to a sports event in another city. H also arranges with W 
for hotel accommodations for the group and for admission tickets to the 
sports event. In payment, H tenders to W money orders which H had 
previously purchased. The total amount of the money orders, none of 
which individually exceeds $10,000 in face amount, exceeds $10,000. 
Because the transaction is a designated reporting transaction, the money 
orders are treated as currency for purposes of section 5331 and this 
section. Therefore, because W has received more than $10,000 in currency 
with respect to the transaction, W must make the report required by 
section 5331 and this section.

    (7) Consumer durable. The term consumer durable means an item of 
tangible personal property of a type that is suitable under ordinary 
usage for personal consumption or use, that can reasonably be expected 
to be useful for at least 1 year under ordinary usage, and that has a 
sales price of more than $10,000. Thus, for example, a $20,000 
automobile is a consumer durable (whether or not it is sold for business 
use), but a $20,000 dump truck or a $20,000 factory machine is not.
    (8) Collectible. The term collectible means an item described in 
paragraphs (A) through (D) of section 408 (m)(2) of title 26 of the 
United States Code (determined without regard to section 408 (m)(3) of 
title 26 of the United States Code).
    (9) Travel or entertainment activity. The term travel or 
entertainment activity means an item of travel or entertainment (within 
the meaning of 26 CFR 1.274-2(b)(1)) pertaining to a single trip or 
event where the aggregate sales price of the item and all other items 
pertaining to the same trip or event that are sold in the same 
transaction (or related transactions) exceeds $10,000.
    (10) Retail sale. The term retail sale means any sale (whether for 
resale or for any other purpose) made in the course of a trade or 
business if that trade or business principally consists of making sales 
to ultimate consumers.
    (11) Trade or business. The term trade or business has the same 
meaning as under section 162 of title 26, United States Code.
    (12) Transaction. (i) Solely for purposes of 31 U.S.C. 5331 and this 
section, the term transaction means the underlying event precipitating 
the payer's transfer of currency to the recipient. In this context, 
transactions include (but are not limited to) a sale of goods or 
services; a sale of real property; a sale

[[Page 397]]

of intangible property; a rental of real or personal property; an 
exchange of currency for other currency; the establishment or 
maintenance of or contribution to a custodial, trust, or escrow 
arrangement; a payment of a preexisting debt; a conversion of currency 
to a negotiable instrument; a reimbursement for expenses paid; or the 
making or repayment of a loan. A transaction may not be divided into 
multiple transactions in order to avoid reporting under this section.
    (ii) The term related transactions means any transaction conducted 
between a payer (or its agent) and a recipient of currency in a 24-hour 
period. Additionally, transactions conducted between a payer (or its 
agent) and a currency recipient during a period of more than 24 hours 
are related if the recipient knows or has reason to know that each 
transaction is one of a series of connected transactions.
    (iii) The following examples illustrate the definition of paragraphs 
(c)(12) (i) and (ii) of this section:

    Example 1. A person has a tacit agreement with a gold dealer to 
purchase $36,000 in gold bullion. The $36,000 purchase represents a 
single transaction under paragraph (c)(12)(i) of this section and the 
reporting requirements of this section cannot be avoided by recasting 
the single sales transaction into 4 separate $9,000 sales transactions.
    Example 2. An attorney agrees to represent a client in a criminal 
case with the attorney's fee to be determined on an hourly basis. In the 
first month in which the attorney represents the client, the bill for 
the attorney's services comes to $8,000 which the client pays in 
currency. In the second month in which the attorney represents the 
client, the bill for the attorney's services comes to $4,000, which the 
client again pays in currency. The aggregate amount of currency paid 
($12,000) relates to a single transaction as defined in paragraph 
(c)(12)(i) of this section, the sale of legal services relating to the 
criminal case, and the receipt of currency must be reported under this 
section.
    Example 3. A person intends to contribute a total of $45,000 to a 
trust fund, and the trustee of the fund knows or has reason to know of 
that intention. The $45,000 contribution is a single transaction under 
paragraph (c)(12)(i) of this section and the reporting requirement of 
this section cannot be avoided by the grantor's making five separate 
$9,000 contributions of currency to a single fund or by making five 
$9,000 contributions of currency to five separate funds administered by 
a common trustee.
    Example 4. K, an individual, attends a one day auction and purchases 
for currency two items, at a cost of $9,240 and $1,732.50 respectively 
(tax and buyer's premium included). Because the transactions are related 
transactions as defined in paragraph (c)(12)(ii) of this section, the 
auction house is required to report the aggregate amount of currency 
received from the related sales ($10,972.50), even though the auction 
house accounts separately on its books for each item sold and presents 
the purchaser with separate bills for each item purchased.
    Example 5. F, a coin dealer, sells for currency $9,000 worth of gold 
coins to an individual on three successive days. Under paragraph 
(c)(12)(ii) of this section the three $9,000 transactions are related 
transactions aggregating $27,000 if F knows, or has reason to know, that 
each transaction is one of a series of connected transactions.

