Links in “FinCEN”

The Financial Crimes Enforcement Network has published a Notice and Request for Comments on proposed revisions to the Currency Transaction Report (CTR) to allow for alternative reporting models that have developed since the current CTR was created in 2011. This notice does not propose any new regulatory requirements or changes to the requirements related to currency transaction reporting, but rather seeks input on technical matters designed to improve the layout and reporting of the CTR. Written comments on the proposal will be accepted through April 4, 2016. [2/3/16]

FinCEN took 15 months to assess comments on its proposed customer due diligence rules, then dumped its publication in the Federal Register on Christmas Eve with only a 30-day public comment period. The proposed rule would require financial institutions to identify beneficial owners who hold a 25% or greater ownership stake in the legal entity. [1/28/16]

CUNA writes in its comment letter to FinCEN that the agency has employed a flawed approach when it determined that the regulatory costs for complying with a proposed rule that would require financial institutions to identify and perform enhanced due diligence on “beneficial owners” is outweighed by the benefits to society. CUNA also takes issue with other aspects of the proposed rule. [1/25/16]

FinCEN has identified Income tax refund fraud as its number one scam and says that credit unions and other financial institutions are key to identifying and stopping this kind of fraud. This article identifies the red flags to watch for and FinCEN recommends if tax refund fraud is suspected that the credit union should not only file a SAR, when applicable, but also alert its local IRS Criminal Investigation Field Office. [1/25/16]

The Financial Crimes Enforcement Network (FinCEN) is going after “all cash” high end property purchases in New York and Miami. FinCEN will now require reporting on all purchases of residential property in Miami-Dade County over $1 million dollars and the New York Borough of Manhattan over $3 million made without a bank loan and using cash or other monetary instruments [1/21/15].

FinCEN-issued geographical targeting orders, effective March 1^st, will require certain title insurance companies in Manhattan and Miami to identify the beneficial owners in high-end, all-cash residential real estate purchases – and these current GTOs are likely to be followed with ones for other major metropolitan areas. [1/20/16]

You investigate. You write your suspicious activity report. You click submit. Then what happens to your SAR? The Financial Crimes Enforcement Network, otherwise known as FinCEN, released its 2014 annual report of Suspicious Activity Report stats. It includes an overview of what happens to SARs after they are reported.

FinCEN issued Geographic Targeting Orders (GTO) that will temporarily require certain U.S. title insurance companies to identify the natural persons behind companies used to pay “all cash” for high-end residential real estate in the Borough of Manhattan in New York City, New York, and Miami-Dade County, Florida. The order follows a series of actions involving detection of real estate and potential money laundering. [1/15/16]

While the overall number of Suspicious Activity Reports associated with crowdfunding is relatively low, the Financial Crimes Enforcement Network has found that mentions of crowdfunding in SAR filings increased 171% just through the first half of 2014 compared to all of 2013. Crowdfunding has become a new favorite tool in the hands of money launderers. Here are the warning signs you should be aware of. [1/12/16]

Four bank and credit union associations join together to tell FinCEN that a 30-day comment window is not enough to adequately address its call for input on pending changes to customer due diligence requirements. [1/11/16]