Title 12 — Banks and BankingRelease 119-73
§1953 Recordkeeping and procedures
Title 12 › Chapter CHAPTER 21— - FINANCIAL RECORDKEEPING › § 1953
Summary
The Treasury Secretary can require uninsured banks, certain financial firms, or people doing certain financial functions in the United States to keep specific records and to have procedures to follow those rules if he finds those records would be very useful for criminal, tax, regulatory, or intelligence and counterintelligence work, including protecting against international terrorism after the attacks on September 11, 2001. He can make them keep the same kinds of records that insured banks may be required to keep under section 1829b. For penalties, each day a rule is broken and each office, branch, or place of business where it happens counts as a separate violation. Who is covered: financial institutions as defined in 31 U.S.C. 5312(a)(2), but not insured banks or insured institutions (see 12 U.S.C. 1813(h) and 1724(a)), and their partners, officers, directors, and employees. The Secretary may allow these records to be kept in electronic or automated form under conditions he sets.
Full Legal Text
Title 12, §1953
Banks and Banking — Source: USLM XML via OLRC
(a)If the Secretary determines that the maintenance of appropriate records and procedures by any uninsured bank or uninsured institution, or any person engaging in the business of carrying on in the United States any of the functions referred to in subsection (b), has a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, and that, given the threat posed to the security of the Nation on and after the terrorist attacks against the United States on September 11, 2001, such records may also have a high degree of usefulness in the conduct of intelligence or counterintelligence activities, including analysis, to protect against international terrorism, he may by regulation require such bank, institution, or person—
(1)to require, retain, or maintain, with respect to its functions as an uninsured bank or uninsured institution or its functions referred to in subsection (b), any records or evidence of any type which the Secretary is authorized under section 1829b of this title to require insured banks to require, retain, or maintain; and
(2)to maintain procedures to assure compliance with requirements imposed under this chapter. For the purposes of any civil or criminal penalty, a separate violation of any requirement under this paragraph occurs with respect to each day and each separate office, branch, or place of business in which the violation occurs or continues.
(b)The authority of the Secretary of the Treasury under subsection (a) extends to any financial institution (as defined in section 5312(a)(2) of title 31), other than any insured bank (as defined in section 1813(h) of this title) and any insured institution (as defined in section 1724(a) 11 See References in Text note below. of this title), and any partner, officer, director, or employee of any such financial institution.
(c)The Secretary shall permit an uninsured bank or financial institution to retain or maintain records referred to in subsection (a) in electronic or automated form, subject to terms and conditions established by the Secretary.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
section 1724 of this title, referred to in subsec. (b), was repealed by Pub. L. 101–73, title IV, § 407, Aug. 9, 1989, 103 Stat. 363.
Amendments
2004—Subsec. (a). Pub. L. 108–458 made technical correction to Pub. L. 107–56. See 2001 Amendment note below. 2001—Subsec. (a). Pub. L. 107–56, as amended by Pub. L. 108–458, amended introductory provisions generally. Prior to amendment, introductory provisions read as follows: “Where the Secretary determines that the maintenance of appropriate records and procedures by any uninsured bank or uninsured institution, or any person engaging in the business of carrying on in the United States any of the functions referred to in subsection (b) of this section, has a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, he may by regulation require such bank, institution, or person—”. 1994—Subsec. (c). Pub. L. 103–325 added subsec. (c). 1988—Subsec. (b). Pub. L. 100–690 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The authority of the Secretary under this section extends to any person engaging in the business of carrying on any of the following functions: “(1) Issuing or redeeming checks, money orders, travelers’ checks, or similar instruments, except as an incident to the conduct of its own nonfinancial business. “(2) Transferring funds or credits domestically or internationally. “(3) Operating a currency exchange or otherwise dealing in foreign currencies or credits. “(4) Operating a credit card system. “(5) Performing such similar, related, or substitute functions for any of the foregoing or for banking as may be specified by the Secretary in
Regulations
.”
Statutory Notes and Related Subsidiaries
Effective Date
of 2004 AmendmentAmendment by Pub. L. 108–458 effective as if included in Pub. L. 107–56, as of the date of enactment of such Act, and no amendment made by Pub. L. 107–56 that is inconsistent with such amendment to be deemed to have taken effect, see section 6205 of Pub. L. 108–458, set out as a note under section 1828 of this title.
Effective Date
of 2001 AmendmentAmendment by Pub. L. 107–56 applicable with respect to reports filed or records maintained on, before, or after Oct. 26, 2001, see section 358(h) of Pub. L. 107–56, set out as a note under section 1829b of this title.
Effective Date
Section effective on first day of seventh calendar month which begins after Oct. 26, 1970, except that the Secretary of the Treasury may, by regulation, provide that this section be effective on any date not earlier than the publication of such
Regulations
in the Federal Register and not later than first day of thirteenth calendar month which begins after Oct. 26, 1970, see section 401(a), (b) of Pub. L. 91–508, set out as a note under section 1951 of this title.
Reference
Citations & Metadata
Citation
12 U.S.C. § 1953
Title 12 — Banks and Banking
Last Updated
Apr 6, 2026
Release point: 119-73