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Can you summarize Core Examination Procedures for Regulatory Requirements and Related Topics > Foreign Correspondent Account Recordkeeping, Reporting and Due Diligence?
Core Examination Procedures for Regulatory Requirements and Related Topics > Foreign Correspondent Account Recordkeeping, Reporting and Due Diligence
Short Summary
This document outlines the regulatory requirements and due diligence procedures for banks and financial institutions that maintain correspondent accounts for foreign shell banks and engage in foreign correspondent banking activities. The document covers the provisions of the USA PATRIOT Act, which aim to protect the U.S. financial system from money laundering and terrorist financing. It requires banks to establish and maintain records for foreign banks, conduct due diligence on foreign correspondent accounts, and take steps to prevent indirect banking services to foreign shell banks. The document also discusses the Comprehensive Iran Sanctions, Accountability, and Divestment Act (CISADA) reporting requirements for foreign financial institutions engaged in sanctionable activities. Failure to comply with these requirements may result in civil money penalties.
Whom does it apply to?
Banks and financial institutions that engage in foreign correspondent banking
What does it govern?
Foreign Correspondent Account Recordkeeping, Reporting, and Due Diligence
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Civil money penalties of up to $10,000 per day for failure to terminate a correspondent relationship upon notice from the Secretary of the Treasury or the U.S. Attorney General
Jurisdiction
U.S. Federal Government