What does designing a country as being of "prime money laundering concern" allow the U.S. government to do?

Question

Options

• AObtain transactional information from U.S.-owned subsidiary banks located outside the U.S.
• BClose some or all correspondent or payable-through accounts
• CEnsure the inclusion of that country onto FATF's Non-Cooperative Country and Territory list
• DEnsure the inclusion of that country into the office of Foreign Asset Control country sanctions

• B
  82% (14)
• C
  6% (1)
• D
  12% (2)

Explanation

Designating a country as being of "prime money laundering concern" allows the U.S. government to impose one or more of five special measures under Section 311 of the USA PATRIOT Act. These special measures are intended to protect the U.S. financial system from the risks posed by the designated country, such as money laundering, terrorist financing, or other illicit activities. The fifth special measure, which is the most severe, authorizes the Treasury Department to prohibit U.S. financial institutions from opening or maintaining correspondent or payable-through accounts for foreign financial institutions that involve the designated country. Correspondent accounts are accounts that enable foreign banks to access the U.S. financial system and provide services to their customers, while payable-through accounts are accounts that allow foreign banks to offer their customers direct access to the U.S. financial system. Closing these accounts effectively cuts off the designated country from the U.S. financial system and imposes significant costs and burdens on its financial sector.

No community discussion yet for this question.