The Financial Crimes Enforcement Network, Treasury’s financial intelligence unit has been trying to impose anti-money laundering obligations on private funds for years. On September 26, 2002, FinCEN issued a notice of proposed rulemaking, proposing to require unregistered investment companies to establish and implement anti-money laundering programs. (Anti-Money Laundering Programs for Unregistered Investment Companies, 67 FR … Read more »
Tag: FinCEN
Egypt, Mubarak and Politically Exposed Persons
Egypt’s top prosecutor requested the freezing of the foreign assets of ousted president Hosni Mubarak and his family. I expect that is one step in trying to figure out how much of Mubarak’s fortune was derived from corruption. I’ve read reports that his assets could be worth $3 billion and upwards of $70 billion. That … Read more »
New Anti-Money Laundering Guidance
Money Laundering is bad and financial institutions need to have internal controls policies, procedures and processes to identify higher-risk accounts and monitor the activity. At the core of an anti-money laundering program is that an institution must know its customers and the risks presented by its customers. The program becomes more difficult when the customer … Read more »
FinCEN and Address Confidentiality Programs
How do you open a bank account when you are hiding from domestic violence? The rules implementing the Bank Secrecy Act require a financial institution to implement a Customer Identification Program that includes procedures that enable it to form a reasonable belief that it knows the true identity of its customers. The rules also require … Read more »
Financial Crimes Enforcement Network 2008 Annual Report
The Financial Crimes Enforcement Network 2008 Annual Report (.pdf) has been released. Outcome Goal 1: Financial systems resistant to abuse by money launderers, terrorists and their financial supporters, and other perpetrators of financial crime Outcome Goal 2: Detection and deterrence of money laundering, terrorism financing, and other illicit activity. Outcome Goal 3: Efficient management, safeguarding, … Read more »
Opening Securities and Futures Accounts from an OFAC Perspective
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 »
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 »
FinCEN Programs for Mutual Funds
Here are links to the text of some FinCEN program for mutual funds: 31 CFR 103.130 Anti-money laundering programs for mutual funds(.pdf) each mutual fund shall develop and implement a written anti-money laundering program reasonably designed to prevent the mutual fund from being used for money laundering or the financing of terrorist activities and to … Read more »
FinCEN Withdraws Proposed Rulemaking for Unregistered Investment Companies
On September 26, 2002, Financial Crimes Enforcement Network issued a notice of proposed rulemaking, proposing to require unregistered investment companies” to establish and implement anti-money laundering programs. (Anti-Money Laundering Programs for Unregistered Investment Companies, 67 FR 60617 (Sep. 26, 2002)) In that notice of proposed rulemaking, FinCEN proposed to define the term “unregistered investment company” … Read more »