AML


Bank of America

News Brief

OCC orders Bank of America to shore up BSA/AML, sanctions compliance programs

2024-12-23T19:08:00+00:00By

Bank of America avoided a monetary penalty in agreeing to settle charges with the Treasury Department’s Office of the Comptroller of the Currency but was ordered to shore up previously disclosed deficiencies in its Bank Secrecy Act/anti-money laundering (BSA/AML) and sanctions compliance programs.

USAA

News Brief

OCC hits USAA with third order in five years; places limits on new services, products, membership

2024-12-20T17:39:00+00:00By

USAA Federal Savings Bank has been hit with its third cease and desist order from the Treasury Department’s Office of the Comptroller of the Currency in the past five years for failing to correct unsafe and unsound banking practices.

London cityscape

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U.K. can’t shake reputation of being a conduit to individual, institutional money laundering

2024-12-13T14:55:00+00:00By

London has long had the dubious reputation of being the world’s money laundering capital and it looks like it’s a title it is likely to retain for some time yet.

British pounds

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Overabundance of U.K. AML regulators stretching enforcement resources thin, experts say

2024-12-12T19:59:00+00:00By

The U.K. will struggle to shed its reputation as one of the world’s biggest conduits for dirty money due to a combination of patchy intelligence-sharing and poorly resourced enforcement agencies, experts told Compliance Week.

Treasury Department

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Texas court halts FinCEN beneficial ownership reporting requirements

2024-12-09T14:08:00+00:00By

Business owners can stop preparing their 2025 anti-money laundering reports for the Treasury Department’s Financial Crimes Enforcement Network, according to a Texas court, which ruled the Corporate Transparency Act requirement unconstitutional.

usaa_web

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Whistleblower’s defamation case reveals scope of USAA ‘coverup’

2024-12-06T12:45:00+00:00By

A defamation lawsuit filed by a whistleblower against USAA, which a Florida judge recently dismissed on a technicality, revealed in public court records an estimated 400,000 violations of the Military Lending Act by USAA Federal Savings Bank (USAA Bank), an indirect wholly owned subsidiary of USAA.

sanctions_screening_web

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Evolving sanctions rules make continuous screening, due diligence essential in 2025

2024-12-05T13:00:00+00:00By

The EU and U.K. have rushed to commit themselves to intensifying action on sanctions evasion after U.S. President-elect Donald Trump’s victory, but any compliance managers who believe Trump will make global sanctions compliance easier in 2025 are likely to be disappointed.

Crypto coins

News Brief

U.S. Appeals Court ruling in Tornado Cash case opens door for AML regulatory unwind

2024-12-02T22:55:00+00:00By

In striking down penalties against cryptocurrency mixer Tornado Cash for violating U.S. sanctions, a federal appeals court may have started to chip away at anti-money laundering regulations established by Democrats even before President-elect Donald Trump takes office.

thumbnail_Boeing_Safety

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Top E&C fails of 2024: Boeing, TD Bank, RTX/Raytheon on compliance naughty list

2024-11-27T15:09:00+00:00By

The biggest Compliance Fails of 2024 show the real-world consequences of noncompliance for the companies that faltered, but also for their customers and their employees.

bessent_Treasury_web

News Brief

Trump names Scott Bessent to be Treasury secretary, with a clear deregulation agenda

2024-11-26T14:53:00+00:00By

Hedge fund manager Scott Bessent, named by Donald Trump on Friday as his nominee for Treasury Secretary, has a clear mandate to deregulate the financial markets should he take the helm.

red_flags_web

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Experts explain why red flags can often be ignored due to ‘underlying systematic issues’

2024-11-19T17:28:00+00:00By

Companies spend huge sums on audit, risk management, and compliance to alert them about potential legal issues before they escalate into serious corporate governance failings. There’s only one problem, however–they often misread their own early warning signs or ignore them altogether.

metro_bank_web

News Brief

FCA slaps Metro Bank with $21M fine for inadequate AML monitoring

2024-11-12T20:55:00+00:00By

The U.K. Financial Conduct Authority has fined Metro Bank 16.6 million pounds (U.S. $21 million) for an alleged failure by its automated system to adequately monitor money laundering risks.

