Title 31 — Money and FinanceRelease 119-73

§5335 Prohibition on concealment of the source of assets in monetary transactions

Title 31 › Subtitle SUBTITLE IV— - MONEY › Chapter CHAPTER 53— - MONETARY TRANSACTIONS › Subchapter SUBCHAPTER II— - RECORDS AND REPORTS ON MONETARY INSTRUMENTS TRANSACTIONS › § 5335

Last updated Apr 6, 2026|Official source

Summary

Do not lie to a bank about who owns or controls money or where the money came from in certain kinds of big or risky transactions. A “monetary transaction” means deposits, withdrawals, transfers, or exchanges through a bank or similar financial firm that cross state lines or go overseas. The rule bars knowingly hiding, faking, or misrepresenting important facts about ownership or control when the owner is a senior foreign political figure (or that person’s immediate family or close associate) and the total assets are $1,000,000 or more. It also bars hiding or faking important facts about the source of funds when the transaction involves an entity officially labeled a “primary money laundering concern” and that entity is subject to legal limits under the law. If convicted, a person can be jailed for up to 10 years, fined up to $1,000,000, or both. The court must order forfeiture of property used in or tied to the offense. Seizure and forfeiture follow existing federal procedures and may be carried out by officials designated by the Secretary of Homeland Security or the Attorney General.

Full Legal Text

Title 31, §5335

Money and Finance — Source: USLM XML via OLRC

(a)In this section, the term the term “monetary transaction”—

(1)means the deposit, withdrawal, transfer, or exchange, in or affecting interstate or foreign commerce, of funds or a monetary instrument (as defined in section 1956(c)(5) of title 18) by, through, or to a financial institution (as defined in section 1956(c)(6) of title 18);

(2)includes any transaction that would be a financial transaction under section 1956(c)(4)(B) of title 18; and

(3)does not include any transaction necessary to preserve the right to representation of a person as guaranteed by the Sixth Amendment to the Constitution of the United States.

(b)No person shall knowingly conceal, falsify, or misrepresent, or attempt to conceal, falsify, or misrepresent, from or to a financial institution, a material fact concerning the ownership or control of assets involved in a monetary transaction if—

(1)the person or entity who owns or controls the assets is a senior foreign political figure, or any immediate family member or close associate of a senior foreign political figure, as set forth in this title or the regulations promulgated under this title; and

(2)the aggregate value of the assets involved in 1 or more monetary transactions is not less than $1,000,000.

(c)No person shall knowingly conceal, falsify, or misrepresent, or attempt to conceal, falsify, or misrepresent, from or to a financial institution, a material fact concerning the source of funds in a monetary transaction that—

(1)involves an entity found to be a primary money laundering concern under section 5318A or the regulations promulgated under this title; and

(2)violates the prohibitions or conditions prescribed under section 5318A(b)(5) or the regulations promulgated under this title.

(d)A person convicted of an offense under subsection (b) or (c), or a conspiracy to commit an offense under subsection (b) or (c), shall be imprisoned for not more than 10 years, fined not more than $1,000,000, or both.

(e)(1)(A)The court, in imposing a sentence under subsection (d), shall order that the defendant forfeit to the United States any property involved in the offense and any property traceable thereto.

(B)The seizure, restraint, and forfeiture of property under this paragraph shall be governed by section 413 of the Controlled Substances Act (21 U.S.C. 853).

(2)(A)Any property involved in a violation of subsection (b) or (c), or a conspiracy to commit a violation of subsection (b) or (c), and any property traceable thereto may be seized and forfeited to the United States.

(B)Seizures and forfeitures under this paragraph shall be governed by the provisions of chapter 46 of title 18 relating to civil forfeitures, except that such duties, under the customs laws described in section 981(d) of title 18, given to the Secretary of the Treasury shall be performed by such officers, agents, and other persons as may be designated for that purpose by the Secretary of Homeland Security or the Attorney General.

Reference

Citations & Metadata

Citation

31 U.S.C. § 5335

Title 31 — Money and Finance

Last Updated

Apr 6, 2026

Release point: 119-73