Compliance Matters Archives - Page 33 of 50

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/BSA and CFT threats. The vulnerabilities in the U.S.A. related to AML/BSA and CFT are

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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 BSA 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

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

February 2020

An OFAC investigation is 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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Financial Institutions and the FCPA

January 2020

The Foreign Corrupt Practices Act (FCPA) prohibits payment of bribes to foreign officials to assist with obtaining or retaining business. It requires companies whose securities are listed in the US to maintain books and records that accurately and fairly reflect

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Can you identify a Misappropriation Scheme?

December 2019

Misappropriation is the use of property or funds of another person for an unauthorized purpose. In misappropriation, the perpetrator steals or misuses an organization’s belongings and resources; usually without force. The organization’s assets can be misappropriated by an employee, a

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Payers and Payees have Obligations to Comply with Backup Withholding

December 2019

Backup Withholding requires a payer to “withhold tax” from payments that are not otherwise subject to withholding. A Taxpayer (payee) may be subject to Backup Withholding if it: • fails to provide a correct taxpayer identification number (TIN) when required,