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[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 31USC5321]
TITLE 31--MONEY AND FINANCE
SUBTITLE IV--MONEY
CHAPTER 53--MONETARY TRANSACTIONS
SUBCHAPTER II--RECORDS AND REPORTS ON MONETARY INSTRUMENTS TRANSACTIONS
Sec. 5321. Civil penalties
(a)(1) A domestic financial institution or nonfinancial trade or
business, and a partner, director, officer, or employee of a domestic
financial institution or nonfinancial trade or business, willfully
violating this subchapter or a regulation prescribed or order issued
under this subchapter (except sections 5314 and 5315 of this title or a
regulation prescribed under sections 5314 and 5315), or willfully
violating a regulation prescribed under section 21 of the Federal
Deposit Insurance Act or section 123 of Public Law 91-508, is liable to
the United States Government for a civil penalty of not more than the
greater of the amount (not to exceed $100,000) involved in the
transaction (if any) or $25,000. For a violation of section 5318(a)(2)
of this title or a regulation prescribed under section 5318(a)(2), a
separate violation occurs for each day the violation continues and at
each office, branch, or place of business at which a violation occurs or
continues.
(2) The Secretary of the Treasury may impose an additional civil
penalty on a person not filing a report, or filing a report containing a
material omission or misstatement, under section 5316 of this title or a
regulation prescribed under section 5316. A civil penalty under this
paragraph may not be more than the amount of the monetary instrument for
which the report was required. A civil penalty under this paragraph is
reduced by an amount forfeited under section 5317(b) of this title.
(3) A person not filing a report under a regulation prescribed under
section 5315 of this title or not complying with an injunction under
section 5320 of this title enjoining a violation of, or enforcing
compliance with, section 5315 or a regulation prescribed under section
5315, is liable to the Government for a civil penalty of not more than
$10,000.
(4) Structured Transaction Violation.--
(A) Penalty authorized.--The Secretary of the Treasury may
impose a civil money penalty on any person who violates any
provision of section 5324.
(B) Maximum amount limitation.--The amount of any civil money
penalty imposed under subparagraph (A) shall not exceed the amount
of the coins and currency (or such other monetary instruments as the
Secretary may prescribe) involved in the transaction with respect to
which such penalty is imposed.
(C) Coordination with forfeiture provision.--The amount of any
civil money penalty imposed by the Secretary under subparagraph (A)
shall be reduced by the amount of any forfeiture to the United
States in connection with the transaction with respect to which such
penalty is imposed.
(5) Foreign Financial Agency Transaction Violation.--
(A) Penalty authorized.--The Secretary of the Treasury may
impose a civil money penalty on any person who willfully violates or
any person willfully causing any violation of any provision of
section 5314.
(B) Maximum amount limitation.--The amount of any civil money
penalty imposed under subparagraph (A) shall not exceed--
(i) in the case of violation of such section involving a
transaction, the greater of--
(I) the amount (not to exceed $100,000) of the
transaction; or
(II) $25,000; and
(ii) in the case of violation of such section involving a
failure to report the existence of an account or any identifying
information required to be provided with respect to such
account, the greater of--
(I) an amount (not to exceed $100,000) equal to the
balance in the account at the time of the violation; or
(II) $25,000.
(6) Negligence.--
(A) In general.--The Secretary of the Treasury may impose a
civil money penalty of not more than $500 on any financial
institution or nonfinancial trade or business which negligently
violates any provision of this subchapter or any regulation
prescribed under this subchapter.
(B) Pattern of negligent activity.--If any financial institution
or nonfinancial trade or business engages in a pattern of negligent
violations of any provision of this subchapter or any regulation
prescribed under this subchapter, the Secretary of the Treasury may,
in addition to any penalty imposed under subparagraph (A) with
respect to any such violation, impose a civil money penalty of not
more than $50,000 on the financial institution or nonfinancial trade
or business.
