[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1829b]
TITLE 12--BANKS AND BANKING
CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
Sec. 1829b. Retention of records by insured depository
institutions
(a) Congressional findings and declaration of purpose
(1) Findings
Congress finds that--
(A) adequate records maintained by insured depository
institutions have a high degree of usefulness in criminal, tax,
and 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 domestic and
international terrorism; and
(B) microfilm or other reproductions and other records made
by insured depository institutions of checks, as well as records
kept by such institutions, of the identity of persons
maintaining or authorized to act with respect to accounts
therein, have been of particular value in proceedings described
in subparagraph (A).
(2) Purpose
It is the purpose of this section to require the maintenance of
appropriate types of records by insured depository institutions in
the United States where such records have a high degree of
usefulness in criminal, tax, or regulatory investigations or
proceedings, recognizes 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.
(b) Recordkeeping regulations
(1) In general
Where the Secretary of the Treasury (referred to in this section
as the ``Secretary'') determines that the maintenance of appropriate
types of records and other evidence by insured depository
institutions has a high degree of usefulness in criminal, tax, or
regulatory investigations or proceedings, he shall prescribe
regulations to carry out the purposes of this section.
(2) Domestic funds transfers
Whenever the Secretary and the Board of Governors of the Federal
Reserve System (hereafter in this section referred to as the
``Board'') determine that the maintenance of records, by insured
depository institutions, of payment orders which direct transfers of
funds over wholesale funds transfer systems has a high degree of
usefulness in criminal, tax, or regulatory investigations or
proceedings, the Secretary and the Board shall jointly prescribe
regulations to carry out the purposes of this section with respect
to the maintenance of such records.
(3) International funds transfers
(A) In general
The Secretary and the Board shall jointly prescribe, after
consultation with State banking supervisors, final regulations
requiring that insured depository institutions, businesses that
provide check cashing services, money transmitting businesses,
and businesses that issue or redeem money orders, travelers'
checks or other similar instruments maintain such records of
payment orders which--
(i) involve international transactions; and
(ii) direct transfers of funds over wholesale funds
transfer systems or on the books of any insured depository
institution, or on the books of any business that provides
check cashing services, any money transmitting business, and
any business that issues or redeems money orders, travelers'
checks or similar instruments,
that will have a high degree of usefulness in criminal, tax, or
regulatory investigations or proceedings.
(B) Factors for consideration
In prescribing the regulations required under subparagraph
(A), the Secretary and the Board shall consider--
(i) the usefulness in criminal, tax, or regulatory
investigations or proceedings of any record required to be
maintained pursuant to the proposed regulations; and
(ii) the effect the recordkeeping required pursuant to
such proposed regulations will have on the cost and
efficiency of the payment system.
(C) Availability of records
Any records required to be maintained pursuant to the
regulations prescribed under subparagraph (A) shall be submitted
or made available to the Secretary or the Board upon request.
(c) Identity of persons having accounts and persons authorized to act
with respect to such accounts; exemptions
Subject to the requirements of any regulations prescribed jointly by
the Secretary and the Board under paragraph (2) or (3) of subsection (b)
of this section, each insured depository institution shall maintain such
records and other evidence, in such form as the Secretary shall require,
of the identity of each person having an account in the United States
with the insured depository institution and of each individual
authorized to sign checks, make withdrawals, or otherwise act with
respect to any such account. The Secretary may make such exemptions from
any requirement otherwise imposed under this subsection as are
consistent with the purposes of this section.
(d) Reproduction of checks, drafts, and other instruments; record of
transactions; identity of party
Each insured depository institution shall make, to the extent that
the regulations of the Secretary so require--
(1) a microfilm or other reproduction of each check, draft, or
similar instrument drawn on it and presented to it for payment; and
(2) a record of each check, draft, or similar instrument
received by it for deposit or collection, together with an
identification of the party for whose account it is to be deposited
or collected, unless the insured depository institution has already
made a record of the party's identity pursuant to subsection (c) of
this section.
