On 11/4/2020, FinCEN Director Kenneth Blanco issued a renewal of a Geographic Targeting Order that requires title insurance companies to collect and report information about the persons involved in certain residential real estate transactions. This order covers certain transactions in which residential real property is purchased by a legal entity in the amount of $300,000 or more without the use of a loan in certain metropolitan areas. In conjunction with the geographic targeting orders, FinCEn has also released a set of FAQs to help clarify the requirements.

On 10/30/2020, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued an advisory to highlight sanctions risks arising from dealings in high-value artwork associated with persons blocked pursuant to OFAC’s authorities, including persons on OFAC’s List of Specially Designated Nationals and Blocked Persons (SDN List).

On 10/23/2020, the Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve Board jointly invited comment on a proposed rule that would amend the recordkeeping and travel rule regulations under the Bank Secrecy Act. Having joint authority, FinCEN and the Federal Reserve, are together proposing amendments to the recordkeeping rule, while FinCEN, pursuant to its sole authority, is proposing amendments to the travel rule.

On 10/23/2020, the U.S. Department of the Treasury issued a release explaining that the Financial Action Task Force - and international group of nations that work together to implement consistent anti-money laundering standards world wide - is set to revise its standards to further strengthen the global response to the financing of proliferation related to weapons of mass destruction.

The Treasury also explained that the task force also continued its focus on the impact of the COVID-19 pandemic on detecting and countering fraud including attempts to defraud government backed stimulus programs. Furthermore, FATF also adopted an updated report on trade-based money laundering and recognized progress by a number of jurisdictions in rectifying their AML/CFT deficiencies.

On 10/20/2020, the Department of the Treasury issued an “enforcement release” explaining that OFAC had settled with Berkshire Hathaway Inc. with respect to potential civil liability for apparent violations of the Iranian Transactions and Sanctions regulations engaged in by one of its foreign subsidiaries, known as “Iscar Turkey.” As a result of Iscar Turkey’s actions, Berkshire Hathaway has agreed to pay a $4,144,651 payment to settle its potential civil liability for trade-related transactions and exports to Iran.

On 10/19/2020, the Financial Crimes Enforcement Network (FinCEN) announced a $60 million civil money penalty (CMP) against Larry Dean Harmon and two convertible virtual currency businesses he founded. In their release, FinCEN explained that Harmon’s two businesses, Helix and Coin Ninja, were convertible virtual currency “mixers,” or “tumblers” and violated the Bank Secrecy Act and its implementing regulations. Specifically, FinCEN states that Harmon and his businesses operated as an unregistered money transmitting business. In doing so, Harmon and his businesses operated “as a bitcoin mixer, or tumbler, and advertised its services in the darkest spaces of the internet as a way for customers to anonymously pay for things like drugs, guns, and child pornography.” Mr. Harmon is also currently being prosecuted in the U.S. District Court for the District of Columbia on charges of conspiracy to launder monetary instruments and the operation of an unlicensed money transmitting business.

On 10/15/20, FinCEN released advisory FIN-2020-A008 - which is titled “Supplemental Advisory on Identifying and Reporting Human Trafficking and Related Activity” - to “help save lives, and to protect the most vulnerable in our society from predators and cowards who prey on the innocent and defenseless for money and greed.” This advisory provides new information relating to human trafficking and supplements FinCEN’s 2014 Guidance on Recognizing Activity that May be Associated with Human Smuggling and Human Trafficking - Financial Red Flags. The advisory provides an overview of human trafficking, new typologies of human trafficking, behavioral and financial red flag indicators of human trafficking, case studies, and guidance to U.S. financial institutions. When reporting suspicious activity related to this advisory, FinCEN requests that financial institutions include the key term “HUMAN TRAFFICKING FIN-2020-A008” in SAR field 2 (Filing Institution Note to FinCEN) to indicate a connection between the suspicious activity being reported and the activities highlighted in the advisory.

On 10/13/2020, the Financial Crimes Enforcement Network (FinCEN) issued an advisory (FIN-2020-A007) to alert financial institutions to unemployment insurance fraud observed during the pandemic. The advisory contains descriptions of the different fraud types, associated red flag indicators, and information on reporting suspicious activity.

On October 1, 2020, the US Department of the Treasury issued a pair of advisories regarding ransomware. The first advisory was issued by FinCEN and is titled Advisory on Ransomware and the Use of the Financial System to Facilitate Ransom Payments. This advisory provides information on the role of financial intermediaries in payments, ransomware trends and typologies, and related financial red flags.

The second advisory was issued by OFAC and is titled Advisory on Potential Sanctions Risks for Facilitating Ransomware Payments. This advisory explains the sanctions risks associated with making ransomware payments. For example, some individuals or entities who install ransomware and demand payment are actually found on the OFAC list, making it illegal for businesses who get ransomware on their computers to pay these entities and regain access to their systems and data.

On 9/29/2020, FinCEN Director, Kenneth Blanco, presented a speech at the ACAMS Virtual AML Conference. After beginning the speech with a discussion on FinCEN’s response to the global health crisis, Director Blanco shared some fraud trends FinCEN is seeing related to COVID-19. Though much was a reiteration of applicable advisories issued by FinCEN, it was explained that the most common trend seen in COVID-19 related SARs involves fraudsters “targeting multiple COVID-19 related government stimulus programs, employing money mules and cyber techniques.”