Welcome to the Compliance Cohort. We are a group of compliance professionals working to make compliance easier. Our goal is to take complex compliance concepts and put them in simple terms that apply to the real world. We are glad you have found us and look forward to collaborating in the future.
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All in BSA
In this Compliance Clip (video), Adam discusses options for reporting a SAR to the board of directors when the SAR is on a director. He also discusses what to do if the SAR is on a member of senior management, like the president of the financial institution. This is a must-watch video for any BSA professional.
On January 18, 2023, FinCEN issued an order that identifies the virtual currency exchange Bitzlato Limited (Bitzlato) as a “primary money laundering concern” in connection with Russian illicit finance. This is the first order issued pursuant to section 9714(a) of the Combating Russian Money Laundering Act, as amended, and highlights the serious threat that business operations that facilitate and support Russian illicit finance pose to U.S. national security and the integrity of the U.S. financial sector.
On January 13, 2023, FinCEN issued an alert which aims to better aid financial institutions in the detection of financial activity related to human smuggling along the southwest border of the United States. The alert provides trends and typologies specifically related to human smuggling occurring along the SW border. It also provides red flag indicators to help financial institutions better identify transactions potentially related to human smuggling and reminds financial institutions of their Bank Secrecy Act (BSA) reporting obligations.
On five Wednesdays in February and March 2023, the CFPB will be hosting a series of webinars regarding approaches to combatting elder financial exploitation. Interested persons are invited to join the webinars by registering through the online form provided by the CFPB.
On December 22, 2022, FinCEN issued a Financial Trend Analysis on the financial activity of Russian oligarchs. The report focuses on trends seen in Bank Secrecy Act (BSA) reports filed involving Russian oligarchs, high-ranking officials, and sanctioned individuals. In addition, the report highlights the value of BSA data filed by regulated financial institutions.
On November 30, 2022, the FATF released its first ever report on money laundering from fentanyl and synthetic opioids with recommendations for countering financial flows from the illicit drug trade, which claims thousands of lives around the world. The report, which was co-led by the United States and Canada, looks at the way proceeds are laundered from synthetic opioids trafficking.
On October 26, 2022, FinCEN announced the renewal and expansion of its Geographic Targeting Orders (GTOs) that require U.S. title insurance companies to identify the natural persons behind shell companies used in all-cash purchases of residential real estate. The terms of the GTOs are effective beginning October 27, 2022, and ending on April 24, 2023.
In this 4th annual Halloween special Compliance Clip (video), Adam talks about trade-based money laundering and environmental money laundering. This is a BSA topic.
On November 1, 2022, FinCEN issued its most recent Financial Trend Analysis of ransomware-related Bank Secrecy Act (BSA) filings for 2021, indicating that ransomware continued to pose a significant threat to U.S. critical infrastructure sectors, businesses, and the public. FinCEN’s report focuses on ransomware trends in BSA filings from July-December 2021, and addresses the extent to which a substantial number of ransomware attacks appear to be connected to actors in Russia.
On October 31, 2022, FinCEN issued a press release to inform U.S. financial institutions that the Financial Action Task Force (FATF), an intergovernmental body that establishes international standards to combat money laundering, counter the financing of terrorism, and combat weapons of mass destruction proliferation financing (AML/CFT/CPF), has issued public statements updating its lists of jurisdictions with strategic AML/CFT/CPF deficiencies following its plenary meeting this month. U.S. financial institutions should consider the FATF’s stance toward these jurisdictions when reviewing their obligations and risk-based policies, procedures, and practices.
