Did you know that FinCEN maintains Data Access Memoranda of Understanding (MOUs) that have over 12,700 authorized users?
FinCEN has more than 400 data-access MOUs with federal, state, and local law enforcement regulatory agencies relating to BSA data. It consolidates the information that it receives and shares the consolidated reports with regulatory agencies. All the supervisory agencies update and monitor their information-sharing MOUs through frequent meetings and regular communication with FinCEN. Law enforcement […]
While FinCEN lacks Independent Litigating Authority, it is the Regulator for the BSA and is responsible for the administration of BSA/AML
FinCEN issues implementing regulations that “ensure” compliance with the BSA. FinCEN delegates its examination authority to federal agencies. These federal agencies are the “Federal Functional Regulators” who supervise institutions for BSA compliance. They are the: Federal Deposit Insurance Corporation (FDIC) Board of Governors of the Federal Reserve System (Federal Reserve) National Credit Union Administration (NCUA) […]
Is Section 314 of the USA PATRIOT Act Working?
Section 314 of the USA PATRIOT Act (Sec 314) was drafted by Congress in 2001 to allow financial institutions to work with law enforcement agencies and with each other to support the common goal of deterring money laundering and terrorist financing. It provides financial institutions with the ability to share information with one another (under […]
“Complexity will not hide crime from law enforcement,” California U.S. Attorney on Brockman Indictment
The U.S. Department of Justice (DOJ) 39 count indictment charging Robert T. Brockman, with tax evasion, wire fraud, money laundering, and other offenses, demonstrates that the DOJ is committed to the investigation and prosecution of the costliest and most sophisticated tax crimes in the US. The DOJ stated that “IRS Criminal Investigation aggressively pursues tax […]
Are you purchasing Real Property from a Foreign Person?
On 9/14/20, the IRS announced 4 New Compliance Campaigns . One Campaign addresses FIRPTA (Foreign Investment in Real Property Tax Act of 1980) Reporting Compliance for Non-Resident Aliens (NRAs). FIRPTA authorized the United States to tax foreign persons on dispositions of U.S. real property interests. This IRS campaign is intended to increase FIRPTA voluntary compliance […]
IRS is Paying Attention to Virtual Currency Third-Party Information Reporting and Title 26
On September 24, 2020, the TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION (TIGTA) issued a final audit report: “The Internal Revenue Service Can Improve Taxpayer Compliance for Virtual Currency Transactions” that evaluates the IRS’s efforts to ensure accurate reporting of virtual currency transactions as required under U.S. Code Title 26 (Internal Revenue Code) and Title 31 […]
Financial Institutions to Remain Vigilant of Ransomware Attacks as they are Facilitators of Ransomware Payments
On October 1, 2020, the Financial Crimes Enforcement Network (FinCEN) issued an advisory to alert Financial Institutions (FI) relating to “predominant trends, typologies, and potential indicators of ransomware and associated money laundering activities”. The FinCEN Advisory also makes reference to the Advisory from the Office of Foreign Asset Control (OFAC) on Potential Sanctions Risks for […]
Beware of FATCA Notices of Default After FATCA Certification Deadlines!
Under FATCA, an Event of Default (EOD) will occur if an Entity fails to perform required material obligations with respect to the due diligence, verification, withholding, or reporting FATCA requirements, or if the IRS determines that the entity has failed to substantially comply with its FATCA requirements. After the deadline for submitting the FATCA Certifications, […]
Are Banks Implementing BSA Risk Based Adjustments related to COVID-19 circumstances?
The Office of the Comptroller of the Currency (OCC) Semiannual Risk Perspective Report highlights how the Covid-19 Pandemic has elevated operational risks for banks as they are challenged with the implementation of new processes/procedures, business continuity plans and a steep increase in cyber fraud and risk. OCC Report states that Compliance Risk is increasing The […]
GAFILAT Identifies Money Laundering/Terrorist Financing Emerging Threats
GAFILAT (Financial Action Task Force of Latin America) published a Second Update to the Money Laundering Regional Threat Report (2017-2018) that includes: ANNEX VI: THREATS RELATED TO THE COVID-19 PANDEMIC. Considered to be a regional money laundering threat analysis, the report’s section related to Covid-19 highlights how criminals are taking advantage of this difficult situation […]
Erroneous FACTA Withholding?
What if a U.S. Withholding Agent of a Foreign financial Institution (FFI) erroneously applies a 30% Internal Revenue Code (IRC) Chapter 4 FATCA Withholding to a payment to the FFI? What can be done to recover the funds? Who is a Withholding Agent? You are a withholding agent for purposes of Chapter 4 if […]
Did you know that the IRS is Involved with Investigating and Prosecuting Bribery?
In 1977, the United States enacted the Foreign Corrupt Practices Act (FCPA). The FCPA prohibits an offer, payment, promise or the authorization of a payment of money or anything of value (a/k/a bribery) to a foreign official for the purpose of obtaining or retaining business. Moreover, it prohibits individuals and businesses from knowingly falsifying books […]
