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Newsbytes
FinCEN Lists Special Concern
Areas
The Financial Crimes Enforcement Network
provided guidance to banks and other financial institutions on actions
they should take for jurisdictions of special concern for anti-money
laundering and counter-terrorist financing. The advisory was based on
action taken by the Financial Action Task Force. FinCEN said Iran is
subject to a call by FATF for countermeasures and financial institutions
should continue to consult existing FinCEN and Treasury guidance on
engaging in financial transactions with Iran. FinCEN said financial
institutions should exercise enhanced due diligence for correspondent
accounts for foreign banks operating under a license issued by Angola,
Democratic People's Republic of Korea, Ecuador and Ethiopia. FinCEN said
general due diligence should apply to Pakistan, Turkmenistan, Sao Tome
and Principe. Read more
Washington Adds Regulatory
Tools
Washington Governor Chris Gregoire signed
into law two bills to give the Washington State Department of Financial
Institutions additional tools necessary to support the financial health
and stability of the state’s financial institutions. “The
banking bill addresses some shortcomings in Washington’s banking
statutes and enhances DFI’s enforcement powers to include bank
holding companies,” said DFI Director of the Division of Banks
Brad Williamson. The banking law gives DFI enforcement powers over bank
holding companies; provides enhanced enforcement authority for
institutions that are less than well capitalized; and brings DFI’s
enforcement authority into line with federal standards for prompt
corrective action for institutions that are less than well capitalized.
The other new law provides DFI with greater regulatory tools for state
credit unions, such as the authority to suspend credit union directors
for harmful activities. “We are pleased to have these additional
regulatory tools in our state’s regulatory toolbox,” said
DFI Director Scott Jarvis. Read more
FTC Halts Credit Repair
Scam
The Federal Trade Commission reached a
settlement with a credit repair service that deceived consumers into
paying thousands of dollars based on false promises that he could help
solve their credit and debt problems. FTC alleged that Sam Tarad Sky and
his companies illegally charged consumers up to $2,199 before performing
any services and failed to tell customers they could cancel the contract
within three business days. He also falsely told consumers who bought
debt relief services that they could satisfy their debt by paying much
less than the full amount owed, such as 30 cents on the dollar. The
settlement includes a judgment of almost $2.5 million against Sky,
Credit Restoration Brokers LLC, and Debt Negotiations Associates LLC.
However, the judgment will be suspended because of inability to
pay. Read more
FinCEN Issue Laundering
Advisory
The Financial Crimes Enforcement Network
advised banks and other financial institutions operating in the United
States of the risks associated with 20 jurisdictions identified by the
Financial Action Task Force as having deficiencies in their anti-money
laundering and counter-terrorist financing regimes. The jurisdictions
are Antigua and Barbuda, Azerbaijan, Bolivia, Greece, Indonesia, Kenya,
Morocco, Myanmar, Nepal, Nigeria, Paraguay, Qatar, Sri Lanka, Sudan,
Syria, Trinidad and Tobago, Thailand, Turkey, Ukraine, and Yemen. For
these jurisdictions, FATF said there has been a high-level political
commitment to address the specific anti-money laundering and
counter-terrorist financing deficiencies identified. FATF explained its
specific concerns regarding each of the jurisdictions and will continue
to monitor the jurisdiction's adoption of an action plan for addressing
problems. FinCEN said banks should use their general due diligence
measures for these jurisdictions. Read more
IRS Seeks Issues to
Resolve
The Internal Revenue Service is seeking tax issues that are
controversial, disputed or unnecessarily burdensome to be resolved
through its Industry Issue Resolution process. IRS encouraged
submissions from business taxpayers, associations and other interested
parties by March 31. The objective of the program is to resolve business
tax issues common to a significant numbers of taxpayers through new and
improved guidance. In past years, issues have been submitted by
associations and others representing both small and large business
taxpayers, resulting in tax guidance that has affected thousands of
taxpayer, IRS said. If an issue is selected for the program, a
multi-functional team is assembled and writes new guidance. While tax
issues may be submitted at any time, issues submitted by March 31 will
be included in the next semi-annual selection process in April. Read more
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