Regulated affiliate.
Regulated affiliate.
(1) The term regulated affiliate means a foreign shell bank that:
(i) Is an affiliate of a depository institution, credit union, or foreign bank that maintains a physical presence in the United States or a foreign country, as applicable; and
(ii) Is subject to supervision by a banking authority in the country regulating such affiliated depository institution, credit union, or foreign bank.
(2) For purposes of this definition:
(i) Affiliate means a foreign bank that is controlled by, or is under common control with, a depository institution, credit union, or foreign bank.
(ii) Control means:
(A) Ownership, control, or power to vote 50 percent or more of any class of voting securities or other voting interests of another company; or
(B) Control in any manner the election of a majority of the directors (or individuals exercising similar functions) of another company.