Regulatory Alerts2005-12-16 | HTMLAdded
Facts about the Section 312 of the USA PATRIOT Act Final Regulation and Notice of Proposed Rulemaking
The Financial Crimes Enforcement Network implements final regulations for Section 312 of the USA PATRIOT Act requiring U.S. financial institutions to establish due diligence programs for correspondent accounts held by foreign financial institutions and private banking accounts for non-U.S. persons. The final rule mandates enhanced scrutiny for private banking accounts maintained for senior foreign political figures and their associates, while a separate notice of proposed rulemaking seeks comments on enhanced due diligence for correspondent accounts held by certain offshore or high-risk foreign banks. Covered entities, including banks, securities broker-dealers, futures commission merchants, and mutual funds, must apply these requirements to new accounts within 90 days of Federal Register publication and to existing accounts within 270 days.