Section 319(a) of the USA PATRIOT Act enhances regulatory oversight of foreign financial institutions with U.S. correspondent accounts.
Option A (Correct): This section requires foreign banks to provide relevant AML records within 120 hours upon request from a U.S. regulatory agency.
Option B (Incorrect): This describes Section 311, which deals with special measures against foreign jurisdictions or financial institutions.
Option C (Incorrect): This is covered under Section 319(b), which permits asset seizures from U.S. correspondent accounts.
Option D (Incorrect): This relates to Section 312, which mandates due diligence on foreign correspondent accounts and private banking.
Best Practices for Compliance with Section 319(a):
Ensure the ability to produce AML-related records within 120 hours.
Establish clear communication channels between correspondent banks.
Monitor foreign financial institution relationships for compliance risks.
Reference:
USA PATRIOT Act Section 319(a) (Regulatory Requests for AML Records)
FinCEN Guidance on Foreign Bank Record-Keeping Requirements
FATF Recommendation 13 (Correspondent Banking AML Controls)