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Amendment to the Bank Secrecy Act Regulations – Definition of “Monetary Instrument”
Docket ID: FINCEN-2011-0003
Agency: FINANCIAL CRIMES ENFORCEMENT NETWORK
Parent Agency: DEPARTMENT OF THE TREASURY
Although the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 (CARD Act), section 503, required the issuance of "regulations in final form implementing the Bank Secrecy Act, regarding the sale, issuance, redemption, or international transport of stored value, including stored value cards" by February 2010, we interpret the disjunctive "or" to allow for a phased approach.
FinCEN has cleared a final rule on Prepaid Access that provides the necessary foundation
for this proposed rulemaking on international transport. The CARD Act authorizes "regulations regarding international transport," of prepaid access devices, including "reporting requirements pursuant to Section 5316 of title 31, United States Code
." Pursuant to this authority FinCEN is proposing to amend the regulations issued under 31 U.S.C. 5316, namely the definition of "monetary instrument" at 31 CFR 1010.100(dd) and the international transport of currency and monetary instrument reporting requirement at 31 CFR 1010.340, to include tangible prepaid access devices.
The current regulations require that a form be filed reporting the international transportation, mail, or shipment of currency or other monetary instruments in an aggregate amount that exceeds $10,000
. The term "monetary instrument" is defined in the BSA to include currency and a variety of bearer negotiable instruments, securities, and similar items, but does not specifically include any types of prepaid access devices. Nevertheless, FinCEN has regulatory authority to expand the definition
of monetary instruments to include items deemed to be "similar materials" to coins and currency of a foreign country, travelers' checks, bearer negotiable instruments, bearer investment securities, bearer securities, and stock on which title is passed on delivery.