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ough account—a payable-through account is one opened by a foreign institution at a US bank and allows the foreign institution’s customers to conduct business as though they had a US bank account—and obtain information equal to that obtained if the customer was banking the United States. The Secretary can also require domestic companies operating correspondent accounts—accounts established to make transactions on behalf of a foreign institution—for foreign financial institutions to get the same information as those operating payable-through accounts. The last special measure prohibits or places conditions upon the creation or running of correspondent and payable-through accounts in the United States that are connected to foreign institutions in money laundering areas. 311 also states that the Secretary of the Treasury must confer with the Secretary of State and the Attorney General prior to implementing any of these measures. Additionally, before using any of the special measures, the Secretary of the Treasury must take into account jurisdictional factors (e.g. “evidence that organized criminal groups, international terrorists, or both, have transacted business in that jurisdiction”), institutional factors (e.g. how much of the foreign financial institution’s business is legitimate), and any others deemed relevant. 311 stipulates that the Secretary has at most ten days before notifying the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate that any measure has taken place. [xiv]

Sections 312 and 313 also require banks to keep more rigorous records in an attempt to deter or prevent money laundering. 312 requires that banks operating, in any way, a private or correspondent account for a foreign person or representative of a foreigner in the United States to do “due diligence” in order to detect instances of money laundering. Due diligence for banks is defined as at least three steps. Any domestic bank operating correspondent accounts on behalf of a foreign institution must at least (1) determine who owns private shares of the foreign financial institution, (2) be especially vigilant with respect to money laundering for the foreign account, and (3) find out if the foreign institution maintains correspondent accounts for any other foreign ones and repeat this process for those institutions to help ensure that they don’t participate in money laundering. Due diligence for foreign institutions especially applies if the correspondent account is opened by a foreign bank that has an offshore banking license or has a banking license from a country thought to be involved with money laundering. For a foreign person or representative of a foreign person, due diligence involves finding out the identity of the “nominal and beneficial owners,” where the funds being deposited originate from, and to report any suspicious activity. Additional examination of the account is required if it is opened by a foreign political figure, family of a foreign political figure, or close associate of a foreign political figure to detect instances of corruption. 313 prevents domestic banks from maintaining correspondent accounts with foreign banks that don’t have a physical building—this provision goes into effect sixty days after the passage of the PATRIOT Act. Banks are also required to check so that foreign shell banks aren’t able to open correspondent accounts via o