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Can you summarize 31 CFR 1010.620?
Special Due Diligence for Correspondent Accounts and Private Banking Accounts > Due diligence programs for private banking accounts.
Short Summary
This legal document, found in the Code of Federal Regulations, pertains to due diligence programs for private banking accounts. It requires covered financial institutions to maintain a due diligence program that includes policies, procedures, and controls to detect and report money laundering or suspicious activity involving private banking accounts. The program must ascertain the identity of all nominal and beneficial owners of the account, determine if any person is a senior foreign political figure, ascertain the source of funds and purpose of the account, and review account activity for consistency. Enhanced scrutiny is required for accounts involving senior foreign political figures and transactions that may involve the proceeds of foreign corruption. The document also outlines procedures for situations where due diligence cannot be performed. The provisions of this document apply to private banking accounts established on or after July 5, 2006, with special rules for certain banks and brokers. Exemptions are provided for certain financial institutions. Specific penalties for non-compliance are not mentioned.
Whom does it apply to?
Covered financial institutions
What does it govern?
Due diligence programs for private banking accounts
What are exemptions?
Exempt financial institutions
What are the Penalties?
Not specified
Jurisdiction
U.S. Federal Government