Regulatory Alerts2002-01-24 | Advisory Updated - Issue 21AAdded · Updated
Transactions Involving Nauru (Advisory Updated - Issue 21A)
FinCEN issues this advisory to supplement its July 2000 guidance, determining that Nauru's legislative reforms are insufficient regarding its offshore banking sector. U.S. financial institutions are reminded of their statutory obligation under 31 U.S.C. 5318(j) to terminate any correspondent accounts provided to foreign shell banks, including those licensed by Nauru. Institutions must also take reasonable steps to ensure that correspondent accounts held by foreign banks are not used to indirectly provide banking services to foreign shell banks.