19 possible Questions that your Tax Preparer ought to Ask regarding Foreign Accounts and Assets
Many Taxpayers with international entanglements seek the assistance of tax return preparers without U.S. international tax reporting experience. Because US International tax reporting is complicated and often overwhelming for US Taxpayers, international tax specialist CPA is the appropriate choice for the work. When an inappropriate US international income tax compliance preparer is not hired, the […]
How does the IRS enforce the Nation’s Tax Laws for the benefit of all Taxpayers?
On December 17, 2020, the IRS published a document entitled “Closer Look”. It explains the IRS aspiration for balancing the Taxpayer burden with the potential benefit of its compliance effort when deciding which compliance tool to use. The goal of the IRS is to minimize taxpayer burden while encouraging voluntary compliance through utilizing the most […]
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” […]
New Criminal Offenses related to Foreign Political Figures and Money Laundering Entities
Regarding assets belonging to Senior Foreign Officials, Section 6313 of the AML Act of 2020 prohibits the concealment of the source of those assets in monetary transactions or involving Institutions of primary Money Laundering concern as two new criminal offenses. Both offenses are punishable by a fine of up to $1,000,000 or 10 years of […]
Treasury Attachés, Foreign Financial Intelligence Unit Liaisons and Foreign Financial Institutions
The AML Act of 2020 includes the creation of “Treasury Attachés” (SEC. 6106, appointed by the US Treasury Department) and the “Foreign Financial Intelligence Unit Liaisons” (SEC. 6108, appointed by FinCEN) to be stationed abroad. The Treasury Attachés will: Assist the Department of the Treasury with developing and executing the financial and economic policy of […]
Foreign Bank and the New Longer Arm of the US Treasury and DOJ
Before passage of the AML ACT of 2020 (the “ACT”), The US Department of the Treasury, and the US Justice Department (DOJ) had US legal authority to subpoena foreign banks with US correspondent accounts for related US records including records held in a foreign country. AML ACT of 2020 expands the subpoena reach of the […]
FinCEN provides further SAR Clarity
On January 19, 2021, FinCEN issued Answers to Frequently Asked Questions Regarding Suspicious Activity Reporting and Other Anti-Money Laundering Considerations. The answers to seven questions were provided by FinCEN in response to recent Bank Secrecy Act Advisory Group (BSAAG) recommendations, as described in more detail in FinCEN’s Advance Notice of Proposed Rulemaking (ANPRM) on Anti-Money […]
