Inactive Financial Institution Letters
|USA Patriot Act
Extension of Applicability Dates for Implementing International Correspondent Banking Provisions and Private Banking Provisions of Section 312
April 24, 2006
||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.
- 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effect on February 3, 2006, and superseded the interim final rule issued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.
- 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
- 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
- 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
- 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.
- Please distribute this information to the appropriate
personnel in your institution.
FDIC-Supervised Banks (Commercial and Savings)
Chief Executive Officer
BSA Compliance Officer
Bank Secrecy Act/Anti-Money Laundering Programs
30, 2006, Federal
Register notice extending applicability date - PDF 55k
Review Examiner Tonya L. Spratley, Division of Supervision and Consumer Protection,
or Carl Gold, Legal Division, at SASFIL@FDIC.gov or (202) 898-3673
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
(1-877-275-3342 or 703-562-2200).