A foreign bank operating under an offshore license wants to open a correspondent account with a United States (U.S.) bank. The foreign bank plans to provide payable through account services to some…

Question

Options

• AA list of politically exposed persons who are owners of the correspondent bank
• BA list of account holders at the financial institution who will use the payable through account
• CThe person in the United States who can receive service of legal process for the correspondent
• DA list of anti-money laundering training records for the financial institution employees monitoring

• A
  5% (1)
• B
  11% (2)
• C
  79% (15)
• D
  5% (1)

Explanation

Under the USA PATRIOT Act, a U.S. bank that maintains a correspondent account for a foreign bank operating under an offshore license must obtain from the foreign bank the name and address of a person residing in the United States who is authorized to accept service of legal process for records related to the correspondent account. This requirement is intended to facilitate the U.S. authorities' access to information and records regarding the correspondent account and its underlying transactions, especially in cases where the foreign bank is located in a jurisdiction that does not cooperate with U.S. law enforcement or regulatory requests.

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