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fincen

The Financial Crimes Enforcement Network (FinCEN), which also has a regulatory function, has applied a USD3 million civil money penalty against Lone Star National Bank of Pharr, Texas, for failing to properly comply with the requirements of the Bank Secrecy Act - as found in s312 of the USA PATRIOT Act.

Editorial Staff
BIScom Subsection: 

Often, one is tempted to shake one's head in amazement when a regulator or enforcement agency is proud that it's done something that has been obvious for, well, pretty much for ever, in money laundering terms. If one were to shake one's head with appropriate force at FinCEN's boast that it is to target shell companies that have been used to purchase expensive properties in seven expensive areas, there's a risk it would topple free of one's shoulders. Surely the point is not the FinCEN has just noticed, but that it's just noticed that banks, lawyers and estate agents have not been making reports. Shades of Commonwealth Bank, maybe?

CoNet Administrator

In 2009, an IRS inspection found "systemic" failures in the money laundering control systems at a small supermarket, Thriftway Food Mart which provided cheque cashing services and the sale of money orders, activities which require it to be registered as a Money Services Business with FinCEN and to impose and maintain appropriate systems. The sole proprietor of the business, who is also its compliance officer, was issued with a warning from FinCEN. So that's all good, then, you might think. Well, ... no.

FinCEN and FDIC have assessed First Bank of Delaware to a USD15m civil penalty as a result of breaches of the Bank Secrecy Act and other counter-money laundering laws and regulations. The bank has also settled DoJ charges.

Ocean Bank of Miami, Florida, has been issued with penalties by the Federal Deposit Indemnity Corporation, Florida Office of Financial Regulation and FinCEN in respect of a series of breaches of the Bank Secrecy Act and other anti-money laundering laws and regulations. The bank neither admits nor denies the allegations.

The USA's Internal Revenue Service and the Financial Crimes Enforcement Network (FinCEN) have announced that a small subset of individuals with only signature authority required to file the Report of Foreign Bank and Financial Accounts (FBARs) will receive a one-year extension beyond the previously notified filing date of 30 June, 2011.

Editorial Staff
BIScom Subsection: 

It's a mark of just how tunnel-visioned the USA's counter-money laundering strategy is that it is only now getting around to thinking about including non-bank lenders in its regulatory net. The US needs a massive kick in the soft bits and told to get its law sorted out, says Nigel Morris-Cotterill, Head, The Anti Money Laundering Network. It's time the FATF stepped in and issued a warning about the USA, he says.

 


 

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