PUBLIC/OFFICIAL RELEASE // EXTERNAL

Summons or Subpoena of Foreign Bank Records; Termination of Correspondent Relationship; Records Concerning

Owners of Foreign Banks and Agents for Service of Legal Process

SUMMONS OR SUBPOENA OF FOREIGN BANK RECORDS;

TERMINATION OF CORRESPONDENT RELATIONSHIP;

RECORDS CONCERNING OWNERS OF FOREIGN BANKS

AND AGENTS FOR SERVICE OF LEGAL PROCESS

Objective: Assess the bank’s compliance with the Bank Secrecy Act (BSA) regulatory

requirements regarding summons or subpoena of foreign bank records and, if applicable,

termination of a correspondent relationship. Assess the bank’s compliance with BSA regulatory

requirements concerning records of owners of foreign banks and agents for service of legal

process.

Regulatory Requirements

This section outlines the regulatory requirements for banks in 31 CFR Chapter X regarding

summons or subpoena of foreign bank1 records, termination of a correspondent relationship, and

records concerning owners of foreign banks and agents for service of legal process. Specifically,

this section covers:

 31 CFR 1010.605 (Definitions)

 31 CFR 1010.670

 31 CFR 1010.630

Issuance of Summons or Subpoena to Foreign Banks that Maintain

Correspondent Accounts in the United States

The Secretary of the Treasury or the U.S. Attorney General may issue a summons or subpoena to

any foreign bank that maintains a correspondent account in the United States and request any

records relating to the correspondent account or any account at the foreign bank that is the

subject of (1) any investigation of a violation of a criminal law of the United States; (2) any

investigation of a violation of 31 USC Chapter 53, Subchapter II; (3) a civil forfeiture action; or

(4) an investigation pursuant to 31 USC 5318A.2 This includes 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 in person or by mail or fax 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.3

1 31 CFR 1010.100(u). 2 31 CFR 1010.670; 31 USC 5318(k)(3)(A)(i), as amended by Section 6308 of the AML Act of 2020.

3 31 CFR 1010.670(b). Section 6308 of the AML Act of 2020 amended the methods of service to include in person

and by mail or fax in the United States. 31 USC 5318(k)(3)(A)(iii).

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PUBLIC/OFFICIAL RELEASE // EXTERNAL

Summons or Subpoena of Foreign Bank Records; Termination of Correspondent Relationship; Records Concerning

Owners of Foreign Banks and Agents for Service of Legal Process

Termination Upon Receipt of Notice of Failure to Comply with Summons or

Subpoena

A U.S. bank must terminate any correspondent relationship with a foreign bank not later than 10

business days after receipt of written notice from the Secretary of the Treasury or the U.S.

Attorney General (in each case, after consultation with the other) that the foreign bank has failed

to comply with a summons or subpoena or failed to prevail in proceedings in a U.S. court to

challenge the summons or subpoena.4

Failure to Terminate Relationship

A U.S. bank that fails to terminate a correspondent relationship in accordance with 31 USC

5318(k)(3) may be liable for a civil penalty of up to $25,000 per day until the correspondent

relationship is terminated.

Records Concerning Owners of Foreign Banks and Agents for Service of

Legal Process

Banks that maintain correspondent accounts in the United States for foreign banks must maintain

records in the United States identifying the owners5 of each such foreign bank whose shares are

not publicly traded.6 Banks must also record the name and street address of a person who resides

in the United States and who is authorized and has agreed to be an agent to accept service of

legal process for records regarding such an account.

Safe Harbor

Banks are “deemed in compliance” with the requirement to maintain records of owners of

foreign banks and agents for service of legal process if the bank obtains a certification or

recertification from the foreign bank.7 The certification or recertification must be provided at

least once every three years, on or before the three-year anniversary of the initial or previous

certification. A bank may satisfy the safe harbor provision by obtaining a copy of a foreign

bank’s certification or recertification either directly from the foreign bank or indirectly, such as

from a central database or from another financial institution, providing that the form and content

of the certification are sufficient and reliable.8 The U.S. Department of the Treasury, working

4 Under 31 CFR 1010.670(e), a U.S. bank is not liable to any person in any court or arbitration proceeding for

terminating a correspondent relationship in accordance with 31 CFR 1010.670(d). Section 6308 of the AML Act of

2020 amended 31 USC 5318(k)(3)(E)(i) replacing the terms “initiates’ with “prevail in” and “contest” with

“challenge.”

