What Is 31 CFR

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Last updated: April 15, 2026

Quick Answer: 31 CFR (Code of Federal Regulations) is the Treasury Department's regulatory framework, established in 1936, containing rules on financial reporting, sanctions, and monetary policy enforcement.

Key Facts

31 CFR was formally codified in 1936 under the U.S. Code of Federal Regulations
Title 31 governs all federal financial operations and Treasury Department regulations
The Office of Foreign Assets Control (OFAC) operates under 31 CFR Chapter V
31 CFR Part 103 mandated early Bank Secrecy Act reporting requirements
As of 2023, 31 CFR includes over 500 sections across 10 chapters

Overview

31 CFR, or Title 31 of the Code of Federal Regulations, contains the rules and procedures governing the U.S. Department of the Treasury. It covers a broad range of financial regulations, including currency transactions, federal debt management, and enforcement of economic sanctions. The framework ensures compliance with federal financial laws across banking, tax, and national security domains.

Originally established in 1936, 31 CFR has evolved to address modern financial threats such as money laundering and terrorist financing. It is updated regularly through the Federal Register and enforced by agencies like the Financial Crimes Enforcement Network (FinCEN) and OFAC. Understanding 31 CFR is essential for financial institutions, legal professionals, and compliance officers.

Regulatory Scope: 31 CFR spans over 500 individual sections organized into 10 chapters, each addressing distinct Treasury functions as of 2023.
Historical Origin: The codification of 31 CFR began in 1936 under Executive Order 7298 issued by President Franklin D. Roosevelt.
Legal Authority: It derives authority from statutes like the Bank Secrecy Act of 1970 and the International Emergency Economic Powers Act (IEEPA).
Enforcement Agencies: Key enforcers include FinCEN, the Internal Revenue Service (IRS), and the Office of Foreign Assets Control (OFAC).
Public Access: All 31 CFR regulations are freely accessible via the Electronic Code of Federal Regulations (e-CFR) website.

How It Works

The structure of 31 CFR is hierarchical, with chapters, parts, and sections detailing specific rules and compliance requirements. Each chapter corresponds to a bureau or office within the Treasury Department, ensuring targeted regulatory oversight.

Chapter I:U.S. Department of the Treasury oversees general financial operations, including debt collection and fiscal accounting procedures.
Chapter V:Office of Foreign Assets Control (OFAC) administers sanctions against foreign individuals, entities, and nations under IEEPA.
Part 1010: Defines BSA/AML compliance requirements, including customer identification and suspicious activity reporting for banks.
Subpart B: Requires financial institutions to file Currency Transaction Reports (CTRs) for cash deposits exceeding $10,000.
Part 597: Implements anti-terrorism sanctions by listing Specially Designated Global Terrorists (SDGTs).
Section 31.306: Authorizes penalties up to $139,426 per violation for non-compliance with reporting rules as of 2023.

Comparison at a Glance

Below is a comparison of key regulatory titles within the CFR:

CFR Title	Department	Primary Focus	Key Regulation	Penalty Cap (2023)
31 CFR	Department of the Treasury	Financial regulations, sanctions, currency	BSA, OFAC rules	$139,426 per violation
12 CFR	Federal Reserve, OCC	Banking supervision, lending standards	Truth in Lending Act	$1,178,500 for consumer violations
26 CFR	Internal Revenue Service	Federal tax code implementation	IRS Form 1040 rules	Varies by tax code section
15 CFR	Department of Commerce	Export controls, trade regulations	EAR (Export Administration Regulations)	$300,000 per violation
42 CFR	Department of Health and Human Services	Public health, Medicare, HIPAA	HIPAA Privacy Rule	$50,000 per violation

This table highlights how 31 CFR is distinct in its focus on Treasury-led financial enforcement. While other titles regulate health or commerce, 31 CFR uniquely integrates national security with financial oversight, especially through sanctions and anti-money laundering mandates.

Why It Matters

31 CFR plays a critical role in maintaining the integrity of the U.S. financial system. Its regulations help prevent illicit financial flows, support national security objectives, and ensure transparency in monetary transactions.

Anti-Money Laundering: Financial institutions must comply with BSA requirements under 31 CFR to detect and report suspicious transactions.
Sanctions Enforcement:OFAC’s SDN list, governed by 31 CFR, blocks over 10,000 entities from accessing U.S. financial systems.
Global Influence: U.S. dollar dominance means 31 CFR rules affect international banking practices worldwide.
Corporate Compliance: Multinational firms invest millions annually to align with 31 CFR Part 501 sanctions guidelines.
Penalty Risks: Non-compliance can result in multi-million dollar fines, as seen in the $629 million HSBC settlement in 2012.
Policy Tool: Presidents use 31 CFR authorities to impose emergency sanctions without congressional approval during crises.

As financial systems grow more complex, 31 CFR remains a foundational tool for regulatory compliance and national economic security. Its reach extends beyond U.S. borders, shaping global financial governance.