George Jones

FinCEN today withdrew its finding that Latvian ABLV Bank, AS (ABLV) is a financial institution of primary money laundering concern. I remember Treasury engaging with Latvian leaders and regulators about ABLV, highlighting to them that the bank basically institutionalized money laundering as a banking practice. FinCEN in 2018 issued a notice of proposed rulemaking that detailed the agency's findings and proposed imposing special measure five under section 311, prohibiting covered financial institutions from opening or maintaining in the United States correspondent accounts for, or on behalf of, ABLV. Well, that had its impact. Shortly afterward, the European Central Bank (ECB) determined that ABLV—as well as its subsidiary, ABLV Bank Luxembourg—was failing or likely to fail, withdrew ABLV’s banking license, and the Luxembourg subsidiary was ordered dissolved. The bank itself is in the advanced stage of an irrevocable liquidation process supervised by the Government of Latvia. Furthermore, Latvian authorities have undertaken significant efforts to identify and address past illicit activity facilitated by the bank, resulting in criminal charges against owners of the bank and its senior managers. As a result, FinCEN has determined that ABLV is no longer a financial institution of primary money laundering concern. https://lnkd.in/e3baCh38

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Unlicensed Money Transmission: A Timely Reminder for AML Professionals The recent conviction of a Massachusetts man for money laundering and operating an unlicensed money transmission business highlights the increasing risks surrounding peer-to-peer (P2P) crypto transactions and fiat exchanges. This case, investigated by Homeland Security Investigations (HSI), underscores critical compliance gaps that financial crime professionals must address in today’s evolving landscape. Key insights for BSA/AML professionals: 1️⃣ Unlicensed Money Transmission Risks: The individual facilitated over $2.4M in transactions without proper registration, sidestepping AML/CFT obligations. This raises red flags about P2P exchange misuse, often a gateway for laundering proceeds of crimes like fraud and drug trafficking. 2️⃣ Regulatory Emphasis: Regulatory bodies, including FinCEN, are tightening scrutiny on unregistered money service businesses (MSBs). Ensuring compliance with state and federal licensing requirements is vital for preventing exposure to such illicit activities. 3️⃣ Crypto Compliance Challenges: While crypto platforms are often in the spotlight, this case reminds us that fiat-to-crypto gateways also demand robust monitoring and due diligence. BSA/AML programs must adapt to capture the nuances of hybrid transactions. What can financial crime professionals do? • Stay ahead of evolving typologies in the P2P and crypto space. • Strengthen investigations into unregistered MSBs through transaction monitoring and enhanced due diligence. • Advocate for cross-sector collaboration to close compliance gaps. As financial crimes become increasingly complex, staying proactive is key. How is your organization addressing the challenges of unlicensed money transmission? #AML #FinancialCrimes #CryptoCompliance #Regulations #BSA https://lnkd.in/gdCKneji

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View a blog exploring the key aspects of FINRA compliance, focusing primarily on anti-money laundering (AML) regulations, including best practices for compliance teams. https://lnkd.in/e-S3h_CG #AML #compliance

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Community Banks and BSA/AML Compliance: The OCC’s Consent Order with Clear Fork Bank Proves Regulators Aren’t Only Focused on Large Financial Institutions http://dlvr.it/TGh4Dl

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On April 18, the Financial Crimes Enforcement Network (FinCEN) issued 16 new FAQs, and updated 2 more, providing additional guidance and information related to the beneficial ownership information reporting requirement that went into effect on January 1. View them here: https://ow.ly/eJYx50RArkQ #cta #corporatetransparencyact #boi #beneficialownership #faqs #compliance

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On April 18, the Financial Crimes Enforcement Network (FinCEN) issued 16 new FAQs, and updated 2 more, providing additional guidance and information related to the beneficial ownership information reporting requirement that went into effect on January 1. View them here: https://ow.ly/eJYx50RArkQ #cta #corporatetransparencyact #boi #beneficialownership #faqs #compliance

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On April 18, the Financial Crimes Enforcement Network (FinCEN) issued 16 new FAQs, and updated 2 more, providing additional guidance and information related to the beneficial ownership information reporting requirement that went into effect on January 1. View them here: https://ow.ly/eJYx50RArkQ #cta #corporatetransparencyact #boi #beneficialownership #faqs #compliance

