The Office of Foreign Assets Control published new guidance specific to the securities industry on 11/06/2008: Opening Securities and Futures Accounts from an OFAC Perspective. A strong OFAC compliance program consists of procedures that are similar to those found in a brokerage firm’s Customer Identification Program (“CIP”). Firms should use risk-based measures for verifying the … Read more »
Category: Anti-Money Laundering
Corporate Governance of Public Web Sites
Jane K. Storero and Yelena Barychev of The Legal Intelligencer and Law.com authored an article that the system of reviewing and monitoring information posted on a company Web site should be part of the disclosure controls included in the enterprise-wide risk management system established by the company: Corporate Governance of Public Web Sites. This article … Read more »
FATF Guidance for Legal Professionals
The Financial Action Task Force published RBA Guidance for Legal Professionals. (October 23, 2008) The report outlines the Risk Based Approach to combating money laundering and terrorist financing for lawyers and law firms. Read more »
FATF on Money Laundering and Terrorist Financing Through the Real Estate Sector
The Financial Action Task Force published their report on Money Laundering & Terrorist Financing Thorugh the Real Estate Sector (June 29, 2007). I was disappointed in the report. I have a history of structuring complex real estate transactions. The report did little to help distinguish between legitimate and illegitimate structures. All of the structures and … Read more »
Sovereign Wealth Funds That Are Part of the IWG and Santiago Principles
The following sovereign wealth funds are part of the Internal Working Group of Soverign Wealth Funds and the Santiago Principles: Australia The Future Fund Azerbaijan State Oil Fund of the Republic of Azerbaijan Botswana Pula Fund Canada Alberta Heritage Savings Trust Fund Chile Economic and Social Stabilization Fund / Pension Reserve Fund China China Investment … Read more »
The Santiago Principles
The International Working Group of Sovereign Wealth Funds created a set of 24 best practices called the Generally Accepted Principles and Practices (GAPP) or the Santiago Principles: GAPP 1. Principle The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s). GAPP 1.1 Subprinciple The … Read more »
Committee on Foreign Investment in the United States
The Foreign Investment and National Security Act of 2007, Pub. L. 110-49, which amends section 721 of the Defense Production Act of 1950 (50 USC §2170) authorizes the President to review merger, acquisitions and takeovers by or with any foreign person which could result in foreign control of any person engaged in interstate commerce in … Read more »
Sovereign Wealth Funds Adopt Voluntary Best Practices
Adam O. Emmerich of Wachtell Lipton Rosen & Katz put together a summary published on The Harvard Law School Corporate Governance Blog on the Santiago Principles and the potential impact of these on investments by sovereign wealth funds: Sovereign Wealth Funds Adopt Voluntary Best Practices. Intended to demonstrate that SWFs are soundly established and that … Read more »
Effects of FinCEN’s Withdrawal of Rule-Making on Anti-Money Laundering
Last week, FinCEN withdrew a proposed rulemaking for anti-moneylaundering procedures for unregistered investment companies. [See: FinCEN Withdraws Proposed Rulemaking for Unregistered Investment Companies] FinCEN warned that they have not abandoned plans for rule-making. They merely felt that after six years the notice had gone stale. FinCEN may come out with AML program rule proposal, but would … Read more »
FinCEN Rulemaking
The Financial Crimes Enforcement Network has put up a page dedicated to their pending rulemakings: FinCEN Pending Rulemakings. Read more »