The Anti-Money Laundering Act of 2020 (AMLA 2020) requires FinCEN to implement and maintain a database to identify people who ultimately own or control legal entities (called ultimate beneficial owners, or UBOs). The requirement was designed to add transparency and address deficiencies in the U.S.… Read More »Creating Transparency: Beneficial Ownership Rules Finalized
In the latest sign of the escalating tension in the regulation of cryptocurrency products (and, according to many, regulation by enforcement), New York and seven other state regulators charged cryptocurrency lender Nexo Group for failing to register its crypto lending product as a security. According… Read More »Regulators Charge Crypto Lending Platform (Again)
Money transfer company Wise was fined $360K by Abu Dhabi regulators for violating the country’s AML laws. The country’s financial governing agency, Financial Services Regulatory Authority (FSRA), found that the company “did not establish nor maintain adequate AML systems and controls to ensure full compliance… Read More »Wise FIned $360K for AML Violations
OFAC consistently states there’s no “one size fits all” approach to screening accounts and transactions for potential sanctions violations. However, the Finding of Violation (FOV) recently issued to MidFirst Bank calls that position into question. OFAC issued the FOV because MidFirst maintained and processed 34… Read More »OFAC Daily Screenings: Are Your Vendors Performing?
Last week, the New York State Department of Financial Services (“NYDFS”) fined Robinhood’s crypto trading unit $30 million. The crypto retail trading platform failed to implement controls reasonably designed to prevent cybersecurity and money-laundering violations. In addition to the penalty, Robinhood must retain an independent… Read More »Robinhood’s Crypto Unit Fined for Major Compliance Issues
There are numerous potential downsides once regulators suspect AML infractions – operational, reputational, financial, and more. Flutterwave, a digital payments start-up with headquarters in Nigeria and San Francisco, was recently accused by Kenya’s High Court of AML improprieties. In court papers, the regulators said it… Read More »Flutterwave Denies Kenyan Regulator’s AML Claims
An amended version of the ENABLERS Act (“Establishing New Authorities for Business Laundering and Enabling Risks to Security”), informally known as the “Gatekeepers Amendment” introduced by Rep. Maxine Waters (D-CA), cleared the House on Thursday, July 14, 2022. If passed, the bill would impose anti-money… Read More »House Amends ENABLERS Act: Adds More Industries Under BSA/AML Scope