Abank organized under foreign lawand located outside of the U.

TheUSA PATRIOT Act Section 313 & 319(b)placesstrict requirements on foreign correspondent banking relationshipsto prevent money laundering.

Option A (Correct):Theforeign bank must disclose its ownership structureto identifyultimate beneficial owners (UBOs).

Option C (Correct):Theforeign bank must certify that it maintains a physical presencein a regulated jurisdiction.

Option E (Correct):Theforeign bank must not allow shell banks to use its U.S. correspondent accounts.

Why Other Options Are Incorrect:

Option B (Incorrect):Thecertification does not specifically exclude PEPs, butPEPs require enhanced due diligence (EDD).

Option D (Incorrect):The foreign bankmay operate in multiple jurisdictions, but it must be regulated where it has a presence.

Key Compliance Measures for Correspondent Banking:

Conduct EDD on foreign bank relationships.

Ensure correspondent banks do not facilitate shell banks.

Monitor transactions for money laundering and terrorist financing risks.