Jose James Lapadula, LL.M., CAMS, CCEP

Financial Crimes Enforcement Network, US Treasury published a notice for FIs to operationalize threats related to timeshare #fraud and Mexico-based TCOs like CJNG. This was issued jointly with #OFAC and the #FBI. I certainly didn't have a 14 page document re: timeshare fraud and Mexican drug cartels on my 2024 BINGO card, but here we are. See the third point for 6 things you can do right now to act on this Notice. Here are the highlights, more comments in the attached pdf - 1) This notice will primarily be impactful if all #banks, credit unions, #trust companies, investors, brokers, and fiduciaries provide customer education. Pgs. 3-5 offer great keywords to use in your outreach. 2) After customer education, the typologies are pretty limited in operationalability (not a word, I know). This is where I will say again - if your #AML system does not allow you to operationalize advisories and notices from FinCEN, get a new one! 3) It is time to take a temp check of your transactional threat landscape as it relates to this notice - look at the following: a) age of the customer (elderly) and repetitive wires to Mexico; b) wires to Mexico with the terms "fees" and "taxes" in description; c) wires to Mexico going to the same/similar beneficiary but from different 60+ aged customers; d) search beneficiaries of wires to Mexico with the terms "travel", "real estate", "closing", "title", "realty", and "broker" (English & Spanish); e) wires from trust or #retirement accounts to Mexico; and f) internal transfers from trust/retirement accounts to checking then wires to Mexico. 4) Once that exercise is done, you will know how much exposure you have. 5) If there are any positive matches to # 3 above, do additional research on the businesses to see if they are newly formed. 6) Remember to use 314b info sharing with other US FIs! 7) If your #communitybank or CU is based in a large retirement community, you have a duty to at least brief your customers on this risk. Some things I'm confused by - pg. 9 states "U.S. financial institutions to continue to use, and potentially expand, their existing processes to collect and share information with foreign financial institutions in furtherance of investigations that involve cross-border activity"... what?? The reference is a footnote from Gacki's speech in May. But I am not aware of any legal mechanism by which US FIs (not the Tier1s) can share with info with a non-US FI? Please someone tell me I'm wrong. #ifollowdirtymoney

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‼️ Beneficial Ownership Information Reporting REQUIREMENT: Starting in 2024, corporations, limited liability companies (LLCs), limited partnerships, and other entities that filed corporate formation papers with a state’s Secretary of State’s office or similar government agency must now also file a mandatory report with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Learn more about these requirements and how Gift CPAs can assist by reading our blog.

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📣 New Member Alert 📣 The Financial Crimes Enforcement Network (FinCEN, part of the Treasury Department)'s Beneficial Ownership Information (BOI) Reporting Rule is now in effect. The deadline to file is January 1, 2025. Members of JVC can check their email inbox or log in to the Dashboard (https://lnkd.in/eUTDU8qr) to read JVC's guidance on this important filing requirement for most businesses registered to do business in the US, including domestic and foreign LLCs and corporations. Have questions? Contact JVC today! [email protected] #jewelryindustry #legal

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Beneficial Ownership Reporting: 🔍 Starting January 1, 2024, businesses across the U.S. need to comply with new Beneficial Ownership Reporting requirements under the Corporate Transparency Act (CTA). 📜 Who Needs to Report? Corporations, LLCs, and similar entities must file details about their beneficial owners with FinCEN (Financial Crimes Enforcement Network). 🚨 Avoid Penalties Non-compliance can lead to hefty fines and legal consequences. 💼 Need Help? At Crescent Tax Filing, we simplify compliance for your business. Let us guide you through the process! 📩 DM us today! #BeneficialOwnership #CorporateTransparency #TaxCompliance #FinCEN #CrescentTaxFiling #BusinessSolutions

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Sarah Beth Felix asks the same question I have ... On July 16, 2024 FinCEN, OFAC, and the FBI issued a joint notice titled “Timeshare Fraud Associated with Mexican-based Transnational Criminal Organizations” - https://lnkd.in/ePaZK3Ga The Notice included this: “Given the transnational nature of illicit activity related to timeshare fraud in Mexico, FinCEN also encourages U.S. financial institutions to continue to use, and potentially expand, their existing processes to collect and share information with foreign financial institutions in furtherance of investigations that involve cross-border activity.” That excerpt included a citation, Footnote 40: See, e.g., FinCEN, “Prepared Remarks of FinCEN Director Andrea Gacki During the SIFMA AML Conference” (May 6, 2024) at https://lnkd.in/gYAk7EYk I am not aware of any authority – law or regulation – that allows US-based and regulated financial institutions to share information with foreign financial institutions in furtherance of investigations that involve cross-border activity. And I’ve read Director Gacki’s May 6, 2024 speech: there is nothing in it that refers to US-based and regulated financial institutions being allowed to share information with foreign financial institutions in furtherance of investigations that involve cross-border activity.

