A. Within thirty days after any transaction or series or pattern of transactions that is conducted or attempted by, at or through the business and that involves or aggregates $5,000 or more in funds or other assets, each licensee and authorized delegate of a licensee and each money transmitter shall file with the attorney general’s office in a form prescribed by the attorney general a report of the transaction or series or pattern of transactions if the licensee, authorized delegate or money transmitter knows, suspects or has reason to suspect that the activity either:

Attorney's Note

Under the Arizona Laws, punishments for crimes depend on the classification. In the case of this section:
ClassPrisonFine
Class 6 felonyup to 1 1/2 yearsup to $150,000
Class 2 misdemeanorup to 4 monthsup to $750
For details, see § 13-702 and § 13-707
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Terms Used In Arizona Laws 6-1242

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Authorized delegate: means a person that a licensee designates to engage in money transmission on behalf of the licensee pursuant to article 1 of this chapter. See Arizona Laws 6-1241
  • Contract: A legal written agreement that becomes binding when signed.
  • Department: means the department of insurance and financial institutions. See Arizona Laws 6-101
  • Deputy director: means the deputy director of the financial institutions division of the department. See Arizona Laws 6-101
  • Financial institution: means banks, trust companies, savings and loan associations, credit unions, consumer lenders, international banking facilities and financial institution holding companies under the jurisdiction of the department. See Arizona Laws 6-101
  • including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
  • Licensee: means a person that is licensed under article 1 of this chapter. See Arizona Laws 6-1241
  • Money transmitter: means a person that meets the definition of a bank, financial agency or financial institution as prescribed by 31 United States Code § 5312 or 31 C. See Arizona Laws 6-1241
  • Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
  • Statute: A law passed by a legislature.
  • United States: includes the District of Columbia and the territories. See Arizona Laws 1-215

1. Involves funds that are derived from illegal activities, is intended or conducted in order to hide or disguise funds or other assets that are derived from illegal activities, including the ownership, nature, source, location or control of the funds or other assets, as part of a plan to violate or evade any law or regulation or to avoid any transaction reporting requirement under this chapter or may constitute a possible money laundering violation under section 13-2317 or another racketeering violation as defined in section 13-2301.

2. Has no business or apparent lawful purpose or is not the sort of activity in which the particular customer would normally be expected to engage and the licensee, authorized delegate or money transmitter knows of no reasonable explanation for the activity after examining the available facts, including the background and possible purpose of the activity.

B. A licensee, authorized delegate or money transmitter that is required to file a report regarding business conducted in this state pursuant to the currency and foreign transactions reporting act (31 United States Code §§ 5311 through 5326, including any special measures that are established under 31 United States Code § 5318A, and 31 Code of Federal Regulations chapter X or 12 C.F.R. § 21.11) shall file a duplicate of that report with the attorney general.

C. All persons who are engaged in a trade or business and who receive more than $10,000 in money in one transaction or who receive more than $10,000 in money through two or more related transactions shall complete and file with the attorney general the information required by 31 United States Code § 5331 and the federal regulations relating to this section concerning reports relating to cash received in trade or business.

D. A licensee, authorized delegate or money transmitter that is regulated under the currency and foreign transactions reporting act (31 United States Code section 5325 and 31 Code of Federal Regulations chapter X) and that is required to make available prescribed records to the secretary of the United States department of the treasury on request at any time shall follow the same prescribed procedures and create and maintain the same prescribed records relating to each transaction.

E. Each licensee shall create records that reflect the provision of updated operating policies and procedures pursuant to section 6-1222, subsection A, paragraph 1 and of instruction that promotes compliance with this chapter, Title 13, Chapter 23 and 31 United States Code § 5318, including the identification of the provider and the material and instruction that were provided.

F. On request of the attorney general, a county attorney or the deputy director, a licensee, authorized delegate or money transmitter shall make any records that are created pursuant to this section available to the attorney general, a county attorney or the deputy director at any time.

G. If the deputy director or the attorney general finds that reasonable grounds exist for requiring additional recordkeeping and reporting in order to carry out the purposes of this chapter and to prevent the evasion of this chapter, the deputy director or the attorney general may issue an order requiring any group of licensees, authorized delegates or money transmitters in a geographic area to do any of the following:

1. Obtain information regarding transactions that involve total dollar amounts or denominations of $500 or more, including the names of any persons participating in those transactions and any persons or entities on whose behalf they are to be effected.

2. Maintain records of that information for at least five years and make those records available to the attorney general and the deputy director.

3. File a report with the attorney general and the deputy director regarding any transaction in the manner prescribed in the order.

H. An order issued pursuant to subsection G of this section is not effective for more than one hundred eighty days unless renewed after finding that reasonable grounds exist for continuing the order.

I. The timely filing of a report required by this section with the appropriate federal agency shall be deemed compliance with the reporting requirements of this section, unless the attorney general has notified the deputy director that reports of that type are not regularly and comprehensively transmitted by that federal agency to the attorney general.

J. This chapter does not preclude a licensee, authorized delegate, money transmitter, financial institution or person engaged in a trade or business from instituting contact with and disclosing customer financial records to appropriate state or local law enforcement agencies if the licensee, authorized delegate, money transmitter, financial institution or person has information that may be relevant to a possible violation of any criminal statute or to the evasion or attempted evasion of any reporting requirement of this chapter.

K. A licensee, authorized delegate, money transmitter, financial institution, person engaged in a trade or business or director, officer, employee, agent or authorized delegate of any of them that keeps or files a record as prescribed by this section, that communicates or discloses information or records under subsection J of this section or that requires another to make any such disclosure is not liable to any person under any law or rule of this state or any political subdivision of this state or under any contract or other legally enforceable agreement, including any arbitration agreement, for the disclosure or for the failure to provide notice of the disclosure to the person who is the subject of the disclosure or to any other person who is identified in the disclosure. This subsection is consistent with 31 United States Code § 5318(g)(3).

L. The attorney general may report any possible violations indicated by analysis of the reports required by this chapter to any appropriate law enforcement agency for use in the proper discharge of its official duties. If an officer or employee of this state or any political subdivision of this state receives a report pursuant to 31 United States Code § 5318(g), the report shall be disclosed only as provided in 31 United States Code § 5318(g). A person who releases information received pursuant to this subsection except in the proper discharge of official duties is guilty of a class 2 misdemeanor.

M. The requirements of this section are consistent with the requirements of the currency and foreign transactions reporting act (31 United States Code §§ 5311 through 5326 and federal regulations prescribed under those sections) unless the context otherwise requires.

N. A person who refuses to allow any lawful investigation by the deputy director, a county attorney or the attorney general or who refuses to make records available to the deputy director, a county attorney or the attorney general pursuant to subsection F of this section is guilty of a class 6 felony.