(7) Penalties for international counter money laundering
violations.--The Secretary may impose a civil money penalty in an amount
equal to not less than 2 times the amount of the transaction, but not
more than $1,000,000, on any financial institution or agency that
violates any provision of subsection (i) or (j) of section 5318 or any
special measures imposed under section 5318A.
(b) Time Limitations for Assessments and Commencement of Civil
Actions.--
(1) Assessments.--The Secretary of the Treasury may assess a
civil penalty under subsection (a) at any time before the end of the
6-year period beginning on the date of the transaction with respect
to which the penalty is assessed.
(2) Civil actions.--The Secretary may commence a civil action to
recover a civil penalty assessed under subsection (a) at any time
before the end of the 2-year period beginning on the later of--
(A) the date the penalty was assessed; or
(B) the date any judgment becomes final in any criminal
action under section 5322 in connection with the same
transaction with respect to which the penalty is assessed.
(c) The Secretary may remit any part of a forfeiture under
subsection (c) or (d) \1\ of section 5317 of this title or civil penalty
under subsection (a)(2) of this section.
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\1\ So in original. Section 5317 does not contain a subsec. (d).
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(d) Criminal Penalty Not Exclusive of Civil Penalty.--A civil money
penalty may be imposed under subsection (a) with respect to any
violation of this subchapter notwithstanding the fact that a criminal
penalty is imposed with respect to the same violation.
(e) Delegation of Assessment Authority to Banking Agencies.--
(1) In general.--The Secretary of the Treasury shall delegate,
in accordance with section 5318(a)(1) and subject to such terms and
conditions as the Secretary may impose in accordance with paragraph
(3), any authority of the Secretary to assess a civil money penalty
under this section on depository institutions (as defined in section
3 of the Federal Deposit Insurance Act) to the appropriate Federal
banking agencies (as defined in such section 3).
(2) Authority of agencies.--Subject to any term or condition
imposed by the Secretary of the Treasury under paragraph (3), the
provisions of this section shall apply to an appropriate Federal
banking agency to which is delegated any authority of the Secretary
under this section in the same manner such provisions apply to the
Secretary.
(3) Terms and conditions.--
(A) In general.--The Secretary of the Treasury shall
prescribe by regulation the terms and conditions which shall
apply to any delegation under paragraph (1).
(B) Maximum dollar amount.--The terms and conditions
authorized under subparagraph (A) may include, in the
Secretary's sole discretion, a limitation on the amount of any
civil penalty which may be assessed by an appropriate Federal
banking agency pursuant to a delegation under paragraph (1).
(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 999; Pub. L. 98-473, title II,
Sec. 901(a), Oct. 12, 1984, 98 Stat. 2135; Pub. L. 99-570, title I,
Secs. 1356(c)(1), 1357(a)-(f), (h), Oct. 27, 1986, 100 Stat. 3207-24--
3207-26; Pub. L. 100-690, title VI, Sec. 6185(g)(2), Nov. 18, 1988, 102
Stat. 4357; Pub. L. 102-550, title XV, Secs. 1511(b), 1525(b),
1535(a)(2), 1561(a), Oct. 28, 1992, 106 Stat. 4057, 4065, 4066, 4071;
Pub. L. 103-322, title XXXIII, Sec. 330017(a)(1), Sept. 13, 1994, 108
Stat. 2149; Pub. L. 103-325, title IV, Secs. 406, 411(b), 413(a)(1),
Sept. 23, 1994, 108 Stat. 2247, 2253, 2254; Pub. L. 104-208, div. A,
title II, Sec. 2223(3), Sept. 30, 1996, 110 Stat. 3009-415; Pub. L. 107-
56, title III, Secs. 353(a), 363(a), 365(c)(2)(B)(i), Oct. 26, 2001, 115
Stat. 322, 332, 335.)
Historical and Revision Notes
----------------------------------------------------------------------------------------------------------------
Revised Section Source (U.S. Code) Source (Statutes at Large)
----------------------------------------------------------------------------------------------------------------
5321(a)(1)........................... 31:1054(b)(last sentence Oct. 26, 1970, Pub. L. 91-508, Secs.
related to civil penalties). 205(b)(last sentence related to civil
penalties), 207, 233, 234, 84 Stat.
