Photo: Cosma via Adobe Stock Prosecutors' New Weapon in Cross-Border Investigations
The Anti-Money Laundering Act of 2020, which became law on Jan. 1, 2021, greatly expands the U.S. government's authority to subpoena records from foreign banks with no U.S. branches, and this expansion has the potential to dramatically impact future white-collar investigations. This article provides insight into how the recent legislation could affect cross-border, white-collar investigations, how foreign banks can (or should) respond if they receive these subpoenas, and what affirmative measures foreign banks can take to prevent coming under scrutiny themselves.
March 26, 2021 at 02:10 PM
8 minute read
U.S. prosecutors routinely seek bank records while conducting white-collar investigations and, historically, have needed to overcome significant hurdles to obtain records from foreign banks with no U.S. branches. The Patriot Act gave the U.S. Department of Treasury (Treasury) and U.S. Department of Justice (DOJ) the power to subpoena the U.S. correspondent bank of such a foreign bank, but only for records related to the correspondent account. Because foreign banks often have relationships with U.S. correspondent banks located in New York, prosecutors in New York frequently seek to use this subpoena power, notwithstanding its limits, while conducting cross-border, white-collar investigations.
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