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🚨 U.S. Officials Alert: Timeshare Fraud Linked to Cartels 🚨 In a crucial update, U.S. officials and federal investigators are urging banks and financial institutions to enhance their vigilance against cartel-perpetrated #FraudSchemes targeting U.S. timeshare property owners in Mexico. Financial Crimes Enforcement Network, US Treasury (#FinCEN), along with the Office of Foreign Assets Control (#OFAC) and the Federal Bureau of Investigation (FBI) issued a notice highlighting the alarming rise of these schemes. The notice outlines 10 transactional red flags associated various drug-trafficking organizations, which have reportedly netted hundreds of millions of dollars from these #Frauds. 🛡️ Action Required: Financial institutions must start screening transactions meticulously to detect and prevent such #Fraudulent schemes. Awareness and proactive measures are crucial to safeguarding against these sophisticated #FraudOperations. See the link below for further details on red flags to look out for 👇 Stay informed, stay vigilant. 🤝 #FinancialCrimes #AntiFraud #BankingSecurity #FinCEN #OFAC #FBI #TimeshareFraud #CJNG #BSA #AML #ACAMS #CAMS #FinancialCrimesDetection #FinancialCrimesPrevention #Fraud Prevention #FraudDetection #ACFE #CFE https://lnkd.in/dfGihH62

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**ACTION REQUIRED!** The U.S. Government Financial Crimes Enforcement Network (FinCEN) has a new beneficial ownership information reporting requirement.   If you do business in the U.S. through an entity, then you have until January 1, 2025 (or, if your company was formed after January 1, 2024, then you have just 90 days after formation) to file a beneficial ownership report (BOI) with FinCEN. It is simply a form that tells them who owns or controls the business—and therefore who receives the income from the business. It’s designed to catch money-laundering and other financial crimes.   Who is required to file? All for-profit entities (e.g., an LLC, S-corporation, LLP, etc.) must file a BOI with FinCEN. If you are a 501(c)(3) non-profit, or if you do business as a sole proprietor, you are not required to file a BOI.   You can file the report for free directly through the FINCEN government portal, which you can find (along with information about the filing requirement) here: https://fincen.gov/boi. It only takes a few minutes. You will need the SSN and a copy of a government ID (e.g., a passport or a driver’s license) for all beneficial owners.   Who is a beneficial owner? A beneficial owner is any individual who, directly or indirectly either: (1) exercises substantial control over the company (the CEO, for example); or (2) owns or controls at least 25% of the company.   There are no annual reporting requirements after your initial BOI filing—but you do need to report any changes (e.g., if you change your office or residential address, or if your company changes hands) within 30 days after the change.   Please don’t hesitate to reach out if you have questions, or if there’s anything we can do to assist!

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💡 What Bank of America’s Case Teaches Us About AML Compliance 💡 The OCC’s recent enforcement action against Bank of America (https://lnkd.in/ei7gT9Am) is a stark reminder of the critical importance of strong AML and sanctions compliance programmes. Deficiencies in suspicious activity reporting, customer due diligence, and compliance programme governance can lead to serious regulatory action—and reputational harm. Over my career, I’ve seen how even large institutions can overlook such gaps in internal controls, governance, testing, and training. Traditional compliance audits or narrowly focused AML framework reviews can sometimes also fail to uncover the issues. These issues often hide in plain sight until regulators highlight them. But this doesn’t have to be the case. That's why my colleagues and I have developed the FinCrime HealthCheck. As a comprehensive assessment that goes beyond traditional compliance audits and maturity assessments, the FinCrime HealthCheck can uncover vulnerabilities before they escalate into enforcement actions. It evaluates the presence of policies and their effectiveness across functions, teams, and geographies. For instance: 🕵‍♀️ Are customer due diligence processes consistently defined, applied, monitored, and optimised? 🛗 Do colleagues know how and when to escalate issues, and can they do so promptly? 🫂 Does the company's compliance culture allow staff to raise concerns safely? 🏋 Are training and testing robust enough to address emerging risks? This proactive approach helps identify weaknesses early, providing a clear roadmap for improvement. It also ensures that firms remain aligned with regulatory expectations while protecting their reputation. The takeaway for AML professionals is clear: Regular, thorough reviews of compliance frameworks are essential to stay ahead. Let’s learn from these lessons and build stronger, more resilient compliance programmes. What steps are you taking to assess and strengthen your AML controls? #AML #Compliance #RiskManagement #FinancialCrime #Governance #ContinuousImprovement

