31 U.S.C. § 5311 - Declaration of purpose

• Cite as: 31 U.S.C. § 5311

It is the purpose of this subchapter (except section 5315) to-

(1) require certain reports or records that are highly useful in-

(A) criminal, tax, or regulatory investigations, risk assessments, or proceedings; or

(B) intelligence or counterintelligence activities, including analysis, to protect against terrorism;

(2) prevent the laundering of money and the financing of terrorism through the establishment by financial institutions of reasonably designed risk-based programs to combat money laundering and the financing of terrorism;

(3) facilitate the tracking of money that has been sourced through criminal activity or is intended to promote criminal or terrorist activity;

(4) assess the money laundering, terrorism finance, tax evasion, and fraud risks to financial institutions, products, or services to-

(A) protect the financial system of the United States from criminal abuse; and

(B) safeguard the national security of the United States; and

(5) establish appropriate frameworks for information sharing among financial institutions, their agents and service providers, their regulatory authorities, associations of financial institutions, the Department of the Treasury, and law enforcement authorities to identify, stop, and apprehend money launderers and those who finance terrorists.

Cite as 31 U.S.C. § 5311

Source: Added Pub. L. 116-283, div. F, title LXI, §6101(a), Jan. 1, 2021, 134 Stat. 4549.

Notes from the Office of Law Revision Counsel

current through 5/22/2023

EDITORIAL NOTES

PRIOR PROVISIONS

A prior section 5311, Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 995; Pub. L. 107-56, title III, §358(a), Oct. 26, 2001, 115 Stat. 326, related to purpose of this subchapter, prior to repeal by Pub. L. 116-283, div. F, title LXI, §6101(a), Jan. 1, 2021, 134 Stat. 4549.

STATUTORY NOTES AND RELATED SUBSIDIARIES

SHORT TITLE

This subchapter and chapter 21 (§1951 et seq.) of Title 12, Banks and Banking, are each popularly known as the "Bank Secrecy Act". See Short Title note set out under section 1951 of Title 12.

SEVERABILITY

Pub. L. 116-283, div. F, title LXV, §65116511,, 134 Stat. 4633, provided that: "If any provision of this division [see Tables for classification], an amendment made by this division, or the application of such provision or amendment to any person or circumstance is held to be unconstitutional, the remainder of this division, the amendments made by this division, and the application of the provisions of such to any person or circumstance shall not be affected thereby."

PURPOSES

Pub. L. 116-283, div. F, §60026002,, 134 Stat. 4547, provided that: "The purposes of this division [see Tables for classification] are-

"(1) to improve coordination and information sharing among the agencies tasked with administering anti-money laundering and countering the financing of terrorism requirements, the agencies that examine financial institutions for compliance with those requirements, Federal law enforcement agencies, national security agencies, the intelligence community, and financial institutions;

"(2) to modernize anti-money laundering and countering the financing of terrorism laws to adapt the government and private sector response to new and emerging threats;

"(3) to encourage technological innovation and the adoption of new technology by financial institutions to more effectively counter money laundering and the financing of terrorism;

"(4) to reinforce that the anti-money laundering and countering the financing of terrorism policies, procedures, and controls of financial institutions shall be risk-based;

"(5) to establish uniform beneficial ownership information reporting requirements to-

"(A) improve transparency for national security, intelligence, and law enforcement agencies and financial institutions concerning corporate structures and insight into the flow of illicit funds through those structures;

"(B) discourage the use of shell corporations as a tool to disguise and move illicit funds;

"(C) assist national security, intelligence, and law enforcement agencies with the pursuit of crimes; and

"(D) protect the national security of the United States; and

"(6) to establish a secure, nonpublic database at FinCEN [Financial Crimes Enforcement Network of the Department of the Treasury] for beneficial ownership information."

[For definition of "financial institution" as used in section 6002 of Pub. L. 116-283 set out above, see section 6003 of Pub. L. 116-283 set out below.]

INTERAGENCY ANTI-MONEY LAUNDERING AND COUNTERING THE FINANCING OF TERRORISM PERSONNEL ROTATION PROGRAM

Pub. L. 116-283, div. F, title LXI, §61046104,, 134 Stat. 4555, provided that: "To promote greater effectiveness and efficiency in combating money laundering, the financing of terrorism, proliferation financing, serious tax fraud, trafficking, sanctions evasion and other financial crimes, the Secretary [of the Treasury] shall maintain and accelerate efforts to strengthen anti-money laundering and countering the financing of terrorism efforts through a personnel rotation program between the Federal functional regulators and the Department of Justice, the Federal Bureau of Investigation, the Department of Homeland Security, the Department of Defense, and such other agencies as the Secretary determines are appropriate."

