Bank Secrecy Act/Anti-Money Laundering & Sanctions
Practice Overview
Compliance with money laundering and sanctions laws has become a global imperative. Failure to rigorously comply with the myriad of laws, regulations, and government expectations can result in fines, forfeitures, indictments, cease and desist orders, and other administrative actions and a loss of public confidence, reputation, shareholder value, and business license. Buckley assists clients in establishing and designing, enhancing and maintaining, reviewing and monitoring Anti-Money Laundering (AML) and Economic and Trade Sanctions (ETS) compliance programs.
Our team is comprised of former banking enforcement and securities regulators, including the former Deputy Chief Counsel of the Office of the Comptroller of the Currency (OCC), the former Director of the Enforcement and Compliance Division of the OCC, federal prosecutors, and financial services in-house compliance officers and bank counsel. Our attorneys represent financial services companies and other businesses in internal investigations and enforcement actions by the Department of Justice (DOJ), state prosecution authorities, the Financial Crimes Enforcement Network (FinCEN), the Securities and Exchange Commission (SEC), the Office of Foreign Assets Control (OFAC), and all federal and state bank and nonbank regulatory authorities. Our attorneys also serve as independent consultants and court/regulator appointed monitors under remediation orders.
Our AML/ETS advice includes compliance program design, maintenance, and testing. We advise on all aspects of the Bank Secrecy Act (BSA) and OFAC compliance. We defend companies and individuals in regulatory examinations and enforcement investigations and litigation, and are involved in Know Your Customer (KYC) remediations. Our team works with clients on lookbacks and forensic examinations, suspicious activity identification and reporting, and transaction monitoring system tuning. In addition, we provide due diligence and risk counseling in connection with mergers and acquisitions and credit transactions, as well as AML and BSA training for boards of directors, executive management, and professional staff. We are also involved in Money Services Business (MSB) licensing and independent consultancies/monitorships.
Noteworthy work in this area includes:
- Representation of a major financial institution in a BSA/AML enforcement action that resulted in a cease and desist order by federal and state banking regulators and a deferred prosecution agreement with the DOJ
- Representation of Independent Board Committees of financial institutions charged with investigating deficiencies in their BSA/AML programs
- Representation of a major regional financial institution operating under a cease and desist order in connection with comprehensive BSA/AML program deficiencies including an extensive lookback
- Representation of a financial institution in a major BSA/AML enforcement action involving the DOJ, Federal Reserve, FinCEN, and a state banking agency resulting in a deferred prosecution agreement, cease and desist order, $40 million forfeiture, and $10 million penalty
- Representation of clients in matters relating to money laundering compliance issues and investigations and litigation by the U.S. Attorney’s Office for the Southern District of New York, the Manhattan District Attorney’s Office, the U.S. Department of Treasury, the SEC, and various congressional committees, including the U.S. Committee on Homeland Security and Government Affairs Permanent Subcommittee on Investigations, the U.S. House Financial Services, and the U.S. House Committee on Oversight and Government Reform
- Response to potential violations by subsidiaries of OFAC sanctions on trade with the Sudan, including assessing the need for self-disclosure; also assisted our client in assessing possible sanctions-compliant investments in Burma/Myanmar
- Representation of witnesses providing testimony before Congress on BSA/AML topics
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...
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"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"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"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...
ArticlesDaniel P. Stipano Authored a Currents Article, "Banks Can Provide Services to MSBs While Meeting BSA Requirements"
In recent years, "de-risking" – the categorical termination of customer accounts – has resulted in the loss of access to the banking system for scores of businesses. But none have been harder hit than money services businesses (MSBs). Check cashers, payday lenders, money transmitters, and other...
ArticlesDaniel P. Stipano and Brendan 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...
ArticlesDaniel P. Stipano Authored a Banking Exchange Article, "BSA Info Sharing Could be Greatly Improved"
The Bank Secrecy Act regulatory regime depends heavily on the sharing of information—from financial institutions to the government, from the government to institutions, and from institutions to each other. Robust information sharing better positions institutions to conduct customer due diligence;...