TD Bank

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Underfunding of BSA/AML compliance made TD Bank an unwitting partner to cross-border crime

2024-11-05T16:52:00+00:00By

Law enforcement officials stumbled on TD Bank’s role in money laundering while investigating a Mexican drug cartel. They found that the bank’s corporate culture considered compliance, particularly BSA/AML compliance, a low priority. As they dug deeper, authorities discovered that multiple money laundering schemes had infiltrated the bank’s network.

Canada

News Brief

Real estate firm JLL fined by Canada’s FINTRAC for AML, KYC failures

2024-11-04T20:22:00+00:00By

Canada’s anti-money laundering regulator fined Toronto-based real estate firm Jones Lang Lasalle $107,827 Canadian dollars (U.S. $77,632) for six violations of its anti-money laundering rules, after discovering gaps in recordkeeping and reporting requirements for know your customer rules.

TD Bank

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TD Bank fined nearly $3.1B by U.S. regulators for AML compliance failures

2024-10-11T13:44:00+01:00By

TD Bank will pay nearly $3.1 billion in penalties to four U.S. regulators to settle charges that it “chose profits over compliance” when it allowed three money laundering networks to filter more than $670 million in dirty money through the company.

Russian hacker

News Brief

FinCEN, OFAC sanction crypto platforms linked to Russia, cybercrime

2024-09-27T13:36:00+01:00By

U.S. and European law enforcement agencies have announced sanctions against two Russia-linked cryptocurrency platforms in their ongoing chase to snuff out Russian-linked financial platforms that assist cybercriminals.

Wells Fargo NY

News Brief

Wells Fargo agrees with OCC to shore up BSA/AML, sanctions program deficiencies

2024-09-13T15:37:00+01:00By

The Treasury Department’s Office of the Comptroller of the Currency ordered Wells Fargo to make “comprehensive corrective actions” to its Bank Secrecy Act/anti-money laundering and U.S. sanctions programs, along with receive permission from the OCC to offer new products and services or enter new geographic markets with “medium or high” ...

Amsterdam_Web

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An Amsterdam discussion on increased role of CCOs

2024-09-13T12:40:00+01:00By

Compliance Week and its sister organization the International Compliance Association will bring together more than 200 GRC professionals for Compliance Week Europe Oct. 15-16 in Amsterdam to discuss how they’re making sense of the constantly changing regulatory landscape.

LogicGate 300x200

Webcast

CPE Webcast: The acronyms that changed the finance industry: from AML and BSA to KYC and BaaS

2024-09-12T14:00:00+01:00Provided by

In the ever-evolving landscape of finance, governance, risk, and compliance (GRC) have emerged as critical pillars that underpin the stability and growth of financial institutions.

wynn_las_vegas_web

News Brief

DOJ orders Wynn Las Vegas to forfeit $130M over BSA/AML violations

2024-09-10T14:29:00+01:00By

Wynn Las Vegas agreed to forfeit $130 million to settle a range of criminal allegations, including allegedly helping foreign customers hide money transfers and shielding patrons from Bank Secrecy Act and anti-money laundering rules, the Department of Justice said.

U.K. money laundering

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Experts warn U.K. money laundering cases to ‘significantly increase’

2024-09-06T12:00:00+01:00By

The U.K. has an ongoing problem with money laundering, but recent changes to economic crime law and corporate registration requirements could bring more cases to court, according to consultancy KPMG.

Ruchi Kumar Web

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Strengthening BSA/AML defenses: Critical role of ERTs in modern day compliance

2024-09-04T14:15:00+01:00By Ruchi Kumar, CW guest columnist

Enforcement actions in the first half of of 2024 by the Treasury Department’s Financial Crimes Enforcement Network highlight the importance of proactive measures in Bank Secrecy Act compliance rather than just being compliant.

columnist_Sherr

Opinion

Ian Sherr joins Compliance Week as its new editor-in-chief

2024-09-03T13:47:00+01:00By

New Compliance Week Editor-In-Chief Ian Sherr shares his thoughts on where compliance is headed as businesses meet the realities of not just following the rules, but staying ahead of the pace of regulatory change at a global scale. 

FinCEN

News Brief

FinCEN finalizes AML rules for investment advisers, cash real estate transactions

2024-08-30T20:32:00+01:00By

The Treasury Department’s Financial Crimes Enforcement Network released new anti-money laundering requirements for U.S. investment advisers and real estate professionals that attempt to close loopholes that criminals and kleptocrats have long exploited.

nordea_web

News Brief

Nordea Bank to pay $35M to resolve NYDFS probe into AML shortcomings

2024-08-28T17:41:00+01:00By

Finland-based Nordea Bank will pay $35 million to resolve an investigation by the New York Department of Financial Services into “significant compliance failures” in its anti-money laundering and Bank Secrecy Act program.

