OCC 2002-6
OCC Bulletin
Subject: Bank Secrecy Act/Anti-Money Laundering
Description: Proposed Rule--Correspondent Accounts for 
             Foreign Shell Banks; Recordkeeping and 
             Termination of Correspondent Accounts for 
             Foreign Banks
Date: February 5, 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 proposed regulation published 
on December 28, 2001, by the U.S. Department of Treasury.  
The proposed regulation explains how financial 
institutions, including national banks, should comply 
with two anti-money-laundering provisions of the Uniting 
and Strengthening America by Providing Appropriate Tools 
Required to Intercept and Obstruct Terrorism (USA PATRIOT) 
Act of 2001.  The proposed rule, to be located at 31 CFR 
104, would codify Interim Guidance issued by the Treasury 
Department on November 20, 2001, with some modifications.

Comments may be submitted to the Treasury Department on 
or before February 11, 2002.

The proposed rule:

· Prohibits certain financial institutions from providing 
  correspondent accounts to foreign shell banks;

· Requires such financial institutions to take reasonable 
  steps to ensure that correspondent accounts provided to 
  foreign banks are not being used to indirectly provide 
  banking services to foreign shell banks;

· Requires certain financial institutions to maintain 
  records of the owners of foreign banks with correspondent 
  accounts and their U.S. process agents; and

· Requires the termination of correspondent accounts of 
  foreign banks that fail to turn over their account 
  records in response to a lawful request by the Secretary 
  of the Treasury or the Attorney General of the U.S.

The proposed rule carries forward from the Interim 
Guidance, with some modification, the model certifications 
that financial institutions may use to assist them in 
meeting their obligations related to dealing with foreign 
shell banks and recordkeeping.  Use of the model 
certifications will provide a financial institution with 
a safe harbor.

A link to the proposed regulation can be found in the U.S. 
Department of Treasury's Web site, 
[www.treas.gov/press/releases/4a.doc].

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 - 66 FR 67459