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FinCrime Institute
Category: Sanctions Programs

Section 311 Special Measures

Also known as: Special Measures, Special Measures Under Section 311, Section 311 Actions, 311 Actions
Simply put

Section 311 Special Measures are actions the US Treasury can take against foreign jurisdictions, financial institutions, or types of transactions that it identifies as a 'primary money laundering concern.' These measures can require US banks to apply extra scrutiny, keep additional records, or even cut off correspondent banking relationships tied to the designated target. They are a tool intended to deter and disrupt suspected illicit finance, not a criminal finding against any party.

Formal definition

Special Measures under Section 311 of the USA PATRIOT Act authorize the Secretary of the Treasury (with authority exercised through FinCEN) to impose one or more of a defined range of measures on foreign jurisdictions, foreign financial institutions, classes of international transactions, or types of accounts found to be of primary money laundering concern. Implemented through rulemakings under 31 CFR Chapter X (Part 1010, Subpart F), the available measures generally range from enhanced recordkeeping and information-collection requirements and enhanced due diligence, up to prohibitions or conditions on the opening or maintaining of correspondent or payable-through accounts, including, as reflected in recent FinCEN designations, restrictions requiring covered US financial institutions to terminate affected correspondent relationships. The measures are adaptable and may be applied individually or in combination to target specific money laundering and terrorist financing risks. As a regulatory/administrative authority, a Section 311 designation imposes compliance obligations on covered US financial institutions and does not itself constitute a criminal determination against the designated target. Precise scope, obligations, and covered institutions depend on the specific rulemaking or order and should be confirmed against the applicable regulation.

Why it matters

Section 311 Special Measures represent one of the most consequential administrative tools in the US anti-money laundering framework because they can reach beyond a single institution to affect an entire foreign jurisdiction, a class of transactions, or a type of account identified as a primary money laundering concern. For covered US financial institutions, a designation can translate into concrete operational obligations, ranging from enhanced due diligence and recordkeeping through to prohibitions or conditions on correspondent or payable-through accounts, which in the most severe form can require terminating affected correspondent relationships. Because correspondent banking is a gateway to the US financial system, a designation targeting a foreign bank can effectively curtail that entity's access to US dollar clearing, giving Section 311 a disruptive and deterrent effect that extends well beyond formal compliance paperwork.

It is important to understand what a Section 311 designation is and is not. As a regulatory and administrative authority exercised by the Secretary of the Treasury through FinCEN, a designation imposes compliance obligations on covered US financial institutions; it does not itself constitute a criminal finding or conviction against the designated jurisdiction, institution, or party. Compliance professionals should treat the designation as a directive that reshapes their institution's obligations toward the target, not as proof of wrongdoing by any individual customer or counterparty.

FinCEN has continued to use this authority in recent years, including a June 2025 action in which it designated three Mexican financial institutions under a newer Section 311 framework, applying measures such as enhanced due diligence, recordkeeping requirements, and restrictions on correspondent banking relationships. Actions of this kind illustrate how the tool can be tailored to specific risks and how its practical impact depends on the terms of the particular rulemaking or order. Because scope and obligations vary by designation, institutions should always confirm the precise requirements against the applicable rule.

Who it's relevant to

BSA/AML compliance officers at US financial institutions
Compliance officers at covered US financial institutions must translate a Section 311 designation into concrete controls, which may include enhanced due diligence, additional recordkeeping and information collection, and, in the most restrictive cases, identifying and terminating correspondent or payable-through accounts linked to the designated target. Because obligations differ by rulemaking, they should confirm the exact scope and covered-institution definitions against the specific order.
Correspondent banking and payable-through account teams
Teams responsible for correspondent and payable-through relationships are directly affected, since Section 311 measures can condition, restrict, or prohibit the opening or maintaining of such accounts tied to a designated jurisdiction or institution. They need processes to detect indirect exposure through nested or downstream relationships and to act on termination requirements where a rulemaking imposes them.
Financial institutions with exposure to designated jurisdictions or entities
Institutions doing business in or through jurisdictions, banks, transaction types, or account categories that could become targets of a designation have an interest in monitoring FinCEN rulemakings and orders, including recent actions such as the June 2025 designation of three Mexican financial institutions, to assess and mitigate potential access and relationship impacts.
Legal, risk, and sanctions/financial crime advisors
Legal and risk advisors help institutions interpret the specific terms of a Section 311 rulemaking under 31 CFR Chapter X, distinguish administrative compliance obligations from criminal determinations, and advise on the operational consequences of the range of available measures, from enhanced due diligence through to correspondent account prohibitions.

