AML Conversations

This week the IRS published the IRS-Criminal Investigation (IRS-CI) Fiscal Year 2021 Annual Report. IRS-CI is the criminal investigative arm of the IRS. The report provides detailed information about enforcement actions and partnerships from IRS-CI. John and Elliot discuss some of the highlights in the report, including the international scope of IRS-CI investigations and the breadth of its activities outside of tax enforcement, including in the cybercrime space.

Tom Vartanian is a former federal banking regulator and law professor. In this two-part podcast, we discuss his views on what caused the various the financial crises in the US, the need for improved or “smart” regulation, how accountable are the policy makers and the private sector, and the need to utilize technology to prepare us for any future financial panics.

Tom Vartanian is a former federal banking regulator and law professor. In this two-part podcast, we discuss his views on what caused the various the financial crises in the US, the need for improved or “smart” regulation, how accountable are the policy makers and the private sector, and the need to utilize technology to prepare us for any future financial panics.

The Office of Foreign Assets Control of the United States Department of the Treasury (“OFAC”), the New York State Department of Financial Services, and the Federal Reserve recently issued a series of enforcement actions against Mashreqbank PSC, Dubai, United Arab Emirates. The action all related to failures by the Bank to comply with certain sanction programs. John and Elliot discuss the orders, the specific violations, and the overall usefulness of enforcement actions.

INTERPOL has released its latest survey of member countries – Assessing Crimes Against Cultural Property 2020. The report discusses the INTERPOL Stolen Works of Art Database and the recently release ID-Art mobile application. John and Elliot discuss the increases in cultural crimes during 2020 and the challenges faced by countries around the globe as they work to reduce illicit excavations and theft of assets.

The Financial Action Task Force held its most recent Plenary last week. The delegates completed work on a number key initiatives – updated guidance for a risk-based approach to virtual assets and virtual assets service providers, and a final report on a survey on implementation of standards on cross-border payments. John and Elliot discuss the outcomes of the Plenary and what it means for the financial crime compliance community.

The Biden Administration and the Treasury Department have unveiled a proposal to improve tax fairness and compliance. The proposal seeks to enhance tax reporting by authorizing the IRS to require financial institutions to report two additional items of information on its customers: the total amount of funds deposited into the account and the total amount withdrawn over the course of a year. John and Elliot discuss the implications of the proposal and its possible impact on financial service company’s compliance activities.

In August 2021, Global Financial Integrity published Acres of Money Laundering – Why U.S. Real Estate is a Kleptocrat’s Dream. The report compares the real estate money laundering regulations across the G7 countries. John and Elliot discuss the report’s findings on the use of the US commercial real estate market to launder funds and the roles played in the transactions by various gatekeepers. They also call out some of the key recommendations in the report.

A link to the report -https://gfintegrity.org/report/acres-of-money-laundering-why-u-s-real-estate-is-a-kleptocrats-dream/

Here's a great article that discusses real estate and the need for real reforms in Australian AML regulations - https://www.amlrightsource.com/news/real-estate-and-the-need-for-real-reforms-in-australian-aml-regulations

The International Consortium of Investigative Journalists (ICIJ), The Washington Post and many other news organizations around the world have published a series of stories based on nearly 12 million records obtained by the ICIJ – known as the Pandora Papers - which shed light on how heads of state, the super-rich, and criminals have hidden their assets.  John and Elliot look at some of the key findings by the ICIJ, The Post and other media outlets and discuss the implications for oversight and regulation going forward.

This week the Department of Homeland Security added an item to its website entitled “if you see something, say something.” The item discusses how individuals can report suspicious activity. John and Elliot look at some of the red flags identified by the DHS and discuss the impact of viewing suspicious activity reporting as something beyond the responsibility of entities regulated under the Bank Secrecy Act.