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| signedpresident = [[Richard Nixon]]
| signeddate = October 26, 1970
| amendments = [[Patriot Act|USA PATRIOT Act]]
| SCOTUS cases = {{ubl|''[[California Bankers Assn. v. Shultz]]'', {{ussc|416|21|1974}}|''[[United States v. Miller (1976)|United States v. Miller]]'', {{ussc|425|435|1976}}|''[[United States v. $8,850]]'', {{ussc|461|555|1983}}|''[[Ratzlaf v. United States]]'', {{ussc|510|135|1994}}|''[[United States v. Bajakajian]]'', {{ussc|524|321|1998}}|''[[Bittner v. United States]]'', {{ussc|docket=21-1195|volume=598|year=2023}}}}
}}
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===Other reports ===
A MIL must indicate cash purchases of monetary instruments, such as [[money order]]s, [[cashier's check]]s, and [[traveler's check]]s valued between {{US$|long=no|3000}} and {{US$|long=no|10000}}. This form is required to be kept on record at the financial institution for at least five years, and produced at the request of examiners or audit to verify compliance.{{Citation needed|date=August 2024}}
The "Report of International Transportation of Currency or Monetary Instruments", also referred to as a Currency and Monetary Instrument Report (CMIR), must be filed by each person or institution that physically transports, mails, or ships, or causes to be physically transported, mailed, shipped, or received, currency, [[traveler's check]]s, and certain other monetary instruments in an aggregate amount exceeding {{US$|long=no|10000}} into or out of the United States must file a CMIR.<ref>31 USCA 5316(a)</ref> It is identified as FinCEN Form 105 Report.
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There are heavy penalties for individuals and financial institutions that fail to file CTRs, MILs, or SARs. There are also penalties for banks who disclose to its client that it has filed a SAR about the client. Penalties include heavy [[Fine (penalty)|fines]] and prison sentences. IRC §6038D requires that all U.S. persons, individuals, corporations, partnerships, LLCs, and trusts, provide timely information regarding their foreign accounts, otherwise a $10,000 penalty will result for every month it is late (subject to a certain maximum penalty).<ref>{{cite web|url=https://moskowitzllp.com/getting-into-compliance-with-your-foreign-account-reporting-part-i/ |title=Getting into Compliance with Your Foreign Account Reporting|date=22 March 2017}}</ref><ref>{{Cite web|url=https://klasing-associates.com/fatca-fbar-reporting-seven-practical-implications/|title=FATCA and FBAR Reporting & 7 Practical Implications|date=2014-03-27|website=Tax Attorney|language=en-US|access-date=2019-02-22}}</ref>
In 1998, the [[Supreme Court of the United States|Supreme Court]] ruled in ''[[United States v. Bajakajian]]'' that the government may not confiscate money from an individual for failure to report it on a Currency and Other Monetary Instruments Report (CMIR), as such punishment would be "grossly disproportional to the gravity of [the] offense" and unconstitutional under the Excessive Fines clause of the [[Eighth Amendment to the United States Constitution|Eighth Amendment]]. Bajakajian and his family had tried to take $357,144 out of the United States in their luggage, and the government had seized it under the Bank Secrecy Act, which allows [[Civil forfeiture in the United States|forfeiture]] of "any property, real or personal, involved in such offense".<ref name="latimes">{{cite news|last1=Savage|first1=David G.|title=U.S. Supreme Court to Hear Forfeiture Case|url=
In March 2010, [[Wachovia]] admitted to "serious and systemic" violations of the Bank Secrecy Act for laundering $378 billion between 2004 and 2007, the largest violation in terms of a dollar amount.<ref name="cyrus">{{cite news|last1=Sanati|first1=Cyrus|title=Money Laundering: The Drug Problem at Banks|url= https://dealbook.nytimes.com/2010/06/29/money-laundering-the-drug-problem-at-banks|access-date=6 February 2018| work= New York Times| date=29 June 2010}}</ref> It allowed [[Mexican drug war|Mexican]] and [[Illegal drug trade in Colombia|Colombian drug cartels]] to launder money through ''casas de cambio'' by willfully failing to set up an effective anti-money-laundering program.<ref name="bbweek">{{cite news|work=Businessweek |first= David| last= Voreacos |title=Wachovia to Pay $160 to End Money Laundering Probe |url= http://www.businessweek.com/news/2010-03-18/wachovia-to-pay-160-million-to-end-money-laundering-probe.html |url-status=dead |archive-url= https://web.archive.org/web/20100323010353/http://www.businessweek.com/news/2010-03-18/wachovia-to-pay-160-million-to-end-money-laundering-probe.html |archive-date=March 23, 2010 }}</ref><ref name="eperez">{{cite news|author1=Evan Perez|author2=Glenn R. Simpson|title=Wachovia Is Under Scrutiny In Latin Drug-Money Probe|url=https://www.wsj.com/articles/SB120917664876446995|access-date=6 February 2018|work=Wall Street Journal|date=26 April 2008|archive-url=https://archive.today/20180206123851/https://www.wsj.com/articles/SB120917664876446995|archive-date=6 February 2018|url-status=live}}</ref><ref>{{cite news |url=https://www.theguardian.com/world/2011/apr/03/us-bank-mexico-drug-gangs |title=How a big US bank laundered billions from Mexico's murderous drug gangs |first=Ed |last=Vulliamy |work=[[The Guardian]] |date=2 April 2012 |access-date=6 February 2018}}</ref>
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==Additional information==
An entire industry has developed around providing software to analyze transactions in an attempt to identify transactions or patterns of transactions called [[structuring]], which requires SAR filing. Financial institutions are subject to penalties for failing to properly file CTRs and SARs, such as heavy fines and regulatory restrictions, including charter revocation.{{Citation needed|date=August 2024}}
These software applications effectively monitor customer transactions on a daily basis and, using a customer's past transactions and account profile, provide a "whole picture" of the customer to the bank management. Transaction monitoring can include cash deposits and withdrawals, wire transfers, and [[Automated Clearing House|ACH]] activity. In the banking industry, these applications are known as "BSA software" or "[[anti-money laundering software]]".
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{{Bank regulation in the United States}}
{{Presidency of Richard Nixon}}
{{Patriot Act}}
{{Authority control}}
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