FCA Info Memo - Suspension of Control List Obligations

Informational Memorandum
Subject:	Suspension of Control List Obligations
Date of Memorandum:	07/29/2003
Expiration Date:
Office:	OE
Signed By:	Smith, Roland
FCA Contact Person:	Glenn, Thomas
Contact Phone:	703-883-4412
List of Attachments:	None

INFORMATIONAL MEMORANDUM

July 29, 2003

To: Chairman, Board of Directors

Chief Executive Officer
Each Farm Credit System Institution

From: Roland E. Smith, Chief Examiner

Office of Examination

Subject: Suspension of Control List Obligations

In response to the September 11, 2001 terrorist attacks and direction from Federal law enforcement authorities, the Farm Credit Administration (FCA) issued an Informational Memorandum (IM) on October 17, 2001, titled “Request Relating to Information Pertaining to the Terrorist Attacks.” The IM requested Farm Credit System (FCS) institutions to assist Federal law enforcement authorities in identifying and reporting suspected terrorist and money laundering activities. Listings of suspected individuals and entities, referred to as Control Lists, were periodically distributed to FCS institutions as well as other financial institutions. FCS institutions were requested to check their records to determine whether they had any type of business relationship with any of the individuals or entities contained on the Control Lists. The IM also provided reporting requirements for FCS institutions that had identified transactions or relationships with any of the individuals or entities shown on a Control List.

FCS institutions no longer need to continue the Control List process, which has been superseded by the USA PATRIOT Act. Furthermore, FCS institutions do not have any reporting responsibilities under the USA PATRIOT Act.

We do remind FCS institutions that they may still be asked to provide terrorist and money laundering information to Federal law enforcement authorities pursuant to a subpoena, which the institution would be required to comply with. FCA Regulation 618.8330 “Production of documents and testimony during litigation” provides additional guidance regarding the release of information. Additionally, your institution must still compare the accounts and transactions of your customers against the property, transactions and activities of terrorists identified by the Office of Foreign Assets Control (OFAC). If your institution has accounts or does business with any individual or entity on the OFAC list, you must block the accounts immediately and stop any business involvement with them. OFAC’s list changes frequently. You should regularly check the OFAC Web site at

http://www.ustreas.gov/ofac/index.html

to receive the most current OFAC information. You should contact OFAC at (202) 622-2480 when you identify a matter that is subject to the OFAC list.

If you have any questions about this Informational Memorandum, please call Tom Glenn, Special Examination and Supervision Division, Office of Examination, at (703) 883-4412, or correspond with him on the Internet at e-mail address

glennt@fca.gov,

or Senior Attorney Jane Virga, Office of General Counsel at (703) 883-4071, or at e-mail address

virgaj@fca.gov