Money Laundering, Terrorism and Financial Institutions - USA Patriot Act Monitor
Published by Civic Research Institute
Money Laundering, Terrorism and Financial Institutions
Law • Regulation • Compliance • USA PATRIOT Act Monitor
Editors: Raymond Banoun, J.D. and John Ensminger, J.D., LL.M.
 
Part I: Terrorism, Money Laundering and the USA PATRIOT Act
Part II: Financial Institutions’ Anti-Money Laundering and Anti-Terrorism Responsibilities
Part III: Money Laundering and Currency Reporting Laws
Part IV: Regulatory Agencies and Supervisory and Enforcement Procedures
Part V: International Agencies and Foreign Country Enforcement
 

Part I: Terrorism, Money Laundering and the USA PATRIOT Act

Chapter 1.1 -- Effect of September 11 on Financial Institutions, Legislative Initiatives, and Regulatory Attitudes

Chapter 1.2 -- Impact of the USA PATRIOT Act on Financial Institutions

  • 1.2-1 International Money Laundering Abatement and Anti-Terrorism Financing Act of 2001
    • [1] General Effect of Legislation
    • [2] Executive Order No. 13224
  • 1.2-2 Covered Institutions
  • 1.2-3 Affected Institutions
  • 1.2-4 Expanded Coverage
    • [1] Anti-Money Laundering Program Requirement
    • [2] Treasury’s Interim Final Rules For Financial Institutions
    • [3] Securities Brokers and Dealers
    • [4] Futures Commission Merchants and Introducing Brokers
    • [5] Mutual Funds
    • [6] Investment Companies and Funds
    • [7] Minimum Identification Standards
  • 1.2-5 Reporting Suspicious Activities by Brokers and Dealers and Investment Companies
    • [1] Securities Brokers and Dealers
    • [2] Commodities Traders
    • [3] Investment Companies and Fund
  • 1.2-6 Enhanced Due Diligence for Correspondent Accounts and Private Banking
    • [1] Correspondent Account Regulations
    • [2] Private Banking Account Regulations
  • 1.2-7 Prohibition of Correspondent Accounts With Foreign Shell Banks
    • [1] Interim and Proposed Guidance
    • [2] Industry Comments
  • 1.2-8 Regulation of Concentration Accounts
  • 1.2-9 Special Measures
  • 1.2-10 Additional Underlying Offenses to Money Laundering
  • 1.2-11 New Document Production Requirements
    • [1] Production of Records Located Outside the United States; Penalty for Failure to Comply
    • [2] The 120-Hour Rule
    • [3] Credit Histories
    • [4] Safe Harbor Provision
    • [5] Disclosures in Employment References
    • [6] Disclosure of Information at the Request of the Government
    • [7] Disclosure of Grand Jury Material
    • [8] Expansion of Authority of the FBI to Obtain Financial Records
    • [9] Disclosure of Account Information To Other Institutions
  • 1.2-12 Expansion of Extraterritorial Jurisdiction and Forfeiture of Assets
    • [1] Pre-Trial Restraining Orders
    • [2] Seizure and Forfeiture of Substitute Assets
    • [3] Blocking Assets to Satisfy Foreign Judgments
    • [4] Property Related to Terrorist Activities
  • 1.2-13 Additional Reasons for Instituting Effective Anti-Money Laundering Programs
    • [1] Department of Justice Enforcement Action Decisions Affected by Compliance Programs
    • [2] Federal Sentencing Guidelines
    • [3] SEC Framework for Evaluating Cooperation

Part II: Financial Institutions’ Anti-Money Laundering and Anti-Terrorism Responsibilities

Chapter 2.1 -- General Requirements for Financial Institutions

  • 2.1-1 Definition of Financial Institution under Bank Secrecy Act
  • 2.1-2 Currency Transaction Reporting and Recordkeeping
    • [1] Purchases of Bank Checks and Drafts, Cashier’s Checks, Money Orders and Traveler’s Checks
    • [2] Funds Transfers
    • [3] Transportation of Currency and Monetary Instruments
    • [4] Transactions With Foreign Financial Agencies
  • 2.1-3 Suspicious Activity Reporting
  • 2.1-4 Penalties for Noncompliance With Reporting and Recordkeeping Requirements
    • [1] Civil Penalties
    • [2] Criminal Penalties
  • 2.1-5 Money Laundering Programs for Financial Institutions
  • 2.1-6 Information Sharing
    • [1] Information Sharing With the Federal Government
    • [2] Voluntary Information Sharing Among Financial Institutions
  • 2.1-7 Correspondent Relationships
    • [1] Correspondent Account Defined
    • [2] Permanent Subcommittee Report on Correspondent Banking
    • [3] Regulation of Correspondent Relationships
  • 2.1-8 Due Diligence For Private Banking and Correspondent Accounts
    • [1] Proposed Due Diligence Regulations
    • [2] Noncooperative Countries
    • [3] Private Banking Accounts for Non-U.S. Persons
  • 2.1-9 Associations of Financial Institutions

