Chapter I-Monetary Offices, Dept. of the Treas. (b) Reports required to be filed by § 103.23(a) shall be filed at the time of entry into the United States or at the time of departure, mailing or shipping from the United States, unless otherwise directed or permitted by the Commissioner of Customs. They shall be filed with the Customs officer in charge at any Customs port of entry or departure, or as otherwise permitted or directed by the Commissioner of Customs. If the currency or other monetary instruments with respect to which a report is required do not ac company a person entering or departing from the United States, such reports may be filed by mail on or before the date of entry, departure, mailing or shipping, with the Commissioner of Customs, Attention: Currency Transportation Reports. Washington, D.C. 20226. They shall be on forms to be prescribed by the Secretary and all information called for in such forins shall be furnished. (c) Reports required to be tiled by 103.23(b) shall be filed with the Commissioner of Customs within 30 days after receipt of the currency or other monetary instruments. They may be filed with the Customs officer in charge at any port of entry or de... parture, or by mail addressed to the Commissioner of Customs. Attention: Currency Transportation Reports. Washington, D.C. 20226. They shall be on forms to be prescribed by the Secretary and all information called for in such forms st:all be furnished. (d) Forms to be used in making the reports required by $$ 103.22 and 103.23 may be obtained from any Internal Revenue office; in addition, forms to be used in making the reports required by $103.23 may be obtained from any office of the Bureau of Customs. (37 FR 6912, Apr. 5, 1972. as amended at 45 FR 37820, June 5, 1980) $103.26 Identification required. Before effecting any transaction with respect to which a report is required under paragraph (a) of § 103.22. a financial institution shall verify and record the name and address of the individual presenting a transaction, as well as record the identity. account § 103.32 number, and the social security or taxpayer identification number, if any, of any person or entity for whose or which account such transaction is to be effected. Verification of the identity of an individual who indicates that he is an alien or is not a resident of the United States must be made by passport, alien identification card, or other official document evidencing nationality or residence. Verification of identity in any other case may be by examination of a document normally acceptable as a means of identification when cashing checks, for example, a driver's license or a credit card. In each instance, the method used in verifying the identity of the customer shall be recorded on the report. [45 FR 37820, June 5, 1980) Subpart C-Records Required To Be 3103.3; Determination by the Secretary. The Secretary hereby determines that the records required to be kept by this subpart have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings. $103.32 Records to be made and retained by persons having financial interests in foreign financial accounts. Records of accounts required by $ 103.24 to be reported on a Federal income tax return shall be retained by each person having a financial interest in any such account. Such records shall contain the name in which each such account is maintained, the number or other designation of such account, the name and address of the foreign bank or other person with whom such account is maintained, the type of such account, and the maximum value of each such account during the reporting period. Such records shall be retained for a period of 5 years and shall be kept at all times available for inspection as authorized by law. In the computation of the period of 5 years, there shall be disre garded any period beginning with a date on which the taxpayer is indicted or information instituted on account of the filing of a false or fraudulent § 103.33 Federal income tax return or failing to file a Federal income tax return, and ending with the date on which final disposition is made of the criminal proceeding. § 103.33 Records to be made and retained by financial institutions. Each financial institution shall retain either the original or a microfilm or other copy or reproduction of each of the following: (a) A record of each extension of credit in an amount in excess of $5,000, except an extension of credit secured by an interest in real proper ty, which record shall contain the name and address of the person to whom the extension of credit is made. the amount thereof, the nature or purpose thereof, and the date thereof; (b) A record of each advice, request. or instruction received regarding a transaction which results in the transfer of funds, or of currency, other monetary instruments, checks, investment securities, or credit, of more than $10 000 to a person, account, or place outside the United States: (c) A record of each advice, request. or instruction given to another financial institution or other person located within or without the United States, regarding a transaction intended to result in the transfer of funds, or of currency, other monetary instruments. checks. investment securities. or credit, of more than $10,000 to a person, account or place outside the United States; $103.34 Additional records to be made and retained by banks. (a)(1) With respect to each certifi cate of deposit sold or redeemed after May 31, 1978, or each deposit or share account opened with a bank after June 30, 1972, a bank shall, within 45 days from the date such a transaction occurs or an account is opened, secure and maintain a record of the taxpayer identification number of the customer involved; or where the account or certificate is in the names of two or more persons, the bank shall secure the taxpayer identification number of a person having a financial interest in the certificate or account. In the event that a bank has been unable to secure, Titie 31-Money and Finance: Treasury within the 45-day period specified, the required identification, it shall nevertheless not be deemed to be in viola tion of this section if (i) it has made a reasonable effort to secure such identification, and (ii) it maintains a list containing