Regulatory Alerts2007-08-08
Added
Special Due Diligence Programs for Certain Foreign Accounts
The Financial Crimes Enforcement Network adopts final rules implementing enhanced due diligence requirements for correspondent accounts maintained for certain foreign banks under section 312 of the USA PATRIOT Act. Covered financial institutions must conduct risk-based enhanced scrutiny to guard against money laundering, determine if respondent banks maintain nested correspondent accounts, and identify owners of non-publicly traded respondent banks. The rule requires institutions to assess and mitigate money laundering risks associated with these accounts and their customers. These provisions apply to correspondent accounts established on or after February 5, 2008, and to those established before that date on or after May 5, 2008.