    (13) Recipient. (i) The term recipient means the person receiving 
the currency. Except as provided in paragraph (c)(13)(ii) of this 
section, each store, division, branch, department, headquarters, or 
office (``branch'') (regardless of physical location) comprising a 
portion of a person's trade or business shall for purposes of this 
section be deemed a separate recipient.
    (ii) A branch that receives currency payments will not be deemed a 
separate recipient if the branch (or a central unit linking such branch 
with other branches) would in the ordinary course of business have 
reason to know the identity of payers making currency payments to other 
branches of such person.
    (iii) Examples. The following examples illustrate the application of 
the rules in paragraphs (c)(13)(i) and (ii) of this section:

    Example 1. N, an individual, purchases regulated futures contracts 
at a cost of $7,500 and $5,000, respectively, through two different 
branches of Commodities Broker X on the same day. N pays for each 
purchase with currency. Each branch of Commodities Broker X transmits 
the sales information regarding each of N's purchases to a central unit 
of Commodities Broker X (which settles the transactions against N's 
account). Under paragraph (c)(13)(ii) of this section the separate 
branches of Commodities Broker X are not deemed to be separate 
recipients; therefore, Commodities Broker X must report with respect to 
the two related regulated futures contracts sales in accordance with 
this section.
    Example 2. P, a corporation, owns and operates a racetrack. P's 
racetrack contains 100

[[Page 398]]

betting windows at which pari-mutuel wagers may be made. R, an 
individual, places currency wagers of $3,000 each at five separate 
betting windows. Assuming that in the ordinary course of business each 
betting window (or a central unit linking windows) does not have reason 
to know the identity of persons making wagers at other betting windows, 
each betting window would be deemed to be a separate currency recipient 
under paragraph (c)(13)(i) of this section. As no individual recipient 
received currency in excess of $10,000, no report need be made by P 
under this section.

    (d) Exceptions to the reporting requirements of 31 U.S.C. 5331--(1) 
Receipt of currency by certain casinos having gross annual gaming 
revenue in excess of $1,000,000--(i) In general. If a casino receives 
currency in excess of $10,000 and is required to report the receipt of 
such currency directly to the Treasury Department under Sec. Sec. 
103.22 (a)(2) and 103.25 and is subject to the recordkeeping 
requirements of Sec. 103.36, then the casino is not required to make a 
report with respect to the receipt of such currency under 31 U.S.C. 5331 
and this section.
    (ii) Casinos exempt under Sec. 103.55(c). Pursuant to Sec. 103.55, 
the Secretary may exempt from the reporting and recordkeeping 
requirements under Sec. Sec. 103.22, 103.25 and 103.36 casinos in any 
state whose regulatory system substantially meets the reporting and 
recordkeeping requirements of this part. Such casinos shall not be 
required to report receipt of currency under 31 U.S.C. 5331 and this 
section.
    (iii) Reporting of currency received in a nongaming business. 
Nongaming businesses (such as shops, restaurants, entertainment, and 
hotels) at casino hotels and resorts are separate trades or businesses 
in which the receipt of currency in excess of $10,000 is reportable 
under section 5331 and these regulations. Thus, a casino exempt under 
paragraph (d)(1)(i) or (ii) of this section must report with respect to 
currency in excess of $10,000 received in its nongaming businesses.
    (iv) Example. The following example illustrates the application of 
the rules in paragraphs (d)(2) (i) and (iii) of this section:

