Page:United States Statutes at Large Volume 108 Part 3.djvu/492

 108 STAT. 2244 PUBLIC LAW 103-325—SEPT. 23, 1994 are carried out without requiring a report with respect to such transactions. Regulations. "(3) CRITERIA FOR EXEMPTION. — The Secretary of the Treasury shall establish, by regulation, the criteria for granting and maintaining an exemption under paragraph (1). "(4) GUIDELINES.— " (A) IN GENERAL.— The Secretary of the Treasury shall establish guidelines for depository institutions to follow in selecting customers for an exemption under this subsection. "(B) CONTENTS. —The guidelines may include a description of the types of businesses or an itemization of specific businesses for which no exemption will be granted under this subsection to any depository institution. Regulations. "(5) ANNUAL REVIEW.— The Secretary of the Treasury shall prescribe regulations requiring each depository institution to— "(A) review, at least once each year, the qualified business customers of such institution with respect to whom an exemption has been granted under this subsection; and "(B) upon the completion of such review, resubmit information about such customers, with such modifications as the institution determines to be appropriate, to the Secretary for the Secretary's approval. "(6) 2-YEAR PHASE-IN PROVISION. —During the 2-year period beginning on the date of enactment of the Money Laundering Suppression Act of 1994, this subsection shall be applied by the Secretary on the basis of such criteria as the Secretary determines to be appropriate to achieve an orderly implementation of the requirements of this subsection. "(f) PROVISIONS APPLICABLE TO MANDATORY AND DISCRETIONARY EXEMPTIONS.— " (1) LIMITATION ON LIABILITY OF DEPOSITORY INSTITU- TIONS.— No depository institution shall be subject to any penalty which may be imposed under this subchapter for the failure of the institution to file a report with respect to a transaction with a customer for whom an exemption has been granted under subsection (d) or (e) unless the institution— "(A) knowingly files false or incomplete information to the Secretary with respect to the transaction or the customer engaging in the transaction; or "(B) has reason to believe at the time the exemption is granted or the transaction is entered into that the customer or the transaction does not meet the criteria established for granting such exemption. "(2) COORDINATION WITH OTHER PROVISIONS. —Any exemption granted by the Secretary of the Treasury under section 5318(a) in accordance with this section, and any transaction which is subject to such exemption, shall be subject to any other provision of law applicable to such exemption, including— "(A) the authority of the Secretary, under section 5318(a)(6), to revoke such exemption at any time; and "(B) any requirement to report, or any authority to require a report on, any possible violation of any law or regulation or any suspected criminal activity. "(g) DEPOSITORY INSTITUTION DEFINED.— For purposes of this section, the term 'depository institution'—

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