Compliance Officers and the Growing Risk of Personal Liability

March 2020

On February 04, 2020, the NEW YORK CITY BAR ASSOCIATION COMPLIANCE COMMITTEE issued a REPORT ON CHIEF COMPLIANCE OFFICER LIABILITY IN THE FINANCIAL SECTOR.  The Report discusses the governmental view that Compliance Officers are the “gatekeepers” that prevent, detect, and

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Oficiales de Cumplimiento y el Creciente Riesgo de la Responsabilidad Personal

March 2020

El 4 de febrero de 2020, el COMITÉ DE CUMPLIMIENTO DE EL COLEGIO DE ABOGADOS  DE LA CIUDAD DE NUEVA YORK emitió un INFORME SOBRE LA RESPONSABILIDAD DE LOS OFICIALES DE CUMPLIMIENTO EN EL SECTOR FINANCIERO.   El Informe analiza la

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¿Qué puede provocar una investigación OFAC y a qué puede conducir una investigación OFAC?

March 2020

Las investigaciones OFAC a menudo se provocan como resultado de: • Informes generados por instituciones financieras de los EE. UU. que han bloqueado o rechazado una transacción en base a una presunta violación de sanciones • Una auto divulgación de

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The U.S.A Continues to be AML/BSA “Vulnerable”

March 2020

The U.S. Department of the Treasury 2020 Strategy (National Strategy for Combating Terrorist and Other Illicit Financing released on February 6, 2020) describes ongoing significant AML/CFT threats.  The vulnerabilities in the U.S.A. related to AML/CFT are centered around: Lack of

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Did you know that OFAC and the IRS have an Understanding?

February 2020

In November, 2019 the IRS and the Office of Foreign Assets Control (OFAC) signed a Memorandum of Understanding (MOU).  The MOU outlines an understanding between the IRS and OFAC with respect to reviews conducted by the IRS for compliance with

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What is Next after BSA turns 50?

February 2020

On 2/6/2020, the U.S. Department of the Treasury issued the 2020 National Strategy for Combating Terrorist and Other Illicit Financing (2020 Strategy).  The purpose of the 2020 Strategy is to: • Modernize the U.S. anti-money laundering/countering the financing of terrorism

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What can trigger an OFAC investigation and what can an OFAC Investigation lead to?

February 2020

OFAC investigations are often triggered as a result of: • Reports that are generated by U.S. Financial Institutions which have blocked or rejected a transaction based on a suspected sanctions violation • A self-disclosure of an OFAC apparent violation •

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FBAR Penalties: Is it per Account or per Violation?

February 2020

U.S. Taxpayers (includes a citizen, permanent resident, corporation, partnership, limited liability company, trust and estate) are required to file a Report of Foreign Bank and Financial Accounts (FBAR) if they have: a financial interest in or signature or other authority

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Are there conflicting signals from IRS as it relates to Section 965?

February 2020

IRC Section 965 (Treatment of Deferred Foreign Income Upon Transition to Participation Exemption System of Taxation) was part of the TCJA enacted on December 22, 2017.  The sections requires a United States shareholder to pay a transition tax on the

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Deficiencies or Weaknesses in an OFAC Sanctions Compliance Program can lead to OFAC Administrative Actions

January 2020

 On May 2, 2019, OFAC (Office of Foreign assets Control) published guidance titled “A Framework for OFAC Compliance Commitments”.  The purpose of the OFAC Framework guidance is to encourage a “risk-based” approach to “Sanctions Compliance” through developing, implementing, and routinely

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Who are you partnering with for your Financial Institution’s BSA/AML Independent Testing?

January 2020

Financial Institutions ought to design and evaluate compliance programs to meet BSA/AML requirements and to satisfy Bank Examiner expectations. A Financial Institution’s Compliance Programs must comply with the requirements under Title 31 and, at a minimum, must include the five

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Instituciones Financieras y el FCPA

January 2020

La Ley de Prácticas Corruptas en el Extranjero (“Foreign Corrupt Practices Act – FCPA”) prohíbe el pago de sobornos a funcionarios extranjeros para ayudar a obtener o retener negocios.  Exige que las empresas cuyos valores se cotizan en los EE.

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