Regulatory Alerts2006-01-04
Added
Special Due Diligence Programs for Certain Foreign Accounts 31 CFR Part 103
The Financial Crimes Enforcement Network proposes a rule requiring U.S. financial institutions to apply risk-based enhanced due diligence to correspondent accounts for foreign banks operating under offshore licenses, non-cooperative jurisdictions, or countries warranting special measures. The proposal mandates procedures for enhanced scrutiny of money laundering risks, assessment of nested correspondent accounts, and identification of owners of non-publicly traded foreign banks. Securities broker-dealers, futures commission merchants, introducing brokers, mutual funds, and certain trust entities remain exempt from these enhanced requirements until a final rule is issued. Written comments on the proposal must be submitted by March 6, 2006.