U.S. introduces new anti-terrorism reporting regulations for cross-border transactions

By Christine Duhaime | September 27th, 2010

The U.S. Financial Crimes Enforcement Network (FinCEN), has published proposed regulations that would require banks and money services businesses to report cross-border electronic transfers of funds (called CBETFs).

Banks would have to report all CBETFs of any amount to FinCEN within five days. Money services businesses would be required to report amounts of US$1,000 or more to FinCEN. Reporting would be on a first-in and last-out basis, which means that an institution must report a transaction when it is the last financial institution to handle the transaction before it leaves the U.S. or if it is the first institution to handle it as it enters the U.S.

The proposed regulations would also require banks to annually file with FinCEN a list of the taxpayer identification numbers of its customers who sent or received a CBETF.

The regulations will also authorize the establishment of a centralized database for the collection and analysis of the cross-border data that will be used for the detection and prosecution of money laundering, terrorist financing and tax evasion offenses. You can read the proposed regulations from FinCEN here.

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