On 7/7/2020, the Financial Crimes Enforcement Network (FinCEN) issued advisory FIN-2020-A003 to alert financial institutions to potential indicators of imposter scams and money mule schemes, which are two forms of consumer fraud that have been discovered so far during the COVID-19 pandemic. This advisory contains descriptions of imposter scams and money mule schemes, financial red flag indicators for both, and information on reporting suspicious activity.

On 6/29/2020, FinCEN issued guidance (FIN-2020-G001) to address BSA/AML requirements for hemp-related business customers. This guidance supplements the December 3, 2019 interagency statement on providing financial services to customers engaged in hemp-related businesses and focuses on the due diligence for financial institutions servicing hemp-related businesses. The guidance also explains the type of information and documentation financial institutions can collect from hemp-related businesses to comply with BSA/AML rules.

On 5/26/2020, FinCEN published a notice and request for comment in the Federal Register. While no substantial changes to SAR reporting are included in the issuance, FinCEN is requesting comments regarding FinCENs updated burden estimate for SARs. Comments must be received on or before July 27, 2020.

On 5/18/20, FinCEN issued an advisory (FIN-2020-A002) on medical scams related to COVID-19. The 9-page advisory was issued to alert financial institutions to rising medical scams related to the COVID-19 pandemic while also providing descriptions of COVID-19-related medical scams, case studies, red flags, and information on reporting suspicious activity. FinCEN explains that this will be the first of several advisories they plan to issue concerning financial crimes related to the COVID-19 pandemic. While this advisory contains a number of things, it is important to point out that…

On April 30, 2020, the Financial Action Task Force (FATF) issued a mutual evaluation report with United Arab Emirates. In their release, FATF explains that UAE recently strengthened its legal framework to fight money laundering and terrorist financing but, as a major global financial center and trading hub, it must take urgent action to effectively stop the criminal financial flows that it attracts.

On April 30, 2020, OFAC issued a “Finding of Violation” to American Express Travel Related Services Company (“Amex”) for violations resulting from processing transactions for a person designated as a “Specially Designated National” (i.e. SDN list). In their release, OFAC explains that they found that Amex issued a prepaid card to, and processed 41 transactions totaling $35,246.82 on behalf of, Gerhard Wisser, who was on the SDN list. OFAC explains that these violations were the result of human error and screening system defects and Amex remediated and disclosed the violations to OFAC. Fortunately for Amex, there is no monetary penalty associated with a Finding of Violation.

On 4/20/2020, OFAC issued a statement to encourage persons to communicate OFAC compliance concerns related to the coronavirus disease (COVID-19). Specifically, OFAC encourages persons, including financial institutions and other businesses, affected by the COVID-19 global pandemic to contact OFAC as soon as practicable if the person believes it may experience delays in its ability to meet deadlines associated with regulatory requirements administered by OFAC. This includes requirements related to filing blocking and reject reports within ten business days, responses to administrative subpoenas issued​, reports required by general or specific licenses, or any other required reports or submissions.

On April 15, 2020, the FFIEC released a 43 page update to their BSA/AML Exam Manual. This long-awaited update includes many revisions designed to emphasize and enhance the regulators’ risk-focused approach to BSA/AML supervision. Click this link to see a summary of the major changes to the BSA/AML Exam Manual.

On 4/9/20, the Office of Foreign Assets Control published their annual inflation adjustments in the Federal Register. The rule, which is effective on April 9, 2020, is an annual requirements of OFAC and changes the amounts of 5 main civil money penalties.

FinCEN has released a FAQ regarding PPP loans which aligns with the FAQ issued by the SBA.