In general, the IRS has standing jurisdiction over any financial institution not under regulatory supervision by Federal banking agencies or the Securities and Exchange Commission (SEC). The IRS is responsible for ensuring compliance with the reporting and recordkeeping provisions of 31 CFR, Chapter X, by all financial institutions under its jurisdiction. The authority to perform these functions has been delegated to the Territory Manager (Examination) for all civil Bank Secrecy Act (BSA) compliance examinations, and to the Special Agent in Charge (Criminal Investigation) for possible criminal violations.
A. The financial institutions as defined in 31 CFR 1010.100, for which the IRS has civil enforcement are listed below:
- Currency dealer or exchanger.
- Check casher.
- Issuer of traveler's checks, money order, or stored value (funds or monetary value represented in digital electronics format (whether or not specially encrypted) and stored or capable of storage on electronic media in such a way as to be retrievable and transferable electronically).
- Seller or redeemer of traveler's checks, money orders or stored value.
- Money transmitter.
- Licensed gambling casinos/card clubs having gross annual gaming revenues in excess of $1,000,000 (except those in Nevada where the dollar criteria is $10,000,000).
- A domestic agent, or agency of a foreign bank which is not supervised by one of the Federal Banking Regulations, such as a law firm acting as an agent for a foreign bank.
- Banks and other financial institutions which are not supervised and examined for safety and soundness by any Federal banking agency or the SEC.
The first 5 listed above are considered to be "money services businesses".
B. Although "licensed senders/transmitters of funds abroad for others" are subjected to the provisions of 31 CFR 1010 and the general jurisdiction of Customs, the IRS, to an extent, shares responsibility for ensuring compliance with the filing of FinCEN Form 105, Report of International Transportation of Currency or Monetary Instruments (CMIR).
C. Effective September 6, 1985, the IRS was given standing authority to initiate and conduct criminal investigations of insured banks, which are under regulatory supervision of Federal banking agencies, as well as brokers and dealers in securities who are registered with the SEC. This authority has been delegated to the Deputy Chief (Criminal Investigation) and may not be redelegated.
D. The IRS also has standing civil and criminal jurisdiction for foreign financial accounts under 31 CFR 103.24 and 103.32