Mr. Watchlist’s DesigNation

Last Friday, President Trump issued a new Executive Order prohibiting securities transactions with listed “Communist Chinese Military Companies”. What’s that all about?

The episode (first in a few weeks - sorry!) covers what’s in the Executive Order, including some of the terms defined (and not defined) in it, and how some of the mechanisms in it are different than other EOs. Also, some commentary on how it’s going to be implemented - it did create a new OFAC program, because it invoked the authorities of IEEPA, which is their bailiwick - and commentary on some of the geopolitics underlying why this was the action that was taken.

FinCEN dusted off its August BSA Enforcement Statement, and used it when it wrote the Assessment of Civil Monetary Penalty for Larry Dean Harmon, who operated a pair of Bitcoin mixers for a good 6+ years.

If you want to learn what a virtual currency mixer is, or want to hear my take on how FinCEN did playing with its new toy, come give this episode (it’s my 25th, can you believe it?) a listen.

In the last few years, we’ve seen OFAC enforcement actions against Apple and Amazon... et tu, Berkshire Hathaway?

Tuesday’s enforcement action, which resulted in a rounding error fine for Berkshire (about 4.1 million USD), continues a trend of foreign subsidiary violations despite their parent’s direction to avoid dealings counter to US law and regulation.

And there’s also something hidden in there that I think you need to seriously think about, if your firm has foreign subsidiaries. But, just like Cracker Jacks, you have to open the box to see what the prize is.

Sensational headlines grabbed a lot of eyeballs... but has there really been a crisis in the fight against money laundering? Or are the FinCEN Files a story of our past, where standards and capabilities were not as elevated as they are today?

And can we even tell - or are we just making some reasonable assumptions based on what we know has changed since the first SAR from 1999 that make up the FinCEN Files?

It’s an interesting thing to think about - heck, I even realized something at the last second and inserted it in the middle of the episode wrap-up!

Last week’s designations of the Iranian financial services sector, and the designation of 18 Iranian banks, is the topic we’re discussing this week. What does it mean for firms outside the US (since these banks were already sanctioned under other authorities)? Is anything still permitted?

And what the heck is 31 CFR Chapter V? Make room in your jargon file...

Walking through the settlement between OFAC and Comtech Telecommunications, we find some familiar wording. That’s a good thing... at least I think so.

This week’s little tweaks to US sanctions on Cuba - will they really have any significant effect? And the timing of the announcement seems... a little strange. Let’s discuss.

What should we make of this past weekend’s “return” of UN sanctions on Iran, as proclaimed by the State Department - and Monday’s Executive Order sanctioning conventional arms sales with Iran?

Let’s discuss...

oh, and there’s something interesting in the wording of the E.O. - just saying.

Hoo boy! We’re talking about yesterday’s OFAC enforcement action against Comtech Telecommunications and Comtech EF Data. All you need to know - egregious violations, a settlement amount larger than the base penalty, and only 1 mitigating General Factor.

Lots of links to other enforcement actions with similar characteristics in the show notes.

Have a nice weekend - and L’Shanah Tovah to my fellow lansmen...

The State Department didn’t send out its usual email about the OFAC designation of Union Development Group - but the PR is on the website. Why? I have my own (conspiracy) theory...