How are Financial Institutions identifying and managing their PEP relationships?
With respect to customers, Financial Institutions are required to have processes in place for identifying Politically Exposed Persons – known as “PEPs”. They are individuals perceived as more vulnerable to corruption and bribery involvement due to a current or past governmental position of influence. Financial Institutions include the immediate family and close associates in the […]
Financial Institutions Ought to Remain Alert to Illicit Financial Activity During Covid-19
On March 16, 2020, FinCEN advised Financial Institutions to be on the alert about fraudulent transactions and potential illicit behavior connected to Covid-19. FinCEN encouraged Financial Institutions to contact their functional regulator if the financial Institution has concerns about delays in submitting BSA Reports. In addition, FinCEN provided direction for Financial Institutions to be aware […]
Covid-19 and Non-Resident Aliens’ Emergency Time Period in the U.S.
Nonresident alien individuals (NRA) who perform services or other activities while in the United States, and foreign corporations who employ individuals or engage individuals as agents to perform services or other activities in the United States may be considered engaged in a U.S. trade or business (USTB). If Nonresident alien individuals performing those services or […]
What can Borrowers do to prepare for PPP Loan Program Audits?
Treasury Secretary Steven Mnuchin has stated that Businesses that borrow money through the PPP Loan Program may expect compliance audits before their loans are forgiven. Many banks, with the encouragement of the U.S. Treasury, “skipped” standard Know your Customer and Loan Due Diligence Procedures. The loan risk was compounded by Banks accepting loan applications from […]
Financial Institution OFAC Compliance and Bank Regulatory Agencies
While OFAC is responsible for promulgating, developing, and administering sanctions for the U.S. Secretary of the Treasury, bank regulatory agencies cooperate in ensuring OFAC financial institution compliance. Although OFAC is not by itself a bank regulator; its basic requirement is that financial institutions do not violate the laws that it administers. The U.S. Banking and […]
What if Funds have been blocked or frozen due to OFAC?
If your funds have been blocked or “frozen” by a financial institution or other party due to a possible link to OFAC-administered sanctions, you may qualify to apply for a specific OFAC license to release blocked funds. What is an OFAC License? An OFAC license is an authorization from OFAC to engage in an otherwise […]
Connecting the FCPA with the “Travel Act” in 2020
The Travel Act ( 18 U.S.C. § 1952 -one of the older members of the family of money laundering criminal statutes) is close to celebrating its 60th year. The Travel Act is still relevant today because of its “broad spectrum” and enforcement targeting illegal activity. The Act prohibits using of the U.S. mail, or interstate […]
FinCEN re-clarifies FAQ’s on how Lenders can meet BSA requirements when issuing PPP loans
On April 13, 2020, FinCEN, as the administrator of the BSA, re-published FAQs on how borrowers and lenders may rely on the guidance provided for the SBA’s interpretation of the CARES Act and of the PPP (Paycheck Protection Program) Interim Final Rule (“PPP Interim Final Rule”). FinCEN stated that the U.S. government will not challenge […]
IRS extends more Covid-19 Relief for many including Americans who live and work abroad
The IRS continues to process electronic tax returns, issue direct deposit refunds and accept electronic payments while simultaneously granting additional, broad tax filing and payment deadline Covid-19 relief to all Taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. What is New IRS Notice […]
The Paycheck Protection Program and the Affiliation Rules
Under the Paycheck Protection Program (PPP), there are four tests that apply for affiliation based on control. The Applicant, under the PPP, will be considered together with its affiliates for the purpose of determining the number of employees of an Applicant. Existence of the power to control The US Treasury states that concerns and entities […]
Taxpayers and Tax Professionals can use digital and imaged signatures for tax documents during Covid-19
When a Tax Professional files an electronic Return on behalf of a Taxpayer, the Tax Professional obtains Forms 8878 and 8879 as declaration documents required by the IRS on behalf of a Taxpayer. Forms 8878 and 8879 are declaration documents and signature authorizations for an e-filed return filed by an Electronic Return Originator (ERO). These […]
An Eligible Employer that receives a Paycheck Protection Loan should not claim Employee Retention Credits
The Economic Security Act (CARES Act), enacted on March 27, 2020, provides for the use of and Employee Retention Credit (ERT). It is designed to encourage ELIGIBLE EMPLOYERS to maintainemployees on their payroll despite experiencing economic hardship related to COVID-19. Where application is appropriate, the credit is available to Employers regardless of size including tax […]
