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
"Companies doing business in China caught in a double bind" by Michael Rosenberg
Continuing tensions between the U.S. and China are creating concerns for multinational companies doing business in China. Last June, China enacted the Anti-Foreign Sanctions Law, designed to counteract “discriminatory restrictive measures employed by foreign nations” against Chinese citizens or...
Buckley Commentary & AnalysisSpecial Alert: NYDFS fines trading platform for BSA/AML, transaction monitoring, and cybersecurity lapses
The New York Department of Financial Services and a trading platform on Aug. 1 entered into a consent order to resolve deficiencies identified during a 2019 examination and a subsequent investigation by the department’s enforcement section. The consent order focused on deficiencies related to Bank...
Special AlertsSpecial Alert: Latest developments in OFAC sanctions against Russia
Beginning February 21, the U.S. Department of the Treasury’s Office of Foreign Assets Control has issued significant sanctions in response to the Russian Federation’s military invasion of Ukraine and its recognition of Ukraine’s separatist regions. Since Buckley’s last update on February 25 , there...
Special AlertsSpecial Alert: NYDFS guidance on cybersecurity and virtual currency responds to events in Ukraine
The New York Department of Financial Services last week issued guidance on its cybersecurity and virtual currency regulations in response to the Russian military actions in Ukraine and recently imposed sanctions. NYDFS specifically raised the specter of elevated cyber risk due to ongoing...
Special AlertsSpecial Alert: Russian invasion of Ukraine triggers significant sanctions (updated)
Over the past few days, and following weeks of clear signals that sanctions would be imposed in response to military activity, the Biden administration issued significant new sanctions in response to the Russian Federation’s military invasion of Ukraine and its recognition of Ukraine’s separatist...
Special AlertsSpecial Alert: Russian invasion of Ukraine triggers significant sanctions
On February 21 and 22, following weeks of clear signals that sanctions would be imposed in response to military activity, the Biden administration issued significant new sanctions in response to the Russian Federation’s recognition of separatist regions of Ukraine and incursions of Russian troops...
Special Alerts"Reaching overseas: U.S. AML reform expands foreign bank subpoena power" by Daniel R. Alonso and Benjamin W. Hutten (American Bar Association Section of International Law Newsletter)
In one of its first acts of 2021, the United States Congress enacted the Anti-Money Laundering Act of 2020 (AMLA), which significantly expands the U.S. government’s ability to subpoena records of foreign banks held outside the United States. Before the enactment of AMLA, the USA PATRIOT Act...
Articles"Compliance lessons in recent Office of Foreign Assets Control enforcement" by Benjamin W. Hutten (Journal of Financial Compliance)
In May 2019, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC), which administers US sanctions laws, issued a broad framework identifying what OFAC views as the essential elements of risk-based sanctions compliance. At the same time, OFAC announced that it would consider...
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 AlertsSpecial 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 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 (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...
Articles
News & Blogs
Senators request information from California bank on its relationship with collapsed crypto exchange
On December 5, Senators Elizabeth Warren (D-MA), John Kennedy (R-LA), and Roger Marshall (R-KS) asked the CEO of a California-based bank for information regarding its relationship with several cryptocurrency firms founded by the CEO of a now-collapsed crypto exchange. In their letter, the senators...
InfoBytesTreasury official flags “de-risking” as a concern in combating illicit financial risks
On December 5, Assistant Secretary for Terrorist Financing and Financial Crimes at the U.S. Department of Treasury Elizabeth Rosenberg outlined key illicit finance risks impacting the broader financial system during the ABA/ABA Financial Crimes Enforcement Conference. Rosenberg noted that for many...
InfoBytesFinCEN’s Das discusses agency’s priorities
On December 6, FinCEN acting Director Himamauli Das spoke before the ABA/ABA Financial Crimes Enforcement Conference about how FinCEN is addressing new threats, new innovations, and new partnerships, in addition to its efforts to implement the AML Act. Das first began by speaking about beneficial...
InfoBytesOFAC sanctions Haitian politicians
On December 2, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 14059 against two Haitian politicians for their involvement in activities or transactions that have materially contributed to, or pose a significant risk of...
InfoBytesOFAC sanctions officials connected to DPRK
On December 1, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against three North Korean officials for providing support to the Democratic People’s Republic of Korea’s (DPRK) development of weapons of mass destruction (WMD) and ballistic missiles...
InfoBytesTreasury announces price cap on Russian crude oil
On December 2, the U.S. Treasury Department announced an agreement entered into by the 27 member states of the European Union and the members of the G7 (collectively, the “Price Cap Coalition”), which adopts a price cap on seaborne Russian crude oil in an effort to restrict Russian revenue streams...
InfoBytesOFAC sanctions Hizballah accountants and weapons facilitator
On December 1, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 13224 against two individuals and two companies based in Lebanon for providing financial services to Hizballah. OFAC also designated another individual for actively...
InfoBytesOFAC sanctions Iranian officials
On November 23, the U.S. Treasury Department Office of Foreign Assets Control (OFAC)) announced sanctions pursuant to Executive Order 13553 against three Iranian security officials related to the Iranian regime’s continued crackdown on ongoing protests throughout the country, including most...
InfoBytesOFAC sanctions persons exploiting Guatemala mining sector
On November 18, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 13818 against a Russian national and a Belarusian national, as well as three associated entities, “for their role in exploiting the Guatemalan mining sector.” OFAC...
InfoBytesOFAC announces sanctions tied to Mexican drug cartel
On November 17, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 14059 against a Mexican drug cartel and its co-leaders for “having engaged in, or attempted to engage in, activities or transactions that materially contributed 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: NYDFS guidance on cybersecurity and virtual currency responds to events in Ukraine
Special Alert: Russian invasion of Ukraine triggers significant sanctions (updated)
Recent Blog Posts
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December 9, 2022
Senators request information from California bank on its relationship with collapsed crypto exchange
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December 9, 2022
Treasury official flags “de-risking” as a concern in combating illicit financial risks
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December 9, 2022
FinCEN’s Das discusses agency’s priorities
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December 8, 2022
OFAC sanctions Haitian politicians
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December 8, 2022
OFAC sanctions officials connected to DPRK