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FEDERAL RESERVE BANK
O F NEW YORK
Fiscal A gen t of the United States

f Circular No. 3 8 2 6 1
February 29, 1952 J

I

REPORTS OF LARGE AND UNUSUAL CURRENCY TRANSACTIONS
Amended Instructions
To all Banks and Other Financial Institutions
in the Second Federal Reserve D istrict:

The following statement was made public today:
Secretary Snyder announced today the issuance of an amended regulation relating
to reports of transactions in United States currency. The regulation requires every
bank and other financial institution in the United States to file monthly reports of
large and unusual currency transactions which exceed those commensurate wii^i the
customary conduct of the business, industry or profession of the person or organiza­
tion concerned.
The report system was inaugurated in 1945 after it had been established that
racketeers and others engaged in illegal activities were resorting on a large scale to the
use of large denomination currency as an attempted method of concealing income.
The amended regulation will make the reporting procedure less burdensome to
banks and other institutions while providing the Bureau of Internal Revenue with a
continuing flow of those reports which experience has shown to be the most helpful in
detecting major tax evaders.
The change in the regulation was decided upon by the Treasury after con­
sultation with the Federal Reserve System and a committee representing the American
Bankers Association. The requirement for reports involving transactions of $1,000
or more, in denominations of $50 or higher, has been changed to $2,500 involving
denominations of $100 or higher. Reports of all transactions of $10,000 or more in any
denominations also are required.
The regulation does not apply to currency transactions which, in the judgment of
the reporting institution, are normal ones in the regular and customary conduct of
the business, industry or profession of the persons or organizations involved.
The reports are treated by the Bureau of Internal Revenue as confidential com­
munications, and there is no disclosure of the source of information received through
them. Large amounts of evaded income tax have been recovered by the Bureau of
Internal Revenue through leads obtained from the reports.
In making today’s announcement, Secretary Snyder referred to the assistance
given the Bureau of Internal Revenue by banks and other financial institutions,
through the currency transaction reports, as an outstanding public service.

W e transmit a copy o f a letter dated February 21, 1952 from the Secretary of
the Treasury outlining the purposes o f the amended regulation, and expressing his
appreciation to banks and other financial institutions fo r their cooperation in report-




ing large and unusual currency transactions and in other Treasury Department
activities.
Enclosed are copies o f : (1) Amended Instructions Relating to Reports of
Currency Transactions, dated February 21, 1952; and (2) Revised Form TCR-1
fo r reporting prescribed currency transactions. Supplies o f the new Form TCR-1
will soon be available at this Bank. Until they are available, you should continue to
file reports on the old Form TCR-1 fo r transactions covered by the amended instruc­
tions. Requests fo r the new Form TCR-1 should be addressed to the Treasury
Currency Report Section, Federal Reserve Bank o f New York, Federal Reserve
P. 0 . Station, New Y ork 45, New York.
Financial institutions located in the territory assigned to our Buffalo Branch
should continue to send reports on Form TCR-1, as revised, directly to Buffalo
Branch, Federal Reserve Bank o f New York, Buffalo 5, New York.*
Additional copies o f this circular and of the amended instructions fo r reporting
currency transactions will also be furnished upon request.
9

A lla n

S p r o u l,

President.

*
The territory assigned to our B u ffa lo Branch com prises the follow in g ten westerly counties o f the State o f
N ew Y o r k : A llegany, Cattaraugus, Chautauqua, Erie, Genesee, Livingston, M onroe, N iagara, Orleans, and
W yom ing.




T H E

S E C R E T A R Y

O F

T H E

T R E A S U R Y

WASHINGTON

February 21, 1952
T o Banks and Other Financial Institutions:

The Treasury has amended the regulation originally issued on May 21, 1945, requiring every
financial institution in the United States to file monthly reports on Form TCR-1 of large and
unusual currency transactions, to make them more in keeping with present conditions. These reports
were originally developed for the purpose of discovering large currency transactions resorted to by
racketeers and others engaged in illegal activities as an attempted method of concealing income.
One of the most valuable sources of information to the Treasury Department in the detection
of income-tax evasion are reports received from banks and other financial institutions on Form
TCR-1. Many banks and other financial institutions are regularly submitting reports of large and
unusual currency transactions. Failure on the part of some institutions to file reports may be due
to oversight or to a belief that the reporting requirements are no longer in effect.
Heretofore, Treasury regulations required reports of all transactions amounting to $1,000 or
more involving currency denominations of $50 or higher. After consultation with the Federal
Reserve Banks and a committee of the American Bankers Association, the Treasury has amended
its regulation to require reports on Form TCR-1 for each transaction amounting to $2,500 or more,
involving denominations of $100 or higher. This change is expected to render the reporting pro­
cedure less burdensome to banks, while providing the Bureau of Internal Revenue with a continuing
flow of those reports which experience has shown to be the most helpful in detecting major tax
evaders.
I
feel certain that the banks and financial institutions are in general agreement that, in fairness
to all taxpayers, every effort should be made to reduce to the lowest practicable minimum the loss
of revenue through tax evasion. The TCR-1 reports have been responsible for breaking many of
the largest and most intricate income-tax evasion cases. The use of currency by racketeers, and
others engaged in illegal activities, is particularly well established as an attempted method of con­
cealing income. When such income is not detected the burden of taxation is heavier on the honest
taxpayers. Although this amended regulation is designed to assist primarily the increased enforce­
ment efforts directed against racketeers, it is recognized that it will apply in certain cases to other
persons, firms or corporations. However, it is not intended to apply to a currency transaction which,
in the judgment of the reporting financial institution, is a normal one in the regular and customary
conduct of business or private activities.
The TCR-1 reports are treated as confidential communications. All officers and agents of the
Bureau of Internal Revenue have been admonished not to disclose the source of information received
through such reports.
On several occasions I have expressed the appreciation of the Treasury for the cooperation
which banks and other financial institutions have extended in making confidential reports of large
and unusual currency transactions. I want to express my appreciation again for this public service
and to urge continued cooperation and renewed vigilance in this regard. At the same time I wish
also to express my appreciation for the assistance you have rendered in other areas dealing with
Treasury activities, particularly those relating to the handling of withheld income and social security
taxes, in providing banking services and facilities for the defense and other activities of the Govern­
ment, and in the sale and redemption of United States Savings Bonds.




