AML Conversations

This week FinCEN’s Acting Director, Him Das, delivered remarks at the ABA/ABA Financial Crimes Enforcement Conference. In the speech, he spoke about the shifts in emphasis of Bank Secrecy Act regulations over the past 30-plus years. John and Elliot discuss those shifts and look at the three new areas of focus outlined in Acting Director Das’s remarks: new threats, new innovations, and new partnerships.

This week was the 1st anniversary of the insurrection at the US Capitol. John and Elliot focus their conversation on what the financial crime compliance community can do to identify the monetary footprint of potential domestic terrorist acts. They discuss the recent statements by the President, Vice President, and the Attorney General and urge listeners to report transaction activity that fits the patterns of possible terrorist activity.

Former FBI TFOS Director Dennis Lormel discusses the ramifications of the January 6th  2021 attacks on the US Capital on society and the AML community. Dennis covers the financial warning signs to the radicalization that leads to domestic terrorism.

This episode originally aired on October 15th, 2021. In August 2021, Global Financial Integrity published Acres of Money Laundering – Why U.S. Real Estate is a Kleptocrat’s Dream. The report compares the real estate money laundering regulations across the G7 countries. John and Elliot discuss the report’s findings on the use of the US commercial real estate market to launder funds and the roles played in the transactions by various gatekeepers. They also call out some of the key recommendations in the report. A link to the report -gfintegrity.org/report/acres-of-m…leptocrats-dream/ Here's a great article that discusses real estate and the need for real reforms in Australian AML regulations - www.amlrightsource.com/news/real-est…l-regulations

The FATF has issued it’s second 12-month review of its revised standards for virtual assets and virtual asset providers. John Byrne, Executive Vice President and Elliot Berman, Creative Director of the AML RightSource staff, sit down and discuss the key elements of the review and its implications for global compliance in this emerging area.

Kit Conklin, Director, Global Client Engagement at kharon.com discusses the importance of understanding and complying with the export control laws, the risks to national security and the need for collaboration with those charged with AML and Sanctions laws.

This week FinCEN issued an Request for Information and Comment (RFI) on a Review of Bank Secrecy Act Regulations and Guidance. The RFI asks for comments ways to streamline, modernize, and update the AML/CFT regime of the United States. John and Elliot discuss some key questions in the RFI and talk about the importance of making comments on this other regulatory proposals.

This week FinCEN issued an Advance Notice of Proposed Rulemaking (ANPRM) on Anti-Money Laundering Regulations for Real Estate Transactions and a Notice Proposed Rulemaking on Beneficial Ownership Information Reporting Requirements. The ANPRM asks for comments on how to bring US real estate transactions more fully under BSA recordkeeping and reporting requirements. The Proposal on Beneficial Ownership Information asks for comments on a rule requiring reporting by various entities of their beneficial owners. John and Elliot discuss some key points of both issuances and talk about the importance of making comments on these other regulatory proposals.

In this installment of AML Conversations, John Byrne speaks with Jim Lee, Chief of the Internal Revenue Service Criminal Investigation Division, about IRS CI. During their conversation they discuss the recent IRS CI Annual Report, the importance of public private partnerships, and the value of CTR data to successful investigations. They also review recent investigations into COVID-19 related fraud, money laundering enforcement, and tax compliance enforcement cases.

Last week the Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency issued a Joint Statement on Crypto-Asset Policy Sprint Initiative and Next Steps. The joint statement highlights the current activity by the agencies to understand the impact of crypto-assets on insured depository institutions and the areas the agencies are reviewing for possible future guidance or regulation. John and Elliot discuss some of the key elements of the report, including the need for a common understanding of what crypto-assets are and how they may impact bank capital.