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Can you summarize 31 CFR Part 1020?
FINANCIAL CRIMES ENFORCEMENT NETWORK, DEPARTMENT OF THE TREASURY > RULES FOR BANKS
Short Summary
The provided legal document content pertains to the rules for banks under the Financial Crimes Enforcement Network, Department of the Treasury. It defines the terms ‘account’ and ‘customer’ for the purpose of this part. The rules require banks, savings associations, and credit unions to implement and maintain an anti-money laundering program that complies with specified regulations. The program should include internal controls, independent testing for compliance, designated individuals responsible for coordinating and monitoring compliance, personnel training, risk-based procedures for ongoing customer due diligence, and customer information about the beneficial owners of legal entity customers. The documents also provide requirements for banks lacking a Federal functional regulator, such as private banks, non-federally insured credit unions, and certain trust companies. These banks must establish and maintain a written anti-money laundering program that complies with the specified regulations and is approved by the board of directors or an equivalent governing body. The documents also outline the minimum requirements for banks to implement a Customer Identification Program (CIP) as part of their anti-money laundering compliance program. The CIP should include risk-based procedures for verifying the identity of each customer, obtaining certain identifying information, and verifying the customer’s identity using documents or non-documentary methods. Banks must maintain records of all information obtained and follow procedures for comparing customers with government lists of known or suspected terrorists. The documents also provide reporting requirements for banks, including reporting of transactions in currency and suspicious transactions. Non-compliance with these reporting requirements may result in penalties and violations of the Bank Secrecy Act and related regulations. Additionally, the documents outline recordkeeping requirements for banks regarding funds transfers and provide special information sharing procedures and special standards of diligence, prohibitions, and special measures requirements for banks to deter money laundering and terrorist activity.
Whom does it apply to?
Banks, savings associations, credit unions, private banks, non-federally insured credit unions, and certain trust companies
What does it govern?
Rules for banks under the Financial Crimes Enforcement Network, Department of the Treasury
What are exemptions?
Certain products or services without a formal banking relationship, accounts acquired through specific means, accounts opened for employee benefit plans, certain financial institutions, specific individuals, and existing account holders meeting certain criteria are exempted from the definition of 'account' and 'customer'. Exemptions to the requirements are subject to approval by the appropriate regulatory authorities.
What are the Penalties?
No specific penalties are mentioned in these documents.
Jurisdiction
U.S. Federal Government