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Right now, Axiom Bank's AML professionals are stepping up. After the OCC flagged compliance deficiencies, they are leading a full revamp. They have 30 days to deliver a new plan for AML oversight. Within 60 days, they will update policies to counter money laundering risks, especially in fintech partnerships. No one says AML adherence is easy, but these professionals thrive under pressure. Now it's time to support them.. ..reach out to colleagues, roll up your sleeves, and guide them through this next phase. Let's go. The AML community is stronger together. https://lnkd.in/gFZXtHGR

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Challenges in Puerto Rico, Finfluencers, Axiom Bank, and Insights from the FATF President. Join us for a thought-provoking discussion with John Byne and Elliot Berman on This Week in AML🎙️ #AMLRightSource #TWIA #AML #FinancialCrimePrevention #FATF #FCA #OCC

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Earlier this year, Congress implemented new beneficial ownership information (#BOI) reporting rules that require both domestic and foreign reporting companies to file electronic reports to Financial Crimes Enforcement Network, US Treasury. As a reminder, filing deadlines are subject to your entity’s date of establishment: ·        Established prior to Jan. 1, 2024: Initial reports are due on Dec. 31, 2024. ·        Established between Dec. 31, 2023, and Dec. 31, 2024: Initial reports are due 90 days after entity formation. ·        Established after Dec. 31, 2024: Initial reports are due 30 days after entity formation. Learn if your organization is impacted and how to take action by visiting https://www.fincen.gov/boi. #BOIReports #ReportingCompanies #CorporateTransparencyAct #TaxLaw

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🚨 FinCEN Hosting Webinar Today: How to Comply with Beneficial Ownership Reporting Requirements 🚨 U.S. Department of the Treasury's #FinCEN is offering a not-to-be-missed webinar in just four hours (at 2PM EST) on how businesses can adhere to the new #BeneficialOwnership reporting requirements under the #CorporateTransparencyAct. 🔍 What You Will Learn: ✔️ The essentials of #BeneficialOwnershipReporting. ✔️ Detailed steps on how to comply with the law. ✔️ Insights directly from #FinCEN representatives. Whether you're a startup founder, a compliance officer, or simply involved in a business operating in the U.S., this session will provide you with the necessary tools to ensure your company meets all new legal requirements. 🔗 Don't miss out on this opportunity to gain valuable insights and stay ahead of compliance issues. Join us at #FinCEN’s YouTube Channel! 👉 Watch Live Here: https://lnkd.in/duxHHWT3 #AML #BSA #ACAMS #CAMS #FinancialCrimes #FinancialCrimesPrevention #CTA #BeneficialOwnershipRule #FinCEN #BeneficialOwnership

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The proposed rule would formalize the requirement for a risk assessment, incorporate the U.S. Treasury Department’s AML/CFT priorities and emphasize the risk-based nature of the AML/CFT program requirement. Read more: https://lnkd.in/gFCHe6bJ #AML #FinCen #CFT #FinancialInstitutions

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Beneficial Ownership Information Reporting Requirements Now in Effect: Due January 13, 2025. The Financial Crimes Enforcement Network (FinCEN) extended the deadline for most reporting companies to file beneficial ownership information (BOI) reports to January 13, 2025, following a Monday court ruling that reinstated the reporting requirement. This change came after the Fifth Circuit Court of Appeals granted a Department of Justice (DOJ) motion on December 23, 2024, to lift an injunction imposed by a district court in Texas Top Cop Shop, Inc. v. Garland. The DOJ had appealed that ruling, and the Fifth Circuit’s order reactivated the requirements under the Corporate Transparency Act (CTA). Although the case remains under litigation, the Fifth Circuit noted in its order that “the government has made a strong showing that it is likely to succeed on the merits in defending CTA’s constitutionality.” Read Jacqueline Yu's full article: https://lnkd.in/gGqBNVbK

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📙 The Wolfsberg Group releases new guidance on effective monitoring for suspicious activity 🔝 The Wolfsberg Group is a leading coalition of financial institutions focusing on regulatory compliance issues, has published its latest statement on “Effective Monitoring for Suspicious Activity” (MSA). 💱💰 This document outlines advanced strategies to refine anti-money laundering (AML) and counter-terrorist financing (CTF) efforts across the sector, moving beyond traditional transaction monitoring towards a comprehensive, risk-based approach. 📖 Read the news by following the link in the comments section below ⬇️ #thewolfsberggroup #AML #CTF #fraudprevention

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