OCC 2002-37
OCC BULLETIN	

Subject:      Bank Secrecy Act/Anti-Money Laundering
Description:  Interim Final Rule - Special Due- Diligence
              Programs for Certain Foreign Accounts

Date:         August 16, 2002

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

This bulletin transmits an interim final rule published 
by the U.S. Treasury Department (Treasury) and the 
Financial Crimes Enforcement Network (FinCEN) on July 23.  
The attached interim final rule provides guidance for 
banks to comply with section 312 of the USA PATRIOT Act.  
The rule also temporarily defers the application of 
section 312 for certain financial institutions, other 
than banks, pending issuance by Treasury and FinCEN of 
the final rule.  The interim final rule and section 312 
became effective July 23, and Treasury anticipates issuing 
a final rule no later than October 25.  

Section 312 requires U.S. financial institutions to 
establish due-diligence policies, procedures, and controls 
reasonably designed to detect and report money laundering
through correspondent accounts of foreign banks and 
private banking accounts of non-U.S. citizens. 

Comments on the interim final rule may be submitted to 
FinCEN on or before August 22.   

The interim final rule provides the following guidance:

· A foreign correspondent banking due-diligence program 
  will be reasonable if it focuses compliance efforts on 
  the correspondent accounts that pose a high risk of 
  money laundering based on an overall assessment of the 
  money-laundering risks posed by the foreign 
  correspondent institution.  Priority should be placed 
  on correspondent deposit accounts, correspondent 
  accounts used to provide services to third parties, 
  nonbank correspondent accounts, and accounts opened on 
  or after July 23.  Also, a reasonable due-diligence 
  policy is one that comports with existing best practice 
  standards (e.g., those issued by the New York Clearing 
  House in March and the Bank for International 
  Settlements in October 2001).  

· An enhanced due-diligence program for certain foreign 
  banks designated as high risk will be reasonable if it 
  comports with existing best practice standards for banks 
  that maintain correspondent accounts for foreign banks.  
  Also, it must focus enhanced due-diligence measures on 
  those correspondent accounts identified as high risk in 
  section 312.  Priority should be placed on accounts 
  opened on or after July 23.  

· A private banking due-diligence program will be 
  reasonable if the program is focused on those private 
  banking accounts that present a high risk of money 
  laundering.  Also, it will be reasonable if it is 
  consistent with applicable government guidance, so long 
  as it incorporates the minimum standards for private 
  banking accounts outlined in section 312.  Priority 
  should be placed on accounts opened on or after July 23.

You can find a link to the interim final rule on the 
FinCEN Web site, www.ustreas.gov/fincen/.

Questions about the interim final rule 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 48348
[ http://www.occ.treas.gov/fr/fedregister/67fr48348.pdf ]