BSA/AML Examiner Training Series 2

31 CFR Chapter X – Financial Crimes Enforcement Network (Continued)

Code

Failure to follow identification procedures or failure to record identification method Section 1020.312 of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to follow the prescribed identification procedures with respect to any transaction for which a report is required under Section 1020.311, 1020.313, and 1020.315, and to record on the report (FinCEN Form 112) the method used in verifying the identity of the customer. Failure to maintain records on sales of monetary instruments between $3M and $10M Section 1010.415(a) of the Treasury Department’s Bank Secrecy Act regulations states that no covered financial institution may issue or sell a bank check or draft, cashier’s check, money order or traveler’s check for $3,000 or more in currency unless it obtains and maintains records containing specified information concerning the purchaser for the issuance or sale of one or more of these instruments to any individual purchaser which involves currency in amounts of $3,000 to $10,000, inclusive. Failure to aggregate multiple monetary instrument purchases Section 1010.415(b) of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to treat contemporaneous purchases of the same or different instruments totaling $3,000 or more in cash as one purchase. Multiple purchases during one business day totaling $3,000 or more must be treated as one purchase if an individual employee, director, officer, or partner of the covered financial institution has knowledge that these purchases have occurred. Failure to retain records of cash purchases of monetary instruments for five years Section 1010.415(c) of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to retain for five years required records relating to cash purchases of monetary instruments in amounts of $3,000 to $10,000, inclusive, and to make those records available to the Secretary of the Treasury, at any time, upon request. Failure to retain records of loans over $10M Section 1010.410(a) of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to retain a record of each extension of credit over $10,000, including the name and address of the borrower and the amount, date, and nature or purpose of the loan. Failure to retain instructions of transactions over $10M sent outside the U.S. Section 1010.410(b) and (c) of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to retain a record of each instruction given or received regarding a remittance or transfer of funds, currency, or other monetary instruments of more than $10,000 sent outside of the U.S.

64,000

65,000

65,001

65,002

66,000

66,001

Revised 5/3/2023

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