On October 26, 2001, President George W. Bush signed the Patriots Act (H.R. 3162). This Act was designed to expand the reach of law enforcement in their efforts to identify, pursue and capture known terrorists. In an attempt to block the flow of terrorists, the legislature included a number of provisions designed to detect and interdict large currency transactions.

Sec. 365 of the Act amends the Bank Secrecy Act regarding reporting of large currency transactions. Under the Secrecy Act, BANKS are required to report currency and coin transactions exceeding $10,000 to the Financial Crimes Enforcement Network (FinCEN). Banks also had an option to exclude certain accounts from reporting once they had a history of account activity. Accounts having mostly cash deposits as a matter of course could be omitted. Government agency accounts were specifically excluded from reporting requirements by the Secrecy Act.

Sec. 365 adds Section 5331 to the Secrecy Act which requires that "Any PERSON--(1) who is engaged in a TRADE or BUSINESS; and (2) who, in the course of such trade or business, receives more than $10,000 in coins or currency in 1 transaction (or 2 or more related transactions), shall file a report...with respect to such transaction...." (emphasis added)

This amendment MAY affect your company by imposing a new reporting requirement. All members are encouraged to consult with the appropriate counsel to determine how you may be affected.