CAMS · Question #267
Which information must a United States financial institution retain for having foreign correspondent accounts as part of the USA PATRIOT Act record keeping requirements?
The correct answer is A. Records identifying the owners of each foreign bank. According to Section 319(b) of the USA PATRIOT Act, U.S. financial institutions that provide correspondent accounts to foreign banks must maintain records of the owners of the foreign banks and the name and address of a U.S. resident authorized to accept service of legal process
Question
Which information must a United States financial institution retain for having foreign correspondent accounts as part of the USA PATRIOT Act record keeping requirements?
Options
- ARecords identifying the owners of each foreign bank
- BSection 314(b) information sharing results related to foreign correspondent accounts
- CPurchase of monetary instruments of $3,000 or more involving foreign correspondent accounts
- DA suspicious activity report filed and the supporting documentation involving foreign
How the community answered
(22 responses)- A73% (16)
- B14% (3)
- C9% (2)
- D5% (1)
Explanation
According to Section 319(b) of the USA PATRIOT Act, U.S. financial institutions that provide correspondent accounts to foreign banks must maintain records of the owners of the foreign banks and the name and address of a U.S. resident authorized to accept service of legal process for records regarding the correspondent accounts. This requirement is intended to prevent foreign shell banks from accessing the U.S. financial system and to facilitate the investigation and prosecution of money laundering and terrorist financing activities involving foreign banks.
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