Except as otherwise provided, the following definitions
apply for purposes of sections 1010.610 through 1010.630 and section
1010.670:
(a) Beneficial owner of an account means an
individual who has a level of control over, or entitlement to, the
funds or assets in the account that, as a practical matter, enables
the individual, directly or indirectly, to control, manage or direct
the account. The ability to fund the account or the entitlement to
the funds of the account alone, however, without any corresponding
authority to control, manage or direct the account (such as in the
case of a minor child beneficiary), does not cause the individual
to be a beneficial owner.
(b) Certification and recertification mean the certification and recertification forms regarding correspondent
accounts for foreign banks located on FinCEN’s Internet Web site,
http://www.fincen.gov.
(c) Correspondent
account.
(1) The
term correspondent account means:
(i) For purposes of section 1010.610(a),
(d) and (e), an account established for a foreign financial institution
to receive deposits from, or to make payments or other disbursements
on behalf of, the foreign financial institution, or to handle other
financial transactions related to such foreign financial institution;
and
(ii) For purposes of sections
1010.610(b) and (c), 1010.630 and 1010.670, an account established
for a foreign bank to receive deposits from, or to make payments or
other disbursements on behalf of, the foreign bank, or to handle other
financial transactions related to such foreign bank.
(2) For purposes of this definition,
the term account :
(i) As applied to banks (as set forth
in paragraphs (e)(1)(i) through (vii) of this section):
(A) Means any formal banking or business
relationship established by a bank to provide regular services, dealings,
and other financial transactions; and
(B) Includes a demand deposit, savings deposit, or other transaction
or asset account and a credit account or other extension of credit;
(ii) As applied
to brokers or dealers in securities (as set forth in paragraph (e)(1)(viii)
of this section) means any formal relationship established with a
broker or dealer in securities to provide regular services to effect
transactions in securities, including, but not limited to, the purchase
or sale of securities and securities loaned and borrowed activity,
and to hold securities or other assets for safekeeping or as collateral;
(iii) As applied to futures commission
merchants and introducing brokers (as set forth in paragraph (e)(1)(ix)
of this section) means any formal relationship established by a futures
commission merchant to provide regular services, including, but not
limited to, those established to effect transactions in contracts
of sale of a commodity for future delivery, options on any contract
of sale of a commodity for future delivery, or options on a commodity;
and
(iv) As applied to mutual funds
(as set forth in paragraph (e)(1)(x) of this section) means any contractual
or other business relationship established between a person and a
mutual fund to provide regular services to effect transactions in
securities issued by the mutual fund, including the purchase or sale
of securities.
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(d) Correspondent relationship has the same meaning as correspondent account for purposes of sections
1010.630 and 1010.670.
(e) Covered financial institution means:
(1) For purposes
of section 1010.610 and 1010.620:
(i) A bank required to have an anti-money
laundering compliance program under the regulations implementing 31
U.S.C. 5318(h), 12 U.S.C. 1818(s), or 12 U.S.C. 1786(q)(1);
(ii) A broker or dealer in securities
registered, or required to be registered, with the Securities and
Exchange Commission under the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.), except persons who register pursuant to
section 15(b)(11) of the Securities Exchange Act of 1934;
(iii) A futures commission merchant
or an introducing broker registered, or required to be registered,
with the Commodity Futures Trading Commission under the Commodity
Exchange Act (7 U.S.C. 1 et seq.), except persons who register
pursuant to section 4(f)(a)(2) of the Commodity Exchange Act; and
(iv) A mutual fund;
(2) For purposes of sections 1010.630
and 1010.670:
(i)
An insured bank (as defined in section 3(h) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(h)));
(ii) A commercial bank or trust company;
(iii) A private banker;
(iv) An agency or branch of a foreign
bank in the United States;
(v)
A credit union;
(vi) A savings
association;
(vii) A corporation
acting under section 25A of the Federal Reserve Act (12 U.S.C. 611 et seq.); and
(viii) A broker
or dealer in securities registered, or required to be registered,
with the Securities and Exchange Commission under the Securities Exchange
Act of 1934 (15 U.S.C. 78a et seq.), except persons who register
pursuant to section 15(b)(11) of the Securities Exchange Act of 1934.
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(f) Foreign financial institution.
(1) The term foreign financial institution means:
(i) A foreign
bank;
(ii) Any branch or office
located outside the United States of any covered financial institution
described in paragraphs (e)(1)(viii) through (x) of this section;
(iii) Any other person organized
under foreign law (other than a branch or office of such person in
the United States) that, if it were located in the United States,
would be a covered financial institution described in paragraphs (e)(1)(viii)
through (x) of this section; and
(iv) Any person organized under foreign law (other than a branch
or office of such person in the United States) that is engaged in
the business of, and is readily identifiable as:
(A) A dealer in foreign exchange; or
(B) A money transmitter.
