and I will ask my staff counsel in that area to be in contact with you, because I will be doing that the latter part of August. Mr. ZITO. We would be glad to be of help. Mr. MCCOLLUM. Thank you. I yield back the balance of my time. Chairman MINISH. Mr. Frank? Chairman MINISH. Gentlemen, thank you very much. And I want to say to each and every one of you what we said to the others, that we do not consider these hearings adversarial. We're looking for cooperation. We want to work with you, and if there is some area where you gentlemen feel that the committee ought to be made aware of something or if there is something we can do, pick up the phone and let yourself be heard. Thank you very much. [Whereupon, at 11:45 a.m., the hearing was adjourned.] [The following currency transaction report forms were submitted for inclusion in the record:] Form 4789. (Rev. Sept. 1980) Department of the Treasury Internal Revenue Service Part 1 Name (Last) Currency Transaction Report File a separate report for each transaction Identity of individual who conducted this transaction with the financial institution Number and Street City Method of verifying identification: Driver's permit Passport Social Security Number Business, occupation, or profession Part II Individual or organization for whom this transaction was completed (Complete only if different from Part I) Part IV Description of transaction. If more space is needed, attach a separate schedule and check this box 6. If a check was involved in this transaction, please furnish the following information (See Instructions): General Instructions (Each applicable item must be completed.) Who Must File.-Each financial institution must file a Form 4789 for each deposit, withdrawal, exchange of currency, or other payment or transfer, by, through, or to that financial institution, which involves a transaction in currency of more than $10,000. Multiple transactions by or for any person which in any one day total more than $10,000 should be treated as a single transaction, if the financial institution is aware of them. Exceptions.-Banks do not have to file Form 4789 for transactions with Federal Reserve Banks, Federal Home Loan Banks, or other domestic banks. Banks do not have to file Form 4789 for the following transactions if the amounts involved are reasonable and customary in the course of the customer's business or activities: (1) deposits or withdrawals of currency from an existing account by an established depositor who is a U.S. resident and who (a) operates a retail business in the United States (ex- (2) deposits or withdrawals, exchanges of currency, or other payments and transfers by local, state, or Federal government agencies; (3) withdrawals for payroll purposes from an existing account by an established depositor who is a U.S. resident and who operates a firm that regularly withdraws more than $10,000 to pay employees in currency. Banks must keep a record of customers whose transactions are not reported because of exceptions (1) through (3) above. (See 31 CFR, section 103.22 for details about what to include in this record.) Nonbank financial institutions do not have to report transactions with commercial banks. When and Where to File.-File this form by the 15th day after the date of the transaction with the Internal Revenue Service, Ogden, Utah 84201, or hand carry it to your local IRS office. Keep a copy of each Form 4789 for 5 years from the date you file it. Identifying Number.-For individuals this is the social security number. For others it is the employer identification number. Identification Required.-Before completing a transaction, a financial institution must verify and record (1) the name and address of the individual presenting the transaction and (2) the identity, account number, and taxpayer identifying number (if any) of the individual or organization for whose account the transaction is being made. Use a passport or other official docu. ment showing nationality to verify the identity of an alien or nonresident of the United States. Use a document like a driver's license, etc., normally accepted as a means of identification when cashing checks, to verify the identity of anyone else. In each case, record on this form the method of identification used. Penalties.-Civil and criminal penalties are provided for fail. ure to file a report or to supply information, and for filing a false or fraudulent report. See 31 CFR, sections 103.47 and 103.49. Specific Instructions Part 1-(1) In the address section, enter the permanent street address of the individual conducting the transaction. (2) In the social security block, enter the social security number of the individual conducting the transaction. If the individual has no number, write "None" in this block. (3) Check the appropriate box and enter the number of the document used to verify the identity of the individual conducting the transaction. Part I.-(1) For individuals, enter last name, first name, and middle initial, if any, in the name block in that order. For all others, enter the complete organization name. (2) In the identifying number block, enter the social security number or employer identification number. Part Part IV, line 6.-Complete this line if a check is cashed or a bank check is purchased with currency. III.-Check the appropriate box and enter the appropriate customer's account number. Part V.-Institutions may also enter in the name and address block other identifying information. Signature. This report must be signed by an authorized individual. Also type or print the name of the authorized signer. Definitions Bank. Each agent, agency, branch, or office in the United States of a foreign bank and each agency, branch, or office in the United States of any person doing business in one or more of the capacities listed below: (1) a commercial bank or trust company organized under the laws of any state or of the United States; (2) a private bank; (3) a savings and loan association or a building and loan association organized under the laws of any state or of the United States; (4) an insured institution as defined in section 401 of the National Housing Act; (5) a savings bank, industrial bank, or other thrift institution; (6) a credit union organized under the laws of any state or of the United States; and (7) any other organization chartered under the banking laws of any state and subject to the supervision of the bank supervisory authorities of a state. Currency. The coin and currency of the United States or of any other country, which circulate in and are customarily used and accepted as money in the country in which issued. It includes United States silver certificates, United States notes, and Federal Reserve notes, but does not include bank checks or other negotiable instruments not customarily accepted as money. Financial Institution.