[For definition of "Federal functional regulator" as used in section 6104 of Pub. L. 116-283 set out above, see section 6003 of Pub. L. 116-283 set out below.]

INTERNATIONAL COORDINATION

Pub. L. 116-283, div. F, title LXI, §6112(a), Jan. 1, 2021, 134 Stat. 4564, provided that: "The Secretary [of the Treasury] shall work with foreign counterparts of the Secretary, including through bilateral contacts, the Financial Action Task Force, the International Monetary Fund, the World Bank, the Egmont Group of Financial Intelligence Units, the Organisation for Economic Co-operation and Development, the Basel Committee on Banking Supervision, and the United Nations, to promote stronger anti-money laundering frameworks and enforcement of anti-money laundering laws."

ANNUAL REPORTING REQUIREMENTS

Pub. L. 116-283, div. F, title LXII, §62016201,, 134 Stat. 4565, provided that:

"(a) ANNUAL REPORT.-Not later than 1 year after the date of enactment of this Act [Jan. 1, 2021], and annually thereafter, the Attorney General, in consultation with the Secretary [of the Treasury], Federal law enforcement agencies, the Director of National Intelligence, Federal functional regulators, and the heads of other appropriate Federal agencies, shall submit to the Secretary a report that contains statistics, metrics, and other information on the use of data derived from financial institutions reporting under the Bank Secrecy Act (referred to in this subsection as the 'reported data'), including-

"(1) the frequency with which the reported data contains actionable information that leads to-

"(A) further procedures by law enforcement agencies, including the use of a subpoena, warrant, or other legal process; or

"(B) actions taken by intelligence, national security, or homeland security agencies;

"(2) calculations of the time between the date on which the reported data is reported and the date on which the reported data is used by law enforcement, intelligence, national security, or homeland security agencies, whether through the use of-

"(A) a subpoena or warrant; or

"(B) other legal process or action;

"(3) an analysis of the transactions associated with the reported data, including whether-

"(A) the suspicious accounts that are the subject of the reported data were held by legal entities or individuals; and

"(B) there are trends and patterns in cross-border transactions to certain countries;

"(4) the number of legal entities and individuals identified by the reported data;

"(5) information on the extent to which arrests, indictments, convictions, criminal pleas, civil enforcement or forfeiture actions, or actions by national security, intelligence, or homeland security agencies were related to the use of the reported data; and

"(6) data on the investigations carried out by State and Federal authorities resulting from the reported data.

"(b) REPORT.-Beginning with the fifth report submitted under subsection (a), and once every 5 years thereafter, that report shall include a section describing the use of data derived from reporting by financial institutions under the Bank Secrecy Act over the 5 years preceding the date on which the report is submitted, which shall include a description of long-term trends and the use of long-term statistics, metrics, and other information.

"(c) TRENDS, PATTERNS, AND THREATS.-Each report required under subsection (a) and each section included under subsection (b) shall contain a description of retrospective trends and emerging patterns and threats in money laundering and the financing of terrorism, including national and regional trends, patterns, and threats relevant to the classes of financial institutions that the Attorney General determines appropriate.

"(d) USE OF REPORT INFORMATION.-The Secretary shall use the information reported under subsections (a), (b), and (c)-

"(1) to help assess the usefulness of reporting under the Bank Secrecy Act to-

"(A) criminal and civil law enforcement agencies;

"(B) intelligence, defense, and homeland security agencies; and

"(C) Federal functional regulators;

"(2) to enhance feedback and communications with financial institutions and other entities subject to requirements under the Bank Secrecy Act, including by providing more detail in the reports published and distributed under section 314(d) of the USA PATRIOT Act ( 31 U.S.C. 5311 note);

"(3) to assist FinCEN [Financial Crimes Enforcement Network of Department of the Treasury] in considering revisions to the reporting requirements promulgated under section 314(d) of the USA PATRIOT Act ( 31 U.S.C. 5311 note); and

"(4) for any other purpose the Secretary determines is appropriate.

"(e) CONFIDENTIALITY.-Any information received by a financial institution under this section shall be subject to confidentiality requirements established by the Secretary."