AML Conversations

FinCEN has released new Suspicious Activity Report (SAR) data. The data set covers the full years 2014 through 2021. The information looks at SARs filed by all of the required filers and breaks down the information in a number of ways. John and Elliot discuss some interesting nuggets from the release, speculate on how the data may be analyzed, and talk about finding ways to use the information to improve financial crime prevention programs.

This week the US Department of Justice indicated that it will begin directing prosecutors to “consider requiring” certification at the end of an enforcement action settlement that the “the company’s compliance program is reasonably designed and implemented to detect and prevent violations of the law and is functioning effectively.” Also this week, Chairwoman Maxine Waters of the US House Financial Services Committee issued a letter to trade associations representing numerous US businesses requesting detailed information on the actions that America’s financial institutions and businesses have taken to end their relationships and engagements in Russia and with businesses that support the Russian government. John and Elliot discuss the implications for CEOs and CCOs of the certification idea and how the trade associations may respond to Chairwoman Water’s request from information.

The Financial Action Task Force (FATF) has issued a 2nd Draft Guidance Paper for consideration and agreement to public consultation for the Real Estate Sector. This latest guidance paper will update earlier guidance issued to the sector. John and Elliot discuss some aspects of the draft, including the limited understanding of participants in the sector of money laundering and terrorist financing risks, the large role that the sector plays in many national economies, and the tie in to the Advanced Notice Proposed Rulemaking for new real estate sector reporting requirements, issued by FinCEN in December 2021.

This week FinCEN issued an alert directing US financial institutions to increase their vigilance in watching for efforts to evade Russian related sanctions. The alert identifies several possible evasion typologies that may be used. Elliot  sits down with Tim White, Special Advisor at AML RightSource and global sanctions expert to talk about the alert. Elliot and Tim discuss some of the implications for evasion through the use of virtual currency, and the importance of monitoring changes in transaction flows and volumes, and transactions from new sources. They also note that the alert has value for the financial crime prevention community beyond the US.

We sit down with our global sanctions expert Tim White to hear how the financial crime compliance community is impacted following the sanctions against Russia and how to address any concerns. We also delve into how these financial service providers can over overcome some of the challenges that they are now faced with.

John Byrne Chairman of the AML RightSource Advisory Board sits down with James Lin, the Company’s new Chief Product & Technology Officer. James discusses his vision for how technology and people working together can bring clients enhanced effectiveness in their financial crime compliance efforts. He also explores how bringing all AMLRS’s resources together to accelerate client success.

This week the US Department of Justice announced the formation of Task Force KleptoCapture. The Task Force is an “interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures” that have been and may be issued. John and Elliot talk about the focus of the new Task Force – targeting “Russian officials, government-aligned elites, and those who aid or conceal their unlawful conduct;” and how it will combat unlawful efforts to circumvent the sanctions programs.

As a result of the Russian invasion of Ukraine, nations around the world have put sanctions in place against Russia, Russian companies, and Russian nationals. John sits down with Tim White, Special Advisor at AML RightSource and global sanctions expert to discuss the severity and near term impact of the sanctions announced in the last several days, what sanctions compliance teams should be looking at to comply with these programs, and what other actions may be coming in the near future.

In January the US Department of Justice issued its National Strategy to Combat Human Trafficking. This week, a House of Representatives Committee held a hearing on Data Challenges Impacting Human Trafficking Research and Development of Anti-Trafficking Technological Tools. These two events highlight the increasing US national focus on human trafficking. John and Elliot discuss how the data issues noted at the hearing and the efforts identified in the DOJ Strategy impact the efforts of law enforcement and the financial crime compliance community to identify, disrupt, and stop human trafficking.

This week Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson spoke with leaders of NGOs active in Afghanistan. The focus of the conversation was the newly issued FAQs, which are designed to bring more clarity about food and agricultural shipments, support to public hospitals, salary support for teachers and healthcare workers, support for municipal water systems, bank transactions, and cash shipments. The FAQs add to the information issued in December 2021 Fact Sheet Provision of  Humanitarian Assistance to Afghanistan and Support for the Afghan People. John and Elliot discuss how the overall issue of de-risking is brought into clear relief in situations such as Afghanistan and how the FAQs can help financial service providers and NGOs navigate the sanctions against the Taliban and bring humanitarian support to the Afghan people.