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Which section of the USA PATRIOT Act relates to forfeiture of funds and allows for extraterritorial reach?
Correct Answer: A
The USA PATRIOT Act includes provisions allowing the U.S. government to seize assets linked to financial crime, even when held in foreign financial institutions. Option A (Correct): Section 319(a) of the USA PATRIOT Act provides U.S. regulators with the authority to seize funds deposited in U.S. correspondent accounts of foreign banks if linked to illicit activity. Option B (Incorrect): Section 314(a) focuses on information sharing between law enforcement and financial institutions. Option C (Incorrect): Section 319(b) enables U.S. authorities to seize funds linked to foreign correspondent banking accounts, but 319(a) specifically deals with extraterritorial forfeiture. Option D (Incorrect): Section 314(b) allows financial institutions to voluntarily share AML-related information. Why This Matters: Foreign banks using U.S. correspondent accounts can be subject to U.S. jurisdiction. Helps U.S. law enforcement disrupt global money laundering networks. Encourages financial institutions to enhance correspondent banking due diligence. Reference: USA PATRIOT Act Section 319(a) (Forfeiture of Funds) FinCEN Guidelines on Correspondent Banking Risks FATF Recommendation 13 (Correspondent Banking)