Chapter 2.2 -- Banks

  • 2.2-1 Definition of Bank
  • 2.2-2 Currency Transaction Reporting and Recordkeeping
    • [1] Exempt Persons
    • [2] Revocation of Exemption by FinCEN
  • 2.2-3 Suspicious Activity Reporting by Banks
    • [1] Maintaining Records
    • [2] Confidentiality
  • 2.3-4 Information for Opening Accounts
  • 2.2-5 Commercial Banks
    • [1] Definition of Commercial Banking
    • [2] Currency Transaction and Suspicious Activity Reporting
  • 2.2-6 Trust Companies
  • 2.2-7 Savings and Thrift Institutions
  • 2.2-8 Credit Unions
  • 2.2-9 Private Banks
    • [1] Federal Reserve Guidance
    • [2] FATF Typologies Report and Private Banking Issues
  • 2.2-10 Foreign Banks
    • [1] Definition of Foreign Bank
    • [2] Foreign Bank and Financial Account Reporting
  • 2.2-11 Corporations Conducting Overseas Banking Operations
  • 2.2-12 State-Regulated Institutions
  • 2.2-13 Bank Holding Companies
  • 2.2-14 Other Institutions With Banking Activities

Chapter 2.3 -- Brokers, Dealers, Exchange Activities, Mutual Funds

  • 2.3-1 Brokers and Dealers
    • [1] GAO Report on Vulnerability of the Securities Industry
    • [2] Definition of Broker or Dealer
    • [3] Identification of Account Holders
    • [4] Suspicious Activity Reporting
    • [5] Accounts in Foreign Securities Firms
  • 2.3-2 Anti-Money Laundering Programs of Self-Regulatory Organizations
  • 2.3-3 Commodities, Currency, and Futures Activities
    • [1] Futures Commission Merchants and Introducing Brokers
    • [2] Commodity Pool Operators
    • [3] Commodity Trading Advisors
  • 2.3-4 Funds
    • [1] Mutual Funds
    • [2] Investment Companies
    • [3] Investment Advisors
    • [4] Hedge Funds
    • [5] Private Equity Funds
    • [6] Venture Capital Funds
  • 2.3-5 Exchanges, Clearing Agencies, and Other Trading-Related Entities

Chapter 2.4 -- Insurance Companies

  • 2.4-1 Currency Transaction and Suspicious Activity Reporting
  • 2.4-2 Suspicious Activity Reporting
  • 2.4-3 Anti-Money Laundering Programs
  • 2.4-4 OFAC Compliance Guidelines for Insurers

Chapter 2.5 -- Money Services Businesses

  • 2.5-1 Definition of Money Services Business
  • 2.5-2 Registration of Money Services Businesses
  • 2.5-3 Currency Transaction and Suspicious Activity Reporting
  • 2.5-4 Anti-Money Laundering Programs
  • 2.5-5 Currency Dealers and Exchangers
    • [1] Customer Identification and Record Retention
    • [2] Recordkeeping
  • 2.5-6 Check Cashers
  • 2.5-7 Issuers, Redeemers, and Cashiers of Traveler’s Checks and Money Orders
  • 2.5-8 Money Transmitters

Chapter 2.6 -- Casinos and Gaming Establishments

  • 2.6-1 Currency Transaction and Suspicious Activity Reports
    • [1] Information on Deposits, Accounts, and Lines of Credit
    • [2] FinCEN Report
    • [3] Money Laundering Programs
    • [4] Correspondent Accounts
  • 2.6-2 Indian Gaming Establishments

Chapter 2.7 -- Other Financial Institutions

  • 2.7-1 Credit Card System Operators
  • 2.7-2 Loan and Finance Companies
  • 2.7-3 Dealers in Physical Assets and the Tourist Industry
    • [1] Car, Airplane, and Boat Dealers
    • [2] Dealers in Precious Metals, Stones, or Jewels
    • [3] Real Estate Closing and Settlement Agencies
    • [4] Tourist Industry
  • 2.7-4 Pawnbrokers
  • 2.7-5 Telegraph Companies

