Here is the converted article in markdown format:
FinCEN Reports and Recordkeeping Requirements
The Financial Crimes Enforcement Network (FinCEN) plays a crucial role in collecting and analyzing financial data to combat money laundering, terrorist financing, and other financial crimes. As part of this effort, financial institutions are required to file certain reports with FinCEN and maintain specific records.
Report of International Transportation of Currency or Monetary Instruments
According to Treasury Regulation 31 CFR 103.23, financial institutions must file a report with FinCEN when physically transporting, mailing, or shipping currency or monetary instruments exceeding $10,000 at one time out of or into the United States. The report must be completed by or on behalf of the person requesting the transfer and filed within 15 days.
- Financial institutions are not required to report items shipped through the postal service or common carrier, nor those shipped to or received from established customers with a deposit relationship, provided the item amounts are commensurate with customary business conduct.
- However, if the quantity, dollar volume, and frequency of transactions are unusual, financial institution management must conduct further research and determine whether a Suspicious Activity Report (SAR) should be filed.
Reports of Foreign Bank Accounts
Under Treasury Regulation 31 CFR 103.24, each person with a financial interest in or signature authority over foreign bank accounts must report those relationships to the IRS annually if the aggregate value of the accounts exceeds $10,000 at any point during the calendar year. The report should be filed by June 30 of the succeeding calendar year using Form TD F 90-22.1.
FinCEN Recordkeeping Requirements
Financial institutions are required to maintain certain records related to sales of monetary instruments for cash, funds transfers, and other transactions. These records must be retained for a period of five years.
Records for Sales of Monetary Instruments for Cash
Under Treasury Regulation 31 CFR 103.29, financial institutions are prohibited from issuing or selling monetary instruments purchased with cash in amounts of $3,000 to $10,000, inclusive, unless they obtain and record specific identifying information on the purchaser and transaction details.
Funds Transfer and Travel Rule Requirements
Under Treasury Regulation 31 CFR Section 103.33, financial institutions must obtain certain information for funds transfers exceeding $3,000. This includes records of wire transfers, as well as other types of transactions.
Records to be Made and Retained by Financial Institutions
Financial institutions are required to retain records related to extensions of credit in excess of $10,000, as well as records of funds transfers and other transactions. These records must be retained for a period of five years.
For more information on FinCEN reports and recordkeeping requirements, examiners are requested to e-mail or fax their requests to their Regional SACM or other designee.