(a) Does this section apply to me? This section applies
if you hold a license issued by the department under Finance Code,
Chapter 152, or are the authorized delegate of a license holder, as
applicable, and you conduct currency exchange transactions.
(b) What are the general recordkeeping requirements?
(1) As a general matter, you must maintain:
(A) records of all filings made, and that contain all
information required, under applicable federal laws and regulations,
including the BSA and 31 CFR Chapter X;
(B) in addition to the records required under Finance
Code, Chapter 152, the records required under this section related
specifically to currency exchange transactions; and
(C) records sufficient to enable you to file accurate
and complete reports with the commissioner or department in accordance
with Finance Code, Chapter 152 and Chapter 33 of this title (relating
to Money Services Businesses).
(2) You must obtain and retain the information required
under this section in a log or by another means of retention that
allows the information to be readily retrieved. In addition, you must:
(A) maintain your records in such a manner that you
can identify and make available to the department the records related
to your Texas transaction activity, and separately account for your
Texas transaction activity; and
(B) make your records available to the department within
the time period reasonably requested.
(c) What specific records must I keep related to currency
exchange?
(1) With respect to currency exchange transactions
in an amount in excess of $1,000, you must keep a record for each
transaction that contains:
(A) the customer and transaction information required
under 31 CFR §1022.410(b)(3), provided that, if your customer
does not have a taxpayer identification number (e.g., social security,
employee identification number) or passport number and is an alien,
you may provide the number and description of an alternate valid entry
document issued by a U.S. Federal or state government, such as a border
crossing card; and
(B) the specific identifying information (number, type,
issuer) of a document that contains the name and a photograph of your
customer and that is customarily acceptable within the banking community
as means of identification when cashing checks for nondepositors;
(C) your customer's date of birth;
(D) the rate of exchange;
(E) the amount of any fee charged for the transaction;
(F) the location of the office where the transaction
is conducted;
(G) information sufficient to identify your employee
or representative who conducts the transaction, such as initials,
unique employee or representative code, or other appropriate identifier
and a corresponding legend, if necessary; and
(H) the unique number of the receipt required under §33.33
of this title (relating to Currency Exchange Receipts).
(2) With respect to a transaction subject to paragraph
(1) of this subsection, you must ask your customer whether the customer
is conducting the transaction on the customer's own behalf or on behalf
of another person (individual or business). If your customer is conducting
the transaction on behalf of another person, you must, in addition
to the information required under paragraph (1)(A) - (H) of this subsection,
obtain and record the name and address of the other person together
with appropriate identification for the other person, such as taxpayer
identification, passport, or alien registration number.
(3) With respect to currency exchange transactions
in an amount of $1,000 or less, you must keep a record for each transaction
that contains:
(A) the date and amount of the transaction;
(B) the currency names and total amount of each currency;
(C) the location of the office where the transaction
is conducted;
(D) the rate of exchange; and
(E) the amount of fee charged for the transaction.
(d) May I obtain a waiver of the recordkeeping requirements?
The commissioner may waive any requirement of this section upon a
showing of good cause if the commissioner determines that:
(1) you maintain records sufficient for the department
to examine your currency exchange business; and
(2) the imposition of the requirement would cause an
undue burden on you and conformity with the requirement would not
significantly advance the state's interest under Finance Code, Chapter
152.
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Source Note: The provisions of this §33.31 adopted to be effective August 31, 2006, 31 TexReg 6643; amended to be effective July 8, 2010, 35 TexReg 5805; amended to be effective May 5, 2011, 36 TexReg 2724; amended to be effective July 5, 2018, 43 TexReg 4452; amended to be effective November 16, 2023, 48 TexReg 6584 |