BSA/AML Examiner Training Series 2

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

Code

Failure to retain records for funds transfers of $3M or more Section 1020.410(a)(1)(i) of the Treasury Department’s Bank Secrecy Act regulations requires that for each funds transfer of $3,000 or more, a covered financial institution must retain a record of the name and address of the originator, the amount of the funds transfer, the date of the funds transfer, any payment instructions received from the originator with the payment order, the identity of the beneficiary’s financial institution, and if received with the payment order, the name and address of the beneficiary, the account number of the beneficiary, and any other specific identifier of the beneficiary. Failure to retain records as intermediary of funds transfers of $3M or more Section 1020.410(a)(1)(ii) of the Treasury Department’s Bank Secrecy Act regulations requires each covered financial institution acting as an intermediary in a funds transfer of $3,000 or more to retain either the original or a microfilm, other copy, or electronic record of the payment order. Failure to retain payment orders of $3M or more as beneficiary's financial institution Section 1020.410(a)(1)(iii) of the Treasury Department’s Bank Secrecy Act regulations requires each financial institution to retain either the original or a microfilm, other copy, or electronic record of each payment order of $3,000 or more that it accepts as a beneficiary’s financial institution. Failure to obtain required information for transfers of $3M or more by non- customer originators Section 1020.410(a)(2)(i) and (ii) of the Treasury Department’s Bank Secrecy Act regulations requires additional information for funds transfers of $3,000 or more when the originator does not have an established relationship with the covered financial institution. Failure to retain additional information on non-customer beneficiaries of payments of $3M or more Section 1020.410(a)(3)(i) and (ii) of the Treasury Department’s Bank Secrecy Act regulations requires information in addition to that found in Section 1020.410(a)(1)(iii) for payment orders of $3,000 or more received for a beneficiary that does not have an established relationship with the covered financial institution. Failure to retain funds transfer originator information by name and account number Section 1020.410(a)(4) of the Treasury Department’s Bank Secrecy Act regulations requires that a covered financial institution retain information for originators retrievable by reference to the name of the originator, and if the originator is an established customer with an account used to transfer funds, the information also must be retrievable by account number.

66,002

66,003

66,004

66,005

66,006

66,007

Revised 5/3/2023

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