FinCEN Issues Final Rule for Section 312 of the USA Patriot Act

GuidanceFinancial Crimes Enforcement Network (FINCEN)Anti-Money Laundering

Enhanced Due Diligence for Correspondent Accounts Maintained by Certain Foreign Banks

The Financial Crimes Enforcement Network (FinCEN) announced the issuance of a final rule implementing a key provision of Section 312 of the USA PATRIOT Act, clarifying the risk-based procedures that U.S. financial institutions should use in tailoring their enhanced due diligence to assess the risks of some foreign banking relationships.

“As international anti-money laundering standards improve globally, risk assessments for foreign banks should become easier to conduct. Common standards are increasingly protecting both sides of the international relationship,” said FinCEN Director James H. Freis, Jr. “U.S. banks can take comfort in the fidelity of their foreign customers and foreign banks will find it easier to process their U.S. transactions.”

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