U.S. Treasury?s Issues Proposed Rules on Correspondent Accounts for Foreign Shell Banks, SARs for Money Transmitters, and Reporting by Non-financial Trades and Businesses of Certain Currency Transactions

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Friday, February 1, 2002
Author: 
Bruce Zagaris
Volume: 
18
Issue: 
2
45
Abstract: 
On December 28, 2001, the U.S. Department of Treasury published in the Federal Register notice of proposed rules for ?Counter Money Laundering Requirements-Correspondent Accounts for Foreign Shell Banks; Record keeping and Termination of Correspondent Accounts for Foreign Shell Banks. The proposed rule advises that a covered financial institution providing a correspondent account to a foreign bank must maintain records of the foreign bank?s owners and agent in the U.S. designated to accept services foreign must maintain records of the foreign bank?s owners and agent in the U.S. designated to accept services of legal process for records regarding the correspondent account. In addition, the Secretary of the Treasury and Attorney General are authorized to issue a summons or subpoena to any foreign bank that maintains a correspondent account in the U.S. and to request records relating to such account, including records maintained outside the U.S. relating to the deposit of funds into the foreign bank. If a foreign bank fails to comply with or contest the summons or subpoena, any covered financial institution with which the foreign bank maintains a correspondent account must terminate the account upon notice from the Secretary of the Attorney General.