(e) Identity of persons making reportable currency and foreign
transactions
Subject to the requirements of any regulations prescribed jointly by
the Secretary and the Board under paragraph (2) or (3) of subsection (b)
of this section, whenever any individual engages (whether as principal,
agent, or bailee) in any transaction with an insured depository
institution which is required to be reported or recorded under
subchapter II of chapter 53 of title 31, the insured depository
institution shall require and retain such evidence of the identity of
that individual as the Secretary may prescribe as appropriate under the
circumstances.
(f) Additions to or substitutes for required records
Subject to the requirements of any regulations prescribed jointly by
the Secretary and the Board under paragraph (2) or (3) of subsection (b)
of this section and in addition to or in lieu of the records and
evidence otherwise referred to in this section, each insured depository
institution shall maintain such records and evidence as the Secretary
may prescribe to carry out the purposes of this section.
(g) Retention period
Any type of record or evidence required under this section shall be
retained for such period as the Secretary may prescribe for the type in
question. Any period so prescribed shall not exceed six years unless the
Secretary determines, having regard for the purposes of this section,
that a longer period is necessary in the case of a particular type of
record or evidence.
(h) Report to Congress by Secretary of the Treasury
The Secretary shall include in his annual report to the Congress
information on his implementation of the authority conferred by this
section and any similar authority with respect to recordkeeping or
reporting requirements conferred by other provisions of law.
(i) Application of provisions to foreign banks
The provisions of this section shall not apply to any foreign bank
except with respect to the transactions and records of any insured
branch of such a bank.
(j) Civil penalties
(1) Penalty imposed
Any insured depository institution and any director, officer, or
employee of an insured depository institution who willfully or
through gross negligence violates, or any person who willfully
causes such a violation, any regulation prescribed under subsection
(b) of this section shall be liable to the United States for a civil
penalty of not more than $10,000.
(2) Treatment of continuing violation
A separate violation of any regulation prescribed under
subsection (b) of this section occurs for each day the violation
continues and at each office, branch, or place of business at which
such violation occurs.
(3) Assessment
Any penalty imposed under paragraph (1) shall be assessed,
mitigated, and collected in the manner provided in subsections (b)
and (c) of section 5321 of title 31.
(Sept. 21, 1950, ch. 967, Sec. 2[21], as added Pub. L. 91-508, title I,
Sec. 101, Oct. 26, 1970, 84 Stat. 1114; amended Pub. L. 95-369,
Sec. 6(c)(29), Sept. 17, 1978, 92 Stat. 620; Pub. L. 100-690, title VI,
Sec. 6185(d)(1), Nov. 18, 1988, 102 Stat. 4356; Pub. L. 101-73, title
II, Sec. 201(a), Aug. 9, 1989, 103 Stat. 187; Pub. L. 102-550, title XV,
Secs. 1515(a), (b), 1535(b), Oct. 28, 1992, 106 Stat. 4058, 4059, 4066;
Pub. L. 103-325, title VI, Sec. 602(a)(52)-(54), Sept. 23, 1994, 108
Stat. 2290; Pub. L. 107-56, title III, Sec. 358(d), Oct. 26, 2001, 115
Stat. 326.)
Codification
In subsec. (e), ``subchapter II of chapter 53 of title 31'' was
substituted for ``the Currency and Foreign Transactions Reporting Act
[31 U.S.C. 1051 et seq.]'' on authority of Pub. L. 97-258, Sec. 4(b),
Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title
31, Money and Finance.
Amendments
2001--Subsec. (a). Pub. L. 107-56 reenacted heading without change
and amended text generally. Prior to amendment, text read as follows:
``(1) The Congress finds that adequate records maintained by insured
depository institutions have a high degree of usefulness in criminal,
tax, and regulatory investigations and proceedings. The Congress further
finds that microfilm or other reproductions and other records made by
banks of checks, as well as records kept by banks of the identity of
persons maintaining or authorized to act with respect to accounts
therein, have been of particular value in this respect.
