USA Patriot Act - Final Regulation Implementing Section 312 of USA Patriot Act

Patriot ActFederal Deposit Insurance Corporation (FDIC)
Financial Crimes Enforcement Network (FINCEN)Anti-Money Laundering
Identity Theft
Risk Management

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:
FinCEN released the final regulation implementing Section 312 of the USA PATRIOT Act on December 21, 2005. Upon its effective date, the final rule will replace the interim final rule imposed in 2002.

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.

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