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From Banking and Finance Law Daily, August 10, 2015

FinCEN requires enhanced reporting requirements for U.S.-Mexico border

By Lisa M. Goolik, J.D.

The Financial Crimes Enforcement Network has extended its Geographic Targeting Order (GTO) that requires enhanced cash reporting by armored car services (ACS) and other common carriers of currency at the San Ysidro and Otay Mesa ports of entry in Southern California. The additional requirements are in effect until Feb. 4, 2016. FinCEN also issued a new GTO that imposes similar enhanced reporting requirements on carriers crossing the border at eight major ports of entry in Texas from Sept. 17, 2015, through March 15, 2016.

Southern California. In August 2014, FinCEN, in coordination with its Mexican counterpart, the Unidad de Inteligencia Financiera (UIF), issued a GTO to address an increase in illicit cash coming back to the United States from Mexico, via ACS or couriers, for attempted deposit in U.S. financial institutions. FinCEN believed that the cash movement was not properly reported on Currency and Monetary Instruments Reports (CMIR) and, therefore, not made available in the FinCEN database for the benefit of investigators and analysts following illicit money trails (see Banking and Finance Law Daily, Aug. 4, 2014). The GTO was renewed in February 2015 to Aug. 7, 2015 (see Banking and Finance Law Daily, Feb. 9, 2015). The latest renewal extends the enhanced reporting requirements to Feb. 4, 2016.

Texas. With the announcement of the extension of the Southern California GTO, FinCEN also issued a new GTO that applies to common carriers of currency crossing the U.S.-Mexico land border between and including the Del Rio/Amistad Dam and Brownsville/Los Indios Ports of Entry and Departure. Those common carriers must comply with the enhanced reporting requirements from Sept. 17, 2015, through March 15, 2016.

GTO requirements. The GTOs require common carriers of currency to complete a CMIR using FinCEN Form 105, Report of International Transportation of Currency or Monetary Instruments, when physically transporting currency or other monetary instruments in an aggregate amount at one time exceeding $10,000 across the covered ports of entry and departure. The carrier must complete a separate Form 105, including all of the information required by the GTO, for each combination of shipper, consignee, currency originator, and currency recipient involved in each transaction subject to the order.

In addition, the common carrier of currency must complete a separate CMIR for each separate delivery within the same shipment, even if any or all of those separate deliveries represents currency and monetary instruments totaling less than $10,000. The CMIR must:

  1. identify the common carrier of currency as the person that transports currency or other monetary instruments on behalf of another person across the covered geographic area;

  2. identify the city and country of origination and destination, and the date for departure and arrival;

  3. provide the name and address of the consignee;

  4. provide the name and address of the currency originator from whom the shipper received the currency or other monetary instruments (if known by the common carrier of currency);

  5. state the name, address, and type of business of the shipper;

  6. provide the name and telephone number of the currency recipient;

  7. give a full description of the type and U.S. dollar equivalent amount of currency and monetary instruments transported; and

  8. be signed and dated by the common carrier of currency or a person duly authorized by the common carrier of currency.

The failure to file a Form 105 under the terms of the order may result in the seizure and forfeiture of currency or other monetary instruments.

MainStory: TopStory BankingOperations BankSecrecyAct CaliforniaNews CrimesOffenses TexasNews

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