§5314 — Title 31 Money and Finance | U.S. Code

Summary

The Treasury Secretary must require U.S. residents, citizens, or people doing business in the United States to keep records and sometimes file reports when they make transactions or have a relationship for someone with a foreign financial agency (for example, a foreign bank). The records and reports must include four things: who is involved and their addresses, the legal role each person is acting in, who really benefits from the transaction, and a description of the transaction. The Secretary can make rules about five matters: who must follow or is exempt from the rules, which foreign countries the rules cover, how large a transaction must be to count, what kinds of transactions are included or excluded, and other details needed to carry out the rules. A person must only disclose a required record when the law requires it.

Title 31, §5314

Money and Finance — Source: USLM XML via OLRC

(a)Considering the need to avoid impeding or controlling the export or import of monetary instruments and the need to avoid burdening unreasonably a person making a transaction with a foreign financial agency, the Secretary of the Treasury shall require a resident or citizen of the United States or a person in, and doing business in, the United States, to keep records, file reports, or keep records and file reports, when the resident, citizen, or person makes a transaction or maintains a relation for any person with a foreign financial agency. The records and reports shall contain the following information in the way and to the extent the Secretary prescribes:

(1)the identity and address of participants in a transaction or relationship.

(2)the legal capacity in which a participant is acting.

(3)the identity of real parties in interest.

(4)a description of the transaction.

(b)The Secretary may prescribe—

(1)a reasonable classification of persons subject to or exempt from a requirement under this section or a regulation under this section;

(2)a foreign country to which a requirement or a regulation under this section applies if the Secretary decides applying the requirement or regulation to all foreign countries is unnecessary or undesirable;

(3)the magnitude of transactions subject to a requirement or a regulation under this section;

(4)the kind of transaction subject to or exempt from a requirement or a regulation under this section; and

(5)other matters the Secretary considers necessary to carry out this section or a regulation under this section.

(c)A person shall be required to disclose a record required to be kept under this section or under a regulation under this section only as required by law.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5314(a)31:1121(a).Oct. 26, 1970, Pub. L. 91–508, §§ 241, 242, 84 Stat. 1124. 5314(b)31:1122. 5314(c)31:1121(b). In subsection (a), before clause (1), the words “currency or other”, “legitimately”, “by regulation”, and “directly or indirectly” are omitted as surplus. The words “for any person” are substituted for “on behalf of himself or another” to eliminate unnecessary words. The words “and to the extent” are substituted for “and in such detail” for clarity. In clauses (1) and (2), the words “participants” and “participant” are substituted for “parties” for consistency. In clause (2), the words “to the transaction or relationship” are omitted as surplus. In clause (3), the words “if one or more of the parties are not acting solely as principals” are omitted as surplus. In clause (4), the words “including the amounts of money, credit, or other property involved” are omitted as surplus. In subsection (b), the words “or a regulation under this section” are added because of the restatement. The words “or does not apply” and “uniform” in clause (2) are omitted as surplus. In clause (5), the words “carry out” are substituted for “the application of” for consistency. In subsection (c), the words “produce or otherwise . . . the contents of” and “in compliance with a subpena or summons duly authorized and issued or . . . may otherwise be” are omitted as surplus. The words “under a regulation” are added because of the restatement.

Statutory Notes and Related Subsidiaries

Compliance With Reporting Requirements Pub. L. 107–56, title III, § 361(b), Oct. 26, 2001, 115 Stat. 332, provided that: “The Secretary of the Treasury shall study methods for improving compliance with the reporting requirements established in section 5314 of title 31, United States Code, and shall submit a report on such study to the Congress by the end of the 6-month period beginning on the date of enactment of this Act [Oct. 26, 2001] and each 1-year period thereafter. The initial report shall include historical data on compliance with such reporting requirements.”

§5314 Records and Reports on Foreign Financial Agency Transactions

Summary

Title 31, §5314

Notes & Related Subsidiaries

Historical and Revision Notes

Statutory Notes and Related Subsidiaries

Citations & Metadata