31 CFR § 501.604 Reports on rejected transactions.

Date issued: Mar. 01 2024

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TURBOFAC Commentary (514 words)

Notes:

1) The scope of this provision was radically expanded in 2019. Refer to FAQ # 819 and FAQ # 820 for interpretations of this provision.

2) The version in place prior to June, 2019 applied to "U.S. financial institutions" with respect to "rejected funds transfers." The amended version applies to "[a]ny U.S. person (or person subject to U.S. jurisdiction), including a financial institution, that rejects a transaction." In other words, it is no longer just financial institutions, and not just funds transfers, that are subject to the rejected transaction reporting requirements.

The term "transactions" is defined to mean “transactions related to wire transfers, trade finance, checks, foreign exchange, and goods or services.”

In the context of banks, the term "rejected funds transfers" did not apply to mere "inquiries." FAQ 53, for example, asks "How do I differentiate between an "inquiry"...