Sincerely,
Jo h n

W. S nyder,
Secretary o f the Treasury.

TITLE 31 — MONEY AND FINANCE: TREASURY
CHAPTER I — MONETARY OFFICES, DEPARTMENT OF THE TREASURY
Part 102
T

reasu ry

O

f f ic e

D
of

epartm ent
the

S

ecretary

F eb ru a ry 21, 1952

AMENDED INSTRUCTIONS RELATING TO REPORTS
OF CURRENCY TRANSACTIONS*
Pursuant to Section 5(b) o f the A ct of October 6, 1917 (40 Stat. 415), as amended,
and other authority vested in me by law, the following instructions are prescribed:
Section 102.1. Reports o f currency transactions required.
Commencing with trans­
actions occurring in the month o f March, 1952, every financial institution in the United
States shall file monthly reports on Form TCR-1 concerning each deposit or withdrawal,
or other payment or transfer, effected by, through, or to such financial institution, which
involves transactions in United States currency as follow s:
1. Transactions involving $2,500 or more of United States currency in denominations of
$100 or higher,
2. Transactions involving $10,000 or more of United States currency in any denominations,
and
3. Transactions involving any amount in any denominations,

which in the judgment o f the financial institution exceed those commensurate with the
customary conduct of the business, industry or profession o f the person or organization
concerned.
Section 102.2. Filing o f reports. Reports on Form TCR-1 shall be filed in duplicate
on or before the 15th day o f the month following that in which the reported transactions
occur, with the Federal Reserve Bank o f the district in which the reporting financial
institution is located. A ll information called fo r in such form shall be furnished.*
Section 102.3. Identification required. No financial institution shall effect any trans­
action with respect to which a report is required unless the person or organizations with
whom such transaction is to be effected has been satisfactorily identified.*
Section 102.4. Definitions. As used herein “ payment or transfer” shall include
exchange o f currency; and “ financial institutions” shall mean banks, trust companies,
savings banks, private bankers, investment bankers, building and loan associations, securi­
ties and commodities brokers, and currency exchanges and other persons or organizations
engaged primarily in cashing checks and exchanging currency.*
JOHN W . SNYDER,
Secretary o f th e Treasury.

• S ections 102.1 to 102.4— R.S. 2 5 1 ; Sec. 5 ( b ) , 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1 ; 54 Stat. 179; 55 Stat.
83 9 ; E x. Order 6073, M ar. 10, 1933, as amended b y P roc. 2070, Dec. 30, 1933 and Ex. Order 6599, Jan. 15, 1934;
Ex. Order 8389, A pr. 10, 1940, as am ended; E x. Order 9193, J u ly 6, 1942.




U n ite d States
T r e a s u r y D epartm en t
( R e v . 2-21-52)

FORM T C R -1 :

R EPORT OF C U R R E N CY T R A N SA C T IO N S

Pursuant to Instructions to Financial Institutions in the
United States Prescribed February 21, 1952
Part A .

F

in a n c ia l

I n s t it u t io n

R

e p o r t in g .

1.

N a m e ..................................................................................................................................................................................

2.

Address ...............................................................................................................................................................................
(N u m b e r )

Part B.

P erso n

or

O

(S t r e e t )

r g a n iz a t io n

Concerned

in

(C ity )

T

r a n s a c t io n s

R

(S t a t e )

eported .

1.

N a m e ..................................................................................................................................................................................

2.

A d d ress..............................................................................................................................................................................

3.

Business, profession, or occupation.............................................................................................................................

Part C.
1.

T

r a n s a c t io n s

R

eported.

Description of transactions.
U . S. C u rren cy in volved
D ate

2.

T ota l
A m ount

A m o u n t in
d en om in a tion s o f
$100 o r h igh er

N atu re o f T ra n sa ction
(S ta te w h eth er d ep osit, w ith draw a l,
ex ch a n g e o f cu rren cy, ca s h in g
o r pu rch ase o f ch e ck , e tc .)

Any additional information concerning the transactions reported which the reporting institution may wish to
submit.

Part D.

C e r t if ic a t io n .

I
certify that I am authorized to make this report on behalf of the financial institution named in Part A
above and that to the best of my knowledge and belief this report is true and accurate.
Dated

, 195....
(S ig n a tu r e o f a u th o rize d a g e n t)

IN F O R M A T IO N

T O R E P O R T IN G IN S T IT U T IO N S

R e p o r ts shall be filed in du plicate, on or b e fo re the 15th day o f the m on th fo llo w in g that in w h ich the rep orted tran saction s
o ccu r, w ith th e F ed eral R eserve B ank o f th e district in w h ich the rep ortin g financial institution is loca ted . C op ies o f this fo r m
and the in stru ction s o f F eb ru a ry 21, 1952 m a y be ob ta in ed fro m a n y F ed eral R e serv e Bank.





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102