1120, 1123.
31:1056(a).
5321(a)(2)........................... 31:1103.
5321(a)(3)........................... 31:1143(a), (b)(words after Sept. 21, 1973, Pub. L. 93-110, Sec.
last comma). 203(a), (b)(words after last comma), 87
Stat. 353.
5321(b).............................. 31:1056(b).
5321(c).............................. 31:1104.
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In subsection (a)(1), the words ``or a regulation prescribed under
this subchapter'' are added because of the restatement. The words
``(except section 5315 of this title or a regulation prescribed under
section 5315)'' are added because 31:1141-1143 was not enacted as a part
of the Currency and Foreign Transactions Reporting Act that is restated
in this subchapter. The words ``is liable to the United States
Government for'' are substituted for ``the Secretary may assess upon''
in 31:1056(a) for consistency in the revised title and with other titles
of the United States Code. The words ``the purposes of both civil and
criminal penalties for'' in 31:1054(b)(last sentence)(related to civil
penalties) are omitted, and the words ``or a regulation prescribed under
section 5318(2)'' are added, because of the restatement. The words ``the
violation continues'' are added for consistency in the revised title and
with other titles of the Code. The word ``separate'' before ``office''
is omitted as surplus.
In subsection (a)(2), the word ``impose'' is substituted for
``assess'' for consistency in the revised title and with other titles of
the Code. The word ``additional'' is substituted for 31:1103 (last
sentence words before last comma) to eliminate unnecessary words. The
words ``or a regulation prescribed under section 5316'' are added
because of the restatement. The words ``amount of this'', ``to be
filed'', and ``actually'' are omitted as surplus.
Subsection (a)(3) is substituted for 31:1143(a) and (b)(words after
last comma) for clarity and consistency and because of the restatement.
In subsection (b), the words ``in the discretion of'', ``in the name
of the United States'', and ``of any person'' are omitted as surplus.
In subsection (c), the words ``in his discretion'' and ``upon such
terms and conditions as he deems reasonable and just'' are omitted as
surplus. The word ``civil'' is added for clarity.
References in Text
Sections 3 and 21 of the Federal Deposit Insurance Act, referred to
in subsecs. (a)(1) and (e)(1), are classified to sections 1813 and
1829b, respectively, of Title 12, Banks and Banking.
Section 123 of Public Law 91-508, referred to in subsec. (a)(1), is
classified to section 1953 of Title 12, Banks and Banking.
Codification
Another section 365(c) of Pub. L. 107-56 amended the table of
sections at the beginning of this chapter.
Amendments
2001--Subsec. (a)(1). Pub. L. 107-56, Secs. 353(a), 365(c)(2)(B)(i),
inserted ``or nonfinancial trade or business'' after ``financial
institution'' in two places, ``or order issued'' after ``subchapter or a
regulation prescribed'', and ``, or willfully violating a regulation
prescribed under section 21 of the Federal Deposit Insurance Act or
section 123 of Public Law 91-508,'' after ``sections 5314 and 5315)''.
Subsec. (a)(6). Pub. L. 107-56, Sec. 365(c)(2)(B)(i), inserted ``or
nonfinancial trade or business'' after ``financial institution''
wherever appearing.
Subsec. (a)(7). Pub. L. 107-56, Sec. 363(a), added par. (7).
1996--Subsec. (a)(7). Pub. L. 104-208 struck out par. (7) which read
as follows:
``(7) Financial institution identification violations.--
``(A) Penalty authorized.--The Secretary may impose a civil
money penalty on any person who willfully violates any provision of
section 5327 or any regulation prescribed under such section.
``(B) Maximum amount limitation.--The amount of any civil money
penalty imposed under subparagraph (A) shall not exceed $10,000 per
day for each day during which a report remains unfiled or a report
containing a material omission or misstatement of fact remains
uncorrected.''
