On 11/30/2020, the FDIC - along with the OCC, Federal Reserve, and CFPB - announced that they will be holding an Ask the Regulators webinar for their supervised institutions. This webinar event will be on the use of artificial intelligence (AI), including machine learning (ML), and will be held on Wednesday, December 16, 2020 at 1:00 PM EST. Participants must preregister for the event.

On 11/19/2020, the Financial Crimes Enforcement Network (FinCEN), in coordination with the Federal Banking Agencies, issued a joint fact sheet for banks to better understand how to apply a risk-based approach to charities and other non-profit organizations, often referred to as NPOs. In their release, the CFPB explains that the joint fact sheet highlights the importance of ensuring that legitimate charities have access to financial services and can transmit funds through legitimate and transparent channels, especially during the current COVID-19 pandemic. The joint fact sheet also reminds banks to apply a risk-based approach to customer due diligence (CDD) requirements when developing the risk profiles of charities and other non-profit customers.

On 11/6/2020, the Financial Crimes Enforcement Network (FinCEN) issued an advisory on the Financial Action Task Force (FATF)-identified jurisdictions with anti-money laundering, combating the financing of terrorism, and the proliferation deficiencies. In short, FATF recently (10/23/2020) updated its list of jurisdictions with strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing. These changes may affect US financial institutions’ obligations and risk-based approaches with respect to relevant jurisdictions. FinCEN requests that financial institutions filing a SAR for related activity reference their advisory in SAR field 2 (Filing Instruction Note to FinCEN) and the narrative by including the key term “October 2020 FATF FIN-2020-A009.”

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.