Loans for Allowable Uses under the PAYCHECK PROTECTION PROGRAM may be Forgiven

March 2020

The enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act includes the Paycheck Protection Program (PPP).  The PPP authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis.  The

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Understanding the Economic Impact Payments (Recovery Rebates)

March 2020

The distribution of economic impact payments will begin in the next three weeks (weeks of April 6th, 13th and 20th of 20202).  According to the IRS, the payments will be distributed automatically, with no action required for most people. The

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Florida small businesses can “bridge the gap” between the time damage is incurred and when a business secures other financial resources

April 2020

Florida currently has the Florida Small Business Emergency Bridge Loan Program available to small business owners located in all Florida counties statewide that experienced economic damage as a result of COVID-19.  The loans are characterized as short-term, interest-free (12 months)

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Compliance Officers and the Growing Risk of Personal Liability

March 2020

On February 04, 2020, the NEW YORK CITY BAR ASSOCIATION COMPLIANCE COMMITTEE issued a REPORT ON CHIEF COMPLIANCE OFFICER LIABILITY IN THE FINANCIAL SECTOR.  The Report discusses the governmental view that Compliance Officers are the “gatekeepers” that prevent, detect, and

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The U.S.A Continues to be AML/BSA “Vulnerable”

March 2020

The U.S. Department of the Treasury 2020 Strategy (National Strategy for Combating Terrorist and Other Illicit Financing released on February 6, 2020) describes ongoing significant AML/CFT threats.  The vulnerabilities in the U.S.A. related to AML/CFT are centered around: Lack of

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Did you know that OFAC and the IRS have an Understanding?

February 2020

In November, 2019 the IRS and the Office of Foreign Assets Control (OFAC) signed a Memorandum of Understanding (MOU).  The MOU outlines an understanding between the IRS and OFAC with respect to reviews conducted by the IRS for compliance with

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What is Next after BSA turns 50?

February 2020

On 2/6/2020, the U.S. Department of the Treasury issued the 2020 National Strategy for Combating Terrorist and Other Illicit Financing (2020 Strategy).  The purpose of the 2020 Strategy is to: • Modernize the U.S. anti-money laundering/countering the financing of terrorism

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What can trigger an OFAC investigation and what can an OFAC Investigation lead to?

February 2020

OFAC investigations are often triggered as a result of: • Reports that are generated by U.S. Financial Institutions which have blocked or rejected a transaction based on a suspected sanctions violation • A self-disclosure of an OFAC apparent violation •

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FBAR Penalties: Is it per Account or per Violation?

February 2020

U.S. Taxpayers (includes a citizen, permanent resident, corporation, partnership, limited liability company, trust and estate) are required to file a Report of Foreign Bank and Financial Accounts (FBAR) if they have: a financial interest in or signature or other authority

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Are there conflicting signals from IRS as it relates to Section 965?

February 2020

IRC Section 965 (Treatment of Deferred Foreign Income Upon Transition to Participation Exemption System of Taxation) was part of the TCJA enacted on December 22, 2017.  The sections requires a United States shareholder to pay a transition tax on the

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Deficiencies or Weaknesses in an OFAC Sanctions Compliance Program can lead to OFAC Administrative Actions

January 2020

 On May 2, 2019, OFAC (Office of Foreign assets Control) published guidance titled “A Framework for OFAC Compliance Commitments”.  The purpose of the OFAC Framework guidance is to encourage a “risk-based” approach to “Sanctions Compliance” through developing, implementing, and routinely

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Who are you partnering with for your Financial Institution’s BSA/AML Independent Testing?

January 2020

Financial Institutions ought to design and evaluate compliance programs to meet BSA/AML requirements and to satisfy Bank Examiner expectations. A Financial Institution’s Compliance Programs must comply with the requirements under Title 31 and, at a minimum, must include the five

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