All in BSA

FATF to Update Guidance on Virtual Assets

Adam Witmer
BSA, Regulatory Update

On March 19, 2021, the Financial Action Task Force (FATF) announced plans to update its existing guidance on the risk-based approach to virtual assets (VAs) and virtual asset service providers (VASPs). The FATF originally published this Guidance in June 2019 when the FATF finalized changes to its Standards to clearly place anti-money laundering and countering the financing of terrorism (AML/CFT) obligations on VAs and VASPs. In July 2020, the FATF committed to update this Guidance as set out in its 12-month review report and report to G20 on so-called stablecoins.

FinCEN Advisory on Updated Deficient Countries

Adam Witmer
BSA, Regulatory Update

On 3/11/21, the Financial Crimes Enforcement Network (FinCEN) issued an advisory to inform financial institutions of updates to the FATF list of jurisdictions with strategic anti-money landing and combating the financing of terrorism and counter-proliferation financing deficiencies.

Remaining on the list are Albania, Barbados, Botswana, Burma (Myanmar), Cambodia, Ghana, Jamaica, Mauritius, Nicaragua, Pakistan, Panama, Syria, Uganda, Yemen, and Zimbabwe. The Bahamas were removed from the list while Burkina Faso, Cayman Islands, Morocco, and Senegal were all added to the list.

FinCEN Guidance on Art Trade

Adam Witmer
BSA, Regulatory Update

On 3/9/21, the Financial Crimes Enforcement Network (FinCEN) issued a notice (FIN-2021-NTC2) to inform financial institutions about (1) the Anti-Money Laundering Act of 2020 (the AML Act)1 efforts related to trade in antiquities and art, (2) select sources of information about existing illicit activity related to antiquities and art, and (3) provide specific instructions for filing Suspicious Activity Reports (SARs) related to trade in antiquities and art. This release encourages financial institutions to continue filing SARs regarding these topics and provides additional guidance.

FATF Guidance on Risk-Based Supervision

Adam Witmer
BSA, Regulatory Update

On 3/4/21, the Financial Action Task Force (FATF) released guidance titled “Guidance on Risk-Based Supervision” to help financial industry supervisors address the full spectrum of risks and focus resources where the risks are highest. In their release, FATF explains that a risk-based approach will make supervisors efforts to detect and prevent the financial flows that fuel crime and terrorism more effective. This is crucial, they explain, because it is better to detect and prevent money laundering and terrorist financing than to prosecute it after a crime has occurred.

FFIEC Updates BSA Exam Manual

Adam Witmer
BSA, Regulatory Update, Compliance Management

In February of 2021, the FFIEC released the second round of what appears to be an overhaul of the BSA/AML Exam Manual. The February 2021 revisions include updates to four sections including and introduction section to the section on assessing compliance with BSA regulatory requirements, and sections on customer identification programs, currency transaction reporting, and transactions of exempt persons.

FinCEN Advisory on COVID-19 Economic Impact Payments

Adam Witmer
BSA, Regulatory Update

On 2/24/2021, the Financial Crimes Enforcement Network (FinCEN) issued Advisory FIN-2021-A002 that discusses detecting, and reporting financial crimes related to Economic Impact Payments. The advisory contains descriptions of EIP fraud, 14 associated red flag indicators, and information on reporting suspicious activity, and is part of a series published by FinCEN on COVID-19-related frauds and criminal activity.

VIDEO: Anti-Money Laundering Act of 2020

VIDEO: Anti-Money Laundering Act of 2020

Adam Witmer
Regulatory Update, BSA

In this Compliance Clip (video), Adam provides an overview of 5 things that will likely come from the Anti-Money Laundering Act of 2020. As this new law will have significant implications in the BSA/AML world, it will be important for BSA/AML professionals to watch applicable developments that result from the Anti-Money Laundering Act of 2020.

FinCEN Advisory on COVID-19 Health Care Fraud

Adam Witmer
BSA

On 2/2/2021, FinCEN issued their first advisory of the year, FIN-2021-A001, which focuses on COVID-19-related fraud involving the health care industry. The advisory contains descriptions of COVID-19-related fraud involving health care benefit programs and health insurance, associated financial red flag indicators, select case studies, and information on reporting suspicious activity. Of particular note, FinCEN requests financial institutions reference this new advisory in SAR field 2 (Filing Institution Note to FinCEN) and the narrative by including the following key term: “FIN-2021-A001” and select SAR field 34g (health care – public or private health insurance). Additional guidance for filing SARs appears near the end of this advisory.

SBA & FinCEN Add PPP FAQs

Adam Witmer
BSA

On 1/29/2021, the Small Business Administration (SBA) reissued their list of Frequently asked questions regarding PPP loans. The updated version of the FAQs explains that FAQs 1-53 are in the process of being revised and do not yet reflect the changes made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act enacted on December 27, 2020. On 2/1/2021, FinCEN also updated their FAQs to correspond with the updated SBA FAQs.

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