USA PATRIOT Act Section 311 (2001)

Section 311 of the USA PATRIOT Act (2001), codified at 31 U.S.C. s 5318A, permits the Treasury Department's Financial Crimes Enforcement Network (FinCEN) to find that a foreign jurisdiction, institution, class of transactions or type of account is a "primary money laundering concern" and to impose one or more special measures. The strongest, fifth measure can prohibit or condition US correspondent or payable-through accounts. A finding alone does not automatically sever dollar access.

Provisions and procedure

The authority sits within the PATRIOT Act's anti-money-laundering title, treated at USA PATRIOT Act Title III (2001). After the required finding, Treasury may impose the five special measures in the sequence or combination it determines. The first four may be imposed by regulation, order or otherwise as permitted by law; the fifth may be imposed only by regulation. An order imposing one of the first four measures, other than an order under section 5326, must accompany a proposed rule and cannot continue beyond 120 days without a timely promulgated rule. 31 USC 5318A(a)(1)-(3).

The fifth measure can prohibit or impose conditions on opening or maintaining specified correspondent or payable-through accounts in the United States. Its direct legal scope is that account restriction, not an automatic prohibition on every dollar transaction worldwide. Wider Correspondent-account closure or Dollar-clearing denial depends on the particular measure and financial institutions' responses. 31 USC 5318A(b)(5).

Mechanism of effect

The formal legal effect binds US institutions, but the operational effect can extend further. Non-US banks may sever ties with the named entity rather than risk their own US access, the dynamic treated at Compliance cascade. The finding can also create reputational consequences before a final rule takes effect. Effects vary by action and can include loss of correspondent access, wider de-risking, capital flight and liquidity stress. Section 311 thereby operationalises the chokepoint effect at the level of an institution or jurisdiction.

Employment history

The defining employment was FinCEN's September 2005 finding against Banco Delta Asia, a Macau bank holding North Korean funds, treated at Banco Delta Asia Section 311 action (2005-2007). Macau authorities froze accounts containing about USD 25 million after the finding, while banks in several jurisdictions reduced North Korea-related exposure. The Commercial Bank of Syria was found to be of primary money laundering concern in 2004, with a correspondent prohibition imposed by final rule in 2006. Later actions reached Lebanese Canadian Bank and banks in Andorra and Latvia. FinCEN maintains an official register of Section 311 and Section 9714 actions. In Economic Kill Chain terms Section 311 is an execution-phase instrument whose effects may be amplified by private de-risking.

Effects and countermeasures

Section 311's power is parasitic on dollar centrality, and its limits track the erosion of that centrality. Targets and at-risk states respond by pre-positioning outside the dollar system: renminbi settlement through CIPS, barter and gold arrangements, and reliance on smaller banks with no US exposure. The scale of this adaptation, and whether repeated use of exclusion tools accelerates it, is contested; the debate is treated at De-dollarisation as backlash dynamic and Self-undermining arsenal.

Current status and evidentiary limits

Section 311, now codified at 31 USC 5318A, remained in force and amended on 30 July 2026. Its five special measures range from recordkeeping and beneficial-ownership information to conditions or prohibitions on correspondent accounts. Treasury must make the applicable finding and follow the procedure for the selected measure, including the statutory distinctions between orders and regulations, consultation and available exceptions. A finding alone does not automatically impose the fifth measure or terminate every correspondent account. Each named action needs a current notice, rule or withdrawal status.

See also

Financial Crimes Enforcement Network (FinCEN) · Correspondent-account closure · Banco Delta Asia Section 311 action (2005-2007) · USA PATRIOT Act Title III (2001) · Economic statecraft

Sources

• 31 USC 5318A.
• FinCEN section 311 special measures.
• 31 CFR part 1010.
• CRS anti-money-laundering overview.