Record Settlements, Russian Tanks and Legal Weed: AML s Year-in-Review December 31, 2014 By Colby Adams, Kira Zalan and Irene Madongo
|
|
- Sarah Patterson
- 8 years ago
- Views:
Transcription
1 Record Settlements, Russian Tanks and Legal Weed: AML s Year-in-Review December 31, 2014 By Colby Adams, Kira Zalan and Irene Madongo This time last December, one might reasonably have expected that 2014 would be a year of modest changes for the anti-money laundering and sanctions compliance sector. Then came JPMorgan Chase, BNP Paribas and a convoy of Russian tanks to quash that notion. That the year would unfold differently than 2013, which saw a sharp drop in compliance outlays paid by banks, was signaled as early as Jan. 7, when the U.S. Justice Department and Office of the Comptroller of the Currency (OCC) disclosed a $2.05 billion settlement with JPMorgan Chase for its failure to report suspicious transactions linked to Bernard Madoff s hedge fund. The settlement, which also faulted the bank for not communicating its suspicions about Madoff across its affiliates, eclipsed a then-record $1.9 billion deal reached with HSBC in December 2012 for not vetting trillions of dollars in transactions potentially tied to drug traffickers. By the end of 2014, banks had paid than fourfold of JPMorgan s total and pleaded guilty to criminal wrongdoing. The BNP Paribas case was surprising because not only was it a stunning amount of money and it involved a guilty plea but also because, at the end of the day, it wasn t viewed as that big of a deal in terms of this string of wire-stripping cases we ve seen, said Laura Billings, a white-collar criminal defense attorney with Miller & Chevalier in Washington, D.C. The French bank pleaded guilty in June to a one-count information and agreed to pay a record $8.9 billion and suspend certain dollar-clearing services for knowingly allowing its clients to bypass U.S. sanctions targeting four nations. The settlement reflected the fact that the bank resisted negotiations and continued to obscure wire data after U.S. officials communicated their concerns, sources told ACAMS moneylaundering.com. BNP Paribas wasn t alone in pleading guilty. In May, Credit Suisse put ink to a $2.6 billion settlement with the United States for its role in helping wealthy Americans hide taxable assets abroad. One addendum to the deal: a one-count information conviction. The penalties against JPMorgan Chase, Credit Suisse and BNP Paribas remain the largest ever levied against banks for violations of anti-money laundering (AML), tax evasion and sanctions violations, respectively.
2 Restrictions and recidivists Banks that entered into compliance settlements in 2014 also agreed to a raft of restrictions not usually appended to such deals. The prohibitions controls on U.S. dollar-clearing services, restrictions on opening correspondent accounts and data-sharing requirements for cross-border wires came as part of agreements with the Justice Department and New York State Department of Financial Services (NYSDFS), an agency that made waves in the industry over the course of the year. But in standalone fines, NYSDFS made equally arduous demands, ordering Standard Chartered Bank (SCB) in August to cease U.S. dollar-clearing transactions and require its affiliate operations to obtain and share information on payees and payers of wires valued at $3,000 or. The bank also paid $300 million for flaws in its transaction monitoring system. In a $315 million settlement disclosed in November, NYSDFS ordered Bank of Tokyo Mitsubishi (BTMU) to relocate its U.S. AML and sanctions compliance teams to New York and follow the direction of an agency-appointed monitor for 18 months. The agency fined the institution for pressuring PricewaterhouseCoopers to amend a compliance report. Notably, both settlements weren t the first for the banks or the regulator. Ahead of SCB s $327 million settlement with federal officials in December 2012 for banking high-risk clients, the financial institution paid New York $340 million the previous August. BTMU previously paid NYSDFS $250 million in June 2013 for sanctions violations. Eye on the individual While U.S. regulators have long issued the occasional disciplinary action against bankers and broker agents, and though the number of such penalties handed down in 2014 fell below the 2013 total, federal and state officials made individuals accountable than ever for poor AML compliance controls. For one, the Justice Department, Federal Reserve Board and NYSDFS named nearly a dozen individuals to be banned from certain positions or fired outright for their purported roles in compliance mismanagement at BNP Paribas, BTMU, Credit Suisse and Standard Chartered Bank. The unusual steps followed public warnings by regulatory officials earlier in the year.
3 The warnings, coupled with a $25,000 fine by the Financial Industry Regulatory Authority against former Brown Brothers Harriman compliance chief Harold Crawford in February, prompted others in the industry to question whether they should obtain insurance. By the end of 2014, banks paid than [a] fourfold of JPMorgan s [January $2.05 billion settlement for AML violations] and pleaded guilty to criminal wrongdoing. Individual liability I think that issue really came about substantially in 2014, said John Wagner, a former director of AML and Bank Secrecy Act compliance with the OCC who retired earlier this year. U.S. officials are looking at this but they re taking a measured approach because, obviously, going after an individual has an impact on that individual, he said. Those potential effects were perhaps most on display earlier this month, when the U.S. Treasury Department s Financial Crimes Enforcement Network (FinCEN) fined Thomas Haider, the former chief compliance officer of MoneyGram, $1 million for his alleged role in ignoring signs of fraud by employees and customers. The lawsuit has definitely had a chilling effect, certainly on people wanting to do compliance, said Robert Rowe, a vice president with the American Bankers Association. There s just so much an individual can control within the organization, and being held liable for things you can t control is causing a lot of compliance officers to get very nervous. De-risking takes center stage In response to regulatory pressure, financial institutions in the United States and abroad further distanced themselves from high-risk clients in 2014 a trend that seemed to reach a breaking point of sorts. After years of asking banks to be diligent, regulators asked them to take on risk. In July, the Federal Deposit Insurance Corp. rescinded a list of high-risk merchant customers that work with third-party payment processors after banks had used the list as a reason to turn away the businesses in the sector. In November, Treasury Department officials asked banks not to deny services to money services businesses outright. The steps seemed to do little to mollify concerns that maintaining such relationships would be too costly and too risky for most financial institutions.
