FedNow is live!
On 7/20/ 23, the Board of Governors of the Federal Reserve system announced the launch of the FedNow Service. FedNow is a new instant payment infrastructure developed by the Federal Reserve that is available to depository institutions in the United States and enables individuals and businesses to send instant payments through their depository institution accounts. […]
IRS Digital Assets Proposed Regulations
On 8/29/23, the IRS issued a Notice of Proposed Rulemaking and Notice of Public Hearing for Digital Assets Proposed Regulations. The IRS Digital Assets Proposed Regulations address information reporting, the determination of amount realized and basis, and backup withholding, for certain digital asset sales and exchanges by requiring brokers, digital asset trading platforms, digital asset […]
FDIC Risk Review 2023 adds Crypto
On 8/14/23, the FDIC Risk Review 2023 was published. The FDIC Risk Review 2023 report summarizes conditions in the U.S. economy, financial markets, and banking industry. The report provides a comprehensive summary of key developments and risks in the U.S. banking system and includes a new section focused on crypto-asset risk. The report focuses on […]
OECD CARF and CRS
On 6/8/23, after conducting the first comprehensive review of the CRS in consultation with participating jurisdictions, financial institutions, and other stakeholders, the OECD released the International Standards for Automatic Exchange of Information in Tax Matters CRYPTO‑ASSET REPORTING FRAMEWORK (CARF) AND 2023 UPDATE TO THE COMMON REPORTING STANDARD). This resulted in two outcomes: a new tax […]
PEPs and Financial Institutions
Financial Institutions are required to have processes in place for identifying Politically Exposed Persons – known as “PEPs” within their customer base. PEPs 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 […]
What is Covered under the FCPA?
The FCPA prohibits payment of bribes to foreign officials to assist with obtaining or retaining business. It also requires companies whose securities are listed in the US to make and keep books and records that accurately and fairly reflect their transactions and devise and maintain adequate systems of internal accounting controls. Violations of the FCPA […]
FinCEN: Mission, Priorities and Successes
On April 27, 2023, Himamauli Das, Acting Director of FinCEN spoke before the Committee on Financial Services U.S. House of Representatives. His Statement reiterated FinCEN’s mission to safeguard the financial system from illicit use, combat money laundering and its related crimes including terrorism, and promote national security through the strategic use of financial authorities and […]
Managing Third-Party Relationships and Risks
On June 6, 2023, Federal Bank Regulatory Agencies (Federal Deposit Insurance Corporation (FDIC), Board of Governors of the Federal Reserve System (FRB), and the Office of the Comptroller of the Currency (OCC)) issued final joint guidance designed to help banking organizations manage risks associated with third-party relationships, including relationships with financial technology companies. The Agencies […]
Offshore Digital Assets Information Exchange Coming!
The Biden Administration General Explanations of the Administration’s Revenue Proposals for Fiscal Year 2024 discusses the proposal for exchange of information reporting by financial institutions and offshore digital asset brokers. The proposal for exchange of information stems from the sentiment that tax evasion using digital assets continues to be a rapidly growing problem. The global […]
FinCEN BOI Guidance
On 3/24/23, FinCEN issued its first set of guidance materials to aid the public in understanding upcoming beneficial ownership information (BOI) reporting requirements taking effect on January 1, 2024. BOI refers to identifying information about the individuals who directly or indirectly own or control a company. BOI reporting information reporting will be done directly to […]
Foreign Digital Asset Accounts to be Reported
The Biden’s Administration 2024 Revenue Proposal includes US taxpayer reporting requirements for foreign digital asset accounts. The proposal would be effective for returns required to be filed after December 31, 2023. Tax compliance and enforcement with respect to digital assets continues to be a growing problem for the US Government given that the digital asset […]
Check Fraud FinCEN Alert
On February 27, 2023, FinCEN issued (in close collaboration with the United States Postal Inspection Service) an Alert on Nationwide Surge in Mail Theft-Related Check Fraud Schemes Targeting the U.S. Mail. Despite the declining use of checks in the United States, Criminals have been increasingly targeting the U.S. Mail and United States Postal Service mail […]
