---
kind: "section"
citation: "31 C.F.R. § 1010.663"
title: "31"
number: "1010.663"
heading: "Special measures regarding Al-Huda Bank."
url: "https://uscodex.org/cfr/31/1010.663"
---

# §1010.663. Special measures regarding Al-Huda Bank.

- (a) **Definitions.** For purposes of this section, the following terms have the following meanings.
  - (1) **Al-Huda Bank.** The term “Al-Huda Bank” means all subsidiaries, branches, and offices of Al-Huda Bank operating as a bank in any jurisdiction.
  - (2) **Correspondent account.** The term “correspondent account” has the same meaning as provided in [§ 1010.605(c)(1)(ii)](/cfr/31/1010.605.md?p=c-1-ii).
  - (3) **Covered financial institution.** The term “covered financial institution” has the same meaning as provided in [§ 1010.605(e)(1)](/cfr/31/1010.605.md?p=e-1).
  - (4) **Foreign banking institution.** The term “foreign banking institution” means a bank organized under foreign law, or an agency, branch, or office located outside the United States of a bank. The term does not include an agent, agency, branch, or office within the United States of a bank organized under foreign law.
  - (5) **Subsidiary.** The term “subsidiary” means a company of which more than 50 percent of the voting stock or analogous equity interest is owned by another company.
- (b) **Prohibition on accounts and due diligence requirements for covered financial institutions—**
  - (1) **Prohibition on opening or maintaining correspondent accounts for Al-Huda Bank.** A covered financial institution shall not open or maintain in the United States a correspondent account for, or on behalf of, Al-Huda Bank.
  - (2) **Prohibition on processing transactions involving Al-Huda Bank.** A covered financial institution shall take reasonable steps not to process a transaction for the correspondent account in the United States of a foreign banking institution if such a transaction involves Al-Huda Bank.
  - (3) **Special due diligence of correspondent accounts to prohibit transactions.**
    - (i) A covered financial institution shall apply special due diligence to its foreign correspondent accounts that is reasonably designed to guard against their use to process transactions involving Al-Huda Bank. At a minimum, that special due diligence must include:
      - (A) Notifying those foreign correspondent account holders that the covered financial institution knows or has reason to believe provide services to Al-Huda Bank that such correspondents may not provide Al-Huda Bank with access to the correspondent account maintained at the covered financial institution; and
      - (B) Taking reasonable steps to identify any use of its foreign correspondent accounts by Al-Huda Bank, to the extent that such use can be determined from transactional records maintained in the covered financial institution's normal course of business.
    - (ii) A covered financial institution shall take a risk-based approach when deciding what, if any, other due diligence measures it reasonably must adopt to guard against the use of its foreign correspondent accounts to process transactions involving Al-Huda Bank.
    - (iii) A covered financial institution that knows or has reason to believe that a foreign bank's correspondent account has been or is being used to process transactions involving Al-Huda Bank shall take all appropriate steps to further investigate and prevent such access, including the notification of its correspondent account holder under [paragraph (b)(3)(i)(A)](#b-3-i-A) of this section and, where necessary, termination of the correspondent account.
  - (4) **Recordkeeping and reporting.**
    - (i) A covered financial institution is required to document its compliance with the notification requirement set forth in [paragraph (b)(3)(i)(A)](#b-3-i-A) of this section.
    - (ii) Nothing in this [paragraph (b)](#b) shall require a covered financial institution to report any information not otherwise required to be reported by law or regulation.

## Notes

### Amendments

[89 FR 55058, July 3, 2024]

### Authority

Authority: 12 U.S.C. 1829b and 1951-1959; 31 U.S.C. 5311-5314, 5316-5336; title III, sec. 314 Pub. L. 107-56, 115 Stat. 307; sec. 2006, Pub. L. 114-41, 129 Stat. 457; sec. 701 Pub. L. 114-74, 129 Stat. 599; sec. 6403, Pub. L. 116-283, 134 Stat. 3388.

### Source

Source: 75 FR 65812, Oct. 26, 2010, unless otherwise noted.

### Amendments

[89 FR 55058, July 3, 2024]