4 Broadly, financial institutions are being forced to focus on the wrong thing, said Stephen Barclay, a British member of parliament who previously headed AML and sanctions compliance for Barclays Bank. They are being forced to focus on regulatory compliance and spend millions of pounds on capturing the low-risk customer rather than targeting their resources and efforts on a much smaller number of high-risk, high-value individuals, he said. Lift and impose For a year that was supposed to see an easing of sanctions against Iran, 2014 proved one of the most challenging in recent memory for banks charged with implementing economic embargoes. For one, there was Russia. Following the country s incursion into Ukraine s Crimean Peninsula in February and its subsequent though oft-denied support of Ukrainian separatists, U.S. and EU officials imposed a series of sanctions measures targeting Russian President Vladimir Putin s inner circle. But the sanctions didn t just follow the usual model of simply asking banks to identify and block related funds. They also proscribed certain energy-related projects and imposed restrictions on underwriting equity or long-term debt for Russian companies variations that have proven difficult to implement and which likely hint at innovations to come. For a year that was supposed to see an easing of sanctions 2014 proved one of the most challenging in recent memory for banks charged with implementing economic embargoes. The fall of the Ukrainian government in February, shortly before Russian troops arrived in Crimea, also kept U.S. officials busy looking for money looted by former Ukraine President Viktor Yanukovich, according to Deborah LaPrevotte, the program manager of the FBI s kleptocracy program. We didn t see that coming until Ukraine fell and 68 officials fled, she said. We [were] actually looking at Alexander Yanukovich, the son of the president, prior to his regime falling and so actually we [were] in a good position to already have a little bit of background knowledge when Viktor Yanukovich and his upper echelon fled the country.
5 As world powers negotiated an ongoing and recently extended joint plan of action that could lead to a permanent reduction in Iran sanctions, European financial institutions and other companies explored the possibility of doing business with the Islamic Republic. But Cuba sanctions may be the first to go, White House officials indicated this month. Rules and warnings In June, U.S. financial institutions got their first look at a potential customer due diligence rule that would require them to identify individuals holding a stake of 25 percent or in corporate accounts. FinCEN s proposed rule excluded language that would have tasked financial institutions with verifying the data as well. The advancement of the so-called beneficial ownership rule came in the context of efforts by the Financial Action Task Force (FATF) and European Union to shine a spotlight on corporate owners. The EU said this month that a plan to require member-states to create registers of corporate owners wouldn t mandate that such data be widely available to the public. In controversial guidance issued in February, FinCEN also outlined how it expects banks to treat accounts held on behalf of state-sanctioned marijuana businesses, calling on compliance officers to distinguish transactions on behalf of licensed businesses from those not approved under state laws. The guidance drew criticism from bankers and lawmakers, who pointed out that the cannabis remains a controlled substance under federal laws. By the year s end, bankers in Colorado said that conflicting state and federal laws on marijuana were creating compliance headaches. FinCEN also drew criticism in 2014 but for reasons unrelated to its mission: U.S. officials launched a probe into FinCEN s hiring practices following complaints that the bureau may have violated federal rules on employing military veterans. On multiple occasions, Republican lawmaker called on FinCEN to fully respond to the allegations. Taxes and terrorism Global tax enforcement continued to be an issue for international banks. In October, 51 nations agreed to a plan by the Organisation for Economic Cooperation and Development to automatically exchange tax-related data an initiative that will mean changes for bank due diligence procedures much as the passage of a deadline for the U.S. Foreign Account Tax Compliance Act did earlier this year.
6 Seven months after the Credit Suisse settlement, Bank Leumi le-israel agreed to pay U.S. prosecutors and regulators $400 million for helping wealthy Americans evade taxes through the use of shell corporations and funds transfers disguised as business loans. The agreement barred bank divisions in Switzerland and Luxembourg from providing banking and investment services to American clients. The IRS will continue to track the funds that are flowing, we believe, outside of Switzerland, said Richard Weber, the head of the agency s Criminal Investigations division, who also noted that the agency had racked up the settlements despite working with a historically low budget. We re at the lowest staffing that we ve been since the 1970s, and if the trend continues [over the next few years] we re going to have 36 percent fewer agents than we did 20 years ago, and that s just not sustainable, Weber said. A U.S. court ruling in September reaffirmed that, as with tax evasion, banks can be held responsible for their clients actions abroad. A federal jury found Arab Bank civilly liable for deaths caused by terrorist groups that had purportedly raised money and offered rewards programs to the families of suicide bombers through its accounts. The ruling is the highest-profile of its kind from a bevy of lawsuits attempting to penalize banks under the U.S. Anti-Terrorism Act. Bitcoin s rapid development The year proved a mixed bag for the virtual currency platform Bitcoin and competitors. As the price of bitcoins declined over the year, U.S. and U.K. regulators signaled a willingness to accept the cryptocurrency, albeit with strings. In July, NYSDFS disclosed plans to license virtual currency businesses that verify the identities of their accountholders, maintain know-your-customer profiles, screen transactions against sanctions lists and report suspicious activity, among other steps. The regulator has since said it could modestly tweak the requirements. In August, British officials said they would soon examine the promise and perils of alternative payment services, including digital currencies, as part of a governmental promotion of financial technology. Law enforcement agents also took a closer look at the technology over the year, according to Bryan Smith, the unit chief of the FBI s Financial Institution Fraud Unit.
