Opinion ID: 5081
Heading Depth: 2
Heading Rank: 1

Heading: The Definition of Financial Institution

Text: The Currency Transaction Reporting Act, 31 U.S.C. § 5313, authorizes the Secretary of the Treasury to issue regulations requiring that domestic financial institutions report certain domestic currency transactions. Pursuant to this authority, the Secretary promulgated 31 C.F.R. § 103.22(a)(1) which requires that [e]ach financial institution . . . shall file a report of each deposit, withdrawal, exchange of currency or other payment or transfer, by, through, or to such financial institution which involves a transaction in currency of more than $10,000. Almost all of the counts against the defendants were based on the failure to file currency transaction reports (CTRs) with respect to the cash for checks transactions. Mr. Levy and Mr. McNaughton contend on appeal that they had no obligation to file CTRs because the transactions in which they engaged did not make them financial institutions. Definitions of the term financial institution are found in the statute and in the regulations issued by the Secretary under the statute. The defendants' first argument is that their activities do not fit within the definition of financial institution found in the regulations. Their second argument is that, if their activities do fit within that definition, then the Secretary of the Treasury exceeded his authority under the statute by impermissibly enlarging the meaning of financial institution. 7
Financial institution is defined in the regulations as including [e]ach agent, agency, 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 one or more of the capacities listed below: