Financial Institution Definition | FinCEN.gov (2024)

FAQs

What is FinCEN's definition of a financial institution? ›

Financial Institution - §1010.100(t) Each agent, agency, branch, or office within the United States of any person doing business, whether or not on a regular basis or as an organized business concern, in one or more of the capacities listed below:(1) A bank (except bank credit card systems); (2)A broker or dealer in ...

§ 20 for the definition of "financial institution." The term includes the Federal Deposit Insurance Corporation and insured institutions, credit unions insured by the National Credit Union Share Insurance Fund, and other Federally regulated financial institutions, such as small business investment companies (defined in ...

FFIs include, but are not limited to: Depository institutions (for example, banks) Custodial institutions (for example, mutual funds) Investment entities (for example, hedge funds or private equity funds) Certain types of insurance companies that have cash value products or annuities.

As defined in the BSA 31 USC 5312(a)(2), the term “financial institution” includes the following: An insured bank (as defined in section 3(h) of the FDI Act ( 12 USC 1813(h))). A commercial bank or trust company. A private banker.

A financial institution (FI) is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange. Financial institutions are vital to a functioning capitalist economy in matching people seeking funds with those who can lend or invest it.

The major categories of financial institutions are central banks, retail and commercial banks, credit unions, savings and loan associations, investment banks and companies, brokerage firms, insurance companies, and mortgage companies.

The term U.S. financialinstitution means any U.S. entity that is engaged in the business of accepting deposits, making, granting, transferring, holding, or brokering loans or credits, or purchasing or selling foreign exchange, securities, commodity futures or options, or procuring purchasers and sellers thereof, as ...

Key Takeaways

Banks are financial institutions that are licensed to provide loan products and receive deposits; non-banking institutions cannot do this. Financial services include insurance, the facilitation of payments, wealth management, and retirement planning.

Definition & Citations:

An organization that is a channel between the parties involved in funds transfer between fund savers and fund borrowres. They are depository or nondepository insurance companies. Depository banks pay interest on a deposit from the interest on loans.

Financial Institution Name means the name of the bank or financial organization that is to carry out transactions based on the authority granted by the payer. This entity will continue to carry out transactions until they receive a written termination notice of this authority from the payer.

What is considered a foreign financial institution? ›

The term “foreign financial institution” means any financial institution which is a foreign entity. Except as otherwise provided by the Secretary, such term shall not include a financial institution which is organized under the laws of any possession of the United States.

The FATCA penalties for non-compliance may include: A 30% withholding tax on certain US-sourced income. Loss of access to the US financial system for non-compliant FFIs. Negative impact on a company's reputation and business relationships.

Financial institutions required to file a FinCEN SAR include: Banks (31 CFR § 1020.320); Casinos and Card Clubs (31 CFR § 1021.320); Money Services Businesses (31 CFR § 1022.320); Brokers or Dealers in Securities (31 CFR § 1023.320); Mutual Funds (31 CFR § 1024.320); and Futures Commission Merchants and Introducing ...

Financial Institution - A "financial institution" includes any person doing business in one or more of the following capacities: (1) bank (except bank credit card systems);

Cash App is a financial services platform, not a bank. Banking services are provided by Cash App's bank partner(s). Prepaid debit cards issued by Sutton Bank. Brokerage services by Cash App Investing LLC, member FINRA/SIPC, subsidiary of Block, Inc.

(a) Financial institution means any office of a bank, savings bank, card issuer as defined in section 103 of the Consumer Credit Protection Act (15 U.S.C.

Qualified Financial Institutions means Debt Financing Sources reasonably acceptable to Buyer (it being agreed that regulated banks chartered in the United States regularly participating in the U.S.