WASHINGTON - The Treasury Department is delaying implementation of a wire transfer rule that had been scheduled to take effect in January.
The new regulation would have required banks and non-bank financial institutions to keep for five years detailed records of the wire transfers they send and receive.
Comments From Industry
The Treasury is delaying the starting date of its new rule for at least six months in order to hear comments from an industry advisory group.
The group is now being formed as part of a top-to-bottom review of Bank Secrecy Act Enforcement, a Treasury source said.
Ronald K. Noble, assistant Treasury secretary for enforcement, said, "We will take every step to ensure that the final funds transfer rules are workable for both financial institutions and law enforcement."
Records for Five Years
Generally, the regulation requires processors of wire transfers to keep for five years records of the name and address of the sender and receiver of the money, the amount and date of the wire transfer, and payment instructions received - such as relevant account numbers and the name of the bank that is receiving the money.
"The funds transfer rules will greatly assist law enforcement's efforts to investigate money laundering through funds transfers by requiring a standardized audit trail for these transactions," Mr. Noble said.
