which act gives the secretary of treasury and the attorney general the power to subpoena

What are the general powers of the Secretary of the Treasury?

(a) GENERAL POWERS OF SECRETARY.--The Secretary of the Treasury may (except under section 5315 of this title and regulations prescribed under section 5315)-- (1) except as provided in subsection (b) (2), delegate duties and powers under this subchapter to an appropriate supervising agency and the United States Postal Service;

Where can a foreign bank seek relief from a subpoena?

(cc) Venue for relief.— A foreign bank may seek review in the appropriate district court of the United States of any penalty assessed under this clause and the issuance of a subpoena under subparagraph (A) (i). under subparagraph (E) (iii) (II).

What happens if a foreign bank fails to obey a subpoena?

If a foreign bank fails to obey a subpoena issued under subparagraph (A) (i), the Attorney General may invoke the aid of the district court of the United States for the judicial district in which the investigation or related proceeding is occurring to compel compliance with the subpoena.

What are the changes to the Bank Secrecy Act?

This Section amends the Bank Secrecy Act by imposing due diligence & enhanced due diligence requirements on U.S. financial institutions that maintain correspondent accounts for foreign financial institutions or private banking accounts for non-U.S. persons.

Which of the following acts gives the Secretary of Treasury and the attorney general power to issue a summons?

Section 5318(k) authorizes the Secretary and the Attorney General to issue a summons or subpoena to any foreign bank that maintains a correspondent account in the United States and request records related to such correspondent account, including records maintained outside of the United States relating to the deposit of ...

What is Section 326 of the USA PATRIOT Act?

Recordkeeping. Section 326 of the Act requires reasonable procedures for maintaining records of the information used to verify a person's name, address, and other identifying information. The proposed regulation sets forth recordkeeping procedures that must be included in a bank's CIP.

What is in the Patriot Act?

Under the Patriot Act, the FBI can secretly conduct a physical search or wiretap on American citizens to obtain evidence of crime without proving probable cause, as the Fourth Amendment explicitly requires.

Is NDAA the Patriot Act?

However, the NDAA expansion of the scope of the Patriot Act subpoena to "any account" of the non-US bank seemingly removes the requirement for a connection between the non-US bank's contact with the United States and the underlying matter.

What is Section 314 of the USA PATRIOT Act?

Section 314 helps law enforcement identify, disrupt, and prevent terrorist acts and money laundering activities by encouraging further cooperation among law enforcement, regulators, and financial institutions to share information regarding those suspected of being involved in terrorism or money laundering.

What does Section 313 of the USA PATRIOT Act cover?

USA PATRIOT Act Anti-Money Laundering Requirements for Foreign Correspondent Institutions. Section 313 of the USA PATRIOT Act prohibits US financial institutions from establishing, maintaining, administrating or managing correspondent accounts for foreign shell banks.

What is Section 215 of the Patriot Act?

of the Patriot Act in 2001. Section 215 allows the government to obtain a secret court order requiring third parties, such as telephone companies, to hand over any records or other “tangible thing” if deemed “relevant” to an international terrorism, Page 2 2 counterespionage, or foreign intelligence investigation.

What is the Patriot Act AML?

Title III of the USA Patriot Act, known as "The International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001" (the Act) is intended to make it more difficult for terrorists to launder money in the United States.

What is the Special Measures Act of 2001?

On October 26, 2001, President George W. Bush signed into law the USA PATRIOT Act of 20012, a comprehensive anti-terrorism law that implements a broad array of measures aimed at increasing national security, improving surveillance of terrorist activities, easing information sharing, and combating money laundering.

What is the Patriot Act 2020?

An Act to deter and punish terrorist acts in the United States and across the globe, to enhance law enforcement investigatory tools, and for other purposes.

What did the Patriot Act do apex?

enforcement with new tools to detect and prevent terrorism: The USA Patriot Act was passed nearly unanimously by the Senate 98-1, and 357-66 in the House, with the support of members from across the political spectrum. Allows law enforcement to use surveillance against more crimes of terror.

