by Optima Compass | Mar 25, 2016 | Alerts
The Financial Crimes Enforcement Network (FinCEN) today imposed a civil money penalty against Thriftway Food Mart and its owner and compliance officer, Kustandy Rayyan, for willful and repeated violations of the Bank Secrecy Act (BSA). Mr. Rayyan has admitted to conduct that violated the BSA and has consented to a civil money penalty in the amount of $10,000. News Release: https://www.fincen.gov/news_room/nr/pdf/20160324.pdf Enforcement Action:...
by Optima Compass | Jan 29, 2016 | Alerts
The Director of the Financial Crimes Enforcement Network (“FinCEN”), U.S. Department of the Treasury, hereby issues a Geographic Targeting Order (“Order”) requiring [title insurance company] to collect and report information about the persons involved in certain residential real estate transactions, as further described in this Order. This Order supersedes the order applicable to [title insurance company] relating to certain transactions in the Borough of Manhattan in New York, New York that was executed by the Director of FinCEN on January 6, 2016. To read the entire article, please click here:...
by Optima Compass | Aug 26, 2015 | Alerts
On August 25, 2015 FinCEN proposed AML regulations for Investment Advisers that continue the path traced by FinCEN Director Jennifer Shasky Calvery to identify and correct AML deficiencies in areas previously ignored despite identified risks. If adopted, the requirements proposed for Investment Advisers would mirror those imposed on other financial service providers. We note that not all Investment Advisers have been lacking in the AML control area. Some, including some Optima clients, have opted to proactively apply controls that they felt were required by the risks they identified in their individual operations. As a whole, FinCEN’s proposed rule will level the playing field between Investment Advisors and other institutions and within the Investment Adviser sector itself. If history can be relied upon to predict the future, the rule will also create a more secure financial system, although some Investment Advisers experience growing pains in the process. FinCEN’s Official Announcement The Financial Crimes Enforcement Network (FinCEN) today proposed a rule requiring certain investment advisers to establish anti-money laundering (AML) programs and report suspicious activity to FinCEN pursuant to the Bank Secrecy Act (BSA). FinCEN also proposed to include investment advisers in the general definition of “financial institution,” which, among other things, would require them to file Currency Transaction Reports (CTRs) and keep records relating to the transmittal of funds. News Release: http://www.fincen.gov/news_room/nr/pdf/20150825.pdf Proposed Rule:...
by Optima Compass | Apr 22, 2015 | Alerts
On April 21, 2015 FinCEN issued another Geographic Targeted Order (“GTO”) in the Miami, Florida area to address Trade Based Money Laundering (“TBML”) activity involving drug cartels. This GTO follows a similar one issued against Los Angeles based businesses on October 2, 2014. In practical terms, the GTOs impose reporting requirements on businesses that mirror anti-money laundering (“AML”) and Bank Secrecy Act (“BSA”) requirements applicable to financial institutions. The specific requirement is a reduction of the threshold amount required for businesses to file Form 8300. Instead of filing Form 8300 upon the receipt of more than $10,000 in cash, the requirement applies to receipt of cash of $3,000 or more. Significantly, businesses are required to aggregate multiple transactions from the same source that accumulate said amount in one banking day. Most businesses that are not financial institutions lack a reliable, automated mechanism or tool to track and properly comply with the GTO. However, through Optima’s AML Compass businesses can comply with the monitoring, detection, reporting and record retention requirements that are embedded in the GTO. Judging by the basis for FinCEN’s actions in Miami and Los Angeles, it is likely that other GTOs will soon follow in additional jurisdictions. FinCEN’s Official Announcement The Financial Crimes Enforcement Network (FinCEN) issued a Geographic Targeting Order (GTO) today to about 700 Miami businesses to shed light on cash transactions that may be tied to trade-based money laundering schemes. These complex schemes are a primary method used by drug cartels, including the Sinaloa and Los Zetas, to launder their illicit proceeds. FinCEN’s order is aimed at disrupting the illicit financial infrastructure upon...
by Optima Compass | Dec 18, 2014 | Alerts
Individual Accountability Emphasized in Civil Actions Click here to see Press Release Actual Court Documents can be seen at: http://www.fincen.gov/news_room/ea/files/Haider_Assessment.pdf http://www.fincen.gov/news_room/ea/files/USAO_SDNY_Complaint.pdf WASHINGTON, DC – The Financial Crimes Enforcement Network (FinCEN) today issued a $1 million civil money penalty(CMP) against Mr. Thomas E. Haider for failing to ensure that hiscompany abided by the anti-money laundering (AML) provisions of the Bank Secrecy Act(BSA). Concurrently, FinCEN’s representative, the U.S. Attorney’s Office for the Southern District of New York (SDNY), today filed a complaint in U.S. District Court that seeks to enforce the penalty and to enjoin Mr. Haider from employment in the financial industry. This CMP is the product of a joint investigation by FinCEN and the SDNY. From 2003 to 2008, Mr. Haider was the Chief Compliance Officer for MoneyGram International Inc. Mr. Haider oversaw MoneyGram’s Fraud Department, which collected thousands of complaints from consumers who were victims of fraudulent schemes. Mr. Haider also headed MoneyGram’s AML Compliance Department, which was charged with ensuring compliance with requirements under the BSA designed to protect the financial system against money laundering and terrorist finance. “In my job, I’ve met hundreds of compliance officers and I know them to be some of the most dedicated and trustworthy professionals in the financial industry,” said FinCEN Director Jennifer Shasky Calvery. “FinCEN and our law enforcement partners greatly depend on their judgment and their diligence in our common fight against money laundering, fraud, and terrorist finance. Mr. Haider’s failures are an affront to his peers and to his profession. With his willful violations, he created an environment where fraud and money laundering thrived and dirty money rampaged...
