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Questions & Answers
Question: I understand we have to submit suspicious activity reports (SARs) to FinCEN, but who are they and what is their role in the Bank Secrecy Act ?
Answer: The Financial Crimes Enforcement Network (FinCEN) was established in April 1990 under the Treasury Department. Its original mission was to provide a government-wide, multi-source intelligence and analytical network to support the detection, investigation, and prosecution of domestic and international money laundering and other financial crimes. In May 1994, its mission was broadened to include regulatory responsibilities.
Today, FinCEN is one of Treasury’s primary agencies to oversee and implement policies to prevent and detect money laundering. This is accomplished in two ways. First, FinCEN uses counter-money laundering laws (such as the Bank Secrecy Act--"BSA") to require reporting and recordkeeping by banks and other financial institutions. This recordkeeping preserves a financial trail for investigators to follow as they track criminals and their assets. The BSA also requires reporting suspicious currency transactions which could trigger investigations. FinCEN establishes these policies and regulations to deter and detect money laundering in partnership with the financial community.
Second, FinCEN provides intelligence and analytical support to law enforcement. FinCEN's work is concentrated on combining information reported under the BSA with other government and public information. This information is then disclosed to FinCEN's customers in the law enforcement community in the form of intelligence reports. These reports help them build investigations and plan new strategies to combat money laundering.
Ask the Associated Risk Group Team how they can enhance your BSA/AML Risk Assessment today. - Send an e-mail to . News
Nine-Year Sentence Given to Insurance Scam Leader
An auto body shop owner has been found guilty of operating a million-dollar automobile insurance fraud, bank fraud and money laundering scheme. Between January 2001 and June 2005, John V. Cotona of Perfect Touch Auto Body conspired and agreed with others to submit false automobile property damage claims to various insurance companies.
According to a press release from the U.S. Attorney's Office, Cotona admitted that the false insurance claims included information that the subject vehicles suffered damaged resulting from fictitious accidents. Cotona further admitted that, in addition to making claims for purported repairs, many of the cars involved in the fictitious accidents were actually owned by him and titled in the names of other people or various shell companies that he controlled.
Cotona also admitted that he agreed to launder the proceeds of the scheme through bank accounts of the shell companies, which he controlled at Commerce Bank.
In addition, Cotona admitted that from May 2005 through June 2005, he defrauded Commerce Bank of approximately $154,950 by depositing bad checks into accounts he controlled and then withdrawing the proceeds of the checks before the checks were returned for insufficient funds.
Source: http://www.justice.gov/usao/nj/press/files/pdffiles/
coto0119rel.pdf
Holy Land Foundation Fund Raiser Arrested - High Risk Charity
Akram Musa Abdallah, aka Abu Saiaf, 54, of Mesa, Ariz. was arrested by the Federal Bureau of Investigation based on an indictment which charges him with making false statements related to his involvement in fund-raising activities for the Holy Land Foundation for Relief & Development.
The indictment alleges that Abdallah knowingly and willfully made a false material statement when he represented to FBI agents that he was not involved in fund raising activities for the Holy Land Foundation. The indictment alleges that he was involved in fund-raising activities on their behalf in the Phoenix metropolitan area between 1994 and 1997. The Holy Land Foundation is an organization alleged to have provided financial support for Hamas, a designated Foreign Terrorist Organization.
Source: http://phoenix.fbi.gov/dojpressrel/2008/ph082108.htm
Money Remitter Pleads Guilty to Money Laundering and Concealing Terrorist Financing
The culmination of a multi-jurisdiction sting has lead to the guilty plead of a Pakistani who used the traditional hawla system to funnel money through several countries while knowing the cash was from illicit activities. Saifullah Anjum Ranjha, 45, operated a Washington-based company called Hamza and was a permanent resident of the US for over 10 years. Mr. Ranjha was also guilty of running a money service business without properly registering.
Source: http://baltimore.fbi.gov/dojpressrel/pressrel08/
ba082208.htm
Revised CTR Form for Casinos and Card Clubs Effective September 1, 2008
Effective September 1, 2008, casinos and card clubs are required to file Currency Transaction Reports using a revised form. FinCEN announced in April that it was revising FinCEN Form 103, the Currency Transaction Report for Casinos and Card Clubs (CTR-C). This revision incorporates regulatory changes and accommodates database-programming requirements.
Additionally, FinCEN has issued revised specifications for casinos and card clubs who wish to electronically file (E-File) the revised form.
Source: http://www.fincen.gov/whatsnew/html/20080822b.html
Revised RMSB Form 107 for Money Services Business Registration is Effective September 1, 2008
Effective September 1, 2008, a Money Services Business is required to use the revised FinCEN Form 107, Registration of Money Services Business (RMSB) to register its business. FinCEN announced in April 2008 that it was revising the RMSB Form 107. This change is required to incorporate the five (5) critical fields that are now mandatory for a registration to be accepted (Legal name, Address, City, State, and EIN (entity) or SSN/ITIN (individual)). All previous versions of Form 107 will not be accepted after December 31, 2008.
Please note the "will not be accepted after" dates on the revised RMSB Form 107 are different on the WebCBRS facsimile of the form (2/29/09) and on the form posted on the FinCEN website (12/31/08). The date of December 31, 2008 was chosen for "after which previous editions will not be accepted" because it coincides with the December 31st deadline for registration.
Source: http://www.fincen.gov/news_room/
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