When was the National Defense Authorization Act passed?

The National Defense Authorization Act (NDAA) is the name for each of a series of United States federal laws specifying the annual budget and expenditures of the U.S. Department of Defense. The first NDAA was passed in 1961.

Who can issue a summons to a foreign bank?

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.

How long does a covered financial institution have to terminate a correspondent relationship with a foreign bank?

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 ...

Can a summons be served on a 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.

What is the Patriot Act subpoena?

Patriot Act Subpoenas: Reinvigorated and Reaching Across Borders. The override of former President Trump's veto of the National Defense Authorization Act of 2021 resulted in the enactment of broad amendments to the US anti-money laundering regime. Among the amendments are provisions to bolster a seldom-used authority of ...

What is the principle of comity in a subpoena?

Traditionally, US courts have applied the principle of comity, or a "spirit of cooperation," to help balance those interests. 7 Under comity, a court can consider a range of factors, including whether "compliance with the request would undermine important interests of the state where the information is located" or "the hardship of the party facing conflicting legal obligations." 8

What should a non-US bank with correspondent accounts do?

With the threat of an expanded and re-invigorated Patriot Act subpoena authority , a non-US bank with correspondent accounts should re-evaluate the risk profile of its account base. While a spate of enforcement actions and de-risking of US correspondent accounts over the last two decades has caused non-US respondent banks to exercise greater oversight and control over the transactions that flow through their US-based correspondent accounts, such banks may want to expand that oversight and control to any account that may find it subject to investigation by US law enforcement and regulatory authorities. Accordingly, respondent banks may also want to consider whether the threat of a Patriot Act subpoena changes its business and risk decisions to maintain a correspondent account in the United States.

What powers did the Patriot Act give the government?

In 2001, under the USA PATRIOT Act, Congress granted the Secretary of the Treasury and the Attorney General sweeping new powers to demand information from non-US banks that maintain correspondent accounts in the United States. 1 These new powers, commonly called Patriot Act subpoenas, gave the US government access to any records of the non-US bank related to correspondent accounts , including "records maintained outside of the United States relating to the deposit of funds into the foreign bank." 2 It was an innovative attempt to leverage the centrality of the US financial system to gain access to information that would otherwise be beyond law enforcement's reach.

What is a civil forfeiture action?

A civil forfeiture action; or. Any investigation pursuant to a designation of primary money laundering concern under Section 311 of the USA PATRIOT Act. Authentication. Did not specify the form with which the requested records must be provided.

When did the Senate vote to override the NDAA?

On January 2, 2021, the Senate voted to override former President Trump's veto of the National Defense Authorization Act of 2021 ("NDAA"). As a result, some of the most significant amendments to the US anti-money laundering ("AML") regime in recent years became law. 4 Among the amendments was the DOJ's proposal to amend ...

Does the Patriot Act require a connection between a non-US bank and the United States?

However, the NDAA expansion of the scope of the Patriot Act subpoena to "any account" of the non-US bank seemingly removes the requirement for a connection between the non-US bank's contact with the United States and the underlying matter.

What is the purpose of the Bank Secrecy Act?

Under section 371 of the Patriot Act, Congress found that currency reporting under the Bank Secrecy Act (BSA) was significant in forcing money launders to avoid traditional financial institutions to launder money and had forced them to use cash-based businesses to avoid traditional financial institutions. Due to this avoidance, large amounts of currency in bulk form ( bank notes, etc.) is now moved out of the U.S. by money launderers and into foreign financial institutions or sold on the black market. In fact, bulk currency was found to have become the most popular form of money laundering for moving large amounts of cash in an evasive manner. Due to this finding, a new effort was made to stop the laundering of money through bulk currency movements, mainly focusing on the confiscation of criminal proceeds and the increase in penalties for money laundering. Congress found that a criminal offense of merely evading the reporting of money transfers was insufficient and decided that it would be better if the smuggling of the bulk currency itself was the offense.

