Anti-Money Laundering III
Overview:The USA Patriot Act has paved the way for new and expanded economic sanctions on financial institutions. Among these sanctions include the enactment of the Anti-Money Laundering Law. Entities are now being subjected to strict global compliance requirements. Rules affecting the filing of financial reports and incorporation of policies to assure compliance with the Bank Secrecy Act have been imposed. Financial institutions operating in the United States and domestic entities that are planning on exploring investment opportunities abroad should fully understand the coverage of these sanctions to avoid possible conflict with the government and missed business opportunities.
The Knowledge Congress is assembling a panel of experts in the field of banking and finance, and key regulators from the government to discuss the factual issues that are relevant to this topic. The speakers will discuss their views and findings, which will include "Best Practices" in a two-hour teleconference.
<strong id="ep-name-of-speaker">Shaswat K. Das, Senior Sanctions Advisor - Securities Office of Foreign Assets Control,</strong>
<em id="ep-speaker-firm">Department of the Treasury </em>
- OFAC/U.S. economic sanctions generally, e.g., jurisdiction, recent amendments to IEEPA
- The prohibition against “facilitation” under IEEPA, including impact on foreign subsidiary/affiliate
- Importance of OFAC Compliance Program, including focus on entity’s risk profile (size, business
volume, customer base, and product lines)
- Introducing and Clearing Firm Responsibilities
<strong id="ep-name-of-speaker">Randall Pickett, Associate Director of Product Management and Development for Compliance Solutions,</strong>
<em id="ep-speaker-firm">Accuity </em>
- Selecting Sanctions Lists: From OFAC to the Central Bank of Seychelles
• There are close to 100 different Sanctions lists, High Risk Entities lists and PEP lists available
• How does an AML officer select the lists appropriate to their institution?
» Jurisdictional factors
» Reputational risks
» Cost to benefit comparisons
• Working from a plan – Organizational values
• Setting priorities – Making best use of your resources
• Evaluating selection criteria – Industry Best Practices
• A sampling of the lists the largest financial institutions* are screening against
<strong id="ep-name-of-speaker">Clay Stevenson, Vice President, Office of General Counsel Global Monetary & Financial Control Group</strong>
<em id="ep-speaker-firm">Merrill Lynch & Co., Inc. </em>
- Trends in Economic Sanctions
a) continued movement from broad-based/jurisdictional to targeted/conduct-based
b) addition of targeted/conduct-based features to existing broad-based country programs
- OFAC's 2/14/2008 guidance on entities owned by persons whose property and interests in property
a) what does it mean
b) potential implications for client on-boarding / due diligence
- Revised IEEPA penalties
<strong id="ep-name-of-speaker">Sarah D. Green, Branch Chief, Office of Compliance Inspections and Examinations,</strong>
<em id="ep-speaker-firm">U.S. Securities and Exchange Commission </em>
- Structure of OCIE AML Exam Program
- Common Exam Findings
- Exam Priorities
- Enterprise-Wide AML Risk Management
<strong id="ep-name-of-speaker">Barbara Keller, Assistant Director, Financial Markets and Community Investment,</strong>
<em id="ep-speaker-firm">U.S. Government Accountability Office (U.S. GAO)</em>
- GAO Findings in CTRs Study
• Bank Secrecy Act: Increased Use of Exemption Provisions Could Reduce Currency
Transaction Reporting While Maintaining Usefulness to Law Enforcement
- Recommendations to the Treasury Department for FinCEN
• Related to Compliance with Regulations
• Providing More Information and Guidance
- On-going Work on SARs
• Objectives of Ongoing GAO Work on Suspicious Activity Reporting
- On-going Work on BSA Compliance and Enforcement
• What are FinCEN and the other agencies’ BSA specific responsibilities?
• How are the other agencies implementing their BSA responsibilities including the BSA/AML
• How is FinCEN carrying out its BSA compliance and enforcement responsibilities?
<strong id="ep-name-of-speaker">John F. Walsh, Anti-Money Laundering Consulting SME,</strong>
- Effective AML implementation across the enterprise
• Operational and technology aspects
• Leveraging enterprise wide data for better AML analytics and beyond
• Information sharing - data privacy issues
• Improving efficiency by streamlining AML processes throughout the organization
- Balancing corporate policy and local regulations
• Challenges and solutions
• Centralized vs. de-centralized implementation
<strong id="ep-name-of-speaker">Jamie L. Boucher, Partner,</strong>
<em id="ep-speaker-firm">Skadden, Arps, Slate, Meagher & Flom LLP</em>
- Global Developments regarding AML and their consequences for US Firms
• Implementation of EU Third AML Directive, developments in other jurisdictions
» Application of AML requirements to broader range of entities than in the U.S.
» Requirements for timing of KYC
» Identification requirements for ultimate beneficial owners
• Challenges for Global Organizations
» What standards should apply to the enterprise?
» Data Protection issues
» Compliance outsourcing and vendor management
• Enforcement Climate
<strong id="ep-name-of-speaker">Carmina Hughes, Executive Director,</strong>
<em id="ep-speaker-firm">Daylight Forensic & Advisory LLC</em>
- MSBs: Challenges in Light of Sigue
• What are the lessons learned from Sigue?
