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

Proposed Rule Requires Banks to Collect Beneficial Ownership Information

PDF Download   Key Points Properly understood, “bank secrecy,” in the U.S. legal and regulatory context, facilitates disclosure; it does not afford secrecy. The proposed rule’s customer due diligence requirements fit within the U.S. Bank Secrecy Act/Anti-Money Laundering framework. The beneficial ownership requirement of the proposed rule, if adopted in final form, would to an extent align U.S. customer due diligence mandates with the beneficial ownership provisions of the FATF Recommendations, as revised in 2012. If adopted in final rule form, the proposed rule will take effect as a final rule one year after its effective date. Publication Information: Hdeel Abdelhady, Butterworths Journal of International Banking and Financial Law, November… Read More