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Can you summarize 31 CFR 1010.605?
Special Due Diligence for Correspondent Accounts and Private Banking Accounts > Definitions.
Short Summary
This document provides definitions for terms used in the context of special due diligence for correspondent accounts and private banking accounts. It defines the beneficial owner of an account as an individual who has control over or entitlement to the funds or assets in the account. The document also defines certification and recertification as the forms regarding correspondent accounts for foreign banks located on FinCEN’s website. It further explains the term correspondent account, which refers to an account established for a foreign financial institution or a foreign bank to receive deposits, make payments, or handle other financial transactions. The document also defines covered financial institutions as banks, brokers or dealers in securities, futures commission merchants, introducing brokers, and mutual funds. Additionally, it defines foreign financial institutions as foreign banks, branches or offices of covered financial institutions located outside the United States, and other persons engaged in the business of a dealer in foreign exchange or a money transmitter. The document also provides definitions for terms such as foreign shell bank, non-United States person, offshore banking license, owner, regulated affiliate, senior foreign political figure, and physical presence. Overall, this document establishes the definitions necessary for understanding the regulations and requirements related to special due diligence for correspondent accounts and private banking accounts.
Whom does it apply to?
Covered financial institutions, foreign financial institutions, and individuals who have control over or entitlement to funds or assets in an account
What does it govern?
Special Due Diligence for Correspondent Accounts and Private Banking Accounts
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Penalties for non-compliance are not specified in the document.
Jurisdiction
U.S. Federal Government