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Can you summarize 3 NYCRR Part 323?
Banking Organizations > Acceptance of Deposits from Noncitizens and Non-U.S. Residents by Licensed Agencies of Foreign Banking Corporations
Short Summary
The provided legal document content pertains to the acceptance of deposits from noncitizens and non-U.S. residents by licensed agencies of foreign banking corporations. It specifies that prior to opening a deposit account under $100,000 for a depositor who is not a citizen or resident of the United States, the licensed agency must notify the depositor in writing that their deposits are not insured by the FDIC. The term ‘resident of the United States’ is defined to include individuals residing in the United States, entities organized in the United States, and branches or offices located in the United States of entities not organized in the United States. Section 202-a(1)(c) of the Banking Law allows licensed agencies of foreign banking corporations to accept deposits from individuals who are not citizens or residents of the United States, as defined by the superintendent. The purpose of this document is to define the term ‘residents of the United States’ and provide disclosures regarding the uninsured status of such deposits. Unlike large-denomination obligations, which can be issued to corporations and business entities, the deposits allowed under this document can be in amounts less than $100,000 and can be taken from natural persons as well.
Whom does it apply to?
Licensed agencies of foreign banks, depositors not citizens or residents of the United States
What does it govern?
Acceptance of Deposits from Noncitizens and Non-U.S. Residents by Licensed Agencies of Foreign Banking Corporations
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
New York