TO: |
Chief Executive Officers, BSA
Officers, and Compliance Officers of All National Banks, Federal Branches and Agencies, Technology Service Providers, Department and Division Heads, and All Examining Personnel.
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The attached documents, issued on August 8, 2007, by the Financial Crimes Enforcement Network (FinCEN), announce the final rule implementing a significant provision of Section 312 of the USA PATRIOT Act.
Section 312 of the USA PATRIOT Act requires
U.S. financial institutions to perform due diligence and, in some
cases, enhanced due diligence, with regard to correspondent accounts
established or maintained for foreign financial institutions and
private banking accounts established or maintained for non-U.S.
persons. This final rule applies to the accounts of three specific categories of foreign banks, including those with an offshore banking license and certain high-risk banks subject to well-recognized international or U.S. Treasury Department determinations.
The final rule states that U.S. financial
institutions must identify, for due diligence purposes, the owners
of these foreign banks if their shares are not publicly traded and
also ascertain whether such foreign banks provide correspondent
accounts to other foreign banks and, therefore, provide them with
access to the U.S. financial system. In making their risk
assessments, financial institutions should consider, among other
factors, the nature of the foreign banks’ business, reasonably
available information on the foreign banks’ anti-money laundering
record, and information on the nature of the foreign supervisory
regulations under which the bank is operating.
The final rule is effective September 10, 2007. The enhanced due
diligence requirements will apply as of February 5, 2008, to each
correspondent account for certain foreign banks for accounts
established on or after that date. For such correspondent accounts
established before February 5, 2008, the enhanced due diligence
requirements apply as of May 5, 2008.
For further information, please contact your examiner-in-charge, OCC supervisory office, or the OCC Compliance Policy Department at (202) 874-4428.
/signed/
Ann F. Jaedicke
Deputy Comptroller for Compliance Policy
Attachment: FinCEN news
release
[http://www.occ.treas.gov/ftp/bulletin/2007-33a.pdf]
Final
Rule
[http://www.occ.treas.gov/ftp/bulletin/2007-33b.pdf]
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