PRINTER'S NO. 627
No. 589 Session of 1989
INTRODUCED BY FISHER, PECORA, BELL, REIBMAN, WILT, STOUT,
HELFRICK, ANDREZESKI, GREENWOOD, CORMAN AND MADIGAN,
FEBRUARY 21, 1989
REFERRED TO JUDICIARY, FEBRUARY 21, 1989
AN ACT
1 Requiring financial institutions to report certain financial
2 transactions to the Office of Attorney General; imposing
3 additional powers and duties on the Office of Attorney
4 General; and providing for the imposition of civil penalties
5 for violations of the reporting requirements.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Short title.
9 This act shall be known and may be cited as the Commonwealth
10 Financial Transactions Reporting Act.
11 Section 2. Legislative purpose.
12 It is the intent of this act to provide the Office of
13 Attorney General with reports and records which duplicate the
14 requirements of 31 United States Code (relating to money and
15 finance) and which have a high degree of usefulness in criminal
16 and tax investigations and proceedings.
17 Section 3. Definitions.
18 The following words and phrases when used in this act shall
19 have the meanings given to them in this section unless the
1 context clearly indicates otherwise:
2 "Financial agency." Any person, corporation, association,
3 partnership or any other entity acting for another person as a
4 financial institution, bailee, depository trustee or agent, or
5 acting in a similar way in relation to money, credit, securities
6 or gold or a transaction in money, credit, securities or gold.
7 "Financial institution." The term includes:
8 (1) Any federally chartered or State-chartered bank,
9 bank and trust company, trust company or savings bank.
10 (2) Any private banker.
11 (3) Any federally chartered or State-chartered savings
12 and loan association.
13 (4) Any agency or branch of a foreign bank located
14 within Pennsylvania.
15 (5) Any broker or dealer registered with the Federal or
16 State government.
17 (6) Any unregistered broker or dealer in securities or
18 commodities.
19 (7) Any investment banker or investment company.
20 (8) A currency exchange.
21 (9) An issuer, redeemer or cashier of travelers' checks,
22 checks, money orders or similar instruments.
23 (10) An operator of a credit card system.
24 (11) An insurance company.
25 (12) A dealer in precious metals, stones or jewels.
26 (13) A pawnbroker.
27 (14) A loan or finance company.
28 (15) A travel agency.
29 (16) A licensed sender of money.
30 (17) A telegraph company.
19890S0589B0627 - 2 -
1 "Monetary instruments." All United States coins and
2 currency, coins and currency of a foreign country, travelers'
3 checks, bearer negotiable instruments, bearer investment
4 securities, bearer securities, stock on which title is passed on
5 delivery, and similar material.
6 Section 4. Reports on coins and currency transactions.
7 (a) General rule.--When a financial institution is involved
8 in a transaction for the payment, receipt or transfer of United
9 States coins or currency or other monetary instruments, in an
10 amount, denomination, or amount and denomination, or under
11 circumstances the Attorney General prescribes by regulation, the
12 institution and any other participant in the transaction the
13 Attorney General may prescribe shall file a report on the
14 transaction at the time and in the way the Attorney General
15 prescribes. A participant acting for another person shall make
16 the report as the agent or bailee of the person and identify the
17 person for whom the transaction is being made.
18 (b) Agents for Commonwealth.--The Attorney General may
19 designate a financial institution as an agent of the
20 Commonwealth to receive a report under this section. However,
21 the Attorney General may designate a financial institution that
22 is not insured, chartered, examined or registered as a domestic
23 financial institution only if the institution consents. The
24 Attorney General may suspend or revoke a designation for a
25 violation of this act or a regulation under this act.
26 (c) Filing of reports.--
27 (1) A person required to file a report under this
28 section shall file the report:
29 (i) with the institution involved in the transaction
30 if the institution was designated;
19890S0589B0627 - 3 -
1 (ii) in the way the Attorney General prescribes when
2 the institution was not designated; or
3 (iii) with the Attorney General.
4 (2) The Attorney General shall prescribe:
5 (i) the filing procedure for a financial institution
6 designated under subsection (b); and
7 (ii) the way the institution submits reports filed
8 with it.
9 Section 5. Regulations.
10 (a) General rule.--The Attorney General shall have the power
11 and may promulgate regulations necessary to implement the
12 provisions of this act. Insofar as possible, the regulations of
13 the Attorney General shall correspond to the regulations and
14 forms promulgated by the Secretary of the Treasury under 31
15 United States Code (relating to money and finance).
16 (b) Duplicate copies.--Any financial institution required by
17 Federal law to report certain records or monetary transactions
18 may submit duplicate copies to the Attorney General in order to
19 comply with the provisions of this act.
20 Section 6. Injunctive relief.
21 The Attorney General is empowered to seek injunctive relief
22 from the Commonwealth Court to enforce the provisions of this
23 act.
24 Section 7. Evading reporting requirements.
25 It shall be unlawful for any person, for the purpose of
26 evading the requirements of this act with respect to any
27 transaction, to:
28 (1) Cause or attempt to cause any financial institution
29 to fail to file a report required under this act.
30 (2) Cause or attempt to cause any financial institution
19890S0589B0627 - 4 -
1 to file a false or misleading report under this act.
2 (3) Structure or assist in structuring or attempt to
3 structure any transaction with any financial institution.
4 Section 8. Civil penalty.
5 Any person or financial institution willfully violating the
6 provisions of this act shall be liable to the Commonwealth for a
7 civil penalty of not more than the amount of the monetary
8 transaction or $25,000, whichever is greater.
9 Section 9. Effective date.
10 This act shall take effect in 60 days.
A20L44RZ/19890S0589B0627 - 5 -