(a) Definitions. For purposes of this section:
(1) Burmese banking institution means
any foreign bank, as that term is defined in section 1010.100(u),
chartered or licensed by Burma, including branches and offices located
outside Burma.
(2) Correspondent account has the same meaning as provided in section
1010.605(c).
(3) Covered financial institution has the same meaning as provided
in section 1010.605(e)(2) and also includes the following:
(i) A futures
commission merchant or an introducing broker registered, or required
to register, with the Commodity Futures Trading Commission under the
Commodity Exchange Act (7 U.S.C. 1 et seq.); and
(ii) An investment company
(as defined in section 3 of the Investment Company Act of 1940 (15
U.S.C. 80a-5)) that is an open-end company (as defined in section
5 of the Investment Company Act (15 U.S.C. 80a-5)) and that is registered,
or required to register, with the Securities and Exchange Commission
pursuant to that Act.
3-1705.41
(b) Requirements for covered
financial institutions.
(1) Prohibition
on correspondent accounts. 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,
a Burmese banking institution.
(2) Prohibition
on indirect correspondent accounts.
(i) If a covered financial
institution has or obtains knowledge that a correspondent account
established, maintained, administered, or managed by that covered
financial institution in the United States for a foreign bank is being
used by the foreign bank to provide banking services indirectly to
a Burmese banking institution, the covered financial institution shall
ensure that the correspondent account is no longer used to provide
such services, including, where necessary, terminating the correspondent
account; and
(ii)
A covered financial institution required to terminate an account pursuant
to paragraph (b)(2)(i) of this section:
(A) Shall do so within a
commercially reasonable time, and shall not permit the foreign bank
to establish any new positions or execute any transactions through
such account, other than those necessary to close the account; and
(B) May reestablish an account
closed pursuant to this paragraph if it determines that the account
will not be used to provide banking services indirectly to a Burmese
banking institution.
(3) Exception. The provisions of paragraphs
(b)(1) and (2) of this section shall not apply to a correspondent
account provided that the operation of such account is not prohibited
by Executive Order 13310 and the transactions involving Burmese banking
institutions that are conducted through the correspondent
account are limited solely to transactions that are exempted from,
or otherwise authorized by regulation, order, directive, or license
pursuant to, Executive Order 13310.
(4) Reporting
and recordkeeping not required. Nothing in this section shall
require a covered financial institution to maintain any records, obtain
any certification, or report any information not otherwise required
by law or regulation.
