FinCEN Penalizes Florida Credit Union for Failures in Managing High-Risk International Financial Activity

International Financial Law Prof Blog

The Financial Crimes Enforcement Network (FinCEN) yesterday assessed a $300,000 civil money penalty against North Dade Community Development Federal Credit Union in Miami Gardens, Florida for significant Bank Secrecy Act (BSA) violations. North Dade’s anti-money laundering (AML) failures exposed the United States financial system to significant opportunities for money laundering and terrorist financing from known high-risk jurisdictions. ...

Moscow Finance University under the Government of the Russian Federation

FinCEN Statement on Providing Banking Services to Money Services Businesses

International Financial Law Prof Blog

Money services businesses (“MSBs”), including money transmitters important to the global flow of remittances, are losing access to banking services, which may in part be a result of concerns about regulatory scrutiny, the perceived risks presented by money services business accounts, and the costs and burdens associated with maintaining such accounts.

MSBs play an important role in a transparent financial system, particularly because they often provide financial services to people less likely to use traditional banking services and because of their prominent role in providing remittance services. FinCEN believes it is important to reiterate the fact that banking organizations can serve the MSB industry while meeting their Bank Secrecy Act obligations.

read the full post at International Financial Law Prof Blog

Washington Political Consultant Pleads Guilty in Fraud and Corruption Scheme

International Financial Law Prof Blog

According to admissions in his plea agreement, Lindenfeld agreed to route an illegal $1 million political contribution for “Elected Official A” during a 2007 campaign for elected office. The contribution was in the form of a loan routed through Lindenfeld’s political consulting firm, LSG Strategic Services Corporation (LSG).  W

hen the campaign donor attempted to collect on the outstanding balance of the $1 million loan, however, Lindenfeld and his co-conspirators, at the direction of Elected Official A, engaged in a complicated series of transactions using federal grant money and monies from Sallie Mae’s charitable arm illegally to repay the loan.  

These transactions were routed through several entities, including LSG, and were all falsely labeled as payments for services that were never actually rendered.   

read on at International Financial Law Prof Blog

Department of Justice Seeks Recovery of Approximately $100,000 in Bribes Paid to Former Chad Ambassador

International Financial Law Prof Blog

The Department of Justice has filed a civil forfeiture complaint seeking the forfeiture of $106,488.31 in allegedly laundered funds traceable to a $2 million bribe payment made by a Canadian energy company to Chad’s former Ambassador to the United States and Canada and his wife.

Bechir Complaint  Bechir Attachment A   Bechir Attachment B

read on at International Financial Law Prof Blog

Are Deferred Annuities Becoming the Default 401(k) Investment?

The IRS has cleared the path for 401(k) sponsors who wish to expand clients’ use of longevity insurance within 401(k)s by allowing target date funds (TDFs) to include deferred annuities, even for those plan participants who do not actively manage their investment allocations.

read about The New IRS Guidance

Notification of More Favorable IGA FATCA Terms Published November 5th

International Financial Law Prof Blog

Article 7 of the Model 1 IGA provides that the United States shall notify its partner jurisdictions of any more favorable terms under Article 4 or Annex I of the IGA afforded to another partner jurisdiction. 

Based on the BVI IGA, the United States considers the language in italics to be “more favorable
terms” in Annex I, except in those cases where the Agreement already includes such language:

1. Paragraph G of Section VI of Annex I:

G. Alternative Procedures for New Accounts Opened Prior to Entry Into Force of 
this Agreement.

2. Paragraph H of Section VI of Annex I:

H. Alternative Procedures for New Entity Accounts Opened on or after July 1, 2014, and before January 1, 2015.

The notice was sent to the following jurisdictions: ... International Financial Law Prof Blog

FATCA Update - Forms 1099

International Financial Law Prof Blog



FATCA filing requirements of certain foreign financial institutions (FFIs). If you are required to report an account that is a U.S. account under chapter 4 of the Code (chapter 4), you may be eligible to elect to report the account on Form(s) 1099 instead of on Form 8966, “FATCA Report.”

read the update at International Financial Law Prof Blog

Analysis of November's FATCA GIIN List

International Financial Law Prof Blog

Last month, the GIIN list included 104,344, a jump from the September list of 5,000 from 99,861 FFIs (mind you that a substantial number of these registrations are not unique, but instead represent affiliates within EAGs) - see our previous analysis links below.  It is now November.  The UK self-imposed (yet ignored) deadline to GIIN register passed October 25th.  So what happened?  

As of October 27, 2014 GIIN registrations reached 116,104 FFIs!  But - uh oh - not looking too good actually.  A jump of 12,000 is as good as the past three months combined, so that's indicative that FATCA GIIN registrations may be moving toward an upswing.  To reach at least a 50% level of FATCA compliance by year's end, the GIIN list must double in the next 25 days.  Likely?  Not based on the lack of support of many revenue authorities around the world (e.g. Turkey, India, China) that want to work out certain aspects and implementing regulations for the IGAs in place.   

So why did the registrations jump 12,000? read on at International Financial Law Prof Blog