7 We are doing a lot of work in that arena, both on our cyber side as well as criminal, said Smith. We've seen a rapid development of that technology, bringing new intermediaries of, and variations of, virtual currency into the equation that we have to learn to understand potential impacts on funds movements. Global cooperation Under the guidance of FATF, nations tightened their AML and counterterrorist financing controls in 2014 as the intergovernmental group launched its fourth round of mutual evaluations. FATF released the first results of those examinations, including its first-ever effectiveness score, in December. Governments also worked better together on cross-border investigations, according to Daniel Levy, a principal with McKool Smith and a former senior trial counsel with the U.S. Attorney's Office for the Southern District of New York. Not only are prosecutors offices coordinating with each other, but they are picking up on similar conduct investigated and oftentimes resolved with another prosecutor, said Levy. For example, French authorities have initiated an investigation of UBS for tax-related conduct several years after UBS resolved similar issues with the U.S. Cooperation between Mexico and the United States also improved after a lull that followed the inauguration of Mexican President Enrique Peña Nieto, sources told ACAMS moneylaundering.com. But Mexico s rollback of restrictions on U.S. dollar deposits and the possibility that at least one U.S. bank in the Latin American country may have been infiltrated by cartel members worried AML professionals. For Britain s AML sector, efforts by FATF and the EU to clamp down on money laundering have coincided with political and legislative cycles to focus attention on fighting the crime, according to Matt Allen, the director of financial crime for the British Bankers Association. Perhaps fundamentally, there has been a realization that financial crime has changed dramatically, he said. The types of criminal activities, the way financial services work has dramatically changed, and we need a legislative framework that is up to date and that is something that we support.
Presented By Greg Baldwin
ANTI-MONEY LAUNDERING COMPLIANCE OFFICER TRAINING Presented By Greg Baldwin THE ANTI-MONEY LAUNDERING COMPLIANCE OFFICER We re going to cover: Basis for the requirement to have a Compliance Officer The
More informationAnti-Money Laundering and Economic Sanctions
Anti-Money Laundering and Economic Sanctions 1 Meet Your Instructor Denise Whiting, CAMS Manager, Risk Advisory, Charlotte Uptown 14 years experience in the financial services industry Extensive knowledge
More informationThe proposed legislation would end the all too frequent use of loopholes in State incorporation laws to hide money.
Testimony of Jack A. Blum, Esq. before The United States Senate Committee on Homeland Security and Governmental Affairs on S.569, the Incorporation Transparency and Law Enforcement Assistance Act November
More informationFact Sheet for Financial Crimes Enforcement Network Geographic Targeting Orders for Manhattan, N.Y., and Miami-Dade County, Fla.
Fact Sheet for Financial Crimes Enforcement Network Geographic Targeting Orders for Manhattan, N.Y., and Miami-Dade County, Fla. On January 13, 2016, the Financial Crimes Enforcement Network (FinCEN),
More informationAML & Mortgage Fraud Compliance Program v. 08.2013 ANTI-MONEY LAUNDERING & MORTGAGE FRAUD COMPLIANCE PROGRAM
ANTI-MONEY LAUNDERING & MORTGAGE FRAUD COMPLIANCE PROGRAM Version: 2.0 dated 08.2013 TABLE OF CONTENTS AML & Mortgage Fraud Compliance Program 1.0 PURPOSE AND SCOPE... 3 2.0 APPLICABLE REGULATIONS AND
More informationSTATEMENT BY SENATOR CARL LEVIN (D-MICH) BEFORE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS FAILURE TO IDENTIFY COMPANY OWNERS IMPEDES LAW ENFORCEMENT
STATEMENT BY SENATOR CARL LEVIN (D-MICH) BEFORE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS ON FAILURE TO IDENTIFY COMPANY OWNERS IMPEDES LAW ENFORCEMENT November 14, 2006 In 2004, the United States was home
More informationDEVELOPING AN AML (ANTI-MONEY LAUNDERING) PROGRAM:
DEVELOPING AN AML (ANTI-MONEY LAUNDERING) PROGRAM: Although the Department of the Treasury has not issued specific rules for hedge funds and hedge fund managers, hedge fund managers should adopt and implement
More informationJENNIFER SHASKY CALVERY DIRECTOR FINANCIAL CRIMES ENFORCEMENT NETWORK ABA/ABA MONEY LAUNDERING ENFORCEMENT CONFERENCE NOVEMBER 16, 2015 WASHINGTON, DC
JENNIFER SHASKY CALVERY DIRECTOR FINANCIAL CRIMES ENFORCEMENT NETWORK ABA/ABA MONEY LAUNDERING ENFORCEMENT CONFERENCE NOVEMBER 16, 2015 WASHINGTON, DC Good afternoon. Thank you to the American Bankers
More informationISSUE 3. Enforcement Actions for U.S. Sanctions Violations Offer Lessons for Compliance
