Section 311: Special Measures for Primary Money Laundering Concerns

Question 1

What authrioty does Section 311 have

Answer 1

US Treasury Department can apply graduated, proportionate measures against a foreign jurisdiction, a foreign financial institution, a type of international
transaction or a type of account that the Treasury Secretary determines to be a “primary money
laundering concern.”

Question 2

Explain two things can Treasury Department ask US FI to do in case of identified ML under section 311

Answer 2

1. Keep records and/or file reports on certain financial transactions. Also description of the
   transactions, the identities and addresses of the participants in the transactions and the identities
   of the beneficial owners of the funds involved.
2. Obtain information on the beneficial ownership of any account opened or maintained in the US
   by a foreign person or a foreign person’s representative.

Question 3

Explain the remaining things can Treasury Department ask US FI to do in case of identified ML under section 311

Answer 3

3. Identify and obtain information about customers who are permitted to use, or whose transac-
   tions are routed through, a foreign bank’s “payable-through” account.
4. Identify and obtain information about customers permitted to use, or whose transactions are
   routed through, a foreign bank’s “correspondent” account.
5. Close certain payable-through or correspondent accounts.

Question 4

whom does Treasury Secretary consult before designating as a primary money laundering concern

Answer 4

secretary of State and the Attorney General