91ST CONGRESS 2D SESSION S. 3678 IN THE SENATE OF THE UNITED STATES APRIL 6 (legislative day, APRIL 3), 1970 Mr. PROXMIRE (for himself, Mr. BROOKE, and Mr. WILLIAMS of New Jersey) introduced the following bill; which was read twice and referred to the Committee on Banking and Currency A BILL To amend the Federal Deposit Insurance Act to require insured banks to maintain certain records, to require that certain transactions in United States currency be reported to the Department of the Treasury, and for other purposes. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, TITLE I-FINANCIAL RECORDKEEPING 3 2 1 § 101. Retention of records by insured banks 2 The Federal Deposit Insurance Act is amended (1) by 3 redesignating sections 21 and 22 as 22 and 23, respectively, 4 and (2) by inserting the following new section immediately 5 after section 20: 6 "SEC. 21. (a) (1) The Congress finds that adequate 7 records maintained by insured banks have a high degree of 8 usefulness in criminal, tax, and regulatory investigations and 9 proceedings. The Congress further finds that photocopies 10 made by banks of checks, as well as records kept by banks. 11 of the identity of persons maintaining or authorized to act 12 with respect to accounts therein, have been of particular 13 value in this respect. 14 66 (2) It is the purpose of this section to require the 15 maintenance of appropriate types of records by insured banks 16 where such records may have a high degree of usefulness 17 in criminal, tax, or regulatory investigations or proceedings. 18 "(b) The Secretary of the Treasury (referred to in this 19 section as the 'Secretary') shall prescribe regulations to carry 20 out the purposes of this section. 21 223 "(c) Each insured bank shall maintain such records 22 and other evidence as the Secretary shall require of the identity of each person having an account with the bank 24 and of each individual authorized to sign checks, make with25 drawals, or otherwise act with respect to any such account. 3 1 "(d) Each insured bank shall make, to the extent that 2 the regulations of the Secretary so require 3 4 5 6 7 8 9 10 11 12 "(1) a photocopy or other copy of each check, draft, or similar instrument drawn on it and presented to it for payment; and "(2) a record of each check, draft, or similar in strument received by it for deposit or collection, together with an identification of the party for whose account it is to be deposited or collected, unless the bank has already made a record of the party's identity pursuant to subsection (c). "(e) Whenever any individual engages (whether as 13 principal, agent, or bailee) in any transaction with an in 14 sured bank which is required to be reported under the Cur15 rency and Foreign Transactions Reporting Act, the bank 16 shall require and retain such evidence of the identity of that 17 individual as the Secretary may prescribe as appropriate 18 under the circumstances. 19 "(f) In addition to or in lieu of the records and evi20 dence otherwise referred to in this section, each insured bank 21 shall maintain such records and evidence as the Secretary 22 223 23 may prescribe to carry out the purposes of this section. "(g) Any type of record or evidence required under 24 this section shall be retained for such period as the Secretary 4 1 "(h) The Secretary shall make an annual report to the 2 Congress of his implementation of the authority conferred by 3 this section and any similar authority with respect to record 4 keeping or reporting requirements conferred by other provi 5 sions of law." 6 § 102. Retention of records by insured institutions 7 Title IV of the National Housing Act is amended by 8 adding at the end thereof the following new section: 9 "SEC. 411. The Secretary of the Treasury shall pre 10 scribe such regulations as may be appropriate to carry out, 11 with respect to insured institutions, the purposes set forth in 12 section 21 of the Federal Deposit Insurance Act with re13 spect to insured banks." 16 (a) The Congress finds that adequate records main17 tained by businesses engaged in the functions described in sec18 tion 123 (b) of this Act have a high degree of usefulness in 19 criminal, tax, and regulatory investigations and proceedings. 20 The Congress further finds that the power to require reports 21 of changes in the ownership, control, and management of 1 types of financial institutions referred to in section 122 of 2 3 4 this Act may be necessary for the same purpose. (b) It is the purpose of this chapter to require the main tenance of appropriate types of records and the making of 5 appropriate reports by such businesses where such records or 6 7 9 reports may have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings. § 122. Ownership and control The Secretary may by regulation require any type of 10 uninsured bank or uninsured institution to make such reports 11 as the Secretary may require in respect of its ownership, con 12 trol, and management and any changes therein. 13 § 123. Authority of Secretary 14 (a) The Secretary may by regulation require any 15 uninsured bank or uninsured institution or any person engag 16 ing in the business of carrying on any of the functions re17 ferred to in subsection (b) of this section (1) to require, retain, or maintain, with respect to its functions as an uninsured bank or uninsured institu tion or its functions referred to in subsection (b), any records or evidence of any type which the Secretary is authorized under section 21 of the Federal Deposit Insurance Act to require insured banks to require, retain, or maintain; and (2) to maintain procedures to assure compliance |