5 For purposes of this requirement, “owner” means any person who, directly or indirectly, owns, controls, or has the

power to vote 25 percent or more of any class of voting securities or other voting interests of a foreign bank, or

controls in any manner the election of a majority of the foreign bank’s directors (or individuals exercising similar

functions). 31 CFR 1010.605(j). Section 6308 of the AML Act of 2020 amended 31 USC 5318(k)(3)(B)(i) to state

that the term “owner” includes the owners of record and the beneficial owners of the foreign bank.

6 31 CFR 1010.630(a)(2)(ii). A bank need not maintain records of the owners of any foreign bank that is required to

file a form FR Y-7 (Annual Report of Foreign Banking Organizations) with the Federal Reserve Board. 7 31 CFR 1010.630(b).

8 FinCEN (February 3, 2006), FIN-2006-G003 “Frequently Asked Questions, Foreign Bank Recertifications under

31 CFR 103.177.”

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PUBLIC/OFFICIAL RELEASE // EXTERNAL

Summons or Subpoena of Foreign Bank Records; Termination of Correspondent Relationship; Records Concerning

Owners of Foreign Banks and Agents for Service of Legal Process

with the financial industry and federal banking and law enforcement agencies, developed a

certification process to assist banks in complying with these recordkeeping provisions. This

process includes certification and recertification forms.9 While banks are not required to use

these forms, the forms are designed to provide a means of complying with the requirements.

Interim Verification

Banks are responsible for reviewing certifications for reasonableness and accuracy. If at any

time a bank knows, suspects, or has reason to suspect that any information contained in a

certification (or recertification) provided by a foreign bank, or any other information the bank

relied on is no longer correct, the bank must request that the foreign bank verify or correct such

information or take other appropriate measures to determine the accuracy of the information or to

obtain correct information.10

Closure of Correspondent Accounts when Unable to Obtain Certification

Information

The regulation contains specific provisions as to when banks must close correspondent

accounts.11 If the bank is unable to obtain the required certification (or recertification) or is

unable to obtain documentation of the required information within 30 calendar days after the date

the account is established, and at least once every three years thereafter, the bank shall close all

correspondent accounts with that foreign bank. The closure must be within a commercially

reasonable time, and the bank must not permit the foreign bank to establish any new positions or

execute any transaction through the account, other than transactions necessary to close the

account.12

When conducting an interim verification, if the bank has not received the requested information

within 90 calendar days, the bank shall close all correspondent accounts with that foreign bank.

The closure must be within a commercially reasonable time, and the bank must not permit that

foreign bank to establish any new positions or execute any transaction through the account, other

than those transactions necessary to close the account.13

A bank may not reestablish any account closed or establish any other correspondent account for

that foreign bank, until it obtains the required certification or recertification information, as

appropriate.14

Recordkeeping Requirements

A bank must retain the original of any documents provided by a foreign bank, and the original or

copy of any document otherwise relied on for the purposes of this regulation, for at least five

9 Certification Regarding Correspondent Accounts for Foreign Banks and Recertification Regarding Correspondent

Accounts for Foreign Banks (OMB Control Number 1506-0043).

10 31 CFR 1010.630(c). 11 31 CFR 1010.630(d). 12 31 CFR 1010.630(d)(2).

13 31 CFR 1010.630(d)(3). 14 31 CFR 1010.630(d)(4).

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PUBLIC/OFFICIAL RELEASE // EXTERNAL

Summons or Subpoena of Foreign Bank Records; Termination of Correspondent Relationship; Records Concerning

Owners of Foreign Banks and Agents for Service of Legal Process

years after the date that a bank no longer maintains any correspondent account for that foreign

bank.15

Issuance to U.S. Banks

Upon receipt of a written request from a federal law enforcement officer for information required

to be maintained by a bank under 31 CFR 1010.630, the bank must provide the information to

the requesting officer not later than seven days after receipt of the request.16

Requests for AML Records by Federal Regulator

Upon request by the U.S. bank’s federal regulator, the U.S. bank must provide or make available

records related to anti-money laundering (AML) compliance of the U.S. bank

or any customer of the U.S. bank, within 120 hours from the time of the request. Documentation

that must be made available includes information and account documentation for any account

opened, maintained, administered, or managed in the United States by the bank.17

Examiner Assessment of Compliance with Requirements Regarding Summons

or Subpoena of Foreign Bank Records

Examiners should assess the adequacy of the bank’s policies, procedures, and processes related

to regulatory requirements for summons or subpoena of foreign bank records; associated

requirements to terminate correspondent accounts, if appropriate; and requirements concerning

records of owners of foreign banks and agents to accept service of legal process. Examiners may

review information, such as independent testing or audit reports, to aid in their assessment of the

bank’s compliance with these obligations. Refer to the Assessing the BSA/AML Compliance

Program - BSA/AML Internal Controls section of this Manual for more information.

