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Can you summarize Assessing Compliance with BSA Regulatory Requirements > Reports of Foreign Financial Accounts (2021)?
Assessing Compliance with BSA Regulatory Requirements > Reports of Foreign Financial Accounts (2021)
Short Summary
This document outlines the regulatory requirements for banks and United States persons regarding the reporting of foreign financial accounts. It states that a United States person, including a bank, must file a Report of Foreign Bank and Financial Accounts (FBAR) if they have a financial interest in, or authority over, one or more foreign financial accounts with an aggregate value exceeding $10,000 at any time during the calendar year. The document clarifies that the federal tax treatment of an entity does not determine its FBAR filing requirement. It also highlights the importance of FBARs in identifying illicit financial activity and unreported income. The document provides instructions for FBAR reporting and mentions that certain accounts, such as correspondent or nostro accounts, are exempt from reporting. Examiners are tasked with assessing a bank’s compliance with FBAR requirements, including the adequacy of internal controls and the accuracy of filed FBARs. The document concludes by outlining examination and testing procedures to evaluate a bank’s compliance with FBAR filing requirements.
Whom does it apply to?
Banks and United States persons
What does it govern?
Reports of Foreign Financial Accounts
What are exemptions?
Correspondent or nostro accounts maintained by banks for bank-to-bank settlements are not required to be reported.
What are the Penalties?
Penalties for non-compliance are not mentioned in the document.
Jurisdiction
U.S. Federal Government