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Foreign
Branches:
Branches of U.S. banks in foreign countries or branches of foreign
banks in the United States. By reciprocal agreement among central
banks, foreign branches are subject to the banking laws and regulations of the
host country.
The International Banking Act of 1978, for example, requires
U.S. offices of foreign banks to maintain reserve accounts at the Federal
Reserve... and meet federal regulations covering bank holding companies. Fitch, Thomas P., Barron's Business Guides
Dictionary of Banking Terms, 3rd Edition, ©1997,
page 196.
Unlike an embassy, the foreign branch of a bank or other company is not "foreign
soil" but a division of a regulated company (a financial institution in
this case) that is located in a country other than that of the home
office. One cannot walk into a U.S. branch of say, Credit Suisse and ask
to send a S.W.I.F.T.,
"conditional" or otherwise. One can purchase a LETTER
OF CREDIT or other banking instrument at the U.S. branch of a foreign bank,
provided that all terms and conditions are met for such a purchase.
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