FinCEN: Shell Banks, Foreign Agencies

The Financial Crimes Enforcement Network (FinCEN) is seeking comments on existing Bank Secrecy Act (BSA) regulations regarding foreign correspondent accounts,

The regulation prohibits covered financial institutions from maintaining correspondent accounts in the United States for or on behalf of foreign shell banks. Institutions must also take reasonable steps to ensure that any foreign bank account is not used to provide indirect banking services to a foreign shell bank. [FR Link]

In a second, related notice, FinCEN also proposes renewal of the OMB control number for 31 CFR 1010.360, concerning reports of transactions with designated Foreign Financial Agencies (FFAs). This regulation implements the Secretary of the Treasury’s authority under 31 U.S.C. 5314 to require reporting of transactions with FFAs in support of anti-money laundering and counter-financing of terrorism (AML/CFT) efforts.  [FR Link]