Guidance on the Recordkeeping Rules

FinCEN and the FRB have released guidance on the new recordkeeping rules for funds transfers and transmittals of funds. The guidelines are in Q&A format and clarify several issues.

First, the guidelines explain that the rule applies to more than the movement of funds by wire. The guidelines include examples such as transfer of funds between accounts in the same bank if the accounts are owned by different parties, transfers initiated by telephone, fax, and electronic message.

The guidelines clarify terms such as "originator", "transmitter" and provide more detail on recordkeeping procedures for compliance. The Q&A includes more detailed advice for the $3,000 threshold, the five year recordkeeping requirement, and aggregating transmittals.

Copyright © 1996 Compliance Action. Originally appeared in Compliance Action, Vol. 1, No. 9, 6/96