Regulatory Alerts2003-04-03
Added
FinCEN Ruling 2003-2: Definition of Foreign Shell Bank and Foreign Bank
FinCEN determines that a Barbados-licensed offshore bank is not a foreign shell bank under 31 CFR 103.175 because it maintains physical offices and staff in Barbados, but classifies it as a foreign bank under 31 CFR 103.11(o). Consequently, covered financial institutions in the United States must obtain ownership records and agent information for service of legal process from this entity under 31 CFR 103.177. FinCEN denies a request for exemption from these record-keeping requirements, citing the statutory mandate of section 319(b) of the USA PATRIOT Act and the lack of demonstrated undue burden on the institution.