Regulatory Alerts2002-05-30
Added
Due Diligence Anti-Money Laundering Programs for Certain Foreign Accounts Implementing Section 312 of the USA PATRIOT Act
Treasury and FinCEN propose regulations to implement Section 312 of the USA PATRIOT Act, requiring U.S. financial institutions to establish due diligence policies, procedures, and controls for correspondent and private banking accounts held by non-U.S. persons. The proposed rule defines covered financial institutions to include entities subject to existing anti-money laundering program requirements, such as depository institutions, securities broker-dealers, casinos, and money services businesses. Specific obligations include identifying beneficial owners, ascertaining the source of funds for private banking accounts with minimum deposits of $1,000,000, and conducting enhanced scrutiny for accounts involving senior foreign political figures. Written comments on the proposal are due by July 1, 2002.