Forensic Accountants augment a Financial Institution’s Corporate Governance Program
A financial institution’s understanding and management of financial crimes and their genesis would enhance and strengthen its Corporate Governance programs and internal controls. Forensic Accountants with a law enforcement background and with an understanding of the provisions of the Bank Secrecy Act (BSA), Title 31, rules and regulations issued by the federal bank supervisory agencies […]
Included in the AML ACT of 2020 is the Corporate Transparency Act which outlines Beneficial Ownership Reporting Requirements
The Corporate Transparency Act (CTA) is within the AML Act of 2020. It establishes Beneficial Ownership Information Reporting Requirements to facilitate important national security, intelligence, and law enforcement activities; and confirm beneficial ownership information provided to financial institutions to facilitate the compliance of the financial institutions with anti-money laundering, countering the financing of terrorism, and […]
Will the Perception of the USA as a Preferred Tax Haven be Jeopardized Going Forward?
Changes to the Bank Secrecy Act incorporated into the National Defense Authorization Act (NDAA) contain requirements for beneficial ownership disclosure by covered legal entities at the time of their creation for inclusion in a database that will be accessible by USA and foreign law enforcement, regulators, and AML compliant US financial institutions. Why is there […]
How will the AML Act of 2020 (the “Act”) Required Examiner Training Impact your Financial Institution?
Section 6307 of the Act requires annual Anti-Money Laundering and Countering the Financing of Terrorism training for Examiners. The training is to be done in consultation with FinCEN and all levels of law enforcement, including federal, state, tribal, and local. Training Requirement Defined by Section 6307 Each Federal examiner reviewing Bank Secrecy Act compliance with […]
Will Financial Institutions be Ready for the Proposed Travel Rule Rulemaking?
The “Travel Rule” is a Bank Secrecy Act (BSA) rule [31 CFR 103.33(g)] that requires financial institutions to pass certain information on to the next financial institution, in certain funds transmittals involving more than one financial institution. “Financial institutions” include banks; securities brokers or dealers; casinos subject to the BSA; money transmitters, check cashers, currency […]
Is there help on the Way for the De-risked?
Rising compliance costs, hard to understand corporate client structures, fines and penalties, a shift from corporate responsibility to individual liability, and reputational concerns have led many US Financial Institutions (“FI”) to de-risk or end customer relationships as along with the offering of certain banking products. The consequential correspondent account closures result in “bank-less” or “de-risked” […]
FinCEN provides a Section 314(b) welcomed clarification
Section 314(b) 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 […]
Should Banks Continue To Do Business with Entities for Which a SAR is Filed?
Should Banks Continue To Do Business with Entities for Which a SAR is Filed? This article appeared at the Daily Business Review on 12/23/20
Compliance Function Shall Not be “Underfunded”
Compliance Professionals continue protecting their Financial Institutions during these unprecedented times. They have become a source of regulatory information for Financial Institutions facing challenges that are changing from day to day. As the Pandemic continues, Compliance Departments and Compliance Officers working remotely bear an additional responsibility for assuring proactive risk identification, assessment, and mitigation. Regulators […]
After Ten Years, FATCA is NOT GOING AWAY!
FATCA was signed into law in March 2010 with the objective of combating international income tax reporting non-compliance by US citizens and U.S. taxpaying residents (US Taxpayers). It requires Foreign Financial Institutions (FFIs) to annually report the reportable balances and income in the accounts held by their US customers to the IRS. It requires US […]
Is your Financial Institution Maintaining Continuous Compliance with FATCA?
Participation in FATCA is not an option, it is here to stay, and it is part of a global initiative. FATCA is complicated, and for the bankers, it has implied learning new terminology and understanding thousands of pages of a regulation that is written for a person that specializes in the tax laws of the […]
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, […]
