Skip to content

Free Webinar: CDD/Beneficial Ownership — One Year Out
Thursday, May 11th - 1:00 PM CT

We're almost one year out from the new Customer Due Diligence (CDD) rule's deadline. Join us as we discuss all things CDD, including policies, procedures and training. We will help you prepare and discuss what steps your core, new account platform and AML software vendors are taking now to ensure you're compliant by May 2018. (Register here.)

Top Story Security Related

01/12/2017

OCC to fine and bar two FOREX traders

The OCC has issued notices of charges for prohibition and notices of assessment of civil money penalty against Richard Usher, former Head of G10 Spot Trading at JPMorgan Chase Bank, N.A., and Rohan Ramchandani, former Head of European Spot Trading at Citibank, N.A. The OCC also fined Usher and Ramchandani $5 million each for violating the Sherman Antitrust Act, engaging in unsafe or unsound practices, and breaching their fiduciary duties related to their conduct in the foreign exchange (FOREX) market. Concurrent with the OCC’s enforcement action, the Department of Justice also issued indictments against Usher and Ramchandani for violations of the Sherman Antitrust Act. In addition, the Federal Reserve announced enforcement actions against another trader in the Cartel chat room. Usher and Ramchandani may request a hearing challenging their respective notice of charges for prohibition and notice of assessment of civil money penalties. For additional details, see our Penalty page concerning the OCC's announcement.

01/11/2017

OFAC targets ISIL financing and support

Treasury’s Office of Foreign Assets Control (OFAC) has acted to disrupt the Islamic State of Iraq and the Levant’s (ISIL) global fundraising and support network by designating four individuals – Neil Christopher Prakash, Khaled Sharrouf, Bachrumsyah Mennor Usman, and Oman Rochman – as Specially Designated Global Terrorists (SDGTs) pursuant to Executive Order (E.O.) 13224, which targets terrorists and those providing support to terrorists or acts of terrorism. The individuals designated today include ISIL members based in Iraq, Syria, and Indonesia who are involved in ISIL’s propaganda, recruitment, and support networks in Southeast Asia and Australia. As a result of these actions, all property and interests in property of Prakash, Sharrouf, Usman, and Rochman subject to U.S. jurisdiction are blocked, and U.S. persons are generally prohibited from engaging in transactions with them.

OFAC also announced that the State Department has designated Jamaah Ansharut Daulah (JAD) and Alexanda Amon Kotey pursuant to E.O. 13224. JAD is a terrorist group based in Indonesia that was formed in 2015 and is composed of almost two dozen Indonesian extremist groups that pledged allegiance to ISIL leader Abu Bakr al-Baghdadi. Kotey, a British national, is one of four members of the ISIL execution cell known as “The Beatles.”

For links and further information, see our OFAC Update.

01/10/2017

OFAC designates seven for SDN List

OFAC has posted an SDN List Update adding five individuals under Magnitsky Sanctions and two under Counter Terrorism Sanctions. For additional information, see our OFAC Update.

01/09/2017

OFAC announces Cuba updates

Treasury's Office of Foreign Assets Control has updated its FAQs regarding Cuba to add five new FAQs regarding vessel transactions with Cuba. OFAC also updated its Specially Designated Nationals List to remove 28 CUBA-designated listings. For identification information on the individuals and entities removed, see OFAC's SDN List Update.

01/06/2017

OCC adds sales practices to financial institutions risks

The OCC has released its Semiannual Risk Perspective for Fall 2016. which reports on the strategic, credit, operational, and compliance risks facing national banks and federal savings associations. The report includes an added focus on sales oversight, in the aftermath of the Wells Fargo scandal. Other highlights of the report include:

  • Strategic risk remains high as banks consider business model changes and face challenges in growing revenue. Strategic planning remains important as banks adopt innovative products, services, and processes in response to the evolving demands for financial services and the entrance of new competitors, such as out-of-market banks and financial technology firms.
  • Banks continue to ease underwriting practices to boost loan volume and to respond to competition from bank and non-bank lenders. These actions are evident in commercial, commercial real estate and auto lending. The level of risk is increasing due to increased risk layering, rising loan policy exceptions, increasing loan-to-value ratios, and weaker covenant protection.
  • Operational risk remains a concern as banks face changing cybersecurity threats, increased reliance on third-party relationships, and the need for sound governance over sales practices.
  • Banks face challenges meeting the integrated mortgage disclosure requirements and amended Military Lending Act regulatory requirements, and managing Bank Secrecy Act risks.

Comptroller Curry offered remarks during the press call on the report.

01/06/2017

OFAC counter terrorism designations

Treasury's Office of Foreign Assets Control has added two individuals to its SDN List, with the SDGT designation.

01/02/2017

OFAC targets new Yazuka criminal syndicate

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced it has sanctioned the Kobe Yamaguchi-gumi, a syndicate of the Japanese Yakuza criminal network. Specifically, OFAC designated two entities and three individuals: the Kobe Yamaguchi-gumi, three of its key executive members – Kunio Inoue, Osamu Teraoka, and Takashi Ikeda – and its core clan, the Yamaken-gumi, pursuant to Executive Order (E.O.) 13581, which targets significant transnational criminal organizations (TCOs) and their supporters. As a result of these actions, all assets of those designated that are in the United States or in the control of U.S. persons are frozen, and U.S. persons are generally prohibited from engaging in transactions with them.

The Yakuza has relationships with criminal affiliates in Asia, Europe, and the Americas, where it uses front companies in legitimate industries, including construction, real estate, and finance, to launder money and hide illicit proceeds. In the United States, the Yakuza has been involved in drug trafficking and money laundering.

See OFAC's SDN List Update for identification information on the targeted individuals and entities.

12/30/2016

Executive Order adds 11 to SDN List

The Office of Foreign Assets Control announced yesterday that the president has issued an Executive Order (EO), "Taking Additional Steps To Address The National Emergency With Respect To Significant Malicious Cyber-Enabled Activities." The new EO amends EO 13694, “Blocking the Property of Certain Persons Engaging in Significant Malicious Cyber-Enabled Activities.” The amendments allow for the imposition of sanctions on individuals and entities determined to be responsible for tampering, altering, or causing the misappropriation of information with the purpose or effect of interfering with or undermining election processes or institutions. Five entities and four individuals are identified in the Annex of the amended Executive Order and have been added to OFAC’s list of Specially Designated Nationals and Blocked Persons (SDN List). OFAC designated an additional two individuals who also will be added to the SDN List. For details on the entities and individuals designated, see our OFAC Update.

12/29/2016

OFAC designates two Pakistanis as Global Terrorists

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has acted to disrupt Lashkar-e Tayyiba’s (LeT) fundraising and support networks by designating two of the group’s senior leaders as Specially Designated Global Terrorists (SDGTs). All property and interests in property of these two individuals subject to U.S. jurisdiction are now blocked, and U.S. persons are generally prohibited from engaging in transactions with them. See our OFAC Update for details.

12/28/2016

FinCEN seeks nominations for BSA Advisory Group

The Financial Crimes Enforcement Network (FinCEN) has published a notice in this morning's Federal Register seeking nominations from the public for membership on the FinCEN Bank Secrecy Act Advisory Group. New members will be selected for three-year membership terms. Nominations will be accepted through January 27, 2017.

Pages

Training View All

UDAAP Reality Check

We will explore what makes a practice unfair or deceptive by digging into what regulators and the courts have had to say.

Stop That Payment!

Bankers must understand the differences between the use of their systems' stop payment functionality and the actual right to stop payment

Penalties View All

Search Top Stories