1 For example, where an “established customer” (as defined in the rules) of a non-bank financial institution originates a transmittal order, the
institution must keep the following information: (1) the name and address of the transmittor; (2) the amount and execution date of the
transmittal; (3) any payment instructions received from the transmittor with the transmittal order; (4) the identity of the recipient*s financial
institution; (5) to the extent received with the transmittal order, the name, address, account number and any other specific identifier of the
recipient; and (6) any form relating to the transmittal of funds completed or signed by the person placing the transmittal order.
A non-bank financial institution that accepts a transmittal order for a recipient that is an “established customer” must retain the original or a
copy of the transmittal order and any form completed or signed by the person receiving the proceeds of the transmittal. A non-bank
financial institution that acts as an intermediary must retain the original or a copy of the transmittal order.
Additional requirements apply in the case of transactions involving entities that are not “established customers.” In all cases, required records
must be kept for five years.
2 Such information generally includes the name, address and account number of the transmittor, the amount and execution date of the
transmittal order, the identity of the recipient*s financial institution and the name, address and account number of the recipient.
3 60 Fed. Reg. 220 (recordkeeping rules) and 60 Fed. Reg. 234 (travel rule) (January 3, 1995) (Attachments A and B, respectively, to this
Memorandum).
4 61 Fed. Reg. 14383 (amendments to recordkeeping rules) and 61 Fed. Reg. 14386 (amendments to travel rule) (April 1, 1996) (Attachment
C to this Memorandum).
5 See 61 Fed. Reg. 14382 (April 1, 1996).
6 See 31 CFR 103.11(i) (which will become 31 CFR 103.11(n) upon the adoption of the new rules).
April 16, 1996
TO: BANK AND TRUST ADVISORY COMMITTEE No. 9-96
COMPLIANCE COMMITTEE No. 9-96
OPERATIONS COMMITTEE No. 7-96
SEC RULES MEMBERS No. 18-96
TRANSFER AGENT ADVISORY COMMITTEE No. 20-96
RE: WIRE TRANSFER RECORDKEEPING AND RELATED RULES
______________________________________________________________________________
As you may know, the Federal Reserve Board and the Department of the Treasury have
adopted new recordkeeping and other requirements with respect to wire transfers of $3,000 or more.
The rules require “financial institutions” that send wire transfers, act as intermediaries in wire transfer
transactions or receive wire transfers to collect and retain certain information.1 A companion rule
known as the “travel rule” requires “financial institutions” that act as transmittors* financial institutions
and intermediary financial institutions in transmittals of funds to include specified information in
transmittal orders sent to receiving financial institutions.2 The releases adopting these rules3 and recent
amendments thereto 4 are attached. The effective date of the rules has been delayed to May 28, 1996.5
The term “financial institution” is defined for purposes of the above rules as: “each agent,
branch or office within the United States of any person doing business, whether or not on a regular
basis or as an organized business concern” in any of several specified capacities including, among
others, a bank, a broker or dealer in securities, or a “person engaged in the business of transmitting
funds.”6 The specific requirements vary depending upon the type of institution, its role in the
transaction and its relationship with the parties to the transaction.
The Institute recently contacted the Treasury Department to seek clarification of the scope of
the rules, and in particular whether they apply to mutual fund transfer agents.
We are pleased to report that a Treasury Department official expressed the view that the rules do not
apply to a transfer agent, unless the transfer agent also is a bank or a broker-dealer. A copy of a
7 See Appendix D to this Memorandum.
follow-up letter sent to the Treasury Department official describing the Institute*s understanding of this
position is attached.7 The official subsequently confirmed his agreement with the position as expressed
in the Institute*s letter.
In analyzing whether the rules apply to entities that are covered by the definition of “financial
institution” and may be involved in mutual fund-related wire transfers (e.g., mutual fund underwriters),
it should be noted that in addition to “financial institution” and “established customer,” the rules utilize
many other defined terms. For example, in the case of a non-bank financial institution, recordkeeping
requirements apply where the financial institution “accepts” a “transmittal order,” either as a
“transmittor*s financial institution,” as an “intermediary financial institution,” or as a “recipient*s
financial institution.” Thus, it is necessary to determine whether the entity acts in any of these
capacities, as they are defined in the rules, as well as whether a particular instruction with respect to a
wire transfer constitutes a “transmittal order.” Moreover, several of the defined terms contain notable
exceptions. For example, the definitions of “funds transfer” and “transmittal of funds” exclude
transactions made through an automated clearinghouse.
Justine Phoenix Frances M. Stadler
Director - Operations/Transfer Agency Associate Counsel
Attachment (in .pdf format)
Note: Not all recipients of this memo will receive an attachment. If you wish to obtain a copy of the
attachment referred to in this memo, please call the Institute's Information Resource Center at
(202)326-8304, and ask for this memo's attachment number: 7788.