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CAMS · Question #896

Section 319(a) of the USA PATRIOT Act:

The correct answer is C. Permits the U.S. Government to seize funds from a correspondent bank account in the U.S. that. This question tests precise knowledge of specific USA PATRIOT Act provisions. Section 319(a) grants the U.S. government a unique extraterritorial forfeiture mechanism targeting correspondent banking relationships.

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

Question

Section 319(a) of the USA PATRIOT Act:

Options

  • AAllows the appropriate federal banking agency to require a financial organization to produce,
  • BProvides the U.S. Department of Treasury with the authority to apply graduated, proportionate
  • CPermits the U.S. Government to seize funds from a correspondent bank account in the U.S. that
  • DRequires due diligence, and in certain situations enhanced due diligence (EDD), for foreign

How the community answered

(29 responses)
  • A
    7% (2)
  • B
    3% (1)
  • C
    83% (24)
  • D
    7% (2)

Why each option

This question tests precise knowledge of specific USA PATRIOT Act provisions. Section 319(a) grants the U.S. government a unique extraterritorial forfeiture mechanism targeting correspondent banking relationships.

AAllows the appropriate federal banking agency to require a financial organization to produce,

The authority to compel a financial institution to produce records relates to 31 U.S.C. 5318(k), which governs record production from foreign bank correspondent accounts, not Section 319(a).

BProvides the U.S. Department of Treasury with the authority to apply graduated, proportionate

Graduated and proportionate sanctions authority for AML violations is associated with FinCEN's civil money penalty authority under the Bank Secrecy Act and is not the subject of Section 319(a).

CPermits the U.S. Government to seize funds from a correspondent bank account in the U.S. thatCorrect

Section 319(a) of the USA PATRIOT Act (codified at 18 U.S.C. 981(k)) permits U.S. authorities to seize or forfeit funds held in a U.S. correspondent bank account belonging to a foreign bank, when equivalent funds in the foreign bank's account abroad are traceable to a specified unlawful activity such as money laundering. This provision effectively extends U.S. forfeiture jurisdiction overseas by targeting the domestic correspondent account rather than the foreign account directly.

DRequires due diligence, and in certain situations enhanced due diligence (EDD), for foreign

Due diligence and enhanced due diligence (EDD) requirements for foreign correspondent and private banking accounts are established under Section 312 of the USA PATRIOT Act, not Section 319(a).

Concept tested: USA PATRIOT Act Section 319(a) correspondent account forfeiture

Source: https://www.ffiec.gov/bsa_aml_infobase/pages_manual/OLM_005.htm

Topics

#USA PATRIOT Act#Section 319#correspondent banking#asset seizure

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