Compliance Bulletin

New Law Heightens Scrutiny on Iran-related Accounts
September 12, 2013

Under AB 978 banks in California will be required to take measures to ensure they do not open or maintain correspondent or payable-through accounts by foreign financial institutions where those accounts facilitate certain prohibited activities related to Iran.The bill is intended to give authority to the Division of Financial Institutions to examine for and, if necessary, bring an action against financial institutions for not complying with a 2010 federal law.The prohibited activities include development of weapons of mass destruction, supporting terrorist organizations, facilitating transactions by persons subject to Iran-related UN sanctions, money laundering that support these activities, and activities related to Iran’s Revolutionary Guards. See CBA’s Regulatory Compliance Bulletin.

 

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