News

Compliance officers at foreign-headquartered banks expect to receive more federal subpoenas seeking details on their overseas operations in the months ahead after the U.S. Congress expanded the scope of an obscure provision of the Patriot Act at the beginning of the year. Section 5318(k) of the Patriot Act gives the Justice Department authority to compel financial institutions in the U.S. to submit any records tied to an investigation involving any foreign bank that holds a U.S. correspondent account, even if the data is held outside the country. Lenders who reject the requests risk expulsion from the U.S. financial system. Congress...