-Each agency, branch, or office in the United States of any person doing business in one or more of the capacities listed below: (1) a bank; (2) a broker or dealer in securities, registered or required to be registered with SEC under the Securities Exchange Act of 1934; (3) a person who engages as a business in dealing in or exchanging currency (for example, a dealer in foreign exchange or a person engaged primarily in the cashing of checks); (4) a person who engages as a business in issuing, selling, or redeeming travelers' checks, money orders, or similar instruments, except one who does so as a selling agent exclusively, or as an incidental part of another business; (5) a licensed transmitter of funds, or other person engaged in the business of transmitting funds abroad for others. Person. An individual, corporation, partnership, trust or estate, joint stock company, association, syndicate, joint venture, or other unincorporated organization or group, and all entities treated as legal personalities. Transaction in Currency.-A transaction involving the physical transfer of currency from one person to another. A transaction in currency does not include a transfer of funds by means of bank check, bank draft, wire transfer, or other written order that does not include the physical transfer of currency. General Instructions This report is required by Treasury Department regulations (31 Code of Federal Regulations 103). Who Must File.-Beginning July 1, 1972, each financial institution (as described in these instructions) shall file a report of each deposit, withdrawal, exchange of currency or other payment or transfer, by, through, or to such financial institution, which involves a transaction in currency of more than $10,000. Exceptions.-Financial institutions are not required to file Form 4789 for transactions: (1) with Federal Reserve Banks or Federal Home Loan Banks; (2) solely with, or originated by, financial institutions or foreign banks; or (3) between a bank and established customers maintain. ing a deposit relationship with the bank, in amounts which the bank may reasonably conclude do not exceed amounts commensurate with the customary conduct of the customer's business, industry or profession. However, upon request each bank shall submit a report listing those customers who engage in transactions which were not reported because of the exemption in (3). When and Where to File.-This report shall be filed on or before the 45th day following the date of the transaction with the Internal Revenue Service Center, 11601 Roosevelt Boulevard, 'Philadelphia, Pennsylvania 19155. Forms may be ob tained from any Internal Revenue Service office. Identifying Number.-Social security number or employer identification number if other than individual. Identification Required.-Before any transaction is effected a financial institution shall verify and record the identity, and record the account number on its books or the social security or taxpayer identification number, if any, of a person with whom or for whose account such transaction is to be effected. Verification of identity for a customer of the financial institution depositing or withdrawing funds may be by reference to his account or other number on the books of the institution. Verification of identity in any other case may be by examina. tion, for example, of a driver's license, passport, alien identification card, or other appropriate document normally acceptable as a means of identification. Penalties.-Civil and criminal penalties are provided for failure to file a report or to supply information, and for filing a false or fraudulent report. See sections 103.47 and 103.49 of the regulations. Specific Instructions Part 1-(1) In the address block, enter the permanent address of the person conducting the transaction. (2) In the social security block, enter the social security number of the person conducting the transaction. If the person has no number, write "None" in this block. Part 11.-(1) In the name block, individuals should enter their last name, first name and middle initial, if any, in that order. All others should enter their complete organization name. (2) In the identifying number block, enter the social security number or employer identification number. Part III, line 6.-This part should be completed only where a check is cashed or a bank check is purchased with currency. Part IV. See instruction "Identification Required," above. Part V.-Institutions may also enter in the name and address block other identifying information. Definitions Bank. Each agent, agency, branch or office within the United States of a foreign bank and each agency, branch or office within the United States of any person doing business in one or more of the capacities listed below: (1) a commercial bank or trust company organized under the laws of any state or of the United States; (2) a private bank; (3) a savings and loan association or a building and loan association organized under the laws of any state or of the United States; (4) an insured institution as defined in section 401 of the National Housing Act; (5) a savings bank, industrial bank or other thrift institution; (6) a credit union organized under the laws of any state or of the United States; and (7) any other organization chartered under the banking laws of any state and subject to the supervision of the bank supervisory authorities of a state. Currency. The coin and currency of the United States or of any other country, which circulate in and are customarily used and accepted as money in the country in which issued. It includes United States silver certificates, United States notes and Federal Reserve notes, but does not include bank checks or other negotiable instruments not customarily accepted as money. Financial Institution.—Each agency, branch or office within the United States of any person doing business in one or more of the capacities listed below: (1) a bank; (2) a broker or dealer in securities, registered or required to be registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934; (3) a person who engages as a business in dealing in or exchanging currency as, for example, a dealer in foreign exchange or a person engaged primarily in the cashing of checks; (4) a person who engages as a business in the issuing. selling or redeeming of travelers' checks, money orders, or similar instruments, except one who does so as a selling agent exclusively, or as an incidental part of another business; (5) an operator of a credit card system which issues, or authorizes the issuance of, credit cards that may be used for the acquisition of monetary instruments, goods, or services outside the United States. (6) a licensed transmitter of funds, or other person engaged in the business of transmitting funds abroad for others. Person. An individual, a corporation, a partnership, a trust or estate, a joint stock company, an association, a syn. dicate, joint venture, or other unincorporated organization or group, and all entities cognizable as legal personalities. Transaction in Currency.-A transaction involving the phys. ical transfer of currency from one person to another. A trans. action which is a transfer of funds by means of bank check, bank draft, wire transfer, or other written order, and which does not include the physical transfer of currency is not a transaction in currency within the meaning of this part. |