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Community Banks and BSA/AML Compliance: The OCC’s Consent Order with Clear Fork Bank Proves Regulators Aren’t Only Focused on Large Financial Institutions https://bit.ly/41sk1Wi #Texas #Money #Tax

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Financial crimes rules ... what are FinCEN's priorities? Twice a year, federal government agencies update their regulatory agendas, which is their way of setting out their priorities when it comes to the rules they're required to write. The Spring 2024 agenda was published on July 5, 2024. I've focused on FinCEN's rulemaking priorities. What's new, noteworthy, or not there? Information sharing protections - four years ago FinCEN promised a proposed rule (1506-AB43) to better protect information sharing under section 314(b) of the USA PATRIOT Act. They "anticipated" publishing a proposed rule by September 2020. Over the next five semi-annual agendas they kicked that anticipated date out to June 2023. They finally ditched it in the Spring 2023 agenda, but just brought it back, and added information sharing protections under 314(a) and for the FinCEN Exchange under section 6103 of the AML Act. What about the two proposed rules to bring residential and commercial real estate transactions/professionals under the BSA? FinCEN published a proposed rule in February 2024: they are now anticipating a final rule for residential real estate by August 2024. That makes sense: on July 8th they sent it to the OIRA for regulatory review. What's more interesting, though, is that they've dropped the commercial real estate proposed rule from their regulatory agenda. At least for now. What about the rule to implement the whistleblower provisions of the AMLA? The AML Act had no deadline for this rule. FinCEN's Spring 2023 agenda called for a proposed rule by July 2023. The Fall 2023 regulatory agenda called for a proposed rule by July 2024. This Spring 2024 regulatory agenda calls for a proposed rule by September 2024. What about rules for investment advisers? FinCEN anticipates a FINAL program and SAR reporting rule by August 2024, and they're reviewing comments on the proposed Customer Identification Program (CIP) rule for investment advisers. The Corporate Transparency Act requires FinCEN to revise the current Customer Due Diligence rule within one year of opening up the BOI database. So a final rule is due January 1, 2025. Last fall FinCEN anticipated (promised?) a proposed rule by June 2024. They've now promised a proposed rule by October 2024: with a standard 60-day comment period, they'll miss their due date of January 2025. What's not there? Three rules contemplated by the AML Act of 2020 that did not come with due dates have been conspicuously absent from FinCEN's regulatory agendas: CTR/SAR streamlining (section 6204), CTR/SAR thresholds (section 6205), and testing methods/model validation (section 6209). FinCEN has a lot on its plate, so I don't fault them if they're thinking, "Hey, if Congress didn't include a due date, we'll just let these three rules slide for a while. We'll pick them up again when we have some more time ...".

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Tune in and subscribe to This Week in AML for the updates that matter!Tune in and subscribe to This Week in AML for the updates that actually matter. Don't miss out on the insights that keep you ahead in the fight against financial crime!

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Tune in and subscribe to This Week in AML for the updates that matter!Tune in and subscribe to This Week in AML for the updates that actually matter. Don't miss out on the insights that keep you ahead in the fight against financial crime!

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TD Bank’s record $3 billion penalty and subsequent compliance overhaul serves as a stark reminder of the critical importance of robust Anti-Money Laundering (AML) practices in financial services. 🚩 Proactivity in Risk Management: Ignoring red flags can lead to significant legal, financial, and reputational consequences. Proactively identifying and addressing risks is non-negotiable. 🔒 Investing in Compliance Culture: TD is reportedly doubling down on employee training, leveraging real-world simulations to better equip teams to identify illicit activities. Compliance starts with education—ensuring every team member understands their role in safeguarding the organization. 💪 Leadership Commitment: Hiring experienced compliance leaders and dedicating $500 million to tighten controls shows that turning around a compliance culture requires both resources and leadership focus. 🤖 Technology and Monitoring: The appointment of independent monitors underscores the importance of transparent oversight. For companies in tech, finance, or any data-driven field, ensuring systems can flag high-risk activity is essential. This case underscores that compliance isn’t just a box to check; it’s an ongoing commitment to ethical practices and customer trust. At Synthesized, we’re reminded that robust data systems and transparent processes are key enablers of this commitment. #Compliance #AML #RiskManagement #Leadership #Synthesized https://lnkd.in/edZEWNYG