ArticlesPartner Dan Stipano in American Banker Article: Time to Bring BSA into this Century
As the Bank Secrecy Act approaches its 50th anniversary, legitimate questions have arisen about the efficacy of anti-money-laundering requirements and the burden of compliance. The pace of technological advances in the financial services industry, coupled with the negative consequences of...
Articles
News & Blogs
FinCEN advisory updates FATF-identified jurisdictions with AML/CFT deficiencies
On March 26, the Financial Crimes Enforcement Network (FinCEN) issued an advisory on Financial Action Task Force (FATF)-identified jurisdictions with “strategic deficiencies” in their anti-money laundering and combating the financing of terrorism (AML/CFT) regimes. As previously covered by...
InfoBytesOFAC sanctions front company network for providing financial support to Islamic Revolutionary Guards
On March 26, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 13224 against 20 Iran- and Iraq-based front companies and individuals for providing financial support to the Islamic Revolutionary Guards Corps-Qods Force, as well as...
InfoBytesDOJ unveils charges against Maduro, Venezuelan government officials
On March 26, the DOJ announced criminal charges against numerous current and former Venezuelan government officials, including “Former President” Nicolás Maduro Moros and two Fuerzas Armadas Revolucionarias de Colombia (FARC) leaders. The charges include allegedly engaging in drug trafficking,...
InfoBytesOFAC extends two Ukraine-related general licenses
On March 20, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced it extended the expiration dates of two Ukraine-related general licenses (GLs) by issuing GL 13N , which supersedes GL 13M, and GL 15H , which supersedes GL 15G. Both GLs—which now expire July 22—authorize...
InfoBytesOFAC sanctions additional Russian oil brokerage firm for doing business with Venezuela
On March 12, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order (E.O.) 13850 against a Russian oil brokerage firm for operating in the oil sector of the Venezuelan economy. According to OFAC, following the February 18 designation...
InfoBytesOFAC targets companies for facilitating Iranian petroleum products
On March 19, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 13382 against five United Arab Emirates-based companies for facilitating the Iranian regime’s petroleum and petrochemical sales, which helps to finance Iran’s Islamic...
InfoBytesFinCEN issues guidance on BSA reports
On March 16, the Financial Crimes Enforcement Network (FinCEN) issued a release reminding financial institutions affected by Covid-19 to contact the agency and their functional regulator as soon as practicable if they anticipate delays in filing their Bank Secrecy Act reports. Financial...
InfoBytesFINRA posts FAQs related to regulatory relief during the Covid-19 pandemic
Since March 18, FINRA has been maintaining and updating FAQs related to regulatory relief due to the Covid-19 pandemic. The FAQs discuss questions concerning, among other things, advertising regulation, anti-money laundering, best execution for buying and selling securities, broker-dealer...
InfoBytesWisconsin declares money laundering a state crime; provides penalties
On March 3, the Wisconsin governor signed SB 368 , which criminalizes money laundering in the state and specifies penalties based on the amount of proceeds involved. Among other things, SB 368 outlines the contours of prohibited “money laundering” conduct, and establishes that any transaction where...
InfoBytesChinese nationals sanctioned and charged with laundering over $100 million in cryptocurrency from hacked exchange
On March 2, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Orders 13694, 13757, and 13722 against two Chinese nationals for allegedly laundering over $100 million in stolen cryptocurrency connected to a North Korean state-sponsored...
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
"Banks need to prep for OFAC Cuban ‘U-Turn’ exception limits" by Benjamin W. Hutten (Bloomberg Law)
"Legislative developments in compliance: The Coordinating Oversight, Upgrading and Innovating Technology, and Examiner Reform Act" by Daniel P. Stipano (FiSCA Currents)
"BSA/AML for nonbanking institutions" by Daniel P. Stipano (American Bar Association Business Law Today)
Recent Blog Posts
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March 31, 2020
FinCEN advisory updates FATF-identified jurisdictions with AML/CFT deficiencies
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March 31, 2020
OFAC sanctions front company network for providing financial support to Islamic Revolutionary Guards
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March 31, 2020
DOJ unveils charges against Maduro, Venezuelan government officials
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March 26, 2020
OFAC extends two Ukraine-related general licenses
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March 20, 2020
OFAC sanctions additional Russian oil brokerage firm for doing business with Venezuela