Report on U.S. Legislation Concerning Bank Records and Foreign Transactions

Extract

The bill deals with two major problem areas in law enforcement. The first is that of financial recordkeeping by domestic banks and certain other domestic financial institutions. The second is the use by American residents of foreign financial facilities located in jurisdictions with various types of secrecy laws.

The bill contains three substantive titles. Title I requires the Secretary of the Treasury to prescribe regulations whereby insured banks, insured institutions, and other financial institutions must maintain appropriate types of records which have, or may have, a high degree of usefulness in criminal, tax or regulatory investigations or proceedings. Title II provides for records and reports of domestic currency transactions, exports and imports of monetary instruments and records and reports of foreign transactions by residents or citizens of the United States or persons doing business therein. Title III amends Section 7(a) of the Securities and Exchange Act of 1934, to make it unlawful for persons to obtain or retain credit in violation of rules or regulations issued pursuant to that Section.