Sec. 312. Special Due Diligence For Correspondent Accounts and Private Banking Accounts
Extra due diligence requirements were added to 31 U.S.C. ยง 5318. Each financial institution that has a correspondent back account held and managed on behalf of a non-U.S. person must enable (or in some cases enhance) their due diligence policies, procedures and controls to detect and report instances of money laundering. The due diligence requirements focus on identifying the direct and indirect (beneficial) owners of the accounts.
Financial institutions must now undertake steps to identify the owners of any non-U.S. bank that is not publicly listed, along with the interests of each of the owners in the bank. It is expected that additional scrutiny will be applied by the U.S. institution to such banks to make sure they are not engaging in money laundering. Reasonable efforts must be undertaken to determine whether the non-U.S. bank provide correspondent back accounts to other foreign banks, and if it is discovered they do the U.S. financial institution is expected to try to identify the foreign banks the non-U.S. bank deals with.
Similarly, U.S. financial institutions must also identify the nominal and beneficial owners of any private bank account opened and maintained in the U.S. by non-U.S. citizens. The institution must undertake enhanced scrutiny of the account if it is owned by, or is being maintained on behalf of, any senior political figure where there is reasonable suspicion of corruption. A "private bank account" is defined as any account that has over $US1 million deposited by one or more people who have a direct or beneficial ownership of the account. Further, the account must be administered in whole or in part by an employee, officer or agent of a financial institution, and who acts as a liaison between the institution and the owners of the account.
Read more about this topic: USA PATRIOT Act, Title III, Subtitle A
Famous quotes containing the words diligence, private, accounts, due, special and/or banking:
“What makes this Generation of Vermin so very Prolifick, is the indefatigable Diligence with which they apply themselves to their Business. A Man does not undergo more watchings and fatigues in a Campaign, than in the Course of a vicious Amour. As it is said of some Men, that they make their Business their Pleasure, these Sons of Darkness may be said to make their Pleasure their Business. They might conquer their corrupt Inclinations with half the Pains they are at in gratifying them.”
—Joseph Addison (1672–1719)
“Today, the degradation of the inner life is symbolized by the fact that the only place sacred from interruption is the private toilet.”
—Lewis Mumford (1895–1990)
“We must love one another, yes, yes, that’s all true enough, but nothing says we have to like each other. It may be the very recognition of all men as our brothers that accounts for the sibling rivalry, and even enmity, we have toward so many of them.”
—Peter De Vries (b. 1910)
“Rationalists are admirable beings, rationalism is a hideous monster when it claims for itself omnipotence. Attribution of omnipotence to reason is as bad a piece of idolatry as is worship of stock and stone believing it to be God. I plead not for the suppression of reason, but for a due recognition of that in us which sanctifies reason.”
—Mohandas K. Gandhi (1869–1948)
“The rebellion is against time pollution, the feeling that the essence of what makes life worth living—the small moments, the special family getaways, the cookies in the oven, the weekend drives, the long dreamlike summers Mso much of this has been taken from us, or we have given it up. For what? Hitachi stereos? Club Med? Company cars? Racquetball? For fifteen-hour days and lousy day care?”
—Richard Louv (20th century)
“One of the reforms to be carried out during the incoming administration is a change in our monetary and banking laws, so as to secure greater elasticity in the forms of currency available for trade and to prevent the limitations of law from operating to increase the embarrassment of a financial panic.”
—William Howard Taft (1857–1930)