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"Due Diligence: Know Your Customer" Rules: Financial institutions and professionals are required to obtain complete due diligence on individuals or companies in order to "know the customer" or "know the client." The source of funds must also be determined. The due diligence is required by the relevant portions of the Forty Recommendations of the FATF as adopted by the controlling jurisdiction. For U.S. clientele, portions of the USA Patriot Act will also apply.
With the IRS aggressively pursuing unreported offshore accounts of U.S. citizens and entities, many foreign banks are shying away from U.S. clientele. However, managing and offering properly reported offshore accounts held by U.S. citizens and entities are still viable business options for non-U.S. banks. Due to the intricacies of the U.S. tax laws and regulations, foreign banks that want to continue offering these services to U.S. clientele are best served by retaining a U.S. law firm that has experience with compliance in these areas.
Is your bank a foreign bank that
- represents U.S. clients/customers?
- wants to represent U.S. clients/customers?
- has non-U.S. clients/customers residing outside the country of the bank’s location?
- has clients/customers holding accounts through establishing trusts, entities or other structures?
- has current policies, procedures and training programs for employees with respect to due diligence and anti-money laundering?
Duke Law Firm represents private banking departments in compliance, due diligence, anti-money laundering, determining beneficial ownership and qualified intermediary requirements.
Contact us today to discuss how Duke Law Firm can help your bank retain or attract U.S. clientele and meet your due diligence requirements.
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