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 […]
Get Started with Reducing your 2020 Tax bill now
Get Started with Reducing your 2020 Tax bill now. Article appeared at the Daily Business Review on 12/29/20
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
The Anti-Money Laundering Act of 2020 may be a Game-Changer for Compliance Professionals
On December 2, 2020, the ‘‘William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021’’ was passed by the U.S. House of Representatives. The Act includes DIVISION F (ANTI-MONEY LAUNDERING). This Division is cited as the ‘‘Anti-Money Laundering Act of 2020’’. Of significance is the legislative requirement that Corporations and Limited Liability […]
IRS Agents Use Methods of Proof
The IRS has tools inside of its Internal Revenue Manual (“IRM”) available to its agents for determining a Taxpayer’s taxable income as well as documenting its adjustments and corrections through what it calls “Methods of Proof”. The IRM describes seven Methods of Proof for use by its agents who are pursuing its civil or criminal […]
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 […]
“Reasonable Cause” When Dealing with the IRS
On November 5, 2020, the IRS removed the Delinquent Information Submission Procedure Program from its Offshore Compliance Options Menu. Before the removal of this program, a US Taxpayer could file a “delinquent” international information tax return with what is known as a Reasonable Cause Statement from which the IRS could waive non-compliance penalties if a […]
What can I do if I made a willful mistake and willfully failed to comply with my tax obligations?
Voluntary compliance is the foundation of the US tax system. Although the majority of US Taxpayers voluntarily comply with their obligations, some fail to do so (willful mistake). Submitting a voluntary disclosure via the Voluntary Disclosure Practice may resolve a Taxpayer’s non-compliance and limit exposure to criminal prosecution The Voluntary Disclosure Practice (VDP) is managed […]
IRS Commissioner Hylton sends an important message to high income non-filers
On December 3, 2020, the IRS published “How the IRS prioritizes compliance work on high income non-filers through national and international efforts” in the Closer Look. It addresses how the IRS is in pursuit of high-income non-filers as an important service and gives its respect to many Americans who pay their taxes. The IRS’s sentiment […]
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 […]
The BSA CASTS A WIDER NET
On September 15, 2020, FinCEN issued a Final Rule stating that Banks lacking a Federal Functional Regulator will be required to establish and implement AML programs including policies and procedures, a dedicated compliance officer, employee training, an independent audit function and continue to be subject to a Customer Identification Program (CIP) along with Beneficial Ownership […]
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 […]
