Aml Rightsource

The Financial Crimes Enforcement Network (FinCEN) issued an alert focused on human smuggling along the southwest board of the US. John and Elliot review the major elements of the alert – including SAR filing guidance, red flags, and the difference between human smuggling and human trafficking. They also discuss the importance of financial services companies partnering with law enforcement to identify and prevent the terrible global crime.

The Eurasia Group, a consultancy focusing on political risk, has published its Top Risks - 2023. John and Elliot look at the purpose of the report and how it can be helpful to the financial crime compliance community in assessing and managing risk. They also discuss some of the specific risks called out in the report.

The primary US bank regulators - the Federal Reserve, FDIC, and OCC - issued a joint statement on crypto-asset risks to banking organizations. The statement lists several risks on which the regulators are focusing. John and Elliot discuss some of the risks and speculate on where regulators may be heading in this space.

This episode originally aired on July 29, 2022. The Financial Action Task Force (FATF) recently issued updated Guidance for a Risk-Based Approach to the Real Estate Sector. The updated guidance focuses on the importance of member countries to bring the real estate sector into their money laundering/terrorist financing regimes. John and Elliot discuss the guidance, including the breadth of its coverage, the need for understanding and training of real estate professionals, and how the timing of the guidance intersects with FinCEN’s request for information about the sector.

This episode originally aired on October 7, 2022. This week, the Basel Institute on Governance published its 2022 AML Index. The index assesses countries’ money laundering and terrorist financing risks and capacity to counter them. John and Elliot chat about how the index is constructed, what it says about the state of the global response to these risks, and other key take-aways from this year’s report.

The US Department of Justice and the Securities and Exchange Commission have announced resolution of charges against Danske Bank. The Bank pled guilty to fraud on US banks and agreed to forfeit $2 billion. It also agreed to settle related claims by the SEC. John and Elliot discuss the details of Danske Bank’s activities, which went on between 2008 to 2016. They also talk about how this case illustrates some of the risks that arise in correspondent banking relationships and the vigilance needed to manage those risks.

It has been a busy week for US government pronouncements on national security and terrorism. The Secretary of the Department of Homeland Security gave a speech at the Center for Strategic and International Studies and the majority staff of the Senate Committee on Homeland Security & Governmental Affairs issued a report on The Rising Threat of Domestic Terrorism. The remarks and the report each look at the challenges faced by governments in identifying and responding to terrorist threats and how to deal with the changing threat landscape. John and Elliot look at key points of the speech and the report. They discuss the increasing risks presented by domestic terrorism, the recommendations in the report, and the evolving view at DHS on the dangers we face and how partnerships among government agencies, international partners, and the private sector are critical to long-term success.

Former FBI Supervisory Special Agent on the International Corruption Unit Debra LaPrevotte discusses her career work investigating global corruption and its clear impact on communities. She is currently on a new podcast, “A Nation For Thieves” that delves into kleptocrats, notorious corrupt countries and how ill gotten gains are recovered by law enforcement and their partners.

The White House has published a Fact Sheet: Summit for Democracy: Progress in the Year of Action. It discusses activities taken since the first Summit for Democracy, held a year ago. The White House also announced a second Summit to be held in March 2023. A key goal of the first summit was curbing corruption. John and Elliot look at the progress made on this initiative, how corruption impacts the health of democratic nations, and other actions taken in the last year.

This episode originally aired on June 17, 2022.  FinCEN has issued updated guidance on Elder Financial Exploitation (EFE). The new Advisory looks at the increasing volume of thefts and scams targeted at the elderly and includes both behavioral and financial red flags. John and Elliot discuss the growing problem of EFE, some of the key messages in the Advisory, and efforts by financial service providers to detect and deter these frauds and thefts.

This week The US Treasury issued a report, Assessing the Impact of New Entrant Non-bank Firms on Competition in Consumer Finance Markets. The report examines the current state of innovation and competition between banks and non-bank financial service providers and makes several recommendations. John and Elliot discuss key aspects of the report and the recommendations. They also talk about how the recent collapse of the cryptocurrency exchange FTX may influence the approach of legislators and regulators going forward.

The US Treasury and its Office of Foreign Assets Control (OFAC) have announced new sanctions against a number of individuals and entities involved in supplying illicit fentanyl and other illegal substances. The action was coordinated with the Netherlands and the UK. John and Elliot discuss the new sanctions and the importance of the multi-lateral cooperation which led to them.

The Financial Crime Enforcement Network (FinCEN) has issued its Ransomware Trends for the second half of 2021. John and Elliot look at the process that FinCEN used in its financial trend analysis and discuss some of the conclusions in the report, including that a significant number of ransomware attacks have some connection to actors in Russia.

Kateryna Boguslavska, PhD, Project Manager Basel AML Index at the Basel Institute on Governance, discusses the 2022 AML Index and some examples of recent metrics from Eastern Europe and other regions. Dr. Boguslavska also covers the importance of “effectiveness” in understanding jurisdictional risks. View the 2022 report here - https://baselgovernance.org/basel-aml-index

The Center for Strategic and International Studies has released a report on Mitigating Financial Access Challenges. The report focuses on ways to overcome the difficulty faced by NGOs trying to transfer humanitarian funding to areas subject to sanctions or active counterterrorism measures. John and Elliot discuss the continued impact of de-risking, some of the prior work done on the problem, and examine some of the proposals to improve financial access laid out in the report.

AMLRS Advisory Board Member Nicolas Choules-Burbidge, formerly a senior executive at the Office of the Superintendent of Financial Institutions (OSFI) in Canada, where he started and oversaw the AML/CFT and Compliance Division (AMLC) for 15 years, discusses the 2021-2022 OSFI Report to Parliament and his views on AML supervision in Canada.

Jeff Pearlman, NY Times Best Selling Author of nine books and author of a new book, “The Last Folk Hero” about Bo Jackson, discusses the recent fraud in Mississippi with public funds that involves Brett Favre and his view on the challenge of local journalism today. https://jeffpearlman.com/

Jeff Pearlman, NY Times Best Selling Author of nine books and author of a new book, “The Last Folk Hero” about Bo Jackson, discusses the recent fraud in Mississippi with public funds that involves Brett Favre and his view on the challenge of local journalism today. https://jeffpearlman.com/

Homeland Security Investigations has launched Operation Boiling Point an initiative to curb organized retail crime and cargo theft. The effort brings together public and private organizations. John and Elliot discuss the importance of the focus on this challenge which impacts many levels of the economy. They also chat about the role for the financial crime compliance community in these activities.

This week the Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN) issued enforcement actions against Bittrex, Inc., a virtual currency exchange. John and Elliot discuss the details of the two actions, including the general AML program failures and ineffective sanctions compliance efforts. They also talk about how other financial service providers can use the orders to check the status of their own sanctions and AML compliance programs.