FinCEN’s beneficial ownership reporting rule takes effect on January 1, 2024. This rule requires certain entities to file with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) reports that identify two categories of individuals: the beneficial owners of the entity, and individuals who have filed an application with specified governmental authorities to … Continue Reading
Earlier this year, we published a post on the first Tri-Seal Compliance Note (“First Note”) issued by the United States Department of Justice’s (“DOJ”) National Security Division (“NSD”), the Department of Commerce’s Bureau of Industry and Security (“BIS”), and the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”).[1] When issuing the First Note, … Continue Reading
Our colleagues at Capital Thinking have been monitoring this week’s veto by President Biden of a Republican-led effort to overturn a Department of Labor rule on environmental, social, and governance (ESG) guidelines for retirement accounts. Given the topic, and how it may potentially lead to House and Senate investigations on ESG initiatives or other corporate initiatives, … Continue Reading
On March 2, 2023, the Department of Justice announced several new initiatives that prioritize the investigation and enforcement of economic sanctions evasion, export control violations, and similar economic crimes. Deputy Attorney General Lisa Monaco announced a “surge of resources to address a troubling trend: the intersection of corporate crime and national security.” In particular, DOJ’s … Continue Reading
The Consolidated Appropriations Act, 2023 amended the Bank Secrecy Act’s whistleblower provisions, setting a floor on the monetary award a whistleblower may receive, allowing whistleblowers to receive awards relating to successful enforcement of certain economic sanctions statutes such as the International Emergency Economic Powers Act, and establishing a fund from which to pay whistleblowers. Following … Continue Reading
This year has brought remarkable change around the globe – including new administrations, changing regulatory approaches, conflicts, and rapidly evolving global sanctions. Staying on top of how these changes impact businesses, individuals and sovereign entities is a challenge that Squire Patton Boggs’ Government Investigations & White Collar team is dedicated to helping our clients manage. … Continue Reading
We recently shared an alert covering The National Defense Authorization Act for Fiscal Year 2021 (NDAA), which became law on January 1, 2021. The NDAA included significant reforms to the U.S. anti-money laundering and countering the financing of terrorism regime. Division F of the NDAA consists of the Anti-Money Laundering Act of 2020, which includes … Continue Reading
On September 16, 2022, the U.S. Department of the Treasury (“Treasury”) published three reports in response to a March 2022 Executive Order concerning the development of digital assets. The reports address the future of money and payments; implications for consumers, investors, and businesses; and the illicit financing risks of digital assets. Secretary Yellen described the … Continue Reading
On September 16, 2022, the U.S. Department of Justice (“DoJ”) issued a report on The Role of Law Enforcement in Detecting, Investigating, and Prosecuting Criminal Activity Related to Digital Assets (the “Report”), which will have a significant and wide-ranging impact on the U.S. government’s ability to investigate, prosecute, and disrupt crimes involving digital assets. The … Continue Reading
The Wolfsberg Group, an association of thirteen global banks which develops frameworks and guidance for the management of financial crime risks, particularly with respect to KYC, AML, and CFT policies, recently released a set of frequently asked questions on negative news screening and other forms of adverse information searches. Negative news screening can assist financial … Continue Reading
The National Defense Authorization Act for Fiscal Year 2021 (“NDAA”) became law early in 2021, after a congressional override of then-President Trump’s veto. Division F of the NDAA consists of the Anti-Money Laundering Act of 2020 (“AMLA”). The AMLA expands numerous Bank Secrecy Act (“BSA”) requirements, and amends the BSA’s definition of “financial institution” to include persons … Continue Reading
On January 25, 2022, the Financial Crimes Enforcement Network (“FinCEN”) issued its anticipated Notice of Proposed Rulemaking seeking public comment on a proposed pilot program that would permit certain financial institutions to share suspicious activity reports (“SARs”) and information related to SARs with the institutions’ foreign branches, subsidiaries, and affiliates (the “NPRM”). The proposed rule is … Continue Reading
The National Defense Authorization Act for Fiscal Year 2021 became law early in 2021, after a congressional override of then-President Trump’s veto. Division F of the NDAA consists of the Anti-Money Laundering Act of 2020 (“AMLA”). The AMLA expands numerous Bank Secrecy Act (“BSA”) requirements, and FinCEN has continued to issue guidance, reports, and proposed … Continue Reading
The National Defense Authorization Act for Fiscal Year 2021 (“NDAA”) became law earlier this year, after a congressional override of then-President Trump’s veto. Division F of the NDAA consists of the Anti-Money Laundering Act of 2020 (“AMLA”). The AMLA expands numerous Bank Secrecy Act (“BSA”) requirements, and FinCEN has been active in the first sixth … Continue Reading
Two U.S. authorities recently announced actions against four individuals and numerous entities associated with BitMEX, an online trading platform for futures contracts and other derivative products tied to the value of cryptocurrencies. Both actions allege that BitMEX failed to put in place required anti-money laundering programs and procedures, and serve as a reminder that institutions … Continue Reading
On September 14, 2020, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) issued a final rule (“Rule”) requiring the minimum standards for anti-money laundering programs for certain institutions lacking a Federal functional regulator. The Rule applies to banks that lack a Federal functional regulator, including, but not limited to, private banks, privately … Continue Reading
Whistleblowers watch from inside when a business receives stimulus money. Whistleblowers, with their unique access to business operations, follow the money to learn whether the business abides by the strings attached to that money. Whistleblowers look for an opportunity to cash in on what they consider fraudulent conduct. What’s a business to do?… Continue Reading
Financial institutions and other relevant entities should take notice of two recent developments in anti-money laundering and counter-terrorism financing initiatives. First, European Union member states had to transpose the EU’s Fifth Anti-Money Laundering Directive by January 10, 2020—that is, member states had to implement certain rules into their respective national legislations by that date. Second, … Continue Reading
In 2019, the US Department of Justice (DOJ) and other federal regulators continued to emphasize the importance of effective compliance programs, self-disclosure of violations of the law and cooperation with regulators during investigations. In a new client alert out this week, we shed light on some of the updated guidance from various government agencies released last year, landmark state and … Continue Reading
The National Security Division recently revised its policy on cooperation credit in order to align with other components of the U.S. Department of Justice. The changes, which are designed to “reassure companies,” are discussed in our client alert available here.… Continue Reading
South Africa’s Financial Intelligence Centre (FIC) recently issued a public compliance communication on anti-money laundering and combating the financing of terrorism relating to non-profit organizations (NPOs). The publication aimed to create “awareness within the NPO sector around the vulnerabilities that NPOs face,” and sets out Financial Action Task Force (FATF) principles relating to NPOs.… Continue Reading
Following a ruling issued last week by a federal judge in Texas, ExxonMobil Corporation (“ExxonMobil”) will not have to pay a previously issued penalty for contracting with Russia’s state-owned PJSC Rosneft Oil Company (“Rosneft”), since it was not provided fair notice by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) that … Continue Reading
In certain circumstances, a company’s statement that one of its employees poses a significant and unacceptable compliance risk is not defamatory. According to a recent federal appellate decision, such a statement (made by a company while complying with a deferred prosecution agreement relating to Foreign Corrupt Practices Act (FCPA) violations) had no “provably false factual … Continue Reading
The Department of Justice (DOJ) recently intervened in a False Claims Act (FCA) lawsuit involving allegations of kickbacks for prescription drug copays. The DOJ says the lawsuit makes “clear that the Department will hold accountable drug companies that pay illegal kickbacks to facilitate increased drug prices.” The DOJ “will not allow drug companies to use … Continue Reading
