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Inactive Financial Institution Letters
USA Patriot
Act
Extension of Applicability Dates for Implementing International
Correspondent Banking Provisions and Private Banking Provisions of Section
312
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FIL-35-2006
April 24, 2006
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Summary:
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The Financial Crimes Enforcement
Network (FinCEN) has issued the attached final rule extending, in part, the
applicability dates for implementing the international correspondent banking
provisions and the private banking provisions of Section 312 of the USA PATRIOT
Act.
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Highlights:
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On January 4, 2006,
FinCEN issued a final regulation implementing
Section 312 of the USA PATRIOT Act. The final rule took
effect on February 3, 2006, and superseded the interim final rule
issued
on July 23, 2002.
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The final rule
requires U.S. financial institutions to apply
due diligence to correspondent accounts maintained for
certain foreign financial institutions and private banking accounts
maintained
for foreign
individuals.
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Regarding
correspondent banking, generally, the rule establishes
the scope of U.S. financial institutions to which the rule
applies and outlines general due diligence requirements to mitigate
exposure
to potential
money-laundering activities.
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Regarding private
banking accounts, the rule outlines the due
diligence and enhanced due diligence that is required and
further clarifies duties with respect to accounts maintained for
senior
foreign political
figures.
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On March 30, 2006,
FinCEN extended the applicability date required
by the January 4, 2006, final rule from April 4, 2006,
to July 5, 2006, for new accounts opened by U.S. financial
institutions
(see attached Federal
Register notice). The effective date for existing accounts
to comply with the January 4, 2006, final rule remains October 2,
2006.
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Please distribute
this information to the appropriate
personnel in your institution.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officer
BSA Compliance Officer
Related Topics:
Bank Secrecy Act/Anti-Money Laundering Programs
Attachment:
March
30, 2006, Federal
Register notice extending applicability date - PDF
55k
(PDF Help)
Contact:
Review Examiner Tonya L.
Spratley, Division of Supervision and Consumer Protection,
or Carl Gold, Legal Division, at SASFIL@FDIC.gov or (202) 898-3673
Note:
FDIC
Financial Institution Letters (FILs) may be accessed from the FDIC's Web
site at www.fdic.gov/news/news/financial/2006/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC FILs may be obtained through the FDIC's Public
Information
Center,
(1-877-275-3342 or 703-562-2200).
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