(2) For purposes of paragraph
(f)(1)(iv) of this section, a person is not “engaged in the business”
of a dealer in foreign exchange or a money transmitter if such transactions
are merely incidental to the person’s business.
(g) Foreign shell bank means a foreign bank without a physical presence
in any country.
(h) Non-United States person or non-U.S.
person means a natural person who is neither a United
States citizen nor is accorded the privilege of residing permanently
in the United States pursuant to title 8 of the United States Code.
For purposes of this paragraph (h), the definition of person in section
1010.100(mm) does not apply, notwithstanding paragraph (k) of this
section.
(i) Offshore banking license means a license
to conduct banking activities that prohibits the licensed entity from
conducting banking activities with the citizens of, or in the local
currency of, the jurisdiction that issued the license.
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(j) Owner.
(1) The term owner means any person who,
directly or indirectly:
(i) Owns, controls, or has the power to vote 25 percent or more of
any class of voting securities or other voting interests of a foreign
bank; or
(ii) Controls in any
manner the election of a majority of the directors (or individuals
exercising similar functions) of a foreign bank.
(2) For purposes of this definition:
(i) Members of the
same family shall be considered to be one person.
(ii) The term same family means parents,
spouses, children, siblings, uncles, aunts, grandparents, grandchildren,
first cousins, stepchildren, stepsiblings, parents-in-law, and spouses
of any of the foregoing.
(iii)
Each member of the same family who has an ownership interest in a
foreign bank must be identified if the family is an owner as a result
of aggregating the ownership interests of the members of the family.
In determining the ownership interests of the same family, any voting
interest of any family member shall be taken into account.
(iv) Voting securities or other voting
interests means securities or other interests that entitle the holder
to vote for or to select directors (or individuals exercising similar
functions).
(k) Person has the
meaning provided in section 1010.100(mm).
(l) Physical
presence means a place of business that:
(1) Is maintained by a foreign bank;
(2) Is located at a fixed address
(other than solely an electronic address or a post-office box) in
a country in which the foreign bank is authorized to conduct banking
activities, at which location the foreign bank:
(i) Employs one or more individuals
on a full-time basis; and
(ii)
Maintains operating records related to its banking activities; and
(3) Is subject to inspection
by the banking authority that licensed the foreign bank to conduct
banking activities.
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(m) Private banking
account means an account (or any combination of accounts) maintained
at a covered financial institution that:
(1) Requires a minimum aggregate deposit
of funds or other assets of not less than $1,000,000;
(2) Is established on behalf of or for
the benefit of one or more non-U.S. persons who are direct or beneficial
owners of the account; and
(3) Is
assigned to, or is administered or managed by, in whole or in part,
an officer, employee, or agent of a covered financial institution
acting as a liaison between the covered financial institution and
the direct or beneficial owner of the account.
(n) Regulated affiliate.
(1) The term regulated affiliate means a foreign shell bank that:
(i) Is an affiliate of a depository
institution, credit union, or foreign bank that maintains a physical
presence in the United States or a foreign country, as applicable;
and
(ii) Is subject to supervision
by a banking authority in the country regulating such affiliated depository
institution, credit union, or foreign bank.
(2) For purposes of this definition:
(i) Affiliate means
a foreign bank that is controlled by, or is under common control with,
a depository institution, credit union, or foreign bank.
(ii) Control means:
(A) Ownership, control,
or power to vote 50 percent or more of any class of voting securities
or other voting interests of another company; or
(B) Control in any manner the election of
a majority of the directors (or individuals exercising similar functions)
of another company.
(o) Secretary means the Secretary of the Treasury.
3-1705.15
(p) Senior foreign political figure.
(1) The term senior foreign political
figure means:
(i) A current or former:
(A) Senior official in the executive, legislative, administrative,
military, or judicial branches of a foreign government (whether elected
or not);
(B) Senior official of a major
foreign political party; or
(C) Senior
executive of a foreign government-owned commercial enterprise;
(ii) A corporation,
business, or other entity that has been formed by, or for the benefit
of, any such individual;
(iii)
An immediate family member of any such individual; and
(iv) A person who is widely and publicly
known (or is actually known by the relevant covered financial institution)
to be a close associate of such individual.
(2) For purposes of this definition:
(i) Senior official
or executive means an individual with substantial authority over policy,
operations, or the use of government-owned resources; and
(ii) Immediate family member means spouses,
parents, siblings, children and a spouse’s parents and siblings.
