Regulatory Alerts2002-07-23
Added
Special Due Diligence Programs for Certain Foreign Accounts
The Department of the Treasury and the Financial Crimes Enforcement Network issue an interim final rule temporarily deferring the application of 31 U.S.C. 5318(i) requirements to non-bank financial institutions, including casinos, money services businesses, mutual funds, and credit card system operators. Banks must comply with all due diligence and enhanced due diligence provisions for correspondent and private banking accounts for non-U.S. persons, while securities brokers, dealers, futures commission merchants, and introducing brokers are required to comply only with provisions related to private banking accounts. The rule establishes interim compliance guidance for covered institutions pending the issuance of a final rule, with written comments accepted until August 22, 2002.