- On August 2, 2007, FinCEN issued the attached final rule implementing a key provision of Section 312 of the USA PATRIOT Act regarding special due diligence programs for certain foreign accounts. The final rule took effect on September 10, 2007, and completes the implementation of Section 312 of the USA PATRIOT Act.
- The final rule applies to any correspondent account maintained for a foreign bank that operates under an offshore banking license, a banking license issued by a country designated as non-cooperative with international anti-money laundering principles, or a banking license issued by a country designated by the Secretary of the Treasury as warranting special measures.
- The rule states that U.S. financial institutions must conduct enhanced scrutiny of such correspondent accounts to guard against money laundering and report suspicious transaction, determine whether the foreign bank in turn allows other foreign banks usage of the account, and identify the owner and ownership interest for foreign banks whose shares are not publicly traded.
- Enhanced due diligence (EDD) provisions will apply to correspondent accounts for certain foreign banks established on or after February 5, 2008. On May 5, 2008, the EDD provision requirements will apply to all applicable correspondent accounts, including those established prior to February 2008.
FDIC-Supervised Banks (Commercial and Savings)
Chief Executive Officer
BSA Compliance Office
Bank Secrecy Act/Anti-Money Laundering Programs
August 9, 2007, Federal Register notice Special Due Diligence Programs for Certain Foreign Accounts - PDF (PDF Help)
Anti-Money Laundering Specialist Marie C. Edwards
at SASFIL@FDIC.gov or (202) 898-3673
FIL-113-2007 - PDF(PDF Help)
FDIC Financial Institution Letters (FILs) may be
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3501 N. Fairfax Drive, Room E 1002, Arlington, VA
22226 (1-877-275-3342 or 703-562-2200).