TheUSA PATRIOT Actincludes provisions allowingthe U.S. government to seize assets linked to financial crime, even when held in foreign financial institutions.
Option A (Correct):Section 319(a) of the USA PATRIOT Actprovides U.S. regulators with the authority toseize funds deposited in U.S. correspondent accounts of foreign banks if linked to illicit activity.
Option B (Incorrect):Section 314(a)focuses oninformation sharing between law enforcement and financial institutions.
Option C (Incorrect):Section 319(b)enables U.S. authorities toseize funds linked to foreign correspondent banking accounts, but319(a) specifically deals with extraterritorial forfeiture.
Option D (Incorrect):Section 314(b)allowsfinancial institutions to voluntarily share AML-related information.
Why This Matters:
Foreign banks using U.S. correspondent accounts can be subject to U.S. jurisdiction.
Helps U.S. law enforcement disrupt global money laundering networks.
Encourages financial institutions to enhance correspondent banking due diligence.
[Reference:, USA PATRIOT Act Section 319(a) (Forfeiture of Funds), FinCEN Guidelines on Correspondent Banking Risks, FATF Recommendation 13 (Correspondent Banking), , , ]
