On 2/24/2021, the Financial Crimes Enforcement Network (FinCEN) issued Advisory FIN-2021-A002 that discusses detecting, and reporting financial crimes related to Economic Impact Payments. The advisory contains descriptions of EIP fraud, 14 associated red flag indicators, and information on reporting suspicious activity, and is part of a series published by FinCEN on COVID-19-related frauds and criminal activity.

On 1/19/2021, the FDIC, Federal Reserve, FinCEN, NCUA, and OCC jointly issued responses to frequently asked questions (FAQs) regarding suspicious activity reporting and other AML considerations for financial institutions that are required to submit Suspicious Activity Reports (SARs).

On 1/15/2021, FinCEN issued a “Notice of Proposed Rulemaking; Reopening of Comment Period” to allow more time for comments to be received from their December 23, 2020 Notice of Proposed Rulemaking which requested feedback for potential new rules on certain transactions involving convertible virtual currency or digital assets with legal tender status. The comment period is reopened for 15 days for comments on the proposed reporting requirements and for 45 days for comments on the proposed requirements to report counterparty information and the proposed recordkeeping requirements. Written comments are now therefore due with respect to the proposed reporting requirements (except with respect to reporting of counterparty information) on February 1, 2021, and with respect to all other aspects of the proposed rule on March 1, 2021.

On 1/15/21, the Financial Crimes Enforcement Network (FinCEN) announced that Capital One was assessed a $390,000,000 civil money penalty for engaging in both “willful and negligent violations of the Bank Secrecy Act (BSA) and its implementing regulations.” According to their release, FinCEN determined and Capital One admitted to willfully failing to implement and maintain an effective Anti-Money Laundering (AML) program to guard against money laundering. Capital One also admitted that it willfully failed to file thousands of suspicious activity reports (SARs), and negligently failed to file thousands of Currency Transaction Reports (CTRs), with respect to a particular business unit known as the Check Cashing Group.

On 12/28/2020, the Financial Crimes Enforcement Network (FinCEN) issued a notice to alert financial institutions about the potential for fraud, ransomware attacks, or similar types of criminal activity related to COVID-19 vaccines and their distribution. This Notice also provides specific instructions for filing Suspicious Activity Reports (SARs) regarding such suspicious activity related to COVID-19 vaccines and their distribution.

On December 23, 2020, the National Credit Union Administration (NCUA) Board issued a notice of proposed rulemaking that would permit the NCUA to issue, on a case-by-case basis, exemptions from SAR filing requirements to federally insured credit unions, when the exemption is consistent with safe and sound practices and can improve the effectiveness and efficiency of Bank Secrecy Act reporting. The proposed rule would also make it possible for the NCUA to grant exemptions, in conjunction with the Financial Crimes Enforcement Network, to federally insured credit unions that develop innovative solutions to meet Bank Secrecy Act requirements.

On 12/18/2020, the Financial Crimes Enforcement Network (FinCEN) requested comments on a new proposed requirements for certain transactions involving convertible virtual currency (CVC) or digital assets with legal tender status. Under the proposal, banks and money services businesses (MSBs) would be required to submit reports, keep records, and verify the identity of customers in relation to transactions above certain thresholds involving CVC/LTDA wallets not hosted by a financial institution (also known as “unhosted wallets”) or CVC/LTDA wallets hosted by a financial institution in certain jurisdictions identified by FinCEN.