Money Laundering, Terrorism & Financial Institutions
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USA PATRIOT ACT MONITOR NEWS RELEASES

30 May 2003 USA PATRIOT Act Monitor News Release: Fed to revise Regulation K
The Federal Reserve Board is proposing to amend Regulation K to require Edge and Agreement corporations, and U.S. branches, agencies, and other offices of foreign banks supervised by the Board, to establish and maintain programs "reasonably designed to assure and monitor compliance" with the Bank Secrecy Act. 68 FR 32434 (5/30/2003). The preamble states: "The proposed regulation will clarify the existing obligations of branches, agencies, and representative offices of foreign banks and Edge and Agreement corporations under the Board's rules, section 5318(h) and Treasury's interim final rule [31 CFR 103.120] under section 352 of the USA PATRIOT Act." The text of the proposed rules is as follows:

§ 211.5 Edge and agreement corporations

(m) Procedures for monitoring Bank Secrecy Act compliance.
(1) Establishment of Compliance Program. Each Edge corporation and each Agreement corporation shall, in accordance with the provisions of § 208.63 of the Board's Regulation H, 12 CFR 208.63, develop and provide for the continued administration of a program reasonably designed to assure and monitor compliance with the provisions of subchapter II of chapter 53 of title 31, United States Code, the Bank Secrecy Act, and the implementing regulations promulgated thereunder by the Department of the Treasury at 31 CFR part 103. The compliance program shall be reduced to writing, approved by the board of directors, and noted in the minutes.

§ 211.24 Approval of officers of foreign banks; procedures for applications; standards for approval; representative office activities and standards for approval; preservation of existing authority; reports of crimes and suspected crimes; government securities sales practices.

(j) Procedures for monitoring Bank Secrecy Act compliance.
(1) Establishment of Compliance Program. Except for a federal branch or a federal agency or a state branch that is insured by the FDIC, a branch, agency, or representative office of a foreign bank operating in the United States shall, in accordance with the provisions of § 208.63 of the Board's Regulation H, 12 CFR 208.63, develop and provide for the continued administration of a program reasonably designed to assure and monitor compliance with the provisions of subchapter II of chapter 53 of title 31, United States Code, the Bank Secrecy Act, and the implementing regulations promulgated thereunder by the Department of the Treasury at 31 CFR part 103. The compliance program shall be reduced to writing, approved by the board of directors, and noted in the minutes.

 


 

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