![]() |
||||||
|
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.