A non-U.S. bank wants to open an account at Bank A, which is a U.S.-based bank. Which information must Bank A obtain under the USA PATRIOT Act?

The correct answer is B. The identity of owners and percentage of ownership of the non-U.S. bank. Section 313 of the USA PATRIOT Act prohibits U.S. financial institutions from establishing, maintaining, administrating or managing correspondent accounts for foreign shell banks. A foreign shell bank is a foreign bank that does not have a physical presence in any country. To…

Compliance Standards (International AML/CFT Standards and the role of FATF)

Question

Options

AA complete client list from the non-U.S. bank
BThe identity of owners and percentage of ownership of the non-U.S. bank
CThe structure and identity of the management team at the non-U.S. bank
DThe details of the non-U.S. bank's anti-money laundering compliance training program

How the community answered

(30 responses)

A
17% (5)
B
73% (22)
C
3% (1)
D
7% (2)

Explanation

Section 313 of the USA PATRIOT Act prohibits U.S. financial institutions from establishing, maintaining, administrating or managing correspondent accounts for foreign shell banks. A foreign shell bank is a foreign bank that does not have a physical presence in any country. To ensure compliance with this prohibition, U.S. financial institutions must obtain from each foreign bank that maintains a correspondent account the identity of each owner of the foreign bank and the nature and extent of each owner's ownership interest. This information must be updated within 30 days of any change.

Topics

#USA PATRIOT Act#correspondent banking#beneficial ownership#foreign banks

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