What action does the USA PATRIOT Act allow the US government to take regarding financial institutions (Fls) that are based outside of the US?

The correct answer is B. Subpoena documents from Fls that have no presence in the US. Section 319(b) of the USA PATRIOT Act authorizes the U.S. government to subpoena records from any foreign bank that maintains a correspondent account in the U.S., regardless of whether the foreign bank has a physical presence in the U.S. or not. The subpoena may request any…

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

Question

Options

AAllow all US regulators to place a non-US FI on the Specially Designated Nationals and Blocked
BSubpoena documents from Fls that have no presence in the US.
CRevoke the banking licenses of non-US Fls in countries outside the US.
DSanction a country when an individual FI does not comply with US law.

How the community answered

(37 responses)

A
14% (5)
B
76% (28)
C
3% (1)
D
8% (3)

Explanation

Section 319(b) of the USA PATRIOT Act authorizes the U.S. government to subpoena records from any foreign bank that maintains a correspondent account in the U.S., regardless of whether the foreign bank has a physical presence in the U.S. or not. The subpoena may request any records relating to the correspondent account or any account at the foreign bank, including records maintained outside the U.S. If the foreign bank fails to comply with the subpoena, the U.S. government may direct any U.S. financial institution to terminate its correspondent relationship with the foreign bank and impose civil penalties.

Topics

#USA PATRIOT Act#extraterritorial reach#document subpoena#non-US financial institutions

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