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 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 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
"Square peg meets round hole: Regulatory responses to challenges created by innovation in banking" by Jonice Gray Tucker, Kari K. Hall, Brendan Clegg, and Anthony Carral (The Business Lawyer)
During the past decade, an underlying tension between the financial sector’s embrace of innovative products and services and the regulatory framework that governs the industry surfaced—and that tension has since become even more acute during the COVID-19 pandemic. Facing pressure from customers’...
ArticlesSpecial 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 AlertsSpecial 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 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, 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-...
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"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 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...
ArticlesBenjamin 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...
ArticlesBrendan Clegg Authored Banking Exchange Article, "Don’t Get Burned by Coming CDD Rule"
FinCEN’s issuance of the final customer due diligence (CDD) rule in May 2016 significantly altered the Bank Secrecy Act / Anti-Money Laundering (BSA/AML) compliance landscape.1 Insured depository institutions, among other covered financial entities, must comply with the rule by May 11, 2018. The...
Articles"FinTech: The emerging financial crime compliance minefield" co-authored by Daniel R. Alonso (Business Crimes Bulletin)
More than ever, the intersection of technology and financial crime compliance (FCC) for financial institutions is dynamic terrain. At the same time, technology continues to improve, and sometimes disrupt the way in which consumers and businesses participate in the financial services industry. The...
Articles"Do not bet against it: Heightened scrutiny of casinos is here to stay" by Daniel R. Alonso (ACAMS Today)
What happens in Vegas, stays in Vegas” may still apply to bachelor parties, but it is no longer true for gaming. Just as the days of the discreet private banker have gone the way of the fax machine, so, too, has the halcyon era of anonymous gaming in land-based casinos. Recent events have made it...
ArticlesSpecial Alert: Lessons Learned from Arab Bank's U.S. Anti-Terrorism Act Verdict
On September 22, 2014, following a two-month trial, a federal jury in the Eastern District of New York ruled in favor of a group of 297 individual plaintiffs in a civil suit accusing Arab Bank PLC, headquartered in Amman, Jordan, of supporting terrorism. Linde vs. Arab Bank PLC , No. 1:04-CV-2799 (...
ArticlesSpecial Alert: FinCEN Finalizes New Anti-Money Laundering Rules for Nonbank Mortgage Lenders and Originators
On February 7, the Financial Crimes Enforcement Network (FinCEN) released a final rule that subjects nonbank residential mortgage lenders and originators to certain anti-money laundering (AML) regulations already applicable to other types of financial institutions. Under the new regulations,...
Articles
News & Blogs
OFAC issues new general license and related FAQs involving Chinese military companies
On January 14, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) issued General License (GL) 2, “Authorizing Securities Exchanges Operated by U.S. Persons to Engage in Transactions Involving Securities of Communist Chinese Military Companies.” This license permits transactions...
InfoBytesOFAC issues Hong Kong-related sanctions regulations, updates SDN List
On January 15, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) issued regulations implementing Executive Order (E.O.) 13936 issued last July. As previously covered by InfoBytes , E.O. 13936, among other things, targets and authorizes the imposition of sanctions on persons who...
InfoBytesIndonesian manufacturer reaches $1 million North Korea-related settlement with OFAC, enters into deferred prosecution agreement with DOJ
On January 14, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a more than $1 million settlement with an Indonesian-based paper products manufacturer for 28 apparent violations of the North Korea Sanction Regulations. According to OFAC’s web notice , between 2016...
InfoBytesOFAC updates CAATSA FAQs
On January 5, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced the publication of two new FAQs related to the Countering America’s Adversaries Through Sanctions Act (CAATSA). FAQ 869 states that entities owned 50 percent or more by a person subject to the non-...
InfoBytesOFAC issues Syria-related settlement with French bank for $8.5 million
On January 4, the Department of Treasury’s Office of Foreign Assets Control (OFAC) announced an over $8.5 million settlement with a French bank that facilitates trade finance between Europe and the Middle East, North Africa, sub-Saharan Africa, and Asia for 127 apparent violations of Syria-related...
InfoBytesOFAC sanctions organizations controlled by the Supreme Leader of Iran
On January 13, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against two purportedly charitable organizations controlled by the Supreme Leader of Iran, as well as their leaders and subsidiaries, for, among other things, allegedly controlling assets...
InfoBytesOFAC sanctions individuals and entities for Russian-linked election interference
On January 11, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against seven individuals and four entities that are allegedly part of a Russia-linked foreign influence network associated with a Russian agent previously designated for his attempt to...
InfoBytesOFAC announces several actions related to securities transactions involving Chinese military companies
On January 8, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) issued General License (GL) 1 —“Authorizing Transactions Involving Securities of Certain Communist Chinese Military Companies.” This license permits transactions and activities otherwise prohibited by Executive...
InfoBytesOFAC issues amended Venezuela-related general license, sanctions Venezuelan officials
On January 4, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) issued Venezuela-related General License (GL) 31A and an amended related frequently asked question . GL 31A authorizes certain transactions and activities involving the IV Venezuelan National Assembly, the Interim...
InfoBytesOFAC reaches settlement with Saudi Arabian bank to resolve Sudanese and Syrian sanctions violations
On December 28, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced a $653,347 settlement with a Saudi Arabian bank to resolve 13 apparent violations of the Sudanese Sanctions Regulations, or section 2(b) of Executive Order (E.O.) 13582, which prohibits certain...
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
"Square peg meets round hole: Regulatory responses to challenges created by innovation in banking" by Jonice Gray Tucker, Kari K. Hall, Brendan Clegg, and Anthony Carral (The Business Lawyer)
Special Alert: FinCEN extends AML program, other requirements to banks without federal regulators
"Relief or risk?: The hidden costs of government lending" by Michelle L. Rogers, Katherine L. Halliday, and Katherine Brockway Katz (National Law Journal)
Recent Blog Posts
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January 20, 2021
OFAC issues new general license and related FAQs involving Chinese military companies
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January 20, 2021
OFAC issues Hong Kong-related sanctions regulations, updates SDN List
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January 20, 2021
Indonesian manufacturer reaches $1 million North Korea-related settlement with OFAC, enters into deferred prosecution agreement with DOJ
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January 15, 2021
OFAC updates CAATSA FAQs
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January 15, 2021
OFAC issues Syria-related settlement with French bank for $8.5 million