Walter Zalenski Quoted in Law360 Article, "Money-Laundering Crackdown Hits Hard In Developing World"Walter E. Zalenski
Walter Zalenski was quoted in Evan Weinberger's Law360 article, "Money Laundering Crackdown Hits Hard in the Developing World," on November 10, 2015.
U.S. financial regulators have increased their scrutiny of banks’ compliance with anti-money-laundering regulations and the Bank Secrecy Act since the Sept. 11, 2001, terrorist attacks. That scrutiny has led to billions of dollars in penalties for banks that have been found complicit in violations or have failed to put in place systems to stop them.
In response, banks in the developed world have chosen to stop their correspondent banking relationships with financial institutions in countries where compliance with those rules is perceived to be lacking, effectively shutting them, and their customers, out of the financial system, according to a coming report from the World Bank.
"There’s been a huge chilling effect due to the ferocity with which regulators have pursued AML-related sanctions,” said Walter Zalenski, a partner at Buckley Sandler LLP.