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FinCEN has issued a SAR Activity Review report for financial institutions to use. Click to read the SAR Activity Review: Trends, Tips and Issues Update.
Summary: The Financial Crimes Enforcement Network (FinCEN) has issued the attached final rule extending, in part, the applicability dates for implementing the international correspondent banking provisions and the private banking provisions of Section 312 of the USA PATRIOT Act. Highlights: On January 4, 2006, FinCEN issued a final regulation implementing Section 312 of the USA PATRIOT Act. The final rule took effect on February 3, 2006, and superseded the interim final rule issued on July 23, 2002. The final rule requires U.S. financial institutions to apply due diligence to correspondent accounts maintained for certain foreign financial institutions and private banking accounts maintained for foreign individuals. Regarding correspondent banking, generally, the rule establishes the scope of U.S. financial institutions to which the rule applies and outlines general due diligence requirements to mitigate exposure to potential money-laundering activities.
The Department of the Treasury has designated Commercial Bank of Syria, including its subsidiary, Syrian Lebanese Commercial Bank, as a financial institution of primary money laundering concern and has issued the attached final rule restricting domestic financial institutions' banking relationships with this entity. Highlights: - On March 15, 2006, the Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) issued a final rule announcing the designation of Commercial Bank of Syria, including its subsidiary, Syrian Lebanese Commercial Bank, to be a financial institution of "primary money laundering concern" under Section 311 of the USA PATRIOT Act. For purposes of this document, references to Commercial Bank of Syria include Syrian Lebanese Commercial Bank, and any other branch, office or subsidiary of Commercial Bank of Syria.
The Federal Reserve Board on Wednesday announced its approval of a final rule to amend Regulation K to require Edge and Agreement corporations and U.S. branches, agencies, and other offices of foreign banks supervised by the Board to establish and maintain procedures reasonably designed to ensure and monitor compliance with the Bank Secrecy Act and related regulations. The Board will publish its final rule in the Federal Register shortly, and the rule will become effective 30 days after publication. The Bank Secrecy Act generally requires a financial institution doing business in the United States to keep records and make reports that have a high degree of usefulness in criminal, tax, or regulatory proceedings. Domestic financial institutions, such as state member banks subject to the Board's Regulation H, already have been required to establish and maintain programs to ensure and monitor compliance with the Bank Secrecy Act. The Board's final rule amends Regulation K to require Edge and Agreement corporations and U.S. branches, agencies, and other offices of foreign banks to implement and maintain similar compliance programs.
"The President's signature today on the renewal of the U.S.A. Patriot Act enables us to continue to fight the war on terror with the tools necessary to do the job. "At the Treasury Department, the Patriot Act has significantly advanced the financial war on terror. While hatred fuels the terrorist agenda, it is money that makes it possible for them to carry out their ruthless acts. "The Patriot Act has greatly advanced the ability of the Treasury, working with businesses and the people of this great nation, to restrict the flow of terrorist blood money. Its renewal is good news for Americans, bad news for those who seek to harm us."
The Financial Crimes Enforcement Network (FinCEN) has announced the final regulation implementing the international correspondent banking provisions and the private banking provisions of Section 312 of the USA PATRIOT Act. Concurrently, FinCEN has released a further notice of proposed rulemaking on one key issue regarding correspondent banking. To view the final and proposed rules, along with a press release and fact sheet from FinCEN, visit FinCEN's Web site at http://www.fincen.gov/section312.pdf.
Highlights: The final regulation takes effect within 90 days from the date the regulation is published in the Federal Register (anticipated by January 4, 2006) for new accounts opened by U.S. financial institutions and 270 days from that date for existing accounts.
The final rule requires certain U.S. financial institutions to apply due diligence to correspondent accounts maintained for certain foreign financial institutions and private banking accounts maintained for foreign individuals.
The Patriot Act, and How It Applies to the Banking Industry: The U.S. Department of the Treasury issued a final rule on September 26, 2002, to implement Section 314 of the USA PATRIOT Act that adds sections 103.100 and 103.110 to the Bank Secrecy Act regulations. These sections establish procedures that encourage information sharing between governmental authorities and financial institutions, and among financial institutions themselves. The new section 103.100 establishes a mechanism for law enforcement to communicate names of suspected terrorists and money launderers to financial institutions in return for securing the ability to promptly locate accounts and transactions involving those suspects. Financial institutions receiving names of suspects must search their account and transaction records for potential matches and report positive results to Treasury's Financial Crimes Enforcement Network (FinCEN) in the manner and time frame specified in the request. Each financial institution must designate a point of contact to receive information requests. FinCEN has prescribed that each financial institution supply point of contact information to its primary federal regulator. If you have not already done so, send by e-mail to FDICAdvisory@fdic.gov or by mail to FDIC, Special Activities Section, 550 17th Street NW, Washington, DC 20429, the following information: name of institution, name of point of contact, title, mailing address, e-mail address, telephone number, and fax number. Changes in contact information must be promptly reported.
Guidance on Developing an Effective Pre-Employment Background Screening
Section 314(a) of the USA PATRIOT Act of 2001 (P.L. 107-56)1 , required the Secretary of the Treasury to adopt regulations to encourage regulatory authorities and law enforcement authorities to share with financial institutions information regarding individuals, entities, and organizations engaged in or reasonably suspected, based on credible evidence, of engaging in terrorist acts or money laundering activities. FinCEN issued a proposed rule on March 5, 2002, and the final rule on September 26, 2002(67 Fed. Reg. 60,579). Section 314(a) requirements are now published in 31 CFR Part 103.100.
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