BACKROUND ON BANK SECRECY ACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91B00390R000300230002-0
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 27, 2016
• Document Release Date: September 3, 2013
• Sequence Number: 2
• Publication Date: August 3, 1988
• Content Type: MEMO

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Declassified and Approved For Release 2013/09/03: CIA-RDP91B00390R000300230002-0
DEPARTMENT OF THE TREASURY
WASHINGTON
August 3, 1988
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MEMORANDUM FOR: Members, Interagency Group/Counterintelligence
SUBJECT: Background on Bank Secrecy Act (U)
As you may recall, at the recent IG/CI meeting I discussed the
Bank Secrecy Act (BSA) and suggested that BSA data might be useful
in the course of conducting counterintelligence investigations.
The following is a briet explanation Of the Act along with
information on how to request BSA data. (C)
The Bank Secrecy Act was enacted in 1970 and gives the Department
of the Treasury broad authority to require the maintenance of
records and the filing or reports that have been determined to
have a high degree of usefulness in criminal, tax, or regulatory
investigations or proceedings. The law was passed with the hope
that the requirement to report the sources, volumes, and movements
of domestic and international currency would reveal a variety of
criminal activities, including drug trafficking and tax evasion
(and potentially, espionage.) (U)
Treasury has imposed three major reporting requirements under the
Act. They are:
1. The Currency Transaction Report (CTR)- This requires designated
types of financial institutions report all types of cash
transactions by, through, or to those institutions in excess ot
$10,000. Financial institutions subject to this requirement
include banks, savings and loans, credit unions, securities
brokers and dealers, foreign currency brokers, and several
categories of miscellaneous financial institutions such as
casinos, check cashers, and currency exchanges.
2. The Currency or Monetary Instrument Report (CMIR)- This
requires all persons report the import or export of currency or
monetary instruments in excess of $10,000 into or out of the
United States.
CO NTIAL.
Cls by Signer
Decls OADR
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3. The Foreign Bank Account Report (FEAR)- This requires all
persons subject to the jurisdiction of the United States make an
annual report of their interests in foreign bank accounts. (U)
In addition, the Act and the regulations require financial
institutions to maintain a variety of records (such as copies of
signature cards, bank statements, and checks drawn for more than
$100) for a five year period. Records required to be kept under
the Act, unlike BSA reports, generally may be examined by law
enforcement authorities only for the purpose of assuring
compliance with the Act's requirements; in other cases,
authorities must obtain subpoenas or comply with other legal
provisions. (U)
Clearly, the recorus and reports required under the Act could be
of use in the course of conducting investigations of U.S. citizens
suspected of committing espionage. In fact, if the BSA has been
violated by an alleged spy in the course of handling his
ill-gotten gains, such violations might make for a more provable
criminal case. (C)
The United States Customs Service is responsible for maintaining
the combined data base for all BSA information. Within Customs,
the Financial Intelligence Branch is responsible for the analysis
and dissemination of BSA data for a variety of law enforcement
(and other) purposes. The formal dissemination guidelines for
release of BSA are presently under review and amendment within the
Treasury Department. Customs does, however, now have the
authority to receive and act on requests from the Intelligence
Community for BSA data. The Office of Intelligence at Customs
advises that requests from the Intelligence Community should state
explicitly that they are tor intelligence or counterintelligence
purposes. All requests must be in writing unless exigent
circumstances apply. (U)
Cable requests to Customs should be aduressed as follows:
-Classified -- RUEBMRA/Headquarters U.S. Customs Service,
Washington, D.C.//Office of Intelligence
-Unclassified -- RUEVHAD/Headquarters U.S. Customs Service
Washington, D.C.//Ottice of Intelligence (C)
CO NTIAL
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The appropriate mailing address is as follows:
U.S. Customs Service
Director, Office of Intelligence
Room 5212
1301 Constitution Ave. NW
Washington, D.C. 20229 (U)
The Director, Office of Intelligence can be reachea by telephone
at [phone] (they are equipped with STU-III telephones for
secure voice transmissions.) (U)
I hope this information is useful. If there are any further
questions or problems, please do not hesitate to contact me. (U)
Randall M. Fort
Special Assistant to the Secretary
(National Security)
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