ISSUE 3 Enforcement Actions for U.S. Sanctions Violations Offer Lessons for Compliance Contents LEGAL BASIS FOR U.S. SANCTIONS ENFORCEMENT...3 SIGNIFICANT ENFORCEMENT CASES... 4 ABN AMRO, N.V./Royal Bank
More informationANTI-MONEY LAUNDERING COMPLIANCE GUIDE
LATIN AMERICA AND THE CARIBBEAN ANTI-MONEY LAUNDERING COMPLIANCE GUIDE REPORTING REQUIREMENTS RECORDKEEPING EMPLOYEE TRAINING PREVENTION OF TERRORISM FINANCING COMPLIANCE WITH LOCAL REGULATIONS COMPLIANCE
More informationAnti-Money Laundering (AML) & Combating Financing Terrorism (CFT)
Anti-Money Laundering (AML) & Combating Financing Terrorism (CFT) Auditing the complex, unclear, and changing regulatory requirements and expectations Basics of Money Laundering Money laundering is the
More informationWolfsberg Anti-Money Laundering Principles for Correspondent Banking
Wolfsberg Anti-Money Laundering Principles for Correspondent Banking 1 Preamble The Wolfsberg Group of International Financial Institutions 1 has agreed that these Principles constitute global guidance
More informationSTEPTOE & JOHNSON LLP
STEPTOE & JOHNSON LLP The USA PATRIOT Act and Financial Institutions Who does it cover? What does it require? And what does it mean for your Company? On October 26, 2001, in the wake of the September 11
More informationCurrent Anti-Money Laundering Enforcement Trends
Current Anti-Money Laundering Enforcement Trends Michael Volkov, Shareholder 240.505.1992 michael.volkov@leclairryan.com Carlos Ortiz, Shareholder 973.491.3365 carlos.ortiz@leclairryan.com Today s presenters
More informationNotice of Finding That Banca Privada d Andorra Is a Financial Institution of Primary Money Laundering Concern
(BILLINGCODE: 4810-02) DEPARTMENT OF THE TREASURY Notice of Finding That Banca Privada d Andorra Is a Financial Institution of Primary Money Laundering Concern AGENCY: Financial Crimes Enforcement Network
More informationROGERS JOSEPH O'DONNELL
415.956.2828 (t) Robert Dollar Building 415.956.6457 (f) 311 California Street, 10th Flr. San Francisco CA 94104 ROGERS JOSEPH O'DONNELL 202.777.8950 (t) Victor Building 202.347.8429 (f) 750 9th Street,
More informationMERCHANTS EXPRESS MONEY ORDER COMPANY, INC. (MEMO) AGENT ANTI-MONEY LAUNDERING COMPLIANCE GUIDE
MERCHANTS EXPRESS MONEY ORDER COMPANY, INC. (MEMO) AGENT ANTI-MONEY LAUNDERING COMPLIANCE GUIDE Table of Contents WHY YOU AND YOUR EMPLOYEES SHOULD READ AND UNDERSTAND THIS GUIDE...1 WHY THIS GUIDE IS
More informationBackground. FIN-2010-G001 Issued: March 5, 2010 Subject: Guidance on Obtaining and Retaining Beneficial Ownership Information
Joint Release Financial Crimes Enforcement Network Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation National Credit Union Administration Office of the Comptroller
More informationAnti-Money Laundering Issues for Securities Transfer Agents
Anti-Money Laundering Issues for Securities Transfer Agents Stanley V. Ragalevsky, Esq. Kirkpatrick & Lockhart LLP 75 State Street Boston, MA 02110 (617) 261-3100 Caveat This outline and the oral presentation
More informationAnti Money Laundering & Counter Terrorist Financing Training. Henry M. Komansky
Anti Money Laundering & Counter Terrorist Financing Training Henry M. Komansky April 30, 2015 1 Henry M. Komansky Chief Compliance Officer Chief Compliance Officer at Clarien Bank Limited 10 Years of compliance
More informationBank Secrecy Act, Anti-Money Laundering, and Office of Foreign Assets Control
Bank Secrecy Act, Anti-Money Laundering, and Office of Foreign Assets Control Overview The Bank Secrecy Act (BSA) was created in 1970 to assist in criminal, tax, and regulatory investigations. The Financial
More informationThe proposed Fourth Money Laundering Directive
The proposed Fourth Money Laundering Directive What the proposed Directive means and how to keep your business safe USING IDENTITY INTELLIGENTLY Money Laundering Directive What the proposed Directive means
More informationAnti-Money Laundering Program and Suspicious Activity Reporting Requirements For Insurance Companies. Frequently Asked Questions
Anti-Money Laundering Program and Suspicious Activity Reporting Requirements For Insurance Companies Frequently Asked Questions We are providing the following Frequently Asked Questions to assist insurance
More informationa GAO-02-670 GAO MONEY LAUNDERING Extent of Money Laundering through Credit Cards Is Unknown
GAO United States General Accounting Office Report to the Chairman, Permanent Subcommittee on Investigations, Committee on Governmental Affairs, U.S. Senate July 2002 MONEY LAUNDERING Extent of Money Laundering
More informationPrioritizing Regulatory Compliance in the Financial Services Industry
Prioritizing Regulatory Compliance in the Financial Services Industry 1185 Sanctuary Parkway Suite 250 Alpharetta, GA 30004 Tel: 678.992.0262 www.compliance360.com A Regulatory Perfect Storm What do these
More informationSTATEMENT OF SENATOR CARL LEVIN (D-MICH) ON INTRODUCING THE INCORPORATION TRANSPARENCY AND LAW ENFORCEMENT ASSISTANCE ACT.
