Event: Hdeel Abdelhady to Speak on Managing Money Laundering, Trade Sanctions, and Corruption Risks

MassPoint’s Founder and Principal, Hdeel Abdelhady, will speak at a program on managing money laundering, trade sanctions, and corruption risks in business. The program, entitled “Know Your Business Partners: A Must to Managing Money Laundering, Trade Sanctions, and Corruption Risks,” will take place on November 17, 2017 in Washington, D.C. at the American Bar Association Business Law Section’s Fall 2017 Meeting.      

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FinCEN Expands Geographic Targeting Orders

August Geographic Targeting Orders Cover Funds Transfers and Hawaii Luxury Residential Real Estate   On August 22, 2017, the Financial Crimes Enforcement Network (FinCEN) issued revised Geographic Targeting Orders (GTOs) designed to combat money laundering and related financial crimes in select U.S. residential real estate markets. The GTOs further expand the scope of GTOs issued in January 2016, expanded in July 2016, and renewed in February 2017. In tandem with the August GTOs, FinCEN issued an Advisory to Financial Institutions and Real Estate Firms and Professionals (the “Advisory”) and FAQs. This Business Update outlines the key provisions of the August GTO. For information about this Business Update or MassPoint’s related… Read More

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Correspondent Banking and Derisking Update

Financial Stability Board Publishes Action Plan to Address Decline in Correspondent Banking/Derisking Correspondent Banking Update |  July 4, 2017  | Author: Hdeel Abdelhady Ahead of the upcoming G20 meeting, the Financial Stability Board (FSB) published today, July 4, 2017, a progress report on efforts to address the withdrawal of correspondent banking relationships (derisking) and its action plan to assess and address derisking. Among the areas of concern and action items identified by the FSB are remittances and building the capacity of affected respondent bank jurisdictions to effectively identify and counter money laundering, terrorism finance, and other illicit financial activities. Importantly, the FSB has stated that its efforts will focus not just… Read More

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State-Owned Enterprises and Anti-Corruption Enforcement

Anti-Corruption Enforcement and State-Owned Enterprises: Understand Unique Risks and Incentivize Compliance State-owned enterprises (SOEs, including sovereign wealth funds) are prominent players in international business. Given their ownership, SOEs have garnered scrutiny for their lack of transparency and heightened anti-corruption and anti-money laundering risk, as have individual SOE executives and other personnel who qualify as Politically Exposed Persons. In connection with commercial activities, SOEs are not protected in most cases by sovereign immunity. Thus, SOEs can, like their privately-owned counterparts, be subject to foreign legal processes. Given the greater scrutiny around SOEs and some of the high profile enforcement actions involving them directly or indirectly (for example, the 1MDB case), anti-corruption… Read More

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Identifying UAE “Foreign Officials” for Anti-Corruption Compliance Purposes

Identifying UAE “Foreign Officials” for Anti-Corruption Compliance Purposes Companies and other organizations doing business in the UAE or with enterprises owned in part by a UAE Government party at any level (e.g., the federal/union government or a government of one of the country’s constituent emirates (e.g., Dubai, Abu Dhabi, Ras al Khaimah), or entities owned in part by any of them, should be aware that under UAE law, the definition of “public official” (i.e., a government official) includes employees and directors of enterprises in which a UAE Government party holds less than a majority ownership stake and does not, formally or effectively, exercise control. Definition of “Public Official” Under UAE… Read More

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Trump’s Foreign Policy May Further Strain Foreign Correspondent Banking (Derisking)

Download PDF Foreign correspondent banking relationships (FCBRs) have come under strain in recent years as major global and regional banks have de-risked from FCBRs that have posed (or have been perceived to pose) more legal risk and administrative costs than commercial benefits. The de-risking trend and its resulting diminishment of access to legitimate financial services by individual customers, classes of customers, and regions (among others) has raised concern among national governments and multilateral institutions that have, from 2015 most noticeably, conducted studies on de-risking to determine its extent and effects, as well as to identify potential solutions. Regional government and banking associations have sounded alarms about the deleterious effects of de-risking on… Read More Continue Reading

New Rules of Business Conduct Regulation Require Fresh Risk and Compliance Thinking

Traditionally businesses have looked to contractual terms, industry groups, legislatures, regulators and other conventional authorities to identify and manage commercial, legal, and compliance requirements and risks. In today’s interconnected, information rich, and reputation-conscious business world, this model is outdated and insufficient. It creates blind spots that can expose businesses to commercial, legal, and compliance risks from sources that traditional models ignore, misunderstand, or underestimate. Democratization of Business Conduct Standards In the same ways that the internet and social media have enabled non- “establishment” actors to communicate and amplify political messages, these and other tools of the information/new media age have enabled non-traditional actors to effectively influence business conduct standards. As… Read More

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