BSA & Customs Form 4790

Question:

As part of our BSA Exam we are being questioned about Customs Form 4790. Examiners are indicating that we should be filing this form for foreign wires over $10,000. The form indicates that individuals should file this form. What are banks obligations in regard to this form? Are there special forms or procedure that need to be followed for wires out of the country. Are there special rules under OFAC or the PATRIOT Act?

Answer:

Someone is really confused and I just hope it's not me. You are correct, banks normally do not file Form 4790. It was an issue several years ago, but "the powers that be" eventually reached the conclusion that the only time a bank might be responsible for filing the form was if it became directly aware that a customer had not filed it even though it was required. For example, the customer says "I just brought $12,000 in currency into the U.S. and did not file a Form 4790." Not a likely fact situation.

More to the point, Form 4790 is filed on monetary instruments (defined on the back of the form) and a wire transfer does not meet the definition. There are recordkeeping requirements for wire transfers, but no reporting requirements unless cash is involved.

Please call the EIC for your exam and have him or her review the instructions you received. If they are as you understood them, ask for a source of authority that we can all read.

First published on BankersOnline.com 06/2/03