USA PATRIOT Act, Title III, Subtitle A - Sec. 327. Consideration of Anti-money Laundering Record

Sec. 327. Consideration of Anti-money Laundering Record

The Bank Holding Company Act of 1956 makes it unlawful, except with prior approval of the Board of Governors of the Federal Reserve System, for a bank to take any action that makes another company into a bank holding company or subsidiary of one; for a bank holding company to acquire direct or indirect shares of more than 5% of a bank; for bank holding companies to acquire all or most of the assets of a bank; and in most circumstances for a bank holding company to merge or consolidate with another bank holding company. Section 327 amends the Act to make the Board take into consideration the effectiveness of the company or companies in combatting money laundering activities, including in overseas branches.

The Federal Deposit Insurance Act prevents the merger of insured depository institutions with non-insured depository institutions without the written approval of a responsible agency. The Act was amended by section 327 to take into consideration the effectiveness of any insured depository institution involved in the proposed merger transaction in combatting money laundering activities, including in overseas branches, when approving such mergers.

Both of the amendments only apply to applications submitted to either the Board of Governors of the Federal Reserve System or responsible agency after December 31, 2001, and which were not approved by the Board or responsible agency before the date of enactment of the Patriot Act.