TD Bank

News Brief

TD Bank discloses liabilities over AML probes in U.S. balloon to $2.6B

2024-08-26T18:17:00+01:00By

TD Bank has set aside $2.6 billion to settle allegations made by U.S. regulators that deficiencies in its anti-money laundering program allowed fentanyl traffickers to launder money on its platform.

OCC sign

News Brief

Banks avoid penalties in OCC deals, agree to shore up AML/BSA, board oversight

2024-08-23T18:09:00+01:00By

Among the enforcement actions issued by the Treasury Department’s Office of the Comptroller of the Currency in August, two banks were separately penalized for deficiencies in anti-money laundering and Bank Secrecy Act compliance and board oversight.

FINRA New York

News Brief

American Portfolios agrees to $225K settlement with FINRA over AML failings

2024-08-22T20:04:00+01:00By

Broker-dealer American Portfolios will pay a $225,000 fine to the Financial Industry Regulatory Authority (FINRA) over alleged deficiencies in its anti-money laundering program.

UK_Court_of_Appeal

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U.K. forced labor ruling raises bar for supply chain monitoring

2024-08-19T14:32:00+01:00By

Companies will need to tighten up how they monitor their supply chains after a recent U.K. ruling determined that corporates could be open to money laundering charges if they fail to act in cases where they believe there is a risk of forced labor.

AI for business

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Examining potential uses for GenAI in banking, financial services

2024-08-15T17:55:00+01:00By

The American Bankers Association sent a letter to the Treasury Department asking questions on the ethical application of generative AI in banking and finance, with an IBM report published the same day describing potential future uses of GenAI tools in finance.

Financial Conduct Authority

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Experts warn FCA review prompts firms to declassify or retain PEPs

2024-08-15T17:44:00+01:00By

The U.K Financial Conduct Authority published findings showing that financial services firms are implementing its guidance on politically exposed persons related to anti-money laundering inconsistently, with experts warning firms of reputational damage arising from potential enforcement.

SEC building

News Brief

SEC fines OTC Link $1.2M over allegedly failing to file SARs

2024-08-13T16:06:00+01:00By

New York-based broker-dealer OTC Link will pay a $1.2 million fine to settle charges levied by the Securities and Exchange Commission over allegedly failing to implement a system to monitor and report potential suspicious activities on its platforms.

Hanjo_Seibert_Web

Podcast

Podcast: BCG managing director on anti-financial crime technology

2024-08-13T13:10:00+01:00By

Staff writer Aaron Nicodemus discussed anti-financial crime technology in banking with Hanjo Seibert, managing director and partner of Boston Consulting Group, during the latest episode of the Compliance Week podcast.

Manfred Bekeris Web

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Q&A: Paxful CCO on ramping up compliance after BSA failures

2024-08-12T17:28:00+01:00By

Manfred Bekeris, chief compliance officer at cypto peer-to-peer network Paxful, sat down with Compliance Week to talk about joining the company shortly before its former chief operating officer and co-founder pled guilty to violating the Bank Secrecy Act.

Wells Fargo NY

News Brief

Wells Fargo discloses AML, sanctions programs under investigation

2024-08-02T19:00:00+01:00By

Wells Fargo disclosed in a public filing its anti-money laundering and sanctions programs are under investigation, adding to the already long list of compliance issues plaguing the bank.

African currency

News Brief

Interpol to launch AML pilot program in Africa by 2025

2024-08-01T17:01:00+01:00By

The International Police Organization will launch a pilot anti-money laundering initiative in Africa that will trace and recover funds stolen by corrupt officials and criminals.

Financial Conduct Authority

News Brief

FCA wants input on how Consumer Duty overlaps with existing rules

2024-07-30T19:11:00+01:00By

The U.K. Financial Conduct Authority is asking for input on which of its existing rules for financial services overlap with the year-old consumer duty rule, with an eye toward streamlining and simplifying both rule packages.

