Which of the following is considered a shell bank as defined by the USA PATRIOT Act?

The correct answer is A. A bank incorporated in an offshore jurisdiction without a physical presence or employees. According to the USA PATRIOT Act, a shell bank is defined as "a bank that has no physical presence in any country" (Section 313(a)(1)). A physical presence means "a place of business that is maintained by a bank and is located at a fixed address, other than solely a post office…

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

Question

Options

AA bank incorporated in an offshore jurisdiction without a physical presence or employees.
BAn Internet bank operating in the U.S. providing services worldwide.
CA local bank with offices in a non-cooperative jurisdiction which is subject to minimal regulatory
DA bank run by a foreign holding company with offices and staff in an offshore jurisdic-tion.

How the community answered

(32 responses)

A
75% (24)
B
3% (1)
C
9% (3)
D
13% (4)

Explanation

According to the USA PATRIOT Act, a shell bank is defined as "a bank that has no physical presence in any country" (Section 313(a)(1)). A physical presence means "a place of business that is maintained by a bank and is located at a fixed address, other than solely a post office box or an electronic address, in a country in which the bank is authorized to conduct banking activities, at which location the bank employs one or more individuals on a full-time basis and maintains operating records related to its banking activities" (Section 313(a)(2)).

Topics

#shell bank#USA PATRIOT Act#physical presence#offshore jurisdiction

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