LexisNexis® Legal Newsroom
New Financial Institution Taxation, Compliance Measures in Force

Banks and financial institutions face a host of new taxation and compliance standards in the wake of distressed economic conditions and Treasury's movement to drive enhanced transparency. Measures in place or pending include: Proposed Fee on Liabilities of Large Banks . A proposed fee on liabilities...

The SEC, FinCEN and FINRA Sanction Broker

The anti-money laundering and customer identification rules are important market policing tools monitored by the SEC, the Financial Crimes Enforcement Network or FinCEN and FINRA. Pinnacle Capital Markets LLC, a broker dealer whose customers are largely outside the United States, was sanctioned by...

Egypt, Mubarak and Politically Exposed Persons

Egypt's top prosecutor requested the freezing of the foreign assets of ousted president Hosni Mubarak and his family. I expect that is one step in trying to figure out how much of Mubarak's fortune was derived from corruption. I've read reports that his assets could be worth $3 billion...

Sutherland Alert: FinCEN Extends FBAR Filing Deadline for Certain Officers and Employees – Does This Portend Changes?

by Carol Tello, Dwane Dupree, and Robb Chase On May 31, 2011, in FinCEN Notice 2011-1, the Department of Treasury's Financial Crimes Enforcement Network (FinCEN) extended the 2010 Report of Foreign Bank and Financial Accounts (FBAR) filing deadline from June 30, 2011, to June 30, 2012, for...

Additional FBAR Relief for Certain Foreign Financial Account Signatories

by Keith J. Blum , Partner - Boies, Schiller & Flexner LLP On June 16, 2011, the IRS, in Notice 2011-54, further extended the deadline from June 30, 2011, to November 1, 2011, for the filing of the Report of Foreign Bank and Financial Accounts (FBAR) for persons with no financial interest in a...

Sutherland Alert: Last Minute FBAR Extensions for “Signature Authority Only” Filers

View Media Making Sense of the Announcements In the past week, two extensions for filing a Report of Foreign Bank and Financial Account (FBAR) were announced by the IRS and FinCEN for certain persons that are required to file FBARs solely as a result of their signature authority over a ...

FinCEN Adopts Final Rule on Prepaid Access

by the Consumer Financial Services Group The Financial Crimes Enforcement Network (FinCEN) has published in the Federal Register its long-awaited final rule on "prepaid access" (formerly known as "stored value"). The result was worth the wait, with substantial improvements that...

Final Regulations Clarify FBAR Reporting Requirements

[ Editor's Note: This narrative is derived from Taxation of Financial Institutions § 26.04 (Matthew Bender).] Under the Bank Secrecy Act, financial institutions must report and maintain records for transactions in cash or currency that exceed $10,000. [31 USC § 5313.] The Bank Secrecy...

Final Regulations Clarify FBAR Reporting Requirements

[ Editor's Note: This narrative is derived from Taxation of Financial Institutions § 26.04 (Matthew Bender).] Under the Bank Secrecy Act, financial institutions must report and maintain records for transactions in cash or currency that exceed $10,000. [31 USC § 5313.] The Bank Secrecy...

Changes Coming With Anti-Money Laundering Requirements

James H. Freis, Jr., Director of the Financial Crimes Enforcement Network, let us know that his agency is working on anti-money laundering requirements for investment advisers. At a November 15, 2011 speech at the American Bankers Association/American Bar Association's Money Laundering Enforcement...

New Anti-Money Laundering Requirements for Non-Bank Mortgage Lenders and Originators

Private Equity has been siting on the fringes of Anti-money laundering regulation for many years. It's still illegal to be involved in money laundering and fund managers should be taking some steps to protect themselves and to identify problems. There's just no set script. FinCEN is supposedly...

Sutherland Legal Alert: FinCEN Extends Due Date for Certain FBAR Filers

By Robb Chase and Amanda Pugh On February 14, 2012, the Department of Treasury's Financial Crimes Enforcement Network (FinCEN) issued Notice 2012-1, which extended the filing deadline for both the 2010 and 2011 Report of Foreign Bank and Financial Accounts (FBARs) to June 30, 2013, for certain...

JPMorgan Admits Violation of the Bank Secrecy Act for Failed Madoff Oversight

J.P.Morgan Chase Bank, N.A., has admitted that it willfully violated the Bank Secrecy Act (BSA) by failing to report suspicious transactions arising out of Bernard Madoff’s decades-long, multi-billion dollar fraudulent Ponzi scheme. The bank now has been fined $461 million by the Financial Crimes...

Money Service Business Shut Down for Sending Wire Transmissions to Yemen without Anti-Money Laundering Controls

The Financial Crimes Enforcement Network (FinCEN) has assessed a civil money penalty against Saleh H. Adam, doing business as Adam Service, a money services business (MSB), after determining that, since November 2007, Adam Service committed serious and willful violations of the Bank Secrecy Act’s...

Currency Transaction Reports

by Prof. William H. Byrnes IV and Robert H. Munro * The Bank Secrecy Act, which sets standards for financial institutions for identifying and preventing money laundering, provides that a Currency Transaction Report, or CTR, must be filed with IRS when there is a currency transaction of $10,000 or...

Politically Exposed Persons (PEPs)

By Prof. William H. Byrnes IV and Dr. Robert J. Munro * Editor's Note: The following is an excerpt from the e-book only title, Money Laundering, Asset Forfeiture and Recovery and Compliance -- A Global Guide , by William Byrnes and Robert Munro. Chapter contributor: Ashley Paulson, Thomas Jefferson...

Anti-Money Laundering -- Dealing with Politically Exposed Persons

by Prof. William H. Byrnes IV and Dr. Robert J. Munro Introduction A Politically Exposed Person (PEP) is a person that has been delegated with a powerful, foreign public position either formerly or currently. Family members and close associates of the person in a political position are also considered...

FinCEN Proposes More Extensive Customer Due Diligence Obligations

by Keith R. Fisher As part of the U.S. Treasury Department’s ongoing efforts to combat all forms of illicit financial activity, from terrorist financing and sanctions evasion to more traditional financial crimes (including money laundering, fraud, and tax evasion), the Financial Crimes Enforcement...