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#686770 - 02/14/07 04:40 PM Section 326 of the Patriot Act
markp Offline
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Joined: Jan 2007
Posts: 382
New Jersey
Can someone please give me some guidance on section 326 of the Patriot Act regarding the Government Lists, I have to write a policy on this and I can’t seem to get it started.

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#686781 - 02/14/07 04:45 PM Re: Section 326 of the Patriot Act markp
TheManofSteel Offline
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Fortress of Solitude
As of right now, there is no official government list that must be utilized for CIP purposes under 326. However, as a best practice, FI's include as part of their KYC/CIP screening new accounts against the OFAC SDN List. If a violation of the OFAC list were to take place at the account opening level, it would not be under 326 that the Regulators would cite the FI, but under the OFAC laws. Since the regulators have even broader leeway under the Saftey and Soundness Statutes, they could slap an institution for weak account opening procedures that lack screening under OFAC. But again, that is not an official government list for 326 purposes.
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#686793 - 02/14/07 04:52 PM Re: Section 326 of the Patriot Act TheManofSteel
markp Offline
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Joined: Jan 2007
Posts: 382
New Jersey
AmlFella,

that was my conclusion so as far as writing this into policy we should we just carry a statement that the bank recognizes and will complt with it should the Government provide such a list in the future?

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#686809 - 02/14/07 05:07 PM Re: Section 326 of the Patriot Act markp
GLKS Offline
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Joined: Nov 2006
Posts: 344
besides the OFAC check run on new account holders, our CIP form also has a section titled "Verification of Government Lists" which is where we would record section 326 information. Right now nothing is done with that section, but it is there for when a list does become available.

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#686848 - 02/14/07 05:33 PM Re: Section 326 of the Patriot Act markp
TheManofSteel Offline
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TheManofSteel
Joined: Nov 2006
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Fortress of Solitude
Originally Posted By: markp
AmlFella,

that was my conclusion so as far as writing this into policy we should we just carry a statement that the bank recognizes and will complt with it should the Government provide such a list in the future?


Mark - I like the way Harty's bank is handling it. Certainly, a statement in your P&P is fine; the actual account opening form being set-up for just such a contingency is not at all a bad idea, and it saves some work down the line, should an official list be issued.
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