UK_Gambling_Commission_Web

Article

Former U.K. Gambling Commission investigator on AML/CFT regulations

2024-07-30T18:09:00+01:00By Helen Siegieda, International Compliance Association

Recent events have put a spotlight on the role of the U.K. Gambling Commission, following its investigation into privileged information allegedly being used to bet on the date of the U.K. general election.

Brian_Nelson_web

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Treasury official slams Florida ‘anti-woke’ law for ‘undermining’ BSA compliance

2024-07-29T19:00:00+01:00By

Brian Nelson, Treasury Department under secretary for terrorism and financial intelligence, warned in a letter that Florida’s “anti-woke” banking bill may “materially undermine” financial institutions’ compliance with federal AML/CFT laws and U.S. sanctions.

Coinbase

News Brief

FCA fines Coinbase subsidiary $4.5M over providing service to high-risk customers

2024-07-26T15:51:00+01:00By

The U.K. Financial Conduct Authority issued a fine of $4.5 million (3.5 million pounds) against a U.K.-based subsidiary of crypto platform Coinbase for providing services to high-risk customers in violation of FCA rules.

RisksAhead

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Risk visibility striking fear in companies onboarding new customers

2024-07-24T17:54:00+01:00By

A lack of risk visibility is causing companies to reject customers–and potentially lose money–over fears they might be in danger of violating rules around anti-money laundering and sanctions regulations.

Russian money

News Brief

OFAC sets Aug. 2 deadline for firms to report Russian sovereign assets

2024-07-24T15:50:00+01:00By

Financial institutions holding Russian sovereign assets that have not reported them to the Treasury Department’s Office of Foreign Assets Control are now required to do so by Aug. 2.

Federal Reserve

News Brief

Green Dot fined $44M by Fed over compliance deficiencies, deceptive practices

2024-07-22T19:09:00+01:00By

The Federal Reserve Board of Governors fined financial technology and bank holding company Green Dot $44 million for numerous unfair and deceptive practices and a deficient consumer compliance risk management program.

Bank risk

News Brief

Banking regs join FinCEN in proposing AML/CFT risk assessment rule

2024-07-22T15:50:00+01:00By

Four federal banking regulators have joined the Treasury Department’s Financial Crimes Enforcement Network in issuing a notice of proposed rulemaking that would require financial institutions to conduct more thorough risk assessments on their anti-money laundering/countering the financing of terrorism programs.

Financial Conduct Authority

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FCA: Most banks don’t subject U.K. politicians to excessive risk checks

2024-07-18T20:39:00+01:00By

The U.K.’s Financial Conduct Authority asked banks and financial institutions “to do more” to ensure that U.K lawmakers and their families are not treated unfairly.

BitMEX

News Brief

DOJ latest agency to charge crypto platform BitMEX for BSA/AML failures

2024-07-12T16:57:00+01:00By

The parent company of crypto-trading platform BitMEX is again facing charges of violating the Bank Secrecy Act, the latest in a string of punishments against the company and its founders for failing to implement adequate know your customer and anti-money laundering programs.

DOJ

News Brief

Ex-Paxful co-founder pleads guilty to violating BSA/AML regulations

2024-07-10T19:30:00+01:00By

The co-founder and former chief technology officer of crypto peer-to-peer network Paxful faces charges related to violating the anti-money laundering requirements of the Bank Secrecy Act.

Brian_Nelson_web

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De-risking trend threatens global financial markets, Treasury official warns

2024-07-10T17:25:00+01:00By

As the United States and other Western countries turn the screws on criminals, hackers, terrorist organizations, and sanctions evaders attempting to access global financial markets, financial institutions could respond by reducing their connections to risky sectors, according to Treasury Under Secretary Brian Nelson.

Dominic_Buckwell_web1

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Q&A: Seaco general counsel, compliance head on environmental regulations

2024-07-03T18:17:00+01:00By

Dominic Buckwell, general counsel and compliance head at global marine container leasing company Seaco, discussed key themes including anti-money laundering, sanctions, and why the industry needs common environmental reporting standards.

Silvergate_Bank_Web

News Brief

Silvergate Bank to pay $63M to Fed, California over BSA/AML deficiencies

2024-07-02T13:50:00+01:00By

Crypto-friendly Silvergate Bank will pay a total of $63 million penalties to California and the Federal Reserve Board to settle charges that its anti-money laundering program failed to properly monitor more than $1 trillion worth of customer transactions.