15 31 CFR 1010.630(e).

16 31 CFR 1010.670(c).

17 31 USC 5318(k)(2).

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PUBLIC/OFFICIAL RELEASE // EXTERNAL

Summons or Subpoena of Foreign Bank Records; Termination of a Correspondent Relationship; Records

Concerning Owners of Foreign Banks and Agents for Service of Legal Process Examination and Testing Procedures

SUMMONS OR SUBPOENA OF FOREIGN BANK RECORDS;

TERMINATION OF CORRESPONDENT RELATIONSHIP;

RECORDS CONCERNING OWNERS OF FOREIGN BANKS

AND AGENTS FOR SERVICE OF LEGAL PROCESS

EXAMINATION AND TESTING PROCEDURES

Objective: Assess the bank’s compliance with the Bank Secrecy Act (BSA) regulatory

requirements regarding summons or subpoena of foreign bank records and, if applicable,

termination of correspondent relationship. Assess the bank’s compliance with BSA regulatory

requirements concerning records of owners of foreign banks and agents for service of legal

process.

1. Review the bank’s policies, procedures, and processes related to summons or subpoena of

foreign bank records. Determine whether the bank’s policies, procedures, and processes

provide for:

 Maintaining records in the United States identifying the owners of each foreign bank

whose shares are not publicly traded and the name and street address of a person who

resides in the United States and is authorized, and has agreed to be, an agent to accept

service of legal process.

 Obtaining, when the correspondent account is established and at least once every three

years, a certification or recertification from the foreign bank with current information

required on the bank, the owners, and the process agents.

 Reviewing reports of owners and agents (certifications or recertifications) for

reasonableness and accuracy, including steps to request that the foreign bank verify or

correct information, should the bank know, suspect, or have reason to suspect that any

information is no longer correct.

 Closing correspondent accounts within a commercially reasonable time when the bank is

unable to obtain a certification or recertification within 30 calendar days after the date the

account is established, and at least once every three years thereafter.

 Closing correspondent accounts within a commercially reasonable time when the bank

has not obtained verification of the information or corrected information within 90

calendar days after the date of undertaking the verification.

 Prohibiting the bank from reestablishing any correspondent account closed or

establishing any other correspondent account for such foreign bank until it obtains the

required information.

 Retaining the original or copy of any document relied upon for at least five years after the

date that the bank no longer maintains any foreign correspondent account for such

foreign bank.

 Responding to a written request from a federal law enforcement officer for information

required to be maintained by a U.S. bank under 31 CFR 1010.630(a)(2). If the bank

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PUBLIC/OFFICIAL RELEASE // EXTERNAL

Summons or Subpoena of Foreign Bank Records; Termination of a Correspondent Relationship; Records

Concerning Owners of Foreign Banks and Agents for Service of Legal Process Examination and Testing Procedures

received a written request from a federal law enforcement officer, verify that the bank

responded not later than seven days after receipt of the request.

 Terminating any correspondent relationship with a foreign bank within 10 business days

after receipt of written notice from the Secretary of the Treasury or the U.S. Attorney

General (in each case, after consultation with the other) that the foreign bank has failed to

comply with a summons or subpoena or failed to prevail in proceedings in a U.S. court to

challenge the summons or subpoena.

2. On the basis of a risk assessment, prior examination reports, and a review of the bank’s audit

findings, select a sample of foreign correspondent bank accounts. From the sample selected

determine the following:

 Whether certifications and information on the accounts are complete and reasonable.

 For account closures, whether closures were made within a commercially reasonable time

period and that the relationship was not re-established without sufficient reason.

 Whether there are any federal law enforcement requests for information regarding foreign

correspondent accounts. If so, ascertain that requests were met in a timely manner.

 Whether the bank received any official notifications to terminate a correspondent

relationship with a foreign bank.18 If so, ascertain that the accounts were closed within

10 business days.

 Whether the bank retains the original of any document provided by a foreign financial

institution, as well as the original or a copy of any document relied on, for at least five

years after the date the bank no longer maintains any foreign correspondent account for

such foreign bank.

3. On the basis of examination and testing procedures completed, form a conclusion about the

adequacy of policies, procedures, and processes the bank has developed to meet Bank

Secrecy Act (BSA) regulatory requirements associated with summons or subpoenas of

foreign bank records; terminating a correspondent account, if applicable; and maintaining

records of owners of foreign banks and agents for service of legal process.

18 Official notifications to close a foreign financial institution’s account must be signed by either the Secretary of the

Treasury or the U.S. Attorney General.

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