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Financial Crimes Enforcement Network

FinCEN fines well-known, global money service transmitter for BSA AML violations

Repeated findings of willful non-compliance with the Bank Secrecy Act (BSA) anti-money laundering (AML) requirements for money service transmitters resulted in FinCEN assessing a civil money penalty of $184 million dollars against a popular, international money service transmitter business. Required AML controls, new agent due diligence, transaction monitoring and delayed suspicious activity reporting (SAR) were cited as deficient and the result of a weak compliance culture. FinCEN was joined in this enforcement action by the Department of Justice (DOJ) and the Federal Trade Commission (FTC).


Other Regulatory Bodies

FINRA Issues Updated Instructions for Broker-Dealer Annual Reports

Broker-Dealer firms are required to file their annual report and supplemental reports with the Financial Industry Regulatory Authority (FINRA), in accordance with the Security and Exchange Commission (SEC) Act, Rule 17a-5. These filings must be electronic.


Consumer Financial Protection Bureau (CFPB)

Prepaid Card Company and Its Payment Processor Found Liable for Technical Glitches

The Consumer Financial Protection Bureau (CFPB) determined prepaid card company and its payment processor, were at fault for a series of avoidable computer disruptions, which harmed tens of thousands of prepaid customers. Complaints to the CFPB about the October 2015 prepaid card breakdown included blocked fund access, faulty deposit and payment transactions, unavailable customer support, and incorrect account information. As result, the prepaid card company and its payment processor must pay $10 million in restitution to its customers and $3 million in civil money penalties.


Executive Order Focuses on Financial Services Regulation

On February 3, 2017, the President issued an executive order enumerating seven guiding principles for regulating the financial services industry: Core Principles for Regulating the United States Financial System. The executive order aims to better protect consumers, mitigate risk, and spur economic growth. Adhering to these seven principles provides a policy framework for evaluating existing regulations, assessing the impact of current and proposed regulation, and ensure a more cost-effective and efficient system of financial regulations.


Ballard Spahr Partners Launch New Money Laundering Blog

Two partners of Ballard Spahr law firm announced a publication joint venture: the launch of a new weekly money laundering blog, Money Laundering Watch. This dedicated blog aims to inform its readers about domestic and international money laundering policy, compliance, regulations, cases, and enforcement actions. Federal and state money laundering developments will also be addressed. The founders’ collective expertise in government, industry, and private practice, will provide readers with the context for analyzing, interpreting and applying this information toward their anti-money laundering efforts.