• Must all MSBs do everything mentioned in the Sigue Deferred Prosecution Agreement or should
they take a risk-based approach?
• Has the Sigue matter set new minimum standards for MSB BSA compliance?
• Does this set the bar higher for banks who hold accounts for MSBs and what can they do to
Who Should Attend:
- BSA/AML Officers
- Compliance Officers
- Bank Auditors
- Thrifts and Credit Unions
- Banking Lawyers & Consultants
- Financial Insitutions' Executives
Mr. Das recently joined the Department of Treasury's Office of Foreign Assets Control in September of 2007. Prior to joining OFAC, Mr. Das served as an Assistant General Counsel at FINRA. Previously, Mr. Das served as a Director of Compliance at Legg Mason, where he supervised the firm's asset management examination program. Before joining the firm, he was an attorney at the Federal Reserve Board, providing legal counsel regarding formal supervisory actions against covered financial institutions; in particular, he advised the Federal Reserve's Banking Supervision and Regulation Department on a number of matters involving interpretations of the anti-money laundering laws and regulations. Prior to the Federal Reserve, he served as a senior counsel in the Division of Investment Management at the Securities and Exchange Commission, which included positions in the rulemaking and disclosure review offices. Mr. Das began his professional career as an attorney in the Office of General Counsel at the Pension Benefit Guaranty Corporation, where he primarily focused on ERISA matters affecting the agency. He received a B.A. in History in 1990 from the University of Virginia, and a J.D. from Northeastern University School of Law in 1994.
Mr. Das recently joined the Department of Treasury's Office of Foreign Assets Control in September of 2007. Prior to joining …
After brief stints at First Illinois Bank and Harris Bank, Randall Pickett joined Accuity in 1988. For the last 10 years, Mr. Pickett has assisted some of the world’s largest financial institutions in designing OFAC and watch list screening compliance solutions. Currently Associate Director for Accuity’s Compliance Suite product line, Mr. Pickett leads product development for OFAC, AML and BSA solutions. He became a Certified Anti-MoneyLaundering Specialist (CAMS) in 2006.
After brief stints at First Illinois Bank and Harris Bank, Randall Pickett joined Accuity in 1988. For the last 10 …
Clay Stevenson is a Vice President in the Global Monetary & Financial Control Group of Merrill Lynch’s Office of General Counsel in New York. In this capacity he is responsible for the firm’s global economic sanctions compliance program. Prior to joining Merrill Lynch in May 2007, Clay served for more than eight years with the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), working first in the Compliance Division and later the Designation Investigations Division. While at OFAC, Clay served as the Chief of the Counterproliferation Section within the Designation Investigations Division where he led a team of investigators charged with targeting the assets of weapons of mass destruction proliferators and their support networks, particularly those involved in the weapons programs of North Korea and Iran. Clay received his BA in International Affairs from George Washington University and his MA from Johns Hopkins University’s School of Advanced International Studies.
Clay Stevenson is a Vice President in the Global Monetary & Financial Control Group of Merrill Lynch’s Office of General …
Sarah D. Green is a Branch Chief in the Office of Compliance Inspections and Examinations (OCIE) at the U.S. Securities and Exchange Commission. She leads the Commission’s AML examination program for broker-dealers, including designing examination procedures, developing examination modules, conducting training for SEC and self-regulatory organization (SRO) examiners and coordinating with the SROs on all aspects of AML examination and enforcement. She chairs the SEC’s AML Working Group, and oversees AML examination issues arising in the SEC’s eleven regional and headquarters offices and in its Suspicious Activity Report Review Team. Ms. Green also serves as the primary AML liaison between OCIE and other relevant offices of the Commission, including the Divisions of Trading and Markets and Enforcement. She also serves as the primary liaison between the SEC examination program and both the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) within the U.S. Department of the Treasury.
She has represented the SEC on subcommittees of the Bank Secrecy Act Advisory Group and the Data Management Council. She is a frequent speaker on AML, and has provided technical assistance for domestic and international audiences. Prior to joining the Commission, Sarah was an associate in the Corporate and Securities practice group at Gardner Carton & Douglas LLP, where she specialized in corporate governance, private securities offerings, counseling public reporting companies and tax-exempt bond offerings. Sarah received her J.D. from the William and Mary School of Law and her B.A. from Hamilton College.
Sarah D. Green is a Branch Chief in the Office of Compliance Inspections and Examinations (OCIE) at the U.S. Securities …
Barbara Keller is currently an assistant director with GAO’s Financial Markets and Community Investment team. In this position she manages a number of assignments on financial market issues mostly dealing with anti-money laundering and international issues. She recently completed a review of the Currency Transaction Reporting system and is leading ongoing reviews of FinCEN and suspicious activity reporting, the effectiveness of BSA compliance and enforcement efforts, and competitive implications of the Basel II capital accord. In recent years, she led reviews of Bank Secrecy Act examinations and enforcement, international remittances, PATRIOT Act implementation, the vulnerability of the credit card and Internet gambling industries to money laundering, and implementation of the National Money Laundering Strategy. Barbara is also the GAO staff liaison to an anti-money laundering and anti-corruption task force for international audit organizations. Before moving into the financial markets area, Barbara spent 7 years working on international trade and competitiveness issues at GAO. She also spent 2 years in GAO’s former European Office in Frankfurt, Germany, where she worked on assignments in Europe and Africa. Barbara completed her CAMS certification in June 2006. She holds a B.S. in Languages from Georgetown University and an M.A in Public Administration from the University of Virginia.