STATEMENT OF SENATOR CARL LEVIN (D-MICH) ON INTRODUCING THE INCORPORATION TRANSPARENCY AND LAW ENFORCEMENT ASSISTANCE ACT March 11, 2009 Mr. President, I am introducing today, with my colleagues Senator
More informationBANK SECRECY ACT REQUIREMENTS FOR RESIDENTIAL MORTGAGE LOAN ORIGINATIORS: AN OVERVIEW
BANK SECRECY ACT REQUIREMENTS FOR RESIDENTIAL MORTGAGE LOAN ORIGINATIORS: AN OVERVIEW June 6, 2012 Marjorie A. Corwin, Esquire Gordon Feinblatt LLC 233 East Redwood Street Baltimore, Maryland 21202 410-576-4041
More informationGoing global: the resolution of cross-border investigations
Going global: the resolution of cross-border investigations Aug 04 2014 Raj Parker, Michelle Bramley and Chris Morris News headlines are dominated by settlements arising out of financial services regulatory
More informationSUMMARY: This Interpretive Release sets forth an interpretation of the regulation
[Billing Code 4810-02-P] United States Department of Treasury Financial Crimes Enforcement Network 31 CFR Part 103 Interpretive Release 2004-1 Anti-Money Laundering Program Requirements For Money Services
More informationClient Update FinCEN Proposes Anti-Money Laundering Rules for Investment Advisers
1 Client Update FinCEN Proposes Anti-Money Laundering Rules for Investment Advisers WASHINGTON, D.C. Kenneth J. Berman kjberman@debevoise.com Satish M. Kini smkini@debevoise.com Robert T. Dura rdura@debevoise.com
More informationRECOMMENDED CORE ELEMENTS OF AN AML TRAINING PROGRAM FOR LIFE INSURANCE AGENTS AND BROKERS
RECOMMENDED CORE ELEMENTS OF AN AML TRAINING PROGRAM FOR LIFE INSURANCE AGENTS AND BROKERS NOTICE: This document is provided to assist life insurance companies in the integration of their agents and brokers,
More informationWashington, D.C. June 24, 2015. for the opportunity to testify today. I would like to share with you the perspective of state
Written Testimony of New York County District Attorney Cyrus R. Vance, Jr. Before the U.S. House of Representatives Task Force to Investigate Terrorism Finance Washington, D.C. June 24, 2015 Good morning
More informationDr. Nicholas Ryder Professor in Financial Crime Department of Law
Money laundering and the United Kingdom: a haven for dirty money and an endless cycle? A critical reflection on the United Kingdom s anti-money laundering policies Dr. Nicholas Ryder Professor in Financial
More informationWhat Insurance Agents and Brokers Should Expect under the New Anti-Money Laundering Regulations for Life Insurance Companies
What Insurance Agents and Brokers Should Expect under the New Anti-Money Laundering Regulations for Life Insurance Companies The USA PATRIOT Act includes provisions intended to prevent the financial services
More informationBig Data s Big Impact In Financial Investigations
Portfolio Media. Inc. 860 Broadway, 6th Floor New York, NY 10003 www.law360.com Phone: +1 646 783 7100 Fax: +1 646 783 7161 customerservice@law360.com Big Data s Big Impact In Financial Investigations
More informationRegulatory Compliance and Trade
Regulatory Compliance and Trade Global Transaction Services Cash Management Trade Services and Finance Securities Services Fund Services Regulatory Compliance and Trade 2007 These materials are provided
More informationFinCEN Issues Notice of Proposed Rulemaking that Would Extend AML Requirements to Registered Investment Advisers
FinCEN Issues Notice of Proposed Rulemaking that Would Extend AML Requirements to Registered Investment Advisers On August 25, 2015, the Financial Crimes Enforcement Network (FinCEN), a bureau of the US
More informationRudolph Claus and the Extra-Territorial Enforcement of US. Tax Law. Michael J. Legamaro
Rudolph Claus and the Extra-Territorial Enforcement of US Tax Law Michael J. Legamaro 1 Story of Rudolph Claus Rudolph is a US citizen born in US while Austrian-citizen parents were vacationing He has
More information7.0 Information Security Protections The aggregation and analysis of large collections of data and the development
7.0 Information Security Protections The aggregation and analysis of large collections of data and the development of interconnected information systems designed to facilitate information sharing is revolutionizing
More informationPublic Consultation on Member State discretions
4 th EU Anti-Money Laundering Directive and Funds Transfer Regulation Public Consultation on Member State discretions January 2016 Contents The Consultation Process... 1 Key features of Fourth EU Anti-Money
More informationTreasury Department Proposes Anti-Money Laundering Regulations for Investment Advisers
CLIENT MEMORANDUM Treasury Department Proposes Anti-Money Laundering Regulations for Investment Advisers August 28, 2015 AUTHORS Benjamin J. Haskin Russell L. Smith Barbara Block On August 25, 2015, the
More informationSTATEMENT OF DAVID A. O NEIL ACTING ASSISTANT ATTORNEY GENERAL CRIMINAL DIVISION UNITED STATES DEPARTMENT OF JUSTICE BEFORE THE
STATEMENT OF DAVID A. O NEIL ACTING ASSISTANT ATTORNEY GENERAL CRIMINAL DIVISION UNITED STATES DEPARTMENT OF JUSTICE BEFORE THE COMMITTEE ON OVERSIGHT & GOVERNMENT REFORM SUBCOMMITTEE ON GOVERNMENT OPERATIONS
More informationThe New AML Rules: Implications for Private Fund Managers
Alert The New AML Rules: Implications for Private Fund Managers September 8, 2015 On Aug. 25, 2015, the Financial Crimes Enforcement Network ( FinCEN ) issued for public comment a proposed rule (the Proposed
More informationEnterprise Terrorist Financing & Money Laundering Policy
Policy Sponsor: Summary: CA and Compliance Sets out obligations under and suggestions for procedures to comply with antiterrorist financing, anti-money laundering and other laws implementing sanctions
More informationAutoridade Bancária e de Pagamentos de Timor-Leste Banking and Payments Authority of Timor-Leste
Autoridade Bancária e de Pagamentos de Timor-Leste Banking and Payments Authority of Timor-Leste PUBLIC INSTRUCTION 02/2004 ON THE PREVENTION OF MONEY LAUNDERING, CUSTOMER IDENTIFICATION AND RECORD-KEEPING