Chapter 2.8 -- Civil and Criminal Penalties

  • 2.8-1 General Effect of the USA PATRIOT Act on Penalties
  • 2.8-2 Investigations
  • 2.8-3 Injunctions
  • 2.8-4 Penalty and Forfeiture Authority Generally with Treasury
  • 2.8-5 Civil Penalties
    • [1] General Civil Penalty for Violating BSA
    • [2] Penalty for Violating Reporting on Importing or Exporting Monetary Instruments
    • [3] Penalty for Failure to File Reports on Foreign Currency Positions and Transactions
    • [4] Structuring
    • [5] Foreign Financial Agency Transaction Violations
    • [6] Negligence
    • [7] International Counter Money Laundering Violations
    • [8] Limitations on Civil Assessment
    • [9] Delegation of Civil Penalty Authority to Banking Agencies
  • 2.8-6 Criminal Penalties
  • 2.8-7 Forfeitures
  • 2.8-8 Rewards for Informants
  • 2.8-9 Penalties for Failure to File Form 8300
  • 2.8-10 Sentencing

Part III: Money Laundering and Currency Reporting Laws

Chapter 3.1 -- The Bank Secrecy Act and Currency Reporting Requirements

  • 3.1-1 Financial Institutions Under the BSA
  • 3.1-2 Recordkeeping Requirements
  • 3.1-3 Reporting Requirements
  • 3.1-4 Structuring Prohibited
  • 3.1-5 Suspicious Activity Reports
  • 3.1-6 Protection from Liability for Filing SARs, CRFs or Similar Reports

Chapter 3.2 -- The Money Laundering Control Act

  • 3.2-1 Section 1956
  • 3.2-2 Section 1957
  • 3.2-3 The Willful Blindness Standard

Chapter 3.3 -- Other Federal Legislation Affecting Money Laundering Responsibilities

  • 3.3-1 The Money Laundering and Financial Crimes Strategy Act of 1998
  • 3.3-2 The Money Laundering Act of 1998
  • 3.3-3 The Money Laundering Prevention Act of 1999
  • 3.3-4 The Foreign Money Laundering Deterrence and Anticorruption Act
  • 3.3-5 The Money Laundering Abatement Act of 1999
  • 3.3-6 Corporate Criminal Liability
  • 3.3-7 The Bank Death Penalty

Part IV: Regulatory Agencies and Supervisory and Enforcement Procedures

Chapter 4.1 -- Federal Regulatory Agencies

  • 4.1-1 Introduction
  • 4.1-2 Bureau of Export Administration
  • 4.1-3 Bureau for International Narcotics and Law Enforcement Affairs
  • 4.1-4 Commodity Futures Trading Commission
    • [1] National Futures Association
    • [2] Suspicious Activity Reporting
  • 4.1-5 Counterterrorism Office
  • 4.1-6 Department of Justice
    • [1] Criminal Division, Asset Forfeiture and Money Laundering Section
    • [2] Criminal Division, Fraud Section
  • 4.1-7 Department of State
    • [1] Prohibition of Assistance to Drug Traffickers
    • [2] Treaties
  • 4.1-8 Department of the Treasury
  • 4.1-9 Drug Enforcement Administration
  • 4.1-10 Farm Credit Administration
  • 4.1-11 Federal Bureau of Investigation
    • [1] Cooperation With The Department of State
    • [2] Financial Institutions and the FBI
  • 4.1-12 Federal Deposit Insurance Corporation
    • [1] Examination Policies
    • [2] Persons Convicted of Money Laundering
    • [3] Employment References
    • [4] Suspicious Activity Reports
    • [5] Retention of Records
  • 4.1-13 Federal Law Enforcement Training Center
    • 4.1-14 Federal Reserve Board [1] Bank Secrecy Act Examination Manual [2] Authority to Designate Law Enforcement Officers [3] Disaster Response Capabilities [4] Private Banking Regulation [5] Anti-Money Laundering Examination Work Program
  • 4.1-15 Federal Trade Commission
    • [1] Identity Theft
    • [2] Credit Bureaus
  • 4.1-16 Financial Crimes Enforcement Network
    • [1] Intelligence Gathering
    • [2] Law Enforcement Support
    • [3] International Affiliations
    • [4] Indicators of Terrorism
    • [5] Forms Designed and Used by FinCEN
  • 4.1-17 Financial Crime-Free Communities Support Program
  • 4.1-18 General Accounting Office
  • 4.1-19 High-Intensity Money Laundering and Related Financial Crimes Areas (HIFCAs) Working Group and Task Forces
  • 4.1-20 Homeland Security Advisory System
  • 4.1-21 Internal Revenue Service
    • [1] IRS and Terrorism
    • [2] IRS and Money Laundering
    • [3] Section 6050I
    • [4] Disclosure of Return Information
    • [5] BSA Forms
    • [6] IRS Records Systems With Money Laundering Information
  • 4.1-22 National Credit Union Administration
  • 4.1-23 Office of the Comptroller of the Currency
    • [1] Bank Secrecy Act Compliance
    • [2] OCC Enforcement
    • [3] Referring Violations to FinCEN
    • [4] OCC Administrative Action
  • 4.1-24 Office of Foreign Assets Control
    • [1] Designated Foreign Nationals
    • [2] Blocking Terrorist Assets
    • [3] Reports on Blocked Property
    • [4] Reports on Rejected Funds Transfers
    • [5] Reports on Arbitration and Other Proceedings
    • [6] 602 Letters
    • [7] OFAC Interactions With Banks
    • [8] Interdict Software
    • [9] Listed Countries
    • [10] OFAC and Securities Firms
    • [11] OFAC and the Insurance Industry
    • [12] Transaction Reports
  • 4.1-25 Office of Thrift Supervision
    • [1] Compliance Activities Handbook
    • [2]Reporting Requirements
    • [3] Wire Transfers, Payable Through Accounts, OFAC
    • [4] Examination
  • 4.1-25 Office of Victims of Crime
  • 4.1-27 Securities and Exchange Commission
    • [1] National Association of Securities Dealers
    • [2] New York Stock Exchange
    • [3] SEC Approval
  • 4.1-28 United States Postal Service
  • 4.1-29 United States Secret Service
    • [1] Financial Crimes Division
    • [2]Financial Institution Fraud Initiatives
    • [3] Task Forces

