Bank Secrecy Act/Anti-Money Laundering & Sanctions
Practice Overview
Compliance with Bank Secrecy Act/anti-money-laundering, counter-terrorism financing, and sanctions laws is a top priority for financial regulators and law enforcement, as evidenced by an ongoing drumbeat of significant enforcement actions. Failure to comply with this increasingly complicated regime of laws and regulations — and to meet tough regulatory expectations in doing so — can result in fines, indictments, and restrictions on corporate operations and transactions, as well as a loss of public confidence, reputation, and shareholder value.
Buckley’s core strength is in financial services regulation, and our team’s intimate knowledge of banks, money services businesses (MSBs), virtual currency businesses, and other participants in the payments industry, provides us valuable insights into each client’s specific needs and how to meet them.
Our BSA/AML team includes the former deputy chief counsel of the Office of the Comptroller of the Currency, as well as former banking enforcement and securities regulators, federal prosecutors, and in-house compliance officers and bank counsel.
We have extensive experience in internal investigations, enforcement actions, and investigations and regulatory examinations by the Department of Justice, state prosecutors, the Financial Crimes Enforcement Network, the Office of Foreign Assets Control, the Office of the Comptroller of the Currency, the Federal Reserve Board, the Securities and Exchange Commission, the New York State Department of Financial Services, and all other federal and state bank and nonbank financial regulatory authorities.
Our deep experience in all aspects of BSA/AML sanctions enforcement and compliance, includes:
- Developing prospective measures such as AML and sanctions-compliance programs
- Identifying, evaluating. and remediating AML and sanctions-compliance challenges
- Conducting internal investigations to identify the causes of challenges and lookback reviews to identify appropriate scale
- Leading government disclosures and interactions, including enforcement-action defense and settlement negotiations
- Assisting clients in complying with requirements typically contained in enforcement actions and settlements
In addition to AML and sanctions compliance and enforcement services, we provide transaction-related due diligence and risk counseling for mergers and acquisitions, private equity investments, and credit transactions. The team also provides BSA/AML training for boards of directors, executive management, and professional staff.
Noteworthy work by our team includes:
- Representing numerous large, international banks in multiagency regulatory and criminal investigations into compliance with sanctions laws, resulting in deferred prosecution agreements, civil money penalties, cease and desist orders, and independent monitorships; and assisting many of those same institutions in complying with a multitude of sanctions requirements imposed by multiagency settlements
- Representing global financial institutions in front of the DOJ, state attorneys general, and federal and state banking regulators in significant BSA/AML investigations, where multi-agency enforcement actions and criminal liability are at stake
- Assisting the U.S. branch of a foreign global systemically important bank with compliance and reporting requirements of an OCC cease and desist order
- Responding to and resolving numerous OFAC subpoenas initiating civil investigations of compliance with sanctions laws, resulting in cautionary letters or no action being taken by OFAC
- Representing independent board committees of financial institutions charged with investigating deficiencies in their BSA/AML programs
- Developing AML and sanctions compliance programs for a wide range of financial and non-financial institutions, from GSIBs to small community banks, MSBs, virtual currency businesses, residential mortgage lenders, and U.S. exporters
- Representing clients in front of OFAC, including identifying and investigating numerous apparent violations of sanctions laws and drafting voluntary disclosures to OFAC; obtaining OFAC licenses on behalf of our clients; and evaluating the application of U.S. sanctions laws to numerous foreign businesses, individuals, and financial institutions
- Evaluating numerous business arrangements, including prepaid card arrangements and issuance of virtual tokens, to identify MSB registration requirements
- Representing witnesses before numerous congressional committees, including the U.S. Committee on Homeland Security and Government Affairs’ Permanent Subcommittee on Investigations, the U.S. House Financial Services Committee, and the U.S. House Committee on Oversight and Government Reform.
Articles
Special Alert: FinCEN extends AML program, other requirements to banks without federal regulators
On September 14, the Financial Crimes Enforcement Network (FinCEN) issued a final rule to align Bank Secrecy Act (BSA) requirements applicable to most banks with the requirements applicable to banks lacking a “federal functional regulator.” In particular, the final rule will require all non-...