Inside Section 311 Special Measures

Statutory Authority
Section 311 of the USA PATRIOT Act amended the US Bank Secrecy Act to authorize the Secretary of the Treasury, acting through FinCEN, to designate a foreign jurisdiction, foreign financial institution, class of transaction, or type of account as being of 'primary money laundering concern' and to impose one or more special measures in response.
Primary Money Laundering Concern Finding
A prerequisite determination in which Treasury/FinCEN finds that the target presents a primary money laundering concern. This finding is an administrative designation and does not itself constitute a criminal adjudication of the designated party or its customers.
The Five Special Measures
The statute enumerates measures ranging from enhanced recordkeeping and reporting obligations to, in the most severe case, prohibiting or conditioning US financial institutions from opening or maintaining correspondent or payable-through accounts for the designated target. The measures can be applied individually or in combination and vary in severity.
Scope of Targets
Special measures may be directed at a foreign jurisdiction, one or more foreign financial institutions, one or more classes of international transactions, or one or more types of accounts. This scope is generally aimed at foreign, cross-border activity rather than purely domestic entities.
Rulemaking and Notice Process
Certain special measures, particularly the correspondent account prohibition, are typically implemented through notice-and-comment rulemaking, while others may be imposed by order. The specific procedural path depends on which measure is invoked and should be confirmed against the applicable FinCEN action.
Obliged Entity Impact
The measures create compliance obligations for US financial institutions (such as banks and other covered institutions under the BSA), which may need to restrict correspondent relationships, apply enhanced due diligence, or take steps to prevent indirect access by the designated target through nested or intermediary relationships.

Common questions

Answers to the questions practitioners most commonly ask about Section 311 Special Measures.

