Section 103.33 of Title 31, Code of Federal Regulations, outlines the detailed recordkeeping requirements imposed on financial institutions in the United States regarding transmittals of funds. The regulation applies to both banks and non-bank financial institutions when handling transfers of $3,000 or more.

Each institution must retain either the original document or a copy in microfilm or electronic form. This includes any payment or transmittal order they accept, whether they are acting as the originator’s bank, an intermediary bank, or the beneficiary’s bank. Information must be stored in a way that allows for retrieval by customer name, and where relevant, by account number.

Required Information for Each Transfer

For banks acting on behalf of an originator, the information to be retained includes the name and address of the originator, the amount and execution date of the payment, any accompanying payment instructions, the identity of the beneficiary’s bank, and as much identifying information on the beneficiary as is received with the order. If the originator is not an established customer and the transaction is made in person, the bank must verify and record identification such as a driving licence, passport, or taxpayer identification number.

If the beneficiary is also not an established customer, and the proceeds are delivered in person, the beneficiary’s bank must follow a similar identification and recordkeeping process. If the payment is delivered through other means, such as post, the institution must retain a copy of the cheque or payment instrument used, along with the name and address of the person to whom it was sent.

Application to Non-Bank Financial Institutions

For non-bank financial institutions, equivalent rules apply. These institutions must also collect and retain details about the transmittor, including name, address, execution date, amount, and beneficiary information. If the transmittor is not an established customer, verification and recordkeeping requirements mirror those imposed on banks.

In the case of recipients who are not established customers, institutions must verify identity where proceeds are delivered in person and retain documentation of identification, taxpayer details, or notation of the absence of such data. Where proceeds are delivered by other means, the relevant payment documentation must be retained.

Transmission of Information Through the Payment Chain

Institutions acting as transmittors, intermediaries, or recipients must include specific data in the transmittal order at the time it is passed to the next institution. This includes the transmittor’s name, address, account number (if applicable), execution date, the amount, the identity of the recipient’s financial institution, and identifying details for the recipient. These requirements ensure that transaction data is carried along the full chain of the funds transfer.

Institutions making use of the Federal Reserve’s Fedwire system are temporarily exempted from transmitting certain data in real time until full message format upgrades are completed. During this transition period, institutions may instead provide the information upon lawful request or in support of compliance reviews.

Exceptions to the Requirements

Transfers are exempt from the provisions if both the originator and beneficiary are specific types of entities such as banks, broker-dealers, mutual funds, or government bodies. Transfers are also exempt if the originator and beneficiary are the same person and the same institution handles both roles.

Conclusion: WTR Compliance Integration

The regulatory requirements detailed in 31 CFR § 103.33 form the foundation of the United States’ domestic implementation of the Wire Transfer Rule. The rules mandate the collection, retention, and onward transmission of originator and beneficiary information for transfers of $3,000 or more. The structure of the regulation ensures that both banks and non-bank financial institutions contribute to a robust audit trail, enabling law enforcement and regulatory authorities to trace financial flows and investigate illicit activity. While the regulation does not reference international standards explicitly, it operationalises core principles of transactional transparency and traceability that underpin global anti-money laundering efforts.