Regulatory Alerts2024-07-03
Added
Imposition of Special Measure Regarding Al-Huda Bank as a Financial Institution of Primary Money Laundering Concern
The rule prohibits covered U.S. financial institutions from opening or maintaining a correspondent account for, or on behalf of, Al-Huda Bank, a foreign financial institution based in Iraq. It further requires these institutions to take reasonable steps not to process transactions for the correspondent account of a foreign banking institution in the United States if such a transaction involves Al-Huda Bank. Covered institutions must also apply special due diligence to their foreign correspondent accounts that is reasonably designed to guard against their use to process transactions involving Al-Huda Bank. This final rule is effective August 2, 2024.