On 5/18/20, FinCEN issued an advisory (FIN-2020-A002) on medical scams related to COVID-19. The 9-page advisory was issued to alert financial institutions to rising medical scams related to the COVID-19 pandemic while also providing descriptions of COVID-19-related medical scams, case studies, red flags, and information on reporting suspicious activity. FinCEN explains that this will be the first of several advisories they plan to issue concerning financial crimes related to the COVID-19 pandemic. While this advisory contains a number of things, it is important to point out that…

On April 30, 2020, the Financial Action Task Force (FATF) issued a mutual evaluation report with United Arab Emirates. In their release, FATF explains that UAE recently strengthened its legal framework to fight money laundering and terrorist financing but, as a major global financial center and trading hub, it must take urgent action to effectively stop the criminal financial flows that it attracts.

On April 30, 2020, OFAC issued a “Finding of Violation” to American Express Travel Related Services Company (“Amex”) for violations resulting from processing transactions for a person designated as a “Specially Designated National” (i.e. SDN list). In their release, OFAC explains that they found that Amex issued a prepaid card to, and processed 41 transactions totaling $35,246.82 on behalf of, Gerhard Wisser, who was on the SDN list. OFAC explains that these violations were the result of human error and screening system defects and Amex remediated and disclosed the violations to OFAC. Fortunately for Amex, there is no monetary penalty associated with a Finding of Violation.

On 4/20/2020, OFAC issued a statement to encourage persons to communicate OFAC compliance concerns related to the coronavirus disease (COVID-19). Specifically, OFAC encourages persons, including financial institutions and other businesses, affected by the COVID-19 global pandemic to contact OFAC as soon as practicable if the person believes it may experience delays in its ability to meet deadlines associated with regulatory requirements administered by OFAC. This includes requirements related to filing blocking and reject reports within ten business days, responses to administrative subpoenas issued​, reports required by general or specific licenses, or any other required reports or submissions.

On April 15, 2020, the FFIEC released a 43 page update to their BSA/AML Exam Manual. This long-awaited update includes many revisions designed to emphasize and enhance the regulators’ risk-focused approach to BSA/AML supervision. Click this link to see a summary of the major changes to the BSA/AML Exam Manual.

On 4/9/20, the Office of Foreign Assets Control published their annual inflation adjustments in the Federal Register. The rule, which is effective on April 9, 2020, is an annual requirements of OFAC and changes the amounts of 5 main civil money penalties.

FinCEN has released a FAQ regarding PPP loans which aligns with the FAQ issued by the SBA.

On April 3, 2020 FinCEN updated its March 16, 2020 COVID-19 Notice. This update provides additional information to assist financial institutions in complying with their Bank Secrecy Act (BSA) obligations during the COVID-19 pandemic, and announces a direct contact mechanism for urgent COVID-19-related issues. FinCEN recognizes financial institutions face challenges related to the COVID-19 pandemic. In addition, FinCEN is committed to promoting the success of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), including the need to facilitate expeditious disbursal of CARES Act funds.

On March 31, 2020, the Financial Action Task Force (FATF) released a report regarding the measures taken by the United States to strengthen their money laundering framework. In their report, FATF found that the United States has been in an enhanced follow-up process following the adoption of its mutual evaluation in 2016, after the 2016 FATF evaluation. In line with the FATF Procedures for mutual evaluations, the country has reported back to the FATF on the actions it has taken since then.