Banks, Credit Unions and Other Financial Insitutions as Deputized Law Enforcement

From Anti-Money Laundering to Immigration Enforcement: Time to Reassess the Law Enforcement Role of Banks, Credit Unions and Other Financial Intermediaries.  “Credit unions are deeply committed to the fight against crime, but it is important to recognize we are not law enforcement agents and we have certain fundamental limitations.” This statement, made by the Senior Vice President and General Counsel of a major U.S. credit union in testimony before Congress in July 2017,[1] reflects the legal and regulatory requirements and expectations that banks, credit unions, money services businesses, and other financial intermediaries can, must, and should play a role in combatting the misuse of the financial system for illicit purposes.… Read More

Continue Reading

Basel Committee Clarifies Guidance on Countering Money Laundering and Terrorism Financing in Correspondent Banking

Guidelines on Sound management of risks related to money laundering and financing of terrorism Snapshot Update June 7, 2017 Today the Bank for International Settlements' Basel Committee on Banking Supervision (BCBS) issued "Guidelines on Sound management of risks related to money laundering and financing of terrorism" (the "Guidelines"). The Guidelines were issued "to describe how banks should include money laundering (ML) and financing of terrorism (FT) risks within their overall risk management." With respect to foreign correspondent banking, the Guidelines' clarifications are designed to respond to the withdrawal of correspondent banking relationships (derisking) that have adversely affected banks and, in some cases, entire regions. Accordingly, Annex 2 of the Guidelines includes a… Read More Continue Reading

Congressional Hearing on Terrorism Financing Probes Bank Secrecy Act Data Effectiveness, Potential BSA Amendments

Congressional Hearing on Terrorism Finance Probes Bank Secrecy Act Data Processing Effectiveness, Lack of Beneficial Ownership Transparency, and Potential BSA and Patriot Act Amendments Business Update |  April 28, 2017 | Author: Hdeel Abdelhady | Download Full Update On April 27, 2017, I attended a Congressional hearing on “Safeguarding the Financial System from Terrorist Financing,” held by the House Committee on Financial Services’ Subcommittee on Terrorism and Illicit Finance (the “Subcommittee”). The sole witness was Mr. Jamal El-Hindi, Acting Director of the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury charged with protecting the financial system from money laundering, terrorism financing and other illicit activities.… Read More Continue Reading

Cross Compliance for Financial Institutions: Anti-Corruption – Anti-Money Laundering Nexus

Enforcement authorities in the US and Asia reportedly are investigating financial institutions for potentially corrupt employment and business relationships with family members of government officials. The investigations underscore policy links between anti-corruption and anti-money laundering regimes where dealings with Politically Exposed Persons (PEPs) are involved. This article, published by Hdeel Abdelhady in Butterworths Journal of Banking and Financial Law, briefly discusses the pending investigations and the anti-corruption-AML policy nexus, and suggests, with respect to PEPs and more generally, that financial institutions facilitate fluidity in their compliance programs to allow for the sharing of information and adaptation of compliance protocols across (sometimes impermeable) internal functional and disciplinary lines. Read more... Continue Reading