Regulatory Alerts2004-06-15
Added
Guidance On Accepting Accounts From Foreign Governments, Foreign Embassies And Foreign Political Figures
Financial institutions must evaluate whether to accept accounts for foreign governments, embassies, or political figures based on their own business objectives, risk assessments, and capacity to manage those risks. The Agencies will not direct or encourage institutions to open, close, or refuse specific accounts absent extraordinary circumstances. Institutions are expected to assess risks, ensure compliance with the Bank Secrecy Act and USA PATRIOT Act, and structure relationships to conform to conventional U.S. domestic banking standards where feasible. Examiners will conduct risk-based supervision, with increased scrutiny for higher-risk relationships.