6-1241

6-1241. Reports to the attorney general;
investigation; violation; classification

A. Within thirty days after any transaction or series or pattern of transactions
that is conducted or attempted by, at or through the business and that involves or
aggregates five thousand dollars or more in funds or other assets, each licensee and
authorized delegate of a licensee and each money transmitter shall file with the attorney
general's office in a form prescribed by the attorney general a report of the transaction
or series or pattern of transactions if the licensee, authorized delegate or money
transmitter knows, suspects or has reason to suspect that the activity either:

1. Involves funds that are derived from illegal activities, is intended or
conducted in order to hide or disguise funds or other assets that are derived from
illegal activities, including, without limitation, the ownership, nature, source,
location or control of the funds or other assets, as part of a plan to violate or evade
any law or regulation or to avoid any transaction reporting requirement under this
chapter or may constitute a possible money laundering violation under section 13-2317 or
another racketeering violation as defined in section 13-2301.

2. Has no business or apparent lawful purpose or is not the sort of activity in
which the particular customer would normally be expected to engage and the licensee,
authorized delegate or money transmitter knows of no reasonable explanation for the
activity after examining the available facts, including the background and possible
purpose of the activity.

B. A licensee, authorized delegate or money transmitter that is required to file a
report regarding business conducted in this state pursuant to the currency and foreign
transactions reporting act (31 United States Code sections 5311 through 5326, including
any special measures that are established under 31 United States Code section 5318A, and
31 Code of Federal Regulations part 103 or 12 Code of Federal Regulations section 21.11)
shall file a duplicate of that report with the attorney general.

C. All persons who are engaged in a trade or business and who receive more than ten
thousand dollars in money in one transaction or who receive more than ten thousand
dollars in money through two or more related transactions shall complete and file with
the attorney general the information required by 31 United States Code section 5331 and
the federal regulations relating to this section concerning reports relating to cash
received in trade or business.

D. A licensee, authorized delegate or money transmitter that is regulated under the
currency and foreign transactions reporting act (31 United States Code section 5325 and
31 Code of Federal Regulations part 103) and that is required to make available
prescribed records to the secretary of the United States department of treasury on
request at any time shall follow the same prescribed procedures and create and maintain
the same prescribed records relating to each transaction.

E. In addition to the requirements under subsection D of this section and in
connection with each transaction that involves transmitting money in an amount of one
thousand dollars or more, whether sending or receiving, a licensee or, for transactions
conducted through an authorized delegate, an authorized delegate shall retain a record of
each of the following:

1. The name and social security or taxpayer identification number, if any, of the
individual presenting the transaction and the person and the entity on whose behalf the
transaction is to be effected.

2. The type and number of the customer's verified photographic identification, as
described in 31 Code of Federal Regulations section 103.28.

3. The customer's current occupation.

4. The customer's current residential address.

5. The customer's signature.

F. Subsection E of this section does not apply to transactions by which the
licensee's customer is making a bill payment either to a commercial creditor pursuant to
a contract between the licensee and the commercial creditor or to a utility company.

G. Each licensee shall create records that reflect the provision of updated
operating policies and procedures pursuant to section 6-1208, subsection B and of
instruction that promotes compliance with this chapter, title 13, chapter 23 and 31
United States Code section 5318, including the identification of the provider and the
material and instruction that were provided.

H. On request of the attorney general, a county attorney or the superintendent, a
licensee, authorized delegate or money transmitter shall make any records that are
created pursuant to this section available to the attorney general, a county attorney or
the superintendent at any time.

I. A licensee or, for transactions conducted through an authorized delegate, an
authorized delegate shall maintain any customer identification records that are created
pursuant to subsection E of this section for three years. After three years, the licensee
or, for transactions conducted through an authorized delegate, the authorized delegate
shall deliver the customer identification records to the attorney general. The attorney
general shall make the records available on request to the superintendent or a county
attorney but shall not otherwise distribute the customer identification records without a
court order. The customer identification records shall not be used for any purpose other
than for criminal and civil prosecution and the prevention and detection of fraud and
other criminal conduct.

J. If the superintendent or the attorney general finds that reasonable grounds
exist for requiring additional record keeping and reporting in order to carry out the
purposes of this chapter and to prevent the evasion of this chapter, the superintendent
or the attorney general may:

1. Issue an order requiring any group of licensees, authorized delegates or money
transmitters in a geographic area to do any of the following:

(a) Obtain information regarding transactions that involve total dollar amounts or
denominations of five hundred dollars or more, including the names of any persons
participating in those transactions and any persons or entities on whose behalf they are
to be effected.

(b) Maintain records of that information for at least five years and make those
records available to the attorney general and the superintendent.

(c) File a report with the attorney general and the superintendent regarding any
transaction in the manner prescribed in the order.

2. Issue an order exempting any group of licensees or authorized delegates from the
requirements of subsection E of this section based on the geographic area, the volume of
business conducted, the record of compliance with the reporting requirements of this
chapter and other objective criteria.

K. An order issued pursuant to subsection J of this section is not effective for
more than one hundred eighty days unless renewed after finding that reasonable grounds
exist for continuation of the order.

L. The timely filing of a report required by this section with the appropriate
federal agency shall be deemed compliance with the reporting requirements of this
section, unless the attorney general has notified the superintendent that reports of that
type are not regularly and comprehensively transmitted by that federal agency to the
attorney general.

M. This chapter does not preclude a licensee, authorized delegate, money
transmitter, financial institution or person engaged in a trade or business from
instituting contact with and disclosing customer financial records to appropriate state
or local law enforcement agencies if the licensee, authorized delegate, money
transmitter, financial institution or person has information that may be relevant to a
possible violation of any criminal statute or to the evasion or attempted evasion of any
reporting requirement of this chapter.

N. A licensee, authorized delegate, money transmitter, financial institution,
person engaged in a trade or business or director, officer, employee, agent or authorized
delegate of any of them that keeps or files a record as prescribed by this section, that
communicates or discloses information or records under subsection M of this section or
that requires another to make any such disclosure is not liable to any person under any
law or rule of this state or any political subdivision of this state or under any
contract or other legally enforceable agreement, including any arbitration agreement, for
the disclosure or for the failure to provide notice of the disclosure to the person who
is the subject of the disclosure or to any other person who is identified in the
disclosure. This subsection shall be construed to be consistent with 31 United States
Code section 5318(g)(3).

O. The attorney general may report any possible violations indicated by analysis of
the reports required by this chapter to any appropriate law enforcement agency for use in
the proper discharge of its official duties. If an officer or employee of this state or
any political subdivision of this state receives a report pursuant to 31 United States
Code section 5318(g), the report shall be disclosed only as provided in 31 United States
Code section 5318(g). A person who releases information received pursuant to this
subsection except in the proper discharge of official duties is guilty of a class 2
misdemeanor.

P. The requirements of this section shall be construed to be consistent with the
requirements of the currency and foreign transactions reporting act (31 United States
Code sections 5311 through 5326 and federal regulations prescribed under those sections)
unless the context otherwise requires.

Q. A person who refuses to permit any lawful investigation by the superintendent, a
county attorney or the attorney general or who refuses to make records available to the
superintendent, a county attorney or the attorney general pursuant to subsection H of
this section is guilty of a class 6 felony.