The vice president of the foreign correspondent banking department at a large United States bank has been notified that a foreign bank with an offshore license wants to open a correspondent account…

Question

Options

• AA list of all the customers of the correspondent bank
• BA list of the types of businesses served by the correspondent bank
• CInformation relating to the foreign bank's anti-money laundering program
• DThe identity of 10% owners of the correspondent bank, unless it is publicly traded

• A
  14% (5)
• B
  6% (2)
• C
  81% (29)

Explanation

According to section 312 of the USA PATRIOT Act, U.S. financial institutions that maintain correspondent accounts for foreign financial institutions must apply due diligence to such accounts. The due diligence must include obtaining information relating to the foreign bank's anti- money laundering program, as well as the identity of any person who owns 10% or more of the foreign bank, unless the foreign bank is publicly traded. These requirements are intended to prevent the use of correspondent accounts by foreign shell banks or other entities that may pose a high risk of money laundering or terrorist financing.

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