Sec. 10. Coordination among financial institutions
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Chapter 53 of title 31, United States Code, is amended— by inserting after section 5332 the following new section: In the case of an entry received via an automated clearing house, no receiving depository financial institution shall be required to verify that the entry is not a prohibited transaction, if the originating depository financial institution has warranted, pursuant to the automated clearing house rules governing such entry or otherwise, that the originating depository financial institution has complied with the sanctions programs administered by the Office of Foreign Assets Control in connection with such entry.
For purposes of this section: The term automated clearing house means a funds transfer system governed by rules which provide for the interbank clearing of electronic entries for participating depository financial institutions. The term depository financial institution means— any insured depository institution, as such term is defined under section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ); any depository institution which is eligible to apply to become an insured depository institution under section 5 of the Federal Deposit Insurance Act ( 12 U.S.C. 1815 ); any insured credit union, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752); and any credit union which is eligible to apply to become an insured credit union pursuant to section 201 of the Federal Credit Union Act ( 12 U.S.C. 1781 ).
The term entry means an order to request for the transfer of funds through an automated clearing house. The term originating depository financial institution means a depository financial institution that transmits entries via an automated clearing house for transmittal to a receiving depository financial institution. The term prohibited transaction means a funds transfer originated on behalf of a person to or from whom funds transfers are restricted by a sanctions program administered by the Office of Foreign Assets Control, including persons appearing on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control.
The term receiving depository financial institution means a depository financial institution that receives entries via an automated clearing house from an originating depository financial institution for debit or credit to the accounts of its customers. ; and in the table of contents for such chapter by inserting after the item relating to section 5332 the following new item: 5333. Coordination among financial institutions. .
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