the names, addresses, and account numbers of those persons from whom it has been unable to secure such identification, and makes the names. addresses, and account numbers of those persons available to the Secretary as directed by him. A bank acting as an agent for another person in the purchase or redemption of a certificate of depozit issued by another bank is responsible for obtaining and recording the required taxpayer identification, as well as for maintaining the records referred to in paragraphs (b) (11) ami (12) of this section. The issuing bank can satisfy the recordkeeping requirement by recording the name and address of the agent togettier with a description of the instrument and the date of the transac tion. (2) The 45-day period provided for in paragraph (a) (1) of this section shall be extended where the person opening the account has applied for a taxpayer identification or social security number on Form SS 4 or SS-5, until such time as the person maintaining the account has had a reasonable op. portunity to secure such number and furnish it to the bank. (3) A taxpayer identification number required under paragraph (a)(1) of this section need not be secured for accounts or transactions with the following: (1) Agencies and instrumentalities of Federal, State, local or foreign governments; (ii) judges, public officials, or clerks of courts of record as custodians of funds in controversy or under the control of the court; (D) aliens who are (A) ambassadors, ministers, career diplomatic or consular officers, or (B) naval, military or other attaches of foreign embassies and lega tions, and for the members of their immediate families; (iv) aliens who are accredited representatives of international organizations which are entitled to enjoy privileges, exemptions and immunities as an international organization under the International Organization Immunities Act of December 29, Chapter I-Monetary Offices, Dept. of the Treas. 1945 (22 U.S.C. sec. 288), and the mein bers of their immediate familie: (v) aliens temporarily residing in the United States for a period not 10 exceed 180 days; (vi) aliens 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 con. ducted by any agency of the Federal Government; (vii) unincorporated subordinate units of a tax exempt central organization which are covered by a group exemption letter, (viii) a person under 18 years of age with respect to an account opened as a part of a school thrift savings program, provided the annual interest is less than $10; (ix) a person opening a Christmas club, vacation club and similar installment savings programs provided the annual interest is less than $10; and (x) non-resident aliens who are not engaged in a trade or business in the United States. In instances deseribed in paragraphs (a)(3), (viii) and (ix) of this section, the bank shall, within 15 days following the end of any calendar year in which the interest accrued in that year is $10 or more se its best effort to secure and maintain the appropriate taxpayer identification number or application form therefor. (4) The rules and regulations issued by the Internal Revenue Service under section 6109 of the Internal Revenue Code of 1951 shall determine what constitutes a vaxpayer identification number and whose number shall be obtained in the case of an account Inaintained by one or more persons. (b) Each bank shall, in addition. retain either the original or a microfilm or other copy or reproduction of each of the following: (1) Each document granting signature authority over each deposit or share account; (2) Each statement. ledger card or other record on each deposit or share account, showing each transaction in. or with respect to, that account: § 103.34 calendar year or on each occasion on which such checks are issued, and which are (i) dividend checks, (ii) payroll checks, (iii) employee benefit checks, (iv) insurance clain checks, (v) medical benefit checks, (vi) checks drawn on government agency accounts, (vii) checks drawn by brokers or dealers in securities, (viii) checks drawn on fiduciary accounts, (ix) checks drawn on other financial institutions, or (x) pension or annuity checks: (4) Each item in excess of $100 other than bank charges or periodic charges made pursuant to agreement with the customer), comprising a debit to a customer's deposit or share account, not required to be kept, and not specifically exempted, under paragraph (b) (3) of this section; (5) Each item, including checks, drafts, or transfers of credit, of more than $10,000 remitted or transferred to a person. account or place outside the United States; (6) A record of each remittance or transfer of funds, or of currency. othe: monetary instruments, checks, investment securities, or credit, of more than $10,000 to a person, accoun! 0: place outside the United States: (7) Each check or draft in an amount in excess of $10,000 drawn on or issued by a foreign bank which the domestic bank has paid or presented to a nonbank drawee for payment; (3) Each item, including checks, drafts or transfers of credit, of more than $10.000 received directly and not through a domestic financial institution, by letter, cable or any other means, from a bank, broker or dealer in foreign exchange outside the United States; (9) A record of each receipt of currency, other monetary instruments, investment securities or checks, and of each transfer of funds or credit, of more than 310,000 received on any one occasion directly and not through a domestic financial institution, from a bank, broker or dealer in foreign exchange outside the United States; and (10) Records prepared or received by a bank in the ordinary course of business, which would be needed to reconstruct a demand deposit account and § 103.35 to trace a check in excess of $100 deposited in such account through its domestic processing system or to supply a description of a deposited check in excess of $100. This subparagraph shall be applicable only with respect to demand deposits. (11) A record containing the name, address, and taxpayer identification number, if available, of the purchaser of each certificate of deposit, as well as a description of the instrument, a notation of the method of payment, and the date of the transaction. (12) A record