OCC 2002-29
OCC Bulletin
Subject:     Bank Secrecy Act/Anti-Money Laundering
Description: Notice of Proposed Rulemaking--Due-Diligence 
             Anti-Money Laundering Programs for Certain 
             Foreign Accounts
  
Date:        June 21, 2002

TO:  Chief Executive Officers and Compliance Officers of 
     All National Banks and Federal Branches, Department 
     and Division Heads, and All Examining Personnel

This bulletin transmits a notice of proposed rulemaking 
published by the U.S. Treasury Department and the 
Financial Crimes Enforcement Network (FinCEN) on May 30 
to implement a provision of the USA PATRIOT Act.  
Title III of the act authorized new measures to combat 
money laundering and terrorist financing.  Section 312 of 
the act furthers this goal by requiring U.S. financial 
institutions to establish due-diligence policies, 
procedures, and controls reasonably designed to detect and 
report money laundering through correspondent accounts and 
private banking accounts of non-U.S. persons.  Private 
banking accounts involve accounts of $1 million or more 
for individuals that are administered by an officer, 
employee, or agent of a financial institution acting as a 
liaison between the financial institution and the direct 
or beneficial owner of the account.

Comments may be submitted to FinCEN on or before July 1.  
The statute takes effect on July 23 and applies to all 
correspondent accounts maintained for foreign financial 
institutions and all private banking accounts of non-U.S. 
persons, subject to the requirement, regardless of when 
they were opened.

The proposed rule requires financial institutions to:

· Maintain a due-diligence program that includes policies, 
  procedures, and controls that are reasonably designed 
  to enable financial institutions to detect and report 
  any known or suspected money laundering conducted 
  through correspondent accounts of foreign financial 
  institutions;

· Take additional due-diligence measures for correspondent 
  accounts maintained for a foreign bank operating under 
  an offshore license or a license granted by a 
  jurisdiction designated as "being of concern" for money 
  laundering.  Such measures include identifying the 
  owners, conducting enhanced scrutiny of such accounts, 
  and ascertaining whether the foreign bank provides 
  correspondent accounts to other foreign banks, and if 
  so, conducting appropriate related due diligence;

· Maintain a due-diligence program that includes policies, 
  procedures, and controls that are reasonably designed 
  to enable financial institutions to detect and report 
  any known or suspected money laundering conducted 
  through private banking accounts of non-U.S. persons.  
  This would include identifying the nominal and 
  beneficial owners of, and the source of funds deposited 
  into, such private banking accounts; and

· Conduct enhanced scrutiny of private banking accounts 
  of senior foreign political figures (current and 
  former), ensuring that the methods are reasonably 
  designed to detect and report transactions that may 
  involve the proceeds of foreign corruption.

A link to the proposed regulation can be found on the 
FinCEN Web site, 
[ http://www.treas.gov/fincen/federalregister05302002.pdf ].

Questions about the proposed regulation may be directed 
to your OCC supervisory office or the Compliance Division 
at (202) 874-4428.



___________________________________
David G. Hammaker
Deputy Comptroller for Compliance



Attachment--67-FR-37736
[ http://www.occ.treas.gov/ftp/bulletin/2002-29a.pdf ]