|
Highlights:
- On August 2, 2007, FinCEN issued the attached final rule implementing a key provision of Section
312 of the USA PATRIOT Act regarding special due diligence programs for certain foreign
accounts. The final rule took effect on September 10, 2007, and completes the implementation of
Section 312 of the USA PATRIOT Act.
- The final rule applies to any correspondent account maintained for a foreign bank that operates
under an offshore banking license, a banking license issued by a country designated as
non-cooperative with international anti-money laundering principles, or a banking license issued
by a country designated by the Secretary of the Treasury as warranting special measures.
- The rule states that U.S. financial institutions must conduct enhanced scrutiny of such
correspondent accounts to guard against money laundering and report suspicious transaction,
determine whether the foreign bank in turn allows other foreign banks usage of the account, and
identify the owner and ownership interest for foreign banks whose shares are not publicly
traded.
- Enhanced due diligence (EDD) provisions will apply to correspondent accounts for certain foreign
banks established on or after February 5, 2008. On May 5, 2008, the EDD provision requirements
will apply to all applicable correspondent accounts, including those established prior to
February 2008.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officer
BSA Compliance Office
Related Topics:
Bank Secrecy Act/Anti-Money Laundering Programs
Attachment:
August 9, 2007, Federal Register notice Special Due Diligence Programs for Certain
Foreign Accounts - PDF (PDF Help)
Contact:
Anti-Money Laundering Specialist Marie C. Edwards
at SASFIL@FDIC.gov or (202) 898-3673
Note:
FDIC Financial Institution Letters (FILs) may be
accessed from the FDIC's Web site at
http://www.fdic.gov/news/news/financial/2007/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,
3501 N. Fairfax Drive, Room E 1002, Arlington, VA
22226 (1-877-275-3342 or 703-562-2200).
|
