Sec. 402. Special measures with respect to Iran relating to its designation as a jurisdiction of primary money laundering concern
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/bill/115/s/227/is/section-402A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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, an Iranian banking institution; and is not blocked under any Executive order issued pursuant to the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq.). A covered financial institution shall apply special due diligence measures to correspondent accounts of the financial institution that are reasonably designed to guard against the improper indirect use of such accounts by Iranian banking institutions.
The special due diligence measures a covered financial institution is required to apply to correspondent accounts under paragraph
(1)shall include, at a minimum— notifying the holders of such accounts that the covered financial institution knows or has reason to know provide services to Iranian banking institutions, that such holders generally may not provide Iranian banking institutions with access to such accounts; and taking reasonable steps to identify any indirect use of such accounts by Iranian banking institutions, to the extent that such indirect use can be determined from transactional records maintained by the covered financial institution in the normal course of business. A covered financial institution shall take a risk-based approach when deciding what, if any, other due diligence measures the financial institution should adopt to guard against the improper indirect use of its correspondent accounts by Iranian banking institutions. A covered financial institution that obtains credible information that a correspondent account is being used by a foreign bank to provide indirect access to an Iranian banking institution, shall— take all appropriate steps to prevent such indirect access, including notifying the holder of the account under paragraph (2)(A); and if necessary, terminate the account. A covered financial institution shall document its compliance with the notice requirement set forth in subsection (b)(2)(A). Nothing in this section shall require a covered financial institution to report any information not otherwise required to be reported by law or regulation. This section shall terminate on the date that is 30 days after the date on which the President submits to Congress— the certification described in section 401(a) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 ( 22 U.S.C. 8551(a) ); and a certification that the Financial Action Task Force has lifted its call for countermeasures against Iran and Iran has become a member of a regional body of the Financial Action Task Force. In this section: The term correspondent account has the meaning given that term in section 1010.605 of title 31, Code of Federal Regulations (as in effect on the day before the date of the enactment of this Act). The term covered financial institution has the meaning given that term under paragraphs
(1)and
(2)of section 1010.605(e) of title 31, Code of Federal Regulations (as in effect on the day before the date of the enactment of this Act). The term foreign bank has the meaning given that term in section 1010.100(u) of title 31, Code of Federal Regulations (as in effect on the day before the date of the enactment of this Act). The term Iranian banking institution means— any foreign bank chartered by Iran, including— any branches, offices, or subsidiaries of such a bank operating in any jurisdiction; and any branch or office within Iran of any foreign bank licensed by Iran; the Central Bank of Iran; and any foreign bank of which more than 50 percent of the voting stock or analogous interest is owned by two or more foreign banks chartered by Iran.
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Sec. 402
Special measures with respect to Iran relating to its designation as a jurisdiction of primary money laundering concern
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