TITLE 31

The regulations issued by the Secretary of the Treasury in 31 CFR Part 103 provide detailed requirements for financial recordkeeping and reporting of currency and foreign transactions. These regulations also give the IRS authority to enforce certain requirements and to investigate certain violations of Part 103. Title 31 CFR 103.56(b)(8) gives the IRS authority to examine for Title 31 compliance all financial institutions that are not currently examined by Federal bank supervisory agencies, excluding brokers or dealers in securities. Title 31 CFR 103.56(c)(2) gives the IRS authority to investigate all criminal violations of Title 31 (except with respect to reports of the transportation of currency or monetary instruments under 31 USC 5316).

For more information concerning Title 31 and money laundering, see IRM 9.5.5, Money Laundering and Currency Crimes.

The Title 31 criminal statutes within the jurisdiction of CI are discussed below.

Title 31 USC 5322(a) and (b) provide criminal penalties for willful violations of the reporting requirements, other than the requirement of reporting foreign currency transactions (31 USC 5315) and the prohibition against structuring transactions to evade reporting requirements (31 USC 5324).

In general, Title 31 USC 5324 prohibits structuring any transaction with one or more domestic financial institutions for the purpose of evading reporting requirements.

Title 31 USC 5324(a) prohibits engaging in any of the following acts for the purpose of evading reporting requirements:

Causing or attempting to cause a domestic financial institution to fail to file a Currency Transaction Report (CTR), or fail to make a log entry for purchases of bank checks and drafts, cashier's checks, money orders and traveler's checks over $3,000.

Causing or attempting to cause a domestic financial institution to file a CTR, or make a log entry for purchases of bank checks and drafts, cashier's checks, money orders and traveler's checks over $3,000, that contains a material omission or misstatement of fact.

Structuring or assisting in structuring, or attempting to structure or assist in structuring, any transaction with one or more domestic financial institutions.

The Money Laundering Suppression Act of 1994, Pub. L. 103-325 (September 23, 1994), amended 31 USC 5324 by adding a criminal penalty provision that does not include a "willfulness" requirement.

Title 31 USC 5331 requires that the receipt of more than $10,000 in coins or currency in one transaction (or two or more related transactions) by a person engaged in a non-financial trade or business be reported to the Financial Crimes Enforcement Network.

Title 26 USC 6050I (discussed above) is a parallel statute requiring trades and businesses to file Form 8300 when in receipt of more than $10,000 in cash from one transaction or two or more related transactions. The statute that forms the basis of the charge determines whether the investigation is covered by 26 USC 6103 disclosure restrictions (see subsection 9.1.3.3.1).

Title 31 USC 5332 prohibits smuggling more than $10,000 in currency or other monetary instruments into or out of the United States.