US Fed publishes new rules for US branches of foreign banks

WASHINGTON, DC – The Federal Reserve and other US regulators have adopted a final rule that requires US branches of foreign banks to maintain procedures designed to monitor Bank Secrecy Act (BSA) compliance. The rules would require a branch, agency, or representative of a foreign bank operating in the US to establish a BSA compliance programme with the approval of the bank's board of directors.

The BSA compliance programme includes a system of controls to ensure ongoing compliance; independent testing of compliance by the institution's personnel or an outside entity; the designation of an individual or individuals to monitor day-to-day compliance; and BSA training for appropriate personnel.

Although regulators do not permit state member banks to delegate approval of the BSA compliance