The editors regularly update Red Flags for Suspicious Activities at Financial Institutions when new studies and documents uncover activities that should be regarded as suspicious by personnel at financial institutions. Recently, a study of mortgage loan fraud added new red flags to the checklist. Although the checklist is arranged by specific types of financial institutions, we recommend that compliance personnel and others read the entire checklist from time to time—activity encountered by tellers at a bank one year may, with slight variation, be found by broker-dealers in another year. Criminals adapt crimes to new environments, and compliance officers must be sure that employees adapt their detection skills as well. Click on COMPLIANCE TOOLS to download.

7/8/2010 The Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010
The Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, Pub. L. 111-195, imposes additional economic sanctions in an effort to stop or at least impede Iran’s nuclear program and terrorist activities. more>>

7/1/2010 FinCEN Proposes New Rules on Gift Cards and Other Prepaid Access Devices
A gift card is one of the simpler types of “stored value” devices included under the anti-money laundering regulations.  A transit card for the New York City transit system is another.  Unfortunately for FinCEN, which introduced regulations regarding such devices in 1997, the terminology of the industry has evolved and “stored value” is not widely used, nor really accurate. more>>

6/9/2010 Savings Bank Had Numerous MSB Customers, Yet Did Not Distinguish Customers with Heightened Risks
Pamrapo Savings Bank of Bayonne, New Jersey, has been fined $1 million for Bank Secrecy Act violations. Reading the enforcement action, one wonders why the fine was so lowmore>>

3/22/10 Hiring Incentives Act Contains New Witholding Requirements
IThe new law includes provisions that make it easier for the IRS to monitor accounts at foreign financial institutions.
On March 18, President Obama signed the Hiring Incentives to Restore Employment Act (PL 111-147), designed to encourage the hiring of unemployed workers, providing payroll tax forgiveness for hiring unemployed workers and a business tax credit for retention of newly hired individuals in 2010. more>>

3/12/10 No-action Letter for Broker-Dealers’ Having Registered Investment Advisers Perform CIP Function Adds New Requirement
IEvery two years, the SEC has issued a no-action letter providing that broker-dealers may rely on registered investment advisers to perform customer identification program functions. As expected, a no-action letter was issued on January 11 to the Securities Industry and Financial Markets Association. more>>

2/16/10 FinCEN Expands Information Sharing Coverage to Include Foreign Law Enforcement Agencies
IFinancial institutions can expect to begin receiving information sharing requests from foreign law enforcement agencies under rules adopted by FinCEN in February. more>>

1/26/10 Customer Identification Program Address Requirement May Be Satisfied by State Agency Address Where Customer Is Victim of Domestic Violence
In 31 states, victims of domestic violence, sexual assault, and stalking may arrange to receive their mail under a state program which keeps their physical addresses private. more>>

1/04/10 FinCEN Finds Banks Still Reluctant to Use Certain Exemptions or Provide Services to MSBs
FinCEN has released a report on bank practices and procedures regarding anti-money laundering programs. The Report notes that filing more than one SAR on a customer may trigger an exit strategy for some banks. more>>

10/19/09 Suspicious Activity Reports Relating to TARP Programs Described
The quarterly report to Congress filed in July by the Special Inspector General for the Troubled Asset Relief Program said that Treasury should require Public-Private Investment Fund (PPIF) managers to “provide Treasury with the identities of all of the beneficial owners of the private interests in the fund so that Treasury can do appropriate diligence to ensure that investors in the funds are legitimate.”   more>>

10/5/09 Red Flag Advisories Increase SAR Reporting of Mortgage Rescue Scams
In a recent gathering of agencies dealing with mortgage rescue scams and loan modification frauds, FinCEN detailed its efforts to detect such frauds and to forward information to the law enforcement community.   more>>

8/20/09 Some FBAR Filers Have Until June 2010 to File, and Some May Never Have to File
On June 5, 2009, the IRS announced a temporary suspension of the FBAR filing requirement for persons who are not U.S. citizens, residents, or domestic entities.  On May 6 and June 24, 2009, the IRS posted questions and answers on its website providing relief to those only recently learning of their FBAR filing obligations, with a filing deadline of September 23, 2009.  more>>

8/14/09 Casino Industry Remains Vulnerable to Money Laundering Schemes
The Financial Action Task Force has issued a detailed report on the vulnerabilities of casinos to money laundering and perhaps even terrorist financing, though the FATF acknowledges that no specific instances of terrorist financing have been reported. more>>

6/10/09 FinCEN Proposals Would Apply CTR and Recordkeeping Rules to Mutual Funds
The Financial Crimes Enforcement Network is proposing to add mutual funds to the basic list of financial institutions in 31 CFR 103.11(n). more>>

5/19/09 FinCEN Report Adds New Red Flags for Securities/Futures Industry Participants
FinCEN’s 15th SAR Activity Report: Trends, Tips & Issues, focuses on the securities and futures industries. more>>

5/14/09 FinCEN Proposes Revisions to MSB Definitions, Stored Value Release Expected
FinCEN is proposing revisions to its MSB definitions along with some reorganization of the MSB provisions. more>>