If bank officer knows that new account customer does not read or understand English, how does bank properly disclose to the account holder the terms and conditions contained in their Account Disclosure Brochure? Are there any specific laws/regulations dealing with this subject?

The only reference I have is "§230.3 General disclosure requirements. (b) General. The disclosures shall reflect the terms of the legal obligation of the account agreement between the consumer and the depository institution. Disclosures may be made in languages other than English, provided the disclosures are available in English upon request.'

If the person is obviously not able to contract because of a language barrier, you may want to accept the risks of the account as is, contact counsel, get an interpreter or deny the request for an account.