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Executing dealers that conduct transactions for prime brokerage clients in over-the-counter foreign exchange and derivatives markets are not required to apply federal due diligence rules for correspondent accounts to those relationships. Such interactions don't constitute establishing or maintaining a correspondent account, the Treasury Department's Financial Crimes Enforcement Network said in guidance issued Wednesday. Section 312 of the Patriot Act requires certain due diligence provisions for correspondent accounts. The section defines correspondent accounts to include only "formal relationships," said FinCEN. Interactions between executing dealers and prime brokerage clients are usually limited to telephone or electronic trading systems, said FinCEN, and the...