More informationStrategic analysis brief Money laundering through legal practitioners
Strategic analysis brief Money laundering through legal practitioners Strategic analysis briefs AUSTRAC strategic analysis briefs provide insights for government and industry on money laundering and terrorism
More informationLong Awaited Guidance Concerning Foreign Bank Account ( FBAR ) Filing Requirements Released
Long Awaited Guidance Concerning Foreign Bank Account ( FBAR ) Filing Requirements Released This past week, the Treasury Department s Financial Crimes Enforcement Network (FinCEN) released proposed changes
More informationCOMMERCIAL LENDERS MANDATED TO FIGHT WAR ON TERRORISM
COMMERCIAL LENDERS MANDATED TO FIGHT WAR ON TERRORISM By Gordon L. Gerson, Esq. It has not been business as usual in the lending industry since September 11, and commercial lenders have been conscripted
More informationRisk Factors for OFAC Compliance in the Securities Industry
Risk Factors for OFAC Compliance in the Securities Industry Updated November 5, 2008 Introduction The U.S. Department of the Treasury s Office of Foreign Assets Control ( OFAC ) is charged with administering
More informationSPRING 2005 Volume 7.2 STATE CORPORATION COMMISSION BUREAU OF FINANCIAL INSTITUTIONS. Lending Draws Regulatory Attention
SPRING 2005 Volume 7.2 STATE CORPORATION COMMISSION BUREAU OF FINANCIAL INSTITUTIONS Quarterly Newsletter Highlights Risk Assessment First Step in BSA Compliance Inside Growth in Member Business Lending
More information{>> Foreign Corrupt Practices Act //]
{>> Foreign Corrupt Practices Act //] FCPA Defintion FCPA Definition FOREIGN CORRUPT PRACTICES ACT - The risk of doing business abroad has just increased dramatically as non compliance with the Foreign
More informationACCOUNTANTS AND TAX ADVISORS
ACCOUNTANTS AND TAX ADVISORS Sector Specific AML/CFT Guidance Notes May 2015 Whilst this publication has been prepared by the Financial Supervision Commission, it is not a legal document and should not
More informationUnited States Attorney Southern District of New York
United States Attorney Southern District of New York FOR IMMEDIATE RELEASE APRIL 15, 2010 CONTACT: U.S. ATTORNEY'S OFFICE YUSILL SCRIBNER, JANICE OH PUBLIC INFORMATION OFFICE (212) 637-2600 IRS JOSEPH
More informationAnti-Money Laundering and Counter- Terrorism Financial Policy
Anti-Money Laundering and Counter- Terrorism Financial Policy Version: March 2014 1. INTRODUCTION...3 2. DEFINITIONS...3 3. RISK-BASED APPROACH...3 4. AML COMPLIANCE OFFICER...4 5. SUSPICIOUS TRANSACTION
More informationCRIMINAL DEFENSE FAQ. QUESTION: Am I required to allow law enforcement be allowed to search my house or my car?
THE LAW OFFICES OF SCOTT L. KRAMER CRIMINAL DEFENSE FAQ ANSWERS FROM AN DELAWARE COUNTY ATTORNEY: QUESTION: Am I required to allow law enforcement be allowed to search my house or my car? No. You are never
More informationSTATEMENT OF JENNIFER SHASKY SENIOR COUNSEL TO THE DEPUTY ATTORNEY GENERAL BEFORE THE
STATEMENT OF JENNIFER SHASKY SENIOR COUNSEL TO THE DEPUTY ATTORNEY GENERAL BEFORE THE COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS UNITED STATES SENATE ENTITLED BUSINESS FORMATION AND FINANCIAL
More informationUNITED STATES OF AMERICA DEPARTMENT OF THE TREASURY FINANCIAL CRIMES ENFORCEMENT NETWORK ASSESSMENT OF CIVIL MONEY PENALTY
UNITED STATES OF AMERICA DEPARTMENT OF THE TREASURY FINANCIAL CRIMES ENFORCEMENT NETWORK IN THE MATTER OF: ) ) Number 2015-01 Oppenheimer & Co., Inc. ) New York, NY ) ASSESSMENT OF CIVIL MONEY PENALTY
More informationGuidance. FIN-2014-G001 Issued: February 14, 2014 Subject: BSA Expectations Regarding Marijuana-Related Businesses
Guidance FIN-2014-G001 Issued: February 14, 2014 Subject: BSA Expectations Regarding Marijuana-Related Businesses The Financial Crimes Enforcement Network ( FinCEN ) is issuing guidance to clarify Bank
More informationUNITED STATES DISTRICT COURT DISTRICT OF OREGON Portland Division. V. CRYSTAL COX, Pro Se Defendant
Crystal L. Cox Attorney Pro Se UNITED STATES DISTRICT COURT DISTRICT OF OREGON Portland Division OBSIDIAN FINANCE GROUP, LLC and KEVIN D. PADRICK, Plaintiffs, V. CRYSTAL COX, Pro Se Defendant Objection
More informationWhy Tax Evasion Is A Bad Idea: UBS and Wegelin Bank
Why Tax Evasion Is A Bad Idea: UBS and Wegelin Bank Gary S. Wolfe Gary S. Wolfe has been in private practice in Beverly Hills, Century City, and Los Angeles since 1982. He is an international tax lawyer
More informationFinCEN s Proposed Anti-Money Laundering Compliance Requirements for Investment Advisers: How to Prepare Now
FinCEN s Proposed Anti-Money Laundering Compliance Requirements for Investment Advisers: How to Prepare Now I. INTRODUCTION On August 25, 2015, the Financial Crimes Enforcement Network ( FinCEN ) proposed
More informationJPR INSURANCE BROKERS LIMITED TERMS OF BUSINESS AGREEMENT (TOBA)
1. Please read this document carefully. JPR INSURANCE BROKERS LIMITED TERMS OF BUSINESS AGREEMENT (TOBA) It sets out the terms on which we agree to act for our clients and contains details of our regulatory
More informationThe Amendment of the Loan Agreement (for Business)/ Overdraft Facility Agreement (for Consumption)/ Money Mortgage Agreement*
The Amendment of the Loan Agreement (for Business)/ Overdraft Facility Agreement (for Consumption)/ Money Mortgage Agreement* No. Clause Reference Amendment Sanctions 1. Important notice Standard Chartered
More informationFAQ on frozen assets of Politically Exposed Persons (PEPs) originating from Ukraine Federal Council ordinance
Federal Department of Foreign Affairs FDFA FAQ on frozen assets of Politically Exposed Persons (PEPs) originating from Ukraine Federal Council ordinance Situation April 2014 1. Why has Switzerland frozen
More informationThe Transfer of Funds (Alderney) Ordinance, 2007
The Transfer of Funds (Alderney) Ordinance, 2007 ARRANGEMENT OF SECTIONS PART I INFORMATION TO ACCOMPANY TRANSFERS OF FUNDS 1. Application. 2. Information accompanying transfers of funds and record keeping.
