We are on the expanded Fedwire message format. For outgoing wire transfers over $3,000 our bankers are having trouble getting the wire benefiiaries' address. Is it ABSOLUTELY required that we obtain and retain the beneficiaries address? The FDIC told us it was required and FinCEN told us it was not. HELP!

Take a look at 31 CFR 103.33 (e)(1)(i). This is really confusing! (I know that is a shock).....

I believe that it is required.
Just curious, why is it difficult to get the address of who you are sending the wire to?

(1) Recordkeeping requirements. (i) For each payment order that it accepts as an originator's bank, a bank shall obtain and retain either the original or a microfilm, other copy, or electronic record of the following information relating to the payment order:
(A) The name and address of the originator;
(B) The amount of the payment order;
(C) The execution date of the payment order;
(D) Any payment instructions received from the originator with the payment order;
(E) The identity of the beneficiary's bank; and
(F) As many of the following items as are received with the payment order:
(1) The name and address of the beneficiary;
(2) The account number of the beneficiary; and
(3) Any other specific identifier of the beneficiary.


It is only the information in A through E that you are required to obtain. If you got any of the information in F, you must keep it. Based on identical language in the travel rule you have to send it with the wire as well. However, you are not required to get the information in F unless you have a a policy or procedure that says otherwise.

The sender could make up an address and you would be none the wiser. It is the receiving bank who can reasonably be expected to fully identify the beneficiary.

Is it okay for the address to be a post office box, or is the physical address required to be maintained in the records? For example: our customer wires funds to a family member in another state and our wire record reflects a PO Box for our customer rather than a physical address. Is this a violation??? I've just seen that this is common in our wire department and want to ensure it is corrected ASAP if it's a problem.

THANKS TO ANYONE WHO CAN OFFER HELP.

This portion of the BSA regulations does not specify that it must be a physical address. Any requirement to that effect would be a matter of your institution's policy and would certainly qualify as a "best practice." If you only send wires for customers with account relationships, the requirement should not be burdensome.

I believe P.O. Boxes are allowed on wire transfers. See this link under Section III in the paragraph that begins with "FinCEN believes that the Travel Rule,...." http://www.bankersonline.com/topstory/fedreg/68FR66708.txt

That said, we get the physical address on the originator for wires we send (to be consistent with CIP and CTRs) even though a P.O. Box seems to be permissable for wires. As for the beneficiary, I don't think the regulation "requires" us to ask for it - we only have to record it if the customer gives it to you. It might be a good idea to ask for it, but I don't think the regulation requires that.

I've always hated footnotes. Here's an example of why. The document Banjo linked to includes this language:

Consequently, for purposes of 31 CFR 103.33(g), the term address means either the transmittor's street address, or the transmittor's address maintained in the financial institution's automated customer information file so long as the institution maintains the transmittor's address on file and such address information is retrievable upon request by law enforcement.\4\

\4\ Consistent with the final rules issued under section 326 of the USA Patriot Act (Pub. L. 107-56), an ``address'' for purposes of the Travel Rule, for an individual, is a residential or business street address, or an Army Post Office Box or a Fleet Post Office Box, or the residential or business street address of next of kin or another contact individual for individuals who do not have a residential or business address. For a person other than an individual (such as a corporation, partnership, or trust), ``address'' is a principal place of business, local office, or other physical location. See 68 FR 25090 (May 9, 2003) (Final Rules for Customer Identification Programs) issued jointly with the Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, Office of Thrift Supervision, Federal Deposit Insurance Corporation, National Credit Union Administration, Commodity Futures Trading Commission, and Securities and Exchange Commission. Note, however, that while the Section 326 rules apply only to new customers opening accounts on or after October 1, 2003, and exempt wire transfers from the definition of ``account'' for banks, the Travel Rule applies to all transmittals of funds of $3,000 or more, whether or not the transmittor is a customer for purposes of the Section 326 rules.

They clearly went around the house twice in order to get to the barn. However, I think it translates to an indication that a P.O. box is okay unless this was a new account customer after 10/01/03. In that circumstance, they would be expecting a physical address. It's pretty clear that having the address in the CIF would be fine, it would not have to be in any ancillary documents the bank maintained voluntarily; e.g. wire transfer log.

Our bank policy is to require all org and all benf information on every wire interantional and domestic. No PO Boxes on either. This has caused many problems because we have thousands of repetitive wires without the proper information, but it is a policy strickly enforced.
On incoming wires without addresses we commonly send service messages back to originator bank for the address to ensure that we are not receiving funds from an OFAC restricted country.