Anti-Money Laundering Act of 2020 Significantly Expands Reach of Subpoenas of Non-U.S. Banks That Have U.S. Correspondent Accounts

Non-U.S. banks that maintain correspondent accounts in the United States face the prospect of significantly broader subpoenas from the Department of Justice and the Department of Treasury as a result of the newly passed Anti-Money Laundering Act of 2020 (“AMLA”), which became law on January 1, 2021 as part of the National Defense Authorization Act of 2021. These new subpoenas represent a major expansion of the DOJ and Treasury’s investigative reach, but they are not without limitations.  This client alert examines the expanded subpoena authority under the AMLA, as well as potential ways in which non-U.S. banks can seek to limit or quash these subpoenas.