Special Alerts"Relief or risk?: The hidden costs of government lending" by Michelle L. Rogers, Katherine L. Halliday, and Katherine Brockway Katz (National Law Journal)
There is no longer any question that the economy will take years, not months, to fully recover from COVID-19, and additional funding for government and government-backed loans seems inevitable at some point. Examining the programs from the initial COVID-19 relief package provides context for...
ArticlesSpecial Alert: FinCEN outlines approach to BSA enforcement
On August 18, the Financial Crimes Enforcement Network, which has overall responsibility for administering the Bank Secrecy Act, issued a short statement that, for the first time, publicly outlined its approach to BSA enforcement. Of note, FinCEN indicated that it will not base enforcement actions...
Special Alerts"Congress, keep AML reform in the defense spending bill" by Daniel P. Stipano (American Banker)
The House recently passed a defense spending bill that could be used to clear a path for one of the most significant anti-money-laundering legislations since the 2001 Patriot Act. The pending National Defense Authorization Act included sweeping and long-overdue reforms to the Bank Secrecy Act, that...
ArticlesSpecial Alert: OFAC encourages humanitarian aid, promises consideration for Covid-19 compliance challenges
The Department of the Treasury’s Office of Foreign Assets Control recently took two actions to address the impact of Covid-19. First, OFAC issued a fact sheet that consolidates existing authorizations and guidance permitting humanitarian, agricultural, and medical aid to six jurisdictions subject...
Special Alerts"Paycheck Protection Program poses AML compliance challenges" by Daniel P. Stipano and Benjamin W. Hutten (Bloomberg Law)
Promised relief started flowing to small businesses recently under the $350 billion Paycheck Protection Program established by the Coronavirus Aid, Relief, and Economic Security Act, but many lenders releasing funds now face a substantial compliance burden: establishing an anti-money-laundering...
Articles"The hazy legal landscape of cannabis: A review" by Fredrick S. Levin, Daniel P. Stipano, Katherine L. Halliday, and Benjamin W. Hutten (Los Angeles Daily Journal)
The legality of cannabis varies widely on what product is at issue and what law applies. There is significant divergence, and at times direct conflict, between state and federal laws. Under federal law, a slight difference in chemical composition or the marketed use of a product can determine...
ArticlesSpecial Alert: Banks no longer required to file SARs for hemp-related businesses
Federal and state banking regulators confirmed in a December 3 joint statement that banks are no longer required to file a suspicious activity report on customers solely because they are “engaged in the growth or cultivation of hemp in accordance with applicable laws and regulations.” * * * Click...
Special Alerts"Banks need to prep for OFAC Cuban ‘U-Turn’ exception limits" by Benjamin W. Hutten (Bloomberg Law)
The Department of the Treasury’s Office of Foreign Assets Control recently announced changes to its Cuba sanctions intended to further financially isolate the Cuban government. Most importantly, OFAC will effectively rescind the “U-Turn,” an exception to the Cuban embargo that allowed U.S. banks to...
Articles"Guide to monitorships is essential because of lack of statutes, court precedent" co-authored by Daniel R. Alonso (Law.com)
With some regularity over the past 25 years, government actions against corporate actors have resulted in the imposition of independent monitors. “Monitor” can have multiple meanings, but is usually understood to be an independent third party appointed to ensure compliance with regulatory or court-...
Articles"Legislative developments in compliance: The Coordinating Oversight, Upgrading and Innovating Technology, and Examiner Reform Act" by Daniel P. Stipano (FiSCA Currents)
The House Financial Services Committee voted unanimously in May to approve what could become the first anti-money laundering legislation passed since the USA PATRIOT Act in 2001, and the first legislation aimed at reforming the Bank Secrecy Act (BSA). The Coordinating Oversight, Upgrading and...
ArticlesSpecial Alert: OFAC formalizes expectations for sanctions compliance programs
The U.S. Department of the Treasury’s Office of Foreign Assets Control last week issued a framework for OFAC Compliance Commitments , which, for the first time, outlines OFAC’s views on essential elements of a risk-based sanctions compliance program in a single document that can serve as a roadmap...