More informationRequest for No-Action Relief Under Broker-Dealer Customer Identification Program Rule (31 C.F.R. 1023.220)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 D I VIS I ON OF TRAD I NG AND MARKETS January 9, 2015 Mr. Ira D. Hammerman Executive Vice President and General Counsel Securities
More informationAetna Anti-Money Laundering and Financial Sanctions Compliance Policy
Aetna AML and Financial Sanctions Compliance Policy Aetna Anti-Money Laundering and Financial Sanctions Compliance Policy Originating Department: Aetna s AML Compliance Office Effective Date: January 1,
More informationCC255 C O R P O R A T E. Altus FCPA Policy. Last revised: 12 October 2010
CC255 Altus FCPA Policy Last revised: 12 October 2010 C O R P O R A T E Foreign Corrupt Practices Act Policy Purpose The purpose of this Policy is to ensure compliance by Altus and its directors, officers,
More information8 Guiding Principles for Anti-Money Laundering Polciies and Procedures in
TCH Guiding Principles September 2014 Exposure Draft Guiding Principles for Anti-Money Laundering Policies and Procedures in Correspondent Banking Exposure Draft for Public Comment 2 Preamble to the Exposure
More informationNevada Registered Agents Association
Nevada Registered Agents Association Best Practices Recommendations to Prevent the Exploitation of Nevada Business Entities for Criminal Activities, and for the Protection of the Nevada Registered Agent
More informationNOBLE TRUST COMPANY LTD. GENERAL TERMS OF BUSINESS. The following definitions and rules of interpretation shall apply:
NOBLE TRUST COMPANY LTD. GENERAL TERMS OF BUSINESS 1. Definitions and interpretation The following definitions and rules of interpretation shall apply: 1.1 Agent means any person appointed by a Client
More informationThe Crackdown On Undeclared Foreign Bank Accounts
Portfolio Media. Inc. 860 Broadway, 6th Floor New York, NY 10003 www.law360.com Phone: +1 646 783 7100 Fax: +1 646 783 7161 customerservice@law360.com The Crackdown On Undeclared Foreign Bank Accounts
More informationSecret Swiss Accounts Said No Longer Safe for Tax
1 of 5 9/11/2013 1:35 PM Secret Swiss Accounts Said No Longer Safe for Tax Dodging By David Voreacos - Sep 8, 2013 Taxpayers who still believe they can hide secret Swiss bank accounts from the Internal
More informationForeign Account Tax Compliance Act ( FATCA ) How Does It Affect NFFEs and Individuals
Foreign Account Tax Compliance Act ( FATCA ) How Does It Affect NFFEs and Individuals May, 2012 2008 Venable LLP 1 agenda Overview FATCA and NFFEs FATCA and Individuals US Information Reporting for US
More informationBank Secrecy Act for Directors. Barb Boyd Content Manager CU Solutions Group
Bank Secrecy Act for Directors Barb Boyd Content Manager CU Solutions Group Agenda What is the Bank Secrecy Act? How to have a successful BSA Compliance Program OFAC responsibilities. Penalties for non-compliance.
More informationWRITTEN TESTIMONY OF K
WRITTEN TESTIMONY OF K. STEVEN BURGESS DIRECTOR, EXAMINATION SMALL BUSINESS/SELF EMPLOYED DIVISION INTERNAL REVENUE SERVICE BEFORE SENATE COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS PERMANENT
More informationFederal Act on Combating Money Laundering and Terrorist Financing in the Financial Sector 1
English is not an official language of the Swiss Confederation. This translation is provided for information purposes only and has no legal force. Federal Act on Combating Money Laundering and Terrorist
More informationhttp://www.justice.gov/tax/offshore-compliance-initiative
Page 1 of 8 OFFSHORE COMPLIANCE INITIATIVE One of the Tax Division's top litigation priorities is combatting the serious problem of non-compliance with our tax laws by U.S. taxpayers using secret offshore
More informationRemarks by. Thomas J. Curry. Comptroller of the Currency. Before the National Community Reinvestment Coalition. Washington, D.C.