containing the name. address and taxpayer identification number, if available, of any person presenting a certificate of deposit for payment, as well as a description of the instrument and the date of the transaction. [38 FR 2175, Jan. 22, 1973, as amended at 38 FR 3509, Feb. 7, 1973; 43 FR 21672, May 19, 1978) § 103.35 Additional records to be made and retained by brokers and dealers in securities. (a)(1) With respect to each brokerage account opened with a broker or dealer in securities after June 30, 1972, by a person residing or doing business in the United States or a citizen of the United States, such broker or dealer shall within 45 days from the date such account is opened, secure and maintain a record of the taxpayer identification number of the person maintaining the account; or in the case of an account of one or more individuals, such broker or dealer shall secure and maintain a record of the social security number of an individual having a financial interest in that account. In the event that a broker or dealer has been unable to secure the identification required within the 45 day period specified, it shall neverthe less not be deemed to be in violation of this section if: (1) It has made a reasonable effort to secure such identification, and (ii) it maintains a list containing the namès, addresses, and account numbers of those persons from whom it has been unable to secure such identification, and makes the names, addresses, and account nunbers of those persons available to the Secretary as directed by him. Title 31-Money and Finance: Treasury (2) The 45-day period provided for in paragraph (a)(1) of this section shall be extended where the person opening the account has applied for a taxpayer identification or social security number on Form SS-4 or SS-5, until such time as the person maintaining the account has had a reasonable opportunity to secure such number and furnish it to the broker or dealer. (3) A taxpayer identification number for a deposit or share account required under paragraph (a)(1) of this section need not be secured in the following instances: (i) Accounts for public funds opened by agencies and instrumentalities of Federal, State, local, or foreign governments, (ii) accounts for aliens who are (a) ambassadors, ministers, career diplomatic or consular officers, or (b) naval, military or other attaches of foreign embassies, and legations, and for the members of their immediate families, (iii) accounts for aliens who are accredited representatives to international organizations which are entitled to enjoy privileges, exemptions. and immunities as an international organization under the International Organizations Immunities Act of December 29, 1945 (22 U.S.C. sec. 288), and for the members of their immediate families, (iv) aliens temporarily residing in the United States for a period not to exceed 180 days, (v} aliens 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, and (vi) unincorporated subordinate units of a tax exempt central organization which are covered by a group exemption ietter. (b) Every broker or dealer in securities shall, in addition, retain either the original or a microfilm or other copy or reproduction of each of the following: (1) Each document granting signature or trading authority over each customer's account; (2) Each record described in § 240.17a-3(a) (1), (2), (3), (5), (6), (7), (8), and (9) of Title 17, Code of Federal Regulations; (3) A record of each remittance or transfer of funds. or of currency. Chapter I-Monetary Offices, Dept. of the Treas. checks, other monetary instruments, investment securities, or credit, of more than $10,000 to a person, account, or place, outside the United States: (4) A record of each receipt of currency, other monetary instruments. checks, or investment securities and of each transfer of funds or credit, of more than $10,000 received on any one occasion directly and not through a domestic financial institution, from any person, account or place outside the United States. (37 FR 26518. Dec. 13 1972, as amended at 38 FR 2176, Jan. 22, 19731 €103.36 Nature of records and retention period. (a) Wherever it is required that there be retained either the original or a microfilm or other copy or reproduction of a check, draft, monetary instrument, investment security. or other similar instrument, there shall be retained a copy of both front and back of each such instrument or document, except that no copy need be retained of the back of any instrument or document which is entirely blank or which contains only standardized printed information, a copy of which is on file. (b) Records required by this subpart to be retained by financial institutions may be those made in the ordinary course of business by a financial institution. If no record is made in the ordinary course of business of any transaction with respect to which records are required to be retained by this subpart, then such a record shall be prepared in writing by the financial insti tution. (c) Records which are required by $103.34(b)(10) to be retained by banks shall be retained for a period of 2 years. All other records which are required by this subpart to be retained by financial institutions shail be retained for a period of 5 years. All such records shall be filed or stored in such a way as to be accessible within a reasonable period of time, taking into consideration the nature of the record. and the amount of time expired since the record was made. § 103.43 $103.37 Person outside the United States. For the purposes of this subpart, a remittance or transfer of funds, or of currency, other monetary instruments, checks, investment securities, or credit to the domestic account of a person whose address is known by the person making the remittance or transfer, to be outside the United States, shall be deemed to be a remittance or transfer to a person outside the United States, except that, unless otherwise directed by the Secretary, this section shall not apply to a transaction on the books of a domestic financial institution involv ing the account of a customer of such instatuation whose address is within approximately 50 miles of the location of the institution, or who is known to be temporarily outside the United States. 41-804 O - 85 - 7 |