What is the title of the Anti-Terrorist Financing Act?

Title III: International Money Laundering Abatement and Anti-terrorist Financing Act of 2001. Title IV: Protecting the border. Title V: Removing obstacles to investigating terrorism. Title VI: Providing for victims of terrorism, public safety officers and their families. Title VII:

What is forfeiture in currency reporting?

The BSA was amended by section 372 of the Patriot Act to make the civil and criminal penalty violations of currency reporting cases be the forfeiture of all a defendant's property that was involved in the offense, and any property traceable to the defendant.

What would terminate the title of the International Money Laundering Abatement and Anti-Terrorist Financing

The title would terminate if Congress enacted a joint resolution with the text after the resolving clause being: That provisions of the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001, and the amendments made thereby, shall no longer have the force of law.

What are the special measures that financial institutions must undertake?

Section 311 requires the maintenance of records of the aggregate amount of all transactions that are made outside the U.S. in areas where money-laundering has been identified as a concern; that reasonable steps be undertaken by a financial institution to obtain and retain information on foreigners who gain a benefit of ownership of an account which is opened and maintained in the U.S., and yet who do not own the account itself (also known as beneficial ownership ); and that the financial institution identify any foreign customers who are authorised to use or route transactions through a payable-through account in the U.S.. Section 314 adds regulations that attempt to foster cooperative efforts to deter money laundering. This was mainly done by ordering the U.S. Treasury and other agencies to create regulations that set out how information was to be shared, and by allowing financial institutions to share information with other financial institutions when so allowed by the Secretary of Treasury. Section 327 makes it harder for bank holding companies or banks to merge or consolidate with another bank holding company if they have not got a good track record in combating money laundering activities, and also makes it harder for insured depository institutions to merge with non-insured depository institutions if the insured depository institution has a bad track record in combating money laundering activities. A number of sections (sections 312, 313, 319 and 325) deal with the forfeiture of goods if international terrorism or money laundering is suspected.

How is anti-money laundering impeded?

United States anti-money laundering efforts are impeded by outmoded and inadequate statutory provisions that make investigations, prosecutions, and forfeitures more difficult, particularly in cases in which money laundering involves foreign persons, foreign banks, or foreign countries. and.

What is the purpose of the title 302.?

(1) to increase the strength of United States measures to prevent, detect, and prosecute international money laundering and the financing of terrorism; (2) to ensure that- -.

What is the USA Patriot Act?

The official title of the USA PATRIOT Act is "Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001.". To view this law in its entirety, click on the USA PATRIOT Act link below.

What is Section 351?

Section 351: Amendments Relating to Reporting of Suspicious Activities.

Can a bank have a correspondent account?

Banks and broker-dealers are prohibited from having correspondent accounts for any foreign bank that does not have a physical presence in any country. Additionally, they are required to take reasonable steps to ensure their correspondent accounts are not used to indirectly provide correspondent services to such banks.

Who files a report under subsection B?

(a) Except as provided in subsection (c) of this section, a person or an agent or bailee of the person shall file a report under subsection (b) of this section when the person, agent, or bailee knowingly--

What is a probable cause search warrant?

On a showing of probable cause, the court may issue a search warrant for a designated person or a designated or described place or physical object. This subsection does not affect the authority of the Secretary under another law.

Background

• Patriot Act Subpoenas
  In 2001, under the USA PATRIOT Act, Congress granted the Secretary of the Treasury and the Attorney General sweeping new powers to demand information from non-US banks that maintain correspondent accounts in the United States.1 These new powers, commonly called Patriot Act …
• Anti-Money Laundering Amendments in the NDAA
  On January 2, 2021, the Senate voted to override former President Trump's veto of the National Defense Authorization Act of 2021 ("NDAA"). As a result, some of the most significant amendments to the US anti-money laundering ("AML") regime in recent years became law.4Amo…

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Key Changes

Implications on Comity Analysis and Personal Jurisdiction

Key Takeaways For Banks