Operational For By Commercial Banks With The Treasury Regulations On This is a guide to help you comply with the "Regulations on Financial Recordkeeping and Reporting of Currency and Foreign Transactions" issued by the Treasury. It was first published in 1972, but has been updated to reflect all amendments and interpretations of the regulations through April 1, 1975. Future amendments or interpretations issued by the Treasury will be reported in Capital, the weekly publication of the American Bankers Association. The guide was prepared by the American Bankers Association for the use of its members. Questions or comments can be directed to Terrence H. Klasky, Government Relations Group, American Bankers Association, 1120 Connecticut Avenue, N.W., Washington, D. C. 20036. Copyright 1972, American Bankers Association Operational Guidelines OBJECTIVES The regulations have two objectives: To require the maintenance and preservation of records of financial transactions for possible use in criminal, tax, or regulatory proceedings. To identify those who attempt to further their illegal activities. by conducting their transactions in currency, by using foreign financial facilities, or by the international transportation of currency or bearer instruments. It should be pointed out that Public Law 91-508, which these regulations are implementing, makes it clear that any information in a bank's records required by the Secretary of the Treasury or other law enforcement agency will not be automatically made available for law enforcement purposes, but can only be obtained through existing legal process. DEPOSIT ACCOUNT RECORDS 1. Taxpayer Identification Numbers All banks must secure within 45 days after the opening of the account, subject to extension where the customer has applied for either an employer identification number or social security number, and maintain a record of the Taxpayer Identification Number of all savings and demand deposit accounts opened or reopened after June 30, 1972, and upon the automatic extension of certificates of deposit. In determining the proper identification number to be obtained for accounts the following guidelines should be followed: A Taxpayer Identification Number need not be secured in the following instances: a. Accounts for public funds opened by agencies and instrumentalities of Federal, State, local or foreign governments. b. Accounts for aliens who are: 1. Ambassadors, ministers, career diplomatic or consular offi cers. 2. Naval, military, or other attaches of foreign embassies and legations, or members of their immediate families. 3. Accredited representatives to international organizations entitled to enjoy privileges, exemptions, and immunities as an international organization under the International Organizations Immunities Act of December 29, 1945, and their immediate families. 4. Temporarily residing in the United States for a period not to exceed 180 days. 5. Not engaged in a trade or business in the United States who are attending a recognized college or university or any training program supervised or conducted by any agency of the Federal Government. c. Unincorporated subordinate units of a tax exempt central organization which are covered by a group exemption letter. d. Interest bearing accounts maintained by a person under 18 years of age opened as part of a school thrift savings program, provided the annual interest does not exceed $10. e. Christmas Club, vacation club and similar installment savings programs, provided the annual interest does not exceed $10. If a customer does not have a social security number or has lost his card or forgotten his number, he should contact the local office of the Social Security Administration. To obtain a new employer identification number the applicant should sign an authorization stamped by the bank on the back of Part 2 of Form SS-4 (Application for Employer Identification Number) containing the following language: Please furnish the EIN being applied for to: NAME ADDRESS SIGNATURE* TITLE *Individual who is authorized to sign Federal tax returns. The form should be completed in duplicate, and the bank should mail one copy to the Internal Revenue Service while retaining the other copy. Form SS-4 may be obtained from the nearest Internal Revenue Service Center. NOTE: Failure to secure such identification within the 45 day period will not be deemed a violation if (1) the bank has made a reasonable effort to secure such identification, including a mailed written request informing the customer that the bank |