    Example. A and B are casinos having gross annual gaming revenue in 
excess of $1,000,000. C is a casino with gross annual gaming revenue of 
less than $1,000,000. Casino A receives $15,000 in currency from a 
customer with respect to a gaming transaction which the casino reports 
to the Treasury Department under Sec. Sec. 103.22(a)(2) and 103.25. 
Casino B receives $15,000 in currency from a customer in payment for 
accommodations provided to that customer at Casino B's hotel. Casino C 
receives $15,000 in currency from a customer with respect to a gaming 
transaction. Casino A is not required to report the transaction under 31 
U.S.C. 5331 or this section because the exception for certain casinos 
provided in paragraph (d)(1)(i) of this section (``the casino 
exception'') applies. Casino B is required to report under 31 U.S.C. 
5331 and this section because the casino exception does not apply to the 
receipt of currency from a nongaming activity. Casino C is required to 
report under 31 U.S.C. 5331 and this section because the casino 
exception does not apply to casinos having gross annual gaming revenue 
of $1,000,000 or less which do not have to report to the Treasury 
Department under Sec. Sec. 103.22(a)(2) and 103.25.

    (2) Receipt of currency not in the course of the recipient's trade 
or business. The receipt of currency in excess of $10,000 by a person 
other than in the course of the person's trade or business is not 
reportable under 31 U.S.C. 5331. Thus, for example, F, an individual in 
the trade or business of selling real estate, sells a motorboat for 
$12,000, the purchase price of which is paid in currency. F did not use 
the motorboat in any trade or business in which F was engaged. F is not 
required to report under 31 U.S.C. 5331 or this section because the 
exception provided in this paragraph (d)(2) applies.
    (3) Receipt is made with respect to a foreign currency transaction--
(i) In general. Generally, there is no requirement to report with 
respect to a currency transaction if the entire transaction occurs 
outside the United States (the fifty states and the District of 
Columbia). An entire transaction consists of both the transaction as 
defined in paragraph (c)(12)(i) of this section and the receipt of 
currency by the recipient. If, however, any part of an entire 
transaction occurs in the Commonwealth of Puerto Rico or a possession or 
territory of the United States and the recipient of currency in that 
transaction is subject to the general jurisdiction of the Internal 
Revenue Service under title 26 of the United States Code, the recipient 
is required to report the transaction under this section.

[[Page 399]]

    (ii) Example. The following example illustrates the application of 
the rules in paragraph (d)(3)(i) of this section:

    Example. W, an individual engaged in the trade or business of 
selling aircraft, reaches an agreement to sell an airplane to a U.S. 
citizen living in Mexico. The agreement, no portion of which is 
formulated in the United States, calls for a purchase price of $125,000 
and requires delivery of and payment for the airplane to be made in 
Mexico. Upon delivery of the airplane in Mexico, W receives $125,000 in 
currency. W is not required to report under 31 U.S.C. 5331 or this 
section because the exception provided in paragraph (d)(3)(i) of this 
section (``foreign transaction exception'') applies. If, however, any 
part of the agreement to sell had been formulated in the United States, 
the foreign transaction exception would not apply and W would be 
required to report the receipt of currency under 31 U.S.C. 5331 and this 
section.

    (e) Time, manner, and form of reporting--(1) In general. The reports 
required by paragraph (a) of this section must be made by filing a Form 
8300, as specified in 26 CFR 1.6050I-1(e)(2). The reports must be filed 
at the time and in the manner specified in 26 CFR 1.6050I-1(e)(1) and 
(3) respectively.
    (2) Verification. A person making a report of information under this 
section must verify the identity of the person from whom the reportable 
currency is received. Verification of the identity of a person who 
purports to be an alien must be made by examination of such person's 
passport, alien identification card, or other official document 
evidencing nationality or residence. Verification of the identity of any 
other person may be made by examination of a document normally 
acceptable as a means of identification when cashing or accepting checks 
(for example, a driver's license or a credit card). In addition, a 
report will be considered incomplete if the person required to make a 
report knows (or has reason to know) that an agent is conducting the 
transaction for a principal, and the return does not identify both the 
principal and the agent.
    (3) Retention of reports. A person required to make a report under 
this section must keep a copy of each report filed for five years from 
the date of filing.

[66 FR 67681, Dec. 31, 2001]