1994--Subsec. (a)(4)(A). Pub. L. 103-325, Sec. 411(b), struck out
``willfully'' before ``violates''.
Subsec. (a)(5)(A). Pub. L. 103-322, Sec. 330017(a)(1) and Pub. L.
103-325, Sec. 413(a)(1), amended subpar. (A) identically, inserting
``any violation of'' after ``causing''.
Subsec. (e). Pub. L. 103-325, Sec. 406, added subsec. (e).
1992--Subsec. (a)(4)(C). Pub. L. 102-550, Sec. 1525(b), struck out
``under section 5317(d)'' after ``forfeiture to the United States''.
Subsec. (a)(5)(A). Pub. L. 102-550, Sec. 1535(a)(2), inserted ``or
any person willfully causing'' after ``willfully violates''.
Subsec. (a)(6). Pub. L. 102-550, Sec. 1561(a), amended par. (6)
generally. Prior to amendment, par. (6) read as follows: ``Negligence.--
The Secretary of the Treasury may impose a civil money penalty of not
more than $500 on any financial institution which negligently violates
any provision of this subchapter or any regulation prescribed under this
subchapter.''
Subsec. (a)(7). Pub. L. 102-550, Sec. 1511(b), added par. (7).
1988--Subsec. (a)(1). Pub. L. 100-690 inserted ``(if any)'' after
``transaction''.
1986--Subsec. (a)(1). Pub. L. 99-570, Secs. 1356(c)(1), 1357(b),
substituted ``sections 5314 and 5315'' for ``section 5315'' in two
places, substituted ``5318(a)(2)'' for ``5318(2)'' in two places, and
substituted ``the greater of the amount (not to exceed $100,000)
involved in the transaction or $25,000'' for ``$10,000''.
Subsec. (a)(4). Pub. L. 99-570, Sec. 1357(a), added par. (4).
Subsec. (a)(5). Pub. L. 99-570, Sec. 1357(c), added par. (5).
Subsec. (a)(6). Pub. L. 99-570, Sec. 1357(d), added par. (6).
Subsec. (b). Pub. L. 99-570, Sec. 1357(e), amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: ``The
Secretary may bring a civil action to recover a civil penalty under
subsection (a)(1) or (2) of this section that has not been paid.''
Subsec. (c). Pub. L. 99-570, Sec. 1357(h), substituted ``subsection
(c) or (d) of section 5317'' for ``section 5317(b)''.
Subsec. (d). Pub. L. 99-570, Sec. 1357(f), added subsec. (d).
1984--Subsec. (a)(1). Pub. L. 98-473 substituted ``$10,000'' for
``$1,000''.
Termination Date of 2001 Amendment
Amendments by title III of Pub. L. 107-56 to terminate effective on
and after the first day of fiscal year 2005 if Congress enacts a joint
resolution that such amendments no longer have the force of law, see
section 303 of Pub. L. 107-56, set out as a Four-Year Congressional
Review; Expedited Consideration note under section 5311 of this title.
Effective Date of 1992 Amendment
Section 1561(b) of Pub. L. 102-550 provided that: ``The amendment
made by subsection (a) [amending this section] shall apply with respect
to violations committed after the date of the enactment of this Act
[Oct. 28, 1992].''
Effective Date of 1986 Amendment
Amendment by section 1357(a) of Pub. L. 99-570, applicable with
respect to violations committed after the end of the 3-month period
beginning Oct. 27, 1986, see section 1364(b) of Pub. L. 99-570, set out
as a note under section 5317 of this title.
Section 1364(c) of Pub. L. 99-570 provided that: ``The amendments
made by section 1357 (other than subsection (a) of such section)
[amending sections 5321 and 5322 of this title] shall apply with respect
to violations committed after the date of the enactment of this Act
[Oct. 27, 1986].''
Section Referred to in Other Sections
This section is referred to in section 5330 of this title; title 12
section 1829b.