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OCC 2002-6
Subject: Bank Secrecy Act/Anti-Money Laundering
Date: February 5, 2002
To: Chief Executive Officers and Compliance Officers of All National Banks and Federal Branches, Department and Division Heads, and All Examining Personnel

Description: Proposed Rule–Correspondent Accounts for Foreign Shell Banks; Recordkeeping and Termination of Correspondent Accounts for Foreign Banks

This bulletin transmits a proposed regulation published on December 28, 2001, by the U.S. Department of Treasury. The proposed regulation explains how financial institutions, including national banks, should comply with two anti-money-laundering provisions of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001. The proposed rule, to be located at 31 CFR 104, would codify Interim Guidance issued by the Treasury Department on November 20, 2001, with some modifications.

Comments may be submitted to the Treasury Department on or before February 11, 2002.

The proposed rule:

  • Prohibits certain financial institutions from providing correspondent accounts to foreign shell banks;
  • Requires such financial institutions to take reasonable steps to ensure that correspondent accounts provided to foreign banks are not being used to indirectly provide banking services to foreign shell banks;
  • Requires certain financial institutions to maintain records of the owners of foreign banks with correspondent accounts and their U.S. process agents; and
  • Requires the termination of correspondent accounts of foreign banks that fail to turn over their account records in response to a lawful request by the Secretary of the Treasury or the Attorney General of the U.S.

The proposed rule carries forward from the Interim Guidance, with some modification, the model certifications that financial institutions may use to assist them in meeting their obligations related to dealing with foreign shell banks and recordkeeping. Use of the model certifications will provide a financial institution with a safe harbor.

A link to the proposed regulation can be found in the U.S. Department of Treasury's Web site, [www.treas.gov/press/releases/4a.doc].

Questions about the proposed regulation may be directed to your OCC supervisory office or the Compliance Division at (202) 874-4428.

David G. Hammaker
Deputy Comptroller for Compliance

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