Barbara Keller is currently an assistant director with GAO’s Financial Markets and Community Investment team. In this position she manages …
John F. Walsh is the CEO Of SightSpan Inc, and has almost 25 years of international business and technology experience in both the Securities and Banking industry. Prior to joining SightSpan, John was the Data Czar at Wachovia Investment bank and formerly was the SVP of AML Technology where he lead the banks global strategy. John has led divisions and companies engaged in high risk trading in commodities, foreign exchange and international fixed income products, as both a trader and senior level executive. He has worked in the United States and in several high-risk emerging market countries, during which time he gained valuable experience addressing global risk and international compliance issues. John assists Actimize with their Anti-Money Laundering solution strategy and provides strategic consulting to the company's clients.
John F. Walsh is the CEO Of SightSpan Inc, and has almost 25 years of international business and technology experience …
Jamie L. Boucher is a partner in Skadden’s Financial Institutions Regulatory Group with a principal focus on financial institution mergers and acquisitions, regulatory and enforcement matters. Ms. Boucher represents U.S. and non-U.S. banks, thrifts, insurance, securities and investment companies. She was selected for inclusion in Chambers USA: America’s Leading Lawyers for Business 2008.
Ms. Boucher regularly represents financial institutions on compliance and enforcement matters, examinations and voluntary disclosures involving federal and state regulatory and enforcement agencies with respect to the bank regulatory laws. With extensive experience in the Bank Secrecy Act (BSA), as amended by the USA Patriot Act, and the economic sanctions laws administered by the U.S. Department of Treasury’s Office of Foreign Asset Controls (OFAC), Ms. Boucher has counseled domestic and foreign financial institutions on numerous issues arisingunder BSA, OFAC and related laws. She has worked extensively with clients to design and implement internal compliance programs, conduct internal investigations, train company personnel, and monitor and improve corporate compliance posture. Ms. Boucher is a frequent speaker at seminars on financial institution compliance and regulatory issues, mergers and acquisitions and enforcement matters.
Before joining the firm, Ms. Boucher worked for 12 years in government and the private sector on matters involving international trade and investment regulation. She served as the legislative adviser for international trade and foreign policy to former U.S. Sen. Frank H. Murkowski; as an adviser to the American League for Exports and Security Assistance on trade and national security issues; and as a committee staff member on the U.S. Trade Representative-Department of Defense trade policy advisory committee, the Defense Policy Advisory Committee on Trade. Ms. Boucher currently serves as the chair of the American Bar Association Banking Law Committee, Subcommittee on Mergers and Acquisitions. She is a member of the American Council of Young Political Leaders.
Jamie L. Boucher is a partner in Skadden’s Financial Institutions Regulatory Group with a principal focus on financial institution mergers …
Carmina Hughes is an executive director with Daylight in its Washington office. She is an attorney with 27 years of investigation and litigation experience in the financial services industry and law enforcement.
Before joining Daylight Forensic, Carmina worked as a principal specializing in anti-money laundering compliance and investigatory engagements with the forensic practice at a "Big Four" accounting firm. Prior to joining the private sector, she served as special counsel for enforcement and special investigations at the U.S. Federal Reserve System’s Board of Governors. At the Federal Reserve, Carmina was responsible for conducting money laundering and fraud investigations, bringing enforcement actions against banks and individuals, shaping domestic and international anti-money laundering policy, and implementing the USA PATRIOT Act and Bank Secrecy Act.
Carmina also spent 16 years as an assistant United States attorney for the District of Maryland, where she was responsible for the investigation and prosecution of all types of federal crimes including white collar fraud, tax fraud, securities fraud, money laundering and violent crimes. She held various supervisory posts in the office such as chief of general crimes, chief of priority crimes and deputy chief of the criminal division. Before that, Carmina was an assistant attorney general for the state of Maryland, handling criminal appeals and representing state officials in correctional litigation matters.
She has a bachelor's degree from Bethany College and earned her law degree from the University of Maryland.
Carmina Hughes is an executive director with Daylight in its Washington office. She is an attorney with 27 years of …
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Department of the Treasury
Merrill Lynch & Co., Inc.
U.S. Securities and Exchange Commission
U.S. Government Accountability Office (U.S. GAO)
About Department of the Treasury
About Merrill Lynch & Co., Inc.
About U.S. Securities and Exchange Commission
About U.S. Government Accountability Office (U.S. GAO)
About Skadden, Arps, Slate, Meagher & Flom LLP
About Daylight Forensic & Advisory LLC