Jump to Navigation

Dreher Tomkies LLP
Attorneys at Law
2750 Huntington Center
41 South High Street
Columbus, Ohio 43215
Telephone (614) 628-8000
Fax (614) 628-1600



Law Digests Online!
Home
Firm Overview
Practice Areas
Attorney Profiles
Alerts
Multistate Digests
Articles
Representative Clients
Resource Links
Firm Brochure
Contact Us
Save to My Favorites
Print this page
Alerts Contextual Image

FRB SEEKS COMMENTS ON PROPOSED REGULATION K AMENDMENT

The Federal Reserve Board (FRB) on May 28, 2003 announced that it is seeking public comment on a proposal to amend Regulation K to require Edge and Agreement corporations and U.S. branches, agencies and other offices of foreign banks supervised by the FRB to establish and maintain procedures reasonably designed to ensure and monitor compliance with the Bank Secrecy Act (BSA) and related regulations.

The BSA generally requires a financial institution doing business in the United States to keep records and make reports that have a high degree of usefulness in criminal, tax or regulatory proceedings. The FRB's proposal to amend Regulation K would require Edge and Agreement corporations and U.S. branches, agencies and other offices of foreign banks to implement and maintain compliance programs similar to those already required for domestic financial institutions. The FRB's proposal is designed to be consistent with regulations recently issued by the Department of the Treasury under section 352 of the USA PATRIOT Act, which requires all financial institutions to maintain effective anti-money-laundering programs. The FRB believes that the proposed regulation will not impose any material additional administrative burden for affected institutions because the FRB has, as a matter of safety and soundness, consistently expected such entities to maintain programs to ensure compliance with all applicable provisions of the BSA.

Comments on the FRB's proposal should be submitted by June 30, 2003.

Mike Tomkies