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

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Hdeel Abdelhady Discussed the NYDFS Habib Bank Enforcement Action

MassPoint’s Founder and Principal, Hdeel Abdelhady, discussed the legal significance and potential commercial implications of the NYDFS’ enforcement action against Habib Bank at a time of correspondent banking derisking. Ms. Abdelhady stated that: “at any time, the loss a New York banking license and direct access to the U.S. financial system would be devastating, but the potential implications of the lost license may be greater now given that U.S. banks have steadily exited or limited foreign correspondent relationships in recent years, leaving foreign banks cut off from or with limited or costly access to the U.S. dollar and financial system.” Read Ms. Abdelhady’s full comments here in this comprehensive piece, by… Read More

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