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Financial Crimes Enforcement Network, US Treasury published a notice for FIs to operationalize threats related to timeshare #fraud and Mexico-based TCOs like CJNG. This was issued jointly with #OFAC and the #FBI. I certainly didn't have a 14 page document re: timeshare fraud and Mexican drug cartels on my 2024 BINGO card, but here we are. See the third point for 6 things you can do right now to act on this Notice. Here are the highlights, more comments in the attached pdf - 1) This notice will primarily be impactful if all #banks, credit unions, #trust companies, investors, brokers, and fiduciaries provide customer education. Pgs. 3-5 offer great keywords to use in your outreach. 2) After customer education, the typologies are pretty limited in operationalability (not a word, I know). This is where I will say again - if your #AML system does not allow you to operationalize advisories and notices from FinCEN, get a new one! 3) It is time to take a temp check of your transactional threat landscape as it relates to this notice - look at the following: a) age of the customer (elderly) and repetitive wires to Mexico; b) wires to Mexico with the terms "fees" and "taxes" in description; c) wires to Mexico going to the same/similar beneficiary but from different 60+ aged customers; d) search beneficiaries of wires to Mexico with the terms "travel", "real estate", "closing", "title", "realty", and "broker" (English & Spanish); e) wires from trust or #retirement accounts to Mexico; and f) internal transfers from trust/retirement accounts to checking then wires to Mexico. 4) Once that exercise is done, you will know how much exposure you have. 5) If there are any positive matches to # 3 above, do additional research on the businesses to see if they are newly formed. 6) Remember to use 314b info sharing with other US FIs! 7) If your #communitybank or CU is based in a large retirement community, you have a duty to at least brief your customers on this risk. Some things I'm confused by - pg. 9 states "U.S. financial institutions to continue to use, and potentially expand, their existing processes to collect and share information with foreign financial institutions in furtherance of investigations that involve cross-border activity"... what?? The reference is a footnote from Gacki's speech in May. But I am not aware of any legal mechanism by which US FIs (not the Tier1s) can share with info with a non-US FI? Please someone tell me I'm wrong. #ifollowdirtymoney

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💡 What Bank of America’s Case Teaches Us About AML Compliance 💡 The OCC’s recent enforcement action against Bank of America (https://lnkd.in/ei7gT9Am) is a stark reminder of the critical importance of strong AML and sanctions compliance programmes. Deficiencies in suspicious activity reporting, customer due diligence, and compliance programme governance can lead to serious regulatory action—and reputational harm. Over my career, I’ve seen how even large institutions can overlook such gaps in internal controls, governance, testing, and training. Traditional compliance audits or narrowly focused AML framework reviews can sometimes also fail to uncover the issues. These issues often hide in plain sight until regulators highlight them. But this doesn’t have to be the case. That's why my colleagues and I have developed the FinCrime HealthCheck. As a comprehensive assessment that goes beyond traditional compliance audits and maturity assessments, the FinCrime HealthCheck can uncover vulnerabilities before they escalate into enforcement actions. It evaluates the presence of policies and their effectiveness across functions, teams, and geographies. For instance: 🕵‍♀️ Are customer due diligence processes consistently defined, applied, monitored, and optimised? 🛗 Do colleagues know how and when to escalate issues, and can they do so promptly? 🫂 Does the company's compliance culture allow staff to raise concerns safely? 🏋 Are training and testing robust enough to address emerging risks? This proactive approach helps identify weaknesses early, providing a clear roadmap for improvement. It also ensures that firms remain aligned with regulatory expectations while protecting their reputation. The takeaway for AML professionals is clear: Regular, thorough reviews of compliance frameworks are essential to stay ahead. Let’s learn from these lessons and build stronger, more resilient compliance programmes. What steps are you taking to assess and strengthen your AML controls? #AML #Compliance #RiskManagement #FinancialCrime #Governance #ContinuousImprovement

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