A AML Rulebook

What FinCEN Means: The Treasury Bureau Behind the BSA

FinCEN is the Treasury bureau that administers the Bank Secrecy Act, receives its reports, and can require a financial institution to search its records. What the name means and what the bureau does.

Published

FinCEN is the Financial Crimes Enforcement Network.

What FinCEN stands for

The name is in the regulations. § 1010.100 says FinCEN means the Financial Crimes Enforcement Network, a bureau of the Department of the Treasury.

So yes, FinCEN is part of the Treasury Department. It is the Treasury bureau that administers the bank secrecy act.

What the bureau does

FinCEN's own advisory states its mission. It is to safeguard the financial system from illicit use. It is also to fight money laundering and its related crimes. These crimes include terrorism.

FinCEN's page also says the bureau acts as the named administrator of the Bank Secrecy Act.

The act FinCEN administers

The statute dates from 1970. FinCEN's history page says the Bank Secrecy Act of 1970 set recordkeeping and reporting rules for individuals, banks and other financial institutions.

The name is odd for a recordkeeping law. § 1010.100 explains the name. It says the Currency and Foreign Transactions Reporting Act and related statutes have come to be called the Bank Secrecy Act. The short name stuck.

Those recordkeeping and reporting rules are the subject of BSA anti money laundering compliance.

Where FinCEN appears in the rules

The regulations name FinCEN as the recipient of the reports. § 1010.306 says reports required by §§ 1010.311, 1010.313, 1020.315, 1021.311 and 1021.313 shall be filed with FinCEN, unless otherwise specified.

The rules also name FinCEN as the examiner. § 1020.320 says FinCEN or its delegatees examine banks for compliance with the section. A bank that fails may violate the Bank Secrecy Act. § 1022.320 says money services businesses shall be examined by FinCEN or its delegatees for compliance with the section.

So the regulations name FinCEN as the recipient of these reports. They also name FinCEN, with its delegatees, as an examiner.

The bureau does not only receive. It also requests. § 1010.520 says FinCEN may require any financial institution to search its records for accounts or transactions with a named individual, entity, or organization.

The request has a shape. § 1010.520 says a financial institution must search for transactions by or for a named suspect during the preceding six months. If the search finds a match, the institution must report to FinCEN in the manner and time frame FinCEN's request specifies.

The rule also asks for a name and a locked door. § 1010.520 requires a financial institution to designate one person as its point of contact for FinCEN information requests. It also requires each financial institution to maintain adequate procedures to protect the security and confidentiality of FinCEN requests.

Money services businesses and FinCEN

Money services businesses deal with FinCEN directly. § 1022.380 says each money services business, whether or not licensed by any State, must register with FinCEN.

Registration is only the start. The same shop that registers is the one § 1022.320 says shall be examined by FinCEN or its delegatees. The offence of structuring has its own page, the structuring definition.

Working with FinCEN day to day

The bureau is reachable. FinCEN's guidance says financial institutions with questions about compliance with the BSA may contact FinCEN's Resource Center Helpline.

The guidance also points to a set of past rulings. They show how FinCEN rules apply to specific facts. People can read them. FinCEN also issues FinCEN advisories. The mission statement above is quoted from one.

That is the FinCEN meaning in practice. The bureau the regulations define is the same one that receives the filings. It sends the search requests.

Sources

Also in Bank Secrecy Act and FinCEN
FinCEN's Convertible Virtual Currency Guidance
The FinCEN Travel Rule: What Travels With a Payment
FinCEN MSB Registration: Who Files and What Follows
FinCEN Advisories: What They Are and What They Ask
FinCEN Reporting Requirements: A Plain-Language Guide
FinCEN 314: What Section 314 Asks of a Bank
FinCEN Real Estate Reporting: What 31 CFR 1031.320 Asks
What the Bank Secrecy Act Is and What It Requires