Special Alerts"BSA/AML for nonbanking institutions" by Daniel P. Stipano (American Bar Association Business Law Today)
The requirements of the Bank Secrecy Act (BSA) and anti-money-laundering laws (AML) are pervasive and longstanding, yet they continue to vex companies trying to comply with them. Regulators have hit virtually all large banks, and many nonbanks, with BSA/AML-related enforcement actions, resulting in...
Articles"Avoiding monetary penalties after OCC enforcement orders" by Daniel P. Stipano (American Bar Association Business Law Today)
In recent years, the OCC has aggressively used its cease and desist authority to address a variety of supervisory problems, including unfair or deceptive acts or practices, Bank Secrecy Act/anti-money laundering, and safety and soundness. As a result, there are a sizeable number of consent cease...
Articles"Banks shouldn’t be middleman in revealing true account owners" by Daniel P. Stipano (American Banker)
The objectives of a recent Financial Crimes Enforcement Network rule — requiring financial firms to verify the identities of true account owners — are undoubtedly laudable. But whether the regulation achieves those objectives is another question. The agency’s Customer Due Diligence rule went into...
ArticlesC-Suite Financial Services Review: BSA/AML for nonbanking institutions
The requirements of the Bank Secrecy Act and anti-money-laundering laws are pervasive and longstanding, yet they continue to vex companies trying to comply with them. Regulators have hit virtually all large banks, and many nonbanks, with BSA/AML-related enforcement actions, resulting in large fines...
C-Suite Review"Improving your odds on the gambling frontier" by Andrew R. Louis, Kathryn L. Ryan, and Tim Lange (SportsBusiness Journal)
The Supreme Court has laid the groundwork for sports betting in any state that wants it, but those predicting an imminent land grab by betting houses may not fully appreciate the deliberate and occasionally painstaking process that most states will likely implement. Careful planning now to...
Articles"Can you comment when SARs come up?" by Preston Burton and Katherine L. Halliday (Banking Exchange)
Recent news related to the investigation of Russian influence in the U.S. political process has drawn the public’s attention to the Suspicious Activity Report (SAR) system and raised questions about its integrity. Financial institutions, among others, are required to file SARs with the Treasury...
Articles"BSA/AML Compliance and Enforcement" By Daniel P. Stipano, Brendan Clegg, and Benjamin W. Hutten (ABA Bank Compliance)
After nine months in office, it seems unlikely that the administration’s efforts to change the existing financial industry regulatory regime will affect enforcement of the Bank Secrecy Act (BSA) and its implementing regulations. To the contrary—it appears that law enforcement and national security...
ArticlesDaniel P. Stipano and Benjamin W. Hutten Authored The Review of Banking & Financial Services Article, "FinCEN's Customer Due Diligence and Beneficial Ownership Rule"
On May 11, 2016, the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) published a long-awaited final rule, Customer Due Diligence Requirements for Financial Institutions (the “Final Rule”). The Final Rule, which impacts anti-money laundering (“AML”)-related obligations...
Articles
News & Blogs
OFAC amends CACR to restrict revenue sources to the Cuban regime
On September 23, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a final rule amending the Cuban Assets Control Regulations (CACR) to further implement portions of the President’s foreign policy to deny the Cuban regime sources of revenue. Among other things, the...
InfoBytesOFAC sanctions individuals for supporting Maduro regime
On September 22, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against five key individuals for allegedly “facilitate[ing] the illegitimate Maduro regime’s efforts to undermine democracy in Venezuela.” The sanctions, issued pursuant to Executive Order...
InfoBytesOFAC issues Iran nuclear and ballistic missile program sanctions
On September 21, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) designated three high-ranking individuals of the Atomic Energy Organization of Iran (AEOI), numerous AEOI subsidiaries, equipment supply companies, and various senior officials working on Iran’s missile programs...
InfoBytesSpecial Alert: FinCEN extends AML program, other requirements to banks without federal regulators
On September 14, the Financial Crimes Enforcement Network (FinCEN) issued a final rule to align Bank Secrecy Act (BSA) requirements applicable to most banks with the requirements applicable to banks lacking a “federal functional regulator.” In particular, the final rule will require all non-...
InfoBytesDaniel P. Stipano extensively quoted in an American Banker article, “Will ‘Fincen Files’ give banks opening to push for AML reform?”
