FinCEN - Final Rule and Proposed Rule for Special Due Diligence Programs for Certain Foreign Accounts

Bank Secrecy Act (BSA)Financial Crimes Enforcement Network (FINCEN)
Office of the Comptroller of the Currency (OCC)Anti-Money Laundering

The Financial Crimes Enforcement Network (FinCEN) published the attached final rule and proposed rule in the Federal Register on January 4, 2006. The final rule implements the international correspondent banking provisions and the private banking provisions of section 312 of the USA PATRIOT Act. Simultaneously, FinCEN announced a related notice of proposed rulemaking involving one key provision of section 312 that requires enhanced due diligence for correspondent accounts maintained for certain foreign banks.

Section 312 of the USA PATRIOT Act requires U.S. financial institutions to perform due diligence and, in some cases, enhanced due diligence, with regard to correspondent accounts established or maintained for foreign financial institutions and private banking accounts established or maintained for non-U.S. persons. The final rule implements the general due diligence requirements pertaining to foreign financial institutions as well as the due diligence and enhanced scrutiny requirements pertaining to private banking accounts. Specifically included in the requirements is the duty to conduct enhanced scrutiny of any private banking account that is maintained for senior foreign political figures, their immediate family members, or persons widely and publicly known to be close associates of such individuals.

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