Category: Anti-Money Laundering

More Targeting of Real Estate Transactions by FinCEN

The US Financial Crimes Enforcement Network has started to look closely at cash purchases of expensive real estate as a possible source of money laundering. In January, FinCEN issued two Geographic Targeting Orders, one for New York and one for Miami. Now more metropolitan areas are in FinCEN’s sights. According to the press release, FinCEN has been

New Anti-Money Laundering Rules

The U.S. Treasury Department’s Financial Crimes Enforcement Network’s new customer due diligence rule requires covered financial institutions to collect information on the significant beneficial owners of customers that are legal entities. For a private fund manager, the rule is not explicitly applicable. The term ‘‘covered financial institution’’ refers to: (i) Banks; (ii) brokers or dealers in

A $81 Million Dollar Hole in Anti-Money Laundering Laws

I’m vastly understating that number. We know that thieves planned to run that much through the Philippines gambling establishments. It’s a clear case of appeasing a local industry by writing loopholes in legislation. A month ago, thieves began looting Bangladesh’s account at the New York Federal Reserve. The transfer of the money had been “fully

A Small Step Forward in Real Estate Anti-Money Laundering

Real estate in the United States has been rumored to be an interesting place for hiding money. In particular, the US Treasury is concerned about illegal money getting filtered through US real estate. Until now, FinCEN has mostly relied on anti-money laundering protections on real estate transactions involving lending. FinCEN is now looking at vulnerabilities

Proposed Anti-Money Laundering Regulations for Investment Advisers and Fund Managers

After years of talking about it, the Financial Crimes Enforcement Network (FinCEN) issued a proposed a rule requiring certain investment advisers to establish anti-money laundering programs and report suspicious activity to FinCEN. The new regulations propose to include investment advisers in the general definition of “financial institution,” which would require them to file Currency Transaction

Upcoming Anti-Money Laundering Rules for Private Funds

The Treasury’s Financial Crimes Enforcement Network has been toying with how to impose anti-money laundering standards on private funds and investment advisers for years. There is rumbling from the White House Office of Management and Budget that it approved proposed new regulation. A notice of rulemaking was dropped a few years ago. The thought then

Anti-Money Laundering Regulations are Coming for Private Funds

Investment advisers and private funds have largely not been under the strict regulatory requirements under Bank Secrecy Act. The rationale is that the custody requirements impose a custody account and the custodian is subject to those rules. It looks like things are going to change. U.S. Treasury Undersecretary for Terrorism and Financial Intelligence David Cohen

Kleptocracy Asset Recovery Initiative

Last week, the son and heir-apparent to the president of Equatorial Guinea agreed to give up $34 million in assets as part of a settlement with the U.S. government over corruption claims. This was the latest attack by the Department of Justice’s Kleptocracy Asset Recovery Initiative. According to the Wall Street Journal, the Kleptocracy Asset