Loans for Allowable Uses under the PAYCHECK PROTECTION PROGRAM may be Forgiven
The enactment of the Coronavirus Aid, Relief, and Economic Security (CARES) Act includes the Paycheck Protection Program (PPP). The PAYCHECK PROTECTION PROGRAM authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. The Small Business Administration (SBA) has the authority to provide 100% federally backed loans […]
Understanding the Economic Impact Payments (Recovery Rebates)
The distribution of economic impact payments will begin in the next three weeks (weeks of April 6th, 13th and 20th of 2020). According to the IRS, the payments will be distributed automatically, with no action required for most people. The IRS will calculate and automatically send the economic impact payment to those eligible. Tax filers […]
Florida small businesses can “bridge the gap” between the time damage is incurred and when a business secures other financial resources
Florida currently has the Florida Small Business Emergency Bridge Loan Program available to small business owners located in all Florida counties statewide that experienced economic damage as a result of COVID-19. The loans are characterized as short-term, interest-free (12 months) working capital loans intended to “bridge the gap”. Meaning, between the time a major catastrophe […]
Compliance Officers and the Growing Risk of Personal Liability
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 remediate violations of laws, regulations, and internal policies and rules. As a result, a number […]
The U.S.A Continues to be AML/BSA “Vulnerable”
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 centered around: Lack of a requirement to collect entity beneficial ownership information Law enforcement efforts […]
Did you know that OFAC and the IRS have an Understanding?
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 U.S. economic sanctions. The sharing of information under the MOU is intended to: Help the […]
What is Next after BSA turns 50?
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 terrorism (AML/CFT) regime and make it more effective and efficient. • Increase transparency and close […]
What can trigger an OFAC investigation and what can an OFAC Investigation lead to?
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 • Information OFAC receives from other U.S. agencies investigating other types of violations. • A […]
FBAR Penalties: Is it per Account or per Violation?
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 over at least one financial account located outside the United States, AND the aggregate value […]
Are there conflicting signals from IRS as it relates to Section 965?
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 untaxed foreign earnings of certain specified foreign corporations as if those earnings had been repatriated […]
Deficiencies or Weaknesses in an OFAC Sanctions Compliance Program can lead to OFAC Administrative Actions
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 updating a Sanctions Compliance Program (SCP). OFAC Compliance Applies to all “U.S. Persons” This includes […]
Who are you partnering with for your Financial Institution’s BSA/AML Independent Testing?
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 (5) Pillars of AML: (1) A system of internal controls to assure ongoing compliance; (2) […]