Remarks by Thomas J. Curry Comptroller of the Currency Before the National Community Reinvestment Coalition Washington, D.C. March 27, 2015 I d like to begin by thanking John Taylor for that very kind
More informationDevelopments in Bank Secrecy Act and Anti-Money Laundering Enforcement and Litigation
June 2016 Developments in Bank Secrecy Act and Anti-Money Laundering Enforcement and Litigation By Dr. Sharon Brown-Hruska Money laundering is a term that is used to refer to financial transactions in
More informationNomination of Loretta E. Lynch to be Attorney General of the United States Questions for the Record Submitted February 18, 2015
Nomination of Loretta E. Lynch to be Attorney General of the United States Questions for the Record Submitted February 18, 2015 QUESTIONS 1-18 FROM CHAIRMAN GRASSLEY HSBC: As United States Attorney for
More informationBSA/AML & OFAC. Volunteer Compliance Training. Agenda
Ideas + Solutions = Success BSA/AML & OFAC Ideas + Solutions = Success Volunteer Compliance Training Presented by Dorie Fitchett HCUL Regulatory Officer April 25, 2013 Agenda 1. Bank Secrecy Act (BSA)
More informationPresenting a False Claims Act Case: Back to Basics Randall M. Fox
Reprinted with permission from the New York Law Journal New York Law Journal December 9, 2014 OUTSIDE COUNSEL Presenting a False Claims Act Case: Back to Basics Randall M. Fox Randall M. Fox is a partner
More informationAnti-Money Laundering and International Sanctions guidance for Coverholders
Anti-Money Laundering and International Sanctions guidance for Coverholders Introduction The purpose of this document is to provide general high-level guidance in relation to antimoney laundering ( AML
More informationPost-course knowledge check
Australian Government Australian Transaction Reports and Analysis Centre Post-course knowledge check Introduction to AML/CTF e-learning course This knowledge check will provide you with an indication of
More informationMemorandum/Article. The IRS Whistleblower Program The US Pays People to Inform on Non-Compliant US Taxpayers
Suite 2700, 161 Bay Street Memorandum/Article TD Canada Trust Tower Toronto, Ontario M5J 2T3, Canada ph. +1 (416) 572-2063 fax +1 (416) 572-2201 www.garbutt-taxlaw.com Reply to: Jonathan Garbutt jonathan@garbutt-taxlaw.com
More informationCORRUPTION. A Reference Guide and Information Note. to support the fight against Corruption. Safeguarding public sector integrity
FINANCIAL ACTION TASK FORCE CORRUPTION A Reference Guide and Information Note on the use of the FATF Recommendations to support the fight against Corruption The Financial Action Task Force (FATF) is the
More informationLaw No. 80 for 2002 Promulgating the Anti-Money Laundering Law And its Amendments ١
Law No. 80 for 2002 Promulgating the Anti-Money Laundering Law And its Amendments ١ In the Name of the People, The President of the Republic, The People's Assembly has passed the following Law, and we
More information{Regulatory Compliance Update.} December 10, 2014
{Regulatory Compliance Update.} December 10, 2014 Presenter Elizabeth Snyder, CRCM, Regulatory Compliance Manager Elizabeth leads Plante Moran s regulatory compliance team. As a compliance specialist with
More informationWolfsberg Statement Anti-Money Laundering Guidance for Mutual Funds and Other Pooled Investment Vehicles
Wolfsberg Statement Anti-Money Laundering Guidance for Mutual Funds and Other Pooled Investment Vehicles Preamble The continuing threat of money laundering is most effectively managed by understanding
More informationREGULATION FOR LIFE INSURANCE AND FAMILY TAKAFUL INSURANCE BUSINESSES ON PREVENTION OF MONEY LAUNDERING AND FINANCING OF TERRORISM
REGULATION FOR LIFE INSURANCE AND FAMILY TAKAFUL INSURANCE BUSINESSES ON PREVENTION OF MONEY LAUNDERING AND FINANCING OF TERRORISM (unofficial English translation) REGULATION FOR LIFE INSURANCE AND FAMILY
More informationThe Libor Scandal and Its Effects Explained
The Libor Scandal and Its Effects Explained As if the credit crisis and rogue traders were not enough to undermine the reputation of the financial services industry, along comes an issue that may dwarf
More informationA SHORT NOTE ON THE DEVELOPMENT OF THE CRIMINAL JUSTICE SYSTEM AFTER THE ACCESSION OF CRIMEA AND SEVASTOPOL TO THE RUSSIAN FEDERATION
A SHORT NOTE ON THE DEVELOPMENT OF THE CRIMINAL JUSTICE SYSTEM AFTER THE ACCESSION OF CRIMEA AND SEVASTOPOL TO THE RUSSIAN FEDERATION Elena A. Kremyanskaya* ABSTRACT In March 2014, when Crimea and Sevastopol
More informationInternal Revenue Service
Internal Revenue Service Number: 201045005 Release Date: 11/12/2010 Index Number: 162.25-05 ----------------------- ------------------------------------------- ----------------------------------- --------------------------------------------------
More informationWolfsberg Anti-Money Laundering Principles for Private Banking (2012)
Wolfsberg Anti-Money Laundering Principles for Private Banking (2012) Preamble The following Principles are understood to be appropriate for private banking relationships. Principles for other market segments
More informationThe Transfer of Funds (Sark) Ordinance, 2007 a
The Transfer of Funds (Sark) Ordinance, 2007 a [CONSOLIDATED TEXT] NOTE This consolidated version of the enactment incorporates all amendments listed in the footnote below. However, while it is believed
More informationFCPA and OFAC Compliance Essentials
OFAC FCPA and OFAC Compliance Essentials By The FCPA Report The DOJ, SEC and OFAC continue to put resources into enforcement of trade regulations and the FCPA, pursuing new investigative techniques and
More informationPRESS RELEASE. Internal Revenue Service - Criminal Investigation Chief Richard Weber
PRESS RELEASE Internal Revenue Service - Criminal Investigation Chief Richard Weber Date: Nov. 19, 2015 Contact: CI Release #: *CI-HQ-COMMUNICATIONSEDUCATION@ci.irs.gov IRS Criminal Investigation CI-2015-11-19-A
More informationBy Ronald A. Sarachan and Daniel J. T. McKenna
By Ronald A. Sarachan and Daniel J. T. McKenna Since 2007 the Federal Bureau of Investigation and the Securities and Exchange Commission have opened more than 1,200 criminal investigations and three dozen
More information