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 […]
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 […]
A Forensic Accountant digs beneath the surface and finds what is missing
The decision to hire a Forensic Accountant can be a gamble. Not all possess critical characteristics such as being able to see beyond what is immediately in front of them utilizing a panoramic approach. Traditionally, a CPA looks at historical data, and focuses on the” fairness” of financial statement presentations and the preparation of tax […]
