An announcement by the Internal Revenue Service last week that it will no longer try to seize and forfeit money from those who merely evade government-mandated paperwork when making large cash deposits has ignited a debate about the value of bank efforts to document such acts.
Financial Regulatory Forum
The United States effort to begin reining in the risks from shadow banking was recognized by the International Monetary Fund in a recent report as being ahead of the curve, and parts of it could serve as a model for other countries.
”If liberty means anything at all, it means the right to tell people what they do not want to hear,” George Orwell told readers in Animal Farm, his parable of totalitarianism and centralized control.
Federal agents hope documents and electronic data seized during raids on the Los Angeles fashion district last month and cash-transaction reports that businesses in the zone are now required to file will help clarify how Mexico’s drug cartels are using international trade to launder money, law enforcement sources say.
Former MoneyGram compliance chief facing potential record fine regarded as anti-laundering innovator
In the late 1990s former MoneyGram International Inc executive Thomas Haider was a compliance leader pushing the money transfer industry to do more to fight financial crime, convincing his and other firms to voluntarily police transactions for illicit activity and report to authorities, a former official with the Treasury Department’s anti-money laundering bureau says.
A process of “derisking” is underway by financial firms exiting sectors that represent compliance landmines, bankers said on Tuesday, but a top U.S. sanctions enforcer said that is sometimes just the right move.
By Henry Engler, Compliance Complete
NEW YORK, Oct. 1, 2014 (Thomson Reuters Accelus) – New rules governing swap dealers and the requirements for dedicated chief compliance officers are now more than a year in effect, and a new review of the so-called “annual reports” that dealers must submit to the Commodities Futures Trading Commission suggest there are still lingering questions over the roles and responsibilities of CCOs, particularly for non-U.S. dealers.
By Bora Yagiz, Compliance Complete
NEW YORK, Sept. 30, 2014 (Thomson Reuters Accelus) – Large banks may have to make small modifications to their asset mix, raise more equity and ramp up their operational systems in response to federal agencies’finalized rule on liquidity coverage ratio (LCR) . It is the first quantitative U.S. regulatory standard for defining liquidity and establishing a minimum level of liquidity, and is part of the enhanced prudential standard rules of the Dodd-Frank Act.
By Julie DiMauro, Compliance Complete
NEW YORK, Sept. 19, 2014 (Thomson Reuters Accelus) – In a sanction that can serve as a wake-up to the financial industry, Verizon Communications last week agreed to pay $7.4 million to end an investigation that found it failed to tell two million new customers about their privacy rights before using their information for marketing purposes, the Federal Communications Commission said.
By Brett Wolf, Compliance Complete
LOS ANGELES/NEW YORK, Sept. 17, 2014 (Thomson Reuters Accelus) – Roughly 1,000 law enforcement agents poured into the Fashion District in downtown Los Angeles Wednesday morning to raid shops and arrest nine people suspected of using businesses to launder large sums of cash generated by drug trafficking and other illicit activity, the U.S. Justice Department said. The money laundering problem in the area has prompted authorities to request a formal designation subjecting it to greater enforcement scrutiny. (more…)