Chapter 4.2 -- State Agencies and State Regulation

  • 4.2-1 Overview
  • 4.2-2 State Insurance Regulators
    • [1] GAO Warns Report on Terrorism Insurance
    • [2] National Association of Insurance Commissioners
    • [3] State Insurance Regulators
  • 4.2-3 State Banking Regulators
    • [1] Defining “Bank”
    • [2] State Banking Regulators
  • 4.2-4 Other State Regulatory Agencies
  • 4.2-5 State Criminal Enforcement Units and Homeland Security State Contacts
Part V: International Agencies and Foreign Country Enforcement

Chapter 5.1 -- International Trend Towards Transparency

  • 5.1-1 Expansion of Anti-Money Laundering Laws
    • [1] Reporting Requirement
    • [2] Application of the Anti-Money Laundering Laws to Fiscal Offenses
    • [3] Tax Havens and Anti-Tax Haven Initiatives
    • [4] OECD Report on Harmful Tax Competition
    • [5] Financial Action Task Force (FATF)
  • 5.1-2 European Initiatives Towards Transparency
    • [1] Council of Europe
    • [2] European Union
    • 5.1-2 International Initiatives
    • [1] United Nations
    • [2] Financial Stability Forum
    • [3] Treaties and Informal Information Exchanges

Chapter 5.2 -- International Organizations and Agencies

  • 5.2-1 Introduction
  • 5.2-2 Asia Pacific Group on Money Laundering
  • 5.2-3 Basel Committee on Banking Supervision
    • [1] Basel Committee and Money Laundering
    • [2] Basel Committee and Counter-Terrorism Measures
  • 5.2-4 Caribbean Financial Action Task Force
  • 5.2-5 Council of Europe
  • 5.2-6 Egmont Group
  • 5.2-7 European Bank for Reconstruction and Development
  • 5.2-9 European Union
    • [1] EU and Money Laundering
    • [2] Criminal Investigation Cooperation Protocol
  • 5.2-10 Financial Action Task Force
    • [1] FATF Recommendations on Money Laundering
    • [2] U.S. and Compliance With 40 Recommendations
    • [3] Noncooperative Countries
    • [4] Terrorist Financing
    • [5] Money Laundering Typologies and Counter-Terrorism Measures
    • [6] Euro Banknotes
    • [7] Suspicious Transaction Reports Effective in Producing Prosecutions
  • 5.2-11 Financial Stability Forum
  • 5.2-12 Inter-American Development Bank (IADB)
  • 5.2-13 International Association of Insurance Supervisors
  • 5.2-14 International Monetary Fund
    • [1] IMF and Terrorism
    • [2] IMF and Money Laundering
  • 5.2-15 International Organization of Securities Commissioners
  • 5.2-16 Interpol (International Criminal Police Organization)
    • [1] Interpol and Money Laundering
    • [2] Resources Provided Member Organizations
  • 5.2-17 Organization of American States
  • 5.2-18 United Nations
    • [1] United Nations and Money Laundering
    • [2] Global Programme Against Money Laundering
    • [3] United Nations and Terrorism
  • 5.2-19 Wolfsberg Principles
  • 5.2-20 World Bank
  • 5.2-21 World Customs Organization

Chapter 5.3 -- Foreign Countries and Jurisdictions