Section 319(b) of the USA PATRIOT Act allows U.S. authorities to seize funds from correspondent accounts held by foreign banks in the U.S.
Option A (Correct): Section 319(b) grants the U.S. government authority to seize assets in U.S. correspondent bank accounts belonging to foreign financial institutions involved in illicit activities.
Option B (Incorrect): Section 314(b) facilitates voluntary information sharing among financial institutions but does not authorize asset seizure.
Option C (Incorrect): Section 314(a) relates to law enforcement requests for financial intelligence, not asset seizures.
Option D (Incorrect): Section 319(a) concerns record-keeping requirements for foreign banks but does not authorize asset seizures.
Best Practices for Foreign Banks with U.S. Correspondent Accounts:
Ensure full AML compliance to avoid regulatory scrutiny.
Avoid processing high-risk transactions that may trigger U.S. jurisdiction.
Monitor cross-border transactions to detect potential financial crime exposure.
Reference:
USA PATRIOT Act Section 319(b) (Correspondent Banking Asset Seizures)
FinCEN Guidance on Extraterritorial AML Compliance
FATF Recommendation 13 (Correspondent Banking AML Risks)