Daniel P. Stipano was extensively quoted on September 23, 2020, in an American Banker article, “Will ‘Fincen Files’ give banks opening to push for AML reform?” which discussed whether the “Fincen Files” will bring attention to the flaws of SARs and other anti-money-laundering efforts, with the...
In The NewsOFAC sanctions Iranian cyber threat group
On September 17, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned an Iranian cyber threat group, 45 associated individuals, and one additional “front company” for allegedly being involved in a Government of Iran (GOI) malware campaign targeting international travel...
InfoBytesOFAC settles with telecommunications company over sanctions violations
On September 17, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a $894,111 settlement with a New York-based telecommunications systems and software company for four apparent violations of the Sudanese Sanctions Regulations (SSR). According to OFAC’s web notice ,...
InfoBytesOFAC sanctions Hizballah-associated Lebanon-based companies
On September 17, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 13224 against two Lebanon-based companies for being owned, controlled, or directed by Hizballah. According to OFAC, the two companies are leveraged by Hizballah “...
InfoBytesOFAC sanctions Russian cybercriminals for $16.8 million crypto scam
On September 16, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned two Russian nationals who were allegedly involved in phishing campaigns targeting virtual asset service providers in 2017 and 2018, resulting in losses of at least $16.8 million. Specifically, the...
InfoBytesFinCEN releases ANPRM on enhancing AML programs
On September 16, the Financial Crimes Enforcement Network (FinCEN) issued an Advance Notice of Proposed Rulemaking (ANPRM) soliciting comments on questions concerning potential regulatory amendments under the Bank Secrecy Act (BSA). According to the ANPRM, the proposed amendments “are intended to...
InfoBytes
Press Releases & Announcements
Daniel P. Stipano Receives Leadership Award From Association of Certified Anti-Money Laundering Specialists
The Association of Certified Anti-Money Laundering Specialists (ACAMS) awarded Buckley Sandler partner Daniel P. Stipano the 2017 AML/CTF Leadership in Government award at the ACAMS MoneyLaundering.com 22nd Annual International AML & Financial Crime Conference on April 4, 2017, in Hollywood...
AnnouncementsFormer Director of Enforcement and Compliance for the Office of the Comptroller of the Currency Joins Buckley Sandler
WASHINGTON, DC (March 13, 2017) – Buckley Sandler LLP announced today that Ellen M. Warwick , former Director for Enforcement and Compliance for the Office of the Comptroller of the Currency (OCC), has joined the firm as a Senior Counsel. Resident in the firm’s Washington, DC office, Warwick will...
Press ReleasesFormer Deputy Chief Counsel for Office of the Comptroller Joins BuckleySandler
WASHINGTON, DC (January 3, 2017) – BuckleySandler LLP, a premier financial services, government enforcement and litigation law firm, announced today that former Deputy Chief Counsel for the Office of the Comptroller of the Currency (OCC), Daniel P. Stipano has joined the firm as a Partner in its...
Press ReleasesBuckley Sandler Establishes International Presence With Opening of London Office
WASHINGTON, DC / LONDON, ENGLAND (September 8, 2014) – Buckley Sandler LLP , a leading financial services and criminal & civil enforcement defense law firm, announced today the opening of its first international office, located in London. James T. Parkinson has relocated from the firm’s...
Press Releases
Our Bank Secrecy Act/Anti-Money Laundering & Sanctions Team
Partners
FYI
Special Alert: FinCEN outlines approach to BSA enforcement
"Congress, keep AML reform in the defense spending bill" by Daniel P. Stipano (American Banker)
"Paycheck Protection Program poses AML compliance challenges" by Daniel P. Stipano and Benjamin W. Hutten (Bloomberg Law)
Recent Blog Posts
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September 25, 2020
OFAC amends CACR to restrict revenue sources to the Cuban regime
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September 24, 2020
OFAC sanctions individuals for supporting Maduro regime
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September 23, 2020
OFAC issues Iran nuclear and ballistic missile program sanctions
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September 23, 2020
Special Alert: FinCEN extends AML program, other requirements to banks without federal regulators
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September 22, 2020
OFAC sanctions Iranian cyber threat group