Does a Section 311 special measure freeze the assets of the designated bank or jurisdiction?
No. Section 311 special measures are not asset-freezing or blocking sanctions. Section 311 of the USA PATRIOT Act authorizes the US Treasury, acting through FinCEN, to impose one or more of a defined set of special measures against a foreign jurisdiction, financial institution, class of transaction, or type of account identified as a 'primary money laundering concern.' These measures can range from enhanced recordkeeping and information-collection requirements to the most severe, prohibiting or conditioning the opening or maintaining of correspondent or payable-through accounts. That prohibition on correspondent relationships is distinct from an asset freeze, which is generally administered under separate sanctions authorities (for example, OFAC programs). The precise reach and mechanics should be confirmed against the specific rulemaking and the applicable statutory text.
Is a Section 311 designation the same as being placed on an OFAC sanctions list?
No, though the two are sometimes conflated. Section 311 special measures are administered by FinCEN under the Bank Secrecy Act framework and target money laundering or illicit finance concerns through measures such as correspondent account restrictions and information requirements. OFAC sanctions are administered under separate legal authorities and typically involve blocking property and prohibiting a broad range of dealings with designated persons. The two regimes can apply to the same target in some cases, but they arise from different statutes, involve different obligations for US financial institutions, and should be analyzed separately. Institutions should not treat a Section 311 action and an OFAC listing as interchangeable when scoping their compliance response.
Which institutions are subject to Section 311 special measures, and what must they do when a measure is imposed?
The obligations generally fall on covered US financial institutions as defined for the relevant measure, which may include banks, broker-dealers, and other entities subject to the Bank Secrecy Act. The specific duties depend on which of the special measures FinCEN imposes, these can include additional recordkeeping, collecting and reporting specified information, obtaining information about beneficial ownership or account holders, or restricting or prohibiting certain correspondent or payable-through accounts. Because each measure carries different requirements and effective dates, institutions should read the operative rule or order carefully to determine exactly which obligations apply to them and by when.
How should an institution operationalize a special measure that restricts correspondent accounts?
Where a measure prohibits or conditions correspondent or payable-through accounts, an institution generally needs to identify whether it maintains any such accounts for the designated target and, critically, whether it may be providing indirect correspondent access, for example, processing transactions for the target through a third-party or nested relationship. Operationally this typically involves reviewing correspondent relationships, applying reasonable due diligence to guard against indirect use, and implementing any transaction-monitoring or blocking logic consistent with the terms of the rule. The exact steps depend on the specific conditions imposed, which should be confirmed against the operative FinCEN action.
What is the relationship between the notice of proposed rulemaking and when compliance obligations take effect?
FinCEN commonly proceeds by issuing a notice of proposed rulemaking that identifies the primary money laundering concern and the proposed special measures, followed by a final rule or order. Compliance obligations generally attach when a measure becomes effective under the terms of the operative instrument, not merely upon proposal. Because timing and the precise scope can change between proposal and final action, institutions should track the specific FinCEN issuance and confirm effective dates and requirements against the final published text rather than assuming obligations apply from the proposal stage.
Does receiving or acting on a Section 311 measure require filing a Suspicious Activity Report?
A Section 311 special measure and SAR filing are separate obligations. Complying with a special measure, such as restricting a correspondent account or collecting specified information, does not by itself constitute a SAR filing, nor does the existence of a Section 311 action automatically establish that any particular customer or transaction is suspicious. That said, information surfaced while implementing a measure may, depending on the facts, meet a covered institution's independent suspicious activity reporting thresholds under the Bank Secrecy Act. Institutions should assess reporting obligations on their own terms and should not treat a Section 311 designation as proof of wrongdoing by any specific customer.

Common misconceptions

A Section 311 designation is a criminal finding that the target has committed money laundering.
A finding of 'primary money laundering concern' is an administrative/regulatory determination by Treasury and FinCEN, not a criminal conviction or adjudication. It triggers compliance measures but does not itself establish criminal wrongdoing by the designated party or its customers.
Section 311 is the same as OFAC economic sanctions.
Section 311 special measures arise under the Bank Secrecy Act framework administered by FinCEN and generally focus on access to the US financial system, particularly correspondent and payable-through accounts. OFAC sanctions operate under separate legal authorities and asset-blocking mechanisms. The two regimes are distinct in source, administering body, and legal effect, though a target may be subject to both.
A Section 311 action always means a full ban on the target.
The statute provides five special measures that range in severity, and Treasury may impose one or several. Only the most severe measure involves prohibiting or conditioning correspondent or payable-through accounts; other measures involve enhanced recordkeeping, information collection, or reporting rather than an outright prohibition.

Best practices

Monitor FinCEN notices, proposed rules, and final rules for Section 311 actions, and integrate designated targets into screening and correspondent-banking risk assessments as they are published.
Determine precisely which of the five special measures applies to a given designation, since the resulting obligations differ significantly between enhanced recordkeeping/reporting measures and a correspondent account prohibition.
Assess exposure not only to direct relationships with a designated target but also to indirect or nested access through intermediary and correspondent relationships, and take steps to prevent prohibited indirect access where a prohibition applies.
Maintain clear internal documentation distinguishing a Section 311 administrative designation from a criminal finding, so that customer and counterparty decisions are framed as risk-based compliance measures rather than determinations of guilt.
Coordinate Section 311 controls with, but keep them separate from, OFAC sanctions screening, recognizing that the two regimes derive from different authorities and produce different legal effects.
Confirm exact procedural requirements, effective dates, and the specific terms of any measure against the applicable FinCEN order or rule rather than relying on general summaries, and update procedures as designations are imposed or withdrawn.