Related Money Laundering Case Relying on ATM Cash-Outs and BEC Schemes Also Unsealed On February 17, the Department of Justice unsealed a sprawling indictment against three members of North Korea’s military intelligence agency – known as the Reconnaissance General Bureau – for their role in a series of brazen cyberattacks, bank thefts and cryptocurrency thefts around the world.  Notably, the indictment builds on charges filed in 2018 against one of the defendants for his alleged…

With the third round of lending through the Paycheck Protection Program (“PPP”) in full swing, the Small Business Administration (“SBA”) – administrator of the PPP – has developed new guidance in consultation with the United States Department of the Treasury (“Treasury”).  The February 1, 2021 FAQs specifically address how lenders can meet some of their Bank Secrecy Act (“BSA”) obligations when issuing PPP loans. As we previously blogged, the PPP, with its combination of…

Bottom Line: Biden Administration May Revive FinCEN’s Proposed Rule For Investment Advisers Unlike broker-dealers, investment advisers are not currently required to maintain anti-money laundering (“AML”)/counter-terrorist financing (“CTF”) compliance programs under the Bank Secrecy Act (“BSA”), or file Suspicious Activity Reports (“SARs”).  In 2015, during President Obama’s second term, the Financial Crimes Enforcement Network (“FinCEN”) proposed exactly such a rule for certain investment advisers.  Although FinCEN then never moved forward, the stars may be aligning…

Revisions to BSA Will Inform Regulatory Examinations for Years to Come Third Post in an Extended Series on Legislative Changes to BSA/AML Regulatory Regime As we have blogged, the Anti-Money Laundering Act of 2020 (“AMLA”), contains major changes to the Bank Secrecy Act (“BSA”), coupled with other changes relating to money laundering, anti-money laundering (“AML”), counter-terrorism financing (“CTF”) and protecting the U.S. financial system against illicit foreign actors.  In this post, we focus on…

Case Highlights Confidentiality of BSA Reporting and Continued Focus on Real Estate as Money Laundering Tool The Northern District of California granted summary judgment to the Financial Crimes Enforcement Network (“FinCEN”) in a Freedom of Information Act (“FOIA”) case pertaining to an attempt by a group of investigative journalists to obtain information reported to FinCEN on the beneficial owners of high-end real estate.  This case clearly indicates that the Bank Secrecy Act (“BSA”) will continue…

SARs Do Not Need to Be Filed At the First Sign of Potential Problems Honoring “Keep Open” Letters from Law Enforcement Should Not Lead to Criticism On January 19, 2021, the Financial Crimes Enforcement Network (FinCEN), along with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the National Credit Union Administration jointly published Answers to Frequently Asked Questions Regarding Suspicious …

The AMLA Creates a Significant New Source of Risk for Financial Institutions Second Blog Post in an Extended Series on Legislative Changes to the BSA/AML Regulatory Regime As we have blogged, the Anti-Money Laundering Act of 2020 (the “Act”) (part of the National Defense Authorization Act (“NDAA”), passed on January 2, 2021), represents a historic overhaul of the Bank Secrecy Act (“BSA”).  One of the most important changes – and certainly one that has…