31 Cfr 1010.655

Financial Crimes Enforcement Network, Treasury
§ 1010.655 Special measures
Banco Delta Asia.

against

(a) Definitions. For purposes of this
section:
(1) Banco Delta Asia means all
branches, offices, and subsidiaries of
Banco Delta Asia operating in any jurisdiction, including its subsidiaries
Delta Asia Credit Limited and Delta
Asia Insurance Limited.
(2) Correspondent account has the
same
meaning
as
provided
in
§ 1010.605(c)(1)(ii).
(3) Covered financial institution includes:
(i) An insured bank (as defined in section 3(h) of the Federal Deposit Insurance Act (12 U.S.C. 1813(h)));
(ii) A commercial bank;
(iii) An agency or branch of a foreign
bank in the United States;
(iv) A federally insured credit union;
(v) A savings association;
(vi) A corporation acting under section 25A of the Federal Reserve Act (12
U.S.C. 611 et seq.);
(vii) A trust bank or trust company
that is federally regulated and is subject to an anti-money laundering program requirement;
(viii) A broker or dealer in securities
registered, or required to be registered,
with the U.S. Securities and Exchange
Commission under the Securities Exchange Act of 1934 (15 U.S.C. 78a et
seq.), except persons who register pursuant to section 15(b)(11) of the Securities Exchange Act of 1934;
(ix) A futures commission merchant
or an introducing broker registered, or
required to register, with the Commodity Futures Trading Commission
under the Commodity Exchange Act (7
U.S.C. 1 et seq.), except persons who
register pursuant to section 4(f)(a)(2) of
the Commodity Exchange Act; and
(x) A mutual fund, which means an
investment company (as defined in section 3(a)(1) of the Investment Company
Act of 1940 ((‘‘Investment Company
Act’’) (15 U.S.C. 80a–3(a)(1))) that is an
open-end company (as defined in section 5(a)(1) of the Investment Company
Act (15 U.S.C. 80a–5(a)(1))) and that is
registered, or is required to register
with the Securities and Exchange Commission pursuant to the Investment
Company Act.

§ 1010.655

(4) Subsidiary means a company of
which more than 50 percent of the voting stock or analogous equity interest
is owned by another company.
(b) Requirements for covered financial
institutions—(1) Prohibition on direct use
of correspondent accounts. A covered financial institution shall terminate any
correspondent account that is established, maintained, administered, or
managed in the United States for, or
on behalf of, Banco Delta Asia.
(2) Due diligence of correspondent accounts to prohibit indirect use. (i) A covered financial institution shall apply
due diligence to its correspondent accounts that is reasonably designed to
guard against their indirect use by
Banco Delta Asia. At a minimum, that
due diligence must include:
(A)
Notifying
correspondent
accountholders the correspondent account may not be used to provide
Banco Delta Asia with access to the
covered financial institution; and
(B) Taking reasonable steps to identify any indirect use of its correspondent accounts by Banco Delta
Asia, to the extent that such indirect
use can be determined from transactional records maintained in the covered financial institution’s normal
course of business.
(ii) A covered financial institution
shall take a risk-based approach when
deciding what, if any, additional due
diligence measures it should adopt to
guard against the indirect use of its
correspondent accounts by Banco Delta
Asia.
(iii) A covered financial institution
that obtains knowledge that a correspondent account is being used by
the foreign bank to provide indirect access to Banco Delta Asia shall take all
appropriate steps to prevent such indirect access, including, where necessary,
terminating the correspondent account.
(iv) A covered financial institution
required to terminate a correspondent
account
pursuant
to
paragraph
(b)(2)(iii) of this section:
(A) Should do so within a commercially reasonable time, and should not
permit the foreign bank to establish
any new positions or execute any
transaction
through
such
correspondent account, other than those

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§ 1010.670

31 CFR Ch. X (7–1–13 Edition)

necessary to close the correspondent
account; and
(B) May reestablish a correspondent
account closed pursuant to this paragraph if it determines that the correspondent account will not be used to
provide banking services indirectly to
Banco Delta Asia.
(3) Recordkeeping and reporting. (i) A
covered financial institution is required to document its compliance
with the notice requirement set forth
in paragraph (b)(2)(i)(A) of this section.
(ii) Nothing in this section shall require a covered financial institution to
report any information not otherwise
required to be reported by law or regulation.
§ 1010.670 Summons or subpoena of
foreign bank records; termination
of correspondent relationship.
(a) Definitions. The definitions in
§ 1010.605 apply to this section.
(b) Issuance to foreign banks. The Secretary or the Attorney General may
issue a summons or subpoena to any
foreign bank that maintains a correspondent account in the United
States and may request records related
to such correspondent account, including records maintained outside of the
United States relating to the deposit of
funds into the foreign bank. The summons or subpoena may be served on the
foreign bank in the United States if the
foreign bank has a representative in
the United States, or in a foreign country pursuant to any mutual legal assistance treaty, multilateral agreement, or other request for international law enforcement assistance.
(c) Issuance to covered financial institutions. Upon receipt of a written request from a Federal law enforcement
officer for information required to be
maintained by a covered financial institution under paragraph (a)(2) of
§ 1010.630, the covered financial institution shall provide the information to
the requesting officer not later than 7
days after receipt of the request.
(d) Termination upon receipt of notice.
A covered financial institution shall
terminate any correspondent relationship with a foreign bank not later than
10 business days after receipt of written notice from the Secretary or the
Attorney General (in each case, after

consultation with the other) that the
foreign bank has failed:
(1) To comply with a summons or
subpoena issued under paragraph (b) of
this section; or
(2) To initiate proceedings in a
United States court contesting such
summons or subpoena.
(e) Limitation on liability. A covered financial institution shall not be liable
to any person in any court or arbitration proceeding for terminating a correspondent relationship in accordance
with paragraph (d) of this section.
(f) Failure to terminate relationship.
Failure to terminate a correspondent
relationship in accordance with this
section shall render the covered financial institution liable for a civil penalty of up to $10,000 per day until the
correspondent relationship is so terminated.

Subpart G—Administrative Rulings
§ 1010.710

Scope.

This subpart provides that the Director, FinCEN, or his designee, either
unilaterally or upon request, may issue
administrative rulings interpreting the
application of this chapter.
§ 1010.711

Submitting requests.

(a) Each request for an administrative ruling must be in writing and contain the following information:
(1) A complete description of the situation for which the ruling is requested,
(2) A complete statement of all material facts related to the subject transaction,
(3) A concise and unambiguous question to be answered,
(4) A statement certifying, to the
best of the requestor’s knowledge and
belief, that the question to be answered
is not applicable to any ongoing state
or Federal investigation, litigation,
grand jury proceeding, or proceeding
before any other governmental body involving either the requestor, any other
party to the subject transaction, or
any other party with whom the requestor has an agency relationship,
(5) A statement identifying any information in the request that the requestor considers to be exempt from

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