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Can you summarize 31 CFR 1010.630?
Special Due Diligence for Correspondent Accounts and Private Banking Accounts > Prohibition on correspondent accounts for foreign shell banks; records concerning owners of foreign banks and agents for service of legal process.
Short Summary
This legal document, part of the Code of Federal Regulations, pertains to covered financial institutions. It prohibits covered financial institutions from establishing, maintaining, administering, or managing correspondent accounts in the United States for foreign shell banks. They are also required to take reasonable steps to ensure that correspondent accounts established for foreign banks are not indirectly used by those banks to provide banking services to foreign shell banks. Covered financial institutions must maintain records in the United States identifying the owners of each foreign bank whose shares are not publicly traded, as well as the name and address of a person authorized to accept service of legal process for each account. However, this requirement does not apply to foreign banks that have filed a Form FR Y7 with the Federal Reserve Board. The document also outlines provisions for safe harbor, interim verification, closure of correspondent accounts, and recordkeeping requirements. No specific penalties are mentioned in this document.
Whom does it apply to?
Covered financial institutions
What does it govern?
Prohibition on correspondent accounts for foreign shell banks; records concerning owners of foreign banks and agents for service of legal process.
What are exemptions?
Covered financial institutions are not prohibited from providing correspondent accounts or banking services to regulated affiliates.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
U.S. Federal Government