BSA/AML Examiner Training Series 2

31 CFR Chapter X – Financial Crimes Enforcement Network (Continued)

Code

Reestablishing correspondent account without appropriate certification Section 1010.630(d)(4) of the Treasury Department’s Bank Secrecy Act regulations prohibits a covered financial institution from reestablishing a closed correspondent account or establishing any other correspondent account with the concerned foreign financial institution until it obtains from the foreign financial institution the certification, or recertification, as appropriate. Failure to retain required foreign correspondent records for time limits prescribed Section 1010.630(e) of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to retain the original of any document provided by a foreign financial institution, and the original or a copy of any document otherwise relied upon by the covered financial institution, for purposes of this Section, for at least five years after the date that the covered financial institution no longer maintains any correspondent account for such foreign financial institution. This Section further requires that a covered financial institution must retain such records for a longer period as the Secretary of the Treasury may direct. Due diligence programs for correspondent accounts maintained for foreign financial institution Section 1020.610 of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to establish due diligence policies, procedures, and controls reasonably designed to detect and report money laundering through correspondent accounts established, maintained, administered, or managed in the U.S. for a foreign financial institution. Failure to take appropriate due diligence measures for private banking accounts Section 1020.620 of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution that maintains private banking accounts in the U.S. for non- U.S. persons to take certain due diligence measures regarding these accounts. Failure to provide foreign bank information to federal law enforcement officer Section 1010.670(c) of the Treasury Department’s Bank Secrecy Act regulations requires that upon receipt of a written request from a federal law enforcement officer for information required to be maintained by a covered financial institution under paragraph (a)(2) of Section 1010.630, the covered financial institution must provide the information to the requesting officer not later than 7 days after receipt of the request. Failure to terminate foreign correspondent account at request of secretary Section 1010.670(d) of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to terminate any correspondent relationship with a foreign financial institution not later than 10 business days after receipt of written notice from the Secretary of the Treasury or the Attorney General that the foreign financial institution has failed to comply with a summons or subpoena issued under paragraph (b) of this Section; or to initiate proceedings in a U.S. court contesting such summons or subpoena.

73,006

73,007

74,000

74,001

75,000

75,001

Revised 5/3/2023

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