Sec. 325. Concentration Accounts At Financial Institutions
A concentration account is a single account used for the internal purposes of a financial institution to facilitate the processing and settlement of multiple or individual customer transactions within the bank, usually on the same day. Such accounts can lead to the concealment by financial institutions transactions made by customers, however section 325 bans their use for such purposes by prohibiting financial institutions from allowing clients to direct transactions that move their funds into, out of, or through the concentration accounts of the financial institution. Financial institutions are also prohibited from informing clients about the existence of such accounts and disallows any disclosure that may give customer a way of identifying such accounts that the financial institution may use. The section also requires that financial institutions document and follow methods of identifying where the funds are for each customer in a concentration account that commingles funds belonging to one or more customers.
Read more about this topic: USA PATRIOT Act, Title III, Subtitle A
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