Links in “FinCEN”

FinCEN’s proposed changes to its due diligence rules could increase credit unions’ regulatory burden without providing a counterbalance of benefits. CUNA is urging FinCEN to focus on strengthening BSA/AML rules on non-financial institutions. [10/6/14]

Beyond the issue of the cost vs. benefits of FinCEN's proposed customer due diligence expansion is the issue that it would provide state and federal law enforcement unfettered surveillance access to small- and medium-sized businesses in a way that exceeds U.S. corporate law requirements and supersedes congressional authority or mandate. [10/6/14]

As part of an anti-money laundering crackdown against drug cartels, FinCEN placed the Los Angeles Fashion District under a Geographic Targeting Order (GTO) requiring increased reporting and recordkeeping requirements for certain trades and businesses. [10/3/14]

The agencies are requesting comments on customer due diligence (FinCEN), fixed assets (NCUA), and Regulation C (CFPB). These comments are due during the month of October. [9/22/14]

Although many legitimate businesses might participate in such activities, a new FinCEN advisory lists potential "red flags" for credit unions to detect human trafficking or smuggling, such as the frequent exchange of small-denomination for larger-denomination bills by a customer who is not in a cash-intensive industry and multiple wire transfers (generally below $3,000 reporting threshold) sent from many different locations in the US to a common beneficiary in a city on the Mexican–United States border, among others. See also. [9/15/14]

One of the root causes of problems in a financial institution’s Bank Secrecy Act and anti-money laundering programs is a weak culture of compliance. In this video, AffirmX’s Senior Analyst Coppelia Padgett explains what a compliance culture is and what to do if it is lacking at your financial institution, especially in light of FinCEN's recent advisory. [9/5/14]

FinCEN has imposed a civil money penalty against a money services business, BPI Inc. The MSB began receiving citations in 2005, but did not adequately address examiners' findings of deficiencies in its AML system including: internal controls, independent testing, training, and suspicious activity reporting. FinCEN's director Jennifer Calvery explains that the civil money penalty "highlights that money services businesses cannot ignore their anti-money laundering responsibilities, or their examiners." [8/29/14]

In the attempt to make his casino more hospitable, George Que agreed with a number of high-end gamblers, including some undercover agents, to not file CTRs or SARs. As a result, FinCEN has permanently barred Mr. Que from working within the financial industry due to his willful violations of the BSA. Oh, and there was a $5,000 civil money penalty. [8/21/14]

FinCEN’s By the Numbers, a quarterly publication that tracks trends in the nation’s suspicious activity report filings, has a new name, SAR Stats. But it’s not just the name that’s changed. In this episode of Risk Watch, AdvisX Analyst Cody Knudsen walks us through what’s new in SAR Stats and how you can put its information to good use for your financial institution. [8/15/14]

With a proposed rule and multiple advisories and announcements over the past few months, FinCEN has kept extremely busy. It can be a handful to remember, but this article provides a summary of FinCEN's hottest announcements this summer. [8/15/14]