2021 NDAA Subjects More Foreign Bank Records to Subpoena
On January 1, 2021, Congress enacted the National Defense Authorization Act, which significantly expands subpoena power related to correspondent accounts previously provided under the PATRIOT Act. The amendment permits the Department of Justice and Department of Treasury to subpoena foreign-located bank records for any investigation under federal criminal law, as long as the foreign bank maintains a US correspondent account and without regard to whether the correspondent account was used as part of the potential violation of US law. The new provisions present serious implications for foreign banks that maintain a correspondent account in the United States and may prompt legal challenges on constitutional grounds.
To learn more about the new provisions and their implications for the financial services industry, read this Advisory.
*Yiqing Shi contributed to the Advisory. Ms. Shi is a graduate of Columbia Law School and is employed at Arnold & Porter's New York office. She is not admitted to the practice of law in New York.
© Arnold & Porter Kaye Scholer LLP 2021 All Rights Reserved. This blog post is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.