``(2) It is the purpose of this section to require the maintenance
of appropriate types of records by insured depository institutions in
the United States where such records have a high degree of usefulness in
criminal, tax, or regulatory investigations or proceedings.''
1994--Subsecs. (c), (d)(2), (e). Pub. L. 103-325 substituted ``the
insured depository institution'' for ``the bank''.
1992--Subsec. (b). Pub. L. 102-550, Sec. 1515(a), inserted heading,
designated existing provisions as par. (1) and inserted heading, and
added pars. (2) and (3).
Subsec. (c). Pub. L. 102-550, Sec. 1515(b)(1), substituted ``Subject
to the requirements of any regulations prescribed jointly by the
Secretary and the Board under paragraph (2) or (3) of subsection (b) of
this section, each insured'' for ``Each insured''.
Subsec. (e). Pub. L. 102-550, Sec. 1515(b)(2), substituted ``Subject
to the requirements of any regulations prescribed jointly by the
Secretary and the Board under paragraph (2) or (3) of subsection (b) of
this section, whenever any'' for ``Whenever any''.
Subsec. (f). Pub. L. 102-550, Sec. 1515(b)(3), substituted ``Subject
to the requirements of any regulations prescribed jointly by the
Secretary and the Board under paragraph (2) or (3) of subsection (b) of
this section and in addition to'' for ``In addition to''.
Subsec. (j)(1). Pub. L. 102-550, Sec. 1535(b), inserted ``, or any
person who willfully causes such a violation,'' after ``gross negligence
violates''.
1989--Pub. L. 101-73 substituted references to insured depository
institutions for references to insured banks wherever appearing in this
section.
1988--Subsec. (j). Pub. L. 100-690 added subsec. (j).
1978--Subsec. (i). Pub. L. 95-369 added subsec. (i).
Effective and Termination Dates of 2001 Amendment
Amendments by title III of Pub. L. 107-56 to terminate effective on
and after the first day of fiscal year 2005 if Congress enacts a joint
resolution that such amendments no longer have the force of law, see
section 303 of Pub. L. 107-56, set out as a Four-Year Congressional
Review; Expedited Consideration note under section 5311 of Title 31,
Money and Finance.
Pub. L. 107-56, title III, Sec. 358(h), Oct. 26, 2001, 115 Stat.
328, provided that: ``The amendments made by this section [enacting
section 1681v of Title 15, Commerce and Trade, amending this section and
sections 1953, 3412, 3414, and 3420 of this title, section 1681u of
Title 15, and sections 5311, 5318, and 5319 of Title 31, Money and
Finance] shall apply with respect to reports filed or records maintained
on, before, or after the date of enactment of this Act [Oct. 26,
2001].''
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.
Regulations
Section 1515(c) of Pub. L. 102-550 provided that: ``The initial
final regulations prescribed pursuant to section 21(b)(3) of the Federal
Deposit Insurance Act [12 U.S.C. 1829b(b)(3)] (as added by subsection
(a)(2) of this section) shall take effect before January 1, 1994.''
Additional Criminal Penalties
Willful violation of regulations under this section punishable by
fine of not more than $10,000 or imprisonment of not more than five
years, or both, when such willful violation is committed in furtherance
of the commission of any violation of federal law punishable by
imprisonment of more than one year, see section 1957 of this title.
Administrative Procedure
Administrative procedure and judicial review provisions of
subchapter II (Sec. 551 et seq.) of chapter 5 and chapter 7 (Sec. 701 et
seq.) of Title 5, Government Organization and Employees, applicable to
all proceedings under this section, see section 1959 of this title.
Responsibility for Compliance
Responsibility for the Secretary of the Treasury to assure
compliance with requirements of this section, and Secretary's authority
to delegate such responsibility to the appropriate bank supervisory
agency, or other supervisory agency, see section 1958 of this title.
Section Referred to in Other Sections
This section is referred to in sections 1957, 1958, 1959 of this
title
