21-47 U.S.banking offices abroad normally are permitted by the Federal Reserve System to engage in activities that are allowed in the foreign country even when such activities are not permitted in the U.S.

Question

Quizplus · Accepted Answer

This statement is true. U.S. banking offices abroad are subject to the laws and regulations of the country where they are located and are permitted to engage in activities that are allowed in that country, even if such activities are not permitted in the United States. However, they are still subject to certain U.S. laws and regulations, such as anti-money laundering and sanctions laws, regardless of their location.

21-47 USBanking Offices Abroad Normally Are Permitted by the Federal Reserve