Usa Patriot Act Section 312

Section 312 of the usa patriot act amended the bsa to among other things impose special due diligence requirements on financial institutions including broker dealers that establish maintain administer or manage a private banking account or a correspondent account in the united states for a non united states person.

Usa patriot act section 312. Section 311 of the usa patriot act provides the secretary with a range of options that can be adapted to target specific money laundering and terrorist financing risks most effectively. This subsection requires each u s. Uniting and strengthening america by providing appropriate tools required to intercept and obstruct terrorism usa patriot act act of 2001 enrolled as agreed to or passed by both house and senate title iii international money laundering abatement and anti terrorist financing act of 2001 sec.

The financial crimes enforcement network fincen announced today 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 institution that establishes maintains administers or manages a correspondent account in the united states for a foreign financial institution to take certain aml measures for such accounts. Taken as a whole section 311 of the usa patriot act provides the secretary with a range of options that can be adapted to target specific money laundering and terrorist financing risks most effectively.

Financial institutions should use in tailoring their enhanced due diligence to assess the risks of some foreign banking relationships. Financial institutions to perform due diligence and in some cases enhanced due diligence with regard to correspondent accounts established or maintained for foreign financial institutions and private banking accounts established or maintained for non u s. Financial system from specific.

Section 312 of the act defines the term private banking account to mean an account that requires a minimum deposit of at least 1 000 000 that is established for one or more individuals and that is assigned to or administered or managed by in whole or in part an officer employee or agent of a financial institution acting as a liaison between the financial institution and the direct or beneficial owner of the account. Section 312 of the usa patriot act requires u s. Section 312 of the usa patriot act added subsection i to 31 usc 5318 of the bsa.

Section 312 of the usa patriot act requires u s. Financial institutions to perform due diligence and in some cases enhanced due diligence with regard to correspondent accounts established or maintained for foreign financial institutions and private banking accounts established or maintained for non u s.